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compartments for a PC and mobile phone? Would Sweden's Nadia Lindstrom win the top prize with her firm's leather computer covers? Perhaps Anna Petrova, a Moscow designer, would win with her exciting range of leather furniture? When the result was announced, cheers and applause greeted the popular winner. Anna Petrova had won first prize. Smiling, almost in tears. the happy winner accepted the cheque. After congratulating the other competitors, she said that she hoped many people all over the world would enjoy the products she had created.

Leatherware competition

The annual competition, sponsored by The International Leather Association, takes place on 29 June, at the Chambre de Commerce, Geneva, Switzerland. The judges will be chaired by Solange Marchand. The winning company will receive a prize of US$100,000. Runners-up will each receive $US25000. The event will be televised by Channel 8 Television.

Task

Your company is competing for the ILA'stop prize. You believe that you have an outstanding idea for a new leather product. Read the Case study documents. Then, prepare your product presentation and present it to the rest of the group. Answer any questions they may have. When you are not making a presentation, you are a member of the judging panel. Decide who should get top prize. (You may not vote for your own product concept.)

Guidelines for presenters

1.Introduce your team. Outline the structure of your presentation.

2.Describe the product design, features and consumer benefits.

3.Describe the product's target market.

4.Mention other competing products.

5.Present your strategy for the new product. For example:

•branding, packaging, other product features (guarantee, etc.)

•pricing strategy

•distribution (What sales outlets will be used?)

•promotion (What advertising, product launch and sales promotion?)

6.Describe any ideas for television or radio commercials.

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Case 4.

Background

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 gourments. Its image is that of an Italian-style coffee. It has a strong full-bodied flavour and slightly bitter taste. It costs more per 100 grams than almost every other ground coffee product on the supermarket shelves.

Problems.

In the last two years Caferoma’s share of the European quality ground coffee market has declined by almost 25%. There are several reasons fro this:

Brand loyalty. Consumers have become less loyal to brands and are more willing to trade down to lower-priced coffee products.

Price. Supermarkets have been producing, under their own label, similar products to Caferoma at much lower price.

“Copycat” products. Competing brands of Italian-style ground coffee at prices 30% to

40% lower than Caferoma’s price have cut into Caferoma’s market share.

Brand image. Consumer surveys show that Caferoma brand no longer conveys a feeling of excitement and enthusiasm, and that it does not give the impression of being up-to-date and contemporary.

Task

You are members of PEFD’s European marketing team. Hold an informal meeting to discuss Caferoma’s problems. Decide what actions are necessary to halt the decline in the product’s market share and to increase profits.