Market For Toscani's In Parramarra Term Paper

Length: 5 pages Sources: 14 Subject: Business - Advertising Type: Term Paper Paper: #4606065 Related Topics: Target Market, Market Entry Strategy, Italian, Sports Marketing
Excerpt from Term Paper :

The segmentation recommended in this marketing plan includes the following:

Ensure that locals (there is an advantage to the restaurant's site) become regulars.

Differentiate the "Italian" notion for those who want something different from "standard," "middle of the road" Italian fare.

Come up with very targeted marketing which ensures focus on the three target customer groups:

Those living/working within a well-defined radius

Those who may know the restaurant from other experiences in Australia

Spur-of-the-moment tourists who see the restaurant and walk in.

Cost structure of industry (especially whether variable cost is a small or large proportion of the normal selling price, and whether there are significant economies of scale of production, importance of transportation costs etc.),

The relative margins earned by restaurants vary from zero to 10% of total sales. Price discounts may be attractive to customers, but can have a dramatic impact on the bottom line if not properly managed. These discounts are also so prevalent (easy to implement), that they offer little differentiation for the prospective customer.

Things that are relatively inexpensive to the restaurant may be highly-valued by the customer. It is important, therefore, to emphasize free additional food, particularly during slack hours, or when attempting to convert customers from occasional to frequent visitors.

Role of tariffs subsidies, dumping, grey markets etc.

Target Market Behaviour, including:

Market segmentation (ie. how the market might be meaningfully segmented by buyer characteristics as a proxy for buyer needs),

Market segmentation is as follows:

Families living in the area, especially focused on those who bring their spouse and children.

Customers from other parts of Australia who may already be familiar with the one of the other 15 restaurants, and Tourists and "spur-of-the-moment" impulse customers who see the restaurant and walk in.

Potential target market segment(s) for the product/service (and whether a separate marketing mix is needed for each market segment),

Of the three major segments, the most profitable for the restaurant may be the first -- locals, particularly families, who live and/or work in the Parramatta area. That is because a family which eats once a week at the restaurant, spending on average $50 per time, will spend $2,500 in a year. This makes these families...


Although they visit relatively infrequently, the cost of acquisition for these customers is very low.

The third most-profitable segment is the walk-in, impulse customer. It is unlikely that this customer will come from far away to this restaurant, but the customer's impulse decision (based on what he/she sees and the time of day) means that customer acquisitions are inexpensive.

Those segments that should be ignored include the following:

Very price-sensitive customers who either eat a lot or are looking for a bargain.

Customers who don't know about family-style, regional Italian food, and are unwilling to travel or pay for the difference.

Young, transient, single people.

Those who live in Sydney and the surrounding area in a radius greater than 5 miles from the centre of Parramatta.

The market can be therefore segmented as follows:

Local regulars


Those who know the chain

Times per year per cheque year/customer

Percentage of total

Number per year

Revenue/Customer segment

300,000 (average)


7.1 Target Markets

It is suggested that Toscanis' market can be segmented into four target populations:

Locals with families

As we can see from the above analysis, Parramatta's emerging "yuppies" with families can be a very lucrative group for Toscani's. With 152,000 residents in Parramatta, one can assume that there are 50,000 households. If half those households have children, then the total target market is 25,000 households with an assumed four people per household (2 children and 2 the spouses). If Toscani's is successful in recruiting 200 families to eat once a week, it only needs find 200/25,000, or 0,8% of the target available market.

If Toscani's were able to double the attraction to those regularly-eating families, it could nearly double overall sales. In addition, the families are likely to eat earlier, which helps with table turns.

Those from other parts of Australia who know Toscani's

This category is "pre-sold," meaning that they already know and like the brand. By letting them know through other branches that they are there, Toscani's can attract

Cite this Document:

"Market For Toscani's In Parramarra" (2007, October 25) Retrieved July 31, 2021, from

"Market For Toscani's In Parramarra" 25 October 2007. Web.31 July. 2021. <>

"Market For Toscani's In Parramarra", 25 October 2007, Accessed.31 July. 2021,

Related Documents
Market Segmentation Is a Way
Words: 1039 Length: 4 Pages Topic: Business Paper #: 70879937

DESIGN The customer experience coalesces here; all segments merge together in synthesis. Models move from the rote to the analytical, from the passive to the active, and from the manufacture driven to the service driven. To ensure long-term compatibility, perform continual needs analysis, understanding that consumer dynamics (demographics and psychographics) continually evolve. Conclusions -- Modern society is complex, and thus the types of choices consumers make on a minute by minute basis are

Market Segmentation and Product Positioning:
Words: 1207 Length: 4 Pages Topic: Business - Miscellaneous Paper #: 28872749

Conduct a SWOT (strengths, weakness, opportunities and treats) analysis for the company; Strengths In the current economy, the economic downturn has hurt the horse industry. "With the loss of jobs, additional money that people used to care for their horses has gone down...You have to feed your family before you feed your horses" (Powers 2009). The availability of second-hand goods will be helpful to address this issue. On the other hand, one

Market Segmentation IPhone and Blackberry Market Segmentation
Words: 1454 Length: 5 Pages Topic: Business - Advertising Paper #: 58100759

Market segmentation iPhone and blackberry market segmentation According to the Business Directory (2012), market segmentation is the process of defining and subdividing a vast market that is mostly homogeneous into segments that possess similarities in needs, demands, wants as well as characteristics. It is actually the opposite of a general market mix since it narrows the market mix to the specific targets. The purpose of the segmentation is to help match

Market Segmentation Product Positioning Impact on Consumer
Words: 2352 Length: 9 Pages Topic: Business - Advertising Paper #: 26127348

Market Segmentation Product Positioning Impact on consumer Consumer Decision Process Marketing Mix In this paper, we present a marketing plan for My Wonderland, a specialty smoke shop based in Lancaster City, CA and which also operates as a gift shop. The marketing plan includes a detailed analysis of the company, its clients as well as the possible expansion/success strategies. The aim of the marketing plan is to make the business appealing to potential franchisees since

Market Segmentation How Does Your
Words: 657 Length: 2 Pages Topic: Healthcare Paper #: 57669775

2. What is your organization's target market(s)? The target markets are children up to 12 years of age, general practitioner or family practice, geriatrics and a specialty area of orthopedics given how many sports teams are in the area. Our clinic focuses on urgent care for orthopedic injuries as these are often time-sensitive in terms of the treatment needed. Our focus on measuring wait times and response times has aided our

Market Segmentation Is Often Defined As "Grouping
Words: 609 Length: 2 Pages Topic: Business - Advertising Paper #: 13301389

Market segmentation is often defined as "grouping people according to their similarity related to a particular product category" (Richardson). The most commonly used forms of segmentation are geographic, demographic, psychographic and benefit; demographic and geographic segmentation are descriptive while psychographic and benefit segmentation are behavioral. In order to determine the appropriate market for a particular product, you must be first be able to identity what sort of product you will