To Mario Cumino

From Tatyana Mishchenko

Subject: Caferoma’s problem

Dear Mr. Cumio

I got acquainted with the Caferoma’s situation. Declining by over 30% in market for the last two
years is the serious reason to think about this. First of all, due to market analysis we can
summarise all prerequisites and put forward a proposal for a solution to the problem.

As I can see, the most reason of current situation is the price. Customers have become less loyal
to brands and as a result, the price. There are other reasons also: Caferoma’s competitors selling
similar products at much lower prices, or brand image.

I have some solutions that can be possible. One the one hand, reducing the price by 20% to 30%
can be risky but on the other hand, it is quite necessary – so that, our customers can spend their
money for the best quality and taste by the less cost. After that, step by step, we can return to the
usual price category.

We also need new customers – a good advertising is the best solution. In my opinion, it should
be cheap and cheerful, so that we can say about quality and unique feature of our coffee. The
advertisement is followed by a logo update, what means that Caferoma does not stand still.

Hope, you will heed suggestions mentioned above, and together we will return Caferoma’s
former success.

Yours sincerely
Tatyana Mishchenko
Karpova 1-79
Tomsk Russia
634028