What market segmentation strategy should be focused to benefit HoL's future grow?
How can HOL use differentiate strategy to increase the brand awareness?
How can social media marketing be applied to maximize customers' engagement?
Market segmentation means dividing the marketing into smaller groups that have similar characteristics, so the
company can create a marketing plan to best meet the demand and expectation of customers in that group. There are
four strategies, including geographic, demographic, psychographic, and behavioral segmentation.
is based on locations and regions, like cities and countries...
As most of HOL branches are opened in
Philippines, people tend to have similar needs and interest. However, this strategy works when HOL looks for
opportunities in the rural areas in Philippines or other countries in the world.
Secondly, demographic segmentation
creates groups based on factors like age, occupation, income, religion, and more
. HOL can segment market by
generation: Millennials and others. Most millennials like to experience new things, try new flavors. Moreover,
Millennials is those making up of almost 35% of population in Phillipines and considered "the biggest spenders in the
food service industry."
targets social class, lifestyle and personal value
. Most customers
coming to HOL have one thing in similar, which is enjoying Italian cuisine. In this case, income can be used to segment
the market into low, middle, and high earnings groups. Middle and high class customers should be focused as they
spend more than 20 percent income on food.
Lastly, behavioral segmentation
focuses on how customers make
. During holiday or special occasion, a lot of people go to restaurants to celebrate, not only to enjoy delicious
food but also enjoy the great ambiance. Therefore, HOL should guarantee the best experience customers have to
convince them come back next time.
Differentiate strategy includes recognizing the competitive advantages, using them to build a strong brand image in
customer's mind and increase brand awareness. There are 5 ways that a company can stand out from other
competitors. The first one is by
. HOL can offer the low carb or no carb lasagna to customers who
enjoy good food but follow a diet or can't consume lots of carb. Secondly, a company can be distinguishable by the
. Service advantages that a restaurant can create are excellent dining experience for customers and a delivery
system that is not only fast but also accurate
is also considered as a way to differentiate. More branches will be
opened in the area with lots of commercial building or near college, university. Competitive advantage can also be gain
differentiation. A brand image is reflected in the name, logo, motto...HOL's logo with the symbol of a window
creates a warm, welcoming feeling just like a family. To better approach Millennials and increase brand awareness, HOL
should follow a more modern and youthful image. The last strategy is
differentiation. It is about the way a
company trains their employees and values them.
Direct and digital marketing is a tool of promotion mix that a company can use to connect and engage with people.
There are two main types of direct and digital marketing including traditional direct forms (catalogue, direct mail,
telemarketing...), and digital and social media marketing ( social media, websites, emails...). Within many tools of digital
marketing, social media is considered one of the most effective ways to interact and build relationship with customers.
In this case, HOL needs to focus on social media, espescially Facebook because "the Phillippines was the world leader in
social media usage" with "about three hours and 57 minutes per day on social media, mainly on Facebook." HOL can
utilize the "big-seed" marketing concept on social media, which means geting people to talk and share a content, by
posts like 100-layer lasagna eating challenge in 10 minutes or a video about how to make lasagna-inspired desserts.
Demographic segmentation and psychographic segmentation, especially Millinniels, middle class and high class
customers, should be focused to benefit future grow.
Use product and image strategy as main tools to differentiate from other competitors. A good brand image creates a
strong bond with buyers and form loyalty.
Use social media sites to better interact, engage with targeted customers. By social media, HOL could also "listen" to
customers' demands. By viral video or post on Facebook, HOL can promote the brand among thousands of people
within a short period of time.