Luna Bars By: Chelsea Schneider, Andrew Rubin, Sean Stewart& Yossi Weinberg I pledge on my honor that I have not given or received any unauthorized assistance on this examination or assignment. Luna Bar History Launched in 1999 Demand from women within Clif Bar company Quickly gained 17% market share Preexisting distribution channels Luna = Greek goddess of the moon Target Market Teenaged girls- adult women Created for active women who want something that tastes good and is good for them “It is an indulgent treat that satiates hunger and helps women more easily fit protein into their diet” (lunabar.com) Product Product differentiation from the Clif Bar Released in 1999 with the tagline “The Whole Nutrition Bar for Women” Nutz over Chocolate, Trail Mix, Lemon Zest, and Chocolate Pecan Pie Two new product lines Product (Nutrition) Boasts less than 200 calories and only 5 grams of fat Nutritional health benefits catered to women’s needs Soy protein, calcium, folic acid, zinc, iron Antioxidants GMO soy protein for breast health Product (Packaging) Promotes with bright, shiny contrasting colors on the package. Each bar has a stamp that says “70 percent organic, all natural” on the front Convenient size Clif sponsors Terracycle who offers products made out of the Luna bar wrapper Product (Packaging) Price Bars are slightly more expensive than competing brands like balance bars and power bars because of high quality and organic ingredients Luna Bar – $18.75/box (15) (Same as clif bar) PowerBar Pria - $15/box (15) Atkins Advantage - $9/ box (5) = $30 1 year after release bar price ranged from $1.49 to $1.79. Now a little higher ($1.60 to $2.30) Place (Distribution) Luna piggybacked on the distribution scheme of clif bar Can be found at: Shoppers, REI, Safeway, Giant, Target, Trader Joes, Super Fresh, Whole Foods, Nordstrom, sports specialty stores… A mix of major food distributors and sporty/earthy specialty stores as well as some women’s stores Found next to other power bars Also sold online Promotion Luna Bar Website http://www.clifbar.com/food/products_clif_bar/3024%20vs% 20 http://lunabar.com/?refer=icon Steering clear of traditional advertising to women that often resorts to stereotypes, LUNA Bar is portrayed as a healthy, yet indulgent escape. Magazine advertsements Promotion Luna Moms Club Lunafest Luna on Campus Team Luna Chix Corporate responsibility Bringing women together through sports Strengths Variety of flavors Promotes Wellness Breast Cancer Fund Large distribution channels Loyal core consumers Five “bottom lines” Weaknesses Lack of mainstream advertising Niche product Other bars market to a wider range of consumers More expensive than other alternatives Opportunities Very targeted demographic First bar to specifically target women Shift from impulse buy to a sought after product Large amount of resources Sister company of Clif Bar Threats Established brands Organic ingredient recalls Powerbar, Balance Bar, MetRx, etc. Recent recall on products containing peanuts New entrants targeting women as well Recommendations Extend product mix to align company with competitors Protein shake, other snacks, cereals Luna bar for adolescent girls, much like Clif bar for kids Adjust pricing strategy to compete better within the energy/ nutrition bar category Recommendations continued Develop promotional strategy to increase brand recognition Cross-promotional programs with Clif Bar Expand college ambassadors program to larger campuses Celebrity endorsers Social networking Sales Promotion Questions? Sources Clif Bar Case Study. Rep. Datamonitor, 2008. Print. Clif Bar & Company | Leader in All-natural and Organic Energy and Nutrition Foods and Drinks. Web. 07 Dec. 2010. <http://www.clifbar.com/>. Clif Bar& Company. Rep. Hoovers. Web. 7 Dec. 2010. <http://premium.hoovers.com/subscribe/co/ factsheet.xhtmlID=hskcjkshfsrtxs>. Dolliver, Mark. "LUNA NUTRITION BARS." Adweek Southeast Edition 22.19 (2001): 44. Business Source Complete. EBSCO. Web. 7 Dec. 2010. "Filling the Void: When It Comes to Energy and Nutrition Products, It's All about Variety." In the Markets 41.8 (2008): 38. RDS Business Suite. SportsOneSource, LLC. Web. 21 Nov. 2010 "Health bars evolve from niche." DSN Retailing Today 42.3 (2003): 24. Business Source Complete. EBSCO. Web. 7 Dec. 2010. Lunabar.com. Web. 07 Dec. 2010. http://www.lunabar.com/. "No Pain, JUST GAIN." Candy Industry 165.6 (2000): 56. Business Source Complete. EBSCO. Web. 7 Dec. 2010 Norman, Jason. "Nutritional Bar Makers Recall Some Nut Bars." Bicycle Retailer & Industry News 18.4 (2009): 8. Business Source Complete. EBSCO. Web. 7 Dec. 2010. Taormina, Steve. "Niche Markets Drive Bar Sales." Natural Foods Merchandiser (2002). RDS Business Suite. Web. 7 Dec. 2010. "WONGDOODY :: Work Portfolio :: Luna Bar :: Arrows.” WONGDOODY, a Marketing Ideas Agency. Web. 07 Dec. 2010. <http://www.wongdoody.com/portfolio/project.asp?WorkID=658>.