кейси для індивідуальної роботи 2014 н.р. / LAVAZZA SPA, LUIGI IN HOT DRINKS
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OPERATIONS
Italy, Brazil and India give Lavazza hope of global spread
Lavazza itself claims to have a market presence with its distributors and subsidiaries in over 90 countries around the world. The company reports turnover exceeding €1.2 billion in 2011 operating “worldwide” in the Home and Away-from-Home segments. The company has six production plants worldwide.
Lavazza has four production plants in Italy: two coffee roasting plants in Turin and Verrès (Val d’Aosta); a capsule plant in Gattinara (Vercelli); and a decaffeination plant in Pozzilli. The company produces one million quintals of roasted coffee and more than two billion capsules each year. The company claims to purchase around 230 million bags of green coffee per annum. In its domestic market, Lavazza, with five Italian subsidiaries, employs more than 1,600 people.
At the end of the 1970s, Lavazza began to expand its activities across Europe. By 2005, the company operated through seven subsidiaries in France, Germany, Austria, the US, the UK, Spain and Portugal. In 2005, the company also opened its eighth global subsidiary, in Brazil, Lavazza do Brasil, based in Rio de Janeiro. In 2007, Lavazza acquired Barista (the second largest coffee shop chain in India) and French & Honest Café Limited. These acquisitions will allow the company to acquire a leading position in the Indian coffee category and to strengthen its global position. The company intends to double the number of Barista locations over the next three years.
In 2011, Lavazza announced it would be shifting its Indian manufacturing facility from Chennai to Sri City in Andhra Pradesh. The new €20 million, 40,000 sq m facility will employ 150 people and will be scaled up to process 1,600 tonnes per annum by its third year of operation. The new facility will initially serve the Indian sub-continent, but will go on to serve as the regional hub for the entire Asia Pacific region.
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HOT DRINKS: LAVAZZA SPA, LUIGI |
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STRATEGIC EVALUATION
COMPETITIVE POSITIONING
MARKET ASSESSMENT
GEOGRAPHIC AND CATEGORY OPPORTUNITIES
BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS
RECOMMENDATIONS
BRICs and pods
Look for expansion opportunities in Brazil and Russia
Lavazza should consider delving further into emerging markets. In particular it should look to the Brazilian and Russian markets where growth in coffee is expected to be strong. The company's relative absence from BRIC markets will create a drag on its global performance if it does not rectify this. It could consider a move in Russia similar to those it has undertaken in Brazil and India where it has acquired companies to gain a toehold.
Do not disregard instant coffee
While instant coffee goes against Lavazza’s premium positioning, it is crucial that the company diversify away from Western Europe and in particular the Italian market. In many of the company’s target markets such as India, instant is predicted to outperform fresh coffee in absolute value terms over the forecast period. There is an opportunity to benefit from trading up to more premium instant coffee variants
Remain in the race for fresh coffee pods
Fresh coffee pods represent one of the most exciting developments to occur in hot drinks in recent years and it is essential that Lavazza competes strongly in this category. The company must ensure that its whole pod delivery system is adequately marketed as Nestlé appears to be winning the war even though its machines are often more expensive than other machines in the pod systems category.
Target retail market in India
Lavazza has made India the focus of much of its investment. It has focused on the foodservice channel thus far, but it has obtained a sufficiently high brand profile to begin to target the retail market. Its tentative move into coffee pods represents less of an immediate opportunity than obtaining listings in supermarkets/hypermarkets.
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HOT DRINKS: LAVAZZA SPA, LUIGI |
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