INDUSTRIAL UNIVERSITY OF HOCHIMINH CITY UNIT CASE STUDY MAIN CONTENT ND U O GR K C BA P RO S M E BL S T A ST E L B I S S O S P N O I T U L SO E D U L C N O C BACKGROUND • • • • • Owned by PEFD Based in Italy Image: Italian-style coffe Taste: strong and slightly Costs: more than other ground coffee product II PROBLEMS  Market share has declined by almost 30%  Consumers have become less loyal to brands and more price conscious  Supermarkets started selling coffee brands under their own label at much lower prices  Other coffee are selling at prices 30 to 40% lower than Caferoma  Brand image no longer seems to be exciting and up-to-date III STATS  Caferoma‘s market share decreased significantly in the last year III STATS  Sales outlets as a percentage of Caferoma sales IV POSSIBLE SOLUTIONS  Repositioning the product Proposal Benefits Pitfalls A total change of Makes the product image appropriate to more eye-catching and difficult to change and the modern market more modern trends Too expensive and perhaps the loss of customers who liked the old fashioned Caferoma IV POSSIBLE SOLUTIONS  Pricing Proposal Benefits Pitfalls Reduce the pricing If Caferoma reduces Decrease in the profit which is more equal to prices it can attract margin the price of market more potential competitors customers IV POSSIBLE SOLUTIONS  A new product Proposal Benefits Pitfalls Launching a new This gives customers the But besides that there are instant coffee or a novelty stimulates downside is offering decaffeinated under consumers find products completely new products such the Caferoma brand and to improve old as a user know about it and products and quality coffee changing the brand has been taste and appearance will make users more entroyable available since long easy IV POSSIBLE SOLUTIONS  Multiple brands Proposal Benefits Pitfalls Selling of new lower Gives customers the Quality of the product priced Caferoma choice in trying may down products with different different products and brand names different flavors IV POSSIBLE SOLUTIONS  Own brand label products Proposal Benefits Pitfalls Allows to sell Caferoma Use of the already popular The customers products under the supermarket brand names, wouldn’t know that supermarket‘s brand increase of sales and they are buying an name and continuation substansially increase in the Caferoma product in marketing the number of customers Caferoma products IV POSSIBLE SOLUTIONS  Advertising Proposal Benefits Pitfalls Introducing a new Attracts a lot of positive Too expensive advertising campaign feedback and increases and a grand relaunch number of potential customers IV POSSIBLE SOLUTIONS  Stretching the brand Proposal Benefits Pitfalls Allowing makers of There are difficulties Help customers promote coffee equipment to use that so many brand them to many more Caferoma’s brand name expansion will make components and on their goods for a business have to invest improve the scale of licensing fee a lot of capital and Caferoma statue time V CONCLUDE  Introduction of new exotic coffee brands and new flavors under Caféroma’s image  new advertising and marketing techniques  set up of stalls and give away samples of the product V CONCLUDE  The Caféroma logo should be redesigned  Packaging should be change  Lower prices Thank you for your listening [...]... Stretching the brand Proposal Benefits Pitfalls Allowing makers of There are difficulties Help customers promote coffee equipment to use that so many brand them to many more Caferoma’s brand name expansion will make components and on their goods for a business have to invest improve the scale of licensing fee a lot of capital and Caferoma statue time V CONCLUDE  Introduction of new exotic coffee brands and...IV POSSIBLE SOLUTIONS  Own brand label products Proposal Benefits Pitfalls Allows to sell Caferoma Use of the already popular The customers products under the supermarket brand names, wouldn’t know that supermarket‘s brand increase of sales and they are buying an name and continuation substansially increase in the Caferoma