（a）Explain two benefits of market segmentation for VV ． Benefit 1： . Explanation： . . . . . Benefit 2： . Explanation： . . . .

Award 1 mark for each benefit (max 2).
Award a maximum of 3 additional marks for each explanation of the benefit of market segmentation - one of which must be applied to this context.

Relevant benefits might include:
- Gain more sales - by appealing to the specific needs of customers in this segment - better meets customer needs
- Attracts new customers - may find it easier to fill a gap in the market currently not being met by other businesses
- May be able to charge higher prices - as customers willing to pay higher price for specific product - increases revenue
- Increases customer loyalty - service can be designed to meet the exact customer needs of the market segment
- May make it easier to compete with businesses that serve the mass market
- Marketing budget may be used more effectively - marketing strategies can be focused on the specific target market

For example: VV may be able to charge higher prices (1) for the vegan meals served in the restaurant (app) because customers may be more willing to pay a higher price for specific products that meets their exact needs (1) which may lead to higher revenue for VV (1).

Application could include: restaurant; vegan target market; plant-based ingredients; meals; fruit and vegetables; \$50000; chefs; working 40 hours a week; 12 employees; increasing trend for people eating vegan meals; eating less meat is good for the environment; menus; recipes.