STRATEGIC MARKETING MANAGEMENT

QUIZ #1
ANALYSIS OF POWERBAR
CASE STUDY

Submitted To: Miss Asma Chang

Submitted By: Muhammad Subhan
Student ID: FA16-MBAG-0051

Dated: 15-MAR-2019
ANSWER 1a:
PowerBar market segmentation
The market for Power Bar’s was once segmented to only athletes, is now also
segmented towards a much larger segment. This segment now includes on the go &
health conscious individuals looking for a snack or a quick meal replacement. The
customer is looking for something that’s healthy, inexpensive, and tastes good. The
other part of the market is still the “athlete” that is looking for a quick boost in energy.
There were and still are constant unmet needs. For instance, taste is a huge problem
with energy bars in general.
It’s a constant struggle to create the need with a good taste and variety at a reasonable
price that provides the health benefit each individual. Both segments are looking for a
benefit for themselves. At the same time they are both health cautious and as long as
PowerBar is meeting their needs they will both listen. Another unmet need is the shift to
organic products.

ANSWER 1b:
Powerbar Competitors
Clif bar is a direct competitor of PowerBar. Another competitor is the maker of Balance
bar which is Bio Foods Inc. however, with new competition PowerBar is forced to re-
look at their products and created Harvest, Protein Plus, and Pria to compete with new
energy/health bars on the market. Pria is a bar (not for energy) but nutritious for
women which was created to compete with Luna.
Clif bar realized that there was a market that wasn’t tapped into yet, which was the
population which has an interest in vitamins, minerals, and nutrients in one. These bars
are for the calorie cautious individuals. As this market emerged so did the market that
was interested in a low-calorie life style. What can Powerbar provide to this market?
PowerBar seems as if they are keeping an eye on the competition but seem to be
followers in the market instead of leaders. They look at their competitors and imitate
what they have.
PowerBar is falling to do their market research but instead relied on other companies
studies/creations. PowerBar and other companies are trying to get into the women’s
market by the low-calorie options bar. However they have more competition in this
market with the Nutri-grain, Quaker Oats, General Mills, Slim-fast, etc.

Answer 2:
The energy bar market is very relative to the product life cycle. The energy bars are
developed based on the customer’s needs and wants. Once they are developed they are
introduced and as long as they are accepted by the people the demand keeps on
growing.
In order to prevent this cycle from declining one can provide a variety of products such
as PowerBar does right now. They offer different flavors in bars, and bars that meet
different needs for each individual. People’s needs are constantly changing, whether its
energy, nutrients or a healthy snack one can find it with energy bars. There is a chance
of consolidation with energy bars. Many try to offer the same products. As shown in this
case study. Anytime another company created an energy bar PowerBar created
something similar. One of these companies may buy each other out depending on assets.