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’SSHRIKRISHNA T. POKLE COLLEGE

OFMANAGEMENT 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 SouzaI 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 INTRODUCTIONBeing 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