The goal of BioFoods, a company that specialises in the production of functional foods, is to develop

a new product that conveys to consumers a clear and noticeable image of food sustainability and to
establish a favourable market position for the new product

. i. Select the most effective dimension of product strategy for the given situation. (1 mark)

Product positioning

ii. Justify your answer with suitable reasons. (8 marks)

- Placing a brand of the new product of Biofood in that part of the market where it will
have a favorable reception compared with competing brands.
- It is to convey to the consumer that the new functional food product by BioFoods have
a clear and noticeable image of food sustainability. Thus, it is to position the product in
the market so that it stands apart from competing brands. Other than that, it is to position
the product so that it tells customers what you stand for, what you are, and how you
would like customers to evaluate you.
- There are six different approaches to positioning may be distinguished:
1. Positioning by attribute (i.e., associating a new functional product with a good
attribute, feature, or customer benefit such as good for their health/consumption) .
2. Positioning by price/quality (i.e., the price/quality attribute is so pervasive that it can
be considered a separate approach to promotion such as set the price that suitable
according to the product quality) .
3. Positioning with respect to use or application (i.e., associating the product with a use
or application such as the use of benefit of this functional food is it can give benefit to
the consumer health).
4. Positioning by the product user (i.e., associating a product with a user or a class of
users).
5. Positioning with respect to a product class
6. Positioning with respect to a competitor (i.e., making a reference to competition, as
in fast food chain, hypermarket such as Quaker Oat for oat product as functional food)

iii. Provide any THREE examples of any well-established commercial products to

support your answer in (i). (6 mark)

- Gardenia for bread

- Quaker Oat for oat
- Nature’s Best for Vitamin C