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MIP
33,1
2 Sabrina Rashid and Kamal Ghose
Received 19 October 2012
Accepted 30 October 2012
Marketing Intelligence & Planning
Vol. 33 No. 1, 2015
pp. 2-19
© Emerald Group Publishing Limited
0263-4503
DOI 10.1108/MIP-10-2013-003
Organisational culture and the
creation of brand identity: retail
food branding in new markets
Department of Marketing, Lincoln University, Christchurch, New Zealand
Abstract
Purpose – The purpose of this paper is to explore the relationship between organizational culture
and brand identity in the retail food and beverage industry and also to explore how independent retail
coffee shops and cafes build their brands. The evolution of coffee drinking in many new markets is
following a pattern similar to the one witnessed in New Zealand.
Design/methodology/approach – A qualitative approach using semi-structured interviews, field
notes, photographs and empirical material was carried out with 15 independent coffee shops and nine
franchise coffee shops in Christchurch, New Zealand. In total five different approaches were adopted to
provide diverse observations to compliment every angle of the research setting by using triangulation.
Findings – The findings from this research reveal that an appropriate brand name helps to ease
the process of brand identity creation. The personality of the market leader strongly influences
organizational culture, and a constant flow of updated business intelligence plays an important role in
creating a distinctive brand identity. Internal marketing and personal values are key to constructing
internal culture while the acculturation process plays an important role in developing internal culture
and building brand identity.
Research limitations/implications – Difficulty in getting participants was a major limitation
because many employees/owners declined to take part in the research due to the nature of their work
which required full attention to serve customers when the outlet is operating.
Originality/value – In previous years, research has focused on interaction between the organization
and their customers (Hoeffler, 2003). This study extends previous research by investigating the
internal culture of the organization and its relation to brand identity building within the organization.
Keywords Brand identity, Internal organizational culture, Franchise coffee shops (FCS),
Independent coffee shops (ICS), Brand acculturation model
Paper type Research paper
Introduction
Recent research into organizational culture and branding has broadened the scope for
researchers to explore these subjects further (e.g. Mosley, 2007). Designing the right
identity for a brand provides it with a personality for the consumers to relate to.
However, the process of creating brand identity is a long and windy road. A brand is
capable of communicating from the perspective of the organization as well as from the
perspective of the consumer ( Jevons et al., 2005). Taking the example of cafes and
coffee shops, this research based on Kapferer’s (1992) Brand Identity Prism
investigates the role of organizational culture and its influence on creation of brand
identity. The food and beverage industry has not been subjected to detailed
examination regarding brand identity building and its relationship to internal
organizational culture. This study will contribute to filling the void and learning’s from
this research would be useful for the rapidly growing retail food and beverage industry
in the emerging markets. According to Data monitor (2010) fast food consumption
around the world has reached a value of $239.7 billion transactions and emerging
nations all over the globe are facing a growing trend in fast food consumption.
Emerging markets and coffee producing countries will account for more than 50 per cent Retail food
of all the coffee consumed in the world by 2020. Usage in these countries currently makes branding in
up 42-43 per cent of total world consumption. As per Carlos Henrique Jorge Brando,
expert commentator on coffee habits around the globe and director of a Rio de Janeiro-
new markets
based research company, “about 85 per cent of the consumption increase between now
and 2020 will be coming from coffee producing countries and emerging markets”.
In previous years, research has focused on interaction between the organization and 3
their customers (Hoeffler, 2003). This study extends previous research by investigating
the internal culture of the organization and its relation to brand identity building within
the organization. This paper contributes to the existing literature in emerging markets
by linking brand identity to internal organizational culture. Results suggest that
visual imagery is one part of the process of presenting the identity of the brand to the
consuming public. To create and build a strong and distinctive brand identity in
the retail food sector it is essential to ensure that rituals engaged by every individual
in the organization add to the distinctiveness of an outlet’s identity. A well-articulated
organizational culture and rapid acculturation is essential for optimizing the quality
of the interaction between the brand identity building elements. Previous research in the
service industry has focused mainly on customers rather than owners/decision-making
managers of the business (e.g. Hogan et al., 2005; Parasuraman et al., 1991). While
customers are important in the business world, owners/decision-making managers are
equally important because they create the brand of the organization or business. In this
research we have used the word owner to include decision-making managers. Owners
play a key role(s) in creating the brand personality (Davies, 2008). Davies proposed that
a greater understanding of human resources practices internally may assist the owner
in managing the brand.
The owner of an organization, as the creator of the brand, designs a suitable brand
identity providing a focal point for consumers to relate to. The process of creating a
brand identity does not happen overnight and the nature of the brand contributes to the
timeline. After being launched in 1998, it took Google only three years to achieve 100
million searches per day (Vise, 2008, p. 98). Starbucks, in contrast, needed 16 years
to take the brand out of the USA (Starbucks’ web sites). Google and Starbucks differ in
many ways (e.g. their service concept for consumers) but both brands need to maintain
their identity to ensure that customers identify with them wherever they are.
We start by exploring the rapid rise of coffee intake in emerging markets. Historically,
China, India, the Middle East and Russia have not been known for consuming vast
quantities of coffee. This is rapidly changing and a spate of news articles in recent years
point to the continued growth of the specialty coffee segment as well as regional
enthusiasm for the expansion of coffee knowledge. According to Matt Michaelson,
marketing director for Beijing-based Arabica Roasters “Chinese per-capita coffee
consumption has been on the rise for the last 15 years or so”, and “the biggest
difference between now and 15 years ago is the sheer number of Western-style cafes in
China. Starting in first-tier cities like Beijing and Shanghai, and then expanding to nearby
cities, they’ve now begun to open in large numbers even in less-developed inland cities. The
rapid growth of coffee shop chains, along with the concurrent development of the western
food and beverage scene, is the main driver of Chinese coffee consumption”. Starbucks, for
example, opened its first store in China in 1999 and is planning to expand from 450 existing
mainland shops to 1,500 shops by the year 2015. 85°C, a Taiwanese chain that has 158
shops on the mainland, is aiming to expand to 1,000 shops within six years. Other chains
including Costa, Lavazza Espression and Pacific Coffee are looking to expand, as well.
MIP Nishant Gurjer, a well-known expert on Indian coffee trade and managing partner
33,1 of Kaapi Royale Coffee says “Now the cafe culture has become big in India. For many
years, India’s coffee consumption rate has remained stagnant at between 55,000
and 60,000 metric tons annually. But in the past six to eight years, in-country coffee
consumption has grown rapidly, and India now consumes more than 1,00,000 metric
tons per year”. Capitalizing on this trend, chains like Café Coffee Day, Starbucks, Gloria
4 Jean’s and Barista have announced plans to expand and are adding thousands of new
shops to India’s marketplace.
In countries such as Saudi Arabia, Turkey and Egypt, the male-dominated traditional
coffee houses continue to thrive, but now there has been significant growth in modern
coffee houses, particularly in the United Arab Emirates (UAE), Lebanon and Kuwait.
Alcohol is banned in most countries, or available only in select hotel restaurants. Cafes
have become socially oriented businesses that attract students and young people of
various ages, genders and cultural backgrounds. Kim Thompson, owner and director of
Raw Coffee Company, a boutique roastery that opened in 2007 in Dubai, UAE is of the
opinion that like in India and China the younger generation in the Middle East is fuelling
the change in venue. During Raw Coffee’s first two years of operation the business
appealed mainly to the expatriate community and those who purchased coffee to drink at
home. Now Emiratis are frequenting modern cafes - “particularly the young people who
have traveled or studied overseas, who are aware of ethically traded coffee and have
previously tried freshly roasted coffee and know the difference”. Thompson pegs the
interest in modern cafes on their social appeal, as well as on a government initiative in
the UAE to encourage Emiratis to launch small- and medium-sized enterprises. “Cafes
offer a modern, social and trendy option for a new business”, she says.
In Russia until about 20 years ago any form of coffee was considered a luxury
reserved for the elite and was far beyond the reach of average consumers. Today, half
of all coffee consumed is still soluble (instant) coffee, making it one of the biggest
markets for Nescafe in the world. The other half is a hodgepodge of commodity and
specialty coffees, whether ground or whole bean, that all fall under the label “natural
coffee”. Soluble and natural coffees combined trail far behind tea consumption, but
market research indicates and informal observation at local grocery stores confirms
that consumer interest in coffees, and more specifically in the upper-end segment, is
growing rapidly. Coffee chain giants like Shokoladnitsa and Coffee House have opened in
hundreds of locations, dominating the retail cafe landscape with Starbucks. Costa, McCafe
and others best known for “to-go” cups elsewhere. Despite having an appearance like
western coffee shops with the word кофе (coffee) prominently featured in brand names, a
typical Russian shop presently makes less than 5 per cent of its revenue from selling either
bean or beverage. Coffee culture in Russia has made progress by leaps and bounds in just
the past few years and seems positioned to continue its stratospheric growth. So quickly
is the concept of specialty coffee becoming popular in Russia that SCR was asked to
organize a large festival in the centre of historic Red Square in September 2011. Held each
year, the Spasskaya Tower Festival is a five-day military-marching band festival
celebrating cooperation and the unity of widely diverse cultures through music. For the
first time in the festival’s history, barista champions from seven countries – including
World Barista Champion Alejandro Mendez and US Barista Champion Pete
Licata – demonstrated their talents alongside the marching bands in the shadow of
the Kremlin. At the conclusion of the festival, over 12,000 drinks had been served to the
delight of a crowd of more than 42,000 and media from around the globe. The examples
given above show the growing importance of coffee culture in the emerging markets.
Brand identity: a dynamic concept Retail food
The concept of brand identity has been well researched (de Chernatony, 1999; de branding in
Chernatony and Harris, 2000; First and Khetriwal, 2008; Keller, 2001; Lory and
McCalman, 2002; Nandan, 2005; Roy and Banerjee, 2007; Wesley et al., 2006). Kapferer
new markets
(2004) believes that having an identity indicates “being true self, driven by a personal
goal that is both different from others’ and resistant to change”. Harley Davidson,
for example, has a powerful and well-established brand identity that creates its 5
own community (Muniz and O’Guinn, 2001). The brand Harley Davidson represent “a
unique light, with a great respect and distinction”, along with an image of “power,
rebellion and classic style in any American that hears it as well as many people
worldwide, witness to the strength of Harley Davidson brand” (Pugliese and Cagan,
2002, p. 141). According to Konecnik and Go (2007) the brand identity states what the
brand aspires to be and the three roles make it a success which can be stated as under:
(1) a set of associations that the brand strategist seeks to create and maintain;
(2) represents a vision of how a particular brand should be perceived by its target
audience; and
(3) should help establish a relationship between a particular brand and its clientele
by generating a value proposition potentially either involving benefits or
providing credibility, which endorses the brand in question.
The brand of a product or service needs to have its own unique identity that makes it
stand out and be recognizable.
Internal organizational culture: it is important to investigate the culture of
an organization in order to build a strong brand identity (de Chernatony, 2001).
The integration of brand identity and organizational culture should represent a move
beyond passive consumption by its consumers. The association of values, ideas,
feelings, emotions establishes an articulate identity (Chandler and Owen, 2002). In an
earlier definition of culture, Tylor (1903/1988) describes culture as something that every
human being will experience without realising it. Culture is part of us; it is made
up of the shared values that we practise in our daily life, regardless of how we seek to
classify it.
In a more recent definition of culture, Banerjee (2008) observed that culture
was something that can be learned, shared and practised by a society as their
principal determinant. Hofstede (2007) defines culture as “the collective programming of
the mind which distinguishes the members of one group or category of people from
another”. Hofstede and Hofstede (2005) define culture using the diagram shown
in Figure 1.
The diagram consists of four layers of concentric circles. The outer layer is about
symbols. A symbol can be a picture, a logo, words, icons or gestures that represent a
meaning. This is followed by a second layer about heroes. Heroes can be a human,
a role model, a figure; they can be alive or dead, real or fantasy. The third layer is about
rituals, which are regular acts that are practised such as how people are greeted or
the way they show respect to each other. The innermost circle of values is the core part
of culture. Values are the morals and principles that we hold. The three elements
(symbols, heroes and rituals), shown in Figure 1 based on the values held by employees
and management shape the organizational culture.
Hofstede and Hofstede (2005) link motivation to culture. According to them,
motivation within oneself is the answer to certain actions made by an individual.
MIP Symbols
33,1
Heroes

Rituals

tices
Prac
6 Values

Figure 1.
Hofstede’s definition
of culture
Source: Hofstede and Hofstede (2005)

A continuous process of this explains the motive of one’s behaviours which then will
develop into a culture. Continuous practise of certain behaviour, builds into a culture
that belongs to a group. This may be thought of as the accumulated learning as the
organization evolves over the years (Schein, 1988).
Brand identity and communication: in order to be a brand leader, a brand must have
a strong identity. Kapferer (1992) introduced the concept of the Brand Identity Prism
(Figure 2).
Research questions: this research was undertaken to clarify the following three questions:

RQ1. What, if any, is the role played by organizational culture in the retail food and
beverage sector?

RQ2. How does internal organizational culture evolve in the retail food and
beverage industry?

Kapferer’s Brand Identity Prism (1992)

N

Picture of Sender
TIO
ISA

Physical Personality
N
AL

IO
AT
RN

LIS
TE

NA
EX

Relationship Culture
ER
INT

Reflection Self Image

Figure 2.
Brand Identity Prism Picture of Recipient
 RQ3. Is there a difference in the way independent retail coffee shops and cafes Retail food
develop their brand identity as compared to franchised ones? branding in
Methodology: a qualitative approach using semi-structured interviews, field notes,
new markets
photographs and empirical material was carried out with 24 franchised coffee shops
(FCS) and independent coffee shops (ICS) in Christchurch, New Zealand. The coffee
drinking culture evolving in the New Markets is a relatively recent one and very similar 7
to that witnessed in New Zealand. The staple family diet in New Zealand till about
25 years ago was “meat and three veg” and eating out was a limited experience mostly
involving the straightforward Kiwi non-veg staple diet such as steak and chips,
fish and chips, baked meats and pies – a culture which stemmed from the British
tea drinking colonial heritage. Liberalization of immigration laws in the 1980s along
with affordable air travel brought new immigrants and cuisine habits began to change.
Following a similar trend to that of many emerging nations, New Zealand has turned
from a primarily tea-drinking country to a mainly coffee-drinking country, although tea
still remains popular. It was around the 1980s that coffee and tea consumption was
about even at two kilograms per person. Since then coffee has overtaken tea – partly
due to the growth of a café culture over the 1990s (Bailey and Earle, 1993) (Figure 3).
Phenomenological study: qualitative methods are utilized as an exploration towards
any phenomena in order to gather the more intricate meanings behind them (Strauss
and Corbin, 1990). In relation to that, this phenomenological study aimed to establish
the quintessence of an experience one has. Creswell (2003) stated that the main purpose
of phenomenology is to examine, comprehend and illustrate the experience of an
individual or a group with a specific phenomenon. Therefore, this approach is also used
as a foundation to understand the context by seeing and listening in a food and
beverage outlet without making any evaluation of the situation.
The focus of this approach is to explore and understand what the experience means
to those who are involved in the field. As Keegan points out, “Phenomenologists argue
that the world can only become known through experience and intuition” (Keegan,
2009, p. 145). Keegan elaborated on this by looking at our daily life that comprises rules

3.5

3.0
– KILOGRAMS PER PERSON –

2.5
Tea
2.0
Coffee

1.5

1.0

0.5

Figure 3.
0.0
1910 1924 1940 1947 1956 1965 1970 1975 1980 Tea and coffee
– YEAR – consumption in
New Zealand
Source: Bailey and Earle (1993)
MIP and habits that become a norm and shape our perception and way of thinking (culture)
33,1 without us realising it.
The phenomenological approach is divided into two types; a descriptive approach
and an interpretive approach (Liamputtong and Ezzy 2005; Punch, 2005). Both
approaches (Table I) are applied to this study in order to explore and discover a deeper
meaning from the interviews and observations looking at the owners’ experience in
8 handling the coffee shop and the values they believe should be reflected in the brands.
Triangulation: a combination of five approaches; semi structured interviews,
observation, field notes, empirical materials and photographs was used to establish
a comprehensive representation of the scenario (Figure 5). Each approach is used to
augment the credibility, reliability and validity of the data collection process. In total,
five different approaches were also adopted to provide diverse observations to
complement every angle of the research setting. As stated by Taylor and Bogdan
(1998): Triangulation is often thought of as a way of checking out insights gleaned from
different informants or different sources of data. By drawing on other types and
sources of data, observers also gain a deeper and clearer understanding of the setting
and people being studied (p. 80).
A theoretical framework was developed on the basis of the literature survey.
This framework was empirically tested and the summary is presented in this paper.
Qualitative administered semi-structured interviews were used as the main approach to
answering research questions. Insights and observations from coffee shops owners in
Christchurch, New Zealand, were used to establish and understand the relationships
between brand identity, organizational culture and the customers. The research
focused on the building of brand identity and the practices of the internal culture of
the organizations. The relationship of these two elements with the customers was not
examined. A conceptual model based on the Brand Identity Prism developed by
Kapferer (1992) was used to guide the study. A total of 24 FCS and ICS and Cafes in
Christchurch (NZ) participated in the qualitative research . There were 15 ICS owners
who participated in this research bringing the total to 24 participants.
Categorization of participating coffee shops as follows: coffee shops have been
classified into two types:
FCS: characterized by limited managerial autonomy, formal training, and strong
management support system, uniform and standardized branding.
ICS: divided into three sub-categories; traditional, combination and exotic (Figure 4).
Exotics incorporate elements and employees from other countries and cultures to enhance
their identity and the customer experience. One example is that of Sheila from ICS 12.
Her employees are multi-lingual and since the cafe is located in a high-tourist traffic area:
We have staff from different backgrounds & from many countries. Since it is tourist area, it is
important to have staff who can converse in different languages & understand people from

Focus In the context of this study

Table I. Descriptive Focusing on describing what Customers go to their preferred coffee shops because
Descriptive and we may reasonably know they feel comfortable and happy with the service they
interpretive experienced
approach in Interpretive Focusing on describing and What are the features that make the customers feel
this study interpreting human experience comfortable and happy?
 Exotic Coffee Combination
Retail food
Shop Coffee Shop branding in
* Incorporate *Serve coffee new markets
elements and 01 and food and
employees from 02 other
other countries 03 commodities
04
and cultures.
12
09
such as coffee 9
beans, fair-trade
05 product, gifts,
books and plants.
10
Traditional Coffee 15
Shop
* Typical coffee shops 06 07
that serve and focus 08 11
Figure 4.
on coffee and food 13 14 Categorization
of independent
coffee shops

different parts of the world. Our staff who can speak Spanish, French, Russian. This has
helped to expand the business (Shiela, ICS 12).
A pilot study was conducted to address issues such as the comprehensiveness of the
interview questions and also to give the researcher an opportunity to gain experience
in the field.

Data analysis and results

From our interviews we observed that most ICS are small in size and lack resources
needed for designing and creating a unique brand identity. Owners have neither
the formal training nor the knowledge for building their brand identity. In spite of this,
we clearly saw that café owners who brought a strong passion and a distinct
personality have developed a strong brand identity in their local clientele. Aaker and
Joachimsthaler’s (2000) three stage Strategic Brand Analysis Framework facilitates the
brand identification process as shown in Figure 5.
Table II shows that participants are aware of their brand positioning. During
interviews it became clear that a majority display a high level of passion and desire
to improve their performance. In Figure 6 the research findings are superimposed

1. Customer Analysis 2. Competitor Analysis 3. Self Analysis

• develop a dynamic
segmentation scheme that
can drive strategy that goes
beyond what the customers
are saying.
Figure 5.
• studying competitor • identifying the brand’s Aaker and
capabilities will assist in potential; resources, Joachimsthaler’s
creating a unique and capability, will to deliver, (2000) three stage
differentiated brand with heritage, image, strengths, strategic brand
new market segmentation. limitations, strategies, and analysis framework
values of the organization.

Table II.
perceive their
applied to the
analysis model
strategic brand
brands: findings
How participants
from interviews as
Stage
1. Customer analysis dynamic
segmentation scheme that can
drive strategy that goes beyond
what the customers are saying
2. Competitor analysis studying
competitor capabilities will
assist in creating a unique and
differented brand with new
market segmentation
3. Self-analysis identifying the
brand's potential; resources,
capability, will to deliver,
heritage, image, strengths,
limitations, strategies, and
values of the organization
Findings from participants
How owners segment the market based on needs:
Value for money
Like a place they can relate well to and remember the
experience
A place to relax
The owners view on competitors issues:
To be above the “normal” standard (normal ¼ average)
Sales slow down when there are many competitors
Greater impact on the existing economic pressure
The owners views on their coffee shop names/brands, etc.:
Sense of belongingness to the brand
Creating a strong feeling for the brand based on the
culture
The importance of the name
10
33,1
MIP
Examples from participants
“[...]. I want them to know that they can come back any
day of the week and have the open sandwich and it’s
going to be as good as what they remembered last time.
And, for people to go away feeling like they’ve had a
really good value for money and a really nice time [...]”
(Lorelai, ICS 07)
“Flat. Not growing just pretty much because of the
economy and the competition. So many competitors
everywhere. For the first 6 years or so, dominated the
market. It was better for us, but now lot more
competitors keep coming up. And people can’t drink so
much coffee” (Daniel, FCS 05)
“[...] to make sure we stand out, to make sure the brand is
looked after by the customers, talking about it. The
quality, the brand the marketing, the advertisements, or
even the logo on the serviette, even the sugars have
brand. The brand grows strong and so definitely,
everything they do and I do goes to make a strong brand.
To look at any cafe in New Zealand, now I still, think
FCS xx is one of the top brands” (Scott, FCS 02)
on to Aaker and Joachimsthaler’s (2000) design of the Strategic Brand Analysis Retail food
framework branding in
Metaphor and analogies: Zaltman and Coulter (1995) noted that “Metaphors are not
only ways of hiding and expressing thoughts, they actively create and shape thought”.
new markets
With the aim of having a smooth narration for the findings in the themes, we have
adopted the metaphor technique.
To find an appropriate metaphor for this study, we referred to participants’ 11
responses when describing their outlets. All described their outlets as striving to be as
near as possible to what the customer would get at home. They used this metaphor
because they believed that it was the best way to illustrate the service they provided.
By using “a comfortable home” as a metaphor the participants created and shaped their
thoughts, expectations and images in the presumed archetypal customers’ mind about
the outlet. We adopted the participants’ approach in describing their outlets as an
analogy to represent the findings in this research, as shown in Figure 7.

Service Industry: Service Industry: Service Industry:

Customer Analysis Competitor Analysis Self Analysis

• Develop a dynamic • Studying competitors way of • Identifying with the

customized segmentation doing things will assist in
scheme for the current and creating a unique experience
potential customers that goes by customizing consumers
beyond what the customers needs besides developing new
are getting and experiencing. user segmentation.
Continuous Analysis Process
organization’s internal
strength and build from there.
Figure 6.
Sense of belonging to the
brand is significant in order to
Revised Aaker and
be part of the organization.
Joachimsthaler’s
(2000) three stage
strategic brand
analysis framework

Establishment of
culture

Internal
Organizational
Culture

Brand Identity Figure 7.

Towards a
unique service
organization route
MIP Findings
33,1 As discussed earlier, not much research work has been done in this area and it is hoped
that this paper will open a new trend in the emerging markets by pointing out the
gaps to be worked upon.
The five key findings from this research are as follows:
(1) an appropriate brand name helps to ease the process of brand identity creation;
12
(2) the personality of the market leader strongly influences organizational culture;
(3) a constant flow of updated business intelligence and artistic intelligence are
useful in creating a distinctive brand identity;
(4) internal marketing and personal values are key to constructing internal
culture; and
(5) acculturation process plays an important role in developing internal culture
and building brand identity.
Figure 8 demonstrates the route of building brand identity with the influence from
internal organizational culture found by this research. The figure displays only the
core of the findings which is divided into three parts starting from the bottom; brand
identity, internal organizational culture and establishment of culture. Themes were
grouped into the appropriate category. Kapferer’s (1997) Brand Identity Prism is
applicable global. The Prism is divided into internal and external parts. Brand identity,
the personality of the organization gives rise to organizational culture while sending a
“picture of the sender”. Culture takes time to conceive, develop, adapt, assimilate and
communicates “the way we do things here”. The continuous process of assimilation
and acculturation shapes the change in identity and culture. The internalization of
culture happens within the three-storied building. The foundation of the building is the
conception phase of brand identity. This phase is the initial process towards a deeper
understanding of the desired brand vision for the organization.
Internal marketing has shown to be important for developing strong relationships in
developing new cultures. Previous research shows that internal marketing plays an
important role in developing new cultures (George, 1990). Internal marketing stimulated
employees to deliver high service quality to customers and, at the same time, fulfilled
the objectives of the organization. In service industries, internal marketing has two main
functions according to Davies (2008, p. 678); first, to align employees’ views with the
brand and what was being promoted to customers and, second, to treat employees as
customers who needed to be communicated with and felt appreciated. Focusing on the
relationships of internal marketing to employee-related issues in the coffee shop setting,
responses from the participants were divided into the following three categories:
(1) employee recruitment;
(2) employee involvement; and
(3) employee motivation and engagement.
All three categories were inter-related in constructing the internal culture in coffee
shops.
Employee recruitment: analyzing the employee recruitment process details given by
coffee shop owners it became clear to us that shop owners looked for potential
employees who can fit into their existing team and the internal culture of the outlet.
We observed that experience and skill were not the main items for becoming part of the
 Externalization Internalization

Picture of Recipient
Establishment of
Assimilation Tribe creation Self-Image
Customer’ s culture
Observation
Acculturation

Adaptation
Internal
Decision-Making ‘The way we do things’
Organizational Culture
Process Value Practised
Develop Culture
Yes/No; IfYes;

Consumption &
Experience → Influence
Evaluate →
Repeat Experience → Brand Identity
Conception Key branding elements Personality
Word of mouth →
Tribe Formation.

The route to Brand Identity

Picture of sender

Brand acculturation
new markets

model developed
Retail food

during this study

Figure 8.
13
branding in
MIP outlet; instead, personality was the most sought after characteristic. Owners were
33,1 aware of the importance of recruiting employees with experience and skills in order
to deliver efficient service. They were cautious when recruiting for special positions
such as cooks and baristas but placed personality as precedence in recruitment, as one
owner commented:
Ahhh personality, team player […] urm customer focus […] yeah. Barista, for instance, very
14 helpful because it takes a long time to teach, which is something that we initially looked for a
lot but we focus more on the personality. Whereas now, for people with barista experience
there are quite a lot out there but certainly we won’t take a barista with experience if their
personality wasn’t right for us and our team (Yvonne, FCS 07).
This finding was related to the recommendation from O’Connor (2005) to recruit
employees with experience and the necessary skills. O’Connor argued that while skills
and experience can be developed, it would have lessened the employer’s responsibility
if more consideration was taken when recruiting. One owner, Sam from ICS 13, felt it
was not an issue to recruit inexperienced employees:

Personality, enthusiasm, some experience, but they don’t need to be urmm […] like a café
attendant. We realise that some people join the workforce for the first time. So we employ
quite a few young people as well (Sam, ICS 13).
Sam’s views on employee recruitment might have been a result of the location of the
outlet itself. ICS 13 is located out of the city; therefore, it was understandable for Sam to
choose not to be meticulous in recruiting new employees. Due to the location factor,
Hunter, from ICS 01, however, had the opposite approach to Sam in recruiting. Hunter’s
coffee shop is located near to an educational institution; therefore, Hunter gets many
job applications from students of that institution. To be part of Hunter’s coffee shop
team, potential employees needed to send in their curriculum vitae and academic script
to ensure their capability and focus.
Employee involvement: internal marketing in the coffee shops focused more on
teamwork as the owners believe that having a high level of teamwork is important
for the success of their coffee shop routine. This statement was also supported by
Drake et al. (2005) who stated that “A cooperative atmosphere is more conducive to
productivity”. Mishra (2009), however, stated that internal marketing was responsible
for better teamwork. Moreover, it has been seen in this research that both internal
marketing and teamwork worked in parallel and complemented each other. It would be
complicated to build an internal marketing without a good teamwork system.
Employee motivation and engagement: the involvement of every individual in a
coffee shop is vital to ensure good service. In order to gain the involvement from every
individual, it was best to understand the factors that motivate them to get involved.
The owners had widely different views on the factors that motivated their employees to
perform better in the outlet. Proper reward systems, incentives on progress and
celebrating events on special occasions were among the common factors that were
recognized as important priorities by a majority of owners. Some of this finding is in
line with Deci (1972) who stated that in order to keep an employee satisfied they needed
to be given rewards as well as competitive salaries.
During our research none of the participants mentioned about job enlargement,
as suggested by Deci (1972). Most of the coffee shops that participated had only two
levels; the owners and the employees. This was probably due to the small numbers of
employees in each outlet, where the scope for promotion to a higher position did not exist.
 Values identified in internal organizational cultures: values practised in the coffee Retail food
shop were among the core elements in this study. In interviews with the coffee shop branding in
owners participants were asked about the values they considered important in forming
an internal culture that would create and foster a lively ambience. We have classified
new markets
the values given to us into three groups:
(1) values for recruitment;
15
(2) values for customer service; and
(3) values for retention.
Identifying values practised is the core element in constructing a culture (e.g. Burdett,
1998; Hofstede and Hofstede, 2005; Kluckhohn and Mowrer, 1944; Schein, 1992).
This research found that employee motivation was an important constituent in
constructing the internal culture.

Theoretical contribution of research

This research contributes to widening the usage of Kapferer’s Brand Identity Prism in
the food and beverage industry. The integration of three identified fundamentals and
the continuous process of acculturation will strengthen the internal culture of the outlet
and contribute to enhancing the identity of the brand (Figure 9).
For the culture facet, Kapferer has touched upon a set of values feeding the brand
inspiration. This research adds to details on the connotation of values. In-depth
investigation of values has broadened the dimensions, especially for food and beverage
industry. The identified values are applicable to other service organizations (Figure 10).

Hofstede’s Onion Model

The identification of personal values and the integration of rituals, heroes and
symbols have broadened the scope of values in the “Onion Model” outlined by
Hofstede. Another element has been added to the layers; concepts. Adding concepts
to the layers will enhance the creation of brand identity right from the inception.
The Augmented Onion Model provides deeper levels of meaning for values to be
implemented in food and beverage industry in particular and in the service sector
in general.
Contribution to emerging marketing literature: as suggested by Klijn and Tomic
(2010) research on how to transform creative ideas efficiently into innovative outcomes
is vital for organizations that hope to keep up with their rapidly changing environment.

Picture of Sender

Leader’s Personality
INTERNALISATION

Personality
EXTERNALISATION

Physical
Internal Marketing
Personal Values Organizations’
The process of brand Identity
acculturation
Relationship Culture

Figure 9.
Reflection Self Image Brand Identity Prism:
added details
Picture of Recipient
MIP
33,1
Brand Identity
Symbols (made of rituals, heroes,
Heroes symbols, concepts)
16 Rituals Trained and
tices
learned
Prac through
Values
Personal Values continuous
Recruitment practice.
Customer Service
Retention

Figure 10.
Hofstede’s Onion
Model: added element
(augmented)

Proposed framework can be tested and applied in any food and beverage outlet and for
other service industry sectors. This research provides feasible insights on activities
conducted within a service outlet in order to stay competitive in the industry.
Recommendations from this research will help to sustain and grow competitive brands
in the food and beverage industry in particular and in service industry in general.
Study limitations: the study had some limitations as mentioned below:
• generalizability: this research was conducted within the context of coffee shop
outlets in the city of Christchurch, New Zealand;
• difficulty in getting participants : many employees declined to be take part in the
research due to the nature of their work which required full attention to serving
the customers when the outlets is operating; and
• time constraint: those participants who agreed to be interviewed could give very
limited time for the same.
Scope for future research: first, it would be helpful to conduct further qualitative work
based on brand identity constructs by strategically selecting emerging countries with
a focus on improving service standards based on organizational culture and brand
identity. Second, because FCS and ICS owners in this study voiced a mixture of
views on the organization of the outlet and the values they believe are essential for their
outlets to be recognized, there is a crying need for a more in-depth study focused on this
aspect in the emerging markets.
A third direction for future study could be to explore how to get consumer’s more
emotionally involved and attached to a certain outlet(s) and to examine the degree
to which brand identity mediates customer’s involvement and emotional attachment to
these outlet/s.
Gaining an understanding of the employee’s vision on building brand identity and
culture will provide another potential research area. Finally we noticed a yawning
gap in dietary branding in the food and beverage industry especially in the area that
had been explored in this research (coffee shops).
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Further reading 19
Auerbach, C.F. and Silverstein, L.B. (2003), Qualitative Data: An Introduction to Coing and
Analysis, New York University Press, New York, NY.
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consumption-seen-rising-in-emerging-market-countries.html (accessed 14 September 2011)
Coffee Consumption Seen Rising in Emerging Market Countries (2011), available at: www.
bloomberg.com/news/2011-09-14/coffee-consumption-seen-rising-in-emerging-market-
countries.html (accessed 14 September 2011)
Esterberg, K.G. (2002), Qualitative Methods in Social Research, McGraw Hill, Boston, MA.
Flick, U. (2009), An Introduction to Qualitative Research, 4th ed., SAGE Publication Ltd, London.
Lofland, J., Snow, D., Anderson, L. and Lofland, L.H. (2006), Analyzing Social Settings: A Guide to
Qualitative Observation and Analysis, 4th ed., Wadsworth, Toronto.
Silverman, D. (2006), Interpreting Qualitative Data: Methods for Analyzing Talk, Text, and
Interaction, Sage Publications, Thousand Oaks, CA.
The New Frontier Specialty coffee’s emergence in China, India, the Middle East and Russia,
available at: http://dts8coffee.com/files/DTS8_Roast_Mag.pdf

Corresponding author
Dr Kamal Ghose can be contacted at: kamal.ghose@gmail.com

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