Repositioning Strategy of Nestle in Portugal-MyAssignmenthelp

Question: Discuss about theRepositioning Strategy of Nestle in Portugal. Answer: Introduction Nestle is a company that aims to be the leader in nutrition, health and wellness product in the world. However, the company has a weak presence in the Portugal with respect to the yogurt market. The consumers in the modern day are looking for products that will prove to be beneficial for their health as well as provide nourishment and taste to them. It is necessary for the company to position its brands in a way, which will help the company to become the fastest growing segment in the recent market of Portugal (Nestle 2013). The company needs to take advantage of its strengths with regards to the technological advancements that it has so that it can follow the current market trends and customer preferences. The company produces a low-fat content yogurt product known as Sveltesse Balance for the Portuguese market. it is a fat free nutraceutical yogurt product that helps in fat burning metabolism and stronger bones for the customers who consumes it. The launch of this product will help the company to attract more of the Portuguese population as majority of them suffers from rheumatic and other bone related diseases due to overweight issues (Sousa 2014). Market Overview One of the most dynamic markets in Portugal is related to the yogurt market. This has happened due to the continuous innovation process by the different brands to capture the market of the country. The country is showing a recent rise in the consumption of yogurt and in 2007 it was seen that around 427 million was raised, which amounted to more than 154 kilograms of yogurt being sold. This showed that the yogurt consumption has increased by 5 percent from the previous year (Oliviera-Brochado, Marques and Mendes 2015). The yogurt market in the country is differentiated in to major segments such as health, adult drinks, low fat content, indulgence and children. The health segment of the yogurt products, which are also known as nutraceutical products constitute around 26 percent of the market share and is considered to be the most sold product in the Portuguese market. The adult drinks section consists around 19 percent of the market share as it does not add any additional value to the customer apart from its easy to use technique. Products such as Yoggi, Danup and Adagio are examples of health drinks. The low-fat content products comprise of the yogurts that are free from fat content and can be in liquid and solid form such as Sveltesse, which constitute up to 14 percent in the market. the indulgence segment consists of 11 percent of the total market and the design of the products are done in such a way that it grabs the attention of the customers. Products such as Vida Receita Cremosa is an example of indulgence product. The child segment delivers the products that have nuitritional value such as Nesquik and Yoco. This segment comprises of 15 percent of the total market (Magrico 2013). Consumer Behavior It is highly unlikely that the customers will follow the consumer decision process model that comprises of seven steps as the purchase requires involvement at the minimum level. The consumers will not start a process of gathering information to find out the characteristics of the different brands that are available in the country. The consumers will not even switch their brands depending on the taste or from hearing from others. These chances are highly unlikely to happen. The consumers receive information about the yogurt brands through passive advertising such as a commercial in the television, newspaper and magazine advertisements and in-store advertisements. The consumer does not evaluate the information that is provided through the advertisements but simply remembers the information. The consumers on visiting the stores may remember the advertisement and buy the product and if it serves the purpose the customer will again try to purchase the same product (Mendes 2013). Thus, the behavior of the consumer follows three important steps such as they become aware of the product through the ads, which help them in making a decision to purchase the product so that the satisfaction level can be determined. This further helps the customers to repeat their purchase of the same brand if it reaches the satisfaction level (Moura 2014). The consumers who purchase Sveltesse Balance, a product of the Nestle company for the first time will categorize themselves in a problem-solving situation. The new product will help in changing the existence of brand and may cause the customer to limit their choices in the decision-making process. The consumer forms a pre-conceived notion about the various factors that are provided by the brand and examines it based on the first trial. The advertisement about the product will inform the consumers about the fat control in the body and protect the conditions of the bone. This will help the company in selling the brand if the consumers are concerned about their body condition, which will influence their decision of buying the product. The major trend can be seen that on an average the consumption of yogurt is around thrice per day for the company, which is during the snacks, breakfast and mid-afternoon meals. This will help the company to sell more of its products (Buriti and Saad 2014) . Competitors The Portuguese market consist of many companies that sells yogurt in the market. it is seen that Danone; a French company leads the market with respect to the yogurt products along with Nestle who has av48 percent share in the market. Another competitor of Nestle is Lactogal who has a strong reach in the adult dink and low-fat segment. The major brands of the competitors are Adagio and Mimosa Magro by Lactogal and Actimel, Corpos, Danacol and Activia are the major products of the Danone company (Guine et al. 2016). The main problem in the product by the company was with the image and packaging of the product. The packaging was considered as old-fashioned with respect to Danone, which made the consumers assume that the product is of inferior quality, which caused as lack of awareness among a large base of consumers (Costa e Silva and Saraiva 2016). Target Market and Positioning Strategy Target Market The product will target the consumers that are on the lookout for fat-free yogurts but are enriched with nutrients that will help in improving the health of the consumers. The major buyers of this product would be the women who are conscious about their health and care about their looks and conditions of their body so that they can lead an active life. The company will stand to their expectations and provide them with a product that will act as a healthy snack and can be taken at home or even while working in the office (Moura, Branco and Camoesas 2015). Positioning The product, Sveltesse Balance will be under the category of less fat content yogurt. This brand will compete with other fat free products such as Mimosa Magro and Adagio and health brands like Actimel and Activia. The product of Nestle will be different from the competitors as it will have heathy nutrients in the product, which will curb down body fat as well as help in strengthening the bones in the body of the customers in the Portuguese market (Paulo 2016). Repositioning Marketing Strategy The product has to be launched in a new way as it is seen that the competitors have gained an advantage due to various reasons in the Portuguese market. The packaging of the product is not up to the standards, which has seen a drop in the sales of the product. The target audience for the product needs to be changed so that it can cater to all sections of customers in a community (Coelho do Vale and Verga Matos 2015). IMC Strategy The product needs to follow the model that has been laid down by Rossiter and Percy, which will help to create awareness through proper advertising strategy. The sale of yogurts mainly happens through supermarkets and most of the choices of the customers are taken impulsively. This will help in the point-of-purchase (PoP) displays that will help the brand to get recognized amongst the customers (Schlegelmilch 2016). This will help the product as the customers will be on the lookout for the brands in the supermarkets. The use of advertisements is necessary as the customers will associate the product that they had seen in the commercials and newspapers. The PoP can be increased by offering gift coupons along with the product so that the customers on continuously buying the product may get discounts from the company. This will help in maintaining a loyal customer base for the company (De Mooij 2013). The attitude of the brand needs to influence the purchase decision of the customer so that they will feel motivated in trying out the product. It is seen that the process of buying yogurt is a low-involvement process, it is therefore necessary for the brand to motivate the customers in purchasing the product and avoid the bone related diseases and weight control issues. The key for the success of the brand will be to use the informational strategy (Wang 2013). Recommendations Thus, it can be recommended that the company has to reposition its brand again in the Portuguese market because of the strong competition that it is facing from the other yogurt brands. The company needs to relaunch its products with a strong packaging system that will have contrasting colors to attract the attention of the customers at the first instance. This will help the company in selling of more products that its rivals. The packaging needs to be easy to use so that the customers can consume the product whenever they like and the product needs to fresh for a longer period of time than its rivals. This will help the company in gaining a competitive advantage over the other brands in the market. The target audience for the product should not stick to only adult women as majority of the consumers in the modern world are becoming conscious about their health. The product needs to be available to young generation as well so that they can prevent the diseases from an early age. The positive point about the product needs to be informed to the consumers such as the low-fat content and the early prevention of rheumatic and bone related diseases amongst the people of the country. The extensive use of promotional strategies needs to be adopted by the company so that the brand Sveltesse Balance can stand out amongst the rival brands. The use of intensive advertisements in online and print media must be done so that the consumers can remember about the product while going to the supermarket to purchase the product. Apart from that, the PoP promotion will encourage the customers in trying out the product as on purchasing the product they will get enrolled for a monthly trial at the aerobic classes that the company would undertake so that they become aware of their health. This strategy would be beneficial for the company as the consumers are concerned about their health and would try the brand for the first time. Conclusion Therefore, it can be concluded that the repositioning of the marketing strategy by Nestle for the bran d Sveltesse Balance needs to be on an urgent basis so that it can regain its spot in the Portuguese market. the target market for the product needs to be revised so that it will help the brand to reach to more number of consumers. The use of promotional strategies need to be done via online methods so that the young generation who are in the social networking sites can learn more about the product. The PoP promotion needs to be done extensively so that the brand can have maximum reach in the market. the supermarkets and the grocery stores that are available locally needs to inform the customers about the product being available in their stores so that the consumers can purchase it. Reference List Buriti, F.C. and Saad, S.M., 2014. 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