Marketing Mix of Barista and 7Ps (Updated 2024)

The Marketing mix of Barista analyses the 7Ps of Barista which includes the Product, Price, Place, Promotion, people, physical evidence and process of Barista. Barista Lavazza is a chain of Espresso Coffee bars hailing from India. The chain was first established in February 2000 and later acquired by Lavazza in 2007. After that, it was re-christened Barista Lavazza. The Barista Lavazza espresso coffee bar chain is headquartered in New Delhi, India. The company, founded by Pratha Duttagupta, is also operational in South Asia and the Middle East.

In 2001, a 34.3% equity stake was later bargained for Tata Coffee. However, this was later bought out by Sterling Group, the wholly-owned subsidiary company. Its most prominent competitors and target market include:

• Café Coffee Day
• Costa Coffee
• Starbucks

Barista Lavazza received the Times Group and Business Standard’ Brand of the Year’ award in 2002.

About Barista

• Type: Chain of espresso bars and cafes
• Industry: Food and beverage
• Founded: 1996
• Founder: Amit Judge
• Headquarters: New Delhi, India
• Area served: India, Sri Lanka, Maldives
• Key people: C Sivasankaran (Chairman) and Sunil Arora (CEO)
• Number of employees: 3,000+

Barista Product Strategy

Barista Lavazza procures coffee from the world of Indian roasters named Fresh and Honest, a premium brand based out of Chennai and owned by Lavazza.

The new Product Mix of Barista in 2024 is as follows (Source).

Coffee and Espresso Drinks

• Espresso: The base for many of their drinks, served plain or with a small amount of milk.
• Americano: Espresso with added hot water.
• Cappuccino: Espresso mixed with steamed milk and topped with foamed milk.
• Latte: A creamier version of a cappuccino with more steamed milk and less foam.
• Mocha: Espresso with steamed milk and chocolate, usually topped with whipped cream.
• Specialty Lattes: Flavored lattes such as vanilla, caramel, hazelnut, etc.
• Cold Brew Coffee: Steeped for an extended period for a smoother, less acidic taste.
• Iced Variants: Iced versions of most of their hot coffee drinks.

Tea and Other Beverages

• Loose Leaf Teas: A selection of black, green, herbal, and specialty teas.
• Chai Latte: Spiced tea mixed with steamed milk.
• Smoothies: A range of fruit and other flavored smoothies.
• Hot Chocolate: Classic hot chocolate, sometimes available in different flavors.

Food Items

• Pastries and Baked Goods: Croissants, muffins, cakes, and cookies.
• Sandwiches and Wraps: A variety of vegetarian and non-vegetarian options.
• Salads: Fresh salad options for a healthier meal choice.
• Breakfast Items: Bagels, breakfast sandwiches, and sometimes local or regional specialties.

Seasonal and Limited-Time Offers

Barista often introduces seasonal drinks and food items in stores, such as pumpkin spice lattes in the autumn or special drink items for the holiday season.

Merchandise

• Coffee Beans: Packs of their signature coffee blends to brew at home.
• Coffee and Tea Accessories: Mugs, French presses, tea infusers, and other brewing accessories.

Barista Place Strategy

Barista believes in catering to and expanding its customer base through strategically located outlets. Therefore, most of its outlets are positioned in and around Malls, Cinema halls, Colleges, Offices, etc. The bra d caters to many customers and has a generic appeal. As such, the outlets’ locations are positioned to cover the customer base adequately.

Here’s the place strategy of the Barista.

1. Strategic Location Selection: Barista chooses locations with high foot traffic, such as shopping malls, commercial streets, and near educational institutions, to maximize visibility and accessibility to a broad customer base.
2. Expansion into Tier 1 and Tier 2 Cities: Focusing on expansion in both metro and emerging cities, Barista aims to tap into growing markets and cater to urban consumers seeking premium coffee experiences.
3. Franchise Model for Wider Reach: By adopting a franchise model, Barista has rapidly expanded its presence across various regions without significant capital expenditure, allowing for localized management while maintaining brand standards.
4. Presence in High Visibility and Convenience Spots: Apart from standalone cafes, Barista establishes outlets in airports, corporate parks, and train stations to capture the on-the-go consumer segment and increase brand exposure.
5. Adaptation to Local Preferences: While maintaining a consistent core offering, Barista adapts its cafes’ ambiance and sometimes menu items to fit local tastes and preferences, enhancing customer experience and engagement in diverse markets.

Barista Pricing Strategy

Barista’s pricing strategy was based on ‘Skim Pricing’. This means that they had high prices and started at a higher price, thereby skimming off people’s pockets. Companies started lowering their prices as competition started building, with more players doing well in the industry. By now, the company also had certain economies of scale due to larger output, which made the lowered prices economically feasible. Today, Barista caters to different segments of society with a premium pricing strategy, just like its competitor, Café Coffee Day.

Barista employs a multifaceted pricing strategy that aligns with its brand positioning as a premium yet accessible coffee chain, aiming to offer high-quality coffee products while ensuring value for money for its diverse customer base. Here’s a detailed look into the Barista’s pricing strategy:

1. Value-Based Pricing: Barista sets its prices based on the customer’s perceived value of its products. By focusing on the quality of ingredients, the ambiance of its cafes, and the overall customer experience, Barista justifies a premium over standard coffee shop prices, targeting consumers willing to pay more for a superior coffee experience.
2. Competitive Pricing: In markets saturated with coffee shops, including global giants and local cafes, Barista carefully analyzes competitor prices to ensure its offerings are competitively priced. This strategy helps Barista remain a strong contender in the specialty coffee market by attracting price-sensitive customers without compromising its premium image.
3. Psychological Pricing: Barista often employs psychological pricing tactics, such as pricing items just below a whole number (e.g., $4.99 instead of $5.00) to make the cost appear less to the consumer. This subtle method can influence purchase decisions, making products seem more affordable while maintaining the brand’s premium appeal.
4. Product Line Pricing: Barista uses product line pricing to offer various products at different price points, catering to a broad spectrum of customers. From basic espresso shots to more elaborate and higher-priced specialty drinks, this strategy allows customers to choose products that fit their budget while encouraging upgrades to more premium options.
5. Promotional and Seasonal Pricing: To attract more customers and boost sales during off-peak times or seasons, Barista introduces promotional pricing strategies. These can include limited-time offers, seasonal discounts, and loyalty program benefits, incentivizing customers to try new products or visit more frequently, thus fostering brand loyalty and increasing overall sales volume.

Barista Promotion Strategy

Around 65% of the market share of Barista’s customer base is in the 15-30 age group. The rest of the market share of the customers belong to the 30 plus to 60 age group.

Barista’s brand positioning and marketing give the impression that the place is meant for people who genuinely enjoy drinking coffee and want intellectually stimulating conversations with like-minded people over coffee, along with some quiet time. Therefore, it is advertised as a place ‘where the world meets’ and is mainly frequented by students and professionals where they can sit, have coffee, and discuss myriad topics.

The services, stores, and outlets are based on European cafes. The name ‘Barista’ is Italian and means ‘Bartender’.

The service is of the self-service variety, where the customer places his order at the counter and collects coffee products by himself once they are ready. The décor of the café is vibrant with the interiors, logos, and images in bright colors like red. The red color exudes the idea of superior quality of warm coffee. Even the literature provided by Barista is in line with its brand image.

The company relies on a unique “Barista Coffee Card” to target customers and promote its product. The card entitles customers to one complimentary hot beverage for every seven purchases. This facility is available in all Barista stores; no special membership is required. Barista also believes in forming unique alliances and collaborations with other brands to increase its sales and customer base. For example, it has entered a deal with LeoMattel’s business to provide board games in the outlets.

Some Recent Video ads and Print ads for Barista are:

Barista story

Barista People Strategy

The “People” component of the service marketing and advertising mix for Barista is a crucial aspect that directly influences customer satisfaction, loyalty, and overall brand perception. Here’s how Barista emphasizes the “People” factor in its service marketing and advertising strategy:

1. Employee Training and Development: Barista invests significantly in comprehensive training programs for its staff, ensuring they possess the technical skills required for coffee preparation and customer service skills. This includes training aristas to understand the nuances of coffee, brewing techniques, and customer engagement strategies, aiming to enhance the overall customer experience through knowledgeable and friendly service.
2. Customer-Centric Staff: Employees at Barista are selected based on their ability to provide exceptional service, with a focus on friendliness, empathy, and willingness to go the extra mile for customers. This people-first approach in hiring ensures that every interaction between the staff and the customers is positive, making the cafe experience more personalized and enjoyable.
3. Employee Empowerment: Barista empowers its employees by giving them the autonomy to make confident decisions on the spot, such as resolving minor complaints or customizing orders to accommodate customer preferences. This level of empowerment boosts employee morale and job satisfaction and leads to faster and more effective service recovery, directly impacting customer satisfaction.
4. Brand Ambassadors: Employees are encouraged to become brand ambassadors, not just within the confines of the cafe but in their everyday interactions. This means they embody the brand’s values and culture, promoting Barista’s commitment to quality and service excellence in every customer interaction, whether inside or outside the cafe.
5. Feedback Mechanisms: The Barista implements robust feedback mechanisms, allowing continuous communication between customers and staff. This can include direct feedback at the point of sale, online surveys, or suggestion boxes within the cafes. By actively listening to and acting on customer feedback, Barista ensures that its people are always aligned with customer expectations and needs, fostering a culture of continuous improvement.

Barista Process Strategy

The “Process” component of the service marketing mix for Barista refers to the operational and service delivery methods that create the customer experience. This includes everything from the order-taking procedure to the coffee delivery and the cafe’s overall customer journey. Here’s a breakdown of how Barista’s process enhances its service marketing mix strategy:

1. Streamlined Order and Delivery System: Barista employs a simplified process for taking orders and delivering them to customers. This often involves using technology, such as digital menus, mobile ordering, and payment systems, to reduce wait times and improve order accuracy. The goal is to make the purchasing process smooth and efficient, enhancing customer satisfaction.
2. Quality Control Procedures: At the heart of the Barista’s process is strict adherence to quality control at every step of the coffee brewing and food preparation journey. This includes selecting high-quality beans, ensuring the freshness of ingredients, and following precise preparation methods. Regular audits and checks are part of maintaining consistent quality across all outlets.
3. Customer Service Protocols: Barista trains its staff in specific customer service protocols that guide customer interactions, from greeting them as they enter the cafe to handling complaints or feedback. These protocols are designed to ensure that all customers receive a high standard of service that is consistent across all Barista cafes.
4. Environmental and Sustainability Practices: Barista’s process involves integrating environmental and sustainability practices into its operations. This can include waste reduction, recycling, and sourcing ingredients from sustainable and ethical sources. These practices contribute to the global sustainability effort and appeal to environmentally conscious consumers.
5. Personalization and Customization: Recognizing the importance of personalization in the coffee experience, Barista’s process allows for a high degree of customization in its beverage and food offerings. Customers can modify their orders based on preference, facilitated by the staff’s training in accurately understanding and executing custom orders.
6. Feedback and Continuous Improvement: Barista has a process for collecting and analyzing customer feedback, whether through direct interaction, digital platforms, or social media channels. This feedback is then used to continuously refine and improve the service delivery process, ensuring that the brand remains responsive to customer needs and preferences.

Barista Physical Evidence Strategy

The “Physical Evidence” component of the service marketing mix for Barista encompasses all the tangible and intangible elements that customers interact with, which help to shape their perception of the whole brand image. This aspect of the company’s marketing strategy is crucial for service-based businesses like Barista, as it significantly influences customer experience and satisfaction. Here’s how Barista leverages physical evidence in its service marketing strategy:

1. Cafe Ambiance and Design: Barista carefully designs its cafes to create a warm, inviting atmosphere that encourages customers to relax and linger. The use of comfortable seating, ambient lighting, and aesthetically pleasing decor reflects the brand’s commitment to providing a premium experience. The physical layout of the cafes is also designed to facilitate smooth customer flow and efficient service delivery.
2. Branding Elements: The visual identity of the Barista, including its logo, color scheme, and branding materials, is consistently applied across all touchpoints, from cafe signage to packaging and staff uniforms. These branding elements are crucial physical evidence that helps build brand recognition and reinforce the premium positioning of Barista in consumers’ minds.
3. Cleanliness and Hygiene: In the food and beverage industry, cleanliness and hygiene are non-negotiable aspects of physical evidence that directly impact customer trust and satisfaction. Barista maintains high stan ards of cleanliness in all areas of its cafes, from the preparation counters to the seating areas, restrooms, and exterior spaces. This commitment to hygiene also extends to the presentation of food and beverages, ensuring that everything served looks as good as it tastes.
4. Quality of Serve Ware and Packaging: The quality and design of serve ware (cups, glasses, plates) and packaging materials (takeaway containers, napkins, bags) are carefully chosen to align with Barista’s premium image. These items are functional and are physical evidence of the brand’s attention to detail and commitment to sustainability when eco-friendly materials are used.
5. Technology and Equipment: Modern technology and high-quality coffee brewing equipment are other physical evidence visible to customers. This includes espresso machines, grinders, and brewing systems often showcased within the cafe. Their presence underscores Barista’s dedication to delivering superior coffee quality and innovation.
6. Digital Presence and Online Platforms: Although not physical in the traditional sense, Barista’s digital presence—through its website, mobile app, and social media channels—serves as virtual physical evidence. These platforms’ design, functionality, and content reflect the brand’s values and quality standards, providing a cohesive experience that complements the physical cafe environment.

Liked this post? Check out the complete series on Marketing Mix