A PROJECT REPORT ON

WORKING AS CSR
IN

Lavazza
SUBMITTED BY

Abdul Khadir Mattur

ROLLNO 24
CLASS: S.Y.B.B.A
A project report submitted in the partial fulfillment of the requirement for the
Second year Bachelor of Business Administration

At

DNYANPRASSARAK MANDAL’S
SHRIKRISHNA T. POKLE COLLEGE
OF
MANAGEMENT STUDIES & TECHNOLOGY,
ASSAGAO, BARDEZ- GOA
 DECLARATION

I, Mr. Abdul Khadir Mattur hereby declare that the present project report
on Lavazza is submitted in partial fulfillment of the requirement for the
degree course of Bachelor of Business Administration to Dnyanpassarak
Mandal’s College of Arts, science, Commerce and Management studies.
This is a benefited record of work done by me under the supervision of
Sir Jeevan Khedekar, Sir Ashwin Souza
I further state that no part of the project has been submitted for a degree
or diploma or any other similar title of this any other university.

Abdul Khadir Mattur

S.Y.B.B.A.

Place: Mapusa
Date:
 CERTIFICATE

This is to certify that the Project report entitled to LAVAZA is

an original work carried out by Mr. ABDUL KHADIR
MATTUR under my guidance and that no part of this work has
been presented for any other degree or diploma, fellow sheet or
any other similar title.

Jeevan Khedekar
B.B.A
Course Co-ordinator
 ACKNOWLEDGEMENT

The whole praise is to almighty god, who able me to accomplish this work, I feel great
pleasure in expressing my deepest appreciation and heartiest gratitude to my parents
who encouraged me during this internship period, I appreciate and acknowledge the
patience, understanding and love provided by Mr. MAYUR SAWANT (distributor for
Lavazza) and also thankful to him who provided me a platform to polish my skill and
provide a quality of education at my door step.

Internship project was undertaken at Lavazza under the guidance of MR MAYUR and
our SIR ASHWIN. They guided me with extreme love and affection by playing various
roles as a mentor, counselor and at times even a friend. They not only helped me to
grow both professionally and personally.

Along with that, the staff and other volunteers at Lavazza were very supportive. This
Internship helped me to discover what actual coffee market is in GOA. They supported
me to take the initiatives and to carry out the way of my own interaction with people
working on the field and understand better.

It would have been impossible to complete internship without their support and I give
a special thanks to them for their cooperation.

Mr. WILLIAM MARCELLO

Mr. PRASAD PHADTE

Mr. PANDURANG NAIK

MR. NILESH BANDODKAR

 Executive Summary

As a Costumer Sales Representative there is being good learning experience with Lavazza. The
internship had started from 5/05/2011 and ended on 5/6/2011 I was actually working as an
employee of Lavazza. The internship report contains all the information about the work
experience with Lavazza.

As there were lots learning and rewarded for the best efforts, and also learnt to deal with
different situations, has experience of organization working environment which affects an
employee performance and attitude towards work, had good time in learning and performing
as a CSR in the demonstration, but also have experience how adventures is marketing field.

Confidence, on the time decision making, hard work, team work, and handling customer
techniques are the key learning’s out of the job and also would like to mention that it will be
one of the best skill that would remain with intern and help the intern in the coming life which
offer many challenges.

And also like to highlight this that the experience with Lavazza was very memorable and full of
learning’s where the intern found a lot of positive changes in my attitude, learning and
behavior.

India continues to remain a tea loving nation. However, with the increase in the number of
coffee outlets and the changing age profile of the population, the base of the consumers
drinking coffee is expanding. Nestle India and Hindustan Lever dominate sales of instant coffee,
accounting for 95% of value sales in 2006. It is estimated that by December 2008, the country
would have 1,135 organized cafes, growing at 63% per annum in terms of number of outlets.
India has eight big cities, 53 towns with a one million population and 3,410 urban
agglomerations of below one million populations. It has potential to accommodate 5,000 coffee
retail outlets.

With a large base of young working population India will emerge as the fastest growing coffee
market.

COMPANY INTRODUCTION
Being the pioneers in the vending industry for over a decade, FHCL has always thrived to spread
the aroma of finest coffees across India. It is this passion that has motivated the company to
new heights of continuing success year after year. Swiss machines were introduced by FHCL
during the late ‘90’s and thus pioneering the concept of fresh milk based coffee machines in
Italian country.

Over the years the company has expanded the base of machines up to 3500 installed over 16
branches in 22 cities thereby becoming the best coffee player in the country. The Italian coffee
major best coffee player in the country. The Italian coffee major Lavazza acquired FHCL and it’s
the subsidiary barista coffee company in the year 2007. With this take over, FHCl found its
machine range strengthened with the addition of Lavazza’s range of capsule based coffee
makers. These imported capsule based machine offer the authentic espressos the way it is
meant to be. Through this capsule system Lavazza offers delectable range of coffee and teas.

Retail is also the market which is not left untouched by FHCL. Alive! The rich filter coffee from
the house of FHCL is the packaged filter coffee blended with chicory(70-30). This brand has
been successfully marketed and sold in the southern part of india as the major coffee drinking
belt is in Tamil Nadu, Karnataka and Andhra Pradesh. Alive! Is also present in the western,
northern and eastern parts of India, in select locations. Just over a year ago, FHCL launched the
stronger variant of Alive! – Alive! Strong. (53:47) LavAzza takeover also helped in adding more
premium brands to the retail sector like the LavAzza Club, Qualita Rossa and Cafe Espresso.
Group companies include Barista LavAzza and also other subsidiaries of LavAzza across the
globe. Coffee buffs are a unique breed – very demanding, very choosy and quality-conscious to
the last drop. Yet, across the globe, for over a century, the Italian brand LavAzza has been
delighting even the most stringent of coffee connoisseurs with its inimitable range.

To the discerning coffee drinkers of India, Fresh & Honest Café Limited (FHCL), a decade-old
pioneer in the Indian coffee vending industry, (and now a part of the Luigi LavAzza S.p.A.
group), brings the joy of rich traditional taste in every sip.

The is a lot that goes into a cuppa from FHCL – the finest raw materials, a peerless technique,
years of experience, and above all, a passion to feast every plate. And it is this passion that
propels us to deliver the finest quality coffees across the county. The result, needless to say, is
the invigorating aroma of success.

The LavAzza Heritage

For well over a century, one brand has conquered the hearts of millions of coffee lovers across
the globe. “LavAzza’ – a name synonymous with perfection, quality and uniqueness. And,
without a shade of doubt, a name that springs to the lips of every connoisseur who wishes to
savor the very best of coffees.

Right from the moment LavAzza was born in 1864, it has set a distinct class for itself, which
remains unsurpassed. Fonder luigi LavAzza, had a lofty objective to0 spread the aroma and the
quality of Italian espresso around the world. H invented the concept of the blend, the intricate art
of mixing coffees of different origins to achieve a well balanced taste in every cup. The result?
LavAzza today stands as the symbol and sprit of Italian espresso.

The sheer strength of its people’s skilled and experience, they use of the finest raw material
and the employment of advance technological resource are the secrets of lavazza’s stunning
European success. Now in India, Fresh & Honest Café Limited (FHCL) brings the popular lavazza
European success. Now in India, Fresh & Honest Café Limited (FHCL) brings the popular Lavazza
range of Italian coffees to the discerning coffee drinkers.

Where is LavAzza now? Almost everywhere, is the answer. Present in more than 90 national
markets with a very wide array of choice in espresso products, the company is exporting more
than 38% of its production. This means a lot of coffee because LavAzza buys around 230 million
bags of green coffee per annum.

These purchases are than roasted, processed and packaged in a plethora of genres and formats
at the company’s four Italian factories. The majority goes to the vast Turin factory (Settimo
Torinese), the largest coffee factory in Europe and perhaps the world as it includes 73,000 sq.
meters of space. Turin produces only roast and ground coffees. Currently it is producing 88,000
tons of product per year. The company’s Gurrinari factory is dedicated to making cartridges and
capsules. With 55,000 sq. meters it figures prominently in Lavazza capacity. The factory’s
current annual product is of two billion units. It has a yearly production of 17,000 tons.
Lavazza’s Pozzilla factory is specifically and only for decaffeinated products. Last year it shipped
out 7,200 tons of packaged decaf.

Despite its burst of international activity, LavAzza always holds dear to its place in Italy where
62% of sales are maintained. As leader in the retail sector, LavAzza commands a quite
dominant 48% share among all coffees sold in value according to a recent report. In volume it
held 44.6%

This report shows the following breakdown of the Italian retail coffee market by volume and
value 2007: the retail sector handles 65% of all coffee consumed in Italy; out of home
represents 35% of all coffees. On the out-of-home Italian market, 75& of sales are by middle-to-
small sized roasters, who number some 600 roasteries. Segafredo Zanetti, Hausbrandt, Illycaffe,
Consorcio Caffe and LavAzza control the remaining 25%.

Year 2007 was a landmark for LavAzza, as then for the first time turnover-all in coffee—passed
the one billion euro mark. Sales in 2008 rose again to reach 1.1 billion Euros. During the five-
year period 2004-2008 growth whizzed along at about 8% per year. This meant turnover over
the period grew by almost 66%. Expectations for this uncertain year remain for the company to
maintain stable profitability while continuing to expand sales volume.

Internationally, during the past two years the company has also been spreading its wings. First
it acquired two companies in India. The Indian companies are Fresh & Honest and the Barista
Coffee Shop chain. The former has a roasting facility in Chennai that is producing close to
10,000 tons of product annually. Beyond extending its own coffee serving outlet concepts,
LavAzza is directing itself toward international vending, office coffee service and HORECA
channels, the new professional line of LavAzza Blue had all the looks of a classic Italian espresso
machine—serving heads, steam wands, LCD indicator, cup warmer on top and for larger units
connections to mains. “Pro Blue” offers five models to choose from. It is sourced by LavAzza
with an array of eight coffee blends in caps. This includes the company’s retail and bar brand!
Terra!, LavAzza notable and honored sustainable coffee initiative.

A Modo Mio completes the current array of closed LavAzza systems. A Modo Mio (My Way) is
being rolled out now in several European national markets. Market tested for years in Italy, its
coming out into international markets is seen by observers as the company’s answer to
Nespresso. To this end, it is all sleek styling, comes in different colors and is sourced with four
choices in caps, including a decaffeinated version. The Lavazza is fearless before larger
competitors is clear in its bold approach to incorporating youthful high fashion and design
driven marketing into all it does, from packaging to the lines of a brewing machine, from
formats for espresso bars to totally new and unique recipes for enjoying coffee, hot or cold—
even unto an espresso spoon with a hole in it!

There are no traditions to obey at Lavazza except those in keeping with the family’s pride in its
product standards. Bold and creative seems to be the Lavazza motto as it proceeds further into
the 21st century. There is good business reason in this “madness.”

Needless to say, either way, Lavazza is joyful at having put coffee back in the heat of day-to-day
culture. Where it belongs. What is admirable from an industry standpoint about Lavazza is not
so much its successes but its serious effort to return coffee to its place as a good drink that
people want to stimulate their work, thought, creativity and yes, a discussion of controversies.

Summary of two months

As the intern started his internship on 5th of March he had very good learning on first day, the
intern was given induction by the distributer (Mr. MAYUR) who was the guide to intern, first
five day went in studying about the machine and tasting the coffee and tea (that is the different
flavors) in this five days the intern had learned what actually is the taste of the coffee, that was
the first time the intern had heard about the different types of coffee as Lavazza coffee beans
come from the finest Robusta and Arabica coffees from around the world and can be purchased

either ground or whole. In order to more easily pick the blend that is most suitable for your
tastes, it is a good idea to understand the difference between Robusta and Arabica coffee that
where Robusta comprises 1/3 of the world's coffee. It is mostly used as filler in lower-quality
coffee. It is simpler to grow than Arabica which is why it is cheaper than and considered inferior
to Arabica. Robusta coffee is found mainly in the Eastern Hemisphere. Robusta's caffeine
content is approximately twice than that of Arabica.

Arabica coffee usually grows in high-altitude areas in many different areas around the world,
with its roots originating in Yemen and Ethiopia. It is considered a higher grade coffee than
Robusta, which is why blends that are 100% Arabica are highly admired and sought after this
was the basic knowledge given by our guide MR MAYUR. And what are the different type of
machines that is LavAzza blue 800 (which is outdated) LavAzza blue 850 the up graded version
of 800, LavAzza blue 1000 the semi automated machine, the last LavAzza blue 2300 which was
automated with feather touch buttons along with LCD screen on the machine and how does it
works and also explained how to sell the machine assent the machine was give on minimum
guarantee bases, direct sale and also in installment bases. The interns where sent with an
engineer for their first demo, and there they where actually exposed how a demo is given. Soon
the intern was introduced to the practical life assent. He had to go and find the costumer, give
him the demo and sell the product.

On 10th the intern had convinced a client to buy the product as he experienced that how
difficult it is to sell a high end product and a product which is almost not known to the ¾ market
assent corporate and individuals. He also learned that in this business referral is the best option
to sell the product. From the next day the journey began. The interns were given a particular
segment that was corporate, hotels and individuals. The work was to get the appointment from
them for a demo. As a started the interns had a good guide SIR ASHWIN and MR MAYUR they
used to support the intern whenever they had difficulty Mr. mayur took the intern to a client
and showed how actually the intern has to speak to the customer and how to solve their
problems if they have any regarding the company. As the intern visited the first client he was
able to convince the client and sell the machine in the first attempt the intern sold the machine
to the corporate which was much appreciated by every one on the office.

As this was very tough job to do, the intern had to go and do the cold calls. only to get their
numbers and some times he was not entertained at all .when he was doing this he found that
many of the cooperates wants an vending machine (premix) to give to their lower management
which would had cost them 5-6 rupees and our coffee was costing 30. This was in spite of
explaining them that the companies target is not the lower management but it is the upper
management. After finishing with the corporate the interns where mixed into all the fields. The
intern had to visit south Goa with an engineer there he observed how they repaired the
machine and being a sales representative how to handle the clients if there is a major break
down it was also observed that the engineers try to repair on the spot if there is any fault in the
parts they send it to the head office in Mumbai. After that the interns had to take follow ups
that it he had to call up those client who had said they will inform later and convince them.

As he’s segments was mixed the intern was going to all types of clients during this period he
had to go whit his collogues for demo. During the start the intern observed that it is confusing
when there are two sales people to convince one client as they were not well prepared whit
each other so they decided who will talk what and if any one is wrong how to support him. The
interns were mostly on the field taking an appointment or dealing with appointments. While
doing this the intern had learned how to tackle a problem with an client while giving a demo or
explaining about the product.

As the intern was well aware about the product, he got an opportunity to go outside Goa and
visit a client who was situated in Belgum (Karnataka). After that there were many clients whom
the intern met. They had different problems few had problem with pricing , the size of the
product few had with the taste for example the intern had visited the owner of RR steels who
was a coffee drinker but he liked the Indian beans as he found that the taste of the coffee of
Indian beans and the Lavazza coffee was totally different .and there where many good lead who
have committed that they will buy the machine in July because there where not available and in
September, as these were mainly restaurants and hotels. In between the intern was sent to
collect payments from the clients. The learning in this was how actual relationship is there
between our company and theirs as Lavazza

The intern learned few recipes of coffee by Sir Ashwin who thought and told the interns to
make them. Mr. Mayur got an client who used to drink coffee with soya milk and when the
demo was given to her the coffee was not getting mixed so that costumer was lost but the
intern decided to do an experiment with his collogue he bought the milk and they tried mixing
it in different ways but the coffee was not getting mixed at last the intern tried in his own
manner and it was successful. The interns didn’t get the client as she was not available. During
the intern ship the intern where sent to collect the payments in this it was observed, how
difficult it to get the payments during off season. But they where few clients who would pay on
the spot.

LEARNING’S

CUSTOMER ACTIONS
Customer desires: consumer adjusts purchasing behavior based on the individual needs and
social factors. In order to understand what happens inside consumer’s minds and identify
mental and social exterior influence on purchase on decision. On some level, consumer’s choice
can appear to be quite casual however; each decision that is made has some meaning behind it,
even it that choice does not always appear to be balanced, Purchase decision deepens on
person for and values.

People buy to satisfy all types of needs, not just for utilitarian purpose. These needs, as
identified by Abraham Maslow in the early 1940’s, may be physical or biological, for safety and
security, for love and affiliation ,to obtain prestige and esteem, or for self-fulfillment. Prestige is
another intangible need, and those concerned with status will pay for it. However, goods
appealing to this type must be viewed as high profile products that others will see in use one
benefit of targeting this type of market is that the demand curve for luxury product is typically
the reverse of the standard high status product sell better with higher price but some times its
reveres. Some compare the type of need to be met with certain of goods. For instant, a need
for achievement might drive people to perform difficult tasks, to exercise skills and talents, and
too invest in products. The need to nurture or for nurturing leads consumer to buy products
associated with things such as parenthood, cooking, houseplants etc. clients also vary in how
they determine who they needs want to satisfy when purchasing products and services. Are
they more concerned with meeting their own needs and buying what they want to, for their
own happiness? Or do they rely on the opinions of others to determine what product and
services they should be using? This determines, for example, whatever or not they will make a
purchase just because it’s the newest, most popular item available or because it is truly what
they need and want (for example Mr. Hazart bought the machine because it was most popular
and newest in the market). This also influences the way marketers will advertise products , (for
example a coffee distributor trying to appeal to people looking to satisfy their personal taste
while emphasize its higher time; that same distributor, marketing to those who want to please
others, will emphasize how sharing the coffee can improve gathering with friends and family).

Cultural and shared values also pay large roles in determining what products will be successful
in a given market. If greater value is placed on the characteristics such as activity, hard work
and materialism, the companies who suggest their product represent those values are me likely
to be successful. Social values are equally important. If manufacturer suggest their product will
make the consumer appear more romantic or competitive in a place where those values are
highly regarded, it is more likely consumer will respond.

BUYING PRACTICES

It is equally important to understand what forces the consumer to actually make a purchase, As
opposed to just generating interest. For example, some clients respond based on how the
mood is, or while some are focused on making the wisest decision. Here there is example when
the intern visited the client Miss Dutt she was sleeping and she came in that mood so without
looking at demo she rejected. Knowing the different elements that’s stimulates clients purchase
activity can help market design appropriate sales techniques. In some cases consumer make
very little efforts to evaluate product choice. “Habitual evaluation” refers to a state in which the
consumer ignores marketing materials placed in the store, whether because of lack of time, or
some other reason, indeed evaluation relevant marketing information can become time
consuming of it is done every time a person shop.

On the opposite side of the coin “broad evaluation” is the state in which consumer consider
the price and promotions of all brands before making a choice. There are also in-between
states of evaluations, depending again on the important purchase and time available to make a
decision (some clients, usually those who earn higher incomes, value their time more than the
cost savings they would incur).decisions on whether to compare various customers may be a
factor of predicting, search cost or time limit and individual house hold purchasing pattern.

When it comes time to actually to make purchase, however, one person in the family acts as a
“data strain “for the family, depending on what type of purchase is being made that person’s
expertise and interest. The data strain passes along information he or she consider most
relaxant when making a purchase decision, straining out what is considered unimportant and
regulating the flow of information. for example women are more often the family members
who evaluate which tool to purchase while children pass along what they consider to be
seminal information about toys. At times, family members may take on additional roles such as
an “influencer”, contributing to the overall evaluation of goods being considered for purchase
or one person may act as the” decider “or the final decision maker. Ultimately, purchase
decision are not made until consumer feel they know enough about the product, they feel good
about what they’re buying, and they want it enough to act on the decision

INTERPRETING CLIENTS ACTIONS

When marketers (the intern) being evaluating the behavior of the consumer, it is a mistake to
rely on predictable knowledge, especially when is possible to study the actual activity in which

clients are engaged when using a product. Where are they buying? When they buy certain

items? WHEN DO THEY USE IT? WHO IS WITH THEM WHEN THEY MAKE THE PURCHASE ? WHY

DO THEY USE IT? WHO IS WHITH THEM WHEN THEY MAKE THE PURCHASE? WHY DO THEY

BUY UNDER CERTAIN CIRCUMSTANCESES AND NOT OTHERS? The marketer needs to determine
the major needs being satisfied by that good or services in order to effectively sell it. Specially
being in this market the marketer has found that there are basic two principals that are (what a
customer wants) and intensity (how much they want). Directions refer to what customer want
from a product. for example a coffee machine at the local restaurant hell require cheep coffee
machine and beans and the hotels(five star) requires high quality and brand, but what they
more rely on is coffee ,and will probably pay more if they think the more expensive brand. And
being a marketer there has been knowledge gained that behind each type of product there is a
target of potential costumers.

The other way to evaluate consumer behavior, power, refers to whether a customer’s
interested in product is compelling enough that will go out and make the purchase. Good
marketing can create that kind of concentration. For example the distributer of Lavazza
(Mr.MAYUR) started giving machines for free assent for minimum guarantee which was
compelling enough clients to take the machines. Understanding consumer motivation is the
best way to learn how to increase buyers motivation, as well as a better alternative to the easy
incentive to decrease the price, for example a client named SAVIO was opening a new café and
he as really happy how the marketer supported his idea and the machine was bought by the
client the marketer gave him discount to make him more loyal. While is easy to consider on all
these elements of consumer motivation, it is much harder to actively research motivating factor
for any given product. it is rear that a consumer’s reason for buying a product can be accurately
determined through direct questioning For example the client name FIROZ was give good
motivation buy the marketer and he was also offered good deal but when the marketer asked
he hesitated saying the capsules are expensive, he’ll study about it and they reply. Through this
a marketer can understand what the client is thinking about the product.

Marketers (the intern) have had to develop other was to get real responses. These included
asking clients “how do you thing a friend of yours would react to this product?” while consumer
do not like to admit that marketing affects them at all, they are often willing to speculate on
how it would affect some one else. And the most often they answer with what would be their
on response.

INFLUENCING CONSUMER BEHAVIOR

One of the best ways to influence consumer’s behavior is to give buyers an acceptable motive
means u have to encourage him of influence him that the product is useful .This some what to
relating to n idea of asking what type person would buy a certain product in evaluating
consumer behavior. Clients want to feel they’re buying a better product, eating healthy, making
contacts etc. if the marketer can convince clients that they need a product for some “value”
reason, customer will be more likely to make a purchase. For example the In addition, sensory
stimuli are important to marketing. When food packages are appealing or associated with other
positive qualities, people often find that they "taste" better. For example, people often "taste"
with their eyes, discerning differences in products where they do not see any difference during
a blind taste test. One of the best examples of this was a test of loyal coca-cola of customers
who were totally unwilling to admit that any other soda was its equal. While able to see what
they were drinking, they maintained this position. But during blind testing, some were unable
to tell the difference between Coke and root beer.

Over these two months of training the marketer has observed one thing in sales and marketing
rarely if ever changes. In fact, it is so predictable that a marketer can easily spot it during his
negotiation cycle and he spots it. Make more money but marketer will also avoid those
headache customers that drains marketer of not only enthusiasm and time but his precious
monetary resources as well over the two months, there’s an observation done. What is this
marketing and negation secret that has so much power? There’s a standard “BELIEVE LOCKED”
away in human nature that if the marketer understands it, it gives him a powerful key that a
marketer need to make business more successful. It’s believed that is called “CONSUMER OR
HEADACHE “and once it is hears, you’ll know why…….

At the heart of this concept is a belief that is called “The Three Basic Levels Of The Market” and
if it is taken time to understand how these three levels operate, there will be able to spot each
of the clients in a minutes and fine tune and adjust your presentations and sales efforts when
dealing with each of the clients. Using this principal, instated of sometimes finding the marketer
In an awkward refusal that falls flat because the marketer has somehow “missed the mark “(for
example a client named Suzan (70’s) who first rejected the machine because it was complicated
after understanding her level a new machine was propose she refused to by saying that she was
looking for small machine). And they didn’t really even know why marketer will relay find them
in that kind of situation or frustration again here’s why…..

Understanding the “The Market’s Three Basic Level’s” all the markets can be broken into three
layers because there are three basic kinds of people. Sure, there are infinite nuances of human
personality but there are three basic personality types and here’s how they work……..
Have you ever had one of those great clients that rely on your judgment and expertise and
value your experience and always pay on time and never haggle about the price? They’re rare
but they’re there they are that top 15% of clients of the market that they are called “clients”
and every one wants them. But they rarely shop projects once they find someone they trust
and once they learn that they can respect you and good service from you, see these are all
about trust and relationship and once you build that trust it’s something that no “competitor”
could ever come in and destroy. Theses people know what they are worth and they do business
with you are worth as well and they’ll send a “competitor” packing because it’s clear to them
that the compotator know what their self-worth is as well. these people are quick to
recommend you their friends and associates usually, people just like them as "birds of a feather
really do flock together" and they will actively try to help your business grow (just as they see
you offering ideas to help them row their own business) Example Sanjive Trevedi he one of the
best clients as he’s the person who is very loyal to Lavazza he always recommends his
associates to Lavazza and he also promotes the product to them.

the middle of the market is called is 70% middle market and as a group they are, for the most
part, fair-minded, honest and they do not usually on you, for deals thought they do appreciate
a good but fair price.(Example Savio he the client was a client who had rejected the machine
because of it pricing once he was offered a lower price he immediately took the machine
without any hesitation as he got the machine at very fair price which he was looking for) they
may not have the sense of loyalty that the top 15% of market have but they do try to be fair
assent they no that they are not perfect and they have made their peace with themselves and
they treat the same and they will try to work within the relationship wherever it’s possible.
Within this middle 70% group you can fine tone their reactions by their proximity to either the
top 15% of the market or the low end 15% of the market. As these middle market people get
closer to top or the bottom, they act accordingly and take on traits of ugliness that you will live
regret if you choose to do business with them (if they near the crossover point where they fall
into lower 15% of the market) once have learnt to spot where within this majority 70% market
area they stand, you will quickly be able to spot those “clients” you wish to work with or those
“headaches” that you want to send packing nicely off…
the marketer is also amazed that the low end 15% of the market is the market that most new
business set out to work with. Come do it willfully and others without thinking but the end
result is the same a lot of work with very littlie money, if any This often happens because many
people think that you have to undercut the existing business to build new business. That’s
simply not true. But if you have believe that you do have to undercut the market and you price
yourself as a “low player” artist, you set yourself put to attract the people that occupy the
lowest 15% of the market. these people are called as “headaches” and for good reason: they
will crush you and demand you treat them like people in top 15% category and they will expect
that treatment from you as they push and push to get things below your cost. They’ll promise
you your jobs sown the road and just those one job needs a deal the other will make you some
money. Yeah right! The truth is they’ll never let make a dime off them while u suffer through
insults, mistrust, constant changes in the arguments over what they agreed and no matter how
well u do. They never recommend you to their associates and this is probably due to fact that
they know themselves quite well. If they need to invent a reason not to pay you, they can get
incredibly creative! There are few examples who fall in this 15% lower end customers

Example (Sanjay Calangutkar who was a real headache to the marketers he was given the
machine on minimum guarantee and he said he’ll pay money next evening he did this for at
least for a week at last the machine was removed with lot of embarrassment and insult)

( Pritesh Desai this person was the distributor of fosters co. he wanted free machine, and he’ll
give sale of 300 capsules per month and when the company said the he has to sign a contract of
minimum guarantee he refused to do and enforced to give machine free
 SWOT

Strength

 Goodwill in the market

 Have stronger distribution channel

 Innovations
  Brand name

Weakness

 Presence is negligible in the market ( GOA )

 Self cannibalization

 Less advertisement in the market (no customer awareness )

Opportunities

 New products/flavors

 Expanding the market

 TIE up with other companies for promotions

 Perception of Indian people is changing regarding “coffee”

Threat

 New entrance with same concept with lower price

Conclusion:-On the basis of SWOT analysis, I observer that Lavazza is working in very well
manner. But I think they are lagging in some areas especially lagging in marketing But I think So
they need to work in weak areas and again as this internship ended being an intern of lavazza
there was lts to learn and experience which is already shown in the report