Zara case study

Good Essays
Darden Restaurants
Question 1:
Theory
Segmentation variables: Market segmentation variables are used to divide a market into smaller units or segments. The marketer uses these variables to develop a target market for their products or services.
Geographic: Dividing a market into different geographical units, such as nations, regions, states, counties, cities, neighborhoods, population density (urban, suburban, rural), climate
Demographic: Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation
Psychographic: Dividing a market into different segments based on social class, lifestyle, or personality characteristics.
Behavioral: Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product.
Case study
Geographic: This was demonstrated by Darden in the Longhorn chain. Longhorn restaurants are currently only in the eastern half of the US. This is an opportunity for expansion.
Demographic: demographic segmentation is represented by Red Lobster’s attempt to fill the gap between fast-food seafood and upscale white-tablecloth restaurants. This shows that Darden is trying to please customers who have different incomes.
Psychographic: Is represented by Olive Garden’s plan to build a dining experience around the concept of a mythical Italian family. Darden is trying to make the customers feel like they are dining out however give them the feeling that they are in a homey environment.
Behavioral: Darden along with all the sit-down restaurants are noticing a change in frequency of customers who are eating out. This is due to the economic recession.
Recommendation
We recommend that Darden stops expanding their chain of restaurants until the economic situation in the US has been stabilized. They also have to be careful with developing new menu’s of higher price quality because they might lose their loyal customers who

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