Barista

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History of Barista Barista is a coffee retailing chain which started operations in India in February 2000. It was promoted with an initial capital of Rs. 20 Crores by Java Coffee Company Ltd., a company owned by the Turner Morrison group of Lacoste fame. Thereafter Barista has undergone several ownership changes as well as changes at the helm. Vision & Mission Vision ã Where do we want to lead the organization; what do we want to achieve in terms of position. Mission ã the meaning of a organi
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    History of Barista  Barista is a coffee retailing chain which started operations in India inFebruary 2000. It was promoted with an initial capital of Rs. 20Crores by Java Coffee Company Ltd., a company owned by theTurner Morrison group of Lacoste fame. Thereafter Barista hasundergone several ownership changes as well as changes at thehelm.   Vision & Mission Vision ã Where do we want to lead the organization; what do we want toachieve in terms of position . Mission  ãthe meaning of a organization (work will be more fun even for you if you give it higher sense rather then only making money) Products ã Coffee: - 1.The Barista House Blend2.Steaming hot espressos3.Cappuccinos4.Lattes made from the finest Arabica beans5.Fruit smoothies6.Chilled granites7.Cold and frozen coffees ã Music ã Cake   Barista in Numbers  COUNTRYINDIASRI LANKAUAENUMBER OF CITIES151 ( Colombo)1 ( Dubai )STORES10632 Price: - The average cost of coffee at Barista is nearly 10Times that of a localrestaurant’s coffee.The price structure has remained since and Internationalcoffee blends, for example, are priced at Rs 45 now, against Rs 80-90 earlier. Tomaintain the brand exclusivity, new outlets called Barista Crème, were started in2005 Place :- Barista has three types of store formats – Standalone Cafes (between800 and 1000 sq feet), shop-in-shop cafés (about 200 sq feet) and coffee kiosksat airports and malls.The shop-in-shop cafés are within the premises of partner companies such as large bookstores and premium retail chains .  PROMOTIONS Barista started out with no publicity. They did all the talking through posters, tentcards and ambient graphics within their stores that reflected everything theywanted to communicate. Barista also has an in house take-away magazine, BrewPrint, which has trivia about coffee apart from gamesand articles to enthusecustomers about coffee drinking apart from promoting Brand Barista . Positioning Pre-acquisition, Barista had need based positioning, catering primarily to itsspecified target customers. By introducing Barista Crème and reducing pricesacross espresso cafés, it also positioned itself on basis of variety. Postacquisition, Barista will position itself on all three bases following the Lavazzastrategy. The vending machines and different café formats form the basis for penetrating different segments and thus capitalize on variety based positioning. At the same time, strategy to enter tier II cities with vending machines only,would introduce access based positioning in the Barista strategy.  SWOT analysis:- Strengths:-  1.Quality products2.Successfully test marketed in Australia3.Offer alternative to e-commerce ventures4.Skilled and committed team5.High margins on beverage appliances6.Outsourcing7.Low set up costs. Weaknesses:- 1.Reliance on one client initially2.Exposure to fluctuating stainless steel costs3.Management team has not worked together for long period4.Board not yet finalized5.Sales team not yet in place6.Limited US experience. Opportunities:- 1.Expanding coffee market2.Multiple repeat purchases of product for other outlets operated by initial purchasers3.Unrestricted operating hours (MVU)4.Increasing awareness of specialty coffees5.Other markets (domestic and coin vending)6.Scope for innovation in existing market. Threats:- 1.Imitation products2.Window of opportunity may be limited3.High number of competitors (MVU)4.Adverse reaction to soluble coffee5.Filtered coffee firmly established in US.
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