Luna Bars - Chelsea Schneider`s Webpage

Report
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.
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
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)
Product
 Product differentiation from the Clif Bar
 Released in 1999 with the tagline “The Whole
Nutrition Bar for Women”
 Nutz over Chocolate, Trail Mix, Lemon Zest, and
Chocolate Pecan Pie
 Two new product lines
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
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
Product (Packaging)
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)
 PowerBar Pria - $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)
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
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
Promotion
 Luna Moms Club
 Lunafest
 Luna on Campus
 Team Luna Chix
 Corporate responsibility
 Bringing women together through sports
Strengths

Variety of flavors

Promotes Wellness
 Breast Cancer Fund

Large distribution channels

Loyal core consumers
 Five “bottom lines”
Weaknesses

Lack of mainstream advertising

Niche product
 Other bars market to a wider range of
consumers

More expensive than other alternatives
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
Threats

Established brands


Organic ingredient recalls


Powerbar, Balance Bar, MetRx, etc.
Recent recall on products containing peanuts
New entrants targeting women as well
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
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
Questions?
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.

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>.

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