The links below r background, problems n possible solutions for this brand of coffee:

http://www.mediafire.com/imageview.php?quickkey=nj5ndknmkzb&thumb=4

http://www.mediafire.com/imageview.php?quickkey=wy5dmdwt5xm&thumb=4

Claudia, Caferoma’s Marketing Manager, has some recent news from one of Caferoma’s biggest customers, Majestic Hotels, a major European hotel chain. She discusses the news with Caferoma’s Sales Director, Pietro. This is their conversation ( MM= Marketing Manager, SD= Sales Director)

MM: Pietro, can I have a word with u? I’ve just been talking to Gina Delassi, Majestic’s new Purchasing Manager. They r going to cancel their contract with us. They won’t change their mind.

SD: Why, what’s the problem? That’s 50% of our business: we can’t afford to loose them. What reason did they give for cancelling?

MM: u know that Café Velvet has just launched a new advertising campain? Well, Majestic’s Head Chef is endorsing it! They r introducing Café Velvet in all their hotels. Café Velvet is also talking to the supermarkets, apparently.

SD: What can we do? R u talking to the other hotel chains? Any ideas on who we can get to endorse our product? We need to talk to the supermarket about our new campaign.

MM: Yes, our department has already braintormed a shortlist of possible celebrity names. And we have drawn up an action plan to target supermarkets. We aim to put these plans before the board next week.

SD: Good to see a sense of urgency. Don’t forget to survey other hotel chains. We can’t rely on one chain in the current situation.

Question:

Let’s hold an informal meeting. Consider the advantages n disadvantages of each solution. Then decide what to do to stop the decline in the product’s market share n to increase profits. How does the new information in the conversation above affect ur decisions?
Write an email to Caferoma’s Managing director, Mario Cumino. Summarise what action u agreed to take at the meeting to solve Caferoma problems. Explain ur reasons?

Advantages of repositioning the product:
Change Caferoma to a different segment. For example: return to the first new born coffee branch, put some spice taste n smell into coffee.
Disadvantages of repositioning the product:
Hiring more drinking experts to looking for spice taste n smell into coffee

Advantages of pricing:
Reduce the price by, say 20% to 30% so that it is in the medium range of prices. Everyone who drinks coffee will concentrate on this new, then they will buy Caferoma because it is a chance for them to drink what is more expensive in the pass n it’s the chance for them to taste another coffee taste.
Disadvantages of pricing:
Reduce the price means reduce the income

Advantages of advertising:
Develop a new advertising campaign to relaunch the branch. It makes Caferoma become more popular
Disadvantages of advertising:
It lost a large amount of money for advertising

Advantages of multiple brands:
Sells Caferoma, with small changes to product, under different brand names at lower prices will makes it newer n attract customers.

According to me, I’ll choose Multiple brands because I think that it has more benefits than disadvantages.