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SCHOOL OF ECONOMICS Writing Practice NAME: ______________________________________ ID NUMBER _____________________
Case study: Segorem Situation: Segorem is a well-known well-known brand of Milk, is owned by PEFO, a company based in Segovia, Antioquia It is promoted as an exclusive product for people who love premium milk. Its image is of a traditional Antioquenian milk, and it costs more than almost other milk product on the market. Problems: In the last two years, Segorem`s Segorem`s share of the quality milk market has declined oy almost 30% (see chart, chart, There are several reasons for this. Brand loyalty: Consumers loyalty: Consumers have become less loyal to brands and more price conscious. They are willing to buy lowerpriced milk products. Price: Supermarkets Price: Supermarkets are selling, under their own label, similar products to Segorem at much lower prices . Copycat products: Competing products: Competing products of Antioquenian style are selling at prices 30 to 40% lower than Segorem Brand image. Segorem image. Segorem brand no longer seems to be exciting and up-to-date. Top Antioquenian milk brands
Supermarket own label brand
Segorem 2 years ago
Other brands
last year
Sales outlets as a percentage of Segorem sales
Do you think Segorem is
% of people answering yes
Possible solutions
Repositioning the product: A product: A change of image to appeal a differ ent market segment
Pricing: Reduce the price by 20%, 30%
Advertising: develop a new advertising campaign
Stretching: Use the brand in other products(yogurt, kumis, etc)
Own label product: allow supermarkets to sell the milk under their own brand level
A new products: bring out a new product under the Segorem brand
TASK: Write an e-mail to Segorem Managing Director, Gustavo Racho. Summarize what action plan you agreed to take at the meeting to solve Segorem’s problems. Explain your reasons,
