Target Market
When choosing a target market for Moe’s Grill in the New River Valley, two
different target markets were covered. Using a number of segments and appealing to
them using different products. This will help us diversify our risk, in case one segment
becomes unprofitable, we can continue to target the other market (“Choosing Customer
Segments”).
Our first target market is college students. The college student segment is made of
up males and females in their twenties. The most common ethnicity in this segment is
Whites, and there are also concentrations of Blacks, Hispanics and Asians. They have a
downscale sized income around an average of $31,570, or less, a year (“Claritas' Inc”).
Their professions are mostly in the service industry, and part-time work while attending
college. Their education is typically a high school degree, and some college (“Claritas'
Inc”). Large portions of the people in the college student segment are attending the local
colleges, like Virginia Tech, Radford University, and New River Community College.
Students enrolled in college or graduate school make up 31% of the total Montgomery
County population, and make up 69.7% of the Montgomery County population 3 years
and older enrolled in school. People between the ages of 20 and 24 make up 21% of the
total Montgomery County population (“U.S. Census Bureau”). People in the college
student segment are renters, typically in cheep apartments, cheep homes, dormitories, or
mobile homes; and usually live alone or with other singles (“Claritas’ Inc”). They live in
areas like exurban towns and satellite cites. Hobbies of this segment include cars, sports,
and dating. Their money is spent on outdoor sports, cars, and food (“Claritas’ Inc”).
Convenience of food is need of the segment. As Virginia Tech’s and Radford’s
enrollment continues to rise it is expected for this segment to continue to grow larger.
Our second target market is families. The family segment is made up of adult
males and females, mostly between the ages of 25 and 45, and their children (under the
age of 18). The family segment is a large part of the New River Valley. Family
households (families) make up 55.5% of the total households in the Montgomery County
area. Family households with children under the age of 18 make up 25.3 % of the total
households. Married-couple family households make up 44.8% of the total households,
and married-couple family households with children under the age of 18 make up 19.3%
of the total households (“U.S. Census Bureau”). They have a midscale sized income
around an average of $54,331 a year. Most commonly the households have a dual-income
from both the Father and Mother. Their professions are decent-paying jobs in whitecollar and service industries (“Claritas’ Inc”). Their education level is high school degree
and college degree. Families live in town or the rustic surrounding townships. Their
lifestyle is centered on their children and family. This segments money is spent on things
like campers, powerboats, home improvements and their children (“Claritas’ Inc”). As
the New River Valley expands and becomes better known there should be an increasing
number of families seeking to escape the suburban sprawl will come and find refuge in
the New River Valley (“Claritas’ Inc”).
In order to make Moe’s Grill a success in the New River Valley two different
markets need to be targeted. Both college students and families are critical markets for
our company.
Situation Analysis
By over viewing the strengths, weaknesses, opportunities, and threats of Moe’s in
the New River Valley we will have a better understanding of how open a successful
Restaurant.
Strengths:

Moe’s offers fast and convenient service with a casual dining atmosphere. There
are not a lot of restaurants in the New River Valley that are like that.

Moe’s offers a wide variety of support for franchisee to ensure success.
Weaknesses:

Brand name not very well known around the New River Valley.

Most other Moe’s are located in larger cities.
Opportunities:

High demand for restaurants in the New River Valley.

Target customers with a healthier food option.

Moe’s offers a family friendly atmosphere which will draw the target market into
the restaurant.

The closest locations of Moe's are Northern Virginia, Richmond, or North
Carolina. People might have visited another location of Moe's and liked it so they
would possibly drive a little further to eat at the new location. This could draw in
people possibly from as far as Roanoke.
Threats:

There are many close competitors in the, New River Valley area, such as a variety
of Mexican restaurants as well as other national, causal dining chains such as
Applebee’s and O’Charley’s

Moe’s does not have name recognition in the fast food segment, of other chains
such as Wendy’s, McDonalds or Burger King.
Competition:
Moe’s Southwest Grill will have many direct and indirect competitors in the New
River Valley. The biggest direct competitors will be other Mexican restaurants including
Cinco de Mayo Restaurant & Bar in Christiansburg, Cabo Fish Taco, and another Cinco
do Mayo in Blacksburg, and Mi Puerto in Radford. The Taco Bell locations in the area
will also be direct competitors. Indirect competitors will be both fast food restaurants as
well as sit-down restaurants. Some of the fast food competitors will include Burger King,
Arby’s, Wendy’s and McDonald’s. Sit-down style restaurants competing for business
against Moe’s will include Applebee’s Neighborhood Bar & Grill, Texas Roadhouse,
Red Lobster, and Macado’s.
Other factors that could impact Moe’s would be the lack of college students in the
area during the summer months. The college students will be a large percent of the
customer base during the school year. However, when they are gone for summer break
as well as winter break, if the locals do not have an interest in the restaurant or like it,
then they could be in trouble. If Moe’s focuses too much on the college market and not
on the local family market as well, they are risking a lack of business during the times
students are gone.