Marketing Research Analysis--Power Bar

Running Head: POWER BAR MARKET RESEARCH PROJECT

Marketing Research Project Part 4

Power Bar: Marketing Research Project

James Rothaar

MBA 7603

June 29, 2014

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Table of Contents

Executive Summary …. Page 3

Introduction …… Page 4

Research Methodology …. Page 5

Data Analysis and Findings ….. Page 5

Conclusions and Recommendations ….. Page 7

Graphics ….. Page 8

References ….. Page 17

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Executive Summary

Power Bar is a producer of premium health/fitness “candy” bars. The company’s

products are sold via a wholesale distribution network to retailers, grocery stores, and

health food stores. Final users of Power Bar products are retail customers.

A.) Research Objective

Power Bar would like to know if expanding the flavors it offers would increase

its sales. The company wants to determine how current consumers feel about the product;

how they use it; why they use it; how they feel about it; why they use it; and how it

compares to competing fitness “candy bar” products, especially the biggest competitors

such as, Clif Bars, Balance Bars, and MetRx. Determining why customers consume

Power Bar bars and how the brand can increase market share.

B.) Sample and Methodology

The methodology will be quantitative, which is needed to ascertain users’

attitudes toward the Power Bar brand and competitors bars and their usage of Power

Bars. A minimum of 30 responses will be collected and analyzed for all key points.

A sample size of 30 respondents will ensure a confidence level of 95%, with a

predetermined sampling error of +/- 5%.

C.) Managerial Benefits to Study

The objective of this report is to aid Power Bar’s management in understanding

how Power Bar customers use the product; how they rate it; and what value they are

getting from the product.

Any differences in attitude, usage and value perception between fitness types and

those of dieters will be quantifiable and provide valuable insight on Power Bar buyers.

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The study also will provide insightful information for future product improvements,

aiding in the design of marketing campaigns and sales tools that will bolster new sales

and current customer retention.

D.) Summary of Key Findings

One-hundred-and-forty-four respondents agreed to participate in this 19-question

survey. About 49%, said that they had eaten a Power Bar within the past four months.

Eighty-seven percent stated the flavor of the Power Bar that they bought. The

Chocolate Peanut Butter flavor was purchased more than any other flavor. When

respondents ranked flavors, Peanut Butter, Chocolate, and Chocolate Peanut Butter were

the top three flavors selected.

E.) Conclusions and Recommendations

Thirteen percent of the respondents reported that they eat Power Bars once a

day. Clif Bar is the most popular energy bar and the biggest competitor to Power Bar.

More than 52% of Power Bar eaters would recommend Power Bars; approximately 59%

of the respondents that eat Clif Bars would recommend Clif Bars.

Power Bar produces 10 flavors of energy bars. However, a majority of consumers

only know of three of the 10 flavors available. The additional seven flavors either need to

be marketed better or eliminated from the product line. What needs to be determined is

whether it is a lack of awareness, a lack of relevance to the market, or both, and why this

situation exists.

Introduction

The popularity of health/fitness bars is increasing significantly. The U.S. retail

market for health/fitness bars was $5.7 billion in 2011. The industry is experiencing

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double-digit growth figures and is projected to reach about $8.3 billion in 2016,

according to a report by MarketResearch.com titled Food Bars in the U.S.: Trends in

Cereal/Granola and Energy/Nutrition Bars by MarketResearch.com. The market consists

of two types of products: cereal/granola bars and energy/nutrition bars. The Power Bar

product is classified as an energy/nutrition bar.

Research Methodology

SurveyMonkey.com was deployed to collect data via an online survey taken by

adults that purchased a Power Bar within the past four months. Probability sampling was

used to draw a sample of respondents familiar with the Power Bar brand. At least 30

respondents answered each question. Participants were invited to take this 19-question

survey via messages posted on Facebook and LinkedIn. The majority of the participants

in this survey are long-distance runners and/or physically active individuals. Invitations

to participate were posted in health and fitness clubs on Facebook.

Data Analysis and Findings

Out of the 46 respondents that responded, 37% felt that Power Bars were a good

value. Nearly 49% of 39 respondents that responded felt that Clif Bars were a good value.

More than 52% of the 46 respondents that responded said that they would recommend

Power Bars. More than 56% percent of 39 respondents said that they would recommend

Clif Bars.

Sixty-one of the 70 respondents, whom were pre-qualified to continue with the

questionnaire, stated the flavor of the Power Bar that they bought. Twenty-eight of the 61

(45.9%) respondents bought a Chocolate Peanut Butter bar. Twenty-four of the 61

(39.34%) respondents bought a Peanut Butter flavor bar. Chocolate (34.43%), Oatmeal

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Raisin (21.31%), and Cookie Dough (19.67%) rounded out the top five flavors

purchased.

Forty-seven respondents ranked their favorite flavors of Power Bar. The flavors

listed among their first, second, and third favorite flavors most often were Peanut Butter

(46.9%), Chocolate (42.6%), Chocolate Peanut Butter (34.04%) Oatmeal Raisin

(21.28%), and Milk Chocolate Brownie (21.28%). Four of the five flavors (Chocolate

Peanut Butter, Peanut Butter, Chocolate, and Oatmeal Raisin) were listed as being bought

and among the favorite flavors.

Regarding the frequency of eating Power Bars, eight of 62 (12.9%) respondents

eat one once a day, zero of 62 (0%) eat Power Bars twice a day, four of 62 (6.45%) eat

five to six Power Bars per week, and 50 of 62 (80.65%) eat Power Bars every other day

or less.

Why are Power Bars consumed? Eleven of 63 (17.46%) eat Power Bars as meal

replacements; 29 of 63 (46.03%) eat Power Bars as a health/fitness supplement; and 23 of

63 (36.51%) eat them as both a meal replacement and a health supplement. Twenty-six

out of 60 (43.33%) eat Power Bars as a snack; 25 of 60 (41.67%) feel that Power Bars

enhance athletic performance; 17 of 60 (28.33%) eat Power Bars for weight-loss efforts;

15 of 60 (25%) eat the bars to increase energy; and 15 of 60 (25%) eat the bars for health

and fitness.

Clif Bar was the most popular energy bar and the biggest competitor to Power

Bar. Forty-two of 46 respondents (91.3%) were familiar with Clif Bars; 25 of 38

(65.79%) surveyed said that Clif Bars were good (47.37%) and very good (18.42%).

Out of the 46 respondents that responded, more than 52% felt Power Bars were

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reasonably priced. Out of the 39 respondents that responded, about 59% felt that Clif

Bars were reasonably priced. Fifty-nine percent of those 46 respondents felt that Power

Bars were nutritious; 74% of the 39 of those respondents felt that Clif Bars were

nutritious. Seventy percent of the 46 respondents said that Power Bars were filling; while

67% of 39 respondents indicated that Clif Bars were filling.

Conclusions and Recommendations

The Power Bar brand features 10 flavors, yet five of those flavors make up more

than 70% of the flavors preferred most often in this survey. With 47 respondents, 10 of

47 (21.28%) selected Chocolate Peanut Butter as their favorite flavor. Eight of 47

(17.02%) selected Peanut Butter; six of 47 (12.77%) selected Cookie Dough; and five of

47 (10.64%) chose Nutty Berry; while four of 57 (8.51%) preferred Vanilla. The

company needs to decide whether to continue with all 10 flavors, change flavors, or cut

back to five flavors only.

More than one-half of the Power Bar eaters (52.18%) would recommend Power

Bars. Nearly 70% think that Power Bars are filling, and nearly 59% thought that Power

Bars are nutritious. The brand is well received by its followers much like the Clif Bar

brand is perceived by its followers.

If Power Bar wants to increase its market share and maintain its relevance, it must

seek to increase its value proposition among its followers.

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Graphics

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Running Head: POWER BAR MARKET RESEARCH PROJECT 10








References

Hair, J.F., Wolfinbarger Celsi, M., et. al. (2013). Essentials of Marketing Research, 3rd

Edition. New York, NY: McGraw-Hill Irwin.

Sample Size Calculator (n.d.) Creative Research Systems. Retrieved from

http://www.surveysystem.com/sscalc.htm

Food Bars in the U.S.: Trends in Cereal/Granola Bars and Energy/Nutrition Bars. (March

30, 2012). MarketResearch.com. Retrieved from

http://www.marketresearch.com/Packaged-Facts-v768/Food-Bars-Cereal-

Granola-Bar-6576315/

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Business

Marketing Research Analysis--Power Bar