CaferomaReport 商务英语关于咖啡的案例分析

Caferoma

Business English Report

2012.5.8

Table of Contents

1. Introduction 1

2. Discussion 2

3. Recommendations 3

4. Conclusion 5

Introduction

Caferoma, a well known brand of coffee, is owned by the Pan European Food and Drink Company (PEFD), based in Turin, Italy. It is promoted as an exclusive ground coffee for gourmets. Its image is that of an Italian-style coffee. It has a strong full-bodied-style coffee. It has a strong full-bodied flavor and a slightly bitter taste. It costs more per 100 grams than almost every other ground coffee product on the supermarket shelves.

In the last two years, Caferoma’s share of the European quality ground coffee market has declined by almost 25%.By the pie chart we can that Top five European coffee brands’ market share has increased by almost 25%. There are several reasons for this: Consumers has become less loyal to brands and are more willing to trade down to lower-priced coffee products. Competing brands of Italian-style ground coffee at much lower price have cut into Caferoma’s market share. And it does not give the impression of being up-to-date and contemporary.

Possible solutions: Change Caferoma’s image to appeal to a different market segment. Reduce the price to make it more competitive. Devise a new advertising campaign. Sell Caferoma’s under different brand names at lower prices. Sell Caferoma coffee for supermarkets to package and

sell under their own labels. Bring out an instant coffee or decaffeinated product under the Caferoma brand. Allow selected manufacturers of coffee equipment to use the brand on their goods for a licensing fee, of course.

Finding

1.Pricing solution: Reducing the price properly and we should consider the product's cost before we change the sale price.

2.Advertising solution: Strengthen the advertising promotion.

3.Brand solution: Improving the brand image. Sell Caferoma with a minor change or free gift under different brand names at lower prices.

The above 3 solutions have their each benefits and shorts. So I will tell you some of their advantages and disadvantages.

No matter which solutions we choose, they also have their each benefits and shorts.

First, we decrease the coffee price within our limits that the changed sale price is not less than the cost price. So we not only improve the market competitiveness but also promote the marketing turnover. But at the same time, it will take the mistake to consumers that the quality of our products may be declined, what’s more, some customers could think we improve the original profits.

Second, advertising is one of the most important part in market share. So we should strengthen the advertising promotion. For example, launch