Barista Case Study

Submitted by: Sandeep Rajeev, Preeti Garg, Radhika Banerjee, Mohulima Sen

Barista Story so far

Lavazza entered Indian market in 2007 by buying stakes of Barista chain. Had plans of doubling the existing network from 230 chains in mid 2011 to 500 branches by 2014. Had plans of targeting locations like highways and petrol stations. Opened Expression store in 2011 positioned at the premium segment Main strategy was to target large cities. CuRRENT Market Scenario Barista currently has a market share of 15% in India Caf Coffee Day has a market share of 60% in India Tata Starbucks and Dunkin Donuts are the new players to have entered the Indian Market

Problems :
Ownership Frequent change in ownership. Losing focus of market.

Increase in competition
Cheaper schemes from competitors like costa coffee and CCD. Lesser number of outlets than competitors.

Issues with outlets Lesser number of outlets. E.g.- CCD aiming to expand its number of outlets to 2000 by 2014. Location of outlets.

Services
Lack of training to the staff. Self-service leading to dissatisfaction.

Menu
Lack of innovative menu and no variety in products. No items appealing to Indian market.

Strategy
Unimpressive ambience. No proper targeting of customers. No advertisements.

Proposed Solutions:

Increase the number of outlets

Revamp the menu- Create food relevant to Indian market Improve marketing strategies Improve ambience

Improve the location of outletsColleges & offices

Shift coffee bean processing to India

Improve hospitabilityStaff behavior.

Targeting & segmentation of market

Facts about Barista: The base of all coffees at Barista Lavazza is freshly brewed espresso made from 100% Arabica beans only. The plectrum shape of the original logo and the guitar being a popular Barista Lavazza icon was purely coincidental. Barista Lavazza does not advertise in mainstream media. It uses its espresso bars to communicate all that it has to and relies on word of mouth to do the rest Barista Lavazza while a hang out joint for coffee connoisseurs and seekers of indulgence also serves a range of health and low calorie beverages and foods. In 1895, Luigi Lavazza purchased Paissa Olivero, a tiny grocery store in Turin, for 26,000 Italian Lire, about 20 US$. He turned it into a $900 million empire. Today, Lavazza has cafs worldwide and also owns the Barista Lavazza chain of espresso bars.

Thank You