SEWCAFE'

Sewing better business together

MARKETING
MANAGEMENT
MIM ISEG 2021/2022

PRESENTED BY
EMMA LUCINI PAIONI 56402 MAGDALENA PFEFFEL 56717
FRANCISCO LIMA 48389 MIRIAM PRECLIK 56546
LEONOR SARMENTO 56719 RICCARDO DONATI 50552
SOFIA CANDIA 56712
 INDEX

Product offering 3
Value Proposition 5
Segmentation 7
Porter's five forces 9
Targeting strategy 11
Marketing-mix strategies 13
Critical success factor 19
 PAGE 3

PRODUCT
OFFERING
Based on the idea of circular economy and with the spirit of
counteracting the fast fashion movement we created the SewCafé. It is
exactly as it sounds: we’re upgrading a plain café by combining it with
the craft of sewing.

The basis for this service is a normal café. It is a place where one can
get coffee in the morning or have a small snack in the afternoon. A
place to hang out with friends, to study or go on a date. We will be
offering quality coffees, teas, fresh juices as well as cakes and snacks.

However, it does get more refined than that. The novel thing about
this café is that it is combined with a sewing service. The idea being
that people who have clothes that are worn out because they were
loved a little bit too much, or new clothes that don’t quite fit and need
to be altered, or people that just want to upgrade their wardrobe have
a place to go.

There are a few different options for visitors: the easiest one is to
bring your clothes, describe the problem that needs to be fixed and
hand it over to be done by the seamstress. However, for the “DIYers”
or just for people that are more engaged there is also the possibility to
bring their garments, take part in small, supervised classes and fix
their things themselves.
 PAGE 4

PRODUCT
OFFERING

The innovation of this service is achieved by incorporating a social

aspect. All the sewing will be done by retired/elderly people that are
hired by the Café. This might not sound ground-breaking at first, but
this not only helps elderly people earn some money, create a sense of
community but also allows craftsmen and -women to pass on their
skills to younger generations.

By allowing retired people to earn some money next to their pensions

this project aims to fight old age poverty. This problem is a very
contentious one in Portugal, and although we’ve seen a big
improvement in the reduction of old age poverty in the last years there
is still a lot of room for improvement. This project therefore ties in to
the sustainable development goal number 1 which is, as defined by the
United Nations, to have no poverty.

Further, by sharing skills and craftsmanship with younger generations

this project also works toward the SGD 4: quality education which is
described in detail as “promoting lifelong learning opportunities for
all”.

Finally, this Café also helps reduce inequalities, as defined by the SDG
10. In this case reducing generational inequalities by bridging young
and old as well as lessening the wealth inequalities in that age group.
 PAGE 5

VALUE PROPOSITION

SewCafé is a unique café. In other words, it is a wise Café. Wise because

it offers everything a Café is supposed to offer but it goes further than
that. First, the menu is filled with homemade recipes passed from
generation to generation and made with a lot of love and effort that can't
be found in another Café. Second, the service available- the sewing
service. These days, we are used to going to the store and buying pre-
made clothes and, most of the time, when some clothing piece is not
usable anymore or it needs alterations, most people don't know what to
do with them and they end up in the trash. In general, the younger
generations don't know how to sew and fix a little hole with a needle and
some string. So, this is the reason why we have a lot to learn with the
elders. In their time they made their clothes at home with the help of
their mothers and so on. Today, with climate change and the rising
notion that we should spend less and reuse more, these sewing skills
come very handily. If you want to be a step ahead and learn a new skill or
just fix a piece of clothing that you like or need, the SewCafé is the
perfect place for you.
Another asset that the SewCafé has that any other café doesn't have is
the wisdom and company of older people. From personal experience or
just general knowledge, everyone knows that with age comes experience
and wisdom, that is why younger people look up to their grandfathers
and grandmothers for life advice and a friendly shoulder. But as we know,
this kind of experience is not always available when we want and need it,
but in SewCafé, that is the only way you have! A friendly waiter with
always something useful to say to you. A special word that you needed to
listen to on that day.
 PAGE 6

VALUE PROPOSITION

To finish this value proposition, the most

relevant and important thing that the MISSION
SewCafé will offer to you is the people
and the human sharing experience. To create a meeting space where
These days, and after this very long young and old get together to
pandemic, the thing that everyone build relationships, collaborate
missed the most was human contact and and exchange knowledge about
just hanging out with their friends and handicraft.
family. In the SewCafé you will find just
that! A safe space where you can go with
your friends to chat or to study and just
be with each other. Or, if you need a
friendly face, you will definitely find a
very nice gentleman or lady that is very
interested in your company too. VISION
When everyone has nice intentions and
an open heart, the world is a better Fight loneliness and bring
place. In SewCafé you will find a home generations together.
away from home.
 PAGE 7

SEGMENTATION

In order to be a successful company, it’s fundamental to identify the target market.

Marketing starts with the segmentation process, that help us to identify customers our
company wants to serve. To outline the audience, it’s necessary to have a knowledge
about our consumers; for that we can use several ways to segment clients: geographic,
demographic, psychographic and behavioural segmentation.

Geographic
SewCafé is meant to open in
Lisbon, in Santos
neighbourhood. In this area
many university students live,
and it’s also close to the city
centre. We decided to offer a
place where students can
easily go to study in the
afternoon and having a snack,
but at the same it can be a
landmark for seniors.
Demographic
The demographic segmentation is
influenced by different variables, such
as age, life-cycle stage and
generations.
Our main focus will be university
students, the gap between 20-26
years old, belonging to generation Z
and Y. Moreover, people living alone in
their 30s, recently moved in the city
and looking for a place where you can
feel like at home.
SewCafé will welcome also elderly
people, who can enjoy the cozy
environment and authentic and
traditional recipes.
 PAGE 8

SEGMENTATION

Psychographic
The psychographic profiles of our potential clients according to the VALS
framework:
Thinkers are those people who value creativity and knowledge. With our
sewing offer we hope to attract people willing to learn a new useful hobby.
Believers asses communities, sharing and social bonds. In our Café they can
find a gathering point where intergenerational bonds can be created, and a
strong and long-lasting community is founded.
Makers estimate family bonds. SewCafé is the place for lonely people where
you can feel like in your grandma’s living room.

Behavioural
Behavioural segmentation allows to identify customers according to their needs,
benefits and usage rates, this depends on the target.
Our goal is to develop heavy product users, so our clients will be regulars and
establish a hard-core bond with the Café and the community.
 PAGE 9

PORTER'S FIVE
FORCES
To have a better understanding of our market segment, we can analyse
Porter’s 5 forces: threat of new entry, threat of substitutions, customers
bargaining power, suppliers bargaining power and segment rivalry.

THREAT OF NEW ENTRY

New entrants are not expected soon. The barriers to entry are mostly
infrastructure’s related, such as the building, mostly for the increasing
prices of renting in our neighbourhood, Santos, and because it has to be
big enough to fit all the activities. Our requirements are a kitchen with
proper ovens, a space with sewing machineries, a spot where people can
study and one more informal just to chit-chat.
Exit barriers are not particularly high, but we have to consider contracts
with suppliers and employees.

THREAT OF SUBSTITUTION

There are plenty of study-café in the area, but none of them offer the same
experience as we do. Traditional bars don’t create a stronger inter-generational
community and a sewing service, additional features of our Café concept.

CUSTOMERS BARGAINING POWER

Buyers are fundamental in order to create our innovative spirit. In the beginning,
their power will be high but as the company will grow and will be established in
the market with a strong fidelity-based customer, their power will dramatically
decrease.
 PAGE 10

PORTER'S FIVE
FORCES
SUPPLIERS BARGAINING POWER

Our suppliers have little to no power because our raw materials are
simple and basic products easily reachable. We can afford to have
different suppliers and choose the ones that give us the best quality-price
offers.

SEGMENT RIVALRY

Our idea is quite innovative so in our segment there are few Café like ours.
Nevertheless, in our neighbourhood Café Joyeux has just opened: in this bar you
can have a significant experience, employees have cognitive disabilities, with the
mission of “putting disability in the heart of cities and lives”.
 PAGE 11

TARGETING
STRATEGY
As a result of our segmentation analysis and Porter 5 forces study, we can
assert that SewCafé main targets should be: university students, digital
nomads, grandma missing youngsters, people interested in mending service
and elderly people. We created a persona that can perfectly fit each target.

University students
Name: Inês
Age: 21
Nationality: Portuguese
Description: Inês used to live with her parents in Coimbra
where she attended her bachelor. Now, she moved to
Lisbon to study her Master and she lives in Santos, where
she likes to hang out with her friends.
What is she looking for? She is tired of the busy libraries
and prefers to study in a café. SewCafé is the perfect spot to
study in an engaging and friendly environment.

Digital nomads
Name: Liam
Age: 28
Nationality: American
Description: Liam is a remote worker, originally from
Seattle, who always travel to different locations. Right now
is living in Lisbon and he usually works from some café or
co-working spaces.
What is he looking for? Liam needs a location with a
good and free WIFI connection and a quiete vibe.
 PAGE 12
Grandma missing youngsters
Name: Léon
Age: 31
Nationality: Belgian
Description: Léon is being abroad since he was 19, he
started with the university in London and now is working in a
firm and living in Lisbon. He loves his grandmother who
makes incredible cakes, but he sees her only a few times a
year.
What is he looking for? After being away since this long,
he’s really looking to find a cozy and familiar atmosphere,
where he can chat with his friends and eating delicious cake
like he did in his granny’s house.

People interested in our mending service

Name: Chloe
Age: 34
Nationality: Irish
Description: Chloe never learned how to mend, but
especially after the quarantine and having spent more time at
home, she wants to approach this new hobby.
What is she looking for? Our Café offers a sewing service,
where Chloe can learn how to handcraft from our team of
expert's seamstress.

Elderly people
Name: Pedro
Age: 67
Nationality: Portuguese
Description: Pedro is a widower, sometimes he is feeling a
bit lonely and left out from this new world. He is trying to
keep up with the times but it’s not easy.
What is he looking for? At SewCafé he can have a
confrontation with the younger generations, and at the same
time with old acquaintances. Pedro loved the cakes his wife
used to bake for him, and in our Café he can find the same
traditional recipes.
 PAGE 13

MARKETING-
MIX
PRODUCT
SewCafé mostly is a regular Café. We will offer everything that all the
other cafés do but with a unique complement, free sewing service. People
go to cafés to consume and socialize, in SewCafé they can do it as-well-as
in other cafés but also if they want the customers can have their clothes
sewed, or even learn how to do it. There's no counterpart on our service.
We do that to facilitate and help people, also by using only organic tissue
(eco-friendly). SewCafé makes people's day easier, and gives the chance
to improve people's knowledge while they do a common programme (go
to a Café). In addition, we will also offer a pleasant and comfortable space
to socialize, study and spend some time. In case of take away order we
only use cardboard cups, no plastic allowed on our establishment. Lastly,
we will also sell our own cloth articles on a small scale -for convenience
or as a memory- like socks, gloves, beanies and scarves.

PHYSICAL ENVIRONMENT

The physical environment is related to everything the customers see when

interacting with the business, the perception of the experience. Our space will be
large, comfortable, and ready to receive people for several hours. The
predominant colours will be dark green and brown to give a cosy atmosphere
without much visual contrast. it will be a design with a mix between vintage and
modern. We will have tables and sofas for clients to choose from if they want to
socialize, study or do other activities. To optimize the experience of our
customers we will provide free Wi-Fi and background music. Our employees will
wear a dark green uniform sewn by us. Customers will be able to rate and
comment on their experience on platforms like Zomato, which in return will not
only attract more customers but will also help us with areas for improvement.
 PAGE 14

MARKETING-
MIX
PROMOTION

This is the most common tool of marketing. Companies use promotional

activities to make people familiar with the product. We have several
strategies in mind for the promotion of our brand. Our means of
communication will be mostly digital due to the digital age trend. We will
have a website and an app that will work to publicize our physical space,
table reservations and presence in events, where our menu will also be
available and will notify people when the garment is ready in case of any
emergency from the customer or delays in sewing. Social networks are
where we will bet more our resources for promotion, we will use
Instagram and TikTok. To reach our older target customers we will also
publish advertisements in local newspapers and distribute flyers shortly
after opening the café. On Instagram, we will have a professional
business-oriented account. These accounts have more options than
normal accounts, we can check the number of views, likes and shares of
each post. Another very useful option in this type of profile is sponsored
posts, allowing us to target the desired audience and increase the
engagement of the post. Another way to expand our brand name through
Instagram would be through sharing events and giveaways. In Giveaways
we would raffle prizes like menus for two people with clothing
arrangements, in return to participate in the raffle was mandatory to
follow our profile @sewcafé, share in the story and by liking the giveaway
post. On the Tiktok account, we will share videos of cake and coffee
preparation and past events. We have high expectations for this strategy
as Tiktok's design allows it to reach a huge number of people and cooking
videos are very privileged in the app's algorithm. Taking into account that
our main customers are students, another part of our promotion will be
through partnerships with student unions and Erasmus Life Lisbon for
the organization of events.
 PAGE 15

MARKETING-
MIX
PRICE

Price being one of the most important strategies in the marketing mix, we
would want to stand out right away. The prices of our products would be
equal to the local competition. But, we would have the advantage of free
clothing sew, making the experience as a whole cheaper. Therefore,
customers would have an advantage in consuming at SewCafé. On our
menu, we have 4 categories (coffee, cakes, toasts and other drinks). The
size of the piece or the size of the arrangement offered depends on what
the customer consumes. We have 3 Sewing menus:
1- Coffee and a cake equal a sew of a small piece.
2- A toast and a drink allow the client to have a medium size sew.
3- A toast, a drink, and coffee the customers win a large size sew.
As we can check on the Menu.
The prices of our homemade clothes are:
• 5€ each pair of socks;
• 5€ each pair of gloves;
• 10€ each beanie;
• 10€ for each scarf.
In our pricing, we take advantage of the large margins already practised
by our competitors to cover the total costs of the sewing service. Both
variable costs, such as fabric and overtime for our workers, as well as
fixed costs such as space rent and salaries. We are expecting for our
extra free service to bring a high demand of our caffé in comparison to
the competitors and with that, cover all the costs related with the Sewing
service.
 PAGE 16

MARKETING-
MIX
 PAGE 17

MARKETING-
MIX
PLACE

The Place is where a company sells, produces, or distributes its products

and services. It's very important to choose wisely and strategically the
location of your activities according to your customer's basis. Therefore,
SewCafé will be in Santos. Having two universities and a lot of residencies,
this neighbourhood hosts a lot of students/foreign people and is centrally
located. We are thinking of expanding to other student areas in Lisbon
like Saldanha and Cidade Universitária. And maybe one day expand to
other countries. Our Café is only physical, taking into account that it is a
Coffee shop, but we are creating an App that will permit clients to make
previous tables reservations, and in case the clients need to leave for
some reason before their clothes are ready, they will receive an alert later
notifying when it’s done.

PEOPLE

To deliver the best customer service, it is important to hire people with the right
skills and knowledge for a specific job. That's why we choose two workers’ profiles.
Regarding the bar service, we opted for younger people because of their
efficiency. They work faster and have a better understanding of our client’s needs
and preferences. For the sewing service, we employed elder people not only to
fulfil the company's social responsibility to this age group (retired people that
can’t find a job) but also because they are the best ones for this specific job. We
need to hire an app developer, to develop the SewCafé App that will optimize our
service. Also, for a better promotion performance, we need to hire a digital
marketer to manage our App and our Social Media.
 PAGE 18

MARKETING-
MIX
PROCESS

The process is the way of delivering the products and services to the
customers. It’s about being consistent and efficient in the eyes of the
clients. To make this possible we conclude that it is necessary to have a
considerable number of sewing employees, to respond effectively to the
demand and don’t cause long waits (nobody wants to spend all day at a
coffee shop). The employees working in table and bar service will be on a
task rotation system to avoid repetitive operations and keep them more
motivated. Another strategy to maximize our profit without losing service
quality is to manage our employees’ shifts according to our expectations of
the number of customers. We will have more workers in our afternoon
schedule (1 pm - 8 pm) than in the morning (8 am - 1 pm). We will also have
more workers on Friday, Saturday and Sunday than on weekdays. We have
also designed another strategy to increase our efficiency and productivity.
We will apply a 10% commission bonus to the seamstresses for each
garment made and produced, and we will also apply a 5% bonus to
employees who sell the garments made. This is a management strategy that
has been applied in other markets and has proven time and again to
increase the productivity and motivation of employees.
 PAGE 19

CRITICAL SUCCESS
FACTORS

A SWOT analysis can give us a comprehensive overview of internal and

external factors that contribute to our success. To see the most
important internal factors, the SWOT visualizes the strengths and
weaknesses of our coffee store. Below these two categories you can also
have a look at external opportunities and threats.

SewCafé is an innovative idea providing customers with a great

experience. However, there are certain factors that are of utter
importance for the success of the café. After getting a good feeling for
the business by looking at the SWOT analysis, companies should define
critical success factors in more detail to exactly know what it takes to
reach a goal and what could prevent the company from reaching it.
Therefore, we identified the critical factors for the success of the sewing
café.
 PAGE 20

CRITICAL
SUCCESS
FACTORS
PERSONNEL

Since the SewCafé evolves around their

service team, the recruitment of the right
personnel is crucial. If the business is not
able to find enough retired people with the
right skillset who are willing to work again,
then the café will not be able to open.
Elderly people need to be in good health,
know how to sew and should either already
know some English or be willing to learn the
basics to also interact with international
students. This is a key factor for SewCafé to
succeed.

LOCATION

Another critical success factor is the location. In

Santos old and young people meet on a
common ground, the perfect place for our café.
However, we still have to find a specific shop or
store, where many people pass by and see our
café. Moreover, a bus or metro station should be
very close to our café, because the old and
young generations are usually the ones without
a car. Having a good location will boost our
performance. Opening a shop in a silent street
with bad public transport connection could be
fatal to our business.
 PAGE 21

CRITICAL
SUCCESS
FACTORS
DIVERSE MARKETING
In order for the SewCafé to be a prominent
place, we need the right marketing. Of course,
our focus will be fulfilling the Marketing Mix
the best way possible. The right advertising is
critical for opening a new Café, since a
completely new customer base needs to be
established. Advertisements should not only
be displayed on social media platforms, but
also on local magazines to reach both young
and old potential customers. This generation
Café attracts students as well as elders, so
many diverse channels should be used to
attract consumers.

LOYALTY
Once we’ve attracted new customers, we need to
keep them. Therefore, the Café has to satisfy
customer needs and demands. Innovative
continuous additions in our sewing services make
sure that customers can get a new and valuable
experience every time they come. The staff stays
the same and staff turnover should be minimized
to enable bonds between customer and staff.
Additionally, the Café can offer loyalty stamp cards
as an incentive for customers to come back. A core
customer base is vital to gain the necessary
financial means to expand the business.
 PAGE 22

CRITICAL
SUCCESS
FACTORS
HIGH QUALITY

Another way of ensuring that customers will come

back to the Café is offering the best quality
possible! The SewCafé brings generations together
and simultaneously offers great coffee, cakes and
sewing services. We care about the quality of our
coffee and sewing service and our staff is friendly
and open minded. This outstanding experience
increases positive word of mouth and good
reputation, which is a very critical success factor
for a new Café. Not only service quality is crucial,
but also the work environment is exceptional. We
offer our employees a workplace where they are
treated with respect and kindness. The café is
accessible for disabled and the workstations are
age appropriately designed. Our goal is to have
zero accidents on job site to ensure safety of staff.

COVID- 19 PANDEMIC

Nowadays, one of the most critical success factors is the

uncertain development of the pandemic. If a new
lockdown is declared the Café will suffer enormously.
Closing the Café right after opening would not give us
the chance to even cover the initial investment costs. An
uncertain future is one of the biggest threats, especially
with recent mutations of the Covid- 19 virus.
Management and staff are prepared to introduce online
sewing courses and set up a delivery service, but the
experience and main value proposition would be lost.
 MEET THE FOUNDERS

Emma Sofia Riccardo

Francisco
Miriam

Magdalena Leonor