3.4 Target Market Analysis
As part of the analysis, we are segmenting the market based on demographics and psychographics. Demographic segmentation is based on financial and educational parameters. Psychographic segmentation is based on lifestyle and values. There were several factors to consider in developing a target market or markets for Goldilocks Restaurant (Goldilocks). Some of these factors were: The tastes and habits of prospective customers. That is, are the potential customers oriented toward a healthy lifestyle and healthy eating in particular? The financial and educational demographics of prospective customers The concentration of these prospective customers in large enough numbers in a given geographic area so that they could provide a critical mass of prospective customers for Goldilocks’ unique cuisine Although the owners of Goldilocks do not believe that education, in and of itself, should be a requirement for the target market, statistical studies have established that there is a positive correlation between educational levels and income. Furthermore, there is a positive correlation between average education levels and a greater interest in more healthful, natural, and/or organic foods. We anticipate that there will be a demand for our cuisine from many who are educated and have a great interest in healthy eating, but who do not fit into the higher income category. This demographic may come to Goldilocks once in a while but because they lack the means and the same level of discretionary income as those with higher incomes, they will not become our core customers but will become part of our secondary target market. The primary factor that comes into play here is that those with both education and higher incomes not only are more knowledgeable and more motivated with regard to healthy lifestyles, but also have the financial means. This demographic would become our core of patrons, our primary...
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