Marketing Research

Elena Galeanu
Project MARKE-2210-015

NUT FREE BARS Professor: Brandon

Massingill
Our product

• NUT FREE BAR

• Cost: $4.99 in a 6 pack or $1.49 per bar
individually
• Flavors : buffalo sauce, toasted
marshmallow, sweet caramel and sweet
coffee.
 What you need to know?

• Dollar sales of bars increased 17% prom 2013-2018

• Consumers interest in convenient food options and an effort to adopt healthier lifestyles have
supported category growth
• Year-over- year gains in the category are predicted to slow
• If Bar makers want to stand apart from competition, they will need to:
• establish their unique selling points
• maintain accessible price points
 Nutrition bar interest over time
100

90

80

70

60

50

40

30

20

10

0
2004 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: Google Trends;

https://trends.google.com/trends/explore?date=all&geo=US&q
=nutrition%20bars
 Nutrition bar interest over the last 12 months
120

100

80

60

40

20

Source: Google Trend;

https://trends.google.com/trends/explore?geo=US&q=nutritio
n%20bars
 Market size
Bars continue steady year-over-year growth, slowdown in sight

Total US Sales of snack, nutrition, and performance bars,

at current prices 2013-2018
$7,200 $7,048
$7,000
$6,828
$6,740
TOTAL SALES ($ MILLIONS)

$6,800
$6,600 $6,533

$6,400
$6,185
$6,200
$6,011
$6,000
$5,800
$5,600
$5,400
2013 2014 2015 2016 2017 2018(est)
& million $6,011 $6,185 $6,533 $6,740 $6,828 $7,048

Source: based on IRI InfoScan Reviews; CSPDailyNews.com,

"Category Management Handbook"; US Census Bureau,
Economic Census/Mintel
 Total US retail sales of snack, nutrition, and
performance bars, by segment share, 2016 and
2018(Est)
Market 2016 45.6 19 19.9 15.6
Breakdown

%
2018(est) 46.7 19.7 19.2 14.4

0 20 40 60 80 100 120
Snack bars Nutrition bars Preformance bars Weight loss bars

Source: based on IRI InfoScan Reviws; CSPDailyNews.com,"Category Management Handbook"; US Census

Bureau, Economic Census/Mintel

• Nutrition bars continue to gain share

• Four pillars of bar success: treat, health, value, availability
• Nutrition bar growth results from consumer interest in healthy living
 Target Market-college students
Number of US students: 19.9 millions in 2018
19.9 millions * possible sale of 2 bars per student =possible sale of
39.8 millions bars
Let’s pretend that our company will sell 10% from 39.8 millions

Market value :
39.8 millions bars* 10% * $1.49 per bar
= 3.98 millions bars * $1.49 per bar=
$ 5,930,200 millions per year
 SWOT ANALYSIS
Strengths Weaknesses
• All natural ingredients • More expensive that other nut free bars
• Multiple flavors • Not many different unique selling point paths
• Healthy benefits you can take
• Large target audience • Not completely healthy as they are packed with
• Highly profitable sugar
• Long term business

Opportunities Threats
• Easy to promote • Competition with:
• Highly profitable market o lower price of the product
• Younger demographic becoming more health o stronger marketing campaigns
conscious o stronger name awareness
• Consumers are eating multiple small meals in a
day versus eating the traditional three meals a
day
 Market Perspective
Nut Free Bar purchase drivers, November 2019
“Which of the following are important to you when choosing a nut free bar? Please select all that apply”
FLAVOR 69
LOWEST PRICE 35
CALORIE CONTENT 28
BRAND 27
MADE WITH NATURAL INGREDIENTS 27
PROTEIN CONTENT 25
%

SINGLE-SERVING SIZE PACKAGING 22

ADDED NUTRITION (EG VITAMINS, ANTIOXIDANTS) 20
LOW/ NO CLAIMS (EG LOW SODIUM, NO FAT) 18
ORGANIC 17
FREE-FROM CLAIMS (EG ALLERGENS, GMOS) 9
NONE OF THE ABOVE 3

0 10 20 30 40 50 60 70 80

Base: 237 Internet users/ college students aged 18+ who

consume nut free bar
 Attributes of interest, by gender, November 2019
“Which of the following attributes are important to
you when choosing bar? Please select all that apply.”

52
48 48
46
44
42
40 39 40 39 40
36

30
28
25

PROTEIN AMOUNT LOW PRICE SUGAR AMOUNT BAR SIZE PROTEIN SOURCE
Total Male Female

Base: 237 Internet users/ college students aged 18+ who

consume nut free bar
Positioning, Perception of Nut Free Bar Flavors, November 2019
“Which of the following attributes describe the following flavors of nut free bars? Please select all that apply per bar flavor”

High in sugar

Nut free bar with sweet

caramel flavor

Nut free bar with

sweet coffee flavor

Nut free bar with toasted

marshmallow flavor

Taste good Healthy

Nut free bar with buffalo

sauce flavor

Low in sugar

Base: 237 Internet users/ college students aged 18+ who

consume nut free bar
 Nut free bar Nut free bar with Nut free bar Nut free bar
with buffalo toasted with sweet with sweet
sauce flavor marshmallow flavor caramel flavor coffee flavor
% % % %

Taste good 55 57 51 62

Healthy 5 8 7 8

High in sugar 5 46 48 47

Low in sugar 49 6 3 3

Base: 237 Internet users/ college students aged 18+ who

consume nut free bar
 Reasons for bar consumption, by age, November
2019
“Which of the following describe the role bars plays in your overall
diet? Please select all that apply.”

60
55 55
52 51 52 51
49 48
50
45 44 44
42 41
40
35 34
30 29 30 30
30 27 28
26 27
%

24 25 24
22
20 20
20 18 18 17
14
12 13
10

0
Satisfy hunger Replace junk food Save time Meal replacement Improve health
Total 18-24 25-34 35-44 45-54 55-64 65+

Base: 237 Internet users/ college students aged 18+ who

consume nut free bar
 Reasons for Bar consumption, November 2019
“Which of the following describe the role bars plays in your overall diet? Please select all
that apply.”

SATISFY HUNGER 52

REPLACE JUNK FOOD 42

SAVE TIME 27

MEAL REPLACEMENT 26

IMPROVE HEALTH 18

0 10 20 30 40 50 60

Base: 237 Internet users/ college students aged 18+ who consume nut free bar
 MALE: 46 % FEMALE: 54 %

Aged 18-34: Aged 35-44: Aged 45-54 Aged 55+

58% 20% 17% 5%
138 persons 47 persons 40 persons 12 persons

Some college: 48% College degree: 33% Post-College: 19%

Final Recommendations:

• Natural ingredients for healthier nut free

bars
• Lower sugar
• Higher in protein
• Lower price per bar individually