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Exploring Geographic Segmentation for Foodservice Market Analysis & Its Benefits

You might have great products, but it isn’t easy to figure out where to focus your marketing efforts. You need to know where your customers are and what they want. This is where geographic segmentation can help.

In this blog, we will cover examples of geographic segmentation and how to conduct it. By the end, you’ll see how this approach can benefit your business and help you reach the right customers.

What is Geographic Segmentation Analysis?

Geographic segmentation analysis is a way to market your products or services to people in a specific location. It means focusing on customers who live or shop in a particular area.

People in the same location often have similar needs and wants. For example, people in a city might want quick meal options, while people in the countryside might prefer home-cooked meals.

The size of your target area can change depending on your business needs. If you’re a small local bakery, you might focus on your town or city. But if you’re a larger foodservice supplier, you might target entire regions or even countries.

There are six key factors in geographic segmentation:

  1. Location – Targeting specific cities, regions, or countries.
  2. Climate – Considering weather patterns that affect buying behavior.
  3. Population Density – Focusing on urban, suburban, or rural areas.
  4. Language – Catering to areas where certain languages are spoken.
  5. Cultural Preferences – Understanding the local customs and preferences.
  6. Local Economy – Adjusting to the economic conditions of the area.

Why Is Geographic Segmentation Analysis Important?

Geographic segmentation analysis is critical for businesses, particularly in the foodservice industry. It aligns marketing strategies with customers’ distinct preferences and behaviors in various locations.

The underlying cause of its effectiveness lies in human nature—people’s tastes, preferences, and needs are shaped by their environment. For instance, someone in a coastal city might prefer fresh seafood, while someone in a landlocked area might lean towards meat-based dishes.

Some might argue that digital advancements and the rise of e-commerce make geographic segmentation less relevant. After all, isn’t the internet borderless?

However, even online, customers’ preferences are often influenced by their physical location. Weather conditions, local events, and regional trends can significantly impact buying behaviors and, eventually, your target audience.

Examples of Geographic Segmentation

Geographic segmentation helps businesses tailor their marketing to fit the needs of different locations. Brizo FoodMetrics is a market intelligence platform that helps foodservice businesses use these insights to grow.

Here, we will show examples of geographic segmentation.

Location

This screenshot from Brizo shows food establishments across Alaska, with detailed counts for each area. For instance, the data can help a seafood supplier identify target markets in coastal towns like Anchorage and Juneau.

Brizo's map showing the distribution of food establishments across Alaska

Brizo’s map showing the distribution of food establishments across Alaska

Climate

Climate is a key factor in geographic segmentation as it influences customer preferences and needs. For instance, there is a higher demand for warm, hearty meals and hot beverages in Banff, where the climate is cold for much of the year.

Using Brizo’s market data for the food industry, a foodservice business can use this information to tailor their menu to include items like soups, stews, and hot drinks.

Brizo's screenshot shows an overview of food establishments in Banff.

Brizo’s screenshot shows an overview of food establishments in Banff.

Population Density

Businesses can compare urban areas to understand where high concentrations of potential customers live and work.

For example, as the Brizo screenshot shows, Greater London has a significantly higher number of establishments in the UK than other urban areas like Greater Manchester or West Midlands. This indicates a thriving market with a high demand for various services and products.

Brizo's screenshot shows a comparison of the number of food establishments in major urban areas of the UK.

Brizo’s screenshot shows a comparison of the number of food establishments in major urban areas of the UK.

How to Conduct Geographic Segmentation Analysis?

Here’s a step-by-step guide to help you get started:

Step 1: Define Your Goals

Begin by identifying what you want to achieve with your geographic segmentation.

Are you looking to expand into new geographic markets, tailor your marketing strategies, or understand regional customer preferences?

Step 2: Collect Geographic Data

Gather data about your target locations using the Brizo FoodMetrics market intelligence platform. It can segment food establishment locations by regions, countries, urban areas, counties, postcodes, or cities.

Collect Geographic Data

Selecting regions on Brizo for detailed geographic segmentation

You can use sources like government databases, and market research reports to research cultural aspects and economic conditions.

Step 3: Analyze Customer Behavior

Look at customer behavior in different regions. What products or services are popular? How do purchasing patterns vary by location?

Brizo FoodMetrics provides valuable insights into customer reviews and menus offered to understand regional preferences.

Analyze Customer Behavior

Brizo’s platform shows the distribution of food establishments in London offering different meal types.

Step 4: Segment Your Market

Based on the collected data, segment your market into different geographic areas. Consider factors such as location, climate, population density, language, and cultural preferences. Create profiles for each segment to understand their unique characteristics.

Step 5: Tailor Your Marketing Strategies

Develop effective marketing campaigns that cater to the specific needs of each segment. Customize your messaging, product offerings, and promotions to align with the preferences of each geographic area.

For example, warm beverages can be offered in colder regions, and refreshing drinks can be offered in warmer climates.

Step 7: Adjust and Refine

Continuously analyze the effectiveness of your geographic segmentation. Adjust your strategies based on the performance data and evolving market conditions. Stay updated with new data and market trends to keep your segmentation relevant and effective.

Conclusion

Geographic segmentation isn’t a new concept for marketers. It’s been around for a long time because it works. What makes it even better now is the availability of powerful tools like Brizo FoodMetrics.

Brizo’s restaurant data analytics makes the whole process simple and straightforward. You don’t have to guess where your potential customers are or what they want. With accurate and up-to-date data at your fingertips, you can make informed decisions and grow your business effectively.

Ready to take your marketing to the next level? Try Brizo FoodMetrics and see how easy geographic segmentation can be. Get started with a free trial today!