Cafeteria Boutique Kafedaky

For my final blog post, I would like to analyze the innovative business idea of a Viña del Mar establishment called "Cafeteria Boutique Kafedaky".  The overall premise of the store is a mix between the typical sit-down cafe and the stylish women's clothing store.  They offer an assortment of foods and beverages, but also a wide array of attractive clothing options.  This combination is something like I have never seen in the United States.  Lascu's Marketing Principles book states, "Reference groups are defined as groups that serve as a point of reference for individuals in the process of shaping their attitudes and behavior."  I think the reference group that Cafeteria Kafedaky has kept in mind when designing their business is women, as most of their marketing decisions seem aimed at one specific gender.  I believe that the concept of joining a clothing store and café is clever and would appeal to many women.  When I brainstorm activities that women like to do together most, getting a cup of coffee and going shopping are definitely at the top of the list.  The fact that they can accomplish these two fun tasks in one place only makes it so much easier for the consumer.  Cafeteria Kafedaky is aware that the majority of their clients are going to be women and caters to this gender.  Their Facebook page and signs feature images and logos of attractive women shopping and drinking coffee.  There are no pictures of men, as they accept that this other reference group will not be as inclined to partake in these activities.  All of their branding choices have been made with women in mind.  By marketing so much to only one gender, the company is losing half of their potential clients, but are also making the 50% of the population that they do have, feel more welcomed and comfortable.  Although I have never seen a store such as this one in the United States, that does not mean that I do not think it would be effective there as well.  The gender is the reference group and there are certain qualities that remain prevalent in men and women, no matter the country.  One might worry that trying to succeed in 2 industries (clothing and restaurant) would be difficult, but it seems like this company is utilizing the combination to capitalize on both of the different products and services.  An innovative idea indeed.      
       

The Power of Futbol

Banco de Chile has decided to use the marketing strategy of sponsorship and is financially supporting the national futbol team.  Lascu's marketing principles book explains sponsorships: "Sponsorship marketing involves a company paying a fee to an event, person, or organization in ex- change for a direct association with that event, person, or organization".  In exchange for this financial support, Banco de Chile has created a valuable direct association with the all-mighty Chilean futbol team.  In order to capitalize on this partnership, the Bank has developed one of the most motivating advertisements that I have ever seen.  Here is the link if you have not watched it: http://www.youtube.com/watch?v=tmLmWiqSVS8
Selecting the heroic Chilean miners to deliver this message to the team and country proves very inspiring.  The commercial creates a connection between the two underdog stories of the Chilean national team and the trapped miners.  Even as a foreigner, I can honestly say that this commercial is effective in moving me and creating emotions within.  One can definitely feel the genuine power and passion in the miner's words.  It does a great job of "pumping up" the fans to stand behind their country's football team no matter what the odds are.  But what does this advertisement and sponsorship do for the Banco de Chile?  The stories of the Chilean futbol team and miners lie in the hearts of all Chileans and this association with the bank will definitely do great things for their brand.  Even if Banco de Chile is not the first thing that viewers will think of when they see this advertisement, the fact that they are the company that developed and brought the commercial to the public means that the Banco shares these same Chilean values.  Not too mention the millions of views that the video has gained on youtube.  Sponsorships are interesting because they might not seem effective initially, as the commercial barely even mentions the bank.  But in reality, the sponsorship shows the Chilean public that our company supports the team and shares the same values as all Chileans.  This is something that not all commercials can do effectively.    
   

Hostelity in the US

I have just returned from a trip to the south of Chile where I stayed in quite a few hostels.  I also stayed in hostels for my other trips to Buenos Aires and La Serena.  These are the first times that I have stayed in a hostel and before coming to Chile, I did not even know what the word meant.  As I look at my bills from my variety of vacations, I am realizing that these hostels are a fraction of the price of a hotel in the US.  It is the perfect form of lodging for a university student, such as myself.  I now wonder why hostels rarely exist in the US and why they are not a popular option for traveling within the country.  This is evidently a cultural difference and I think that it can be attributed to the role of status in the mind of the American cosumer.  Lascu's marketing principles book explains that "often, the products consumed convey messages about the consumer in the same way that language does."  Americans definitely take this to heart when making purchase decisions and like to appear of high status.  This past week at the hostel, I met quite a few people who planned on traveling for a few years.  Some were Australian and others were European, but none were from the United States.  American workers seem to receive the least amout of allowed vacation time when compared to other western nations.  This contributes to why American vacations tend to be shorter than individuals of other coutries.  When traveling for an extended period of time, such as a year, budgeting is an crucial aspect which makes the hostel a viable option.  On the contrary, I believe that since American usually take less frequent and shorter vacations, they can often be associated with massive consumption.  In the rare instance, that an American is on a break from work, they want to "live it up".  This means saving up for a nice hotel room and a fancy restaraunt.  The idea of sharing a room with complete strangers when on a vacation, troubles Americans and conflicts with their self-perception of status.  As the economy changes and budgeting becomes a priority for more Americans, I am curious to see if more hostels emerge within the nation.  As for now, the American mind set is that a night at the Marriot beats a week at a no name hostel.