Burger stand vs fast food burgers

[Alexandoy]

There are many small burger stands in our town that seems to be competing with franchise fast food outlets like McDonald’s and our local Jollibee. But after some years I have noticed that there is a sort of demarcation line between the burger stands and the fastfood outlets


The burger stand has a very cheap price compared to the same burger of the fast food chain. As they say, you can buy 3 burgers from the burger stand with the cost of one burger from the fast food. Based on my observation the poor are the customers of the burger stand while the middle class patronize the fast food outlet. Fortunately they are both earning because they have different customer base. With the taste of the burger maybe I caan say that both have their own good quality.

 

[Mika]

"they are both earning because they have different customer base."
That's called market segmentation. If you know who your customers are and if you cater to your proper customer, you can succeed with your business. People who go McDonald and people who visit food stalls come from different economic backgrounds. These business cater yo different people.