| The market for energy bars is very saturated with | | | | enthusiast and athlete. We would use a multiple |
| multiple companies competing with numerous product | | | | products, multiple market segments approach with our |
| lines and large amounts of product variation within | | | | many flavors of the bar. We believe the active lifestyle |
| each product line. While there are a few large | | | | enthusiast can be defined as living in the US (our |
| competitors, the easy of entry into the market has | | | | primary market and initial launch point) in a major city or |
| allowed numerous smaller manufacturers to enter the | | | | suburban area, both male and female, any race, |
| market with niche, highly differentiated products. | | | | between 16 and 65, with income (or access to income, |
| PowerBar is one of the largest manufacturers of | | | | i.e. parent's income) over $60,000. The psychographic |
| energy bars in the market today, but they lack the | | | | segmentation would be active lifestyle, which would |
| highly specialized performance bar with high | | | | include a competitive drive to win, a desire to be active, |
| differentiation from the competition. The product | | | | riskiness, and someone who works out multiple times |
| opportunity is GelBar, a fusion of Five Hour Energy | | | | per week. Behavioral segmentation could be used to |
| with the typical PowerBar formula. GelBar would | | | | further target customers who frequent a sports or |
| provide long lasting energy with the nutrients of | | | | active lifestyle store more than once per month. |
| PowerBar in a compact, transportable form. | | | | GelBar is highly competitive with many competitive |
| GelBar combines a gel-center made out of Five Hour | | | | advantages |
| Energy with PowerBar formula outside shell | | | | GelBar solves the problem of a solid bar dehydrating |
| The traditional PowerBar bar provides ample room for | | | | the consumer. While solid bars tend to lack moisture, |
| product improvement. The bar itself can contain liquids | | | | GelBar has a gel center that rehydrates the consumer |
| without allowing any though, thus making it an idea | | | | while working out. While this does not mean water is |
| formula to enclose a gel substance. Five Hour Energy | | | | not necessary, it will substantially offset the need to |
| is marketed as a no-crash energy formula for athletes, | | | | drink water while eating the bar. Additionally, it contains |
| workers, and people with an active lifestyle. By | | | | more sustenance than a gel pack and is better tasting. |
| combining the Five Hour Energy formula with a gel, the | | | | Lastly, because of the efficiency of PowerBar's |
| gel is able to be enclosed within the PowerBar formula. | | | | manufacturing process, GelBar can be offered at a |
| The advantages to the gel formula are less dripping | | | | price in-line with other bars, which means it offers |
| while still retaining a cooler, refreshing sensation. | | | | more effect for the same price, making it the superior |
| Product Placement as a Key Driver of Product | | | | purchase in terms of value per dollar. |
| Marketing | | | | GelBar solves the problem of a solid bar dehydrating |
| We believe the GelBar would likely see the most sales | | | | the user during a workout. Additionally, it solves the |
| from planned purchase areas - this would be a | | | | problem of a gel pack not tasting good and being |
| dedicated section of an aisle with normal | | | | awkward to eat. It does this by combining the two |
| merchandising, rather than in the checkout area for | | | | aspects into a solid bar wrapped around a gel center |
| impulse buys. Some locations could include Erik's Bikes, | | | | that is made from 5 Hour Energy for an additional |
| Target, REI, Sports Authority, Gander Mountain, Gear | | | | burst of sustained energy for the competitive athlete. |
| West, Wal-Mart, Cabella's, Guitar Center, and other | | | | Influencing the Customer Purchase Decision Process |
| active lifestyle locations or convenience store locations. | | | | with Four Key Factors |
| While some of these stores are targeted for their | | | | Customers evaluate many criteria when purchasing an |
| active lifestyle enthusiasts, others, like Guitar Center, | | | | energy bar. For some, it is a quick purchase based on |
| are focused on the long-term energy impact of the | | | | physical hunger while working out. For others, it is a |
| bar. We believe the bar could be used prior to | | | | planned purchase with a directed goal of purchasing a |
| concerts or other energy-intense performances in | | | | single type of bar. |
| addition to the obvious athletic pursuits where GelBar is | | | | GelBar can be advertised on sports-centric channels |
| a key fit for the user's demands. | | | | such as ESPN to influence the two types of |
| Relative SWOT Analysis of the GelBar versus a | | | | purchases. Further, celebrity endorsement can create |
| Variety of Competitive Substitute Products | | | | a link between GelBar and the performance of a top |
| The most obvious strength of the GelBar is the two | | | | athlete. By using marketer-dominated sources of |
| brands that it brings together - 5 Hour Energy and | | | | information, such as the website and our advertising, |
| PowerBar. The two logos could be used for marketing | | | | the consumer will know about GelBar. |
| to clearly communicate the powerful formulas within | | | | Secondly, during the purchase decision process, |
| the bar. Additionally, the bar is compact, yet big enough | | | | signage or a special display can be used to |
| to handle easily while moving. Unlike paste or pure gel | | | | differentiate the product from other energy bars. This |
| products, the bar contains solids which allow the user | | | | will draw the consumer physically to another location, |
| to chew the food prior to swallowing. The effects of | | | | apart from the substitute products, making it more likely |
| the bar allow the user to maintain energy over a | | | | they will purchase our bar. Along the same line, pricing |
| period of time from two distinct sources - the effects | | | | can be set below competition for the first few months |
| of 5 Hour Energy and the fats and proteins from the | | | | for promotional purposes - again, causing the customer |
| PowerBar formula. | | | | to choose our bar over others in impulse buys. |
| However, we realize GelBar is not without its | | | | Lastly, combating cognitive dissonance can be done |
| weaknesses. The first weakness is the formula of the | | | | with our celebrity endorsements. If we obtain enough |
| bar - the gel-based products are intended for quick | | | | celebrities to approve GelBar, the consumer will feel a |
| consumption while in the middle of a physically | | | | part of an elite circle of athletes by buying GelBar. This |
| demanding activity, such as running a marathon, while | | | | can continue to "common" athletes, highlighting superior |
| solid food products are intended for rest periods within | | | | amateur athletes that use our product or are |
| that activity - which may preclude it from the most | | | | sponsored by our product. |
| physically demanding activities. Secondly, the two | | | | Developing Alternatives in Terms of Markets and |
| formulas may overlap in ingredients which may reduce | | | | Product Line Expansion |
| the effectiveness of the formulas. The body can only | | | | Additional markets may include casual consumers, |
| absorb so much of a substance before it discards the | | | | performance musicians, hiking and camping enthusiasts |
| remainder as excess. If the two products were to | | | | and competitive workers. |
| overlap in a certain vitamin that gives energy, the body | | | | Market |
| may discard the additional vitamin provided by 5 Hour | | | | Examples of Market |
| Energy and absorb only the vitamin provided by | | | | Why This Market |
| PowerBar, thus reducing the effectiveness of the 5 | | | | Product Line Extensions |
| Hour Energy. | | | | Casual Consumer |
| Opportunities for GelBar are numerous, though. As | | | | Weekend workout users |
| mentioned in the store locations, we believe the GelBar | | | | Suburban bikers |
| can be placed across a variety of markets, from | | | | High discretionary income and a desire to mimic top |
| serious athletes to musicians to casual consumers. | | | | athletes |
| Additionally, the product line can be expanded to | | | | New flavors |
| include different flavors of the GelBar by combinations | | | | Kids bar |
| between 5 Hour Energy and the bar flavor. Another | | | | Performance Musicians |
| point of differentiation for the product is the size of the | | | | Professional musicians |
| bar. Smaller bars can be provided for compact travel | | | | Stage performers |
| while larger bars can be provided for at-rest periods | | | | The burst of energy in GelBar keeps them performing |
| of an activity. Lastly, the product quantity can be | | | | Musician-labeled bars |
| varied, from single bars for the casual consumer to | | | | Music theme packaging |
| boxes for the serious athlete. | | | | Hiking and Camping Enthusiasts |
| Threats to the product launch are numerous. The | | | | Weekend campers |
| industry is highly competitive and many substitutes | | | | Thru-hikers |
| exist for the product. The product also bridges the gap | | | | Ultralight hikers |
| between solid bar (at rest product) and gel products (in | | | | Compact, high nutrient food is essential to packing light |
| motion product) which may cause confusion for | | | | and small |
| consumers and may decrease the times when the bar | | | | Gluten and food-allergy free bars |
| can be consumed. Lastly, the niche market may not | | | | More gel for more hydration bard |
| exist for such a specialized product or a smaller, highly | | | | Competitive Workers |
| specialized manufacturer may already exist in this | | | | Police and firemen |
| market. | | | | Late night dock workers |
| Trends that support the launch of this product center | | | | Manual labor intensive jobs |
| on the activeness of our target market and the | | | | The fast pace of work and physical demand is solved |
| competition within the industry. According to the FDA, | | | | by GelBar's sustained energy |
| new products in the energy bar industry have | | | | More 5 Hour Energy formula |
| increased 28% in the last four years. Additionally, the | | | | Clearly, the energy bar market has a competitive hole |
| US Department of Health has issued new research | | | | in it that GelBar fills. The financial analysis must be |
| indicating the obesity levels within the US continue to | | | | done prior to launch, but the marketing argument is |
| grow, but at subdued levels. These two trends point to | | | | incredibly strong for the launch of GelBar. We believe |
| an increasing demand for energy bar products by a | | | | the need is present and the market is growing, thus |
| larger market. | | | | making it a good industry in which to play. GelBar |
| Centering on the Primary Market for the GelBar | | | | should be developed and launched as soon as possible |
| The primary target market is the active lifestyle | | | | to take advantage of this unique market opportunity. |