You have two ways of looking at segmentation:
There’s a big difference between ppt and reality.
The literature makes us think that gold and silver outlets are much more than what they really are.
This makes us rely too much on the top part of the pyramid in a wishful vicious circle that makes it difficult to get to a sustainable P&L.
Reality is that if you focus only on the top of the pyramid, you will kill your P&L and need much more funds than your investors and management think.
Outlet segmentation is not a theoretical marketing exercise.
It’s a commercial tool that should consider P&L at its core.
Gold outlets build brands.
Bronze outlets pay for gold outlets and salaries.
Brands are built bottom up, with P&L in mind.