RBM150S – Vida e Caffe Retail Store

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Assignment Task

INTRODUCTION

This Assignment is about Vida e Caffe retail store, which was established in Cape Town, Kloof street in 2001. Which has now expanded into different areas across the country. It was founded by Rui Esteves and Brad Armitage. And it is now developing its iPhone and Android app which is going to be used by customers to log on to order, pay and then collect their coffee in store. They use customer segmentation to tailor their message to the right person. It also uses Marketing mix which controls the business operation which assist with what consumer needs. It deals with customer’s complaints. It takes into consideration the retailer’s responsibilities. And types of selling processes found in various retail formats.

QUESTION 1

Customer segmentation is the process of identifying and dividing subdivision of a market into distinct customer groups which share similar characteristics. Companies which identify customer segmentation can outperform the competitors by developing uniquely appealing products and services. This prioritization can help companies to develop marketing campaigns and pricing strategies to extract maximum value from both high and low profit customers.

Vida e Caffe demographic segmentation:

The demographic segments which Vida e caffe serves consist of customers of different age, gender, and race. The customers of Vida which are consuming the products and services are the young and middle-aged customers. As far as gender is concerned Vida offers product which serve both men and women. The customers of Vida are from different races. The customers of Vida can be segmented on income, education, and social classes. Vida sells the coffee which is expensive and the one which is ordinary. And it serves both upper and middle class.

Vida e Caffe Geographic segmentation:

The geographic segmentation divides the market according to geographic areas, like city country and region. Geographic segmentation is a marketing strategy used to target product or services at people who live in, or shop at a particular location. Vida is present in many areas like Mauritius, Angola, London, Ghana, Botswana, Cape Town, Australia, and U.S.

Vida e Caffe buyer’s behavior segmentation:

Behavioral segmentation is about understanding customers not just by who they are, but by what they do, using insights derived from customer’s action. The customers are grouped according to their buying pattern like usage frequently, sought, usage occasions. when a customer places a much higher value on one or more benefits over the others, these primary benefits sought are the defining motivating factor driving the purchase decision for which customer. Usage behavior can be strong predictive indicator of loyalty and therefore, lifetime value (Gary DeAsi).

The 4P’s:

Vida Product strategy: is an item which is built or produced to satisfy the needs of a certain group of people. The product can be intangible or tangible as it can be in the form of services or goods. Vida basically provides with coffee as part of its marketing mix. Vida provides with the best coffee which does not leave the customers dissatisfied when it comes to taste.

Vida Price strategy: is the money which customers have to pay to buy products they require. Price include discounting offered to customers. the prices are kept competitive in the market. Vida serves the consumer segment preferring the low prices.

Vida Place strategy: is the location or a distribution center and where the products are stored for the customer. Vida currently operates 72 stores in South Africa, one in Angola, two in London and four in Mauritius. They also operate through online platform. And they are developing their iPhone and Android app for purchases. An established coffee shop in a corporate building can also become a popular meeting point for those looking for a more relaxed environment to discuss business.

Vida Promotion strategy: is the act of communicating the values and benefits of your products to your customers, selling the products at a lowest price than the normal price. Promotion has been of keen importance for Vida. They have constantly been innovating in the same. They use online media for promotion.

How does Vida e Caffe utilizes two elements within each of the 4P’s?

Product

Design: is a plan for the construction of an object or system. (2017/06/03) A design process defines every designer’s journey to solve wicked problems. It is a phrase which appears at talk, job descriptions, and job interviews. Product is designed based on the value proposition which customers are seeking and one which Vida can deliver.

Brand name: is an element designed to helps the customers to differentiate one product from another. Vida e Caffe use the Brand name to differentiate its products from the others.

Place

Channel: refer to a distribution system for businesses. Vida use Channel to attract its targets.

Location: is the physical space where your business exists. Vida uses the location to distribute and store its products and it is also used as a meet up place for people to discuss their businesses.

Price

List price: is the full price which an item is advertised at without considering any discounts or special offers. In other words, this is the amount of money Vida e Caffe is willing to sell their products for.

Payment period: is a recurring length of time recorded over which Vida employee time is paid for.

Promotion

Sales Force is the division of a business which is responsible for selling products or services. Vida utilizes Sales force to understand their customers

Sales promotion (2021/03/17) Sales Promotion is a part of the promotion mix which a business uses for stimulating the demand for products and services and to increase brand awareness of the product or the service. Sales promotion is used in the following cases: 1. For introducing new products to the existing market. Vida e Caffe use Sales Promotion to increase the demand for their products and services.

QUESTION 3

The Retailer’s responsibilities:

Retailer must train staff to understand their roles in providing friendly service and making sure which the business always complies with all aspects of the CPA.

Retailer must have procedures to return, replace or refund any product without charge in a pleasant and professional manner.

Retailers must not display goods without prices

Retailers must give all customers a record for all goods sold

Retailer must handle all queries regarding products in a quick, friendly and professional manner.

QUESTION 4

Two types of selling processes found in various retail formats:

Transactional selling is a common method of sales in which a sales representative seeks out prospects, develops a relationship then tries to close a sale. Transactional selling works in parts because its psychologically comforting to everyone involved. The benefit in transactional is which the focus is short-term. Transaction sales are found in selling cars, clothes, pharmaceutical products, where the key competitive parameter is best price for the largest volume. Customer satisfaction in transaction sales is all about best execution on which single transaction. If you have the best price, can perform in the most efficient way, then you are competitive and have a high probability of winning in transaction sales. It focuses on the products only.

Characteristics of Transactional selling: The prospect is aware of his problem or need, he also knows the solution he wants, and he is just looking for the best matching product or service.

Solution selling is a practice of uncovering a customer’s pain point and then proving products and services which address the underlying business problem. Solution selling generally consist of hardware, software, and storage technologies along with associated services. In a typical scenario, a channel partner would approach a customer’s executives to discuss their top business and operational challenges. The partner discovers customers pain point.

Characteristics of Solution selling: The prospect is aware of his problem or need, but he is not quite sure about how to solve it. He is looking for a solution to his problem. Solution selling is often performed in multi-touch face to face environment.

CONCLUSION

The purpose of this assignment was to conduct an analysis of a typical Vida e Caffé using the customer segmentation. And conduct an analysis on marketing mix of Vida caffe with further explanation of how Vide e caffe utilizes two elements within each of the 4P’s in its marketing strategies. And to discus the responsibilies which the retailer has in relation to consumers protection act. Providing with the aid of example the selling processes which are used the most by retail.

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• Posted on : December 08th, 2019

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