Market Segmentation

For a proposed café in Addis Ababa, the potential market segments can be categorized based on customer
needs, preferences, demographics, and behaviors. These are some of the key segments to consider:

1. Young Professionals and Business Workers

 Description: This group comprises young office workers, business owners, and professionals
working in central business districts. They often seek convenient, quick, and affordable meals or
drinks during breaks or after work.
 Needs: Fast service, takeaway options, good coffee, and light meals (like sandwiches and salads)
that fit into their busy schedules.
 Marketing Approach: Provide combo deals, loyalty programs, and a relaxing environment for
quick breaks or casual meetings. Free Wi-Fi and a quiet area for working could also attract this
group.

2. Students

 Description: Addis Ababa is home to numerous universities and colleges, such as Addis Ababa
University and private institutions. Students are often looking for affordable meals and a social
atmosphere.
 Needs: Affordable snacks, light meals, coffee, free Wi-Fi, and comfortable seating for group
study sessions or socializing.
 Marketing Approach: Offer discounts or student meal deals, host events like quiz nights or
study groups, and maintain a youthful, lively environment with affordable pricing.

3. Tourists and Expatriates

 Description: As a growing tourist destination, Addis Ababa sees a mix of international visitors
and expatriates working for NGOs, embassies, and international organizations.
 Needs: A blend of local Ethiopian dishes and familiar international meals, alongside coffee
specialties. They also value good service, a clean environment, and cultural experiences such as
traditional coffee ceremonies.
 Marketing Approach: Offer a fusion menu combining Ethiopian and international cuisines,
emphasize the cultural aspect (e.g., traditional coffee ceremony), and market your café as a place
to experience local culture.

4. Middle- to Upper-Income Families

 Description: Affluent families living in areas like Bole, Kazanchis, or other well-established
residential neighborhoods. They look for a premium café experience with good food, beverages,
and a family-friendly atmosphere.
 Needs: A wide selection of food and beverages, including child-friendly options, a clean and
comfortable environment, and excellent customer service.
 Marketing Approach: Create a family-friendly menu, provide a cozy atmosphere, and consider
adding children's meals or activities.

5. Health-Conscious Consumers
  Description: A growing segment in Addis Ababa, health-conscious individuals are seeking
nutritious, organic, and low-calorie meal options.
 Needs: Fresh juices, salads, smoothies, vegetarian or vegan options, and healthy snacks. They
may also look for transparency in sourcing and food preparation.
 Marketing Approach: Highlight organic and fresh ingredients, partner with local suppliers to
ensure quality, and create a menu section dedicated to health-conscious meals.

6. Coffee Enthusiasts

 Description: Coffee has deep cultural significance in Ethiopia, and this group includes both local
coffee lovers and international visitors who want to experience Ethiopia's coffee culture.
 Needs: High-quality coffee (both traditional and modern styles), a relaxed setting, and
opportunities to experience Ethiopian coffee ceremonies.
 Marketing Approach: Focus on premium coffee, offer a variety of brewing methods (traditional
and espresso), and incorporate a traditional coffee ceremony to attract both locals and tourists.

7. Casual Diners and Walk-in Customers

 Description: This group includes locals and visitors who may not frequent the café regularly but
will stop by for casual meals or snacks. They value convenience, affordability, and good food.
 Needs: Quick service, reasonably priced meals, and popular snacks like sambusas, cakes, or
sandwiches.
 Marketing Approach: Provide quick, grab-and-go options, keep pricing competitive, and ensure
high-quality service for walk-in customers.

8. Event-Goers and Large Groups

 Description: Addis Ababa frequently hosts conferences, events, and large gatherings, attracting
groups of attendees looking for meal options before or after the event.
 Needs: Group-friendly seating arrangements, efficient service, and the ability to accommodate
large orders.
 Marketing Approach: Promote your café as a venue for events or large gatherings, offer group
discounts, and ensure you have sufficient staff to handle large crowds during busy times.

9. Digital Nomads and Remote Workers

 Description: With remote work becoming more common, especially among expatriates and local
freelancers, many are looking for quiet, comfortable spaces to work while enjoying good coffee
and meals.
 Needs: Free and reliable Wi-Fi, comfortable seating, access to outlets for charging devices, and a
relaxed environment.
 Marketing Approach: Position your café as a workspace-friendly venue with a calm
atmosphere, high-speed internet, and "working space" promotions (e.g., coffee + meal combos for
remote workers).

10. Local Families and Social Groups

  Description: Local families and groups of friends who want to socialize in a casual yet
comfortable setting. This group is more likely to visit during weekends or evenings for casual
outings.
 Needs: A cozy and family-friendly environment with a diverse menu that appeals to all age
groups.
 Marketing Approach: Provide meal deals for groups or families, host occasional family events
or gatherings, and create a friendly and comfortable atmosphere.

By identifying and targeting these market segments, your proposed café in Addis Ababa can effectively
position itself within the competitive landscape and attract a diverse range of customers.

Target markets
Given the strategic location of the proposed cafeteria near government offices, businesses,
academic institutions, and public facilities, the target market would be diverse, including a mix
of professionals, students, and the general public. The primary target segments would be:

1. Government Employees and Office Workers

 Demographics: Middle to upper-income professionals, aged 25-55, working in nearby

government buildings and corporate offices.
 Needs and Preferences: Quick and efficient service during breakfast and lunch hours,
affordable meal options, and a comfortable space for meetings or breaks. They may also
seek healthy food alternatives and good quality coffee.
 Marketing Approach: Offer corporate meal plans, loyalty programs, and convenient
take-out options for busy workers. Special promotions during peak hours (e.g., lunch
deals) could increase traffic.

2. Business Professionals and Executives

 Demographics: Entrepreneurs, corporate employees, and business executives from the

surrounding offices.
 Needs and Preferences: A blend of premium coffee, healthy meals, and a quiet,
professional atmosphere for meetings. They would likely seek a reliable and comfortable
place to work remotely or conduct informal business meetings.
 Marketing Approach: Provide a professional environment with free Wi-Fi, ample
seating, and meeting-friendly spaces. Promotions such as "business lunch specials" or
catering services for office meetings could attract this segment.

3. Students and Academic Staff

 Demographics: Students and faculty from nearby universities and academic institutions,
aged 18-35.
 Needs and Preferences: Affordable pricing, quick snacks, light meals, coffee, and a
social environment where they can study or relax with friends. They will also appreciate
free internet access and group seating arrangements.
  Marketing Approach: Offer student discounts, combo meals, and comfortable seating
for group studies. Creating a student-friendly ambiance with budget-friendly menus
would appeal to this segment.

4. Public Facility Users and Walk-in Customers

 Demographics: People visiting nearby public facilities, government offices, or passing

through the area, with varying incomes and ages.
 Needs and Preferences: These customers may be looking for a convenient place to grab
a quick coffee or light meal during errands. Fast service, clean spaces, and accessibility
are essential to this group.
 Marketing Approach: Focus on fast service and affordable takeaway options to cater to
walk-in customers. Clear signage and promotions targeting foot traffic from nearby
public facilities will help attract this market.

5. Local Residents

 Demographics: Families and individuals living in the surrounding neighborhoods, aged

25-60.
 Needs and Preferences: They may visit during weekends or evenings for casual dining,
socializing, or as a regular coffee spot. Family-friendly menus and a welcoming
atmosphere are crucial for attracting this group.
 Marketing Approach: Create family-friendly promotions and offer a relaxed,
comfortable dining experience. Weekend brunches or evening specials could appeal to
this market.

6. Health-Conscious Individuals

 Demographics: Health-conscious professionals and students seeking nutritious and

organic food options.
 Needs and Preferences: They will be looking for healthy, fresh options like salads,
smoothies, and plant-based meals.
 Marketing Approach: Feature healthy and organic menu options, with clear labeling of
nutritional content to attract this niche but growing market.

By targeting these specific segments, the proposed cafeteria can maximize its potential customer
base while catering to diverse needs. Tailoring marketing strategies and menu offerings to each
segment's preferences will help drive both daily traffic and long-term success.