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Segmentation and Target Market

Market segmentation is identifying the smaller market within the larger market in order to focus market strategies on the appropriate customer base for a business. Since a business cannot target every individual in a market it is important to breakdown the larger market into segments that would be best suited for the product or the service. At Chucky E. Cheese the market has been broken down to clearly identify the target market which in this case is families with younger aged children. Chucky E. Cheese was created as a place for family fun and entertainment. In order to ensure the right segment of the market is alerted to the presence of this establishment the marketing plan must target the right audience.

In order for Chucky E. Cheese to be a success the company must first identify the correct section of the market, understand the size of the market, make the targeted market accessible through promotion efforts, and assess the appropriateness of the policies and resources of the company (Moyaras, 2007). Chucky E. Cheese has been a success in part due to their ability to properly identify their target market and then create marketing strategies that target the parent by first attracting the child. While parents take the child to Chucky E. Cheese targeting the child as well as the parent has resulted in a larger customer base. For example if a parent asks their child “where would you like to go this weekend”, targeting the child gets the response, “Chucky E. Cheese”.

Target Market

Chuck E. Cheese operates kid-friendly themed restaurants catering to families with children between 2-9 years old (Mayoras, 2007). Understanding the age group requires the deployment of a demographic market segmentation strategy. Older children are less interested in going to an establishment where the games and entertainment is geared for a younger age group. Teenagers would not be an appropriate market for this business because the entertainment includes tunnels, video games for younger children, big furry, robotic characters, and prizes suited for children under the age of ten. While older children may enjoy this setting the goal is to attract a younger child age group.

Market Segmentation

Demographic market segmentation is a common approach to segmenting the market. With this strategy, a company simply divides the larger market into groups based on several defined traits (Kokemuller, 2014). Applying a demographic segmentation strategy includes determining what ways will most effectively identify the market this company wants to target. To establish this target market was a part of the business model of Chucky E. Cheese making this marketing approach essential to their success. The demographic segmentation strategy applied was developing research on games and attractions children ages 2-9 would be most attracted to.

One major attraction for this age group is tunnels and play areas where children can climb. In order attract the target market; Chuck E. Cheese created an elaborate tunnel and play area in their locations. The location of Chucky E. Cheese was also an important consideration of the company. While the company understood their target market it was also important to identify the best geographic segmentation strategies. Geographic segmentation is the division of the market according to different geographical units like continents, countries, regions, counties or neighborhoods (Kokemuller, 2014).

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