商务英语
发布时间：2020-04-23 来源：文档文库
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A Brief Analysis of Caferoma Class 2 May 14th, 2011 Name: 王军平 Student
Table of contents
1. Introduction
2. Finding & Discussion 3. Recommendations 4. Conclusions 5. Bibliography
1. Introduction
Caferoma, a well-known brand of Italian-style coffee, is promoted as an exclusive ground coffee for gourmet. Its image is that of an Italian-style coffee. It has a strong full-bodied flavor and a slightly bitter taste. So it costs more per 100 grams than almost every other ground coffee product. But Caferoma’s share of the European quality ground coffee market has declined by almost 25% in the last two years. We can easily find several reasons for this.
Brand loyalty: consumers have become less loyal to brands and more willing to trade down to lower-priced coffee products.
Price: Caferoma costs much more than supermarket own label brands and other competing brands of Italian-style ground coffee.
'Copycat' products: Competing brands of Italian-style ground coffee at prices 30% to 40% lower than Caferoma's price have cut into Caferoma's market share.
Brand image: Caferoma brand no longer conveys a feeling of excitement and enthusiasm and does not give the impression of being up-to-date and contemporary.
2. Finding & Discussion
According to the chart of Caferoma’s share of European quality ground coffee market in the last two years, we can see that the market share of top five European coffee brands has increased year by year obviously, market share of supermarket own label brands and other brands almost not increased or decreased. But only Caferoma’s share has decreased in a huge amount. Analyzing the change of all kind brands, we find that the problem of Caferoma is all about product and price. First, the sales place of Caferoma just fine, because this brand has done a good job before the last two years and the place is just as other kind of coffee brand, so we don’t take it into consideration. Then about the promotion, it’s unnecessary because Caferoma is a well-known brand, there’s no concerns that consumers don’t know this brand. Third, take a look at the price, in my opinion it’s an important reason that the other kinds of brands are just cheaper than Caferoma. Some people may say that Caferoma has a better quality, but in consumer’s view, it’s stupid to pay the much extra money for a better quality. We should see that Caferoma is just a kind of ordinary drink, not as a kind of luxury, which stand for better quality with an unreasonable price. And we know consumers have become less loyalty to brands, so we must cut down the selling price. Last, considering the product element, consumer surveys shows that the Caferoma brand no longer conveys a feeling of excitement and enthusiasms, which is saying that consumers is no longer loyal to Caferoma. So we can take two kinds of possible solutions, repositioning the product and multiple brands.
3. Recommendations
I suggest taking multiple brands but not repositioning the product .Because I think consumers have a not so good brand image on Caferoma, it’s difficult to change image from bad to good than just create new brand names. Take P&G for an example, there are all kind of product under the one company, Rejoicefor ;Head-Shoulders for; Pantene for. Caferoma can
