VIT Cafe: Market Strategies and Segmentation Analysis Report

This report analyzes the market strategies and segmentation of VIT Cafe, a restaurant in Abbotsford, Australia. It begins with an executive summary highlighting a decline in sales and the need for menu innovation. The report then delves into market segmentation, including demographic, geographic, psychographic, and behavioral approaches, with a focus on the 16-30 and 30-45 age groups. It explores various marketing approaches, such as commodity, institutional, functional, and decision-making, emphasizing customer satisfaction and brand awareness. The report identifies the target market as middle and upper-middle-class youth, students, and food enthusiasts, advocating for differentiated marketing strategies. It examines marketing mix elements (product, price, place, promotion), market positioning, and customer demographics. Statistical data from Abbotsford is presented to support market analysis. Finally, the report addresses customer satisfaction and the need for menu changes to improve the cafe's performance, concluding with recommendations for future operations.

Running Head: MARKET STRATEGIES AND SEGMENTATION OF VIT CAFE
Marker Strategy and Segmentations of VIT Café
Name of the student:
Name of the university:
Author Note:

1MARKET STRATEGIES AND SEGMENTATION OF VIT CAFE
Executive Summary
The following study is based on a restaurant named VIT Café which is situated in the town of
Abbotsford, Australia. The particular organization is having a better demand and value in the
customer minds it was identified that the growth rate has a fall as per the sales records of the last
12 months. VIT Café is planning to introduce new and innovative changes to its menu to have a
better operation in the upcoming future. The report explains what changes can make the café
more effective for the future, understanding the changes that can make the customers more
attractive and satisfied than before.

2MARKET STRATEGIES AND SEGMENTATION OF VIT CAFE
Table of Contents
Discussion.......................................................................................................................................3
Conclusion....................................................................................................................................11
References.....................................................................................................................................12

3MARKET STRATEGIES AND SEGMENTATION OF VIT CAFE
Discussion
A market segment is classified as a group of customers, who have that potential to increase
the performance of the market and optimize market competition as a whole. As compared to VIT
café, the particular organization is having a better demand in the mind of customers. It is noticed
that as per the sales record of the last 12 months the buying behavior of the customers have
changed and there is a lump sum fall in the business (Weinstein, 2013) . The particular market
organization has planned to conduct a market campaign to bring some changes in the menu
comparing the previous performance of the market and taste and preferences of customers in the
city of Abbotsford.
 Demographic Segmentation
 Geographic Segmentation
 Psychographic Segmentation
 Behavioral Segmentation
Demographic Segmentation
 Age
 Gender
 Income
Geographic Segmentation
 Country
 Region
 Climate

4MARKET STRATEGIES AND SEGMENTATION OF VIT CAFE
Psychographic Segmentation
 Social Class
 Lifestyle
 Personality
Behavioral Segmentation
 Occasions
 Benefits
 Loyalty
Figure: Market Segmentation
Source: (De Leiuen, 2015)
Segmentation on the basis of VIT café
Demographic Segmentation: As compared to the Demographic Segmentation of VIT café, the
target area of importance understanding the following characteristics such as age, gender and
income groups. The major focus can be given to the middle age groups between 30-45 and youth
at the age group of 16-30 as the café has a wide area, offers good quality food and is available
for 7 days in a week ( Dibb & Simkin, 2013). Since preference can be given to family members
and young generation who can probably be the regular visitors.
Geographic Segmentation: Geographic Segmentation is based on the particular area, country
and region where the café is situated. To decide the quality of food that has to be offered,
climatic condition of the particular region plays a major role. Abbotsford is the town situated in
the central part of Australia where the climatic condition is moderate. The initiative that has to be
taken for the purpose of introducing better menu is to consider the taste and preference of
customers of that particular region.

5MARKET STRATEGIES AND SEGMENTATION OF VIT CAFE
Psychographic Segmentation: This type of segmentation is completely based on the thinking
level, lifestyle and personality of the customers prospective. The key importance must be given
to the part considering what the customers actually want and what the expectation of the
customers in the future. VIT café before bringing changes to the business operations they can
conduct a door to door survey to understand the food varieties and quality that has to be
generated for the purpose of further advancements.
Behavioral Segmentation: The type of segmentation is customer behavior oriented. To attract
the mind of customers and create a better organizational demand and value customer satisfaction
plays a major role. VIT cafe being into a restaurant business providing certain benefits which
includes offers and discounts to the customers at the time of occasions along with several loyalty
programs may help to create a better impression in customers. This function can help to increase
more productivity to the business.
Marketing approaches for VIT Café
Commodity
Approach
Institutional
Approach
Functional
Approach
Decision making
Approach

6MARKET STRATEGIES AND SEGMENTATION OF VIT CAFE
Source: (Markides, 2013).
Figure: Marketing Approaches
According to the above mentioned marketing approaches the idea that has to be generated
for the future operations of VIT Café can be that, they must try to ensure awareness about the
quantity and quality of food items that has been served. Customer satisfaction can be the other
part, it is important to understand according to the food items that is being served brings a
satisfactory approach in the mind of customers. The other important part can be related to the
market and selected brands or products from where the ingredients are used in the café. These
can the products that are imported from other places to ensure better service. Functional
approach to marketing is related to the process of measuring the performance of the organization
under all aspects. This can be depending upon the area of sales behavior, risk bearings, finance
related and buying behavior of customers (Raab et al., 2013). To have a better organizational
behavior and to bring an effective quality in the performance before entering to the real market it
is important to keep and maintain a better decision making function. This can help in creating
new innovative ideas for future.
Target Market
Target market of VIT café can be based on:
 To enhance better stability in the market and for the purpose of having better expansion
in the future the target customers can be the middle class and upper middle class youth.
 The targeting can be related to students, Housewives, youngsters and executives for
whom the service of the organization can be more profitable and beneficial.

7MARKET STRATEGIES AND SEGMENTATION OF VIT CAFE
 It can be the people who mostly prefer to taste food items of different varieties than the
home made food.
 VIT cafe not only targets on youth and family members but anyone who is a food lover
and expects to have something special and innovative according to their taste and
preference.
Approach to targeting of VIT café
Differentiated Marketing: As compared to VIT café the function of differentiated marketing
approach may help in ensuring better stability in the future (Uncles & Kwok, 2013) As it is in the
restaurant business, same variety of food menu may not satisfy the customers instead,
introducing new menu may help in increasing profit and creating a better brand image for the
organization and also in the customer minds. This function can help to create an effective
upliftment in the sales records of the café by generating more profit.
Market Strategies and strategic options of VIT Cafe
For the purpose of bringing better marketing strategy in a particular organization, as
compared to VIT Café, more importance can be given under the area four major segments such
as product, price, place and promotion. Pricing strategy of a particular brand plays major role in
the business which includes the function of offering good quality food at reasonable and
affordable price. According to the Abbotsford the place where the cafe is situated has a better
opportunity for the business to have an effective survival in the market. The demand for food
considering the youth and middle aged groups in such areas play a major role which may help in
increasing productivity of the business. As a part of promoting the business to the market,

8MARKET STRATEGIES AND SEGMENTATION OF VIT CAFE
development of advanced advertising strategies which may help in creating a good reach to the
customer mind. Marketing strategy can be based on making of ads elated to the organization and
creating better awareness through internet sources. This may provoke customers to get more
connected to the brand which can help in increasing a better brand image in the market on all
aspects.
PHOTO CUSTOMER DETAILS
Name of the Customer Simon James
Age of the Customer 26
Location Australia, Abbotsford
Industry IT
Language Spoken English
Area of Interest Cooking, Travelling and Driving
Customer Profile

9MARKET STRATEGIES AND SEGMENTATION OF VIT CAFE
Goals of the Customer To be an IT specialist
Favorite Food All non-veg especially spicy food items.
Mostly used platforms: Facebook,
Instagram, Twitter or any ( Please specify)
Facebook and Twitter ( mostly preferred)
Market positioning Strategy
Positioning of VIT café is done on the basis of the following terms:
 As compared to any other restaurants situated in the city of Abbotsford, the
location of the café brings a resemblance of joy and happiness to the customers
as it is situated in the river side.
 VIT café offers food items of different varieties which include Chinese, French
and special Australian dishes which are considered as the major highlighting
factor of the restaurant (McManus, 2013).
 It offers instant home delivery facilities within the time limit of five minutes
for the nearby location and not more than half an hour for locations within 10
km.

10MARKET STRATEGIES AND SEGMENTATION OF VIT CAFE
 Free Wi-Fi assistance to the customer in the café which is not mostly provided
by any restaurants in the city of Abbotsford.
 Loyalty programs for the customers who are the regular visitors.
Statistical Data
PEOPLE FAMILY ALL PRIVATE DWELLING
Male : 50.2%
Female : 49.8%
Median age : 32
Total people : 8,184
Average Children Per Family: 1886
For Family with Children : 1.5
For all families : 0.3
Total Family : 1886
Average people per
Household : 2.1
Median weekly Household
income : $2001
Median monthly mortgage
repayments : $2142
Median weekly rent :$426
Average motor vehicles per
dwelling : 1.1
Figure: Statistical Data of Abbotsford Population
Source: (Alonso-Almeida, Bremser & Llach, 2015).

11MARKET STRATEGIES AND SEGMENTATION OF VIT CAFE
According to the following statistical data, bringing a comparison with demographic
segmentation, it is understandable the town Abbotsford can be a better option to establish a
restaurant business. The following statistical report explains about the total number of people
residing in a particular place categorizing it with the differentiated income groups. As the total
population is 8,184 and the total income of the household is $2001. The target customers
bringing a comparison in the family tier can be middle-aged income groups. Through the
statistical data it understandable that VIT Café can have a better possibility of growth in the
business if introduced certain changes and advancements in its current operations. The higher
demand may enhance effective productivity and survival in the market.
Customers prospective about the organization
Customer satisfaction is the key part and motive of any organization. The café had a
better image in the mind of customers as they satisfied with the service, food quality and other
accommodations. As per the sales record of the last 12 months it was noticed that there is a
certain change in the profit margin as compared to the previous year performance. So, at this
particular stage keeping a better name and value in the mind of customers, if certain innovative
changes are introduced to the current food menu this can certainly help in touching the profit
margin. The accommodations that are newly introduced may make the customers more attractive
towards the changes. This function can help and bring an impact in the future.