Power Bar - jenna lueken

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Amanda Elsen & Jenna Lueken
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Founded by Brian Maxwell, a Canadian athlete
and entrepreneur. Him, his friend and his
girlfriend used $55,000 cash to launch the
company in 1986 in California.
 It was the first energy bar made for endurance
athletes.
 Bought out by Nestle in 2000 for $375 million
 Maker of sports bars, protein bars, nutrition
bars, energy fruit chews, energy gel and other
products targeted towards distance athletes.
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Levels of Competition
Segmentation
Situation Analysis
SWOT Analysis
Objectives
BIG idea
Strategies
Tactics
New Product Development
Budget
Implementation Plan
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Young Individual fitness
Adult Individual fitness
Price sensitive
Weight room buffs
Outdoor experiential
Dieters
Young athletes
Team sport athletes
Nutritional eaters
Natural eaters
Organic consumers
Training athletes
Active parents
Active students
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5 C’s
 Company
 Power Bar
▪ Empowering student athletes to work hard
▪ #PowerUp – brand strength
▪ Product line made up of sports bars, protein bars,
nutrition bars, energy fruit chews, energy gel, power
trail mix, energy fruit drink
▪ Increased advertising & brand name awareness
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Collaborators
 Larger distribution of products
 Better location in grocery stores
 Also distribute to college convenient stores
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Context
 College tuition is increasing therefore students
budgets for groceries causing decrease in demand
for power bar.
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Customers
 High school & college student athletes
▪ Steady size of segment
 Elastic
▪ Price Sensitive
 Customers want:
▪ Tasty
▪ Energy
▪ Low price
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Competitors
 Nutrition Bar
▪ Cliff Bar
▪ Myoplex Bar
 Snack Bar
▪ Nutri-Grain Bar
▪ Slim Fast
▪ Fiber One
 Competitor’s strengths
▪ More organic
▪ Cost advantage
▪ Customer base advantage
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Strengths:
 They are nationwide and that could work as an
advantage.
 Many well developed products, brand extensions and
line extensions
 Social media presence
 Good shelf space and variety in the Duhawk Market
 Well-developed website
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Weaknesses:
 Power bars name is not well known
 Their product doesn’t taste good, really tastes like
protein
 Not much shelf space at retailers
 Looks like a candy bar
 Don’t have many promotions- if so they are not well
known
 Higher price
 Changed their slogan many times
 Have gained a negative connotation with the power bar
name
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Opportunities:
 Availability to sponsor events such as the Tough
Mudder/ Warrier Dash/ Nascar for publicity
 There is a trend for creating new protein products
 Many markets that have specific needs that don’t have a
product developed
 Many different protein products available for purchase
 Use new technology- by creating apps for anything
about anything
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Threats:
 Cliff Bars have much of the market for the same target
audience Power Bar has.
 Many competitors in the protein bar area
 Protein products are seen as a single target market
product, people who work out frequently
 People do not just eat protein bars like granola bars (as a
mid-morning snack, or a filler for lunch)
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Sales/Revenue of Nestle Nutrition: $7 billion in
2013
 Our modifications will add another $3 billion in
revenue.
 Add another $1.5 billion in net contribution.
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Major redirection of the target market.
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Target young athletes who are looking to
better their skills & themselves in sports.
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Student athletes who work hard to get where
they want to be
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Empowering student athletes to work hard
“Power Up to a Better You!”
#PowerUp
Healthy
Tasty
Affordable
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Power up to a better you
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4 P’s
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Products
 Improve product taste
 Narrow product line
▪ Find a product target market likes then expand
 New product development
▪ Experiment with line extensions
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Price
Single$1.79 Pack $17.88
 More affordable
▪ single $1.25 Pack  $12.50
▪ 6 bars to a pack
 Compete with product competitors
▪ Chewy granola bar pack $13.08
▪ 8 bars to a pack
▪ Smaller bars
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Place
 Present in college campus
convenient stores
 Present in college concession
stands
 Front of the grocery stores by
the check out
 Closer to the grocery products
▪ Walmart- Placed in the diet
supplement area
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Promotion
 YouTube more commercial and advertising
 Social media like and share contests
 School voting contests for sponsorship from
power bar
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Facebook
 Status: Out with the old in with the new! Power Bar has
made some changes and we need your help to make it a
success. Check out the changes and leave comments at
www.powerbar.com/#powerup
 Status: How does Power Bar help you #powerup? Submit
your photos and be featured on the Power Bar website.
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Twitter
 RT this for a chance to win a Power Bar gift pack
with new the new products #powerup
 #Powerup before and after every workout with
the new improved Power Bar products
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Protein Trail Mix
 Power Mix
▪ Including: Nuts, Raisins, Yogurt
Clusters, Protein Clusters, Dark
Chocolate Chunks
▪ Packaging: easy resalable bag, easy
to grab and go.
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Fruit Energy Drink
 Power Juice
▪ Including: Whole servings of real fruit
juice
▪ Unique resalable bottle
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POWER JUICE
Mango Passion
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Add New logo
Keep Candy/Granola bar look
Keep all products with a uniform look
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Partner with schools
College bookstores
College convenient stores
High school vending machines
Concession stands
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Nestle gave us 3 million dollars to create a
new BIG idea to turn around Power Bar
 $1 million on new distribution areas
 $500,000 on new packaging with small alterations
 $1 million on the new advertisements with the
new slogan and logo
 $450,000 for new product development
 $50,000 for promotional contests
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Eliminating the products we don’t want to
sell any more
Alter packaging for existing products
Create more affordable prices
Placement and Distribution put in to place
Advertise the new product lines
Implement Social media tactics #Powerup
Create contests to attract more of our target
market
Develop the Power Bar position
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