Secret Recipe’s Segmentation Variables

Read Summary

Market segmentation is the process of dividing a market into groups based on shared characteristics. There are three basic types of market segmentation, including geographic, demographic, and psychographic segmentation. Secret Recipe, a restaurant chain with over 100 outlets around the world including 10 in Penang, uses all three types of segmentation to target customers. Their geographic segmentation focuses on the region of the country, market size, and market density. Demographic segmentation divides customers based on age, gender, family size, income, occupation, education, race, religion, generation or nationality. Secret Recipe’s target customer market ranges from 15-year olds to 70-year olds with middle and high income levels. Psychographic segmentation considers customers’ lifestyle, personal characteristics, and preferences. Secret Recipe aims to create a middle-class and comfortable restaurant environment with a variety of food options to appeal to a broad range of customers.

Table of Content

Marketing segmentation is a process of dividing a market into a meaningful relatively similar and identifiable segment of groups. There are three basic market segmentation which are geographic segmentation, demographic segmentation and Physiographic segmentation. Geographic Variable Geographic segmentation is segment the market by region of the country, market size and market density. Secret Recipe opened all over the world such as Singapore, Indonesia, Thailand, Philippines, Brunei, Australia, China and Malaysia. There are over 100 outlets located all around the world.

For Penang it made up of 10 outlets and most of them located at Shopping Mall for example Queensbay Mall, Gurney Plaza and Jusco Seberang Prai. Demographic Variable In demographic, customers are segmented according to age, gender, family size, family life cycle, income, occupation, education, race, religion, generation or nationality, secret Recipe target customer market from range 15year-old to 70 year-old. The foods and beverages are suitable for all type of customer. Therefore, the middle and high income level, approximately RM 2000- RM3000 is the target customer of Secret Recipe.

Psychographic Variable In psychographic segmentation, Secret recipe has done a combination with other type of segmentation variables. On the view of lifestyle, individual nowadays prefer to have their meals in middle class restaurant. Therefore, Secret Recipe has made their restaurant’s environment to be a middle class and comfortable restaurant for those who don’t have a high salary pay will not refuse to enter their restaurant. From the view of personal characteristics, Secret Recipe also promoted variety of food but not only dessert, to fulfill everyone’s different needs.

Cite this page

Secret Recipe’s Segmentation Variables. (2016, Oct 20). Retrieved from

Remember! This essay was written by a student

You can get a custom paper by one of our expert writers

Order custom paper Without paying upfront