Problem DescriptionUnilever's German subsidiary, Union Deutsche Lebensmittelwerke, has positioned itself in the "quality" segment of food products. The company, in light of the following factors, decided to develop and test low-calorie versions of food products on the market:1. The success of low-calorie products in the United States2. The increase in the number of such products in German health food stores.3. Growing concern about excess calorie intake is expressed by various government organizations, medical associations and other groups. Additionally, the low-calorie food market appeared to be a threat to their existing product line. Market research suggested that a significant number of consumers were becoming conscious of their weight and this number was increasing over the years. Therefore the company has decided to launch a range of low calorie food products paying attention to the following points:1. It tasted the same as the generic products they were supposed to replace.2. It could be consumed in the same way as the basic product.3. It would offer the regular consumer of some items in the range a significant calorie saving.4. They were to be priced slightly higher and distributed through supermarkets. The primary market was considered to be women aged between 30 and 50 without children or with few children in the family, living in urban areas and with a family income above 1,250 DM per month. There was complete agreement between the product managers on the previous point and also on the brand name, using supermarkets as a distribution channel and showing the products as groups in multiple shelves separating the Du Darfst units. Key Decision Issues There was disagreement regarding which advertising strategy to choose for this new product line. Team members suggested two different approaches:1. Members who had used the product from the beginning wanted to promote the combination of appetite and health2. Another suggested approach was to exploit the market by essentially advertising it as a cosmetic product. Therefore the main decision must be made on the positioning of the product range. We also need to evaluate which category of consumers we are targeting: health-conscious people or those who are more attentive to their appearance. Another issue is whether we want to promote consumers who will stay with the product for a long time or completely new users who may be quirky and change their preferences from time to time. Development of Decision Choices Arguments in favor of the first alternative for the advertising approach are provided below: