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

an advertising campaign to introduce our Caferoma coffee to general people and let them know it’s special characters deeply. However, everything has it both ways and advertising is not an exception. Many people may think the ads are not worth in trusting and most businessmen spread the false products information to people. So they don’t believe ads, which will make our promotion frustrated.

Third, brand image is also very important. We should establish and improve the brand image and arouse the customers’ brand awareness. At the same time, we could sell coffee with a free gift or a minor change. Besides bring out an instant coffee under the Caferoma brand. I think it’s a good way to improve our brand image. Through analyzing these above solutions, I think our main consumers are the middle-income people, which grow the market turnover greatly and expand the marketing. But from the other hand, we lose the up-market. In a word, we could build two marketing direction that is up-market and middle-income market.

Last, I believe we can halt the decline and make more profits if we follow the solutions.

Recommendation

I think the most typical reason is that we didn't do the advertising right. Our life is so full of advertisements. Advertising is a paid-form of presentation or promotion of goods and services. It is non-personal in nature, and the promoter must be identified. Advertising's role is to create

a positive image of a product or service by influencing the behavior of target customers. We cannot walk down the street, ride on a bus, watch television or read our emails without seeing advertisements. If the advertisement is not attracting at all, who would like to drink our coffee? So the most important thing that we should do immediately is to improve the advertising.

There are several ways for us to do it better. Here, I have three recommendations. First, the person who is invited to play a role in the advertisement should be well-known enough. He (or she) would be expected to be a star. People always spend a lot of time searching the information of their herons. They will feel very happy if they use the same shampoo and eat the same food as those stars. What will happen if people see LADY GAGA is drinking our coffee? Of course they will go to the supermarket and buy a same one. Although it may cost us a lot, I believe it will bring us more.

The second recommendation is that the TV ads should be telecasted in a right time. You may ask me “what is that?" Actually it means those hours in which most of people are watching TV. We all know that it is just a waste of time and money if an advertisement has no audience at all. According to the reason that I have mentioned, we should always

remember to try our best to choose a right time for our ads now. The bigger the number of people who have watched our ads, the bigger the number of people who would buy our coffee because they will no more drink a coffee that they have never seen before than go to a place that they have never heard.

Finally, we should send the ads to any places we can—— not only on televisions, but also on motorways, on buses and even on the walls of those shopping malls. Handing out the leaflet is another excellent way because it's cheap and easy. All that we need to do is design a pattern, print them out and ask some people to hand the leaflet out. According to my experience, this would never cost us a lot. When there are enough advertisements in the outside world, we don't need to worry about anything. We can just sit on our own chairs and waiting for the customers.

Since I have explained a lot, it is obvious that advertising is the most important thing. I believe the coffee will be sold much better if we put more efforts to the advertisement.

Conclusion

According to the information, we know that in the last two years, Caferoma’s share of the European quality ground coffee m arket has declined by almost 25%. It has become a serious problem now. Obviously, to solve the problem, some measures should be taken. We have explained

the advantages and disadvantages of the measure. To sum up, many ways can contribute to solving this problem, but the advertising may be most effective.