In the last two years, caferoma’s share of the quality ground coffee market has declined by almost 30 % (see chart). there are several reason for this: brand loyalty: consumers have become less loyal to brands and more price conscious. they are willing to buy lower-priced coffee product. price: supermarket are selling, under their own label, similar products to caferoma at much lower prices. Copycat producto: competing products of italian-style ground coffee are selling at price 30 to 40% lower than caferoma Brand Image: the caferoma brand no longer seems to be exciting and up-to-date.
Repositioning the products: change caferoma’s image to appeal to a different market segment. (which segment? what changes to taste, quality, packaging, logo labelling, distribution?)
reduce the price by, say. 20% to 30% so that it is in the medium range of price.
develop a new advertising campáing to relaunch the brand.
sell caferoma, with small changes to product, under different brand names at lower prices.
own brand label product: allow supermarket to sell Caferoma under the supermarket own brand label’s. Continue to market the Caferoma brand at the same time.
A new product: Bring out an instant coffee or decaffeinated product under the caferoma brand as soon as possible.
Stretching the brand: Allow some makers of coffee equipament (cafetieres, percolators, coffee, machines, etc.) to use the caferoma brand on their goods, for a licensing fee.
Claudia, Caferoma’s Marketing Manager, has some recent new from one of Caferoma’s biggest customers, Majestic Hotels, a major European hotels chain.
She discusses the news with Caferoma’s Sales Director, Pietro. Listen to their conversation. how does this new inormation affect your decisions?
write an e mail to Caferoma’s Managing Director, Mario Cumino. Summarise what action you agreed to take at the meeting to solve Caferoma’s problem Explain
as members of PEFD’s marketing team, hold an informal meeting. consider the advantages and disadvantage of each solution. then decide what to do stop the decline in the product’s market share and to increase profits