Marketing Mix Of Cafe Xaragua

Posted by Zander Henry on Aug-22-2018

1. marketing mix

1.1. Understanding the marketing mix

• The marketing mix is an important set of marketing tools and characteristics that a firm uses to increase penetration in the target market groups
• Using the marketing mix strategically includes focusing on seven important aspects of marketing and branding for an organization, namely: product, place, price, promotion, people, process, and physical evidence

1.2. Importance of marketing mix

• The marketing mix helps a company choose and decide on a suitable marketing strategy
• The marketing mix also helps a company in resource and budget allocation to different aspects of the marketing strategy and product development
• The marketing mix also allows a company to choose the right and effective marketing tactics for its promotional needs

2. Marketing mix for Cafe Xaragua

Cafe Xaragua makes use of the marketing mix strategically to achieve not only the marketing objectives but also the broader organizational objectives.

Marketing Mix Cafe Xaragua is presented below:

2.1. Product

Product is one of the most important components of the Cafe Xaragua Marketing mix. The distinctive characteristics of the product by Cafe Xaragua are:

2.1.1. Quality

• Cafe Xaragua maintains the high quality of products
• High product quality is maintained by adding value during different stages of the value chain
• Cafe Xaragua procures raw materials from reliable and trusted suppliers only
• These raw materials are processed under carefully maintained environments to maintain high and consistent quality of the products
• High quality promise and delivery also provides Cafe Xaragua with a distinctive competitive advantage

2.1.2. Ease of use

• The products manufactured and sold by Cafe Xaragua are relatively easy to use
• All products come with a user manual, which is easy to understand and which provides simple instructions for product use
• The consumers can also call the 24/7 helpline to understand details about product usage
• Also, retail representatives provide detailed instructions and explanations regarding the use of the product at the time of the sale

2.1.3. Portfolio broadness

• Cafe Xaragua has a broad portfolio of products
• The broad portfolio helps Cafe Xaragua in reaching different target groups in the market
• Also, the broad portfolio allows financial strength to Cafe Xaragua
• The broader product portfolio also adds more value for Cafe Xaragua

2.1.4. Benefits of product consumption

• Cafe Xaragua offers functional benefits to consumers of the product use
• These functional benefits are promised and delivered – however, they are also delivered by other similar products
• The distinguishing aspect of Cafe Xaragua is its delivery of emotional benefits to the consumer
• Products manufactured and sold by Cafe Xaragua promise consumers an ego boost, confidence, and security
• Cafe Xaragua also promises fulfilment of psychological needs on product consumption
• These psychological needs include, for example, the need for empathy, the need for belonging, and the need of feeling loved.

2.1.5. Different SKUs

• The products by Cafe Xaragua are available in different sizes
• Cafe Xaragua has made use of different SKUs to increase market penetration
• Different SKUs can be brought and used as per the consumption needs of the consumers, and the target markets
• Through the production of different SKUs, Cafe Xaragua has also increased the trial rate
• Different SKUs have also helped Cafe Xaragua improve its product accessibility

2.2. Price

Cafe Xaragua marketing mix focuses on a hybrid strategy for pricing to obtain maximum value for its products. The marketing mix Cafe Xaragua uses a combination of a number of techniques for pricing its products, which are detailed below:

2.2.1. Premium pricing

• By using premium pricing for some of its product ranges, Cafe Xaragua encourages favorable brand and product perceptions in target consumer groups
• Premium pricing for products also encourages a favorable quality perception of Cafe Xaragua products amongst consumers
• With premium prices, Cafe Xaragua has successfully also made some of its product ranges exclusive by restricting sales and production. This, in turn, leads to a perception g luxury in consumption products
• Premium prices add a touch of privilege and high value in Cafe Xaragua products
• Using elements of premium prices in other product ranges has also allowed Cafe Xaragua to maintain significantly high profits and a consistent business growth

2.2.2. Psychological pricing

• Since Cafe Xaragua has a number of different product ranges and product groups, the use of psychological pricing has been beneficial
• With the use of psychological pricing, Cafe Xaragua also successfully adds more value to its products from the point of view of customers
• Cafe Xaragua also gains higher sales with psychological pricing
• Consumer purchase a higher amount of Cafe Xaragua products because of its use of psychological pricing
• Cafe Xaragua is able to increase its target audience and broaden its target purchaser groups

2.2.3. Geographical pricing

• Cafe Xaragua is able to penetrate different regional markets optimally with the use of geographical pricing
• For offshore locations, geographical pricing also allows Cafe Xaragua to cover shipping and customs expenses
• Geographical pricing also allows Cafe Xaragua to maintain consistent revenue growth by altering pricing in different markets based on local currency value

2.2.4. Bundle pricing

• For some product ranges, Cafe Xaragua is also known to use bundle pricing strategy popularly
• Cafe Xaragua also uses bundle pricing during sales
• Bundle pricing increases the trial rate for consumers
• Cafe Xaragua experiences higher return on the cost of gaining a new customer
• With bundle pricing, Cafe Xaragua is also able to control costs and prices by lowering marketing and distribution expenses
• The use of bundle pricing also adds value to the umbrella brand name of Cafe Xaragua.

2.3. Placement

Cafe Xaragua places high importance on the placement of its products because it directly relates to accessibility for consumers.

2.3.1. Company-operated stored

• The company maintains stores operated by the management of Cafe Xaragua in all markets
• Company-operated stores give Cafe Xaragua higher control over operations as well as store layout and design
• Cafe Xaragua also interacts directly with the consumers and gathers important details regarding consumer behavior and consumer feedback through company-operated stores
• The company operated stores also give leverage to Cafe Xaragua in terms of decisions regarding the stocking of different product items

2.3.2. Licensed stores

• Cafe Xaragua licensed stores also allow consumers to enjoy the various product offerings by the company
• Licensed stores also decrease the risk of financial and physical investment for Cafe Xaragua in unstable markets
• Licensed stores have also given Cafe Xaragua high business growth, and a boost for rapid market expansion and penetration
• Through licensed stores, Cafe Xaragua has also learned about local consumers and cultures
• Licensed stores and shops encourage sales of products by Cafe Xaragua by aligning it with local cultural values
• Licensed stores also help Cafe Xaragua in localizing its product offerings to enhance brand equity and band image

2.3.3. E-commerce

• Cafe Xaragua has developed a successfully operational website for online order placement and order tracking
• Cafe Xaragua also encourages sales through social media portals, where the company takes orders through direct messages, as well as through a mini-shop model
• The company also stocks products with online retailers such as Amazon and eBay, as well as smaller local online retailers as well
• Online retailing, and using the internet to make sales has boosted the sales for Cafe Xaragua and has also increased the accessibility of its products for consumers.

2.3.4. Supermarkets and hypermarkets

• Cafe Xaragua also places its products in supermarkets and hypermarkets across the country
• A large number of Cafe Xaragua target groups shop from supermarkets and hypermarkets
• Placement in supermarkets and hypermarkets also improve cost efficiency for Cafe Xaragua

2.3.5. Partner agents

• In offshore locations, Cafe Xaragua also makes use of partner agents for its products’ placement
• These partner agents are assessed and evaluated on strategic compatibility and reliance
• Cafe Xaragua contracts with partner agents in other countries and markets for its product placement to ensure quality control and terms of negotiation

2.4. Promotion

The marketing strategy for Cafe Xaragua also places high importance on the promotional tactics and strategies used. The promotional strategies allow the Cafe Xaragua to interact with the consumers and influence them directly. Cafe Xaragua uses a 360-degree approach in its promotional activities, and makes use of the following means of promotion:

2.4.1. Digital marketing

• Cafe Xaragua has corporate profiles on all social media websites and portals
• Cafe Xaragua uses its social media presence to directly, engage with consumers
• This direct engagement and interaction allows Cafe Xaragua to understand the customers, their needs and demands
• Cafe Xaragua uses this feedback and incorporates it in its broader marketing and organizational strategy
• Cafe Xaragua also maintains a corporate website – which highlights company information, product information as well as information regarding any ongoing campaigns and sales

2.4.2. Reward Programs

• Cafe Xaragua has a loyalty card program for its customers
• The loyalty card allows customers to redeem points in exchange for products or other exciting gifts, as directed by the company
• Each purchase is entered into the loyalty card by Cafe Xaragua and is valued for points against the products’ monetary value
• The loyalty card can be purchased or is given complementary by Cafe Xaragua on high valued purchases
• Frequent usage and purchase of products by Cafe Xaragua also has rewards against the loyalty card

2.4.3. Community Influencers

• Cafe Xaragua makes use of community influencers as its on-ground promotional efforts
• Cafe Xaragua identifies strong and confident individuals to be brand ambassadors in their communities
• Cafe Xaragua provides these brand ambassadors and community influencers with its product range and invites them to use it themselves to see benefits

2.4.4. Conventional marketing

• The company places advertisements in consumer-related magazines. This largely includes home decor, and home management magazines
• Magazine ads are not very frequent, but appear twice every quarter of the fiscal year
• In high-density locations, Cafe Xaragua also makes use of out of house hoardings
• Hoardings increase visibility for Cafe Xaragua and also work towards building stronger brand recall
• Cafe Xaragua also produces TV advertisements
• All TV advertisements have an emotional appeal to them
• TV advertisements by Cafe Xaragua have progressed to include a slice of life elements and characteristics
• TV advertisements by Cafe Xaragua also highlight the functional benefits of the product

2.5. People

The marketing mix of Cafe Xaragua also places an essential focus on people development and people building. This is because Cafe Xaragua realizes the importance of employees in building strong customer relationships. Cafe Xaragua develops its employee and people by focusing on the following aspects:

2.5.1. Training

• Cafe Xaragua makes sure that all employees undergo regular training sessions for skill development and enhancement
• Trainings at Cafe Xaragua are not the only field related, but also focus on essential management and organizational skills
• Training sessions and activities at Cafe Xaragua also identify with the employee's own needs of progression, development and growth
• All training sessions and activities designed and carried out by Cafe Xaragua take into consideration business goals and objectives, as well as employee's personal goals and aspirations
• Cafe Xaragua, therefore, tries to develop the employee as an organizational member, as well as an individual
• All training is engaging, and hands-on so that employees do not only learn but also experience

2.5.2. Organizational ownership

• Cafe Xaragua works on strengthening the organizational commitment in its employees
• Cafe Xaragua builds employee loyalty so that people can reflect their optimal best at work
• Cafe Xaragua also understands that satisfied employees will lead to happy and satisfied customers
• Cafe Xaragua regularly shares different reward programs for employees, including stock sharing, so that their organizational commitment and ownership is enhanced
• Cafe Xaragua also includes employees in decision making at different managerial levels, and regularly takes their feedback for different projects and products – which also work towards building organizational ownership

2.5.3. Motivation building

• Cafe Xaragua employees are the face of the organization
• Cafe Xaragua are motivated through the exciting and creative organizational culture
• Employees are also motivated through different reward programs and bonuses that Cafe Xaragua distributes
• Another source of motivation is appreciation programs where management appreciates and acknowledges the work and performance of different employees

2.5.4. Succession planning

• Cafe Xaragua remains one of the leading players in the industry also because of its focus on succession planning
• Cafe Xaragua conducts succession planning for all managerial levels
• Succession planning is done through internal promotions as well as external recruitments to meet the needs and demands of the vacant job position at Cafe Xaragua
• Strategic succession planning has allowed Cafe Xaragua to be prepared for different challenges, and also be resourceful enough to deflect them

2.6. Process

Cafe Xaragua has organized and systematic processes in place to make sure that the business experiences consistent growth.

2.6.1. Operations

• All operations at Cafe Xaragua are clearly defined and communicated to the employees
• Cafe Xaragua makes sure that employees are well trained, and knowledgeable of all processes relates to operations
• All stages of operational processes focus on maintaining a high quality level and standard of the products
• Systematic process re in place for all operation – from procurement to the final sale of the products
• All operational processes are maintained, checked, and uploaded through the internal portal of the organization for supervisory purposes
• The use of online portals for operational processes also builds a strong backup for managerial purposes at Cafe Xaragua

2.6.2. People Management

• Cafe Xaragua has also defined clear processes for people management through streamlining its human resource management department
• Cafe Xaragua has defined guidelines regarding recruitment, training, compensation management, and performance appraisal of employees
• All people related processes are not only communicated to the management and supervisors, but also to employees to create a sense of transparency, and an environment of trust
• Progressive people management systems and processes have allowed Cafe Xaragua to keep its workforce motivated and happy – which reflects in satisfied customers

2.6.3. Quality maintenance

• Cafe Xaragua also has defined policies and processes for managing and maintaining quality
• All products undergo triple quality checks to ensure that customers receive the best product
• In addition to quality checks at the production and distribution level, the management has also placed separate quality maintenance and quality check department
• The quality maintenance department has experts who make sure that not only the final product but also the processes involved in producing the product were infused with quality

2.6.4. Store management

• Cafe Xaragua manages store management through stringent and closely monitored policies and processes
• These processes relate to not only the floor and space design but also to the performance of the employees at the store
• The processes for store management also regularly monitor footfall and work on strategies to increase footfall through different tactics, and changes in the store design and store management
• The company also has a systematic process for customers who interact with the products and feel them before making the purchase
• The final sale at the store is also clearly defined – for the employees and the customers both
• Processes and policies are important for Cafe Xaragua for maintaining quality of the products, and for ensuring that the company does not experience any unnecessary expenses and costs

2.7. Physical evidence

The physical evidence is also important in the marketing strategy for Cafe Xaragua as it works towards influencing the consumers in favor of the brand and its offerings. The physical evidence for Cafe Xaragua include:

2.7.1. Store atmosphere

• The store design and management for Cafe Xaragua is exciting and creative
• The store atmosphere makes the customers feel relaxed and comfortable –so that they can interact with, and enjoy product offerings by Cafe Xaragua at ease
• The store design is also important for Cafe Xaragua because it controls the level and nature of experience and interaction that the customers have with the product and the brand
• With company-operated stores, it is easier for Cafe Xaragua to control and manage the store atmosphere to be able to positively influence customers and to be able to appeal to them emotionally

2.7.2. Packaging

• Cafe Xaragua has unique packaging, which is different from other players in the industry
• Cafe Xaragua also has a vibrant touché to its packaging, which is regularly changed in terms of colors and patterns
• The logo for the company is simple, and recognizable by the consumers easily
• The brand logo has also become a symbol of confidence, ambition, and aspiration for consumers who use products by Cafe Xaragua
• The packaging of the products is sophisticatedly done and matches the brand image developed and maintained by Cafe Xaragua

2.7.3. Website design

• The website design is simple and easy to use
• Cafe Xaragua has a customer friendly user interface which allows easy navigation and understanding of its various product offerings
• The corporate website of Cafe Xaragua also has the brand logo, and is packaged similarly to the products offered by the company
• The design patterns, and color change on the website with changes to the product packaging to match various campaign needs and sale offerings