4 consumers segments: Teens, Single Young Adults, Busy Families with Young Children, Baby Boomer and Retirees....

4 consumers segments: Teens, Single Young Adults, Busy Families with Young Children, Baby Boomer and Retirees. Should A&W stop focusing on certain segments, and if so why? Can it strategically satisfy all of these segments, and if so, how? Make an argument on which segments to focus on and why to your leadership.

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Expert Solution

A&W should stop focussing on baby bpomer segment and Retirees specially as it sells Fast food and craft brewery which doesnt satisfy pallete and consumption preferences of these groups.

It is not possible to strategically satisfy all segmentation groups as it would lead to erosion of positioning of its brand and value offerings which would result in dilution of brand equity. Moreover it would result in higher operating costs and diversification of markets which would incur higher compliance and capex and hence not recommended.

Segements like teenagers and young adults remain core segments to focus as 80 percent of sales shall be driven by 20 percent of customers. This alsp helps the leadership of the company to focus on operational flexibility and capacity utilisation ajd inventory optimisation.

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Rahul Sunny answered 11 months ago

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