Professional Documents
Culture Documents
Individual Assignment
Caffeinated
Prepared by:
Executive Summary:...................................................................................................................................... 2
Organization:................................................................................................................................................. 2
Conclusion: .................................................................................................................................................. 12
1
Executive Summary:
Caffeinated is start up coffee importer from the worlds best coffee producing country. Companys
Company is introducing the different varieties of coffee brands in New Zealand market. Company
started to be expanding their business in Auckland, New Zealand. Caffeinated strengths are investors
and good exporters contact. Company is not planning to open any stores in the New Zealand market due
Organization:
Caffeinated is New Zealand based coffee importer from worlds leading coffee producing countries.
Caffeinated imports the high-quality coffee from different countries and supplies the cafes in New
Zealand. Currently, company is operated from the Auckland, New Zealand. Company major import from
Brazil, Indonesia, Vietnam, Ethiopia and India. Where the product price varies from upper low price to
high price and upper low quality to high quality. Business solutions to domestic coffee cafes in the New
Zealand region. The organization started in January 2016. Where company do have 30 employee size
with the annual revenue of NZ$200,000 for the last financial year.
2
Porters Five Forces:
In the last decade, New Zealand has grown to be a coffee loving country. Stats show that coffee import
has grown from $32million dollars to $50millions from the year 2000 to 2008 (Lewis, 2009). This has led
(Mindtool, 2017)
Caffeinated faces the lesser threat forces or new entry. In the Porters five forces, this force refers to the
negative effect of new players in the industry. Due to the following factors company has lesser threat of
new entrants.
3
High Investment for initial set up (weak force)
Company can rank 7/10 in this particular force. Due to these major facts company Caffeinated has weak
threat of new entry in the market. New Entrants cant compete with the Caffeinated due to the huge
investment, stocks and supply chain. However, new entrants can get the import and export license from
the government. Thus, Threat of New Entrants will be the major factor in the import of coffee business.
Caffeinated faces the weak force or bargaining power of suppliers. In this five forces analysis model,
suppliers have strong hold than the Caffeinated company. The following factors makes the company
Company can rank 3/10 in this particular force. Due to these two major facts Caffeinated has weaker
bargaining power. Due to the large exporters in the market makes company cant hold the price value to
Company has strong threat of substitutes in this industry. In the five forces analysis model, this force
makes a substitute goods or services. IN this scenario, following factors plays a important role
4
Low switching cost (strong power)
Company can rank 3/10 in this force. Due to the above factors company Caffeinated has strong power
on negative impact on the company. Consumers can easily shift to the prepacked coffee product like
beverages which can be easily available in the super markets and restaurants. The cost of moving from
Company has a strong bargaining power of consumers. Due to the different various types of coffee
brands in one umbrella. This force is based on the effect of the customers in the market. In caffeinated
In this force company can 7/10 in this force. Caffeinated sell their products only to business companies
like coffee shops, restaurants and super markets. Consumers need to maintain their quality of product
to their consumers due to this reason it is very difficult to switch from one supplier to another. This will
Competitive Rivalry:
As per the porters five forces, this force will find out the competitors in the market. Due to the following
5
Verities of brand (weaker force)
As per the above factors porters five forces will explain the very less number of coffee suppliers in the
market with variety of brands (low price range to high price range). This will be the added advantage for
the company. Due to the one more factor company face the moderate force i.e. low switching cost.
6
7
Positioning Mapping:
Caffeinated uses the positioning mapping because it is the easiest tool to analyze where it stands in the
market when it compared with its industry competitors. This graph shows where our company stands in
the market. How we can fill the other gaps and which areas company can develop?
Due to the positioning mapping company can be added the new product/service from their company to
fill the gaps or can release same type of products/service to compete against their competitor
High Quality
Harrisons
Coffee
John
Burton
Limited
Caffeinated
Havana
Cuba and
Coffee
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Low Quality
Further to the diagram, positioning mapping there are 2-axis i.e. x-axis starts from left side to right side.
whereas y-axis starts from bottom to top. Where X-axis explains the price value in the market where as
From analyzing this graph company can come out with the different product or services where it can fill
the gaps. Caffeinated company lies in the high price and high-quality area because imports coffee from
the worlds best countries like Brazil, Vietnam, Indonesia, Ethiopia and India. Where it chooses the low
price with high quality. When it compared with the Harrisons Coffee they have high quality and high
price range products. Where Havana Cuba Coffee was in leading high-quality coffee importers in 10
years back but at the present scenario company coffee is not good quality and the price is also low.
John Burton limited has high quality product with the less price range this will our main competitor in
the market. Even this company is established their market in New Zealand. This will be the minus factors
Positioning mapping are based on the buyers perception which is challenging. Company need to do
survey and collect the information. If the customers information is accurate then it is easy to do
mapping and can get the better result. If the customer data is not accurate then positioning will end up
in different place.
9
Strategic Marketing Grid:
y-axis
10
10 15
x-axis
10
Caffeinated is applying the cost leadership strategic marketing grid. Where company need to minimize
the cost of production and logistics cost to overcome from their competitor. due to the climatic
condition in the New Zealand, coffee cannot be grown. due to this particular purpose, New Zealand
need to import the coffee beans from different parts of the world where the countries well known for
the production. Where the Caffeinated supplys the domestic coffee shops, restaurants and super
markets in New Zealand. Best coffee producing countries in the world are South America countries like
Brazil, Peru, and Columbia (Go Coffee Go, n.d.). New Zealand will be the strategic location between the
South America and Asia. Where Caffeinated is also trying to export the product to Asian countries where
Company need to source the lesser price coffee beans with high quality. Where companys market
research team need to find the less price high quality coffee beans and lesser logistic expenses. At the
same time company can buy the coffee beans directly from farmers where it will increase the
profitability high to the organization. Even company need to tie up with the best logistic companies. At
the same time company, Maersk Line Shipping Company has been contacted and got into the contract
from the coffee growing countries to New Zealand and few other Asian countries.
In New Zealand importers coffee rate will be $34.79 per kilogram excluding the GST (Havana Coffee
Works, n.d.). As a new entrant to this industry it is little difficult to overcome from the present supplier
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in the market. Company came up with the two different strategies. If the suppliers purchasing the goods
more than 5 kilogram then Caffeinated will offer additional one kilogram for the free of cost.
Second strategy, most of the companies will deliver the product and payment need to settle down
immediately or the following week. Caffeinated will provide the credits to buy the products and
payments can be settle down in quarterly basis or once in 2 years. This will be the major impact on the
industry.
Company at the present scenario it is in the range of 10. Where once the company applies these
Conclusion:
caffeinated need to be change according to the taste of the consumers. Company need to be update in
the market. A complete study of that particular product or any decisions making by the company.
Company need to build the loyal customers base by providing the annual packages and quality products.
Company need to start doing research work on the New Zealand climate. Where can the coffee can be
grown and how artificial intelligence will work in this weather condition.
Company need to focus on diversifying the product range and need to focus on substitute products too.
By looking at the strategic marketing grid and positioning mapping company is well positioned and
competitors are not in the same phase which is the added advantage.
12
References
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ade6-bfbd13a3f4ab
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http://www.noted.co.nz/archive/listener-nz-2013/a-shot-at-coffee-growing/
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Supplier Power: As Caffeinated company has suppliers from major coffee producing countries
like Brazil, Vietnam, Indonesia, Ethiopia and India. Where the company do have different type of
coffees from low to high price range. Company is tied up with the large exporter in the market.
Where company can get the best price from different countries. Due to this supplier power is
stronger.
1. Competitive
2.
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