In 1986, PowerBar, a Berkeley firm, created the energy bar category with its cla
ID: 398924 • Letter: I
Question
In 1986, PowerBar, a Berkeley firm, created the energy bar category with its classic chewy bar. Positioned as an athletic energy food, it was distributed at bike shops and events that usually involved running or biking. The target segment was the athlete who needed an efficient, effective energy source Six years later, seeking to provide an alternative to the sticky, dry nature of the PowerBar, a competitor developed an energy bar with superior taste and texture and branded it the Clif Bar. Soon after, another competitor introduced the Balance bar, which offered a blend of protein, fat, and carbohydrates based on the nutrition formula associated with the "Zone Diet." Faced with these challengers, PowerBar responded with Harvest (a bar with a much more mainstream taste and texture) and ProteinPlus (an entry into the high-protein subcategory closely related to Balance) The makers of the Clif Bar observed that women athletes or those involved in fitness were approximately half of the market. However, their unique needs in terms of macronutrients, vitamins, and taste were not being addressed. Luna, the first nutritional (not energy) bar for women, was Clif Bar's answer to this unmet need. The bar had a light crunchy texture, came in flavors like "lemon zest and chai tea, and contained nearly two dozen vitamins, minerals, and nutrients. The target market consisted of time-strapped women who wanted an energy bar, but one more tailored to their needs Both in reaction to Luna's success and to expand the segments for which the category was relevant, PowerBar focused on the sensitivity of women to calories and portion size. In response, the firm created Pria, which was smaller and had only 110 calories but had superior-almost indulgent-taste and texture The energy bar industry exploded over the next few decades exploiting the demand for health and weight control, portable meals, better ingredients, and nutritious snacks. Sales went from $100 million in 1996 to $2 billion a decade later and well over S6 billon by 2016. The growth was fueled by submarkets each driven by a unique "must have." These submarkets are defined by different applications, ingredients (consumers are becoming more ingredient sensitive), and value propositions. Over time, there have been nutrition bars, cereal bars (a replacement for breakfast), protein bars, diet bars (brands like Balance or Atkins that followed a popular diet), natural ingredient bars, all with numerous textures, flavors, sizes, and coatings. Over the decades, many hundreds of products were introduced. However, only a few became major players One of the successes was KIND, a brand that grew from nothing in 2004 to over $550 million in 2015 (33% of the market). It was driven by a clear vision to be a healthy, tasty, and natural snack in a sea of snacks that look and feel very different. KIND products are composed of whole fruits and nuts using gluten-free, non GMO, sustainable ingredients with much less sugar than competitors. They are not cheap nor easy to produce given high-quality ingredients and production barriers that required innovation, investment, and commitment to overcome. The brand vision is communicated by a clear package that allows customers to see the ingredients. The tagline "ingredients you can see and pronounce" reinforces this transparency positioning. Reacting to a surge in interest in protein, KIND introduced a line of savory bars with more protein, including flavors such as honey smoked barbeque KIND has a higher purpose-to encourage people to reward acts of kindness. There is #kindawasomeness cards handed out to someone doing a kind act for someone else. The card has a website and code on which the card holder can request a packet of KIND bars along with another card to give to someone spotted doing an act of kindness. There have been 1.2 million documented acts of kindness as a result. There is the KIND Causes where, each month, members vote on which customer-nominated causes should be supported with a $10,000 donation. They vote by committing to do an act of kindness. For example, one proposal warExplanation / Answer
1. The submarkets are : Nutrition Bar, Cereal Bar, Protein bar, diet bar, natural ingredient bar.
The must haves are application, value propositions
2. The kind initiative isto be healthy and tasty and being natural atthe same time and ingredients with less sugar and also aims at a high purpose of encouraging people to reward kindness by handing over the #kindawesomeness card, which is a unique marketing strategy embdded with benevolent message. The car dcontains a website code that can be logged into and members can vote to support donation amounts.
3. The environmental changes to affect this industry would be growing fast life leading to lot of junk food consumption giving rise to sugar level in people's body and also cholesterol due to consumption of more fast foods. That might lead to a decline of intake of any kind of chocolaty bar , bei it labelled as energy bar or no sugar.
4. Luna featuring sensitivity to women calorie consumption and portion size , Pria being smaller in size, however comprising superior ingredient, taste and texture, Kind being made of wholesome fruits and nuts and gluten free, these becomes sustainable and makes the brands extendable by the power of innovation , clarity to overview ingredients and health factor