Macro environmental Analysis

YuppieChef is a kitchen appliance and home appliance online retailer group which started in 2006 as e commerce company in South Africa and by the quality of its products it made a large and loyal customer base serving the best interests of its loyal customer base.

South Africa has been facing economic crisis for some time. The country’s Real GDP increased by 0.7 percent expected in 2019, down from 0.8 percent in 2018. This is due to the reduction in household spending due to the very high cost of fuel and the introduction of higher tariffs. Household items, on the other hand, have become increasingly important in modern life. In South Africa, the average household has five machines. Expansion of people, the advent of technology, growing purchasing power, and changing lifestyles are all important changes in market demand and in the conduct of household goods (Phonget al., 2020). Although the price and quality of home appliances in South Africa are low, they are expected to be among the fastest growing markets. In South Africa, challenges from water and energy use are still evident in many household appliances.

For products offered separately in South Africa, retail sales is always in control, especially in supermarkets. Most of Yuppie’s chef’s success can be attributed to commercial goals, according to Andrew. Retailers across the country were struggling with the e-commerce revolution, and the effect was widely recognized in side shops and supermarkets. South Africa has one of the largest percentage of supermarkets to the public, and almost all major retail companies are located in at least one of these stores. That was undoubtedly unsustainable, and the integration of a weak economy with the threat of online competition has put enough pressure on stores and networks to do worse. In sales, there will always be cycles, and we have been lucky enough to start expanding our store, where we can choose the best sites and avoid over-delivery.

Key Market Trends

People still trust the offline retail shops for buying home and kitchen appliances even though online stores are dominating the market slowly nowadays.. Standard in-store sales channels are associated with buyers who want to see and test equipment before making a final purchase choice.

Although the digital distribution system for home and kitchen appliances has a small market share, it is a fast-growing segment, due to the growing public awareness of new and simplified procurement platforms. Due to the rapid development of online retail sales, retailers are also trying to expand their e-commerce profile.

Role and influence of technology on the retail strategy

Yuppiechef has integrated technology in its retail strategy from the very first. Physical retail has always been popular in South Africa for businesses with a variety of products, especially in supermarkets. The basic principles of marketing in Yuppiechef’s huge success rate were clearly outlined (Reyneke and Barnardo, 2019). Distributors around the world have borne the brunt of the e-commerce disruption and impact especially on small retail stores. Yuppiechef however tried to offer the experience of the supermarket in an online mode.

The role of technology is really important because Yuppiechef was the first kitchen retail software which had focused on giving the users an online store experience. From marketing to the in-built stored each and everything was constructed online. Hence, the role of technology was really important for the company to be set up as the very base of the company was technology itself (Okiet al., 2021).

Competitive analysis

Banks, Takealot, DealDey, Jumia Nigeria, Konga, and 40home.co.za are the main competitors with Yuppiechef. Among their estimated 5.6K employees, they have raised an estimated 253.0 million. Yuppiechef’s revenue is ranked fifth among its top ten rivals. The top ten competitors all average 54.6M (McClatcheyet al., 2007). Yuppiechef employs 100 people and is ranked fifth among its top ten rivals. The top ten participants scored between 949 points.

Takealot is Juppiechef’s main rival. Takealot was founded in 2010 in Foreshore, Western Cape. Takealot, like Yuppiechef, is in the Consumer Appliances & Electronics industry. Takealot made $ 244 million more than Yuppiechef.

One of Yuppiechef’s biggest rivals is Banks. Banks were created in Cape Town, Western Cape, in 1939. Banks, such as Yuppiechef, are in the business of Consumer Appliances & Electronics. Banks receive $ 14 million more than Yuppiechef.

Influence of Economic Conditions

The coronavirus epidemic as well as the economic lockdown have had a profound effect on the commercial sector. Retail sales online increased during the closing period by about 40 percent. International estimates suggest that regional growth could reach 100 percent a year. This problem has had a major impact, as companies and customers who may not be on the online market for some time increase their use of ecommerce. Many omnichannel stores have seen tremendous growth, while online profits are paid in part by lowering the cost of customer service in physical stores and in the general retail industry.

Thus the omnichannel strategy of Yuppiechef experienced a positive sales boost and their online stores saw much more sales than before. The epidemic made everyone realise the importance of online stores and thus boosted sales altogether.

Influence of Political and Legal Conditions

Developments in policies leading to different economic transformation in EAC countries, including price cuts, direct imports and tax-free barriers, have contributed to the rise of FDIs. Private services, which received a large amount of investment, as well as the retail sector, which attracted foreign and foreign businesses, were the first winners (Rudansky-Kloppers, 2014). The political transformation not only attracted foreign traders to the region, but also encouraged local entrepreneurs to emerge. This meant attracting more competition for the local companies including YuppieChef.

African food production is still low. In other words, the movement of goods around the continent should be facilitated to reduce the shortage of supply. In such cases, retailers are tasked with producing products from different parts of the world and establishing a domestic competitive chain within the continent. However, with different regional economic blocks, prices and other legal barriers can be prevented from importing and exporting certain goods. Thus this meant the drafted policies were in a way encouraging for local businesses and online retailers.

Design and Layout: Exterior store design

The exterior design is based on the 3D modelling structure of the stores which have been constructed by VR technology. The company has created simple yet innovative design layouts of the stores externally so that the customers are attracted towards the physical stores.

Interior store design

The Interior store design is altogether a different concept.  The company’s department of design was brought in-house. The firm has achieved significant technological advances in both store-building processes and in-store customer experience (Jibrilet al., 2020).

The company staff has produced 3D models for the sites with great success. This assists in the planning of marketable items such as stock depth, budgets, marketing strategies, and stock replenishment. The firm has created VR-based models for the stores that anyone in the team can use to get the idea of ​​inspecting store buildings long before they are built.

Store layout

The company also made a bold choice regarding the store layout to build the mobile marketing software (POS) software at the beginning of the store building process. The designers have done this so that the company can serve their customers wherever they are in their stores, with no queues and fast service. Everything – from product information and order to pricing and stock availability – is available in real time everywhere since they built the same system with the online store. They can order non-stock items, process refunds or refunds, and assist customers with a variety of payment methods using our mobile POS. It is one of the first of its kind in South Africa, and the consumers have responded well.

Merchandise philosophy

Yuppiechefwas presented to the entire world as an online company with very small assets, no employees, and very low prices by starting this as an online company. They work hard as they go, and they learn what it takes to run a world-class online business. Traditional retail was not an option in the early years, due to the significant cost of running the store, as well as the negative perception of traditional retailers at the time(Reyneke and Barnardo, 2019). However, prioritizing high-profit audiences means that many of Yuppiechef’s customers were older and more inclined to shop online, reducing the company’s entry into the small market.

The Yuppiechef team has realized that the omnichannel system will offer more value to its customers by allowing them to view products online before making final purchases in-store(Kruger and Fourie, 2003). Alternatively, a customer can enter a store and try things out before ordering them online and bring them to his or her home without having to take them to supermarkets. Another advantage is that everything in the store has QR codes that consumers can scan with their smartphones to get user video and updates to help them make a decision. The first store was created in partnership with ARRCC, a leading in-house construction company that helped the Yuppiechef team choose to finish and create a unique style for the first store in Cape Town.

Yuppiechef is South Africa’s one of the leading kitchen appliances online retailers who are now following an omnichannel strategy to attract more customers to both their online and offline stores. They provide a wide range of home decore, essential appliances, kitchen items and appliances and even gardening tools. They are expanding their wide range of products everday.

Merchandise assortment-  Home decoration, Gardening items, Gifts, Kitchen Utensils, Kitchen Electronics

Merchandise category- Kitchen appliances and home appliances

Stock keeping units-

Types of merchandise-  From home designing items to essential home appliances and kitchen items

Customer service

Yuppiechef creates excellent customer care to focus on the company by incorporating its own cultural and cultural brand, recruiting people who still believe in branding and branding.

“The best firms can mature to the point where they build a culturally incredibly proud business – they are proud of the way they work, the way they are proud of the quality of their products, and all aspects of consumer experience. not just people who support customers because that’s their job (Beneke, 2010). “

Yuppiechefs’ strategy is to hire the best people and let them be the ones who represent the company. Do not expect their front-door staff to give you a written response. For example, Yuppiechef puts great satisfaction in inserting a handmade card saying thank you for everything you send delivery, but when you face the reality of the days when 1000 orders are shipped, no doubt the integrity is lost, and communication will be seen. Yuppiechef currently works with two full-time card artists, but will hire seven more in December just to meet the requirements.

Customers are accustomed to seeing “more marketing” coming to them through their screens, thanks to almost every company from social media these days. This is not to say that social media sites do not play a role in omni channel advertising. In short, increasing your online access requires more than just a momentary tweet or liking. Social networks are a great way for a company to give consumers a central location where they can share their ideas, discuss top topics, and discover new value for relevant products. Yuppiechef, South Africa’s digital kitchen shop – and the public – is an outstanding example of a company that has received good public administration, and as a result, has become one of the most popular brands in the country.

Yuppiechef’s customer-focused website is commended for having an online presence that opens up all the major social media platforms – as well as the lesser known ones – while maintaining the same voice, style and attitude as loyal and growing customers. With nearly 100,000 likes on Facebook, the potential to attract new buyers or new sellers exists in such a small market. The Best eCommerce Store for five consecutive years is a perfect example of efficient and honest consumer management in the online context, according to founders Paul Galatsis, Andrew Smith, and Shane Dryden, who see their company as a “customer support business happening in kitchen appliances.” which has made the largest eCommerce marketplace for five consecutive years a complete demonstration of customer management and practical reliability on Yuppiechef’s online products found in thousands of kitchens around the country despite the company having only one store located at headquarters.

Communications mix

Yuppiechef’s customers were delighted with a variety of reasons, including handwritten notes. The owners of Yuppiechef worked tirelessly to develop this product and promoted a sense of community. Using their content marketing strategy, they carefully selected a list of social media sites to engage with customers and build community. Their collaboration has been a success, as evidenced by their 76,000 Instagram users, 150,000 Facebook likes, and 26,000 followers on twitter(Reyneke and Barnardo, 2019).

Yuppiechef organised various events and experiences for people in online platforms showing the wide range of product assortment they have and what they plan to do in the future (Brownet al., 2004). They entirely demonstrated their heartfelt efforts for the company and how they wish to grow by serving its customers and creating a larger consumer base who would be able to trust them.

Online marketing

Online marketing is important because it allows to drive the customer base to the website and make them more interested. This helps to drive traffic to your company with the ability to identify specific routes. Various features can directly point clues.

The main channel of communication was Facebook, where they posted visual content of interesting and exciting dishes to attract customers to buy products and share content. In the form of informal chat Yuppiechef is famous for, Twitter has been used to chat with customers, answer questions, and thank customers(Reyneke and Barnardo, 2019). Yuppiechef staff have experimented with kitchen appliances and dishes and posted photos of the results on Instagram, giving fans a glimpse of the show in the game. To ensure the only production of high-quality recipes and photo content, the company established in-house staff. The visual content was a combination of highly selected videos promoted by Yuppiechef employees (including comedy clips such as “kettle boiler racing”) and clips made by consumers playing with the company’s products.

Public relations and publicity

Public relations and publicity was focused by Yuppiechef via their communication with customer and they did that by online means. They maintained a trustable bond with their customers. The Yuppiechef website provided another way to communicate with customers: it had a live chat window where consumers could talk, get quick feedback, and connect with the business, improve product trust and promote ecommerce travel.

Direct marketing

The only direct marketing that Yuppiechef performed was by Spatula which was an online publication. Spatula, the Yuppiechef online publication, was also introduced. Continuing to encourage and encourage participation in the dining group, the magazine included excellent food photos, personalized dishes from the test kitchen, easy-to-read articles, cooking styles, and location data for cooking courses. Every month, a newsletter was sent with a glance at Spatula’s latest story, details of new features and monthly offers, and an invitation to check out the website (Gogaet al., 2019).

Conclusion

The company still struggles to compete with the physical retail stores as it is new in the online industry. Moreover, by following the omnichannel strategy which the recent focus of YuppieChef is the company can level upto its competitors.