Marketing Principles and Implementation Prof. J. N. Godinho Case: Du Darfst Submitted By: Section D-Group 1 Ankush Raghuvanshi (10P189) Annapoorni CS (10P190) Manan Patel (10P209) Mayank Bhatnagar (10P210) Sahil Agarwal(10P228)
Nov 22, 2014
Marketing Principles and Implementation
Prof. J. N. Godinho
Case: Du Darfst
Submitted By:Section D-Group 1
Ankush Raghuvanshi (10P189)Annapoorni CS (10P190)
Manan Patel (10P209)Mayank Bhatnagar (10P210)
Sahil Agarwal(10P228)Vipul Manglik(10P241)
1. IntroductionUnion Deutsche Lebensmittelwerke, the German subsidiary of Unilever, was set to launch a
range of low calorie food products. They were initially placing it in the test market so as to
gauge the response of people to these categories of low calorie food products. ‘Du Darfst’ was
the brand name selected for these products. The reason for such a choice was its superiority
over other competitors, as proven by the research on consumer behavior. The issue of
contention was about the advertising campaign and product positioning.
There were two different schools of thought regarding the placement of the product in the
market. The members of a long-existing team within the company were adamant about
projecting the product as one that
Tasted good and similar to generic products
Didn’t require any change in eating habits
Caused significant loss of calories in the long term
Priced at a slightly higher rate
However, according to one of the product managers, Kortmann, the product should be
projected as
A cosmetic product, cashing in on peoples’ need to look good rather than feel good
One that concentrates on motivating people to lose weight/stay fit, so as to be able to
be able to expand the target market
Various advertising strategies could be adopted according to positioning that the company
decides to do. The various options of advertising the product included
‘The new concept for eating and drinking’: This would concentrate on projecting the
products as tasty, yet healthy
‘Du Darfst makes foods lighter for us- all Du Darfst foods are calorie-controlled’: This ad
conveys the healthiness induced in the food by changing its composition
Du Darfst has everything your body needs-only no extra calories. Make the change’: This
would highlight the nutritional value of the products
‘Du Darfst foods are important for your health’: This ad would target the concern for the
health of the consumer’s family as a whole
Apart from these choices, they also had the option of developing a new look ad if their
positioning is not suited to these captions
We have taken into consideration the following aspects for analyzing the case
Identifying the segments
Identifying the competitors
Defining core competencies
Identifying the target market
Positioning
Marketing mix
Advertising concept
2. StrengthsDu Darfst’s core competencies are:
- Calorie Intake : It reduced the calorie intake of people by 400 calories per day. It did this by removing the superfluous calories in the food without altering the nutrition content (proteins, vitamins, etc). It catered to the need of people to stay look good (as the basic reason why majority of the people wanted to lose weight was to look good and not to be healthy), i.e. it enabled people with excessive fat to lose weight and people who did not want their weight to be increased to maintain their weight.
- Steady reduction in weight :Consuming products guaranteeing radical weight losses could endanger one’s health and should be undertaken only under the supervision of a doctor. Du Darfst, on the other hand, reduced one’s weight steadily and slowly.
- Taste :The Du Darfst line of products had a similar taste to the products the consumers were consuming before switching to it. Du Darfst did not remove any of the taste but plenty of calories.
- Satisfaction : Many weight loss products use fillers which fools the stomach in an artificial way to induce a feeling of satisfaction in people. On the other hand, Du Darfst didn’t use any of these fillers. It saved a lot of calories and really satisfied the people.
- Quality : The Union Deutsche Lebensmittelwerke, manufacturer of Du Darfst’s products, was one of the biggest German food manufacturers. They had decades of experience in that area. They used only the best raw materials for Du Darfst products. For example, in their precooked meals, soups, and sausages, they used only selected lean meat.
3. Identifying the segments
As Du Darfst cannot connect with all customers in large broad/diverse market it is very much essential for them to divide market into group of consumers or segments with distinct needs and wants. We need to identify a differentiable, measurable and accessible segment of consumers to which we can target our line of products.
Here the segmentation can be carried out in terms of demographics and psychographics.
The psychographic segment is broadly divided into following segments:
1) Those who do not have weight problems - 8%
2) Those who claim to have weight problems – 92%
a. Want to lose weight ................25%
b. Want to maintain weight...........67%
i. The people who can maintain weight without difficulty ...52%
ii. The people who are careful not to gain weight ...............12.5%
iii. The people who do not want to lose weight....................2.5%
We also have demographic data of the people who claim to have weight problems. Based on this data we have identified the following main segments:
Serial No. Gender Income Age1 Male 1250-1500 16-342 Male 1250-1500 35-493 Male 1500 or more 16-344 Male 1500 or more 35-495 Female 1250-1500 16-346 Female 1250-1500 35-497 Female 1500 or more 16-348 Female 1500 or more 35-49
We have not considered the following demographic groups:
Employment(as Income level factors it in)
Size of households and City size(consumption is independent of these)
Age group above 50 years
Income level below 1250 DMs
4. Competitors
There are basically 3 types of competitors of the Du Darfst products :
- Normal line of food products which people are consuming at present- Other cosmetic(lifestyle) products coming with a promise to people to look good- Weight loss products and gadgets
5. Target marketThe target market that we have identified is:
Females with household income more than 1250 DM and age group 25-49 years. The reason for choosing this target market is that females are more weight conscious and want to look good. This is evident by the fact that increased sales of weight loss products during spring when women start thinking of getting into bathing suits for summers.
Moreover, Du Darfst products are being launched as premium products. So, it needs to target those customers who can afford buying the product and hence the justification for targeting women with household incomes over 1250 DM.
Also, our communication strategy is more focused towards women in the age group of 25-49 years. This is because the kind of promotion strategy that Du Darfst is using focuses more on good looks along with slim physique which might not appeal to the women having age more than 50 years.
6. Competing categories in the target marketAccording to the target market that we have identified for Du Darfst, it has 2 types of competitors:
- Other cosmetic(lifestyle) products coming with a promise to people to look good- Weight loss products and gadgets promising to make people look good
7. PositioningPositioning is the process by which marketers try to create an image or identity in the minds of their target market for a product. Du Darfst wants to position its product line as life style product at premium prices.
The frame of reference is defined as categories competing in the minds of customers. So, the frame of reference for Du Darfst is life style cosmetics products. The point of difference is that Du Darfst helps people look good. Additionally, what would help Du Darfst to retain its customers longer is the fact that its products have the same taste as the products which people are consuming at present.
8. Marketing Mix- Product
o It reduced the calorie intake of people by 400 calories per day. It did this by removing the superfluous calories in the food without altering the nutrition content (proteins, vitamins, etc).
o The Du Darfst line of products had a similar taste to the products the consumers were consuming before switching to it. Du Darfst did not remove any of the taste but plenty of calories.
o Many weight loss products use fillers which fools the stomach in an artificial way to induce a feeling of satisfaction in people. On the other hand, Du Darfst didn’t use any of these fillers. It saved a lot of calories and really satisfied the people.
o The Union Deutsche Lebensmittelwerke, manufacturer of Du Darfst products, was one of the biggest German food manufacturers. They had decades of experience in that area. They used only the best raw materials for Du Darfst products. For example, in their precooked meals, soups, and sausages, they used only selected lean meat.
- Price : o Du Darfst is launching its products as premium products. So, its price will be a
little higher relative to the normal products. Households with income over 1250 MD will be the ones which will be able to afford these products.
- Place : o Du Darfst will be using its existing distribution centers (supermarkets) that are
there in place for the normal foods that people are consuming.
- Promotion : o For Du Darfst promotion strategy, it will use a slim and beautiful woman in a
swimsuit to cater to the secret need of people (especially women) to look good. Also, we have made the following advertisement strategy for Du Darfst:
Yes! You can look good.
Indulge in Du Darfst lifestyle. Look good. Feel good
This ad focuses on projecting Du Darfst as a lifestyle product, which inspires people to lose
weight /stay fit so as to look good. The advantage of this product is that it motivates people to
lose weight without altering too much of their eating habits and continue to work towards
healthy lifestyle.
It enhances their overall image and personality which is perceived as important in society both
for professional and personal growth. Another advantage is that this product tastes same as the
other basic food products and consumers would be able to relish it without losing out on
satisfaction.