Lavazza Coffee Marketing Plan: Improving Market Share (2022-2025)

This report provides a comprehensive marketing plan for Lavazza Coffee, an Italian coffee manufacturing organization. It analyzes the company's current marketing mix, including product, price, place, and promotional strategies. The report also develops a detailed marketing strategy using the Ansoff matrix and BCG matrix. Furthermore, it explores a customer-driven strategy that involves segmentation, targeting, positioning, and differentiation. The objective of the marketing plan is to strengthen Lavazza Coffee's position in the current market and achieve organizational goals within a defined timeframe, focusing on lead generation, brand awareness, sales enhancement, and improved return on investment.

Marketing Plan
Lavazza Coffee

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Marketing mix.............................................................................................................................3
Marketing analysis.......................................................................................................................5
Marketing developing strategy....................................................................................................6
Customer driven strategy.............................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing plan is defined as the operational document that contains various advertising
strategies that are business planning to implement with the objective of lead generation and reach
specific target market. It helps business to determine its target market, ways to reach them, at
which price products or service should be sold as well as organisation measure its marketing
efforts. Aim of this report is to analyse organisational marketing strategy and develop efficient
marketing plan. In this report Lavazza Coffee is taken into consideration which is Italian Coffee
manufacturing organisation. It is founded in the year of 1895 by Luigi Lavazza. It is initially run
as the small grocery store but currently administered as the third or fourth generations of
Lavazza family. Its products are the whole bean coffee and merchandise. This report covers
marketing mix of organisation that includes product, price, place and promotional strategies.
Along with that, detailed marketing developing strategy that contains Ansoff matrix and
marketing analysis BCG matrix are explained. Furthermore, customer driven strategy that
involves segmentation, targeting, positioning and differentiation are mentioned in the context of
Lavazza Coffee.
Objectives of Marketing Plan
Objective of this marketing plan is to strengthen Lavazza Coffee positioning in current market
and attain all determined goals of organisation is determined time frame.
• The generate more leads
• To generate brand awareness
• To enhance sales and revenue of Lavazza Coffee
• To improve return on investment of marketing plan
TASK
Marketing mix
Marketing mic is defined as the actions as well as tactics that are used by business to promote
organisational products and services in specific market place. There are various components of
marketing mix such as product, price, place and promotions that helps organisation to take
efficient decisions and develop effective marketing plans (Archila, 2021). Marketing mix
components in the context of Lavazza Coffee are explained below:

Product: Products are defined as the commodity that are produced by the organisation
for satisfying all needs and demands of customer. Lavazza Coffee organisation provides various
products and services to its customers such as Lavazza Crema, Lavazza Espresso, Lavazza blue,
Lavazza QUALITA ROSSA, Latte, Flat White and various other variety of coffee. Lavazza
Coffee identifies needs, demand and preferences of customers that provide them quality products
that satisfy them and retain with organisation for longer period of time. Along with that,
respective organisation also provides ground coffee, coffee beans and compatible capsules that
helps organisation to gain higher market share and customer base.
Price: Pricing of product is considered as the most important part of marketing mix and it
is related to amount of goods on which consumer are ready to purchase products and services.
Lavazza Coffee set affordable prices for its products in order to attract economies and social
class (Bisson, and et. al.,2020). Respective organisation analyses competitors pricing strategy
and customers perspective than set prices accordingly that helps business to gain competitive
advantages. Lavazza uses price skimming strategy for establishing appropriate pricing of its
coffee products.
Place: Place is defined as the physical space that are accessible for potential buyers to
purchase organisational products and services. Lavazza Coffee operates number of retail coffee
shop that offers traditional coffee drink, whole bean and ground coffee to customers for home
use. Organisation has its own official website and provide online delivery option to customers
that helps business to reach higher number of customers and enhances overall sales and
profitability. Thus, Lavazza Coffee uses both online as well as offline mediums to provides its
coffee to targeted customers.
Promotion: Promotions are defined as the marketing communication process that helps
business to publicize its products and services among customers. Lavazza Coffee uses online and
offline platforms to spread awareness in market regrading products quality and features. Social
media marketing promotions are widely used by organisation that enables it to reach wide range
of customers. Although, promotional strategy of organisation depends on the creation of value in
the minds of customers (Bradley, and Botchway, 2018). Social media helps business to analyse
customer’s needs, demands and their perspective towards organisation that helps business to
develop effective strategies to attarct potential customers.

Marketing analysis
Market analysis is considered as the evaluation of particular market place with the
objective of identifying its dynamics, customers purchasing pattern, customer segments and
situations of competitors that help business to develop effective planning and strategies that
enable business to attain determined goals and objective in best possible manner. Lavazza Coffee
organisation conducts market research for gaining all information regarding market trends and its
potentially in current market place.
BCG matrix: BCG matric is also known as growth share matrix that is undertake by
organisation for assessing current state value and potentiality of organisational products and
services in existing market place in order to take decisions and gain competitive advantages over
other competitors. Organisation take decisions regarding which product or unit business should
continue, sale or discontinue to survive in competitive business environment (Candelo,
Casalegno, and Civera, 2021). Lavazza Coffee provides range of products to customers so; BCG
portfolio helps business to estimate portfolio on the bases of its product life cycle. All categories
of BCG matrix in the context of Lavazza Coffee are explained below:
Stars Question mark
 Coffee
 Tea
 Deserts
 Paper cups
 Mugs, cups
Cash cow Dogs
 Calendar
 Coffee machine
 Umbrella
Star: Star products are category of business products that are profitable for business as well as
required lot of investment. These products create growth and development opportunities for the
business and lead it towards gaining competitive advantages. Coffee, teas and desserts are fall in
star category of Lavazza Coffee organisation. Respective organisation invests high in these
products because it requires plantation and technology for production process.
Question mark: Question mark is defined as the category of products that contains high low
share of high market growth, consumes organisational higher resources as well as do no generate
too much profits for the business. Lavazza Coffee organisation’s question mark category product

is paper cups because organisation has produced then through the process of customisation and
they are not brining desirable profit for the organisation. In this situation Lavazza Coffee has
unclear regarding either organisation losses money on producing these products or having on
break-even point. It is important for business to analyse products potentiality and take
appropriate decision.
Cash cow: Cash cow are defined as the calendars products that are produced by the organisation
each year with the assistance of fashion icon, musicians and others. Lavazza Coffee has spent
large amount of investment in the process of producing colander’s and coffee machine but these
products facilitates organisation through generating higher profits than invested amount (Chitty,
and et. al.,2017) . Coffee machine come with various coffee packets if customers want to
purchase Lavazza Coffee machine than they have to purchase Lavazza Coffee packets that
enhances overall profitability and functionality of business in competitive business environment.
Dogs: Dogs are the product category that contains low market share and growth potentiality.
Lavazza Coffee do not generate desirable profits for customers so it is important for the
organisation to get rid from these products to maintain effectiveness in competitive business
environment. Umbrella that are sold by Lavazza with its original logo is fall in this category. It
helps organisation to promote its products and services otherwise it will not work for business
because now these days, customers are concentrating on purchasing main products of Lavazza
Coffee instead of side products such as umbrella.
Marketing developing strategy
Market development strategies are considered as the growth-related strategies because it helps
business to take decisions and develop strategies for enhancing organisational product sale in
new targeted customers. For developing effective market strategy, organisation need to conduct
proper market research than segment market into smaller parts and after that target most suitable
and effective market segment that contains growth and development opportunities (Grabs, 2017).
It is important for Lavazza Coffee to implement effective strategy that lead business in the
direction of growth and development.
Ansoff Matrix: Ansoff matrix is considered as the tool that is undertake by business for
making decisions and develop planning in order to attain the objective of development in current
competitive business environment. It includes various strategies that are explained below:

Figure 1 Ansoff matrix, (2022)
Market penetration: Market penetration is defined as the growth strategy that is related to
selling organisational current or existing products and services in existing market in order to
improve market share and attract higher number of customers. Through executing this strategy,
business can improve usage or sales of its products in existing customer base. For gaining
competitive advantages, it is important for the business to set competitive prices, conduct
promotional and advertisement campaigns and provide quality products to customers. There are
also some attractive offers and discounts are provided by organisation to improve business sales.
Lavazza Coffee introduces loyal-customer programmes, use promotion bases strategy, temporary
reduce cost as well as conduct coffee-testing in marketing along with the presentation of coffee
machines that creates customers interest in organisational offering.
Market development: This strategy consists providing organisational existing products and
services in new market. In this strategy, it is important for business to gain all important
information of new market trends, customer’s needs and demands through conducting market
research campaigns. Business also needs to conduct attracting marketing campaigns that attract
new market customers towards business products and services (McAdoo, 2020). Lavazza Coffee
planning to expand its business in other countries and develop institutional market that helps
business to maintain global reach and attract larger number of customers that provides
competitive advantages to organisation.
Product development: In this strategy, business concentrates on providing new, innovative
and differentiated products in organisational current market place with the objective of diversify

business in market and enhance market share. Before producing new or innovative products,
business need to analyse competitors’ products and market demands. Advertisements plays most
important role in spreading awareness regarding organisational new product in market and gain
higher customer base that provides competitive advantages as well. Lavazza Coffee introduces
new types of coffee, cheaper coffee machine as well as conducts sales promotion of new
products along with its existing products and services.
Diversification: Diversification is the strategy that is related to offering totally new products and
services in new market place. This strategy can create risk for business both customers and
market are unknown for business so, business cannot make efficient and proper decisions
(Murray, 2021). In this strategy, it becomes most important for the business to analyse customers
preferences and current market trends in order to serve quality products to customers as per their
requirement.
Lavazza Coffee organisation should adopt market penetration strategy because it helps
business to gain higher market share through attracting existing customers to use organisational
products. Respective organisation needs to conduct marketing campaigns for enhancing
awareness of business products in existing market. Organisation also provides various offers to
customers that attract them towards organisational offering and provide competitive advantages.
Customer driven strategy
Customer drive strategy is defined as the strategies that are related to the marketing activities that
help organisation to meet all expectations as well as needs of customers in appropriate manner. It
contains specific, precise and guideline and goals that organisation wants to accomplish. It is
important for the organisation to segment customers and target most suitable segment that
contains highest life time value and development opportunity. Lavazza Coffee analyse whole
market and divide them into specific market segments, make differentiation priority, get
customers feedback, put customers first than products, satisfy customers needs through provide
quality products (NEACŞU, 2018). All these actions of business facilitates it to enhances
customer’s loyalty and create strong image of business in current competitive business
environment. Components of customer-driven strategy are mentioned below:
Segmentation: Segmentation is related to dividing whole market into smaller segments on
the bases of their similarity and related aspects. Lavazza Coffee segment customers on the bases
of their age, earning capacity, educational background, profession, lifestyle and choices. Major

customers of organisation are the people who are looking for coffee and snakes at a hangout
place. Segmentation of customers or market helps, organisation to target most potential segment
that lead business towards growth and development. Thus, Lavazza Coffee uses behavioural,
psychological segmentation to divide market.
Targeting: Targeting is defined as the selecting specific segment of customers that
contains higher growth and development opportunities. Lavazza Coffee targets youth age
between 15 to 35 and middle as well as higher income group customers. The unique taste
requirement allows coffee producers to create different blends from dark roasts to simple
Arabica. Organisation targets professionals and collage going students (Perriniand Russo, 2019).
Children’s are not targeted by the organisation although various products are available for
children’s at coffee shop. Lavazza Coffee concentrates on providing quality and desirable
products for targeted customers that enhance overall organisational sales and profitability.
Positioning: Positioning is related to various aspects such as high quality and high price,
low variety and high price, high variety and low price as well as low variety and higher price.
Lavazza Coffee ensures that high variety and quality products are available to customers at lower
prices that maintains organisational strong positioning in market. Organisation conducts various
advisement and promotional campaigns that enhances brand awareness in market and attract
customers towards organisational offerings.
Differentiation: Differentiation is defined as the aspect that differentiate organisation
from other competitors in market that provides various competitive advantages to organisation.
Lavazza Coffee differentiate its brand on the bases of product range and pricing strategy. As
respective organisation provides variety of beverages and snakes at higher prices that attracts
higher number of customers towards organisation (Ruiz Estrada, Moug, and Ating, 2019).
Lavazza Coffee also involves in various activities such as merchandise, coffee beans for home
use that differentiate business from other organisations. Organisation also conducts various
marketing strategies that helps organisation to reach wider customers and spread awareness
organisational products in market.
CONCLUSION
As per above report, it can be concluded that appropriate and suitable marketing plan helps
business to establish effective marketing strategies and implement then in systematic manner in
order to attain determined goals and objective in specific time period. Marketing mix is the

concept that help organisation to provide suitable products to customers at affordable prices that
attract them. In current business environment, various advertisement and promotional campaigns
are conducts that facilitates business through enhancing market share and customer base. It is
important for the organisation to analyse customers’ needs and demands than provide them
products and services accordingly that maintains organisational unique positioning and help to
attain the objective of higher market share and customer base. Organisation need to analyse all
strategies and adopt best one to gain competitive advantages over other competitors.

REFERENCES
Books and Journals
Archila, D., 2021. A Strategic Analysis of the Specialty Coffee Business in Germany (Doctoral
dissertation, University of applied sciences).
Bisson, and et. al.,2020. A new idea of coffee: the concept of cocktail cappuccino.
In EDULEARN20 12th International Conference on Education and New Learning
Technologies July 6th-7th, 2020 (pp. 7110-7115). IATED Academy.
Bradley, O.J. and Botchway, G.O., 2018. Communicating corporate social responsibility (CSR)
in the coffee industry: an examination of indicators disclosed. Sustainability
Accounting, Management and Policy Journal.
Candelo, E., Casalegno, C.G. and Civera, C., 2021. Digital transformation or analogic
relationships? A dilemma for small retailer entrepreneurs and its resolution. Journal of
Strategy and Management.
Chitty, and et. al.,2017. Integrated Marketing Communications with Online Study Tools 12
Months. Cengage AU.
Grabs, J., 2017. The rise of buyer-driven sustainability governance: emerging trends in the global
coffee sector.
McAdoo, J.H., 2020. Strategies Independent Coffee Shop Owners Use to Gain a Competitive
Advantage (Doctoral dissertation, Northcentral University).
Murray, A., 2021. How Irish Coffee SMEs Survive and Grow in a Globalised World (Doctoral
dissertation, Dublin, National College of Ireland).
NEACŞU, A.N., 2018. QUALITY MANAGEMENT ON THE COFFEE MARKET. Bulletin of
the Transilvania University of Brasov. Series V: Economic Sciences, 11(1).
Perrini, F. and Russo, A., 2019. The Roots of Corporate Sustainability: the Art of Managing
Innovation and Relationships by illycaffè. In Managing Sustainable Business (pp. 363-
394). Springer, Dordrecht.
Ruiz Estrada, M.A., Moug, P. and Ating, R., 2019. The evaluation of the Coffee Market under
the Application of the Coffeeconomics index. Available at SSRN 3362204.