LONG ANSWER QUESTION (800 words maximum):

Situation: You are working as a marketing consultant for a cafe (coffee shop) business in your home city. The cafe serves premium organic coffee and an extensive range of delicious bagels. The cafe has not yet determined who their target market is, although their current location is close to a university, so their customer base is largely young university students. As a starting point, you want to help the company refine their segmentation, targeting and positioning strategy.

Question: First, explain what the key segmentation bases and targeting strategies are (according to our course content), and provide examples. Next, explain the importance of positioning strategy to the cafe and create a perceptual map, identifying the current positioning of three competitors/cafes (of your choice, in your home city), and explain their positioning in the marketplace. Finally, provide detailed marketing recommendations (relating to their Product, Price, Promotion and Place) to the cafe on how they can position their business to stand out from competition.

Please note, your perceptual map should NOT use price and/or quality. Please ensure your answer is in your own words and uses academic referencing (in-text and reference list entry).