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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).
MISSION LAVAZZAs mission is to spread the aroma and quality of Italian espresso around the world Reaching this aim Products QUALITY recognised throughout the world as the symbol of Italian espresso The use of the finest raw materials throughout the world. And also the use of the advanced technological resources
Spreading the aroma and quality of Italian espresso around the world has always been lavazzas main aim. That is the reason why lavazza strive for excellence and innovation, drawing strength from our experience established over more than a century of activity, 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.
Lavazza in India
Lavazza Group has two famous coffee brands under its umbrella in India, namely, Barista Coffee Company and Fresh & Honest Cafe (FHCL). In 2007, Lavazza entered the Indian market by acquiring Barista and FHCL. As part of the acquisition, an agreement between Lavazza and Sterling Infotech Group was signed in Mumbai.
Barista is a popular coffee chain frequented by Indians of all age groups, particularly youngsters. The brand has often been in the news on many occasions in the recent past, for its innovative on-ground campaigns.
Product info
In Goa Lavazza targeted L.B Machines and they were segmented into High end individual, 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 2.5 liters. This machine is basically targeted to individual and small restaurants and cost of this machines is Rs. 15000*
Lb 1000 This is same automatic machine which is designed by Pininfarina; this machine is compact and easy to use. No much manual work is required and it has automatic ejection of capsules It has Water tank capacity of 1.4 liters this machine cost Rs. 30000*
LB 2300 This machine is also designed by Pininfarina; LB 2300 is compact and versatile, perfect for restaurants, top hotels, conference centers, bakeries, cafs, pastry shops, tea rooms, pubs, night clubs, fast-food restaurants and office environments. This machine cost RS. 60000*
About Pininfarina
Pininfarina is an industrial design company that specializes in designing, engineering, and producing contract cars and car body parts. Pininfarina caters to such customers as Alfa Romeo, Ferrari, Fiat, Honda, Rolls-Royce, Tata Motors, and Volvo.
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
Buying Behavior
For people who are more conceuse abut lifestyle In order to gain the competitive advantage, one of the most important components is to determine and then manipulate on factors influencing buying and consumption behaviour. It is widely recognize that consumers can be considered as the fuel of any
business venture. Not only that they are the ones who purchase the products of the firm, consumers may choose particular product (brand) not just because it provides the functional or performance benefits expected, but also because it can be used to express consumers personality, social status or affiliation (symbolic purposes) or to fulfill their internal psychological needs, such as the need for change or newness. 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 Caf: - Coffee demand in restaurants is very high and it may even increase during colder seasons. 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. Secondly they want perfect coffee to serve they customer and fulfil they need. As we look at Goan restaurant they have mostly foreigners and Russian Customers and they mostly prefer strong espresso. On some levels, consumer choice can appear to be quite random. However, each decision that is made has some meaning behind it, even if that choice does not always appear to be rational. Purchase decisions depend on personal emotions, social situations, goals, and values. Prestige is another intangible need, and those concerned with status will pay for it. However, goods appealing to this type of need 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 products is typically the reverse of the standard; high-status products sell better with higher prices. Personality traits and characteristics are also important to
establish how consumers meet their needs.
PURCHASE PATTERNS
Purchase decisions are not always made on the basis of an "attribute-by-attribute" comparison (attribute-based processing). Consumers also make decisions based on an overall evaluation of their impressions, intuition, and knowledge based on past experience, or attitude-based processing. Learned attitudes also influence these decisions When it comes time to actually make purchases, however, one person in the family often acts as an "information filter" for the family, depending on what type of purchase is being made and that person's expertise and interest. The information filter passes along information he or she considers most relevant when making a purchase decision, filtering out what is considered unimportant and regulating the flow of information For example, men are more often the family members who evaluate which tools 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
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
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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