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CASE STUDY Caferoma Problems Problem Reasons Its share of the European quality ground coffee market has declined by almost 25%. Brand loyalty: People prefer lower-priced coffee products. Price: Similar products are offered at much lower prices. Copycat products: Other brands of Italian-style ground coffee are 30 – 40% cheaper. Brand image: Caferoma is out of date. Too expensive out of date CASE STUDY Caferoma Possible solutions Repositioning the product Pricing Advertising Multiple brands Own-label products New products Brand stretching Change the target market lower the price by 20 – 30% Launch a new advertising campaign Sell Caferoma under different brand names at lower prices Sell Caferoma under supermarkets’ own labels Make instant or decaf coffee products under Caferoma brand Allow coffee equipment manufacturers to use the brand on their products CASE STUDY Caferoma Claudia, Caferoma’s Marketing Manager, has some recent news from one of Caferoma’s biggest customers, Majestic Hotels, a major European hotel chain. She discusses the news with Caferoma’s Sales Director, Pietro. Listen to their conversation. How does this new information affect your decisions? CASE STUDY Caferoma Task You are members of PEFD’s European marketing team. Hold an informal meeting to discuss Caferoma’s problems. Decide what actions are necessary to stop the decline in the product’s market share and to increase profits. 服务理念中的“点点” ◆理解多一点 真情浓一点 ◆学习勤一点 品质高一点 ◆理由少一点 效率高一点 ◆处理问题灵活点 工作过程用心点 ◆对待同事宽容点 互相协作快乐点 * * Discussion Why do people like brands? - Own instantly recognisable products Associate specific qualities with the brand (value for money, quality, safety) - Gain greater customer loyalty - Make more profits Launch related products under the same brand (TCL, Midea, Evergrande/ Hengda) a) To consumers b) To manufacturers - Make shopping a lot easier Buy reliable products (value for money, durable,
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