CM317 Final Ad Plan:Changing Consumer Perceptions About

Casey Bariteau Giovanna Gonzalez Sara Ketabi Richard Salazar

PowerBar

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After experimenting and creating the first PowerBar with wife Jennifer Biddulph, Brian Maxwell an athlete and entrepreneur from Canada founded the PowerBar company in 1986, launching the first energy bar for athletes. A new marketing team was implemented post Nestle’s $375 Million purchase of PowerBar, and the current PowerBar slogan is “Power to Push.”

In 2008, PowerBar launched its national advertising campaign featuringathletes such as Michael Phelps and Lamar Odom highlighting the remarkableeffectiveness in sustaining and improving athlete’s athletic ability and endurance.

The Marketing Problem Although PowerBar has numerous product lines that cater to

both athletic males and females, consumers are predominantly male athletes. Female athletes, as well as athletic ‘spectators’ have not been heavily targeted, and large portions of consumption and sales from these types of consumers are as a result, missed out on.

Campaign Marketing Objective Our “Power Through it All” campaign aims to broaden the types

of consumers to include spectator athletes and the more common, less athletic nutrition and energy bar consumer. The campaign aims to redesign consumers perception of the brand so that consumers believe that all situational settings are appropriate settings for PowerBar to be consumed at.

Athletic/Sports Bars

Diet Bars

Health/Wellness Bars

PowerBar•Athletic/Sports Bar segment leader•$70M in sales in FY2011 (Athletic/Sports Bars segment)

Clif Bar• Market leader 23% Market Share•Leader in both Health/Wellness and Diet Bars sub segments•$227M in sales in FY2011 (across all segments)

• 14% growth in 2011 with $1.7 Billion in sales

• Expected to reach $3 Billion in sales by 2016

• Athletic/Sports Bar segment is the smallest segment

• Health/Wellness Bar segment is the largest segment

• Total U.S. sales of nutrition and energy bars increased by 71% between 2006 & 2011

• Sales expected to continue growing

“Nutrition and Energy Bars” Market

The nutrition and energy bar category, as defined by Mintel, is segmented into the

three sub categories; the health/wellness bar segment, the diet bar segment, and the

athletic/sports bar segment

Category Overview

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Total US Retail Sales in Nutrition and Energy Bar

Market FY06-FY16 (at inflation adjusted

prices)

Nutrition and Energy Bar MarketSub Segment Total US Retail Sales

FY09 – FY11

SITUATIONAL ANALYSIS

Key Trends

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“While sales of many consumer products have seen declines due to the poor

economy, this has not been the case for the nutrition and energy bar market. While

not entirely recession-proof, this sector has shown itself to have staying power even

in the light of continuing economic woes hitting many consumers’ wallets.”

- David Browne, Senior Analyst www.oxygen.mintel.com

As Americans continue to become more health conscious, they are replacing traditional unhealthy snacks with nutrition bars. With 42% of people reporting they follow a “mostly healthy diet,” energy bars have become increasingly popular amongst those who seek a convenient and nutritional snack.

Consumers are also turning to nutrition bars for a cost-effective way to obtain their nutritional needs due to the economic downturn.

People no longer just need energy bars to workout – longer work hours have consumers turning to energy bars as a caffeine replacement to get them through the day.

Brand Assessment

SITUATIONAL ANALYSIS

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Current slogan: “Power to Push”

SWOT Analysis:

Market Share: 8.7% Sales

2011: $76 million 2010: $75 million

Breakdown of 2011 sales by bar: PowerBar Performance

$21 million PowerBar Protein

$18 million PowerBar Triple Threat

$16 million Primary Competitors:

Clif Bar, Balance Bar, Atkins Advantage, Luna Bar, Kashi GOLEAN Bar

Secondary Competitors: Larabar, Nature Valley, Fiber One

Strengths Leader in the athletic/sports bars segment Has successfully tapped into its niche market of serious

athletes and gym-goers Strong brand reputation – sponsors many events and

athletes Strong following on social media sites such as Facebook and

Twitter Weaknesses

Low awareness of other bars in PowerBar’s product lines Packaging is dull and dated

Opportunities Change consumer perceptions about the brand by

marketing other bars PowerBar offers i.e. whole grain granola bars, iron girl bars, etc.

Tap into the consumer’s needs for “healthy snacking” instead of only focusing on performance bars

Develop bars that contain organic ingredients to capture more health conscious consumers

Threats Clif Bar continues to grow in the athletic/sports bars

segment and has potential to beat out PowerBar as the leader in the segment

Low barriers to entry in this category – new nutrition bars are frequently introduced to the market, becoming even more specialized and tailored to fit consumers dietary needs

Product

Brand: PowerBar“Power to Push”Product lines include 12 kinds of energy bars, energy gels, sports drinks and mixes, energy ‘blasts,’ and dietary supplements, among others.Functionality: PowerBar offers dozens of energy bars that cater to different consumer needs, whether it be for performance enhancement or healthy snacking

Top Selling PowerBars:

PowerBar Performance Bar

PowerBar Protein Plus

PowerBar Triple Threat

Price

Prices for PowerBars are consistent across most distribution channels.

PowerBar Performance Bar $1.99PowerBar Protein Plus $2.99PowerBar Triple Threat $1.99 Bundling offers multiple bars per pack, at discounted prices

Place

Worldwide distribution of all productsPowerBars are sold at: All major grocery

and convenience stores

Specialty stores such as GMC

Gyms and fitness centers

PowerBar online store

Third party online retailers

Health/dietary supplement and specialty stores

Promotion

Slogan: “Power to Push”

“Power to Push” campaign featured famous athletes from different disciplines, including Michael Phelps and Lamar Odom

Mobile App Ads used to target specific active customers

Company website PowerBar Facebook

page PowerBar Twitter

page PowerBar sponsors

and holds major athletic events, such as the Dew Tour

Discounts and coupons offered on website

The Marketing Mix

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Sales: 2011: $227 million 2010: $186 million

Market share: 21.8% Current leader in the market Although Clif Bar is leading

in the overall category of Nutrition and Energy Bars, PowerBar is in fact ahead of Clif Bar in the brand segment, Athletic/Sports Bars. (Mintel)

COMPETITIVE ANALYSIS

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Strengths • Leader in the health/wellness bar segment. • Strong brand recognition and awareness• Has extensive product line with bars catering to

children, healthy snacking, workout supplements, etc.

• Great taste and large variety of flavors• Focuses on the all-natural and organic

ingredients, without the use of pesticides of synthetic materials

• Clif Bar website consistent with Clif bar packaging and look

Weaknesses• Falls behind PowerBar in the sports/athletic bar

segment• Product line is limitedOpportunities• Products such as the “MoJo Bar” are rapidly

increasing in popularity Threats• Increases in competition due to growing

category, despite recession

Current slogan:“Nutrition for sustained energy”

COMPETITIVE ANALYSIS

Balance Bar

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Sales:• 2011: $41

million• 2010: $40

million

Market Share: 4.2%

Strengths• Website contains blog that provides recipes, shopping tips, etc. that fit into

the consumer’s healthy lifestyle• Strong understanding of the product; Consumers know in what situations to

eat a Balance Bar • Has appealed to the consumer need for a snack to get them through the day

Weaknesses• Market share declined from 2010 to 2011 by almost 1% Opportunities• Focuses on a specific type of consumer- those are working 9-5’s and need

energy• It gives you energy but not for working out

• Just launched Nimble, an energy bar for women that is high in vitamins and is sweetened with Truvia

• first Balance Bar made especially for women, with only 120 caloriesThreats• Has little market share against its competitors • Must continue to build brand awareness in order to stay relevant in such a

saturated market.

Current slogan:“Enjoy what keeps you going”Positioning statement:

To the working, on-the-go middle class consumer age 18 to 54, Balance bar is the reliable all-in-one energy bar brand that brings flavor and nutrition to keep you going.

Market share:o 7.1% in the industryo 25.3% in the Diet Bar

segment Sales:

2011: $79 million 2010: $61 million

More focused on being a “diet bar,” yet still has a strong share of the nutrition and energy bar industry.

Positioning statement: To the weight and health

conscious consumer, age 24-54, Atkins Nutritionals is a snack bar that helps fight hunger in between meals, that brings guilt-free indulgence to the consumer.

COMPETITIVE ANALYSIS

Atkins Nutritionals

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Strengths • Leader in the Diet Bars segment• Strong brand familiarity due to

the Atkins Diet brand• People trust the brand• Atkins website supports consumer

with comprehensive information about his/her dieting lifestyle

Weaknesses• Narrow market as its mainly

focused on low calorie bars and meal replacement

• Caters directly and only to those trying to lose weight

Opportunities• Introduced 6 new Atkins’ Day

Break Bar• Real opportunity for growth and

tapping into consumer needs for bars that are, for example, high protein or low sodium.

Threats• Especially susceptible to the low-

carb diet trend since target market is dieters

• consumers may decide to cut out nutrition/granola bars, such as Atkins’ bars

• Poor social media presence

Social MediaPowerBarFacebook Fans: 297,818 Twitter followers: 9,846Bio on the Facebook “We started Power Bar to help athletes reach their goal by providing nutrition tools for optimum athletic performance.”

Clif BarFacebook Fans: 114,338

Twitter followers: 106, 685

Balance BarFacebook Fans: 119,593 Twitter followers: 2,949

Atkins NutritionalsFacebook Fans: 116,304

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PowerBar Current Target Audience: Males, Age 18-49 Graduated college plus Most work in:

Sales and Office Occupations Professional and Related Occupations

Most have household incomes higher than $75,000

Users tend to have higher disposable incomes

Heavy Internet users React well to outdoor ads

TARGET AUDIENCE• How often do they buy Power?

o 3-4 times a week• What benefits do they look for when

eating PowerBars?o A quick fix of protein and vitaminso Everyday energy in place of coffee

• Where do they buy their PowerBars usually?o Convenience stores, grocery stores

• How do they make their choice to buy PowerBar?o “I love the flavors – in particular,

Cookies ‘n Cream and Chocolate Peanut Butter.”

o “I like that I can taste the protein.”o “You can feel when you’re getting

protein – you know it’s the real deal.”

• What do they like about the PowerBar brand?o The company is “respectable,” has

been around awhileo It is “The Original Bar”

• What do they think about the PowerBar brand now?o “Where’s PowerBar?”o Haven’t heard from the brand in

awhileo Newer brands could “step all over”

PowerBar if they don’t “keep up with the modern bar”

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* Information gathered from MRI+ research and two one-on-one interviews

TARGET AUDIENCE

What they watch: ESPN The Discovery Channel National Geographic

Channel Comedy Central History Channel

What they read: Types of Magazines:

Men’s Magazines Business/Finance General Editorial

Their favorites: ESPN The Magazine Men’s Health Smart Money Runner’s World Sports Illustrated Time Magazine

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TARGET AUDIENCE

Websites they often visit: ESPN.com Amazon.com Hulu.com NFL.com NBA.com Pandora Gmail Yahoo! iTunes.com Superpages.com

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Types of media they gravitate towards:

Magazines Newspapers Internet Radio: Weekdays 3:00pm-

midnight Radio: Weekend 6:00am-

3:00pm

*MRI+

The problem to be solved is: Consumers seem to be confused

on how/when to eat Power Bars. Many believe it is simply an exercise supplement or performance enhancer.

The key insight we uncovered is: PowerBar has done well in

establishing a loyal following from its core demographic: serious athletes and gym-goers.

However, research indicates many consume energy bars as snacks, and not performance enhancers

Key Insight

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In which of the following situations do you con-sumer energy bars?

Before/After Excercising

As a Dietary Supplement

As a Meal Replacement

As a Snack

Other

* Results from survey of 71 people about their health habits and energy bar preferences

Positioning Statement

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To the on-the-go health conscious consumer of all ages,

 PowerBar is the leading athletic/performance

bar brand 

That brings sustained energy and power to any given situation

Advertising Objective

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Cognition

o While PowerBar is a mature brand and product in the steadily growing nutrition and energy bar market, leading the Athletic/Sports sub segment in sales, survey respondents and consumers feel that the PowerBar is only to be consumed by the active sportsman. They are unaware of the multitude of situations and types of consumers that PowerBar may be appropriate for. We want to educate energy bar consumers and teach them that the PowerBar may be consumed at any given time as a supplement, snack, boost or meal. Consumers should not limit their purchase and consumption of PowerBar to specific situations.

Association

o Consumers should feel comfortable and effortless in consumption and purchase decision making. We recommend PowerBar to create a stronger and clearer association with its already existing female targeted products IronGirl and Pria, for female consumers to become more aware and willing to purchase said products. Brand loyalty amongst female consumers to the PowerBar brand would carry over into product lines under the PowerBar Brand.

o Extend PowerBar’s accessibility and appropriateness to non active consumers to consume as a snack, supplement, or diet bar

o Target ads to appeal to on-the-go, working individuals who have little time to cook and have meals while at work

CREATIVE STRATEGY

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WHO IS THE ADVERTISING TALKING TO?Our ad “Power Through it All”, featuring a group of friends watching a sports event on TV while each eating PowerBars is advertising to on-the-go, health and budget conscious consumers, seeking snacking and dietary supplement alternatives – we describe them as the ‘spectator athlete’. WHAT SINGLE BENEFIT SHOULD THE ADVERTISING PROMISE?The advertising should promise the flexibility of the PowerBar to be appropriate for consumption in any given situation, hence the campaign title “Power Through it All.” WHY SHOULD THE CONSUMER BELIEVE US?

Customers should believe us because PowerBar has a proven track record in its established leader position as the top selling athletic/sports bar in the nutrition and energy bar segment. PowerBar’s sponsorship of several major sporting and athletic events has also built its reputation to be a leader in supplying the active lifestyle with the required power and energy. WHAT DOES THE CONSUMER THINK NOW?Consumers are generally confused about when and where they are ‘supposed to’ consume a PowerBar. Someconsume it outside of the active sporting setting, whereas others consume PowerBars

strictly before, during, orafter exercise. WHAT DO WE WANT THE CONSUMER TO THINK? We want consumers to change their perception of the brand and all product lines, and become more aware andcomfortable with consuming the different PowerBars at any given time in the day, be it

as a diet bar, aathletic/sports bar, or a health/wellness bar

CREATIVE STRATEGY

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BRAND PERSONALITY AND VISION

PowerBar is currently marketed to the dedicated , motivated, and committed athlete leading an active and athletic lifestyle. The use of active adjectives such as “Push” in the current slogan “Power to Push” mirrors the brand’s edgy and motivated personality. Having athletes pictured in many of the advertisements, showing

Intensity and muscles conveys the high octane rush that PowerBar is suited for. Because advertising and marketing efforts are so heavily focused on such a demographic, ‘spectator’ athletes who enjoy watching sports just as much, if not more than athletes enjoy competing are left out of the potential target market

Our “Power Through it All” campaign will change PowerBar’s limiting image currently confined within the athletic/sports bar sub category, to be diversified and expanded into more casual and common situational settings, including but not limited to sporting events. The current slogan “Power to Push” will be modified to “Power Through it All” to convey PowerBar’s ability to bring energy and nutrition to all parts of the day.

In order to attract our target audience, we will feature ‘normal’ non-athlete figures in our ads to provide relevant ground for our potential consumers to associate with

Situational contexts like the casual watching of a sporting event will be featured as well to encourage consumption of PowerBar products and its appropriateness for all sorts of times and settings.

Start a microsite “For the Spectator” and have people take pictures of them consuming the product.

“How did you have your PowerBar today?” Instagram, Facebook, Twitter hashtag Making it as easy for consumers as possible

Promote “Family Power” packs, making it easier for the end consumer by clearly telling them when, how and why they should consume our products. The package will have a little something for everyone, not matter what athletic build you are.

Sell PowerBar at sports games for the spectators Host a sweepstakes competition in which a randomly chosen winner will receive a

set “package” of PowerBar products custom fit for the winner’s situational consumption, whether that be for dieting purposes or as a workout supplement.

Shows the public that PowerBar can be consumed in a variety of ways and has a range of products from gels to smoothie bars appropriate for different times and situations in a person’s routine.

Ad 1 will be placed on sports websites and blogs such as ESPN.com, Men’s Health, SportsGrid and BleacherReport – targeting young men 16-30 who are dedicated to following sports

Ad 1 will also be placed on billboards around stadiums, encouraging spectators to chose the snack of the athlete: PowerBar

Ad 2 will be placed in Forbes, W, BusinessWeek, Wired, and Time Magazines, The Huffington Post, New York Times, corpette.com, and The Daily Muse – targeting young working professionals

Ad 3 will be placed in Martha Stewart magazine, youngandthrifty.ca,

MEDIA PLAN

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Market PowerBar as a differentiator that reaches a broader market rather than a target market by rebranding existing bars such as IronGirl to make it consistent with the PowerBar look, as it already has a brand following. Change packaging overall – make it more eye-catching and exciting.

Many people watch the athletic events that PowerBar sponsors, but most do not participate in them. So, rather than only marketing PowerBar as the bar for an athlete, also market it towards an athletic event spectator who does not need that surge of energy for long hours of practice, but rather wants to enjoy a snack while watching.

Promote product lines like the “spectator family,” including the PowerBar, IronGirl, PowerBar Gels for children, to show it is not just for the “macho men” but for every type of person.

Change the packaging of PowerBar to appeal a wider audience range. “They could definitely work on the packaging.” “Make it look less like it is for big body-

builders, that’s what turns women off from it.” “The packaging is boring and too old-fashioned.”

Make consumers more aware of the variety of different bars Harvest, Nut Naturals, Pria, Iron Girl Energy Bar

Focus on marketing bars as more of “snacks” for everyday life Without isolating current loyal users, market Power Bars as a healthy snack or a

replacement to caffeine. “I eat a PowerBar in place of coffee – it is better than coffee because you can’t burn off

caffeine.”

Recommendations

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Two one-on-one interviews with Saksham Narang

Age: 20 Male College student Frequent Gym-goer

Katie Gifford Age: 19 Female College student Ran cross country &

was on the cheerleading team in high school

APPENDIX – RESEARCH & SOURCES

Questions asked

Would you describe yourself as a loyal user of PowerBars?

How often do you eat PowerBars? How often do you workout? Would you describe yourself as a health-

conscious person? What do you like about PowerBars? If not for meal replacement, why do you

consume PowerBars? What do you think PowerBars as a brand could

work on to keep you more interested? What do you like about PowerBars? How do you feel and what do you know about

the PowerBar brand? What do you think PowerBar could do to

improve?

Sources:• One-on-one interviews• Online survey with 71 responses• MRI+• www.twitter.com/powerbar• www.facebook.com/powerbar• www.powerbar.com• http://www.answers.com/topic/po

werbar-inc#ixzz2DeKZUuTK• http://www.mobilemarketer.com/

cms/news/advertising/5269.html• www.technorati.com• http://academic.mintel.com.ezpr

oxy.bu.edu/display/613334/• http://academic.mintel.com.ezpr

oxy.bu.edu/display/613337/• http://www.powerbar.com/about/

about.aspx• https://twitter.com/PowerBar• www.Clifbar.com/• www.Balance.com/• www.atkins.com/Home.aspx