Subject : The loss of market shares of Caferoma
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Heading : Report on The Loss Of Market Share Of Caferoma.
a ) Terms Of Reference
PEFD has been instructed by Claudia, Caferoma’s Marketing Manager to investigate and to report on the loss of market share of Caferoma and to offer solutions to improve the situation on
b ) Procedure
i ) Sales Report :
According to the sales report for the previous 2 years and up to date. Caferoma was high in demand for supermarkets, and was low in demand for restaurants.
ii ) Main Competitors Report :
The main competitors for Caferoma , is other coffee brands such as the supermarket own label brand, Top 5 European coffee brands such as, and other brands.
iii ) Survey On Focus Group:
As in the focus group, what I can analyse is that customers thinks Caferoma is :- -too expensive.
-does not reach up to the value of money which they also would like to save.
-The coffee is good quality and old fashioned as how they like it, but it is not as tastefully exiciting as it looks.
-The customers thinks that Caferoma is an exclusive coffee.
According to this analysis, in my opinion the customer’s think that Caferoma does not exceed their taste buds and its not worth for them to purchase it.
c ) Findings:
Follow the same as procedure. Explain these three parts of procedure briefly based on the textbook.
In the text book, Caferoma is an exclusive product for people who loves ground coffee. It has a strong and slightly bitter taste, and costs more than other coffee in the market. a) In the procedure above based on sales report, the only client that bought the most was the supermarkets, and a year later it fell in demand. Mainly because supermarkets are selling under their own label, similar product to Caferoma at much lower price. b) In competitors report, there are many types of coffee out there. So in order for Caferoma to be one of the best coffee they would have to out beat or have an extremely special taste that customers would go crazy for. Their brand loyalty is not good or strong, because customers are willing to buy lower-priced coffee products.
C) Finally, under the survey focus group. You can see the reactions of customers fall as the brand no longer seems to be exciting and up to –date. Customers like their coffee to be strong, tasteful sometimes sweet. So having a “Bitter taste” coffee in the market would not sell to the other customer that prefers their coffee simple and light, causing them to slowly lose their customers attention and loyalty.
d ) Conclusion
As for the competitors, the reason why they can take over the market easily is because they have a tendency to have copycat products. Competing products of Italian-style ground coffee are selling at prices 30 to 40% lower than Caferoma.
Caferoma products are very old fashioned and the market trends these days changes. There are more young adults from the age of 20 up till 45 taking coffee, for them to take an old fashioned coffee would not exceed their expectation in what they look for. Not only that the market trends changes, there are many types of Caferoma products which sells better and which are far more cheaper than Caferoma. At the moment, the analysis explains that it’s a bad expensive product because coffee should not be this expensive to enjoy.
( These are the final points as given by Mrs. Looi )
e ) Recommendations
In my opinion for Caferoma to be in their...
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