BERNICE HAN

CLIF BAR & COMPANY

ADV 307 11th February 2013

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Brand Overview Brand History With its roots in sunny California, the Clif Bar came to existence in 1992, two years after baker and avid outdoor enthusiast Gary Erickson cycled his way to an idea for a better-tasting energy bar during a strenuous 175-mile bike ride. After long months of experimentation in the kitchen, he and his mom had created the recipe for the ultimate all-natural energy bar that would later become the Clif Bar. It was an instant success. Athletes were enamored of the Clif Bar, which is both delicious and practical. It delivers sustained energy at no expense to the flavor. Clif Bars unique taste and natural ingredients got athletes running wild for the brand.

Corporate Ideals and Consumer Benefits But perhaps what truly separates the Clif Bar from the rest is the brands positioning and

philosophy. Although the Clif Bar has a higher price point due in part to its organic ingredients than its cheaper counterparts, the Clif Bar is also a brand with heart and soul. The company deeply believes in paying their dues by actively giving back to the planet and community, as evidenced by two of the five aspirations detailed on their website: sustaining the planet and sustaining the community. Through their commitment to zero-waste, industrious climate action (to reduce and offset their carbon footprint) as well as the conservation and restoration of natural resources, Clif Bar is an energy bar that cares. A Clif Bar doesnt just energize people, it energizes the environment too; and it invites consumers to do the same: use the energy (derived from a Clif Bar) to do good. The brand encourages and engages its thrill seeking, risk-taking consumers with an active lifestyle to participate in environmental efforts so they are not just buying an energy bar; theyre essentially buying themselves a better future. With a Clif Bar, consumers are not only getting a convenient energy bar that is matched in nutrition, taste and caloric value as a light meal but also integrity, from (indirectly) supporting the companys green ideals.

Situation Analysis If Gary Erickson had signed that $120 million deal to sell Clif Bar to Virginia-based Mars Inc.

in 2000, Clif Bar would probably not be what it is today1. Analysts were skeptical of Clif Bar and believed it didnt stand a chance against industry goliaths such as Nestle and Kraft Foods, which bought out Power Bar and Balance Bar respectively. But Clif Bar held its own. The growing need for a healthy diet and growing concern that an unhealthy lifestyle can have detrimental influences over quality of life and longevity has propelled the market that grew nearly 15% in 2010 to $1.5 billion forward. And according to Mintel, Clif Bar & Company remains the dominant player in the Nutrition and Energy Bars Market,2 claiming 23% market share. It also achieved leader status in the health/wellness bar segment of the larger market by reconciling a model of nutrition with functionality. With an increasing trend towards healthy eating and less expensive meal solutions, consumers are seeking to indulge in quick, healthier snacks in an attempt to economize, or as a time-saver.

The thriving energy bar market has also increased threats from Clif Bars top competitors including Balance Bar and Power Bar and yet, little money goes to advertising because in Gary Ericksons own words, advertising creates unsustainable demand3. Instead, Clif Bar strives for natural growth as more consumers seek healthy products. But competition does not just come from other bar manufacturers. The blurring of lines between snack bars, cereal bars, performance bars and nutrition bars is also threatening Clif Bar. Mintel found that only 28% of all 67% adults that eat bars prefer energy/diet bars to cereal, breakfast or granola bars. It is imperative, then, that Clif Bar continues to further differentiate their products while still catering to consumers desires for a great tasting snack. They must convince consumers they have the all-in-one appeal. That is, the unyielding good taste of a snack bar and added nutrition a bonus that puts nutritional products above and beyond snack bars.4 1 "Clif Bar Founders Take Charge." San Francisco Business Times, 11 Nov. 2007. Web. 10 Feb. 2013. 2 Mintel. "Brand ShareHealth/Wellness Bars" Feb. 2012. Mintel. Syracuse University, Syracuse, NY. 10 Feb. 2013 3 Schmit, Julie. "Raising the Bar on How Business Gets Done." USA TODAY, 14 Mar. 2005. Web. 10 Feb. 2013. 4 Mintel. "Nutritional Food and Drink Issues in the Market" Jan. 2013. Mintel. Syracuse University, Syracuse, NY. 10 Feb. 2013

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Target Audience Target Description

Since the launch of Clif Bar, its target market predominantly consisted of athletic, outdoorsy, active males. Currently, Clif Bar is most popular amongst consumers who hold college degrees as indicated by the high index number 173 they also have had/are in pursuit of a post-graduate degree which, can be seen through an even higher index number 183 in an MRI+ report. With such high qualifications and strong educational background, it is no coincidence that their consumer base can brag of high disposal household incomes (earning over $150,000 annually) with an index score of 195 (see: Appendix 1). Many Clif Bar users have professional positions and/or are working in the management, business and financial operations field, which means Clif Bar mostly appeals to highly educated, working individuals with a sizable income. They are likely to have an on-the-go lifestyle which can be accommodated by an easily accessible, filling, nutritious Clif Bar that can give them an energy boost before, during and even after work.

But as the current market leader, Clif Bar cannot afford to be complacent with its current loyal users. Instead, they should look to expand their reach to infrequent users and tap into other potential markets; one such prospect may be career-driven females aged 18-34 who recognize the need for vitamins and minerals in their diet but dont have time to actively seek out the right products. According to MRI+, the leading age group within females is none other than the 18-34 demographic, which is 32 index points higher than the average. This group of work-oriented women found in fast-paced urban settings is constantly racing against time to meet deadlines (see: Appendix 1).

They are heavily invested in work and barely have time for themselves. So much so that many admitted, when {they} are sick, {they} still drag {themselves} to work as signaled by a 131-index rating. These women are all eager to climb the corporate ladder as they claimed to want to get to the very top in {their} career as shown by the index number 135. Some of them even described themselves as a workaholic (this had a relatively lower but still, high index score of 106). These women are passionate about their jobs and are inclined to see it more as a career than a job (index number 112) but they insist that their only incentive is the pay; many women agreed that they only go work at {their} current job for the money as signified by the index 159 (see: Appendix 2).

These women hold the belief that the brand is one that only caters to outdoorsy people who are into highly physical activities like rock climbing and need the extra energy. If given the choice between a snack bar and an energy bar, these women are quick to choose snack foods without so much as considering energy bars. The idea is to change their perception about the brand so that they understand physical activity is not limited to taxing outdoor sports but also includes a successful daily routine like catching a bus to work, running to a meeting etc.

Target Audience Objective Aim advertising media at ambitious, independent, health-conscious, environmentally conscious workingwomen between the ages of 18-34. Demographics

Full-time (white-collar) employee Women in the age group of 18-34 Urban

Target Audience Strategy Employ a total integrated media effort to reach career women on their way to/at work and at home (where they are likely to bring work back to, too).

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Target Audience

Rationale This group of goal-oriented, self-motivated women aged 18-34 will prove to be an important key demographic to advertise to because they represent a large group of females who are not yet aware that the Clif Bar is the solution to all their problems. Although these women are preoccupied with work, they still find time to go exercise at least once a week, which speaks to their concern about staying/getting in shape. According to Simmons, some women even go 3-4 times a week (see fig. 1). This suggests that they are a very marketable group because Mintel research says, those who exercise are more than twice as likely to use nutritional food{and} nutritional food companies will want to be especially attentive to consumers who diet and exercise as these groups will drive growth in coming years5. Simmons findings also reveal that many of these women are currently dieting as implied by the high index number 139. But even more women admitted to calorie counting (see fig. 2). These results clearly illustrate that the nutritional benefits of a Clif Bar could be used to draw in a larger female crowd, who want to eat less but stay full; these energy bars are a source of a defined number of calories for those on diets. These women are willing (and can afford) to pay more for the organic ingredients in these energy bars that allow them to maintain their health without much effort on their parts.

Figure 2 This is further supported by Mintel data, which shows that 27% of all energy bar consumers use it exclusively for weight loss, diet and fitness, a trend that is likely to continue as America struggles to deal with morbid obesity6. And considering these women live and breathe their work, they are also demanding more convenient forms of nutrition, such as bars or meal replacement. A Simmons study found that women in this group tended to agree with the following statement: Because of my busy lifestyle, I dont take care of myself as well as I should. (see Appendix 2). This strengthens the argument that Clif Bar could maximize sales if they directed marketing efforts at this group of women. The Clif Bar has its claim on convenience, nutrition and energy to fulfill and satisfy the needs of this profitable target group.

Another key consumer insight that emerged from a Mintel report suggests that nutrition bars are more appealing to consumers aged 18-44 because older consumers grow wary of the sugar and caloric content of nutrition bars (see right). For this reason, women aged 18-34 will be more receptive to the brand and 5 Mintel. "Nutritional Food and Drink Executive Summary" Jan. 2013. Mintel. Syracuse University, Syracuse, NY. 10 Feb. 2013 6 Mintel. "Nutrition and Energy Bars U.S. - Executive Summary" Feb. 2012. Mintel. Syracuse University, Syracuse, NY. 10 Feb. 2013

Figure 1

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its advertising. Not only is this group of women characterized by their dedicated work ethic and desire for

healthier living, they are also marked by environmental interest. For these women, eco-friendly products are higher quality products which, is convenient in promoting Clif Bar, a brand that practices what it preaches. The boxes of six bars are made entirely from 100% recycled material, which is consistent with the companys ideals to sustain the environment7. Interestingly, these women are also more inclined to make a purchase from a company that uses environmentally friendly methods of advertising (see fig. 3) Clif Bar can reel these consumers in by way of green corporate advertising, which will emphasize their current involvement with preserving the environment such as their partnership with American Forests. According to its website, the Clif Bar has helped plant over 45,000 trees in areas damaged by wildfires and areas contributing to watershed restoration.

As a result of little to no advertising, the Clif Bar has relatively low brand awareness and especially with regard to the role they play in the environment and local communities. By violently promising to protect the planet, the Clif Bar has a competitive edge over other bar brands. So, it is vital to appeal to their environmental efforts and attract this group of women.

7 Meyer, Meg. "Clif Bar Vs. Power Bar - a Slightly Scientific Comparison." Yahoo! Contributor Network, 22 May 2007. Web. 10 Feb. 2013.

Figure 3

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Media Mix Media Mix objective To increase and generate brand/product awareness as well as enhance brand image by calling attention to their unique environmental/social responsibility, which will increase consumer traffic to retail stores. Also, to transform target markets current perception that the Clif Bar is an endurance athlete-only energy bar. It is not just for rock climbers or cyclists. The tastier, healthier alternative to quick snack bars is also for the youthful, fighting workwomen that needs the energy and nutrients to stay on top of their work and to stay fit. Media Mix strategy By implementing an integrated marketing communications plan that employs the use of traditional media vehicles, such as print and outdoor as well as support media such as Internet and PR to communicate the brands (environmental) benefits. Rationale It will be most effective to reach the 18-34 year old career-driven women through conventional media vehicles such as magazines and outdoor but perhaps more importantly, the Internet will prove to be the most influential medium given the uncommonly high usage. Although the target audience leads very busy lives, it would appear that they are still avid readers of certain magazines. Namely, OK! Weekly, Cosmopolitan and Elle Magazine, which all have index numbers totally off the charts (see Appendix 3). The OK! Weekly tabloid often features magazine covers/content of either ridiculously thin women or how obese women lost __ pounds which, inadvertently feeds into the target audiences obsession with health and dieting. In contrast, Cosmopolitan is a lifestyle magazine (though equally popular) that advocates healthier habits and highlights latest health/cultural trends so, it would be appropriate to advertise Clif Bars in the magazine as the best go-to energy bar. The magazines audience primarily includes single, upper-middle class women aged of 18-24; 69% of its readers are in the 18-34 range, which makes it highly relatable and relevant for the target audience (see Appendix 4). Similarly, 55.2% of Elle magazine readers are within the 18-34 range and are interested in the latest beauty/fashion trends. The magazine focuses a lot on improving appearances by featuring exercise workouts to the latest must-haves so it is also an extremely viable platform to showcase the Clif Bar as an energy bar for young, vivacious women8. Since these magazines have an extensive and loyal reader base, advertisements through this medium will reach workwomen who are likely to pick up a magazine (on their way to/after work) as a way to de-stress and satisfy their guilty pleasure.

While the television is generally considered the default go-to medium, it is not as effective in speaking to the target audience because workingwomen are, unsurprisingly, light TV viewers as can be seen through Simmons and MRI data (See Appendix 1 & 5). Instead, the Internet seems to be the most potent tool of them all. According to Simmons research findings, the target audience is almost always online. Internet activity almost doubles when the target audience is at work (see Appendix 6). This is also supported by MRI data, which indicates a high index number for heavy Internet users. Advertising on the Internet can take multiple shapes and forms with the amount of creative freedom allowed by it. Not only are the magazines published online but also, non-traditional, interactive Internet campaigns (launched on Facebook and other social media platforms) will also help drive sales. Based on MRI results, websites frequented by the target audience include Expedia.com, Orbitz.com, Priceline.com, Travelocity.com and TripAdvisor.com, which suggests that this demographic are experience-driven frequent travelers, who like to explore new places and new things and value a sense of adventure. The MRI data also shows that the majority of the Clif Bar consumer base are somewhat itinerant as they spent less than a year at their current address (see Appendix 1). For this reason, the Internet campaigns can be aimed at rallying target audience to exercise (their weekends away) and participate in some lighthearted fun for a chance to win volunteer vacations to help rebuild homes, work in the garden and wetlands in the most spectacular destinations in the world. These volunteer vacation deals could be negotiated with the travel websites such as Travelocity 8 McKay, Shannon. "Popular Women's Fashion Magazines." Knoji, 27 May 2011. Web. 11 Feb. 2013.

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and TripAdvisor in a media symbiotic relationship that ultimately benefits both parties. The target audience will be encouraged to take and upload photos of themselves in a yoga pose or skating onto Instagram under the hash tag #clifwomenworkout in a contest for a paid vacation. Simmons findings indicate that yoga, aerobics and in-line skating/roller skating are the most popular forms of exercise among the target audience (see Appendix 8), who in the wake of the Internet campaign(s) will begin to not only associate the brand with the motivation to commit to routinized workouts but also its dedication to give back. If successful, the campaign will gain earned media and help raise brand awareness by getting to talk about the brand as the one and only energy bar that allows its consumers to do good, feel good. Plus, it tastes good. Clif Bar is a highly active and interactive brand that rejuvenates its consumers.

Thirdly, outdoor advertisements can also help increase the brand awareness quickly and attract substantial media attention. According to Simmons, the target audience is most exposed to airport displays, which is in line with the fact that they frequently travel (for business or otherwise). Others include bus shelters or benches and large billboards (see Appendix 9). This may be due in part to the fact that the target audience commutes to and from work by bus and encounters a lot of billboards. Billboards can feature an office lady wearing sneakers, chewing on a Clif Energy bar behind her desk or in a meeting as if to say the Clif Bar makes you feel like you can stay active while being static. She may be trapped inside the office but she is still getting all the necessary nutrients and keeping healthy (even though she isnt actually outside running a marathon or playing tennis in her sneakers).

Clif Bars were first sold at bike shops, outdoor stores and natural food retailers but soon it was found in grocery stores, convenience stores and other retail outlets nationwide. Not only will Clif Bars be placed near the check out counter (women noted they are prone to spur-of-the-moment purchases) but they will also be placed in vending machines at offices so women who are too swamped with work to go get a proper meal can go in and try eat a Clif Bar instead. This is taking into account the fact that the target audience is almost always situated in the office for most of her day or in between meetings, so it caters to satisfy the hunger of health-conscious, work-crazed women.

The use of magazines can provide an extensive reach into the target audience for minimal costs and significantly raise brand awareness but print visuals alone cannot convey the depth of Clif Bars corporate ideals concerning sustainability. Coupled with the Internet campaign aimed at involving 18-34 year old working females in physical activities to stay healthy, the target audience can not only engage with the brand but also personally contribute to the companys core values in volunteer vacations. Brand awareness is also maximized by outdoor presence and increased by distribution in office vending machines, which serves to stimulate product interest, trial and subsequently purchase.

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Works Cited

"Clif Bar Founders Take Charge." San Francisco Business Times, 11 Nov. 2007. Web. 10 Feb. 2013. Mintel. "Brand ShareHealth/Wellness Bars" Feb. 2012. Mintel. Syracuse University, Syracuse, NY. 10 Feb. 2013

McKay, Shannon. "Popular Women's Fashion Magazines." Knoji, 27 May 2011. Web. 11 Feb. 2013. Meyer, Meg. "Clif Bar Vs. Power Bar - a Slightly Scientific Comparison." Yahoo! Contributor Network,

22 May 2007. Web. 10 Feb. 2013. Mintel. "Nutritional Food and Drink Issues in the Market" Jan. 2013. Mintel. Syracuse University,

Syracuse, NY. 10 Feb. 2013 Mintel. "Nutritional Food and Drink Executive Summary" Jan. 2013. Mintel. Syracuse University,

Syracuse, NY. 10 Feb. 2013 Mintel. "Nutrition and Energy Bars U.S. - Executive Summary" Feb. 2012. Mintel. Syracuse University,

Syracuse, NY. 10 Feb. 2013 Schmit, Julie. "Raising the Bar on How Business Gets Done." USA TODAY, 14 Mar. 2005. Web. 10

Feb. 2013.

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Appendix

Appendix 2 Attitudes to work

Appendix 3 Magazine readership

Appendix 4 Cosmopolitan Demographic Profile

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Appendix 5 TV viewership

Appendix 6 Internet Usage (home)

Appendix 7 Internet Usage (work)

Appendix 8 Sports played

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Appendix 9 Outdoor exposure