Energy bar industry

MKTG 6650 Summer 2008
Strategic Market Planning

Section: S

Student Names:
Marcela Giraldo
Maria E. Kobayashi
Yanfei Shi

Midterm Assignment – Energy Bar

1. Category Analysis:

1a. Market segmentation
|Type of Segmentation |Variable |Description |
|Demographics |Gender: men and women|- People from both sexes who have satisfied their basic needs and are |
| |Age: 18 + |able to afford an energy bar. They are adults who can decide what is |
| |Income: mid class to upper |good or bad for them in terms of food and health. |
| |class| |
|Physiographic |Lifestyle |- Athletes that need an effective energy source |
| | |- Women involved in fitness. |
| ||- Busy professionals looking for a quick energy snack |
|Behavioral |Benefit seeking |- Diet conscience (both for weight loss and general health) |
| | |- Special dietary needs (dairy free, diabetic). |
| | |-Product base (textures, flavors, ingredients, sizes and coatings). |

So What? The energy bar industry has had to develop brand extensions for its products to be able to satisfy the different segments. For example, women are more concern to get a product with low calories while young men look for a product whose flavor is not too sweet. As such, the energy bar industry has become veryspecialized to be able to meet its customer’s demands.

Customer motivations and unmeet needs
The most important motivation is to get a product that acts as an energy source. Customers are able to consume such a product if it meets their requirements in terms of ingredients such as vitamins, minerals, flavors and calories content. Additionally, customers see the product as convenient due tocharacteristics such as size, perishability, portability, storage and place where customers can buy the bar.
The unmeet needs are generated when consumers look for a food bar “all in one”. Some consumers want a bar that provides energy (energy bars) and at the same time get candy flavors (candy bar). Also, customers would like to have an energy bar to consume a bar that can be a replacement ofa meal.
So What? While consumer motivations continue to increase, there are more opportunities for the industry to grow. Nonetheless, it is important that companies make it clear the product differences to consumers to avoid overlaps when developing each market segment.

Similarities and differences among the segments
Similarities among the segments are first those related to theproduct benefits; consumers want a bar that provides energy. Second, consumers in all segments value the convenience factors such as portability, size, storage and perishability. Last, in all the segments consumers that are able to pay for such a product; consumers do not look for a cheap product but for a bar that satisfy their needs. The differences are their particular needs in terms ofproduct ingredients and textures. So What? As it has been described, the industry has to extend the energy bars products to satisfy the customers’ needs and wants and continue to capitalize in the customer’s similarities and become efficient in terms of production, distribution and promotion.

How might a company link customer motivations to value propositions
When companies offer a product...