BUS313 – Introduction to Entrepreneurship
Finding the target market for the new business is probably the most important step when planning a new business. Without identifying the target market, it’s nearly impossible to direct your focus to sufficiently appeal to the ideal segment of the population. The best way to begin the process is to identify the most significant section first, once that segment has been established it becomes easier to direct the focus to different demographics of the more substantial portion. (Cohn, 2015)
Primary Target Market
The primary target market for a bistro type restaurant would be people between the ages of 28 to 60 years old and either single or married without children or having older children would be our ideal target market. The reasons for this target market are:
Secondary Target Market
- Teenagers and people in their lower twenties are less likely to enjoy the upscale, relaxed atmosphere of the bistro environment.
- Single people or married people with no children or older children are more likely to eat out more often and not be in such a hurry to get home to maintain children’s schedules.
- The ideal age range does not segment by gender, people of either gender like to go out and enjoy a relaxing, upscale, and grown-up dining experience without the need for televisions and other distractions like sports bars offer.
The secondary target market for a bistro type restaurant would be people with an average to high income with education experience including some college. This portion of the age group mentioned above is ideal because:
Below are a couple of charts detailing the most common demographics in Ashland, Virginia. These demographics do not inclue surrounding areas. (Ashland, 2016)
- While the menu prices planned for Lomati’S is not overly expensive, the rates are higher than the average fast food or typical restaurant chain prices so an average to high income would allow a higher level of discretionary funds accommodate the slightly higher menu prices.
- The higher the education level usually indicates a higher than average income level so this demographic would allow for more financial flexibility.
- A higher education level generally leads to occupations that pay higher salaries than minimum wage type employment. Higher wages offer more opportunities to go out and spend money.