The new PowerBar GelBar combines two products from the growing market segment into one: the growing segment of energy drinks and the growing, but rapidly moving towards the mature market of energy bars. At this stage of product development, you need to focus on the bar’s product life cycle stage, the next stages, and our contingency plan for each as we reach it, the marketing mix actions that can be taken. to promote the product and the touch. briefly about the initial pricing strategy.
Stage of the product life cycle today
Even though GelBar combines a growing product with a growing / mature product, I think GelBar is in its introduction phase. However, due to the nature of the ingredients, it is a non-disruptive product that will likely reflect a low learning curve product. This means that the introduction stage will be short and quick. Because of this, I expect competition for GelBar quickly once the product is released.
There is some logic behind claiming that the product is, in fact, an extension of PowerBar’s growth stage and a way for the company to avoid maturity stage decline. From a macro perspective, this is true, but the product itself should start at the introduction stage. Because the company will see the product as a new growth product, GelBar will enjoy market exposure and great advertising budget potential that will allow it to go to market quickly and with great customer awareness.
Planning future stages of the product life cycle
Introduction: Launch product with intensive marketing efforts and reduced prices. Pack the product in eye-catching packaging to entice customers to buy the product. Launch in limited markets to test customer reactions and correct product issues before mass market.
Growth: During this phase, I expect several competitors to enter the market. More GelBar flavors may be introduced and the promotion would focus on the differences between GelBar and the competition. We will expand the GelBar locations as we roll out the product in multiple markets.
Maturity – Keep introducing new product variations until GelBar reaches a full product line. Stock the product in all stores with an impulse buying section, including gas stations, athletic stores, grocery stores, and others.
Decline – Slowly reduce bar production and offer alternative bars to encourage customers to switch while reducing the cost of switching (i.e. reducing the risk of losing based on prospector theory). Start replacing GelBar with the next innovation at select outlets to test new products.
GelBar promotion using the marketing mix: three strategies to boost the product
Product – With multiple bars and energy drinks on the market, product packaging and ease of use are paramount. GelBar should be promoted with a Snickers-like product size to facilitate the idea of a snack to go. The physical packaging of the bar should emphasize the combination of the ingredients within. Possible combinations include a two-tone packaging that focuses on 5 Hour Energy orange and PowerBar gold or black and white to visually emphasize the two distinct ingredients.
Product packaging is also important. The bar must be available both individually and as a package. This package form would allow the serious athlete to purchase 6 to 10 bars at a time at a reduced price per bar. By increasing the number of bars available to purchase at once, GelBar attracts high-level athletes, as well as discount membership stores like Sam’s Club or Costco.
Promotion: Since GelBar’s initial market is high-end sports enthusiasts, advertising will be limited to clearly relevant sporting events. Potential end-user groups and events include community sporting events, high school sporting events, company-sponsored sports, and professional sports athletes.
As the product matures in the product life cycle, general advertising will be used. By incorporating sports athletes at an early stage, natural promotion will occur as fans see athletes using GelBar at sporting events. Additionally, GelBar can enlist celebrity endorsements from these early professional sports adopters. This will increase the visibility of GelBar to the average consumer and help increase sales as the GelBar location also extends to the growth and maturity stages of the product life cycle.
Placement: GelBar is intended for serious athletes, so placement will initially be in high-end sports venues and stores, such as amateur or professional league sporting events. These limited trial markets will allow us to correct customer complaints with the new product before launching it to supermarkets and health food stores in the region. Because we believe that GelBar can be both a planned purchase and an impulse purchase, the product should be stored in two locations within each location: near the cash register for impulse purchases and near other energy bars for planned purchases.
Once the product matures, GelBar should be in all gas stations, discount membership retailers, supermarkets, training facilities, and sports equipment stores. This strong market penetration will provide the most value for customers, as the GelBar will be easily accessible while exercising or on short notice.
Pricing GelBar to achieve these goals
GelBar is a high-end product that initially becomes a mass consumer product as it matures. Because of this, a skimming pricing strategy would work best at first. While GelBar should be given away at sporting events to minimize the impacts of the prospector theory on the end user at first, eventually the product should be priced above the market rate of an energy bar when released in select markets. This high price will ensure that only the top athlete will buy the bar and create the GelBar as a status energy bar.
However, once the competition begins to enter the market, the price must be reworked. By switching from a skimming pricing plan to a penetration one, GelBar will be able to dominate the market and compete effectively with the new bars launched by our rivals. Because we were a status symbol bar, GelBar should be widely accepted by the mass consumer as long as we have the association with elite and high performance athletes. This price reduction will make the product available to all types of athletes, not just the elite. The ultimate goal of the pricing strategy is to become similar in mind to Gatorade or Powerade, both brands that are synonymous with a workout food.
Careful analysis of the product life cycle and understanding what each stage looks like will be key to successfully launching and promoting the GelBar. By using different marketing mix strategies at each stage of the product life cycle, GelBar can stay one step ahead of the competition and maintain its market share. Using every stage of the life cycle, including decline, as a way to promote GelBar will appeal to the core customer – the elite athlete, while also ensuring that the product is easily accepted by the mass consumer when we launch. to the dough. market segment.