The paper "Market Segmentation, Positioning and Strategies" is a good example of marketing coursework. Catering is one of the successful and rewarding home-based business opportunity. It has high chances of growing and expanding compared to other types of a home-based business venture. The reason for choosing home catering services is the increasing demand for services. In addition, minimal investment is required for the business. The business will provide various services like decorations, providing drinks and cutlery. In addition, the business will be involved in event planning, preparation of the event location and serving the guests.
The business will be more imaginative and true to the function, occasion, or event contracts in their possession to satisfy, the customer needs. Basically, a viable business should meet its financial and operational responsibility to be able to support itself. A number of factors would influence the viability of home catering business as indicated below: first, the investment cost, which is a crucial factor in determining the viability of the home catering business. It comprises of financing funds and development cost. In the development cost, it consists of kitchen and equipment preparations that will be used in the business.
The business requires equipment such as utensils, packing boxes, and cookers to deliver the services. In the financing funds, if the business would secure a loan, the interest rate charged can affect the viability of the business. Because during coarse economic situation the interest rates charged are always high. Before starting the business market analysis was conducted to examine the viability of the business. The market would contain two types of customers, the high-income customers and low-income customers. Since the business is new in the catering industry low-income customers would offer the best opportunity as they care much about the price rather than experience.
However, high operation costs would influence the business ability to meet its financial target. The cost of running home catering is low; hence, an individual with minimal investment can penetrate to the market easily. Undoubtedly, the customers are a crucial determinant of the business viability. High demand in the services provided will drive the business to success. At high demand, the business will grow faster, unlike low demand where expenses become more than revenue. 2.0 How we would create value for the consumers and the organization 2.1 Market segmentation To create value for the consumers and the organization we will do market segmentation since different customers have different needs.
Therefore, it will be impossible to satisfy all consumers by treating them alike. According to Chen and Mujtaba (2007), market segmentation involves the recognition of market parts, which are distinctive from one another. In this regard, Daniels (1996) noted that segmentation allows the organization to satisfy a potential customer’ s needs competently.
Yeheskel, Newburry, and Zeira (2004) argued that the primary objective of segmentation should be to win and maintain the customers in, which the firm wants to serve. Nevertheless, customers segment themselves bearing no clue on how firms fragment their markets. Most customers as observed by Yeheskel, Newburry, and Zeira (2004), when selecting between competing products, they prefer selecting products that satisfy their needs excellently than any other. Therefore, to win market share Hunt and Arnett (2004), recommended that companies should ensure that their products meet the needs of the customers.
Basically, the market can be too big for a company to satisfy the needs of the customers. Therefore, Tsai (2009), recommended that a company should breakdown the whole demand into segments; thereafter choose segments that the firm is best furnished to handle. In this regard, the market will be divided based on age, race, religion, class and culture.
Chen, L. Y., & Mujtaba, B. (2007). The Choice of Entry Mode Strategies and Decisions for International Market Expansion. Journal of American Academy of Business, Cambridge, 10(2), 322-337.
Hunt, S. D., & Arnett, D. B. (2004). Market Segmentation Strategy, Competitive Advantage, and Public Policy: Grounding Segmentation Strategy in Resource-Advantage Theory. Australasian Marketing Journa, 12(1), 7-25.
Tsai, J. (2009). Marketing and Social Media: Everyone's social (already). Customer Relationship Management, 13(6), 34-38.
Yeheskel, O., Newburry, W., & Zeira, Y. (2004). Significant differences in the pre- and post-incorporation stages of equity international joint ventures (IJVs) and international acquisitions (IAs), and their impacts on effectiveness. International Business Review, 13(5), 613-636.