Segmentation and Evaluation of Market Segment for McDonald's Hamburger

Principles of Marketing

1
How segmentation is done
After a heavy market research this segmentation is done. While doing segmentation it is to be
ensured that no potential segments in the market is left untouched (Bhasin, 2018). In
Geographical segmentation, there are two criteria one is region and other is density (Yan,
2013). In region the target segment are international and local customers. In terms of density
the target segments are people from urban and Semi-urban areas. In terms of demographics
there are five criteria i.e. Age (people in the age group of 12-50 years), Gender (Men and
women both), Life cycle stage (Unmarried and Married), income (High, middle and lower
income), Occupation (people from all professions as well as students). In terms of behaviour
there are four criteria i.e. degree of loyalty (Hardcore and Switchers), Benefit Sought (Time
and cost benefit sought), Personality (caring and careless) as well as in terms of user status
(regular and potential).
Evaluation of the market segment
Evaluation of market segment is essential as it ensures that firm do not waste resources on the
people that will not buy the products of the company (Kincheloe, 2011). Evaluation of market
segment has to done on the basis of the qualities of the Hamburger and the abilities of the
company to sell it to customers that are actually looking for those qualities. Some of the
variables are:
 Market potential: This is done by checking which types of people are actually looking
for the qualities in the product (Talpau & Boscor, 2011). It also calculates how many
people have the capacity to pay the price of the product. Since the hamburgers are
available at the lower prices hence all the segments in the society are able to afford
the product.
 Sales Potential: Our Company expects that on an average one person will buy
hamburger once or twice a week. The higher class people are expected to purchase
this hamburger thrice a week.
 Competition: Total sales of the existing suppliers are going to remain on the lower
side hence it is expected that McDonalds will take business away from the
competitors. But in some markets sales of competitors are closer to market potential
hence it may result in fewer sales. This might call for heavy promotions to be done
(Lee & Lambert, 2017).