Inrternship Report | Coffee | Business

ABOUT LAVAZZA

IN 1895, when Luigi Lavazza purchased a little grocery store, Paissa Olivero, in the old commecial section of Torino (Northern Italy). The purchase was made for 26,000 Italian Lire, or about US$ 20. In those times such stores operated as both retail and production outlets. The coffee, sold among thousands of other products, was bought raw, and then roasted and blended according to very personal recipes depending on the cutomers' requests. This activity soon attracted the interest of Luigi Lavazza, who had already demonstrated considerable knowledge and skills in the processing of blends, including both the quantities of the ingredients and the degree of roasting. The firm's expansion from retailing to wholesale trade (1910), the joining of Luigi's three sons Mario, Beppe and Pericle (during the First World War), and the progressive narrowing of the production range, marked the first steps of an irresistible commercial growth, which enabled the Firm to acquire a notable position at regional level. The little grocery store became in 1927 the modern Luigi Lavazza S.p.A. that, after the forced stop caused by the League of Nations' economic sanctions, by the prohibition on the importation of coffee, and by the outbreak of the Second World War, finally came to specialize in the production of coffee. The first Lavazza logo was then created and the annual production reached 1,000 tons. In 1956 Mario left Lavazza to his two brothers (their father, Luigi, had retired in 1935). Meanwhile, as the coffee market grew throughout Northern Italy, the building of a new plant (at Corso Novara, today the site of the Firm's Headquarters) became necessary. In the early sixties, and with the processing cycle now completely mechanical, Lavazza introduced the first vacuum-packed ground coffee suitable for long conservation. These enormously successful years led Lavazza to increase productions and open a new plant at Settimo Torinese. With distribution covering the entire nation, the product range was completely redone with new packaging techniques using the vacuum preservation of aluminium and plastic packing (notable cheaper than tins). In 1996, Lavazza's yearly production was well over 100,000 tons of roasted coffee, and the Firm's employees had grown to more than 1600. Lavazza's tradition of devoting special attention to the development of new techniques and products (see their clever and tremendously popular Espresso Point system), make the Company both uniquely dynamic and sensitive to the customer's requests. Luigi Lavazza S.p.A. is the undisputed market leader of espresso in Italy, with almost 45% of the total coffee market (and 75% of Italian families who buy Lavazza).

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particularly youngsters. an agreement between Lavazza and Sterling Infotech Group was signed in Mumbai. Barista Coffee Company and Fresh & Honest Cafe (FHCL). since the early 1900's. when Luigi Lavazza first invented the concept of the blend.MISSION LAVAZZA’s mission is to spread the aroma and quality of Italian espresso around the world Reaching this aim • Product’s QUALITY recognised throughout the world as the symbol of Italian espresso The use of the finest raw materials throughout the world. The brand has often been in the news on many occasions in the recent past. drawing strength from our experience established over more than a century of activity. Lavazza entered the Indian market by acquiring Barista and FHCL. Lavazza in India Lavazza Group has two famous coffee brands under its umbrella in India. That is the reason why lavazza strive for excellence and innovation. 2 . In 2007. And also the use of the advanced technological resources Spreading the aroma and quality of Italian espresso around the world has always been lavazza’s main aim. As part of the acquisition. the art of mixing coffee of different origins to obtain a harmonious and tasty product. for its innovative on-ground campaigns. namely. Barista is a popular coffee chain frequented by Indians of all age groups. Today Lavazza is the leader when it comes to quality and is the symbol of Italian espresso and Italian identity worldwide.

30000* 3 . This machine is basically targeted to individual and small restaurants and cost of this machines is Rs. with the launch of its premium. No much manual work is required and it has automatic ejection of capsules It has Water tank capacity of 1.5 liters. Corporates and Hotel. The current new models of lb are LB850 Lb1000 LB 2300 LB 850 This machine is fully manual machine from loading the capsule till the gating the espresso out is fully manual this machine has a Water tank capacity 2.B Machines and they were segmented into High end individual. Italy's favorite coffee company in order to improve the section of coffee machines that already exists in the India market has given yet another reason to coffee connoisseurs to experience the authentic taste of pure 'espresso coffee'.4 liters this machine cost Rs. this machine is compact and easy to use. Lavazza Blue Coffee Maker What is Lavazza BLUE? Best Lavazza Ultimate Espresso Lavazza BLUE proprietary technology employs the same single serve cartridge throughout a wide range of professional coffee systems designed to meet the requirements of the most demanding foodservice operations Product info In Goa Lavazza targeted L. 15000* Lb 1000 This is same automatic machine which is designed by Pininfarina.About Lavazza blue Lavazza.

bakeries. and producing contract cars and car body parts. conference centers. night clubs. Fiat. Tata Motors.LB 2300 This machine is also designed by Pininfarina. Ferrari. This machine cost RS. and Volvo. engineering. perfect for restaurants. Rolls-Royce. ______________________________________ Lavazza BLUE Coffee Blends Espresso Dolce 100% Arabica blend with a sweet and fragrant aroma. LB 2300 is compact and versatile. composed of top quality coffee from Brazil and India Body Intenso A blend of excellent Arabica from Brazil Central America (40%) and Robusta from Southeast Asia(60%) Body 4 . Honda. cafés. tea rooms. pastry shops. 60000* About Pininfarina Pininfarina is an industrial design company that specializes in designing. Pininfarina caters to such customers as Alfa Romeo. fast-food restaurants and office environments. pubs. top hotels.

Decaffinato 100% Aribica Blend of exquisite Brazilian coffee Body Caffe Crema Dolce 100% Aribica Blend with a sweet and fragrant aroma composed of top quality Brazilian and Indian Coffee Body Caffe Crema Dolce 100% Aribica Blend with a sweet and fragrant aroma composed of top quality Brazilian and Indian Coffee Body 5 .

Buying Behavior For people who are more conceuse abut lifestyle In order to gain the competitive advantage. now hundreds of trendy westerninfluenced coffee bars have emerged across India. Although tea is the main drink of choice in India. India offers a few notable coffee bar chains. even into non-traditional coffee drinking regions in the north. consumers are becoming aware of domestic and foreign brands which are boosting the consumption levels.Learning Coffee market in Goa and In India The coffee market in Goa has been growing due to the demand for Ready to Drink coffee and has become a part of an individual’s daily consumption basket. The significant growth in the number of coffee retail chains in India is due to the changing lifestyle patterns of Indian middle class families and an increase in their disposable income. For coffee fans. Due to changing cultures. Who is your potential customer and what do they like? What is your identity going to be? Or looking for more sophisticated customer with a high end approach. It is widely recognize that consumers can be considered as the fuel of any 6 . domestic coffee consumption is increasing 5 to 6 percent annually. According to the Indian Coffee Board. How to go about and whom to target In order to stay competitive you need to spend the time understanding what your customer basic wants. one of the most important components is to determine and then manipulate on factors influencing buying and consumption behaviour. partly due to expansion of the coffee café culture and the spread of the coffee drinking habit throughout India.

7 . On some levels. However. However. but also because it can be used to express consumers’ personality. such as the need for change or newness. social status or affiliation (symbolic purposes) or to fulfill their internal psychological needs. goods appealing to this type of need must be viewed as high-profile products that others will see in use. each decision that is made has some meaning behind it.business venture. and values. This demand can only be adequately met if the restaurant owner invests in coffee machines that can produce enough coffee at a quick enough speed. high-status products sell better with higher prices. One benefit of targeting this type of market is that the demand curve for luxury products is typically the reverse of the standard. consumers may choose particular product (brand) not just because it provides the functional or performance benefits expected. Secondly they want perfect coffee to serve they customer and fulfil they need. Purchase decisions depend on personal emotions. Not only that they are the ones who purchase the products of the firm.Coffee demand in restaurants is very high and it may even increase during colder seasons. Personality traits and characteristics are also important to establish how consumers meet their needs. consumer choice can appear to be quite random. As we look at Goan restaurant they have mostly foreigners and Russian Customers and they mostly prefer strong espresso. and those concerned with status will pay for it. As lavazza lb 1000 and lb 2300 is designed by Pininfarina which creates the royal image on other people. This machine suet this types of customer CONSUMER NEEDS Consumers adjust purchasing behavior based on their individual needs and interpersonal factors In restaurant and Café: . even if that choice does not always appear to be rational. social situations. Prestige is another intangible need. goals.

and knowledge based on past experience. The information filter passes along information he or she considers most relevant when making a purchase decision. as many cup of coffee you remove from the machine 8 . Lb machine are much chipper then others Good crema Lavazza blue has thick crema at list 2-3 mm Constance Aroma and taste There is no change in the taste and the aroma of the coffee it remain Constance. filtering out what is considered unimportant and regulating the flow of information For example. At times. intuition. family members may take on additional roles such as an "influencer. Learned attitudes also influence these decisions When it comes time to actually make purchases. Consumers also make decisions based on an overall evaluation of their impressions." contributing to the overall evaluation of goods being considered for purchase SWOT ANALYSIS OF LAVAZZA BLUE STRENGTHS:Price of machine If you compeer lb machine to any other coffee machine. one person in the family often acts as an "information filter" for the family. or attitude-based processing. however. while children pass along what they consider to be seminal information about toys.PURCHASE PATTERNS Purchase decisions are not always made on the basis of an "attribute-by-attribute" comparison (attribute-based processing). men are more often the family members who evaluate which tools to purchase. depending on what type of purchase is being made and that person's expertise and interest.

Machine is designed by Pininfarina This machine are designed by Pininfarina which creates a royal image on the machine No train barista required No train barista is required for operating this machine any one can operate this machine Low service cost The machine required low maintenance Weaknesses No proper awareness and promotion There is no good advertisement is done about the product Opportunities:Lunch low cost capsule Lunch a low cost capsule which can be affordable by middle class people Threats:Entrees of new competitor with same kind of capsule concept Current marketing strategy for Lavazza blue Minimum guaranty plane In this plan lb 850 machine is installed on minimum consumption of capsule in a month which is more than 3oo capsules On rental bases The machine is given on rental basses to the customer which can recover the amount of the machine with in year Direct sales 9 .

10 .Customer can buy directly the machine from the distributers Conclusions Lavazza as in world wide is making very good. But if we see to the Indian market it require to work more as there are many indirect competition for lavazza coffee in India SUGGETIONS As to gain more competitive advantage in Goa lavazza most try to promote they product by advertising the brand and making them aware abut the coffee in Goan market .

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