C-RESMT Module 4 Restaurant Strategic Blueprint

Restaurant Strategic Blueprint

• target market segmentation

• blue vs red ocean strategy

• robust value proposition

• develop and audit brand identity

Market segmentation

is the process of grouping or dividing an audience into subgroups based on commonalities and shared characteristics. These characteristics can range from things such as a user’s age, location or income to their needs, wants, behaviours and values. This results in valuable subgroups consisting of existing and prospective customers for your brand. 

4 main types of market segmentation:

• Demographic 

• Geographic

• Psychographic

• Behavioral

Demographic Segmentation

organises a market based on their most basic elements: their demographic information. It is one of the simplest and most commonly used forms of segmentation. This can be put down to the fact that demographic data is one of the easiest for brands to collect and analyse in a short amount of time. 

• Age

• Gender 

• Income 

• Education 

• Occupation 

• Marital status

Geographic Segmentation

groups audiences based on, you guessed it, their geographic information.

• Location

• Urbanicity

• Climate

• Culture

• Language

Psychographic Segmentation

discover who your audience really are, branches from aspects of psychology, which centralises on things like personality traits, perceived values, interests, lifestyles, and motivations.

Behavioral Segmentation

entails dividing and grouping an audience [or audiences] based on how they act. This could range from in-app and website behaviour to actions made in-store. And the fuss is there because behavioural data has the potential to bring huge amounts of value to brands. 

Benefits of Market Segmentation

• Improves Business Focus

• Improves Product Development

• Optimises User Experience

• Helps Break into New Markets

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Creating Great Segments

1. Set Your Objective

2. Develop a Segmentation Strategy

3. Execute Go-To-Market Strategy

Unique Value Proposition

defines the kind of value a company will create for its customers. Finding a unique value proposition usually involves a new way of segmenting the market. Often, a novel value proposition expands the market. For example, until the iPad came along, customers didn’t realize they wanted tablets—but Apple effectively created a new demand.

1. What customers- what end users, what channels

2. Which needs- which products, features, services

3. Which price- premium, party, or discount

Red ocean markets

characterized by incremental innovation, head-to-head rivalry, diminishing profit margins, commoditization of offerings, and an increasing emphasis on cost-cutting or differentiation within established parameters—leading to what the theory metaphorically describes as “bl**dy water.”

Blue ocean markets

not discovered but constructed through strategic reconfiguration—either by pioneering entirely new industries (e.g., eBay’s creation of the online auction sector) or, more commonly, by reconstructing the boundaries of existing industries (e.g., Cirque du Soleil’s reinvention of the circus).

branding

a short overview that defines a company's identity, core values, target audience, and unique market position.