Caferoma is a well-known Italian brand of coffee and this company has some

problems like loss of brand loyalty and lack of competition. There are solutions to
make company better:

The first solution is repositioning the product. Advantage of this solution is that
changing the image will attract new customers due to improved quality. But they
can’t be sure that changing the image will increase the right number of customers
for successful business.

The second solution is reduce the price by 20-30%. Low price will attract new
customers if the price is lower than that of competitors and is opens up access to
the other market segments. But they will have to look for a new suppliers because
of lower pricing.

The third one solution is advertising. An good advertising campaign is also can
attract new customers (brand awareness). high advertising costs may not exceed
expectations. Outlay may be higher than revenue.

Multiple brand is another way to solute the problem. It will increase the number of
customers from different market segments and that can increase sales. That’s not a
cheap solution and it can decrease a level of awareness of this company.

Another solution is own label products and company can sell their products into
supermarkets under their own label. This type of solution can reduce client traffic.

New product it is to include different types of products which contain coffee. The
main advantage of this solution is that it will attract new customers because it
follows trends. But there is a disadvantage; company have to sell previous products
and spend a lot of money on buying new one.

Brand stretching can solute the company problem. They can increase sales and
expand range of products. Expand your customer base. But company can lose their
brand loyalty like a coffee company status.

I think that the best way to solute their problem is to reduce prices because it
doesn't require any expenses and will attract more customers.