The energy bar market is highly saturated with multiple companies competing with numerous product lines and large amounts of product variation within each product line. While there are some big competitors, the ease of entry into the market has allowed numerous smaller manufacturers to enter the market with highly differentiated niche products. PowerBar is one of the largest energy bar manufacturers on the market today, but it lacks the highly specialized performance bar with great differentiation from the competition. The product opportunity is GelBar, a fusion of Five Hour Energy with the typical PowerBar formula. GelBar would provide long lasting energy with the nutrients of PowerBar in a compact and transportable form.
GelBar combines a gel core made from Five Hour Energy with the outer formula of PowerBar
The traditional PowerBar offers ample room for product improvement. The stick itself can hold liquids without allowing liquid of any kind, making it an ideal formula for enclosing a gel substance. Five Hour Energy is marketed as a crash-free energy formula for athletes, workers, and people with an active lifestyle. By combining the Five Hour Energy formula with a gel, the gel can be included within the PowerBar formula. The advantages of the gel formula are that it drips less and retains a fresher, more refreshing feel.
Product placement as a key driver of product marketing
We think the GelBar would likely see the most sales from the planned shopping areas: this would be a dedicated section of an aisle with normal merch, rather than the checkout area for impulse buys. Some locations could include Erik’s Bikes, Target, REI, Sports Authority, Gander Mountain, Gear West, Wal-Mart, Cabella’s, Guitar Center, and other active lifestyle or convenience store locations. While some of these stores cater to enthusiasts of their active lifestyle, others, like Guitar Center, focus on the long-term energy impact of the bar. We believe the bar can be used before concerts or other high energy performances, in addition to the obvious athletic activities where the GelBar is key to user demands.
Relative SWOT Analysis of GelBar vs. a Variety of Substitute Competitive Products
GelBar’s most obvious strength is the two brands it brings together: 5 Hour Energy and PowerBar. The two logos could be used for marketing to clearly communicate the powerful formulas within the bar. Plus, the bar is compact, yet large enough to easily handle while on the go. Unlike pure paste or gel products, the bar contains solids that allow the user to chew food before swallowing. The effects of the bar allow the user to maintain energy for a period of time from two different sources: the effects of the 5 Hour Energy and the fats and proteins of the PowerBar formula.
However, we realize that GelBar is not without its weaknesses. The first weakness is the bar’s formula – gel-based products are intended for quick consumption in the midst of a physically demanding activity, such as running a marathon, while solid foods are intended for rest periods within that. activity – which may exclude you from more physically demanding activities. Second, the two formulas may overlap in ingredients which can reduce the effectiveness of the formulas. The body can only absorb a certain amount of a substance before discarding the rest as excess. If the two products overlapped on a certain energy-giving vitamin, the body could discard the additional vitamin provided by 5 Hour Energy and absorb only the vitamin provided by PowerBar, thus reducing the effectiveness of 5 Hour Energy.
However, the opportunities for GelBar are numerous. As mentioned in store locations, we believe the GelBar can be placed in a variety of markets, from serious athletes to musicians to casual consumers. Additionally, the product line can be expanded to include different GelBar flavors through combinations between 5 Hour Energy and the bar flavor. Another point of differentiation of the product is the size of the bar. Smaller bars can be provided for compact travel, while larger bars can be provided for rest periods of an activity. Lastly, the quantity of the product can vary, from individual bars for the casual consumer to boxes for the serious athlete.
Threats to product launch are numerous. The industry is highly competitive and there are many substitutes for the product. The product also bridges the gap between solid bar (product at rest) and gel products (product in motion), which can cause confusion for consumers and can decrease times in which the bar can be consumed. Lastly, there may not be a niche market for such a specialized product or there may already be a smaller, highly specialized manufacturer in this market.
The trends that support the launch of this product focus on the activity of our target market and the competition within the industry. According to the FDA, new products in the energy bar industry have increased 28% in the last four years. Additionally, the US Department of Health has released new research indicating that obesity levels within the US continue to rise, but at moderate levels. Both of these trends point to a growing demand for energy bar products from a larger market.
Focused on the primary GelBar market
The primary target market is the active lifestyle enthusiast and athlete. We would use a multi-product, multi-market segment approach with our many bar flavors. We believe the active lifestyle enthusiast can be defined as someone who lives in the US (our primary market and initial launch point) in a major city or suburban area, both male and female, of any race, between 16 and 65 years old, with income (or access to income, that is, the parents’ income) more than $60,000. Psychographic segmentation would be an active lifestyle, which would include a competitive drive to win, a desire to be active, risk taking, and someone who exercises several times a week. Behavioral targeting could be used to further target customers who frequent a sports or active lifestyle store more than once a month.
GelBar is highly competitive with many competitive advantages
GelBar solves the problem of a solid bar dehydrating the consumer. While solid bars tend to lack moisture, the GelBar has a gel center that rehydrates the consumer while exercising. While this doesn’t mean that water isn’t necessary, it will substantially offset the need to drink water while eating the bar. Plus, it contains more sustenance than a gel pack and tastes better. Lastly, due to the efficiency of the PowerBar manufacturing process, the GelBar can be offered at a price in line with other bars, meaning it offers more effect for the same price, making it the best buy in terms of value per dollar.
GelBar solves the problem of a solid bar dehydrating the user during a workout. In addition, it solves the problem that a gel pack does not taste good and is uncomfortable to eat. It does this by combining the two aspects into one solid bar wrapped around a gel core that is made from 5 Hour Energy for an added burst of sustained energy for the competitive athlete.
Influence the customer’s purchase decision process with four key factors
Customers evaluate many criteria when buying an energy bar. For some, it’s a quick buy based on physical hunger while exercising. For others, it is a planned purchase with the direct goal of buying a single type of bar.
GelBar can be advertised on sports-focused channels like ESPN to influence both types of purchases. Additionally, a celebrity endorsement can create a link between the GelBar and the performance of an elite athlete. Through the use of information sources dominated by sellers, such as the website and our advertising, the consumer will become aware of GelBar.
Second, during the purchase decision process, special signage or display can be used to differentiate the product from other energy bars. This will physically draw the consumer elsewhere, in addition to substitute products, making them more likely to purchase our bar. Along the same lines, prices can be set below the competition for the first few months for promotional purposes, again making the customer choose our bar over others on impulse purchases.
Finally, cognitive dissonance can be combated with the endorsement of our celebrities. If we get enough celebrities to approve GelBar, the consumer will feel part of an elite circle of athletes when buying GelBar. This may continue with “ordinary” athletes, highlighting the top amateur athletes who use our product or are sponsored by our product.
Development of alternatives in terms of expanding markets and product lines
Additional markets may include casual consumers, high-performance musicians, hiking and camping enthusiasts, and competitive workers.
market
Market Examples
why this market
product line extensions
occasional consumer
Weekend Training Users
suburban cyclists
High discretionary income and desire to imitate top athletes.
New flavors
kids bar
performance musicians
professional musicians
Internship Artists
The burst of energy in the GelBar keeps them going
Bars labeled by musicians
music theme packaging
Hiking and camping enthusiasts
weekend campers
hikers
ultralight hikers
Compact, nutrient-dense foods are essential for packing light, small foods.
Gluten-free and allergy-free bars
More gel for more hydration bardo
Competitive Workers
police and firefighters
night port workers
Manual labor intensive work
The fast pace of work and physical demand is solved with the sustained energy of GelBar
Plus 5 hour energy formula
Clearly, the energy bar market has a competitive gap that GelBar fills. Financial analysis needs to be done before launch, but the marketing case is incredibly strong for the GelBar launch. We think the need is there and the market is growing, so it’s a good industry to play in. GelBar must be developed and launched as soon as possible to take advantage of this unique market opportunity.
