Assessing the Effectiveness of Marketing Customer Segmentation Strategies on Organizational Profitability: A case Study of Garden Court Hotel in Kitwe

This study investigated the impact of market segmentation strategies on the performance of Garden Court Hotel in Kitwe. The research was driven by the problem that despite implementing several segmentation approaches, the hotel continued to face inconsistent occupancy, weak customer retention, and exposure to market fluctuations. The objectives were to identify the types of segmentation strategies applied, assess their effectiveness in enhancing customer loyalty and profitability, and evaluate the limitations that constrained their success. A descriptive case study design was adopted to capture in-depth operational realities. A sample of 49 staff members drawn from different departments provided a balanced view of marketing and customer service practices. Data was collected through structured questionnaires containing both closed and open-ended items. Quantitative data was analyzed using descriptive statistics, chi-square tests, and Cramer’s V to examine associations between demographic factors and perceptions of segmentation effectiveness, while qualitative responses were summarized thematically. The analysis showed that corporate clients and conference packages were the most dominant strategy, reported by 34.7 percent of respondents, followed by weekend family packages, loyalty programs, onlinse booking discounts, and seasonal promotions. Chi-square results indicated a significant association between age group and perception of primary customer segment (χ² = 12.41, p < 0.05) with a moderate relationship strength (Cramer’s V = 0.36), revealing that younger staff tended to view leisure travelers as key customers while older staff emphasized business clients. Gender was significantly associated with perceived effectiveness of segmentation strategies (χ² = 9.87, p < 0.05, Cramer’s V = 0.32), showing differing evaluations of marketing outcomes between male and female respondents. Pearson correlation results further demonstrated a strong positive relationship between the degree to which customer needs were met and contribution to loyalty (r = 0.68, p < 0.01), while a negative correlation was observed between resource limitations and revenue impact (r = –0.41, p < 0.05), confirming that constraints reduced profitability. The study concluded that while the hotel’s segmentation strategies contributed to profitability and repeat business, overreliance on corporate clients and limited digital marketing restricted growth potential. It was recommended that Garden Court Kitwe diversify into leisure and youth markets, invest in stronger digital marketing and online booking systems, enhance staff training, and establish regular customer feedback mechanisms to support data-driven decision making.