BMAF003-20 Project: Analyzing Social Media's Impact on Cafe Nero Sales

This report, part of the BMAF003-20 Foundation Project, investigates the influence of social media on Cafe Nero's product sales from a customer perspective. The research employs a questionnaire-based data collection method with 20 respondents to gather primary data. The findings reveal that the majority of respondents believe social media increases Cafe Nero's sales, with direct customer interaction identified as a major benefit. The report examines the actions Cafe Nero can take to improve sales, such as creating valuable content and addressing customer issues. It also addresses potential challenges like negative publicity and unauthorized information. The analysis concludes that social media provides significant benefits for Cafe Nero, including enhanced brand awareness and improved customer engagement. The report references various academic sources to support its findings and provides a discussion on the crucial role of social media in business growth.

BMAF003-20
Foundation Project

Table of Contents
INTRODUCTION...........................................................................................................................1
DATA COLLECTION....................................................................................................................1
RESEARCH FINDINGS.................................................................................................................6
DISCUSSION AND CONCLUSION.............................................................................................8
REFERENCES................................................................................................................................9
.........................................................................................................................................................9

INTRODUCTION
The social media networking has become the most significant part of an business now a
days as it provide a platform to them for having a direct interaction with its customers and ways
to influence them for enhancing the product sales (Bai, Yao and Dou, 2015). This report is
based over determining the influence of social networking website over product sale from the
customer perspective. By performing secondary investigation over this it has been identified that
the Cafe Nero mainly maintain its social networking site in order to grab the attention of people.
But the major risk that social networking site have is that any negative comment over these sites
have a direct influence over the customer base as well as sales of Cafe Nero.
DATA COLLECTION
Data collection is basically refers to the process of gathering and arranging the data in
effective manner so that appropriate outcome can be extracted in order to accomplish the main
objective behind the investigation. There are 20 respondents for this study. The primary data will
be gathered with the help of questionnaire which is mentioned below:
Q1. According to you does the use of social media sites help in increasing the sales of Cafe
Nero?
a) Agree
b) Disagree
Q2. What benefit does Cafe Nero get by making use of social sites that help in enhancing sales?
a) Direct customer interaction
b) Increase in brand awareness
c) Easy to access customer responses
Q3. What are the several actions that Cafe Nero can take using social media sites for improving
its sales in marketplace?
a) Create valuable content
b) Discuss over consumer issues
c) Regularly upgrade information
1

Q4 As per your view point what are the basic challenges that Cafe Nero may face while
entering to social media platform?
a) Negative publicity
b) More competition
c) Unauthorized information may mislead
Q5 What strategies Cafe Nero can adopt for reducing the negative customer responses?
a) Listen to customer
b) Provide quick respond
c) Share positive experiences
Frequency table
Theme 1: The use of social media sites help in increasing the sales of Cafe Nero
Q1. According to you does the use of social media sites help in
increasing the sales of Cafe Nero?
Frequency
a) Agree 18
b) Disagree 2
2

Theme 2: Benefit Cafe Nero get by making use of social sites that help in enhancing sales
Q2. What benefit does Cafe Nero get by making use of social sites
that help in enhancing sales?
Frequency
a) Direct customer interaction 10
b) Increase in brand awareness 5
c) Easy to access customer responses 5
3
a) Agree b) Disagree
0
2
4
6
8
10
12
14
16
18
18
2
Frequency

Theme 3: The several actions that Cafe Nero can take using social media sites for improving
its sales in marketplace
Q3. What are the several actions that Cafe Nero can take using
social media sites for improving its sales in marketplace?
Frequency
a) Create valuable content 8
b) Discuss over consumer issues 8
c) Regularly upgrade information 4
4
a) Direct customer interaction
b) Increase in brand awareness
c) Easy to access customer responses
0
1
2
3
4
5
6
7
8
9
10
10
5 5
Frequency

Theme 4: The basic challenges that Cafe Nero may face while entering to social media
platform
Q4 As per your view point what are the basic challenges that Cafe
Nero may face while entering to social media platform?
Frequency
a) Negative publicity 8
b) More competition 4
c) Unauthorized information may mislead 8
5
a) Create valuable content
b) Discuss over consumer issues
c) Regularly upgrade information
0
1
2
3
4
5
6
7
8
8 8
4
Frequency

Theme 5: Strategies Cafe Nero can adopt for reducing the negative customer responses
Q5 What strategies Cafe Nero can adopt for reducing the negative
customer responses?
Frequency
a) Listen to customer 8
b) Provide quick response 8
c) Share positive experiences 4
6
a) Negative publicity
b) More competition
c) Unauthorized information may mislead
0
1
2
3
4
5
6
7
8
8
4
8
Frequency

RESEARCH FINDINGS
The data gathered through the questionnaire is required to be interpreted in order to
determine the actual outcome of study and its ability to accomplish the main goal of
investigation. The interpretation of above gathered investigation is mentioned below:
Theme 1: The use of social media sites help in increasing the sales of Cafe Nero
As per the information presented above it has been determined that 18 people are agree
with fact that social media site help in increasing the sales of Cafe Nero but 2 are disagree.
Hence it has been identified that majority of people are in favour of social media sites as it
provide a most effective medium to approach customers.
Theme 2: Benefit Cafe Nero get by making use of social sites that help in enhancing sales
According to the data presented it has been determined that 10 out of 20 respondents
said that direct customer interaction will be the major benefit, while 5 said it help in increasing
brand awareness, but 5 said easy access customer responses. Hence, majority of people are in
favour of direct customer interaction as social media provides a medium where people can access
information and interact much quickly.
Theme 3: The several actions that Cafe Nero can take using social media sites for improving
its sales in marketplace
7
a) Listen to customer
b) Provide quick response
c) Share positive experiences
0
1
2
3
4
5
6
7
8
8 8
4
Frequency

As per information presented about 8 out of 20 respondents said that using social media
site Cafe Nero must create valuable content, while 8 said discuss over consumer issues and 4
said regular information upgrade. From this it has been identified that using social media sites
Cafe Nero can create valuable content to present information and get the view of customers to
determine their issues and resolve them quickly.
Theme 4: The basic challenges that Cafe Nero may face while entering to social media
platform
From the information presented, it has been identified that 8 out of 20 respondents said
that cafe Nero will get a issue of negative publicity, while 4 said more competition will be major
challenges but 8 said that unauthorized information may mislead customers. Hence it has been
identified that the majority of people said that the unauthorized information from employees and
other may mislead the customers and may result into negative publicity
Theme 5: Strategies Cafe Nero can adopt for reducing the negative customer responses
As per the information presented 20 out of 8 respondents said that Cafe Nero must listen
to customers, while 8 said that it should provide quick response but 4 said that it share positive
experiences. From this it has been identified that Cafe Nero must listen to customer in term of
their issues and expectations they have and try to respond over it for keeping them negative
publicity away from affecting its brand image.
Hence from the above discussion it has been determine that the information gathered
through questionnaire contains the data that can prove the information gathered while literature
review. This is so because from primary information it has been identified social media is
beneficial for increasing sale of Cafe Nero whose evidence can be taken from literature review
where it has been identified that social media provide a platform where business and customers
can interact or resolve the issues by getting regular customer engagement.
Summary:-
From the above performed studies it has been determined that Cafe Nero become able to
determine that the social media platform provides several benefits to it in term of attracting
larger number of customers, enhancing level of satisfaction through developing better brand
image and making use of several benefits such as direct customer interaction, increase in brand
awareness and easy to access customer responses.
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DISCUSSION AND CONCLUSION
By performing this investigation it has been identified that social media platform plays a
crucial role within the growth and success of a business. This is because it help a business in
enhancing its brand awareness by approaching the larger number of customers and by involving
them with the help of two way communication where customer can respond over their issues and
can get feedback. In addition to this it also get identified that there are number of approaches that
an organisation can adopt in order to enhance its sales such as offering larger amount of
information which support in converting the loyal customers into a brand advocate by making
use of several strategies such as listening carefully, distancing the emotional self etc. Over this
the majority of people state that an organisation must try to listen and understand the actual
issues so that appropriate planning can be determine to overcome them. In addition to this an
organisation must also focuses toward providing quick respond to the issues that are being faced
by the customer so the negative responses can be reduced.
But despite of this there are number of challenges that an organisation have to face while
maintaining its operation at social networking sites which includes negative publicity that mainly
experienced due to negative comments from dissatisfied customers which also influence decision
of others. On the other side, social media platform brings up more competition to the businesses
by providing larger amount of information to the customers which support them to form up a
comparison among the available options. Despite of all this the majority of people believe that
the social media platform provide a medium of interaction to the business with its customers
which make it possible for them to enhance their level of performance and image in front of
marketplace by having a direct interaction.
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REFERENCES
Books & Journals
Bai, Y., Yao, Z. and Dou, Y. F., 2015. Effect of social commerce factors on user purchase
behavior: An empirical investigation from renren. com. International Journal of
Information Management, 35(5), pp.538-550.
Cheng, Y. H. and Ho, H. Y., 2015. Social influence's impact on reader perceptions of online
reviews. Journal of Business Research, 68(4), pp.883-887.
Hajli, M. N., 2014. A study of the impact of social media on consumers. International Journal of
Market Research, 56(3), pp.387-404.
Hajli, N., 2015. Social commerce constructs and consumer's intention to buy. International
Journal of Information Management, 35(2), pp.183-191.
Ioanăs, E. and Stoica, I., 2014. Social media and its impact on consumers behavior. International
Journal of Economic Practices and Theories, 4(2), pp.295-303.
Kumar, A. and et. al., 2016. From social to sale: The effects of firm-generated content in social
media on customer behavior. Journal of Marketing, 80(1), pp.7-25.
Xu, Z., Frankwick, G. L. and Ramirez, E., 2016. Effects of big data analytics and traditional
marketing analytics on new product success: A knowledge fusion perspective. Journal
of Business Research, 69(5), pp.1562-1566.
Paniagua, J. and Sapena, J., 2014. Business performance and social media: Love or hate?.
Business horizons, 57(6), pp.719-728.
Wang, Z. and Kim, H.G., 2017. Can social media marketing improve customer relationship
capabilities and firm performance? Dynamic capability perspective. Journal of
Interactive Marketing, 39, pp.15-26.
Hajli, M.N., 2014. A study of the impact of social media on consumers. International Journal of
Market Research, 56(3), pp.387-404.
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