4U2NV Team

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PowerBar Inc

• 4U2NV Team
• Tiffany Morton
• Troy Zaal
• Alex Lubimov
• Amanda McCallman

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Main Products

• Performance Energy Bars
• Optimal hydration beverage systems
• Energy Gel
• Protein and ProteinPlus Bars
• Harvest Whole grain PowerBars
• NutNaturals Bars
• PowerBar Pria geared towards Womens Health

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Mission Statement

• PowerBar is committed to helping enhance the
  health and wellness of active individuals by
  providing convenient nutritional products and
  sound nutrition information

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PowerBar Partners

• Team in Training
• Carmichael Training Systems
• Lance Armstrong foundation
• Nike Sports Camps
• Tour of Hope
• International Society of Sports Nutrition

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PowerBar Athletes

• Lance Armstrong
• Brandi Chastain
• Josh Cox
• Michael Phelps
• Tim DeBoom
• Peter Reid
• Ian Murray
• Carlmelo Anthony

• Warwick Stevenson
• Dan Browne
• Tiki Barber
• George Hincapie
• Christine Thorburn
• Hunter Kemper
• Kris Freeman
• Normann Stadler

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General Strategy

• Product Differentiation
• Global Distribution
• Partnerships with other firms
• Brand Recognition Nestle

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PowerBars Industry
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PowerBars Industry

• Primary Industry
• Snack foods
• Secondary
• None!

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Power Products

• Bars
• Performance Bar
• ProteinPlus Bar
• ProteinPlus Carb Select Bar
• Beverages
• Endurance Sport Drink Mix
• Recover Sport Drink Mix
• Gel
• Misc
• Nut Naturals
• Triple Treat Crisps

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Existing Industry Segments

• Food Industry
• Snack Food Industry
• Vitamins, Nutritionals Other Health-Related
  Products

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Trendy Influences

• Athletics
• Organized Sports
• Personal Fitness
• Dietary Trends
• The obvious

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Porters Five Forces
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Threat of New entrants

• Threat is High
• Virtually no barriers of entry
• Brand Recognition
• Product differentiation
• Chocolate
• Nuts
• Caramel
• Peanut Butter
• Nougat

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Threat of Rivalry

• Top Competition Listed
• Kellogg
• Slim-Fast
• Atkins Nutritional
• Clif Bar
• Galaxy Nutritional Foods
• General Mills
• Kraft Foods
• Low direct competition

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Substitutes

• Vitamins, Nutritionals Other Health-Related
  Products
• GNC products
• Creatine
• Meal replacements
• Weight Gainers
• Specialty soy
• Amino Acids

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Bargaining Power of Suppliers

• Threat of suppliers is low
• Food Products
• Several companies competing for snack companies
  business
• However
• Suppliers of the suppliers have some pricing
  power
• Specially Genetically modified plants
• If their price goes up

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Bargaining Power of Customers

• Weak
• Variety of buyers
• Walgreens
• Publix
• SaveRite
• Winn Dixie
• Super Saver
• If one store wont buy PowerBars, the other store
  will receive their share of business.

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Porters Overall

• Not very attractive
• Nothing to hold new companies back
• High competition
• Powerful substitutes
• CGS fluctuation
• But on the bright side
• Fixed Equilibrium

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Internal and Competitive Analysis of PowerBar
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Internal ResourcesBrand Names

• Powerbar, Inc. is part of the Nestle USA
  company. Nestle USA is a brand leader of items
  from bakers to babies, parents to pet owners and
  from single servings to family-sized meals. Some
  of their brand names include

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QUALITY STREET
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VETERINARY DIETS
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YESTERDAY'S NEWS
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100 GRAND
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Internal ResourcesPeople

• People are key to the success of Nestlé USA and
  one of our core values. In all positions, levels,
  divisions, functions, and locations, Nestlé
  employees create and drive our success.

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People

• People are our most important asset and the
  source of our competitive advantage. People
  development is a top priority for Nestlé USA.
  Offering employees unique opportunities to
  develop professionally and personally is a
  challenge to which Nestlé rises in a number of
  different ways.

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People-Development

• Nestlé University was created to help develop our
  people and develop a performance-based culture.
  Nestlé University has a wide range of training
  programs to enhance learning and performance. Our
  course curriculum is closely tied to Nestlé
  business needs and strategies. We offer a variety
  of courses in Nestlé Basics, Management
  Development, Functional Development, Executive
  Development and
• E-learning.

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Internal ResourcesCharities and Organizations

• Powerbar, Inc. also has partnered with many
  charities and organizations such as
•  

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The Leukemia Lymphoma Society's Team In
Training (TNT) Program is the largest endurance
sports training program in the world. In return
for professional coaching and support from their
teammates, participants raise funds for
lifesaving cancer research. TNT is a great way
for both new and experienced endurance athletes
train while raising money for a good cause.
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Carmichael Training Systems, founded in 2000, is
a team of athletes and coaches dedicated to
improving the lives of active individuals of all
levels and disciplines. Led by Chris Carmichael,
Carmichael Training Systems brings coaching
expertise, product advice and endurance sports
information to the athletic community via the
Internet (www.trainright.com) and through
personal training camps and clinics.
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The Peloton Project is the LAF's major grassroots
fundraising and outreach initiative that brings
together a diverse group of volunteers dedicated
to helping people living with cancer live strong.
In 2004, 7200 Peloton Project members collected
more than 5.6 million in donations and were
represented in all 50 states and in 21 countries.
LAF would love for you to join our team to help
cancer survivors live strong! The LAF believes
that in your battle with cancer, knowledge is
power and attitude is everything. From the moment
of diagnosis, we provide the practical
information and tools you need to live strong. To
find out more about the great programs that the
Lance Armstrong Foundation supports, visit
http//www.laf.org/
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PowerBar is a proud partner of NIKE Sports Camps.
Nike Sports Camps provide top notch training
programs across 14 different sports, from
basketball, to golf, tennis to lacrosse and are
geared towards meeting the needs of just about
every athlete. To learn more, visit
www.USSportsCamps.com or call 1800NIKE CAMP
(8006453226). There you'll find over 500 camp
locations to help you get better this summer.
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PowerBar is a proud supporter of the
Bristol-Myers Squibb Tour of Hope. The Tour of
Hope is a week-long ride across the country,
organized to raise awareness of the importance of
cancer research. Each of the 20 national riders
who participate have been touched by cancer in
some way. How can you help? Log onto the Tour of
Hope website today to sign the Cancer
Promise.http//tourofhope.com
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PowerBar and ISSN are teaming up to supply the
latest scientific sports nutrition information to
athletes via educational programs (Regional
Conferences), articles on the PowerBar website,
newsletters and other means. The International
Society of Sports Nutrition is a non-profit
society dedicated to the study and application of
sports nutrition. http//www.sportsnutritionsociet
y.org/site/index.php
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Competitive Advantage

• Power Bar, Inc. sustains competitive advantage in
  the market due to their global distribution,
  their ability to create unbeatable relationships
  with their partners and their well known
  corporation to stand behind them with their brand
  quality and recognition.

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Financial Analysis

• In millions of CHF 2004 2003 2002 2001

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Major Rivals

• Major company rivals include Kellogg, GNC and
  Slim fast
• Major rivals with energy bars include Clifbar,
  Kraft's Balance bar, and the Adkins Diet bar.

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Key Success Factors

• Our four pillar strategy is based on
• Operational performance
• Product innovation and renovation
• Product availability
• Consumer communication

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Programs

• Our efficiency programs are
• FitNes
• Operation 'Excellence' 2007
• Our cost savings enabler program is
• GLOBE (Global Business Excellence)

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Growth

• Growth is driven by 3 things
• Product innovation and renovationProduct
  innovation and renovation ensures that our
  portfolio of products is continually refreshed
  through new technologies and creative ideas, be
  they wholly new products and brands, derivatives
  of existing products, brand extensions or
  packaging innovations.

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Growth

• Product availability (whenever, wherever,
  however)Product availability is the natural
  partner to innovation and renovation because the
  best products deserve the best distribution. Our
  objective is simply that consumers should have
  access to our products when, where and how they
  want them.

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Growth

• Consumer communication We bring creativity to
  communication to establish interactive
  relationships with our customers as a complement
  to more traditional communication opportunities.
  The focus of all our communication is to ensure
  that our brands appeal to today's consumers,
  thereby building brand loyalty.

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Success Factors

• Nestlé USA is a company that is taking charge of
  its own future by putting people in charge of
  using their talents and capabilities to their
  fullest extent. People who work at Nestlé feel
  like they are part of something bigger than
  themselves.

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Success Factors

• Across divisions, we are more concerned with
  adding value than exercising formal authority. As
  a result, we try to stay as decentralized as
  possible, focusing more on people and products
  rather than systems and levels of management.

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Success Factors

• As the marketplace changes, it has an increasing
  influence on how Nestlé runs its businesses.
  Nestlé values flexibility and speed in adjusting
  to change qualities that continue to allow us to
  increase our global competitiveness and
  performance.

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PowerBar Inc.

• Strategic Direction

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Vision

• PowerBar is committed to helping enhance the
  health and wellness of active individuals by
  providing convenient nutritional products and
  sound nutrition information.

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Business Strategy

• Differentiation is the primary strategy
• Product features
• Timing of product recognition
• Brand name recognition
• Consumer marketing
• Partnerships
• Location
• Linkages with other firms

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Product Features

• Offers 9 major products with different features
• Company stresses importance of sports nutrition
  experience in product development

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Timing of Product Introduction

• Powerbar is the pioneer in sports nutrition
• First true high-performance energy bar introduced
  in 1986
• Founded by a marathon runner Brian Maxwell

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Brand Name Recognition

• Sales of over 150 million
• Products distributed in over 40 countries
• Partnerships with organizations and athletes

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Consumer Marketing

• Variety of marketing strategies
• TV commercials
• Events
• Partnerships
• Athletes

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Partnerships

• Team in Training
• Carmichael Training Systems
• Lance Armstrong foundation
• Nike Sports Camps
• Tour of Hope
• International Society of Sports Nutrition

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Powerbar Athletes

• Lance Armstrong
• Brandi Chastain
• Josh Cox
• Michael Phelps
• Tim DeBoom
• Peter Reid
• Ian Murray
• Carlmelo Anthony

• Warwick Stevenson
• Dan Browne
• Tiki Barber
• George Hincapie
• Christine Thorburn
• Hunter Kemper
• Kris Freeman
• Normann Stadler

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Lance Armstrong

• 7 times Tour de France winner
• 4 time male athlete of the year
• With Powerbar since 1993
• Consumes more than 100 PowerBar Performance
  energy bars and 200 PowerBar PowerGel energy gels
  during the race

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Tiki Barber

• Top running back for New York Giants since 1997
• With powerbar since 2005
• Names POWERBAR TRIPLE THREAT, Chocolate Caramel
  Fusion his favorite

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Location

• First introduced in the United States
• Trend towards exercising and fitness in the
  society
• Now offered in more than 40 countries

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Linkages with Other Firms

• PowerBar is a subsidiary of Nestle
• Acquired by Nestle in 2000
• Since acquisition expanded distribution

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Evaluation of Strategy

• Focus
• Developing new products
• Creating more partnerships
• Expanding internationally
• Strong marketing strategies

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Evaluation of Strategy

• Strategy fits well with general environment
• Appeals to different demographic segments
• Trend towards exercising and fitness in the
  society
• Overall stronger economy
• Uses top technology and expertise
• Not significantly impacted by legal and political
  conditions

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Evaluation of Strategy

• Strategy fits with strengths and weaknesses of
  the organization
• Subsidiary of Nestle leader in food industry
• Consumer communication variety of marketing
  strategies
• Product innovation offering new products,
  investments in research and development
• Quality and brand recognition difficult to
  compete with

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Evaluation of Strategy

• Company chose an appropriate direction
• Strategy fits with conditions with general
  environment
• Strategy fits well with strengths and weaknesses
  of organization
• Strategy is likely to continue being successful

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Conclusion

• PowerBar is the pioneer in sports nutrition
• PowerBar is subsidiary of a major food company
  Nestle
• Key Success Factors
• Product innovation and renovation
• Product availability
• Consumer communication

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Conclusion

• Differentiation is the primary business strategy
• PowerBar is likely to continue expanding
• Appropriate strategy
• Concentration on growth
• Multiple alliances

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PowerBar Quiz!!!