3. Opportunity by German subsidiary of Unilever, Union
Deutsche Lebensmittelwerke
Union positioned in the "quality" segment of food
products
Union decided to develop market for low calorie food
products -
• Success of low-calorie products in US
• Increased number of such products in German health food stores
• Growing concern over excess calorie intake
• Threat to existing product line from low calorie food products
Case Description
4. Marketing research – consumers conscious about weight
Launch range of low-calorie food products with -
• Taste
• Consumption
• Variety
• Premium price
Primary market - 30 to 50 years
Urban areas
Case Description
5. Case Description
Complete Agreement
Among Managers
• Acceptance of
product
• Brand name
• Super-markets as a
distribution channel
Key Decision Issues
• Advertising strategy
• Combination of
taste and health
• Cosmetic product
Case Description
12. Gender Income Age
Male
1250-1500 16-34
1250-1500 35-49
1500 or more 16-34
1500 or more 35-49
Female
1250-1500 16-34
1250-1500 35-49
1500 or more 16-34
1500 or more 35-49
Demographic Segmentation
13. Normal line of food products
Cosmetic products for weight loss
Regular weight loss products and gadgets
Competitors
14. Females in age group 30-50
• Urban residents
• Few or no child
• Income > 1250 DM
Target Market
15. • Reduces calorie
intake by 400
• High on taste
• No use of fillers
• Known for quality
• Decades of
experience
Product
Marketing Mix
16. Price
• Premium product
• Higher than normal product
Place
• Existing distribution center
(Supermarkets)
Marketing Mix
18. Building solid brand franchise & obtaining loyalty would require
positioning on taste
Product has taste advantages over competitors
Promise of drastic weight-loss can't be delivered
Super markets not in favour of stocking products with seasonal
variation
Products using the alternative positioning already available
Advertising Strategy 1 – Taste
19. Real reason for buying product is to become more
beautiful
Strategy will increase total sales rather than getting
core group of customers, since dieters are usually
faddish in nature
Market of low-calorie products &weight-reducing
gadgets is strong in early spring when women start
thinking about looking good in bathing suit.
Advertising Strategy 2 – Cosmetic
20. Taste is definite USP of the product – low calorie whilst
preserving taste
Definite edge over competitors on taste value
Does not offer lowest calorie intake
Research evidence – people dislike giving up high calorie food
whilst dieting view lack of taste
Evaluation of Choices
21. Product differentiation from ‘Quick Weight’ loss products
Distribution channel- Super markets
Supermarkets prefer non seasonal products
Positioning only on cosmetic theme would entail strong
demand during summers – needs moderation
Evaluation of Choices
22. Increase loyalty base of customers through ‘Pleasure of Eating’
Research data indicates attractive market on taste value – 68 %
prefer staying healthy and fit, 21% want to look good
Taste factor is well poised for max consumer impact – Pull
Product
Hence launching product as ‘Cosmetic’ weight loss product
untenable
Evaluation of choices
23. Position the product-line on the ‘Taste'
factor, and exploit the huge market
opportunities that exist
A discrete element of cosmetic value can
be added in the positioning to
incorporate hidden motivations for
buying the product
Conclusion
24. Conclusion
An example can be a model who is standing in front of the product range
in a supermarket, and is enjoying the taste of one of the products
This way, the product is basically known for what any other product
doesn't offer- the taste that comes with the calorie balance
