Lunch At Tim's

The company must choose a target segment that will allow the company to prosper in the competitive market. Since the company is directing its efforts into creating a potential product based on the concept of socialization, the consumers decisions are primarily based on their psychographic behaviours. Therefore, the alternatives that are listed above focus on the three prevalent segments of London in regards to their demographics, lifestyles and attitudes.

After analyzing the alternatives with the profitability criteria, it was evident that the “Lunch at Tim’s” segment showed a substantial market size, a medium income level, and behaviours that consolidate the company’s vision. This populous market indicates that there is a large enough group of consumers who will actually purchase the product, ultimately increasing the volume of sales and
The low income level suggests that these customers are forced to consume less and are frugal with their money.6 This decrease in expenditures will lead to a major decline in the business’s earnings as customers become disinterested in the entertainment industry. Since these consumers have the most economically challenging lifestyles, they tend to participate in low-cost outdoor activities. 6 However, the business is rooted in the concept of indoor leisure activities and thus does not coincide with their culture. If the business pursues this segment, it will lead to failure as their lifestyles are unprofitable for the company. Similarly, the “Satellite Burbs” behaviours do not completely correspond to the business’s values. Although this segment shows a considerable amount of income, they may be more difficult to serve as a result of their wealthy lifestyles. In addition, their small market size is less likely to be able to support a high volume of