INDUSTRIAL UNIVERSITY OF
HOCHIMINH CITY
UNIT 1
CASE STUDY
MAIN CONTENT
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BACKGROUND
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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