Caferoma Case Study
CASE STUDY CAFÉROMA
I-BACKGROUND:-
Caféroma is a well known coffee brand made by PEFD, a company based from Turin, Italy. Italian style coffee is its exclusive product, which is a ground coffee with an slightly bitter taste and strong flavor. It costs more than other ground coffee available in the market.
II-PROBLEMS FACED:-
Market share has faced a downfall upto 30%.
Loss of brand loyalty in customers who have become more cost conscious ie they are preferring brands which are less in price compared to Caféroma.
Supermarkets started selling coffee brands under their own label at lesser prices.
Caféroma’s logo and brand name is old fashioned ie not in par with the current world trends.
III-DESCRIBING STATS ON CAFÉROMA’S PROBLEMS:-
Caféroma’s market share experienced a significant downfall in the past year.
The top five competitors from Europe has increased their sales and market share whereas Caféroma’s shares declined. The other companies are have made a great stand in the market and so caféroma’s market share is very much the same.
Supermarkets own brand names have their market value at the same level in the time period.
When compared to the previous years, Caféroma’s share declined almost 20%. The downfall was highest in supermarkets whereas hotels experienced only a 10% decrease in sales.
Even though sales in restaurants and hotels have gone down, the sales in specialist shops has increased by 10% in the last year.
IV- POSSIBLE SOLUTIONS:-
Solutions
Proposal
Benefits
Pitfalls
Repositioning The Product
A total change of image appropriate to the modern market trends
Makes the product more eye-catching and more modern compared to the old fashioned Caféroma’s image
Too expensive and difficult to change and perhaps the loss of customers who liked the old fashioned Caféroma
Price Reduction
Reduce the pricing which is more equal
I-BACKGROUND:-
Caféroma is a well known coffee brand made by PEFD, a company based from Turin, Italy. Italian style coffee is its exclusive product, which is a ground coffee with an slightly bitter taste and strong flavor. It costs more than other ground coffee available in the market.
II-PROBLEMS FACED:-
Market share has faced a downfall upto 30%.
Loss of brand loyalty in customers who have become more cost conscious ie they are preferring brands which are less in price compared to Caféroma.
Supermarkets started selling coffee brands under their own label at lesser prices.
Caféroma’s logo and brand name is old fashioned ie not in par with the current world trends.
III-DESCRIBING STATS ON CAFÉROMA’S PROBLEMS:-
Caféroma’s market share experienced a significant downfall in the past year.
The top five competitors from Europe has increased their sales and market share whereas Caféroma’s shares declined. The other companies are have made a great stand in the market and so caféroma’s market share is very much the same.
Supermarkets own brand names have their market value at the same level in the time period.
When compared to the previous years, Caféroma’s share declined almost 20%. The downfall was highest in supermarkets whereas hotels experienced only a 10% decrease in sales.
Even though sales in restaurants and hotels have gone down, the sales in specialist shops has increased by 10% in the last year.
IV- POSSIBLE SOLUTIONS:-
Solutions
Proposal
Benefits
Pitfalls
Repositioning The Product
A total change of image appropriate to the modern market trends
Makes the product more eye-catching and more modern compared to the old fashioned Caféroma’s image
Too expensive and difficult to change and perhaps the loss of customers who liked the old fashioned Caféroma
Price Reduction
Reduce the pricing which is more equal