Caselet / ScenarioBrewing Success - The Rise of Vida e CafféIntroductionVida e Caffé, a South African coffee brand, is renowned for its excellent coffee, vibrant atmosphere and cheerful baristas. From its humble beginnings, the brand has expanded significantly, boasting 72 stores in South Africa, four in Mauritius, one in Angola and two in London, with plans for further expansion into Ghana, Botswana, Australia and the US.BackgroundThe story of Vida e Caffé begins with its founders, Rui Esteves and Brad Armitage, who were inspired by the fresh juice and coffee shop culture they encountered in London in the late 1990s. After an unsuccessful attempt to establish a smoothie and sandwich shop in Durban, they moved to Cape Town in 2001 and opened a European-style espresso bar named Vida e Caffé on Kloof Street. Their focus on high-quality espresso and a unique coffee shop experience quickly gained popularity, leading to the opening of eight stores across South Africa by 2006.Growth and LeadershipGrant Dutton, the managing director of Vida e Caffé, initially joined as a 40 percent joint venture partner with the opening of the third store. Recognising the brand's potential, Dutton and his investment partners bought the company from the founders. Under Dutton's leadership, the company expanded further, supported by a strong team of directors and key staff who were personally invested in the business's success.Employee EngagementA distinctive feature of Vida e Caffé's success is its focus on staff training and development.The company invests significant time in finding and training baristas, ensuring they have the right personalities and enthusiasm for the job. This approach not only creates a positive work environment but also fosters strong customer relationships. Vida e Caffé's unique staff culture, where new recruits are referred to as 'shoes' until they are 'worn in', exemplifies their commitment to comprehensive training and staff upliftment.Operational ExcellenceTo maintain high-quality standards, Vida e Caffé established a boutique roastery in Cape Town. Initially importing coffee from Portugal, it shifted to roasting its beans locally to improve quality and reduce costs. This strategic move allowed it to control the entire coffee production process, ensuring consistently excellent coffee.Branding and MarketingStrong branding and innovative marketing have been crucial to Vida e Caffé's success. The company employs a loyalty programme, publishes an in-house magazine and uses branded coffee cup sleeves to promote partner brands. Its expansion strategy includes opening stores in corporate environments, such as the Standard Bank head office in Johannesburg, which has proven to be a successful model.International ExpansionIn 2011, Vida e Caffé opened its first store in Angola, receiving an impressive response.Despite the challenges of doing business in Angola, such as customs and operational hurdles, the brand continues to explore opportunities for growth in Africa and beyond, partnering with master franchisees to mitigate risks.Innovation and Media PresenceVida e Caffé has garnered significant media attention and accolades for its stylish coffee shops and high-quality coffee. The brand continues to innovate, developing mobile applications to enhance customer experience and loyalty. Its bold branding, combined with consistently excellent coffee and friendly service, underscores its success.ConclusionVida e Caffe's journey from a single espresso bar to an international brand highlights the importance of innovation, quality and strong company culture. The founders' vision of providing excellent coffee in a vibrant atmosphere has been realised through careful attention to product quality, unique staff training and strategic expansion. As Vida e Caffé continues to grow, its focus on delivering an exceptional product and experience for both employees and customers will ensure its continued success in the competitive coffee industry.Adapted from: Vida e Caffe (n.d.), World Coffee Portal (2023) and Dall (2023).Use the caselet / scenario provided and YOUR OWN READING to answer the questions that follow. Please note that you are required to conduct your own secondary research to answer the questions effectively.Vida e Caffe's focus on customers distinguishes it from its competitors. Based on the additional research you have conducted, it is clear that the brand uses media and digital tools in an innovative way to enhance the customer experience, showcasing its forward-thinking approach.Given this scenario, answer the following questions:Vida e Caffe's focus on customers distinguishes it from its competitors. Based on the additional research you have conducted, it is clear that the brand uses media and digital tools in an innovative way to enhance the customer experience, showcasing its forward-thinking approach.Given this scenario, answer the following questions 1.1 to 1.5:QUESTION 1.1: (8 marks)Develop a story timeline that traces how Vida e Caffé has evolved its market positioning from 2001 to present day, incorporating: Critical turning points in their positioning strategy and any notable milestones for the organisation. Creativity is important. One mark will be awarded for each valuable timeline point provided. Marks will be deducted if no timeline is provided. (8 marks)QUESTION 1.2: (4 marks)Discuss how has Vida e Caffé effectively positioned itself in the market? Motivate your answer. (4 marks)QUESTION 1.3: (6 marks)Add three points of comparison with a current competitor in terms of positioning strategies.Provide evidence to support your answer. (6 marks)QUESTION 1.4: (6 marks)Analyse any three (3) key factors that have contributed to Vida e Caffé's success in both local and international markets. Discuss how these factors align with the principles of effective brand positioning. Please note two (2) marks will be allocated per factor supported with an explanation. No marks for theory. (6 marks)QUESTION 1.5: (6 marks)Propose three (3) additional strategies that Vida e Caffé could implement to further strengthen its market position in South Africa and ensure sustainable growth. Justify your recommendations. Please note one (1) mark will be awarded for naming the strategy and one(1) mark for justifying the recommendation. (6 marks)No marks for theory.QUESTION 2: (24 marks)Consider Vida e Caffé is launching a new premium coffee blend targeting health-conscious consumers. Design a comprehensive promotional mix strategy for this new product, keeping in mind Vida e Caffé's brand image and market position. Your strategy should include specific tactics for each component of the promotional mix and explain how these tactics will achieve the marketing objectives. Use the following headings to draft your answers.* Imagine you are a market analyst interviewing Vida e Caffé's marketing manager. Prepare a set of three questions that delve into the company's market position, target audience, and competitors in the premium coffee segment. Provide a rationale for each question, explaining what insights you aim to gain. (9 marks)* Promotional Mix ComponentsIdentify and briefly describe how Vida e Caffé can implement any five (5) selected components of the promotion mix that you have chosen in designing the strategy. (5 marks)c) Provide a discussion on how the selected promotional mix components will be integrated.Discuss how their synergy will achieve Vida e Caffé's marketing objectives for the new coffee blend."Marks will be awarded according to how innovative, workable and cohesive the suggested promotional mix plan is. The plans' compatibility with Vida e Caffé's brand values, market potential and efficiency in reaching and involving the target audience will all be taken into account. Make sure your explanations of how each promotional strategy helps the new premium coffee blend's marketing goals are complete and easy to understand. (10 marks)(24)QUESTION 3: (12 marks)Assume you are a part of Vida e Caffé's strategic planning team, evaluating the potential expansion into the Egyptian market. Conduct a SWOT analysis to assess the feasibility of this strategic move.a)Strengths (3 marks)* Weaknesses (3 marks)* Opportunities (3 marks)* Threats (3 marks)(12)One (1) mark per valid point.QUESTION 4: (9 marks)Vida e Caffé has successfully expanded its brand internationally, maintaining a strong market presence through strategic initiatives. Based on the above case study, discuss how Vida e Caffé's branding and marketing strategies have contributed to its growth and success. Use the following points to answer the question and support them with specific examples from the case study.* 4.1 By providing five (5) points, evaluate Vida e Caffé's marketing strategies and how these initiatives have enhanced customer engagement and loyalty. (5 marks)* 4.2 Impact of media and innovation: Assess the role of media attention and adoption of technology in Vida e Caffé's growth. (4 marks)(9)One (1) mark for each valid point.QUESTION 5: reference list