To Make India Coffee HubLAVAZAA

Gaurav Pant

SUBMITTED By:

Coffee consumption in India(2000 - 2008)

Calendar Year Quantity (in MT)

2001 640002002 680002003 700002004 750002005 802002006 850002007 900002008 94,400

* Provisional Source: Indian Coffee Board

Export of coffee from India

Destination Quantity (In MT) % to Total Unit Value

Rs/ Tonne

ITALY 50802 25.85 108431

RUSSIAN FEDERATION 16123 8.20 122337

GERMANY 14649 7.45 123290

BELGIUM 9673 4.92 105832

SPAIN 8556 4.35 97231

* Provisional Source: Indian Coffee Board

LAVAZZAITALY’S FAVOURITE COFFEE

THE LAVAZZA STORYSpreading the aroma and quality of Italian espresso around the world has always been lavazza’s main aim. Since the early 1900's, when Luigi Lavazza first invented the concept of the blend, the art of mixing coffee of different origins to obtain a harmonious and tasty product.

Today Lavazza is the leader when it comes to quality and is the symbol of Italian espresso and Italian identity worldwide.

Today, Lavazza is the leader when it comes to quality and is the symbol of Italian espresso representing so the Italian identity worldwide. Its success has been underpinned by constant research and attention to market need. Today Lavazza coffee is available in international markets

WORLDWIDE

THE TRADITION OF QUALITYWhen we talk about Lavazza, we're talking about quality, For lavazza quality is not 'controlled' but 'developed' through a strict system of procedures overseeing the selection of the beans, proper roasting, assembling the right blends and putting our products into quality packaging material meant to last.

Range Of Product And Services At The workplaceEspresso Point - Lavazza's compact and elegantly styled coffee brewing system.

At Home LAVAZZA ORO is a selection of extraordinarily sweet, 100% fine Arabica coffees. An intense, aromatic blend for true coffee connoisseurs. And LAVAZZA QUALITÀ ROSSA unites the taste of the finest Arabica coffees with the body of the best Robusta coffees

Foodservices Outlets

Lavazza BLUE - Best Lavazza Ultimate Espresso- is the formula behind an exclusive system composed of a machine and quick and easy - to - use capsules, which time after time will reward you with the pleasure of a professionally prepared espresso.

Coffee Shop

The IL CAFFE DI ROMA brand, acquired in 1999, the Lavazza chain has more than 80 direct coffee shops in the Iberian Peninsula, Italy, France, Singapore and the United Arab Emirates.

This is Lavazza’s new concept store, to develop its local presence. The objective of Espression is to offer customers 100% Lavazza shops, the product of a marketing idea conceived and developed by the company.

Lavazza enters the Indian market in 2007 by acquiring the Barista Coffee Shop chain. The chain is a major player in the premium sector of the Indian sub-continent, with 150 cafés in Asia, of which 132 are in India alone.

SWOT ANALYSISSWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. It is a scan of the internal and external environment is an important part of the strategic planning process

Strengths of Lavazza LaVazza is a very profitable

organization, earning net revenues exceeding €1 billion, up 12.3 percent compared to the previous year in

2007.

LaVazza’s global coffee brand built upon a reputation for fine products

and services.

Contd... LaVazza has always focused heavily on

human, environmental and cultural assets. The company is a respected employer that values its workforce.

LaVazza has Strong Worldwide Presence.

Weaknesses of Lavazza

LaVazza has a reputation for new product innovation and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.

LaVazza need to look for a portfolio of countries, in order to spread business risk and to commence production in india.

Contd...

Opportunities

LaVazza has the opportunity to expand its global operations. New markets for

coffee such as India and theAsian nation are beginningto emerge.

LaVazza has the opportunity of easily Availability of raw material for Coffee production. As India is one of the nation who export coffee to worldwide.

Contd...

Taste and Preference : Who knows if the market for coffee will grow and stay in favour with customers,or whether another type of beverage or leisure activity will replace coffee in the future?

Threats

Emergence of Substitute product by different competitors

• Café Coffee Day• Costa Coffee• Qwiky’s Coffee• Café Pascucci

Contd...

A lot can happen over coffee...

ABCTCL (Amalgamated Bean Coffee Treading Company Ltd. )

First Café coffee day in Bangalore (1996) on Brigade road

5000 Acers of coffee Estate (2nd Largest in Asia )

ISO-9002 Certified co.

Decision on Promotional Aspects Marketing BenchmarkingIts essentially comparing one or a number of company's marketing activities to those of another part of the business, a competitor or a business that operates in another industry. Youth Orientation :The Café Coffee Day brand is, and always has been, extremely youth- oriented. With proper holding a country where over 40% of the population is under the age of 20, there is huge potential for Café Coffee Day to become one of the country’s largest youth brands.

Contd... Maintaining highly rated Taste &

Quality of products:Café Coffee Day got a high rating in the market survey, for the Taste & Quality of their products. If they still work andmaintain on this aspect , there is huge potential for them to attract customers,just based on the taste and quality of products.

Contd... Competitive Strategy OptionsIt analyze a company's competitiveposition in comparison to the offerings of competitors just like Café coffee dayhas entered into a card acceptance partnership with American Express(AXP), to provide enhanced value and convenience to their mutual customers.

Demand Expectancy

Most of the daily consumption is at home. During 2005 about 24% also consumed it away from home. This is a marginal increase of 2% over the previous estimate of 22%. Consumption of coffee away from home is mainly at restaurants(45%) and hot teashops (40%).Cafes and vending machines are morevisible now in the out-of-home segment.And large variety of lavazza’s productcover every segment in this respect.

Places of consumption

Coffee ConsumptionAccording to London-based International Coffee Organisation (ICO) that India will double its consumption levels in the next ten years.GDP Growth Rate Of YouthThe GDP growth rate is about 9%for the youth population and thattoo, a well earningyouth population.

Contd...

Statewise volume Consumption (Urban+Rural)

2003 20052003

(Share) 2005

share

T.N 22692 23000 0.35 0.34

Karnataka 17505 19000 0.27 0.30

AP 12967 13000 0.20 0.20

Kerala 11670 12000 0.18 0.16

South 64834 67000 0.92 0.95

Non-South 5466 16200 0.08 0.20

Total 70300 83200

A P2 0 %

K e r a l a1 8 %

T N3 5 %

K a r n a t a k a2 7 %

A P2 0 %

K e r a l a1 6 %

T N3 4 %

K a r n a t a k a3 0 %