1.

Based on the segmentation variables, how is Beano’s Café now segmenting and
targeting the coffee market?

Beano’s target market is said to be young people. Because it sells new coffee products, most of
its daily customers are youth (people between 18 – 25 years old). Since they chose to serve
young people, its segmenting style/type falls under demographic segment. Demographic
segment consists of segments that are based on variables such as age, generation, etc. This
segment therefore applies to Beano’s Café since their target market is young people.
Beano’s Cafe is using undifferentiated marketing or mass marketing as their strategy in
targeting consumers because they ignore market segment differences and target the youth
market with particular offers. They also focused on what is common in the needs of consumers
rather than on what is different. Beano’s Café target their market by improving on their customer
service. In order to find out what consumers like and dislike about their café, they conducted
surveys. The surveys showed that customers disliked allowing private celebration to be held,
waiting to get a table at the café, food prices and the type of music played in the café. In the
other hand, customers liked the atmosphere, service, and quick response. Also, Beano’s Café
made actions to justify what customers disliked about them. For example, they increased the
number of tables and chairs in the crowded locations, reducing prices of popular products. By
doing so, it really shows that they want to meet the needs of their target market.

Bueno’s café differentiated itself from the competition through speed up serving process by
allocating one minute for taking orders, sven minutes to make the order, and a final one minute
to give the table bill. Also, bueno’s one ultimate advantage that nonbe of its competitors have is
the kitchen which allows them to serve a larger menu selection. Futhermore, it also allowed
bueno’s to discontinue using ready-made food and instead making every meal to order. This
enabled the cutomer’s to modify and customize their orders. These options amaze and attract
customers because they are not available in most cafes in the region. Moreover, Beano’s uses
ads to present unique offers to its customers every month, such as offering American coffee
with chocolate fudge. Also, they use vibrant orange color for advertising, in addition to being the
only local cafe that offers desserts, which is the most outstanding feature of the cafe, according
to 21 percent of the customers. Those offers Beano’s Cafe unique invention, and other cafes in
Egypt do not offer them. In addition, they placed creative art foam on top of the cappuccino
where customer can personalize their own creative design or dedication. Bueno’s significant
differentiation from its competitors it that they offer their please the consumers’ desires and
exceed their expectations.

2. Discuss how Beano’s positioned itself in the Egyptian local market. Also, explain how
Beano’s differentiated itself from the competition.
Beano’s positioned itself as an affordable, modern café with a lively, entertaining environment. It
offers its customers excellent quality of food (sandwiches, hot meals, and desserts) and
beverages (coffees, soft drinks, shakes, and infusion drinks) at an affordable price in a
convenient and relaxing place. The cafés have a distinctive layout and style through a
combination of contemporary design and warm colors that give them a pleasant atmosphere
and an environment characterized by simplicity, elegance, cleanliness, and modern design.
Beano’s Café is known as the place where young people can gather and enjoy an affordable
outing, listen to the latest music, and use wireless Internet.
Beano’s Café differentiated itself from its competitors through its kitchen. Instead of using
ready-made food, they make every food to order. This enables customers to modify their orders
creating new, customized products. Beano’s Café also differentiated itself from its competitors
through the creative art foam that is placed on the top of the cappuccino. Consumers can do it
themselves because of the manually operated machines. Unlike its competitors, Beano’s Café
offers a high level of personalization making them satisfy their consumers’ wants and exceed
their expectations.

3. What changed first, the Beano’s customer or the Beano’s Café experience? Explain your
response by discussing principles of market targeting.

The Beano’s Café experience changed first. Their marketing department conducted surveys in
their chains and it revealed what customers liked and disliked about Beano’s café. With this,
they make a new strategy that would improve their customer experience that would somehow
give more satisfaction to their customers. In the case of Beano’s, they evaluated the different
market segments and they considered the segment size and growth, segment structural
attractiveness, and the Café’s objectives and its resources. Beano’s café targeted the segment
which is more profitable for them. They targeted the segment which suits its skills and
resources. The objective of the café is to provide a good ambiance and service for its
customers. In their case, they effectively followed their objectives by providing good services.
They chose a segment in which they could create superior customer value and gain advantages
over its competitors. After evaluating the different segments, Beano’s café decided which and
how many segments it targets. At first, they use the undifferentiated marketing. Using this
strategy, they targeted the whole population of Egypt which is to serve coffee and provide a goo
ambiance for its customers. Next, they use the differentiated marketing. At this point, the
Beano’s decides to target several market segments and give different offerings for each.
Beano’s has a youth segment and a senior citizen segment. Each segment has different
preferences and tastes so Beano’s Café must provide services and create experiences that
would suit and satisfy the certain segment.

4. Briefly outline a marketing campaign targeting a new segment for Beano’s Café.
The Beano’s Café’s new segment will be the senior citizens. The segmentation is based on
demographics which is the age. The senior citizen segment represents higher socio-economic
class. Targeting this new segment will enable Beano’s Café to increase its market share.
In selecting the target market segment, Beano’s Café will be using differentiated marketing
because it will target several market segments and it will design separate offers for each. In
addition, Beano’s café should do research in order to know what its new target segment’s likes,
tastes and wants when it comes to beverages and cafes. This will also help in the company’s
differentiation and position.
At present, Beano’s Café’s majority customers are the youth representing around 70 percent of
its customers. Considering that Beano’s Café want to market the senior citizens as well while
maintaining the youth market, Beano’s Café will be positioned as a café for all ages, wherein all
kinds of people from all age brackets can enjoy the services Beano’s Café offers.
Furthermore, to differentiate itself from competitors, it must be able to provide services that can
cater specific needs of its new target market that are not present to other cafes in the place. An
example would be adding “backtrack day” where they will have a certain day or hour in a week
that they will play music of the older generation. Another one will also be by providing free
newspaper in an early morning. These strategies will therefore encourage the older folks to buy
and stay more often in the café. If this strategy ends up positively, it would yield better sales and
higher market share for Beano’s café.