Luna Bars

1. Luna Bars By: Chelsea Schneider, Andrew Rubin, Sean Stewart& Yossi Weinberg I pledge on my honor that I have not given or received any unauthorized assistance on this examination or assignment.

2. Luna Bar History • Launched in 1999 • Demand from women within Clif Bar company • Quickly gained 17% market share • Preexisting distribution channels • Luna = Greek goddess of the moon

3. Target Market • Teenaged girls- adult women • Created for active women who want something that tastes good and is good for them • “It is an indulgent treat that satiates hunger and helps women more easily fit protein into their diet” (lunabar.com)

4. Product • Product differentiation from the ClifBar • Released in 1999 with the tagline “The Whole Nutrition Bar for Women” • Nutzover Chocolate, Trail Mix, Lemon Zest, and Chocolate Pecan Pie • Two new product lines

5. Product (Nutrition) • Boasts less than 200 calories and only 5 grams of fat • Nutritional health benefits catered to women’s needs • Soy protein, calcium, folic acid, zinc, iron • Antioxidants • GMO soy protein for breast health

6. Product (Packaging) • Promotes with bright, shiny contrasting colors on the package. Each bar has a stamp that says “70 percent organic, all natural” on the front • Convenient size • Clif sponsors Terracycle who offers products made out of the Luna bar wrapper

7. Product (Packaging)

8. Price • Bars are slightly more expensive than competing brands like balance bars and power bars because of high quality and organic ingredients • Luna Bar – $18.75/box (15) (Same as clif bar) • PowerBarPria - $15/box (15) • Atkins Advantage - $9/ box (5) = $30 • 1 year after release bar price ranged from $1.49 to $1.79. Now a little higher ($1.60 to $2.30)

9. Place (Distribution) • Luna piggybacked on the distribution scheme of clif bar • Can be found at: • Shoppers, REI, Safeway, Giant, Target, Trader Joes, Super Fresh, Whole Foods, Nordstrom, sports specialty stores… • A mix of major food distributors and sporty/earthy specialty stores as well as some women’s stores • Found next to other power bars • Also sold online

10. Promotion • Luna Bar Website • http://www.clifbar.com/food/products_clif_bar/3024%20vs%20 • http://lunabar.com/?refer=icon • Steering clear of traditional advertising to women that often resorts to stereotypes, LUNA Bar is portrayed as a healthy, yet indulgent escape. • Magazine advertsements

11. Promotion • Luna Moms Club • Lunafest • Luna on Campus • Team Luna Chix • Corporate responsibility • Bringing women together through sports

12. Strengths • Variety of flavors • Promotes Wellness • Breast Cancer Fund • Large distribution channels • Loyal core consumers • Five “bottom lines”

13. Weaknesses • Lack of mainstream advertising • Niche product • Other bars market to a wider range of consumers • More expensive than other alternatives

14. Opportunities • Very targeted demographic • First bar to specifically target women • Shift from impulse buy to a sought after product • Large amount of resources • Sister company of Clif Bar

15. Threats • Established brands • Powerbar, Balance Bar, MetRx, etc. • Organic ingredient recalls • Recent recall on products containing peanuts • New entrants targeting women as well

16. Recommendations • Extend product mix to align company with competitors • Protein shake, other snacks, cereals • Luna bar for adolescent girls, much like Clif bar for kids • Adjust pricing strategy to compete better within the energy/ nutrition bar category

17. Recommendations continued • Develop promotional strategy to increase brand recognition • Cross-promotional programs with Clif Bar • Expand college ambassadors program to larger campuses • Celebrity endorsers • Social networking • Sales Promotion

18. Questions?

19. Sources • Clif Bar Case Study. Rep. Datamonitor, 2008. Print. • Clif Bar & Company | Leader in All-natural and Organic Energy and Nutrition Foods and Drinks. Web. 07 Dec. 2010. <http://www.clifbar.com/>. • Clif Bar& Company. Rep. Hoovers. Web. 7 Dec. 2010. <http://premium.hoovers.com/subscribe/co/ factsheet.xhtmlID=hskcjkshfsrtxs>. • Dolliver, Mark. "LUNA NUTRITION BARS." Adweek Southeast Edition 22.19 (2001): 44. Business Source Complete. EBSCO. Web. 7 Dec. 2010. • "Filling the Void: When It Comes to Energy and Nutrition Products, It's All about Variety." In the Markets 41.8 (2008): 38. RDS Business Suite. SportsOneSource, LLC. Web. 21 Nov. 2010 • "Health bars evolve from niche." DSN Retailing Today 42.3 (2003): 24. Business Source Complete. EBSCO. Web. 7 Dec. 2010. • Lunabar.com. Web. 07 Dec. 2010. http://www.lunabar.com/. • "No Pain, JUST GAIN." Candy Industry 165.6 (2000): 56. Business Source Complete. EBSCO. Web. 7 Dec. 2010 • Norman, Jason. "Nutritional Bar Makers Recall Some Nut Bars." Bicycle Retailer & Industry News 18.4 (2009): 8. Business Source Complete. EBSCO. Web. 7 Dec. 2010.

20. Taormina, Steve. "Niche Markets Drive Bar Sales." Natural Foods Merchandiser (2002). RDS Business Suite. Web. 7 Dec. 2010. • "WONGDOODY :: Work Portfolio :: Luna Bar :: Arrows.” WONGDOODY, a Marketing Ideas Agency. Web. 07 Dec. 2010. <http://www.wongdoody.com/portfolio/project.asp?WorkID=658>.