The Energy Bar Industry
1. Conduct a thorough analysis of this category’s customer, competitors, market, and environment from the perspective of PowerBar. What are the key strategic questions? What additional information would you like to obtain? How would you obtain it? What are the threats and opportunities? In particular address the following issues:
a. How is the market segmented? What are the key customer motivations and unmet needs? What are the similarities and differences among the segments? How might a company link customer motivations to value propositions?
The market for PowerBar’s was once segmented to only athletes, is now also segmented towards a much larger segment. This segment now includes on the go and
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Pria is a bar (not for energy) but nutritious for women which was created to compete with Luna. Clif bar realized that there was a market that wasn’t tapped into yet, which was the population which has an interest in vitamins and nutrition. These people weren’t looking for energy but instead a bar that created vitamins, minerals, and nutrients in one. These bars are for the calorie cautious individuals.
As this market emerged so did the market that was interested in a low-calorie life style. What can PowerBar provide to this market?
PowerBar seems as if they are keeping an eye on the competition but seem to be followers in the market instead of leaders. They look at their competitors and imitate what they have. PowerBar is failing to do their market research but instead relied on other companies studies/creations.
PowerBar and other companies are trying to get into the women’s market by the low-calorie option bars. However, they have more competition in this market with the Nutri-grain, Quaker Oats, General Mills, Slim-Fast, etc. c. What are the market trends? The growth submarket? The key success factors?
The market continues to grow health cautious and PowerBar has the opportunity to take advantage of it through a good advertising team. This is the chance to figure out what the customer wants in a good energy bar
The current marketing profile of Boost juice is to manage the brand so effectively created. The image of boost juice in the market is very high. The impact it has created in the minds of consumers and competitors is so clearly marked that it has been able to rise itself above the marketplace and position itself in the minds of the customers. The brand communications have also been promising and have fulfilled all those messages which it has committed itself to. This has been the greatest source of equity. The awareness that boost juice has created has put off all other competitors far behind and hence it is the industry leader. The brand is instantly recognizable by its distinct packaging, flavor and inimitable appeal. It is relevant as a healthy juice bar while competitors have not been able to carve that niche. People prefer this to other juice sticks. Boost juice has returning customers the greatest asset that any organization would want and aspire for. It enjoys a lion’s share of market for juice bars and though sold at price premium it commands the respect due to it.
Over the last decade, drinks containing high amounts of caffeine, sugar, and other ingredients that increase energy have been rapidly growing in popularity. Clearly these beverages are known as energy drinks. Energy drinks have gotten so popular that it is extremely rare to find a convenience store that doesn’t sell a variety of them. Students use energy drinks to cram the night before a test, athletes use them to exercise, party animals mix them with alcohol to drink more than humanly possible, and some people just drink them to stay awake at work after a sleepless night. Red Bull, one of the most popular energy drinks in the market, claim to enhance
In 2006, Kellogg’s launches Special K forest berries and Special K honey almond. A year later, Special K Advantage (fibre) appears in Australia. The last flavor is Special K chocolatey flakes, launched in 2009. The packaging has barely changed since its creation: white background, to represent the purity of the product, and the milk, the big symbol in the middle for the product identity, and some flakes on the right side, for the product representation. There has been an evolution of the nutritional information: now the main compositions are on the front side of the package (sugar, fat, calories). It is part of the strategy to position the product as a partner in weight loss. Te product is considered as a good quality, thanks to its characteristics (benefits for the consumer), and the “Our guarantee to you”, a little section on the left side of the box, explaining that Kellogg has a quality system that assures the highest quality standards to deliver the best product to the consumer. The target of Special K is women, from 20 to 40 years old. Women who try to look and feel good, who are working or raising their children, who want to conciliate their activities with their femininity. Women are represented next to the mention “99% fat free”, and on the back side of the box. Usually they are slim, active and happy. The strategy of Special K is to accompany women all day long, with different products, and to propose them to eat cereals not only for
NutriGrain wants you to know that eating their product can inspire you to make healthier decision for the rest of your day. The company is telling consumers that buying their product is a healthy choice that can help you stay away from other unhealthy snacks. With this commercial, NutriGrain preys on the guilt most women have if they indulge in the high calorie office snacks or are too busy to eat at all. NutriGrain wants women to know that they do have time to eat their product, and by doing so, they can create a healthy mindset for the rest of the
Competitive Rivalry: The threat is highly potential, as the Step-and-Glo is a simple product with multiple uses. The product innovation will make it extremely easy
The Clif Bar Store is your one-stop shop for organic energy bars and other nutrition food and beverages. Anything and everything you need for your sports nutrition needs can be found at the Clif Bar store. You will always need to replenish your energy when you are in the middle of an excursion; so just pack some goodies from the Clif Bar Store and you are good to go. The store provides a wide range of nutria bars and other food and beverages such as Mojos, Shots and Builder's bars.
Increasing international growth and commitment to the environment and their employees are major strengths for the company. Growth opportunities are present in the organic market, which is projected to grow 9% (Scott-Thomas, 2012), and the smoothie market, which will see a potential growth of 1.6% through 2013 (Technomic, 2012). Some of the weaknesses facing the company are its narrow target market in the organic product industry and lack of traditional advertising. Major competition from Odwalla and Naked Juice are threats to growth and the volatile market for fruit and other natural ingredients may cause unpredictable price increases and as well as an unpredictable future. Also, shifts in popularity of the trendy organic product movement may cause a decline in future revenues. However, both the smoothie and the organic/health food markets are growing rapidly and Clif Bar can secure a larger share in these markets with the introduction of Simply Clif.
This will show the people at the event that Clif bar is very helpful and it will help you during physical activities and sports. Before the bike ride, everyone bill be given a bar and the Clif bar team members will explain what they are, how healthy and organic they are. We will also have 50% off coupons on boxes of Clif Bar if anyone is interested in them after the event. By explaining the benefits of Clif bar such as organic ingredients, consumers will know there no added preservatives or any unnatural ingredients. They will also know the story behind Clif bar and how it has been made in a kitchen. This way consumers will be satisfied and consider the bar as most energy bars do not do this and are not 100% organic. We will reach the target market by having the relay bike race. The bike race will attract athletes, active individuals, consumers who work out. These are the consumers who would consume Clif bar for energy so we have our whole target market in the bike
What driving forces do you see at work in this industry? Are they likely to impact the industry’s competitive structure favorably or unfavorably? (Did we answer this question?)
Seriously read the label of the bars with the most modest packaging and healthy names. High fructose corn syrup, maltodextrin and all the rest have been in the news alot lately. Fortunately this can be avoided without sacrificing nutrition. In this recipe you will create a protein bar out of four simple, healthy and cheap ingredients in less than ten minutes. You will need whey protein powder. These come in literally hundereds of flavors. I suggest sticking with more basic flavors such as chocolate, vanilla, caramel or peanut butter. The flavor is up to you but keep in mind you will be mixing it with peanut butter and an 'Exotic kiwi' flavored powder is probably not the best choice. You will also need oatmeal. Again there are alot of varieties on this one. You can get steel cut, organic and instant oatmeal. Its personal preference here too. I would stick with plain, instant oatmeal because it is cheaper and flavored oatmeals might taste weird with the peanut butter or protein powder. Peanut butter is the third ingredient and this too can give alot of options. Almond or cashew butters are popular and usually dont contain any filler ingredients. Sunflower seed butter, macadamia butter and hazelnut butter are also options but these can be more on the expensive side costing upwards or $15 for a 6 to 8 oz jar. No matter what you
There are (3) reasons why I have chosen energy drinks as my NAB. First off, there is a growing market for energy drinks. Red Bull and Monster Beverage Corporation, together, form over 80% of domestic energy drinks volumes by estimates. Dollar sales for energy drinks grew almost 6% to $6.67 Billion in measured channels in 2013, which propelled sales growth for convenience stores (Team, 2014). A growing thirst for caffeinated “energy” drinks, which include the likes of Red Bull, Monster, and Rock star, has spurred a heart-thumping surge in sales. Globally, the energy drink industry has gone from a $3.8-billion business in 1999, to a $27.5-billion
Both competition and market size are of major importance when one explores the positioning of a product. In the case of Crescent Pure, this is vital as Ryan must determine the level of competition that will be faced if the product is marketed as either an energy or sport drink. In the case of an energy product, it should be noticed that there is heavy market dominance by Together, Freight, Razor, Torque and Steller, as they account for roughly 85% of the market. Despite this, it should be seen that the average price point for a 5oz can is $2.99 which is notably higher than Crescent’s $2.75 pricing. Additionally, the market size for sport drinks is of particular interest as it is estimated to grow to $8.5 billion by the year 2013. This, coupled with the fact that the market had grown 40% between the period 2010 – 2012, makes this sector of particular interest to PDB.
A slow growing market is a great way to characterize the energy beverage category in late 2007. This industry was increasing in profits still but was not increasing in profits as quickly due to factors such as market maturity, increasing in prices, competition and new hybrid products (Kerin & Peterson, 2010). The market was still very small but was dominated by Red Bull due to it being one of the first energy drinks, which caused it to dictate the market and have more of an advantage than the other energy beverages. So in late 2007 the market for energy drinks was still
Energy drinks have outperformed the growth in carbonates in the last few years, and present a substantial opportunity for beverage manufacturers to extract further growth from their sales. There are many driving forces of change and critical success factors in the energy drink industry. Companies such as Coke Cola and Pepsi contend with criticism from health officials due to the excessive caffeine in most high-energy drinks. However, before the 2000’s consumers were accustomed to carbonated soft drinks as the traditional beverage. The shift to an energy drink, sports drink, and vitamin enhanced waters increased sales while becoming an alternative beverage choice for a fast-paced mobile society. Therefore, this industry endures many
The energy drink market is a growing market and a lot of companies are entering it as they have found it to be attractive and profitable. Some of these companies are growing rapidly and they present a threat to Red Bull. One of those companies that are getting stronger by time is Power Horse.