Customer Segmentation Challenges and Solutions: Barshala Bar Chain

This report delves into the customer segmentation challenges encountered by the Barshala Bar Chain, a restaurant business operating in Delhi. The primary issue revolves around the difficulty in effectively segmenting the market to provide actionable insights for marketing efforts. Currently, Barshala primarily targets a middle-aged customer base but aims to broaden its reach. The research aims to identify effective solutions for these segmentation issues to enhance profitability. The report explores relevant literature, including articles by Morgan and Rao (2000) and Susskind and Chan (2000), to understand the importance of change management, demographic considerations, and clientage distribution in the restaurant business. The study also incorporates insights from Ryu and Lee (2017) on relationship development and Lewnes and Keller (2019) on marketing funnel principles. The report concludes by emphasizing the need for a self-evaluation process based on sales data to create a more effective segmentation process, as suggested by Schjøll and Alfnes (2017). The research seeks to provide practical recommendations for Barshala to improve its marketing strategies and customer reach.

Running head: INDOSPIRIT GROUP BARSHALA BAR CHAIN
INDOSPIRIT GROUP BARSHALA BAR CHAIN
Name of the Student
Name of the University
Author Note

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Report title Customer segmentation issues in the Barshala Bar Chain
Industry partner The industry partners are various beverage organizations. These organizations
mostly provide the supply of beverages and liquor that are served in the
Barshala bar chain. The industry the partners operate in is the liquor industry
and also the beverage industry. The organizations supply the liquors that are
served at the restaurant chains.
Research field The field of research for the study is marketing. The challenges connected with
the marketing functions of the organization are to be discussed.
Overarching
problem
The overarching problem that is the focus of the study is the challenges of
market segmentation for Barshala. The restaurant serves many people of
different ages and demographics. However, the main issue is that market
segmentation is a problem as the market cannot be easily divided. As of now the
segmentations are unable to provide actionable details. Hence, the marketing
teams are being unable to optimize the product offerings in accordance of the
segmented demands. As of now Barshala focuses on the middle aged customer
base. However, much larger customer base need to be reached.
Overarching
research aim
The aim of the research is to find effective solutions for the market
segmentation issues that are being faced by Barshala to improve their
profitability prospects.
Research
questions(s)
 What are the most effective customer segmentations that can be made
concerning the marketing functions of the Barshala?
 How can these market segmentations lead to increased customer reach
and profitability for the bar chai?
Literature review:
Keywords used for
Restaurant business, bar chain, customer segmentation, product placement

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literature search strategy, marketing challenges
Literature review:
Name 2 relevant
articles
According to Morgan and Rao (2000) restaurants concepts witness steady
decline over a period of time. Hence, essential foresight is required to
partake in necessary change management from time to time. This is a
significant aspect that need to be considered by Barshala. According to
Susskind and Chan (2000) a restaurant has to consider a large number of
factors concerning the demographic area of their locations. Market
segmentation is necessary to understand the diverse needs of the customer
and optimize the product offerings accordingly. The second most
important factor is the distribution of clientage. This means that the
company needs to identify the exact areas where the clientage is located.
The third most important aspect is less paying capacity. In accordance
with the same Barshala would have to keep intact their lower pricing
value. These aspects would actually be systematic in their nature with
each contributing to wards the effectiveness of the other. As opined by
Ryu and Lee (2017) there are three dimensions that are needed to be
considered for the development of relationships. These are confidence,
social benefits and special treatment. Segmentation challenges can be met
through the effective implementation of customer analysis. The funnel
principles of marketing can be used in this case. This involves effective
awareness, opinion, consideration, preference and purchase in a
systematic flow (Lewnes and Keller 2019). One important need is to
identify the changing preferences of the customer and apply the funnel

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concept to create a better segmentation process for the organization (Scott
et al. 2017). It becomes important that organizations create a self-
evaluation process. This brings forward the need to work in accordance of
the needs that can be identified from the sales data of the given
organization. According to Schjøll and Alfnes (2017) it was found that the
consumers were unmoved by the restaurant menus. Meaning that the
segmentation process need to take place from the point of view of the
restaurant environment.

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References
Lewnes, A. and Keller, K.L., 2019. 10 Principles of Modern Marketing. MIT Sloan Management
Review, 60(3), pp.1-10.
Morgan, I. and Rao, J., 2000. How restaurant owners manage strategic risk. The Cornell Hotel
and Restaurant Administration Quarterly, 41(6), pp.64-74.
Ryu, K. and Lee, J.S., 2017. Examination of restaurant quality, relationship benefits, and
customer reciprocity from the perspective of relationship marketing investments. Journal of
Hospitality & Tourism Research, 41(1), pp.66-92.
Schjøll, A. and Alfnes, F., 2017. Eliciting consumer preferences for credence attributes in a fine-
dining restaurant. British Food Journal, 119(3), pp.575-586.
Susskind, A.M. and Chan, E.K., 2000. How Restaurant Features Affect Check Aberages: A
Study of the Toronto Retaurant Market. Cornell Hotel and Restaurant Administration
Quarterly, 41(6), pp.56-63.
Scott, P., Scott, T., Stokes, P., Moore, N., Smith, S., Rowland, C. and Ward, T., 2017. The
consumer journey in the digital age: the challenges faced by destination and place marketing
agencies.