Market segmentation helps fast food brands understand the diverse needs of their customers. By dividing the market into smaller groups based on shared characteristics, brands can tailor their menus, services, and marketing strategies to better meet customer expectations.
This article explores three segmentation approaches for fast food: psychographic segmentation, which focuses on values and lifestyles; occasion-based segmentation, which examines the context of consumption; and benefit segmentation, which identifies the key advantages customers seek. These examples show how segmentation helps brands cater to different preferences and grow their customer base.
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Market Segmentation Example One for Fast Food
In this example of market segmentation for fast food benefit segmentation approach has been used. Generally there is a health perception that fast food is not always good for you and that it should be consumed in moderation. However, despite this perception, fast food outlets are quite popular and dominate a large share of the eat-out-of-home market.
Therefore, the purpose of this segmentation example is to look closely at the needs and motivations of the various consumers in the marketplace, primarily by considering the array of benefits that they are seeking with a fast food option. As a result, six market segments have been identified, as follows:
- Family treat
- I like it
- Nice and easy
- Pressed for time
- Real meal
- Meeting place
Family treat
The first market segment essentially looks at fast food as a “reward” for good behavior or as a special treat for the family. Obviously consumers in this market segment are making family decisions as a household unit – not as individual consumers.
In terms of it being a reward, it would not be uncommon for parents to say to their young children, “you be good today and we will go to McDonald’s (or wherever) later”. And in terms of a special treat, usually a fast food outlet is a more popular choice among family members of all ages, as opposed to a more formal restaurant.
Therefore, this market segment is typically looking for: a good choice of food options (for all ages), tasty and easy to eat food, comfortable and clean facilities, fast service, easy ordering and perhaps even a playground. Because they are buying for several people in their family at the one time, good value is also important to them.
Key Characteristics:
- Decisions are made as a household unit, not by individual consumers.
- Parents use fast food as a motivational reward for good behavior or to celebrate family moments.
- Value good food variety, comfortable facilities, fast service, and family-friendly environments, such as playgrounds.
Marketing Implications:
- Offer family meal bundles with discounted pricing to appeal to multi-person purchases.
- Highlight features like kids’ menus, indoor play areas, and clean, welcoming spaces.
- Use advertising that focuses on family enjoyment and togetherness.
I like it
This consumer segment will consume fast food primarily for the taste of it – that is, they simply enjoy it. They are more likely to be heavy users and most likely brand loyal to 2-3 different fast food chains.
As they are attracted by taste, consistency of product is important, as well as new flavor varieties of their preferred product choices. These consumers are also relatively impulsive and will be responsive to advertising, in-store displays, external signage and various sales promotions.
Key Characteristics:
- Likely to be heavy users and loyal to 2-3 preferred fast food chains.
- Attracted to consistent product quality and new flavor varieties.
- Responsive to advertising, in-store promotions, and impulse-based triggers like signage.
Marketing Implications:
- Introduce limited-time flavors or seasonal menu items to sustain interest.
- Emphasize taste and satisfaction in marketing campaigns.
- Use loyalty programs or discounts to reinforce repeat purchases.
Nice and easy
Another market segment views fast food as an easy option for food. These consumers are not necessarily lazy, but are not always in the mood to grocery shop and cook. They are consumers that don’t tend to pre-plan their weekly meals, so a fast food solution is attractive to them at times.
Clearly these consumers are seeking the benefit of convenience. As a result, this market segment will seek out local outlets (or chains with lots of outlets), chains with easy service options (such as a drive-through) and a fast ordering system.
They are not overly price sensitive as they see value in the convenience and the time saving. They would be less responsive to advertising focusing on the products.
Key Characteristics:
- Attracted to the convenience of fast food when they are not in the mood to cook.
- Value quick service, drive-through options, and proximity to home or work.
- Not overly price-sensitive, viewing time-saving as the main benefit.
Marketing Implications:
- Highlight convenience-focused features like mobile ordering, drive-throughs, and delivery options.
- Use localized marketing to emphasize nearby outlets.
- Create messaging that positions fast food as a stress-free alternative to cooking.
Pressed for time
This example market segment is quite time poor, either in general or at a particular point in time. Their preference is NOT to consume fast food, but it may be a necessity at times. For example, if they have worked back late, or they are on a holiday road trip, or they are having a particularly busy day in general. In simple terms, these consumers are attracted to the “fast” part of fast food.
This market segment would be light users of fast food and not overly responsive to sales promotions or advertising. They would also have limited brand loyalty as they will make their purchase decision based upon convenience factors only. Therefore, fast food chains with lots of outlets, drive-through options and fast service, will obtain the greatest share of this target market.
Key Characteristics:
- Decisions are driven by urgency, such as busy schedules or specific time constraints.
- Minimal brand loyalty; purchase decisions are based on proximity and speed of service.
- Rarely respond to promotions or advertising, as their consumption is situational.
Marketing Implications:
- Ensure prominent signage and visibility near high-traffic areas.
- Focus on speed and ease of ordering in advertising.
- Invest in multiple locations and drive-through services to capture this segment.
Real meal
This segment of consumers is seeking the convenience benefits of fast food, but they are looking for a relatively healthy food option as well. As consumers they would be lighter users of fast food and more willing to cook at home or take the time to eat at more formal restaurants.
Some consumers in this segment do not perceive that all fast food chains have a product solution that meets their needs of a higher quality menu item that is relatively healthy. But this is still an emerging segment with a number of fast food operators developing products for this segment.
Key Characteristics:
- Typically lighter users of fast food, preferring to cook or dine at formal restaurants.
- Attracted to menu items that offer balanced nutrition or fresh ingredients.
- Often skeptical of fast food’s ability to meet their health and quality standards.
Marketing Implications:
- Develop and promote healthier menu options, such as salads, wraps, or low-calorie meals.
- Use transparent messaging about ingredient quality and nutritional benefits.
- Partner with health influencers or dietitians to enhance credibility.
Meeting place
The final market segment in this example is not interested in the food to much extent, instead they are attracted by the location and facilities of the fast food outlet and use the venue as a meeting place (either socially or for business).
Some larger fast food chains have locations that are quite prominent and easy to find, as well as having a choice of seating and tables. This combination of position and in-store facilities lends itself to social groups and small business meetings. Of course, most people will buy some food and/or drink while they are in the store.
This segment would be quite loyal to brands that are known for their in-store facilities and have a choice of easy-to-find locations. This segment would represent a stable and consistent customer base that while being low-level purchasers are less likely to be overly price sensitive.
Key Characteristics:
- Value in-store facilities such as free Wi-Fi, accessible seating, and clean restrooms.
- Choose locations based on visibility, accessibility, and ambiance.
- Make low-value purchases, often limited to beverages or light snacks.
Marketing Implications:
- Promote the venue as a versatile space for meetings or socializing.
- Ensure consistency in facilities across locations to build brand loyalty.
- Highlight amenities like charging stations, quiet areas, or flexible seating arrangements.
Conclusion
Benefit segmentation reveals the diverse motivations driving fast food consumption, from families seeking shared enjoyment to individuals prioritizing convenience or health. By aligning products, services, and marketing strategies with these distinct segments, fast food brands can cater to specific customer needs, enhance customer satisfaction, and capture a larger share of the competitive market.
Market Segmentation Example for Fast Food Using Occasion-Based Segmentation
Occasion-based segmentation divides consumers based on the specific situations or events that prompt them to purchase fast food. By understanding the “when” and “why” behind consumption, fast food outlets can better align their offerings and marketing strategies to meet situational needs.
Here are six occasion-based segments for the fast food market:
1. Quick Bite
Overview:
Consumers in this segment turn to fast food when they need a quick meal or snack during a busy day.
Key Characteristics:
- Driven by time constraints and the need for convenience.
- Typically purchase smaller items like sandwiches, burgers, or snacks.
- Often eat alone or on the go, valuing speed over other factors.
Marketing Implications:
- Highlight fast service, drive-throughs, and mobile ordering options.
- Offer smaller, affordable menu items or snack-sized portions.
- Use messaging that emphasizes convenience, such as “quick, delicious, and hassle-free.”
2. Social Outing
Overview:
This segment chooses fast food as a casual option for hanging out with friends or family.
Key Characteristics:
- Meals are shared, with an emphasis on enjoying time together.
- Attracted to venues with comfortable seating, good ambiance, and a welcoming atmosphere.
- Likely to purchase group items like combo meals, large pizzas, or family bundles.
Marketing Implications:
- Promote family meals, group discounts, and shareable menu items.
- Create a welcoming environment with clean facilities and comfortable seating.
- Use advertising that highlights social moments and group enjoyment.
3. Late-Night Cravings
Overview:
Consumers in this segment visit fast food outlets late at night, often for indulgent or satisfying meals.
Key Characteristics:
- Attracted to indulgent, filling options like burgers, fries, and shakes.
- Frequently visit after social events, work shifts, or while traveling.
- Appreciate outlets with extended hours or 24/7 service.
Marketing Implications:
- Promote late-night menus with indulgent and satisfying options.
- Highlight extended hours or 24/7 availability in ads.
- Use targeted digital marketing, such as social media ads, during late-night hours.
4. Weekend Treat
Overview:
This segment visits fast food outlets as part of their weekend routine, treating themselves or their families.
Key Characteristics:
- Often visit with family or friends, seeking a relaxed and enjoyable experience.
- Likely to purchase higher-value items like premium burgers, desserts, or specialty drinks.
- View fast food as a reward or indulgence.
Marketing Implications:
- Promote premium menu items and limited-time weekend offers.
- Use messaging that frames fast food as a “well-deserved treat.”
- Offer family-friendly deals and highlight amenities like playgrounds or kid’s menus.
5. Road Trip Stops
Overview:
Consumers in this segment rely on fast food as a convenient option during long journeys.
Key Characteristics:
- Seek accessible locations near highways, with ample parking and quick service.
- Favor portable meals or snacks that can be eaten in the car.
- Look for options that provide both speed and sustenance.
Marketing Implications:
- Emphasize location convenience, drive-through options, and quick service.
- Offer portable, mess-free packaging for easy consumption on the go.
- Use signage near highways to attract travelers.
6. Work Break
Overview:
This segment includes workers taking a break from their jobs who seek fast food for convenience and affordability.
Key Characteristics:
- Prioritize quick service and nearby locations.
- Often purchase combo meals or lunch specials that offer good value.
- Tend to dine alone or in small groups.
Marketing Implications:
- Promote lunchtime deals, combo meals, or value menus.
- Use advertising targeting office workers or nearby workplaces.
- Ensure fast service during peak hours to cater to their schedules.
Conclusion
Occasion-based segmentation highlights the situational drivers behind fast food consumption, from quick bites during work breaks to indulgent late-night meals. By aligning product offerings and marketing with specific occasions, fast food brands can meet the needs of diverse customer groups and create stronger connections with their audience. This approach ensures relevance and satisfaction across various consumer moments.
Market Segmentation Example for Fast Food Using Psychographic Segmentation
Psychographic segmentation categorizes consumers based on their values, lifestyles, personalities, and attitudes toward food. This approach uncovers deeper motivations and preferences that influence fast food consumption, enabling brands to align their offerings with consumer mindsets.
Here are six psychographic segments for the fast food market:
1. Convenience Seekers
Overview:
This segment prioritizes convenience and time-saving over other factors when choosing fast food.
Key Characteristics:
- View fast food as a practical solution for busy schedules.
- Often eat on the go or while multitasking.
- Prefer outlets with efficient service, drive-throughs, or delivery options.
Marketing Implications:
- Highlight speed, efficiency, and convenience in advertising.
- Use mobile apps and online ordering to streamline the customer journey.
- Promote delivery services and nearby locations.
2. Health-Conscious Moderators
Overview:
These consumers enjoy fast food occasionally but are mindful of their health and prefer balanced options.
Key Characteristics:
- Seek healthier menu items, such as salads, grilled options, or plant-based meals.
- Value transparency in nutritional information and ingredients.
- Eat fast food as a treat, not a routine.
Marketing Implications:
- Develop and promote healthier menu options with clear nutritional labeling.
- Highlight organic, low-calorie, or plant-based ingredients.
- Use messaging that positions fast food as a guilt-free indulgence.
3. Value-Oriented Pragmatists
Overview:
This segment is driven by affordability and seeks the best value for money when choosing fast food.
Key Characteristics:
- Highly price-sensitive and responsive to promotions and discounts.
- Prefer combo deals, dollar menus, and family meal bundles.
- Often compare prices between competing brands.
Marketing Implications:
- Offer budget-friendly meal deals and loyalty rewards programs.
- Emphasize savings in advertisements and in-store displays.
- Use coupons, app-exclusive discounts, and limited-time offers to attract this group.
4. Indulgence Seekers
Overview:
Indulgence Seekers view fast food as an enjoyable treat, prioritizing taste and satisfaction over health or cost.
Key Characteristics:
- Attracted to rich, flavorful menu items and large portion sizes.
- Frequently explore new flavors and specialty items.
- See fast food as a reward or indulgence.
Marketing Implications:
- Focus on taste and indulgence in marketing campaigns.
- Introduce limited-time offers, premium items, and bold flavor combinations.
- Use sensory-focused advertising to highlight texture, flavor, and satisfaction.
5. Social Diners
Overview:
Social Diners choose fast food outlets as a place to connect with friends or family, prioritizing the experience over the food itself.
Key Characteristics:
- Look for comfortable seating, clean facilities, and an inviting atmosphere.
- Prefer shareable items like pizzas, platters, or family meals.
- Often dine in groups, making fast food a social outing.
Marketing Implications:
- Enhance the in-store experience with appealing interiors and group-friendly layouts.
- Promote shareable meals and combo deals for groups.
- Use messaging that emphasizes togetherness and social enjoyment.
6. Trendsetters
Overview:
Trendsetters enjoy exploring new and unique fast food offerings, staying ahead of the curve in food trends.
Key Characteristics:
- Attracted to innovative, Instagram-worthy menu items.
- Likely to try limited-edition products or collaborate with fast food chains on social media.
- Place a premium on creativity and novelty in their choices.
Marketing Implications:
- Regularly launch innovative menu items or seasonal offerings.
- Partner with influencers and use social media to drive buzz.
- Focus on visually appealing food presentations and packaging.
Conclusion
Psychographic segmentation reveals the underlying values and attitudes that shape consumer decisions in the fast food market. From convenience-focused diners to indulgent treat seekers and health-conscious consumers, understanding these segments allows brands to create more resonant messaging, menu offerings, and experiences. By appealing to specific lifestyles and preferences, fast food outlets can build stronger emotional connections and foster greater loyalty.