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For an assignment, I need to open a new Applebee's (The restaurant) in Toronto,...

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lkballer24 | Student, Grade 11 | (Level 1) Valedictorian

Posted December 4, 2013 at 9:35 PM via web

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For an assignment, I need to open a new Applebee's (The restaurant) in Toronto, Canada.

What would be the Target Market for this Applebee's?

Include:  

- Developed detailed customer profile for your target customer.

- Describe two target markets, primary and secondary, in terms of demographic, psychographic, geographic and behavior response segmentation variables. 

- Explain why you have selected these target markets and justify your choice for each characteristic. Your Target market choices need to relate back to the most likely customers for the restaurant. Also your Target market needs to live within easy traveling distance of the restaurant, so be sure that who you describe also live in the area.

- Concentrate more on the rationale of the plan and focus less on the strategies and tactics (so you will focus on the why and the who, rather than the what and the how).

1 Answer | Add Yours

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted December 6, 2013 at 1:11 AM (Answer #1)

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Any business needs to identify its target market.  It needs to segment the market in general and determine which segments of that market are most likely to become its customers. 

As you imply in this question, a business will generally want to segment the market on the basis of demography, geography, psychographics, and behavior.  Let us look at the primary and secondary target markets for Applebee’s in terms of these segmentation variables.

In terms of geography, the primary market for this Applebee’s will depend on what type of area you intend to place it in.  If the restaurant is going to be in a largely residential area (say, in a strip mall near a residential area), the primary market will be people from that area.  A secondary market, in geographic terms, will be people who drive past that particular strip mall on the way home from work or on the way to or from other activities.  If, by contrast, the restaurant is to be in a business district, its primary market will be workers eating lunch or perhaps eating dinner after work.  A secondary market would be people who spend time in the area as consumers.  These would be people going to music clubs or tourist attractions.

Demographically, Applebee’s is a family restaurant.  This means that its main target market will be people who are at the right age to have families.  This might place the target market in the 35 to 55 age range.  Economically, these people will be relatively well-off, in the higher parts of the middle class.  They will not be lower income because those people would be more likely to go to places like Denny’s, but they will not be wealthy because Applebee’s is not a “sophisticated” restaurant.  A secondary target market will be younger singles.  This group might be in the 25 to 34 age group.  This group is more likely to patronize the bar in groups or as singles.

Psychographically, the primary market is likely to be those who see themselves as casual, fairly “regular” people.  They will not see themselves as trendy or as sophisticated.  Instead, they will identify themselves as people who want something that is nice, but not fancy.

In terms of behavior, the primary market will be people who eat out on a regular basis.  These will be people who want a decent meal in a casual atmosphere.  They will generally not be people who are out for a major occasion.  A secondary market would be people who see Applebee’s as a potential place to socialize.  These would be the younger people who are more likely to be patronizing the bar.  

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