Strategic Management Industry Project: Caffiend Revenue Strategies

This industry project focuses on the strategic management and revenue generation strategies for Caffiend, a cafe located in Petone, New Zealand. The study begins with an executive summary that highlights the economic and technological landscape of New Zealand, emphasizing the opportunities for small and medium-sized businesses. It identifies the need for Caffiend to adapt to technological advancements, particularly in online ordering, to remain competitive. The project includes an introduction to the coffee industry background in New Zealand, the organization's background, and the scope of the project. The project's scope involves analyzing the challenges faced by Caffiend, such as the lack of a dedicated website and mobile app for online orders, and the need to reduce reliance on third-party vendors. The project undertakes a literature review, discussing relevant concepts and research methodologies. The project also includes primary research, such as a customer survey, to understand customer preferences and demands, including the desire for home delivery and online ordering options. The project offers recommendations for both short-term and long-term strategies to enhance revenue streams, such as developing a website and mobile application. The project concludes with a discussion of the findings, limitations, and ethical considerations, providing a comprehensive analysis of Caffiend's current business practices and future opportunities.

Running head: INDUSTRY PROJECT (STRATEGIC MANAGEMENT
Industry Project (Strategic Management)
Name of the Student
Name of the University
Author Note

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Executive Summary
The present study revolves around the proposed marketing strategies of the organization
Caffiend, Peton, New Zealand. New Zealand is economically and technologically developed as
well as the nation offers significant business opportunities for small and medium size
organizations. However, the firm Caffiend is not technologically developed and compared to
other firms, it might lose its market share. This study investigates the possible revenue streams
that Caffiend might use to make positive differences in the business. However, as the strategic
approach, it was important to learn the current market situations such as customer demands and
expectations. Thereby, an analysis among the customers of Caffiend has been conducted and it
was found that a large percentage of the customers want the service to be improved; such as the
customers want the service to be delivered at home. In addition, the customers mostly prefer to
place the order online through their Smartphone App.

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Table of Content
1.0 Introduction................................................................................................................................4
1.1 Industry Background.................................................................................................................5
1.2 Organization’s Background –Caffiend, Wellington, New Zealand...........................................7
2.0 Project Scope.............................................................................................................................8
2.1 Statement of Issues faced by the organization...........................................................................9
2.2 Catalyst....................................................................................................................................10
3.0 Literature Review...................................................................................................................10
3.1 Literature Topic one................................................................................................................19
3.3 Literature topic two..................................................................................................................24
3.4 Research Methodology............................................................................................................29
4. 0 Discussion...............................................................................................................................30
4.1 Introduction..............................................................................................................................30
4.2 Result point 1...........................................................................................................................30
4.2 Limitation assumption and ethical considerations-.................................................................45
5.0 Recommendations....................................................................................................................46
5. 1 Long-term Recommendation..................................................................................................46
5.2 Short-term Recommendation...................................................................................................47
References and Bibliography.........................................................................................................49
Appendices....................................................................................................................................60
Growth in New Zealand Coffee Sector.........................................................................................60
Questionnaire.................................................................................................................................61

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Topic- Strategic approaches for increasing the revenue streams for Caffiend, Petone, New
Zealand
1.0 Introduction
The following study is based on the existing business practice of café bars and other
organization in the section. The study investigates how the café in Wellington, New Zealand is
serving the customers. The study examines whether the café in Wellington is serving the
customers with the traditional practice of taking orders or they are using the websites to reach the
customers. Likewise, the study leans towards the solutions that Caffiend Wellington, New
Zealand could apply to generate more revenue. The purpose of the report is to gain an
understanding about how a business follows a current trend and applies it to the operation and
make profits. It is observed that business industry in each sector has become dynamic. The
organizations are in the rush of adopting innovation to the business. In such a dynamic
environment, technology plays a big role- it helps to change mode of operation, which is
observed in the case of Caffiend, Wellington, New Zealand. Caffiend is a beverage firm and it
started the operation with traditional practice of operation but due to the advancement of
technology, the organization adapts to the online platform. The following report provides a
critical analysis Caffiend with respect to possible income stream and revenue generation. In
order to conduct the analysis with the real world context, the report includes both an analysis of
previous studies and an analysis of primary data. Based on the analysis a suitable
recommendation has been provided in the following.

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1.1 Industry Background
It has been identified that people in New Zealand maintains a strong coffee culture,
which is reflected in their disposable income (NZD 28.3%). The disposable income here is one-
step behind Australia. Going forward, there is an increasing demand and trend of sustainable the
products that hold a social responsibility in world’s market but particularly in new Zealand such
trend certainly impact on how customers are selecting their coffee items. As put forward by
Noone, McGuire and Rohlfs (2011), there has been temporary slowdown in the coffee industry
of NZ because of the increase in international coffee price, but this fact does not affect the fresh
organic coffee, as it increases up to 12% with respect to value. Furthermore, the bars as well
restaurants contributed nearly $2,647 million to New Zealand economy in 2012. Moreover, the
economic status was stabilized with the increase rate of 3.2%pa in the last five years to 2007 but
at nearly 0.3% per year over the next five years (Hall & Rusher, 2013). This is because the
recession has caused customers to slash discretionary expenditure on entertainment.
Furthermore, the café bars and hospitality industry has much higher proportion of younger
workers than the national economy. Thus, due to the availability of workforce and the
technological base, the industry is rapidly growing. Fletcher et al., (2012) mentioned that driving
growth in employment in the sector could be increasing patronage in cafes. Nonetheless, it is
expected that the industry has been growing rapidly and many small and medium size
organizations coffee organizations are entering the industry due to low cost model of café
business. This increases the level of competitiveness in the market.

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Figure: Café industry ups and down
(Source: Fletcher et al., 2012)
Going forward, the food and beverage service sector remains as single biggest sector
across all tourism-related sectors of the visitor economy. Service skills New Zealand’s tourism,
travel and hospitality environment 2014 presents that a growing domestic demand as well as
increasing tourism base is considered to be lead a natural employment growth in the visitor
economy, especially in café, restaurants and other takeaway food sector. Hall & Rusher (2013)
mentioned that employment growth might exceed any other in New Zealand’s economy with the
projected growth of 43,700 employees or with the increase of 8.5%. The survey on the
Department of Employment signifies that the accommodation as well as food sector could
demonstrate a projected growth of 7.1% by November 2018 (Luo & Miln, 2014).

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Figure 2: top 20 sectors ranked by the projected growth to November 2017 in New Zealand
(Source: Choudhury & McIntosh, 2013)
1.2 Organization’s Background –Caffiend, Wellington, New Zealand
It is observed that Caffiend is an organization, which gains a tremendous popularity
within a short period; however, the organization has served its customers for more than a
hundred years. Caffiend has been able to gain attention due to its high quality of products.
Considering the needs of the customers, the owner, Luis had taken the café to a more enhanced
level in terms of high profit margin and high level of customer satisfaction. Inside the café, a
healthy work culture has been developed with limited number of staffs. The organization

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followed and implemented an open management style considering the goals of teamwork. Even,
sometime of the owner of the company is observed to be working with the front managers. The
organization has a large customer base due to the attractive location. The café is located near the
Wellington Institute of Technology, the institute has more than 6000 students and they crowd at
Caffiend.
2.0 Project Scope
The following project investigates how the café and beverage firms in Wellington, New
Zealand is serving their customers; this means the study finds out whether customers prefer to
purchase coffee visiting the outlet and or they prefer sending orders online. The study is
developed in such a manner that helps to develop the possible ways of generating revenue stream
for Caffiend Wellington, New Zealand. To meet the research goals and objectives, a primary
analysis has been conducted. In order to collect the primary data, both quantitative and
qualitative data collection techniques have been applied. Following the guidelines of quantitative
data collection, a survey has been conducted among the customers of Caffiend while
implementing the guidelines of qualitative method an interview has been conducted among the
organizational members of Caffiend.
Moreover, to conduct the survey and interview method, two different type of research
questionnaire has been formed- such as the close-ended questions for the survey and the open-
ended questions for the interview. In order to conduct the literature review, 40 different journals
have been selected that are conducted on the present topic of the study. Nonetheless, five
journals have been rejected due to the lack of relevancy, validity and reliability; the data
provided in those journals were not reliable. Besides these facts, the current study is limited to

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primary analysis, which means the research lacks a comparative analysis between two
organizations. In addition to this, the sample size for collecting data is very limited. The analysis
would have been more extensive, had the sample been extended.
2.1 Statement of Issues faced by the organization
Even though, Caffiend has a large customer base, the firm is facing certain issues in
terms of enhancing the level of services. New Zealand is technologically a developed nation and
people access to technology but Caffiend has yet not developed its own website to take orders. In
order to increase the sales margin, the café decided to take orders online as well but it has to rely
on www.menulog.co.nz, which is a third party vendor taking order from the customers on behalf
of many organization in the sector. Moreover, the organization has to spend a large amount of
money as the charges for using the website.
This is certainly affecting the organizational operation; nowadays people are more
attached to the technology- smart phone devices. However, Caffiend did not develop a smart-
phone app which would help the customers to order online. The customers will find it easy to
take their beverage items. In addition to this, in the era of smart-phone app, people do not follow
the traditional trend of ordering on calls. It is also observed that due to the stability in the
economy, people have more enhanced lifestyle and they do prefer to go out for beverage items;
instead, they would find an easy option to get their work done. Caffiend Wellington is trying to
create a strong awareness among the customers about their products and services. The firm is
determined to adopt the online system to penetrate in the large market. As the consequence, the
organization felt the need of diversification in the business by developing a website and mobile
application app for taking orders online.

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2.2 Catalyst
It is necessary for Caffiend to examine the issue and find a speedy solution, which would
increase the sales and customer base. Hence, the investigation is necessary because technology is
the only thing now that is rapidly evolving. Besides the large firms, many small and medium size
organizations have started adopting the technology in their operation to have more control over
the operation. Due to the adoption of technology, the level of competition is high in each sector
and the organizations are rushing towards the innovation. In such a context, Caffiend will lag
behind if it does not go with the flow. The organization has a large customer base, which enables
them to run the operation with traditional practice, but traditional practice remains as the threat to
the organization in the field of modern digital practice of operation. Thus, if the organization
does not wish to apply innovation to its business, it might have to lose its existing customer base.
Once the customers start visiting other nearby café bars, they might not come.
3.0 Literature Review
This section presents the facts and findings provided in the previous studies related to
generation of multiple revenue streams. The studies claim that most business models look for
ways to genera revenue stream. Nevertheless, this might not always be the standard technique in
restaurant business. Noone, McGuire and Rohlfs (2011) put emphasis on the fact that café bars
get bogged down trying to do best for a market that is less receptive than the anticipated. The
studies have mentioned that diversifying revenue stream is something that most small businesses
consider; though not all restaurants consider the same. Zott, Amit and Massa (2011) mentioned
that progress of the coffee segment, in which the consumers tend to look for more than coffee
from such brands and increased the range of competition from other fast services. A study
performed by Fletcher et al., (2012) mentioned that multiple revenue streams could be significant

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in any franchise because they provide a time effective way for an employer to reduce the risk and
allow an anticipated cash flow from different sources; instead of depending on a single and
conventional products and services. Furthermore, it has been observed that Tourism,
Hospitality as well as Recreation sector employs more than 2000,000 employees and creates
4.8% of NZ’s GDP. A study conducted by Poulston and Jenkins (2013), presented the fact that
such sector provides a large number of part time and lower-skilled jobs, meeting a significant
role for those working during their studies. The Hospitality sector in New Zealand has wide
spread geographic reach, especially, food and beverage includes everything from fine dining to
fast food franchisee, clubs and pubs. Schiff and Becken (2011) mentioned that food and beverage
services remains as the largest sub sector in hospitality industry, which generates $3.4 billion in
2015.
Figure 3: Growth in the sub-sector of Hospitality industry in New Zealand
(Source: Chen et al., 2015)
Expansion strategies of hospitality business

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When the business reaches the peak point, it has to develop or arrange an alternative
strategy to grow further and sustain the business. Especially, in hospitality sector, if the
customers embrace the quality of service, the business is usually considered to be sustainable in
the market. However, to remain active or keep this sustainability, the business must think of a
sustainable or expansion strategy. Kim and Mauborgne (2014) argued that when it comes to
expansion of strategy, the small business may find it difficult, as to make a competitive position
in the market, the small businesses have to offer specialized products, serve the regional or local
market first and provide an individual level of customer service. Supporting the above-
mentioned statement, Howard and Jaffee (2013) mentioned that large businesses have the
advantages in finance, purchasing marketing, which means small business certainly have to face
the difficulty of budget. Levy, Reinecke and Manning (2016) proposed some of the important
ways of expanding business in the coffee sector that are analyzed in the following.
Open up food cart in a new market: As discussed above, the small firm in the coffee
sector needs to serve the local market by providing them with a specialized product. As put
forward by Elder, Lister and Dauvergne (2014) the coffee shops mostly depend largely on
customer traffic as well as they are mostly located in areas with the most convenient access for
pedestrians. The major location for opening up a coffee shop usually include downtown, retail
centre, office building, college campus and shopping malls. An experimental study conducted
by Alejandra Gonzalez-Perez and Fernando Velez-Ocampo (2014) mentioned that it is always
effective for a coffee organization to select the crowded location. For example, if an organization
is located at the downturn of the city, to expand the service area or market, it can open up
another shop at University Campus establishing a food cart. To be more specific, it was
observed that the organization Coffee Club presently has 62 stores throughout New Zealand;

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however, at the initial stage, the firm first expanded its shop by establishing a coffee van near the
Victoria University of Wellington, New Zealand (coffeeclub.co.nz. 2017)
Target market: According to Jaramillo et al, (2011), to expand the business through a
food cart, the organization first needs to select a target market. Hence, the target market should
include a university campus or crowded downtown of a city.
Coffee van: As mentioned by Reinecke, Manning and Von Hagen (2012), it is always
effective for the small and medium size organizations to expand business on with a low budget.
Jaffee (2014) also mentioned that the organization should not make any large investment on the
first expansion of the business, because the risks exist due to poor understanding of the market.
Therefore, establishing a coffee van at the target market location is could be significant strategy
for the small and medium size firm. It is cost effective and attainable. For example, a small
coffee organization called Coffee Bella earned NZD$1920 (Dibellacoffee.co.nz. (2017).
Activities (Weekly Income) Cost and Profit and other variables
Investment $60,000
Cups per Day $120.00
Days per Week 5
Per Cup $4.00
Total $2,400
Less Costs Cost per cup $.80
Gross Profits $1,920
Table 1: Coffee Bella profit statement through coffee van
(Source: Dibellacoffee.co.nz. 2017)

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Expansion through Coffee Trailer: A study conducted by Murthy and Naidu (2012),
demonstrated that there are some small and medium size coffee organizations in New Zealand
are penetrating in the market through cost effective business strategies such as coffee trailer or
opening a shop at the front gate of a shopping mall. According to Mussatto et al., (2011) small
and medium size organizations earn revenue applying such strategies. In addition to this, coffee
trailer is movable, based on the crowd, the trailer can move from one place to another place. For
example, the firm Coffee Bella has been observed to be earning the profits by expanding the
service through coffee trailer (Refer to Appendix
Activities ( Weekly Income) Cost, profit and other variables
Investment $31,350
Cups per day 80
Days per Week 5
$ per cup $4.00
$1,600
Less cost per cup $0.80
$320
Gross Profit $1,280
Table 2: Coffee Bella profit statement through Coffee trailer
(Source: Dibellacoffee.co.nz. 2017)
Growth Strategy:
Increasing the number of stores: According to Matzler et al., 2013), many small and
medium size organizations have been observed to be concentrating on its footprint but they are
also changing its store mix. In this context, Ruben and Zuniga (2011) commented that the when

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the demand of the product or service in the market is high, coffee firms could concentrate on
drive-thrus in the outer edge of urban as well as sub-urban areas. Moreover, a study conducted
by Ferreira & Harrison (2012) presented the fact if the market is competitive, it is always
sensible to do something unique to maintain the growth of the business. For example, the large
coffee giant Starbucks is seen to be opening an express store, which necessarily functions as
work-thrus in the large cities. This is an inspiring strategy, which the small and medium size
organizations can apply to expand their business instead of opening more dine-in restaurants. In
this context, Line and Runyan (2012) mentioned that this strategy focuses on maximizing
organization’s store penetration.
Elevating the coffee experience- A study performed by Wiist (2011) mentioned that
expansion of store, diversification and other related elements could be effective for an
organization when the quality of the product is high or up to the standard. When the coffee sector
is all set to grow multi-fold in the next few years, the firms should pull all stops to position
themselves as the most preferred coffee shop. For example, the following picture shows a
glimpse of the Starbucks’ expanded store portfolio, providing highly customized and elevated
experience (Starbucks.co.nz, 2017). On the top of pyramid sits Roasteries, which is aimed at
premium customers such as reach of uber and coffee connoisseurs. The organization should look
for and coffee connoisseurs. As put forward by Elliott (2012) the organizations should look
forward to the potentially 10 Roasteries providing different sort of coffee experiences. The
organizations should look forward to open new stores particularly targeting the middle class
income group providing the premium Roastery experience but at the lower cost. Nonetheless, in
the implementation of all these strategies, the firms need to maintain a high quality of service.

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Figure 4: Starbucks’ strategy of elevating the coffee experience
(Source: Starbucks.co.nz, 2017)
Creating new customer Occasion: As put forward by Andreyeva, Chaloupka and
Brownell (2011) the lunch hours could be the fastest growing day-part type of service. Hence,
the organizations could concentrate on the type of items. Such sort of service can be done by
increasing the number of items in the food menu. As mentioned by Davis et al., (2013) this
strategy can be driven by enhanced food offering, more fresh food items with beverage.
Moreover, the organizations could launch new service like Nitro cold brew in each store of their
operation. All of these elements certainly help to aim at enticing a large number of customers to
its stores by providing new as well as innovative food and beverage options.

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Revenue growth Strategies:
Making investment in gifts cards and Tailored loyalty Schemes: As mentioned by Rosenblum,
(2015) while the effective loyalty schemes is not exclusive to coffee firms, the major brands in
the sector have generated revolutionary rewards programs that have increased the bar. The large
organizations like Costa Coffee, Starbucks have created this scheme that drives excellent
interaction from the consumers and enhances the range of service on offer (Mengistie, 2011).
According to Ou et al., (2011), the loyalty scheme needs to be built around an excellent mobile
experience, which certainly enables the customer experience to develop stairs and increase free
beverage. The coffee firms need to create an immersive scheme that drives interaction and
improves the customer experience. For example, Starbucks has successfully been able to
enhance its revenue to a staggering $2.65 billion with up to 22% of all sales (Starbucks.co.nz,
2017).
Select the right point- of Sale promotion: It is quite often that most of the retailers and shops
now days generate strategic promotions at the sales points with an opinion to optimize the
turnover as well as the bottom line range. As put forward by Ståhlberg, and Maila (2012) this
strategy could play a significant role on the principle of human psychology, with the impulse
purchasing related to a host of emotions involving sadness, anxiety and the mood. Hultman,
Katsikeas and Robson (2011) mentioned that these sorts of emotions often work or also remain
as the key drivers of consumer behavior, where it is observed that almost 82% of purchasing
decisions are apparently made in the store. The major objective of such strategy is to create
targeted promotions at the point-of-sale, where the market research plays a significant role at the
time of understanding the needs and behavior of each customer. Going forward, (Manzur et al.,
(2011) also mentioned that point-of sales items must boast the competitive pricing as well as a

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clearly defined value proposition; this is because, the consumers should not b discouraged from
making impulse decisions. Thus, this process ensures that the marketers could sell the point-of
sale items in volumes by maximizing the turnover and the profitability in the process.
Strategies of maximizing the income growth:
As mentioned by Tumanan and Lansangan (2012) the income growth is associated with the
strategies of increasing revenue, which means if an organization is able to maximize the revenue
growth, it might be able to increase the level of income growth:
Implementation of technology to the business: Basker, Klimek and Hoang Van (2012)
claims that technology has made it easier for the marketers to penetrate in the wide market and
once the business is able to reach the wide market, the source of income increases. This means,
to get in a wide market or increase the customer base, coffee shops could adopt social media,
which would help to reach the wide audiences. MacKenzie, Meyer and Noble (2013) backed the
strategy in their strategy by mentioning the fact that social media has a wide platform and
millions of people are regularly active on such platforms. Tu, Wang, and Chang (2012)
mentioned that when people know about the service, it is quite evident that they pay a visit.
Thereby, when the customers base is large, sales margin increases and when the sales margin
increases, the income level increases.
Simply the menu and eliminate low-margin items: As put forward by Wansink and Love
(2014), one of the significant things that undermines profitability is the lack of adequate level of
focus, because the brands look to diversify. However, this might cause the firms to lose sight of
their fundamental products and primary functions, while maximizing the cost bases as well as
cultivated margins. In addition to this, coffee shops tend to provide a relevant case in point, as

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while they have increased to provide a host of beverage, supplementary menu items and food,
the only product coffee that remains their potential drivers of the revenue. Thus, identifying this
strategy as the key item, as this starts the process of streamlining firm’s offering to customers as
well as creating more clearly described philosophy as well as menu proposition.
Multiple revenue streams:
As put forward by Kolk (2012), eliminating low margin items that neither support the
sales of coffee or reinforcing the image of the brand helps in this context, while this also reduces
the costs without having a detrimental influence on the profitability. Moreover, when it comes to
multiple revenue stream, the large and medium size coffee organizations like Monmouth Coffee
and Costa Coffee have seen to be sourcing their own coffee for more than three decades. By
paying visit to coffee cooperatives as well as continually sourcing new varietals, they effectively
developed the relationship, which leads to higher quality beans at the same time supporting “fair
and equal trade”. This has expanded a wholesale supply to other shops and through mail order.
Such opportunities enable marketers to find new sources for increasing their revenue.
3.1 Literature Topic one
Business perspective: Business model and revenue steam
According to Leung et al., (2013), in the last decade, the organizations started to realize
and observe that customers are interested in services but not the products. The recent trend
toward “everything as a service” referred to as hyper-digitalization, which is considered as one
of the major direction in the digital economy. This refers to an economy that is entirely based on
the digitalization of information and the respective information and communication platform.
Such type of economy consists of not only the technological elements but especially of business

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benefits and challenges. Hence, Eggert et al., (2014) mentioned that commercialization of
technology through a sustainable business model unleashes its latent economic potential.
Nonetheless, Stockdale, Ahmed and Scheepers (2012) mentioned that while organizations are
making a considerable amount of money in the underlying technology –be it for extensive factors
or to be capable of keeping up with the competitors, the revenue stream are neglected. The study
conducted by Hsu (2012) the revenue stream is referred to the money a company generates from
every consumer segment. In addition to this, the revenue model is blueprint that explains how
organizations generate value for itself by describing the sources of the revenue and mechanism to
create values for itself by describing the sources of the revenue as well as the process to generate
the revenue.
This particular definition insists on the fact that an organization could have multiple
revenue streams with variety of revenue generation mechanism. Hence, the revenue model is
considered as the key segment of a business model by several authors. The revenue is considered
as the hub with strong connection as well as interplays with other business models. Hence,
Bughin, Chui and Manyika (2013) commented that the core of the business model
conventionally contains the revenue model and the value proposition. It is also observed that
besides the revenue model and the value proposition, there are some business models developing
the blocks that involve the key resources, significant process, and the structure of the cost,
distribution as well as the customer relationship. This major interplay of business model
elements- “revenue model” occurs between the elements customer segments and distribution
channel, value proposition and the customer relationship.
Revenue streams of cloud-based platforms

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The study conducted by Galbraith‐Emami and Lobstein (2013, presents the business as
well as technological perspective are brought together and the authors have mentioned that with
the diffusion of the Internet, a large range of studies have been performed to enhance its
understanding of the mechanism to revenue models in the digital economy. More specifically,
based on the previous studies, it can be mentioned that the revenue streams already have been
analyzed with respect to digital content such as newspaper, magazine, digital music, electronic
commerce or online games. From the studies, it can be mentioned that as cloud computing is
certainly recent phenomenon, but only a little has been written regarding the revenue perspective
on cloud computing until now.
Thus, to identify the consistent patterns and relationship of primary as well as secondary
revenue stream of cloud-based platforms, a more descriptive qualitative content analysis was
performed. Thus, this research technique was selected, as it is very flexible as well as provides a
systematic approach of synthesizing a large set of data. The evidences from the prior cited
studies indicate that in the digital economy, the Internet especially assists multi-sided business
model and this clarifies that the revenue are made through interaction among many stakeholders
instead of through one to one transaction, which is the conventional way for physical products in
the real economy.
Conversely, it is also observed that cloud-platform providers receive a significant part of
the revenue from the customers. This significant portion is generated indirectly by claiming a
revenue share from developer of third party products and services. In addition to this
differentiation between the direct and indirect revenue stream, the frequency of revenue
generation could be useful discriminative criterion or the benchmark (Subashini & Kavitha
2011). However, the charges for an app or the add-on download are conventionally paid once,

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the smaller in amount but the consistent payments have derived considerable stand. An
increasing number of organizations are securing additional constant revenue by providing other
services like continuous training as well as certification with the core value proposition. Going
forward, the analysis of 25 cloud based platforms and detail literature review on revenue stream
with the context of digital economy, a different types of suitable revenue streams for Platform as
a service (PaaS) providers were derived (Marston et al., 2011). The previous studies
demonstrated that many revenue streams are treated as the sub-genres of a generic revenue steam
type. Furthermore, the relevant and suitable revenue stream types for cloud-based platforms
include transaction-based revenue, subscription and additional platforms services.
Actual utilized revenue stream of cloud-based platforms
When the value provided by the cloud-based platforms to the service consumers is
characteristically the on demand provision of a service, the value proposition toward the
technical users. As put forward by Zissis and Lekkas (2012) under the cloud computing
architecture, Platform as a service could be classified according to their value proposition to the
service provider. In addition to this, Xu (2012) mentioned that classification on the basis of the
value proposition is especially relevant as value proposition is at the heart of a business model
and it relates organization internal as well as external business model components. The
differentiation of Platforms was derived by analyzing the value proposition of 25 cloud-based
platforms. Hence, the evaluation of 25 platforms in respect with the major services that PaaS
service provider provides three different and distinguishable sub-class of Platform as a Service as
the service such as focus on the development, application-based integration and focus on the
distribution network.

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Focus on development: Platform based service provider’s major value proposition revolves
around on supporting the enhancement of application Google App Engine, Bungee Connect and
others.
Application-based integration: According to Gupta, Seetharaman and Raj (2013) major value
proposition is the integration of developed application into an existing SaaS solution. The
examples include SAP Business By Design and these can be integrated into their existing SaaS
Solutions.
Focus on the distribution channel- It has been identified that the distribution channel is the
most significant value offered service.
The organizations in the café industry could use this technology-based service and create
the ways of generating revenue. The studies claim that technology is certainly a significant
aspect of business that is rapidly growing. Thus, for generating revenue, the technology is a
significant medium that can be leveraged to generate expected outcome. In this context, Aljabre,
(2012) commented that in order to fill the gap between the current state with its shiftless use of
business model concept as well as the use of technology towards the next evolutionary phase, the
marketers and the information technology sector paid the attention to the cloud based system. In
this context, Gupta, Seetharaman and Raj (2013) commented that commercialization process of
emerging technologies should involve and consider social, technical, economical, political and
legal factors. Zissis and Lekkas (2012) mentioned that for a start-up organization or the middle
size organizations, the cloud based platforms providers are effective, where the firms could find
the option for generating the direct revenue.

24INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
3.3 Literature topic two
Apart from the technology, other possible ways that organizations in the café sector could follow
to generate revenue such as the personalized membership, best member recognition, repeat guest
rewards.
Value added services for generating revenue
To generate review, the small and medium size firms in the café industry could rely on
the loyalty cards and other value added services. In this context, Dhar and Varshney (2011)
commented that most of the regular customers prefer the benefits service both in digital mode
and traditional mode of businesses. The rewards should be given after revenues are generated.
The following are the preferred option for generating revenue from the operation.
Personalized Membership-This new trend in café empowers the existing customers or the
regular visitors of the café to personalize their own choice of items in accordance to their own
lifestyle. The organization could set the price for new membership based on what the particular
members could select. According to Hsu (2012) such trend could be treated as the carte
membership programs.
Take advantages of outside funding-As put forward by Bughin, Chui and Manyika (2013), the
small amount of outside funding can be applied to support a community’s vision as well as plans
that could help to increase local interest and commitment in the area and encourage private
investment.
Member recognition –Especially, in the café sector, the local residents mostly pay the visits on a
frequent basis (Hall & Rusher 2013). The customers who visit the café for more than a year,

25INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
they should be recognized providing them with additional facilities- such as they could buy all
products at 15% discounts throughout the year.
Coffee brand reporting
As put forward by Rotaris and Danielis (2011), the coffee sector is not a significant example of
varying extent of intensive analysis given in different sustainability report. Many organizations
accept the fact that a feasible feature for coffee enhancing remains as the significant materials are
for the sustainability of the service foundation. However, the level of extension in multiple action
plans might not remain same. For example, when some particular brands like Nestle and Keuring
show more realistic and significant approaches to the challenge of coffee growing sustainability,
other scenarios might be affected. Thus, it can be mentioned that sustainability initiatives also
contribute to the revenue generation. However, a study conducted by Eggert et al. (2014)
provides the ways for generating revenue.
Appealing storefront- An easiest way to obtain new customers is, making the coffee
shop attractive to people passing by. The customers of the coffee shop should ask the visitors
about the recent time and how they found the shop. This means that the customers could discover
the location by passing the physical location.

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Figure 1: How customer discover coffee shops
(Source: Eggert et al. 2014)
The above-mentioned graph helps to observe that if the coffee shops are not able to
attract the customers by developing or designing the storefront, they might lose significant
opportunities to increase customer base. In spite of the growing trend of sign-less storefronts,
several shops find them critical. As put forward by Hsu (2012) when it comes to storefront
design, signage could be a significant choice for implementation. This means it could help to
point the traffic towards the coffee shop whether it is downtown or the outskirt.
Free sample- As put forward Rotaris and Danielis (2011), if a shop has the opportunity to
have foot traffic outside the shop, it could get the opportunity of slowing the customers down

27INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
with the free sample which remains as the significant way to introduce the customers to new
products and services.
Visual appeal -As mentioned by Lindgaard et al. (2011), the first impression is
something that needs to be considered is the storefront. This means the visual appeal of the shop
could influence or steal the attention of the individuals who pass by the shop.
Word of Mouth Marketing
According to Rotaris and Danielis (2011) every customer that pays a visit to the coffee
shops, brings new marketing opportunity. This occurs because whenever a customer is satisfied
with the service of the coffee shop, she/he can refer others or bring others such as friends,
families and relatives. The study conducted by Li and Du (2011) mentioned that when the
customers were asked about the coffee shop, the significant way, the authors discovered was
friend recommendation. It is certain that average things might not inspire or impress people to
talk but they like telling other regarding an exceptionally good or bad experience of the service.
A study conducted by Ye et al., (2011) mentioned that an effective customer experience could
boil down to two separate aspects such as quality coffee and customer service. A coffee shop
needs to pay significant attention to the quality of coffee and the standard of customer service to
make customers pay a second visit. Here, the option for generating revenue is increasing the
customer base by developing the quality of products and the quality of service.
Social Media Community
As put forward by Ang (2011), social media certainly does not fall in the list of new
trends but it still has a strong influence on small and medium size organizations. Social media is
a wide platform and it could connect millions of people. The small and medium size

28INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
organizations have the opportunity to connect with or attract thousands of customers online,
which certainly increase the customer base. Some of the coffee shops and their customers use
Facebook, Instagram, Twitter but the coffee shops are widely absent from other large platforms
like YouTube and Snapchat. Millions of people are regularly active on Facebook, Twitter,
YouTube and other social networking sites and this certainly provides a significant opportunity
for making people aware of the brand, products and services (Lovejoy & Saxton, 2012). Such
platforms also provide the opportunity for promoting the brand in the international business
environment. When a brand is globally known, the customers certainly prefer to select that
brand. This means it is important to place the brand in the mind of people. If the awareness
increases, the possibility of customers and the profit margin also goes high. In addition to this, if
the organizations create a community page on the social networking sites, they can engage the
customers in their organizational activities such as positing pictures, information about the
products and service and other deals and offers. Checking out such information on a regular basis
could positively influence the buying habit of customers. As the consequence, the growing
engagement of customers could be reflected on the profit margins.

29INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
Figure 2: Social media habits
(Source: Lovejoy & Saxton, 2012)
3.4 Research Methodology
In order to conduct the research, both primary and secondary analysis has been
conducted. To collect the primary data for the analysis, quantitative data collection method has
been applied to the research. As put forward by Short et al., (2012), the quantitative data
collection methods have the base of mathematical data collection in different format. In the
present research, the techniques of quantitative data collection include questionnaire with the
close-ended questions. To collect the quantitative data a survey has been conducted among the
customers of Caffiend. In the survey, a set of close-ended questions have been directly provided
to the customers. Taking the consent of the customers, the questionnaire has been provided to the

30INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
visitors. After collecting the data, they are converted to the numerical digits and presented them
in the table and graph. Likewise, the analysis has been performed linking the data with the
findings found in the literature review. The respondents have been selected based on the
probability sampling technique.

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4. 0 Discussion
4.1 Introduction
This chapter of the study presents the data finding that have been collected by performing
a survey among the customers. For conducting the survey, a probability sampling method has
been used in the study. The population size for survey was 150 customers of coffee shops located
in Wellington, New Zealand. However, the responses of 100 customers have been considered in
the analysis. To conduct the analysis, first, the data has been converted to numerical digits and
then they are presented with the help of graphs and tables. Furthermore, to perform the analysis,
the data has been linked to the literature review.
4.2 Result point 1
1. What is your age?
Options Responses No. of Respondents Total responses
16yrs-24yrs 35 35% 100
25yrs-34yrs 31 31% 100
35yrs-45yrs 18 18% 100
46 yrs and above 16 16% 100
Table 1-Age of customers

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16yrs-24yrs 25yrs-34yrs 35yrs-45yrs 46 yrs and above
35%
31%
18% 16%
Age of customers
Graph 1: Age of customers
The above-mentioned data helps to observe almost 35% of the customers of Caffiend at
Petone fall under the age group of 16 years to 24 years. Likewise, almost 31% of the customers
fall under the age category of 25 years to 34 years. Almost 18% of the customers are in the group
of 35 years to 34 years and almost 16% of the customers are above 46 years.
Above-mentioned data set helps to observe that a large percentage of the customers are
the young coffee lovers who prefer to visit coffee shops on regular basis. This data set indicates
that Caffied finds a parameter for its target customers, which means the organization could
engage the young people in its target customer criteria. It was also studied in the literature review
that young people such as the high school and college goers, prefer to hang out and coffee often
becomes their first preferred option.
2. What is your gender?

33INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
Options Responses No. of Respondents Total responses
Male 61 61% 100
Female 39 39% 100
Table 2: Employee Gender
61%
39%
Employee Gender
Male Female
Graph 2: Employee Gender
The above-mentioned data helps to observe that almost 61% of the respondents are found to be
female whereas almost 39% of the customers are found to be male.
The data indicates that a large percentage of the customers are female; this is because females in
New Zealand have the tendency to follow and implement the recent trend. People in Petone,
New Zealand love the beverage items. The organization in café industry, besides the items for
male, the organizations could develop beverage items.
3. What is your ethnicity?

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Options Responses No. of Respondents Total responses
New
Zealand
European
19 24% 100
Maori 16 34% 100
Samoa 10 23% 100
Tongan 11 19% 100
Niuean 9 9% 100
Chinese 12 12% 100
Indian 14 14% 100
Other
(Please
specify)
9 9% 100
Table 3- Ethnicity of the customers of the Caffiend
New
Zealand
European
Maori Samoa Tongan Niuean Chinese Indian Other
(Please
specify)
24%
14%
23%
19%
9%
12%
34%
9%
Ethnicity of the customers of the Caffiend
Graph 3: Ethnicity of the customers of the Caffiend

35INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
The above-mentioned graph and table helps to observe that almost 24% of the respondents have
mentioned that they belong to New Zealand and some of them are European. Likewise, almost
14% of the respondents have mentioned that they belong to Maori, while almost 23% of the
respondents have mentioned that they are from Samoa. Almost 19% of the respondents have
mentioned that they are Tongan and almost 9% of the respondents of the customers are from
Niuean. Almost 12% of the respondents are Chinese; almost 34% of the customers’ ethnicity is
Indian. Lastly, almost 9% of the respondents are from other nations.
The data set makes it clear that people from different nations staying in New Zealand visit the
café. It was also studied in the literature review that the organizations in the fast food sector
needs to focus on customers’ ethnicity while developing the product category. While increasing
the list of products, it is necessary to focus on customers’ background. For example, a customer
from India might prefer a green tea with chocolate cake, which is usually famous in India. Such
broad categories of products certainly help to meet the needs of the customers irrespective of
their ethnicity and background.
4. How often do you visit a café?
Options Responses No. of Respondents Total responses
Daily 26 26% 100
Weekly 31 31% 100
Fortnight 22 22% 100
Monthly 21 21% 100
Table 4: Frequency of visit to café

36INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
Graph 4: Frequency of visit to café
The above-mentioned table indicates that almost 26% of the customers tend to have coffee on a
daily basis. Almost 31% of the respondents have mentioned that they have beverage items on a
weekly basis. Likewise, almost 22% of the respondents have mentioned that they prefer to visit
Caffiend in every fortnight. Almost 21% of the respondents have mentioned that they have
beverage items on a monthly basis.
The above mentioned data set helps to focus on the fact that a large percentage of the customers
tend to have beverage items on a regular basis. This scenario indicates that Caffiend has a large
customer base; it can maximize its revenue by developing the quality of products. It has been
identified that frequency of customers is very high and to retain this frequency, the organization
needs to pay attention to the quality of products and customer services. It was also studied in the
literature review that to retain the frequency of customers to the outlet, it is necessary to enhance
the standard of the products and services.
Everyday Weekly Fortnight Monthly
26%
31%
22% 21%
Frequency of visit to café

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5. How do you like to be informed about the special offers?
Options Responses No. of Respondents Total responses
Through e-mail 24 24% 100
Through S.M.S. 45 45% 100
Through Phone Calls 10 10% 100
By sending offers and
Phone calls
21 21% 100
Table 5- Ways to reach the customers
Through e-mail Through S.M.S. Through Phone Calls By sending offers and
Phone calls
24%
45%
10%
21%
Ways to reach the customers
Graph 5- Ways to reach the customers
The above-mentioned data set helps to observe that almost 24% of the customers have mentioned
that they would like to be informed through e-mails. A large percentage (45%) of the customers
prefers to be informed through SMS. Almost 10% of the customers prefer to be informed

38INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
through phone calls and almost 21% of the customers prefer to be informed by receiving offers
and phone calls.
It is clear that a large percentage of the customers prefer to be informed about the deal and offers
through messages. It was studied in the previous work that as New Zealand is technologically
developed and citizens since their earl age use mobile phone. The organizations could reach the
customers through SMS. On the other side, the customers might not receive the phone calls as
people have work and they do not receive unnecessary calls from unknown sources. Thereby, it
is wise to inform them through messages.
6. Which type of services you interest to receiving from us in future?
Options Responses No. of Respondents Total responses
Home Delivery 28 28% 100
Telephone Bookings 21 21% 100
Order through
websites
14 14% 100
Order through our
App
37 37% 100
Table 6: Type of services the employees want to receive

39INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
Home Delivery Telephone Bookings Order through websites Order through our App
28%
21%
14%
37%
Type of services the employees want to
receive
Graph 6: Type of services the employees want to receive
The above-data set helps to observe that almost 28% of the customers have mentioned that they
prefer home delivery services. Almost 21% the customers have mentioned that they will prefer a
telephone booking services. Likewise, 14% of the respondents have mentioned that they would
like to order through websites. Similarly, almost 37% of the respondents have mentioned that
they would like to order the service using mobile application.
The data set makes it clear that a large percentage of the customers prefer to order the
service through mobile application. It was studied in the literature review that New Zealand is
technologically developed and people have embraced the advancement in technology and people
have access to mobile network. Therefore, people have the tendency to carry their cell phone
wherever they go and hence, they could order their beverage item through their mobile app.
7. What do you prefer to have when you visit a café?

40INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
Options Responses No. of Respondents Total responses
Coffee 41 35% 100
Muffin, Scone or Cake 28 21% 100
Sandwiches or other
Savoury item
25 5% 100
Other, Please specify
(Tea, Chocolates, Ice
Cream)
6 22% 100
Table 7- Customer preference when in café
Graph 7- Customer preference when in café
The above-presented table helps to observe that almost 35% of the respondents have
mentioned that they usually prefer coffee, while almost 21% of the respondents have mentioned
Coffee Muffin, Scone or Cake Sandwiches or other
Savoury item Other, Please specify
35%
21%
5%
22%
Customer preference when in café

41INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
that they prefer muffin, scone or cake. Likewise, almost 5% of the respondents have mentioned
that they like to have sandwiches or other savioury items and 22% of the respondents have
mentioned that they prefer other related items.
The data presented above made it clear that almost an increasing percentage of the customers
prefer coffee among the beverage items, while some prefer Muffin and Cake. It was studied in
the literature review that the products should be designed based on customer background,
ethnicity, preferences and recent trends. It was also studied in the previous work that to meet the
customer needs, customer preferences should be a top priority in the product design.
8. What type of celebration do you celebrate with your friends and family?
Options Responses No. of Respondents Total responses
Birthday 40 40% 100
Anniversary 31 31% 100
Festivals 21 21% 100
Others 8 8% 100
Table 8- Type of celebration customers celebrate with their family

42INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
Birthday Anniversary Festivals Others
40%
31%
21%
8%
Type of celebration customers celebrate with
their family
Graph 8: Type of celebration customers celebrate with their family
It is observed that almost 40% of the respondents have mentioned that they usually celebrate
birthday, while almost 31% of the respondents have mentioned that they celebrate anniversary
events, whereas almost 21% of the respondents have mentioned that they celebrate festivals at
home.
The data set indicates that a large percentage of the people arrange birthday celebration at home,
which certainly remains as the opportunity for the café to design birthday cake. It was also
studied in the literature review, while designing the products, the regional trends and events
should be considered in the process.
9. How often do you order from a café for celebrating parties/get together?
Options Responses No. of Respondents Total responses
Once or twice a week 13 13% 100

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Fortnightly 20 20% 100
Monthly 40 40% 100
Almost never 27 27% 100
Table 9- Frequency of celebrating parties
Once or twice a week Fortnightly Monthly Almost never
13%
20%
40%
27%
Frequency of celebrating parties
Graph 9- Frequency of celebrating parties
The table mentioned above helps to observe that almost 13% of the respondents have
mentioned they order the products of café for celebrating events and parties once or twice in a
weak. Almost 20% of the respondents have mentioned that they do it fortnightly. Almost 40% of
the customers have mentioned that order the products for celebrating events on a monthly basis.
However, almost 27% of the customers have mentioned that they almost never order beverage
items from Caffiend for celebrating parties and events.

44INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
As studied in previous work, in the food and beverage sector, the products should be designed
and developed based on the demands, trends, customer preference and feedbacks. As in every
month , the people need the beverage items, the organizations should make the products remain
available.
10. Do you visit any other café? What do you like about them?
Options Responses No. of Respondents Total responses
Service 31 31% 100
Staff 22 22% 100
Taste 19 19% 100
Environmental of the
Café
28 28% 100
Table 10- Customer choice when they visit any other café
Service Staff Taste Environmental of the
Café
31%
22%
19%
28%
Customer choice when they visit any other
café
Graph 10: Customer choice when they visit any other café

45INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
The primary data set helps to observe that 31% of the customers have mentioned that when they
visit other café they usually prefer their services. Almost 22% of the respondents have mentioned
that they visit other café because they prefer their staff behaviors. Almost 19% of the
respondents have mentioned that they visit other café because they prefer the taste of the
beverage items. However, almost 28% of the respondents have mentioned that they visit the
shops because they prefer the environment of the café.
The above mentioned data indicates that data set the organizations should focus on related
aspects of the services such as environment of the café shop, employee behaviors, quality of the
products and the standard of services are equally important for the organization to create a
sustainable image in the market.
11. At Caffiend we celebrate occasions like Christmas, New Year’s Day, Valentine’s Day
and many more. Do you want us to inform about the café events?
Options Responses No. of Respondents Total responses
Yes, My email-address
is ___________
72 72% 100
No 28 28% 100
11. Event celebration at the café and customers’ interest for involvement

46INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
72%
28%
Event celebration at the café and customers’
interest for involvement
Yes No
11. Event celebration at the café and customers’ interest for involvement
The above-mentioned graph and table helps to observe that almost 72% of the respondents have
mentioned that they might order the beverage items for celebrating the events and parties while
almost 28% of the respondents have mentioned that they might not order.
It was studied in the literature review that an organization should try all possible ways to satisfy
the needs of the customers. Therefore, asking the customers for their preferred option is certainly
a significant opportunity for meeting the customer needs. This also enhances the quality of
services of the café.
4.2 Limitation assumption and ethical considerations-
The present study is limited to primary analysis only. The study lacks a secondary analysis such
as a thematic analysis, which would have increased the efficiency and relevancy of the research.

47INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
In addition to this, the population size is also limited in the present study; the large size of
sample would have increased the efficiency of the study.
5.0 Recommendations
The above mentioned data and findings indicate that the organization Caffiend has a strong
customer base due to the high quality of services. However, the customer service of the
organization is not in accordance with the expectation. The possible solutions to these issues are
discussed below.
5. 1 Long-term Recommendation
Implementation of technology- The organization Caffiend needs to take help from the social
media tools such as Facebook, YouTube and Twiiter. The social media is a large platform to
promote the products and services. Millions of people are involved in social networking sites.
The brand could create a community page, where they could update the information about the
products and services.
The firm could create a Facebook page, which should remain public for all visitors;
thereby, the visitors could see the posts of latest products, offers and deals and avail the service.
The firm should do it because social media is certainly a large platform and fast communication
medium; thus, any message, which the firm wants to convey, reaches quickly to the target
audience. Moreover, the target audiences of Caffiend are young adults who are college goers and
the professionals who usually visit the coffee shop with friends. These young adults and
professionals are regularly involved in the social media activities. Once they join the Facebook
page, they could see the updates of the services and based on the frequency of liking and sharing

48INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
the posts, the customers can be individual tracked. Likewise, that customer can be approached
with appropriate deals and offers. Hence, while sharing the posts, the firm must ensure that it
provides the details of the products and service in the content.
However, the offers and deals should be written in bold, so that it steal the attention of
the audiences and along with the details, the post must contain the graphical images. Along with
the content, all external links should be shared, so that the customers could visit the official
website of the firm for more details. Similarly, another social media tool like Twitter is also
useful for communicating with the target customers. Caffiend should create a profile on Twitter
and the marketing executives of the firm should run the profile on a daily basis. On every single,
the posts containing the details of the products should be shared on Twitter. Hence, the profile
must follow all regional celebrities and popular personalities. In addition to this, the video
sharing website YouTube is widely popular, where all young people created an account. As the
communication initiative, the firm could develop a video consisting of the contents of the
products and services. As per the regulation of YouTube, the video should be played with
another popular video.
5.2 Short-term Recommendation
The organization Caffiend needs to develop a website where the customers could order the
products online. In addition to this, as the smartphone apps are popular among the people, the
organization could develop a smart app, which needs to be user-friendly. The customers could
easily order the beverage items and receive their products on time. By implementing such
initiatives, the organization could access the large market or it could reach people located in the
remote areas. This will certainly helps the organization to increase their customer base.

49INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
Due to the technological development in New Zealand, all young and young adults use
Smartphone. Caffied should develop its own app where they could include all features and
functions associated with the list of the products, which should be there on the app. In fact, a
helpline number should be provided on the app, which could help the customers to reach the
shop for any query. In addition to this, app needs to be programmed in a way that it could be
supportive to all operating systems.

50INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
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61INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
Appendices
Growth in New Zealand Coffee Sector
New Zealand has a strong coffee culture reflected in their coffee per-capita expenditure of US$
37.3, just one spot behind Australia. New Zealand also has a strong base of specialty coffee
consumers; the specialist coffee shops market in 2014 was worth about US$ 375 million.
There is a growing trend of sustainable and socially responsible products in the world, but in
New Zealand this trend has a clear effect on how consumers are picking their coffee. Even
though there has been a slowdown in the coffee market growth in New Zealand due to the rise in
global coffee prices, fresh organic coffee has been the exception, as it grew 12% in terms of
value.
Also a recent survey by Colmar Brunton revealed that 88% of New Zealand consumers have
been influenced by sustainability in their purchase decision. This same trend has raised concerns
among consumers in the category of coffee pods due to the environmental impact of single-serve

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packs, making companies seek ecofriendly packaging. The response has come from companies
like Honest Coffee Company, which developed a pod made of starch and plant fibers that
decompose in 180 days.
As stated before, coffee shops deemed specialized in coffee have a great value. In addition, the
market has shown growth year by year, historically recovering from a minor decrease in 2011-
2012.
A trend seen in these outlets is a shift in their menus: before, this type of coffee shops offered
only casual foods and hot drinks; the market contraction has made them expand their offer to
dining options, competing directly with restaurants for the casual dining market. An example of
this trend is The Coffee Club: previously a coffee shop focused only on coffee culture, now has a
menu with a wide variety of meals and even a kids menu.
Questionnaire
Café Customer Survey
The Cafe “Caffiend” would like to increase its customer base and expand the range of
services it provides. We would appreciate if you would help us by answering these
questions and providing your suggestions and feedback.
Please put a tick in the box to choose your response.
1. What is your gender?
 Male
 Female
2. In which age group are you belonging to?
 Under 15yrs
 16yrs – 24yrs

63INDUSTRY PROJECT (STRATEGIC MANAGEMENT)
 25yrs – 34yrs
 35yrs – 45yrs
 46yrs and above
3. What is your ethnicity?
 New Zealand European
 Maori
 Samoa
 Tongan
 Niuean
 Chinese
 Indian
 Other (Please specify) …………………….
4. How often do you visit a Café?
 Daily
 Weekly
 Fortnight
 Monthly
5. What do you prefer to have when you visit a Café? (tick all that apply)
 Coffee
 Muffin, Scone or Cake
 Sandwiches or other savoury item
 Other, please specify: ______________
6. Which types of celebrations do you celebrate with your friends and family?
 Birthdays
 Anniversary
 Festivals
 Other
7. How often do you order from a cafe for celebrating parties / get-togethers?
 Once or twice a week
 Fortnightly
 Monthly
 Almost never
8. How do you like to be informed about special offers?
 Through e- mail
 Through S.M.S.
 Through Phone Calls