Strategy for Food Marketing of Protein Bars in Australia

This report discusses the marketing strategies for protein bars in Australia, including industry analysis, market segmentation, target market identification, positioning, marketing mix, and promotional strategies.

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STRATEGY FOR FOOD MARKETING OF PROTEIN BARS IN AUSTRALIA
By (Put student name)
Class
Professor
School / University
Location
Date

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Executive summary
Successful marketing depends on the clear and in-depth understanding of the market demands.
Analysis of the industry, along with the different segments of its market ensures that the
strategies developed to acquire preference of the target market are aligned to the market needs. It
also allows the business organisation an opportunity to position itself uniquely, which is the key
to the competitive advantage. This positioning directs the future marketing activities and keeps it
in line with the preference and need of the consumer market.
This report aims to investigate different aspects of marketing through completion of the task of
developing a marketing plan for the protein bars in Australian market. To achieve this
successfully, industry analysis has been conducted based on which, a segment has been
identified for targeting the product. Positioning and marketing strategy has been determined for
launching the product in the New South Wales market. Completion of this study has contributed
to the understanding that, customisation of the marketing activities as per the cultural nuances of
the target market might the key to achieving consumer reference.

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Contents
Executive summary.........................................................................................................................2
Contents...........................................................................................................................................3
1. Introduction..................................................................................................................................4
2. Industry analysis and product......................................................................................................4
2.1 Porter’s five forces.....................................................................................................................4
2.2 Market segmentation.................................................................................................................5
3. Consumer behaviour concerning decision making......................................................................7
3.1 Target segment...........................................................................................................................7
3.2 Consumer decision making process...........................................................................................8
4. Positioning...................................................................................................................................9
5. Marketing mix...........................................................................................................................10
5.1 Product.....................................................................................................................................10
5.2 Price.........................................................................................................................................10
5.3 Place.........................................................................................................................................10
5.4 Promotion................................................................................................................................11
6. Marketing strategies – point of sale...........................................................................................12
6.1 In-store sales person as a specialist.........................................................................................12
6.2 Packaging.................................................................................................................................12
7. Conclusion.................................................................................................................................12
8. Recommendations......................................................................................................................13
Reference list.................................................................................................................................16
List of figures.................................................................................................................................19

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Appendix 1: Market data...............................................................................................................20
Appendix 2: Market data...............................................................................................................21

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1. Introduction
The key to a successful marketing strategy is the knowledge of the preferences, needs and buying
behaviour of the target market. This report through the marketing of the protein bars in the
Australian market, generates a detailed understanding of the different aspects that require
consideration for development of a sound and effective marketing plan.
2. Industry analysis and product
2.1 Porter’s five forces
The five-force analysis of the industry forces has provided the following understanding:
Figure 1: Industry forces in protein bar market in Australia
(Source: Created by student)
Due to the low cost of market entry, the threat of new entrants in the protein bar market of austral
is considerably high. However, the bargaining power of the suppliers is low as the substitute
material for the production of the protein bar is easily available in various sources. Moreover, the
presence of strong competitors such as Quest Nutrition, The Kellogg Company, MARS Abbott
Threat of new entrants- High
Buyer’s bargaining power- Moderate
Suppliers bargaining power- Low
Competitive rivalry in the industry- High
Threat of substitute products- High

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Nutrition, Muscle Pharm, General Mills, NuGo Nutrition and several others makes, the
competitive rivalry level of the industry is considerably high, which might be observed in their
exhaustive marketing initiatives (TechSci Research n.d.b). Despite the strong competition, the
industry does not face high threat of buyer’s bargain as there is a huge product demand from the
industry buyers and the pricing of the energy bars available in the market are considerably
similar. However, a certain level of price difference is still there availing moderate bargaining
power to the customers.
2.2 Market segmentation
Geographic segmentation
Based on the geographic location, the Australian protein bar market can be segmented in five
different segments, namely, Queensland, western Australia, New South Wales, Victoria and
South Australia. The consumption of protein bars is highest in New South Wales and
Queensland (TechSci Research n.d.a). Which marks that targeting these geographic segments
might attract more sales than the others might.
Demographic segmentation
Individuals of all age groups, beginning from 2 years might consume protein bars depending on
their consumption ability of different level of protein content (Johnson et al. 2017). Based on
purchasability market can be segregated in three parts. The top one-fifth of the market that earns
over $260,000 might prefer to consume high-end product while the bottom one-fifth of the
population, with annual income of $23,000, would seek the economic ones. The rest of the
population with average income of $110,000 might opt for the product that they perceive as
capable of delivering value for the money (Australia's household income and wealth distribution

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n.d.). Sports persons, health enthusiasts and individuals with need for protein supplements might
be the segments interested in such products.
Psychographic segmentation
Evans (2015) identified the increasing number of people attending gym in Australia creating
market worth $849 million for nutrition supplements. This might be a potential target segment
for the protein bars. As per the report of AusPlay, over 17 million people in Australia that is,
around 87% of its population participated in some sort of sports activities between the year 2015
and 2016 (AusPlay 2016). Therefore, people associated with sports might be potential consumer
segment for marketing this product as well.
Behaviouristic segmentation
The Australian market of protein bars might be segmented based on purchase behaviour of
consumers. While the regular users might be an attractive segment, event based marketing might
encourages the occasion-based consumers. The market might also be segmented between the
customers that purchase base on the content of the protein bar and the ones selecting the product
based on price.

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3. Consumer behaviour concerning decision making
3.1 Target segment
Based on industry analysis the average earning, health enthusiasts, gym members and sports
persons of New South Wales are identified as the primary target market for the product. Chernev
(2018) mentioned the value of following factors while targeting a particular market segment:
Figure 2: 5Cs of target market
(Figure: Created by student)
While determining the target market identification of the nature and the needs of target customer
is essential. For instance, the protein content of the protein bar consumed by a sports person or
gym user is much more than that of a child or an average person. Moreover, the economic
context explains the acceptable price range for the chosen market. Identification of the
competitors, their products and available collaborators in the target market is also crucial for
development of the market strategy. West, Ford and Ibrahim (2015) identified, strong
distribution options immensely affects the decision of market entry. Therefore, availability of the
large supermarkets and distribution channels like Woolworths Supermarket and Coles in several
Customer Sports person
Gym users
Fitness
enthusiasts
Competitors The Kellogg
Company,
MARS Abbott
Nutrition,
Muscle Pharm,
General Mills,
NuGo
Nutrition etc.
Collaborators Distributors
Supermarkets
Context New South
Wales
Average
income
Company The nutrition
bar
manufacturer

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locations of New South Wales argues in favour of its selection as a target market (Witherby,
n.d.).
3.2 Consumer decision making process
As per utility theory, consumers purchase a product based on the value that they expect the
product to deliver (Lerner et al. 2015). As discussed in the previous section, customers of the
chosen segment, though is price sensitive yet would evaluate the value comparing the price with
the content of the protein bar. Moreover, as the target market is related to fitness and sports
therefore the protein bar need to be of high protein content. Therefore, modelling and marketing
the protein bar as of high protein content would attract the target customers.
Both quality and price would play an important role while determining the preference of the
selected market segment. Hence, along with the customisation of the product as per preference
and requirement of the target market, price of the product also needs to be competitive. However,
low price of the product might also be interpreted as a reflection of inferior quality, which might
risk rejection from the selected target market (Maity & Dass, 2014).

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4. Positioning
High price
Low
Protein
Thinkthin Protein Bar
Musashi
Titan Bar
Jumbo Protein Bar
Metagenics High
ProteinCliff Bar
AussieBodies
Quest protein bar
Protein Bar
Proteinissimo protein bar
Low price
Figure 3: Positioning of Protein Bar in New South Wales Market
(Source: Created by student)
The positioning map has been developed by reviewing product descriptions and supermarket
price list of each brand and product individually. From the figure above, it is evident that the
product would be positioned as a budget protein bar with comparatively high protein content.

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5. Marketing mix
5.1 Product
A high protein content protein bar with taste of chocolate and nuts and a hint of orange would be
the product marketed. There are several similar protein bars in the market with chocolate and
nuts. However, the additional flavour of orange is expected to grab the attention and curiosity of
customers in the market. The product would contain soya and partially hydrolysed milk protein
isolate with additional whey and yoghurt. Each bar of 80 grams would contain 35-40 grams of
protein. The combination of its content makes the product suitable for consumption of both men
and women. The product is expected to appeal to the residents of New South Wales that engage
in sports activities, gyms and fitness enthusiasts in general.
5.2 Price
The price of the protein bars, available in the market, range from $1 to $5 per unit. While some
of the market leaders belong to the high price categories most of the bars range between $2 and
$3.5. Hinterhuber and Liozu (2017) stated that innovation in pricing might be effective in
generating competitive advantage for a company. Due to the price sensitivity of the target
customers and presence of several competitors, the price of the product would be set between
$1.75 and $2.25 to ensure that its price does not develop negative perception about its quality
and makes it appear attractive as well.

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5.3 Place
During the initial introduction of the product to the market of New South Wales utilisation of
selective distribution strategy and availing the product only in large supermarkets such as Coles
and Woolworths might be helpful in avoiding the possible loss. Based on the reaction of the
target market towards the initial batch of the product, significant changes might be brought in the
product or its distribution and marketing measures. In addition, the product might also be availed
to other parts of Australia through online sights dedicated to fitness and sports nutrition products.
As the product receives acceptance in the market of New South Wales it might be availed in rest
of the country through both e-commerce sites and retail stores.
5.4 Promotion
Both virtual and physical promotional measures would be undertaken for promoting the protein
bars. Health and fitness magazines along with the leading sports magazines and newspapers of
New South Wales would feature the advertisement of the protein bar. Social media marketing
would be used along with television advertisements (Ashley & Tuten, 2015).
The huge number of followers of social media influencers and YouTubers, local influencers and
fitness bloggers might be used by asking them to reviewing and react to the launched protein bar.
Their opinion might influence the acceptability of the product in the young adult segment of
target market. Dessart, Veloutsou and Morgan-Thomas (2016) emphasised on the importance of
participation in community works and local events for ensuring positive public association with
the product. Therefore, to ensure its association with fitness and sports, the product can be
promoted during soccer matches and the manufacturer might sponsor a team. Finally, in-store

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marketing would be used to convince the customers to try samples and perform a purchase for
trial.

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6. Marketing strategies – point of sale
6.1 In-store sales person as a specialist
Using nutritionists as sales representatives of the organisation in the supermarkets might help the
organisation to acquire preference of the target consumers. Moreover, in-store sales personnel
often spend their entire sales presentation on convincing the customers of the desirability of the
product, which is effectual for product introduction, for performing the purchase, consumers
need to be convinced of its feasibility (Willems, Brengman & van de Sanden, 2017). Therefore,
the sales personnel need to distribute the entire sales pitch between the contents or value of the
protein bar and the ease of its consumption. For instance, the direct promotion might incorporate
bite-size samples of the protein bars.
6.2 Packaging
Along with the safety and hygiene of the product, aspects like design and marketing message on
the packet also influences the purchase decision of the consumer (Raheem, Vishnu & Ahmed,
2014). As New South Wales has been the home for legendary sportsmen like Don Bradman,
Steve Waugh, Glenn McGrath and many more, designing packaging and launching each series to
pay homage to one of these legends along with an inspirational quotation might generate swift
acceptance of the product in the target market.
7. Conclusion
Completion of this report has provided an understanding of the impact that the nature and needs
of the target market has on the marketing strategies of a business organisation. The study also

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triggered the understanding that for effective marketing, it is essential to incorporate cultural
nuances of the target market in the marketing processes.
8. Recommendations
The vision of the organisation is,
 To become the most popular choice of protein bars in New South Wales market
The following strategies are recommended for attaining the identified vision:
Cultural marketing
Specific Series of protein bars, dedicated to legendary sportsmen of New South Wales
through innovative packaging
Measurable Measured through the improved sales rate of the product
Achievable Takes same resources as normal packaging
Relevant As influence of sports is predominant in the culture of New South Wales
therefore such marketing strategies are relevant for acquisition of a large market
share.
Time bound Achievable within 2 months
Table 1: SMART recommendation
(Source: Created by student)
Time
Actions
Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Market research

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Selection of sportsperson
Research on the sportsperson
Designing the packaging
Review
Rectification
Implementation
Launch in the market
Table 2: Time plan
(Source: Created by student)
Use of social media influencers
Specific Enabling social media influencers to review the protein bar
Measurable Measured through improved sales performance
Achievable Less expensive than any other mass media advertisement
Available in New South Wales
Relevant With the increasing shift of population towards social media word of mouth
publicity though social media influencer has become important for acquisition of
young adult market
Time bound Achievable within 6 weeks
Table 3: SMART recommendation
(Source: Created by student)
Time Week Week Week Week Week Week

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Action 1 2 3 4 5 6
Social media research
Suitable social media influencers (Sports
person, Fitness bloggers)
Approach the social media content
creators
Acquire their approval
Arrange for the review
Presentation of the review on-line
Table 4: Time plan
(Source: Created by author)

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Reference list
Ashley, C. and Tuten, T., 2015. ‘Creative strategies in social media marketing: An exploratory
study of branded social content and consumer engagement.’ Psychology & Marketing, vol. 32,
vol. 1, pp.15-27.
AusPlay 2016, AusPlay participation data for the sport sector, TechSci Research, viewed 29
September 2018,
<https://www.ausport.gov.au/__data/assets/pdf_file/0007/653875/34648_AusPlay_summary_rep
ort_accessible_FINAL_updated_211216.pdf>
Australia's household income and wealth distribution n.d., viewed 29 September 2018,
<https://mccrindle.com.au/insights/blog/australias-household-income-wealth-distribution/>
Chernev, A., 2018. Strategic marketing management 9th edn. Cerebellum Press, Chicago.
Dessart, L., Veloutsou, C. and Morgan-Thomas, A., 2016. ‘Capturing consumer engagement:
duality, dimensionality and measurement.’ Journal of Marketing Management, vol. 32, no. 5-6,
pp.399-426
Evans, S. 2015, Vitaco cashes in on gym junkies, The Sidney Morning Herald, Sidney, viewed
29 September 2018, <https://www.smh.com.au/business/vitaco-cashes-in-on-gym-junkies-
20150901-gjc5tl.html>
Hinterhuber, A. and Liozu, S.M., 2017. ‘Is innovation in pricing your next source of competitive
advantage?’ Business Horizons, vol. 57, pp. 413-423

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Johnson, B.J., Bell, L.K., Zarnowiecki, D., Rangan, A.M. and Golley, R.K., 2017. ‘Contribution
of Discretionary Foods and Drinks to Australian Children’s Intake of Energy, Saturated Fat,
Added Sugars and Salt.’ Children, vol. 4, no. 12, pp.104-116
Lerner, J.S., Li, Y., Valdesolo, P. and Kassam, K.S., 2015. ‘Emotion and decision
making’. Annual review of psychology, vol. 66, pp. 799-823, viewed 29 September 2018,
<https://www.annualreviews.org/doi/pdf/10.1146/annurev-psych-010213-115043>
Maity, M. and Dass, M., 2014. ‘Consumer decision-making across modern and traditional
channels: E-commerce, m-commerce, in-store.’ Decision Support Systems, vol. 61, pp.34-46.
Raheem, A.R., Vishnu, P. and Ahmed, A.M., 2014. ‘Impact of product packaging on consumer’s
buying behavior.’ European journal of scientific research, vol. 122, no. 2, pp.125-134
TechSci Research n.d.a, Australia Protein Supplements Market Size, Share, Analysis & Forecast
2023, TechSci Research, viewed 29 September 2018,
<https://www.techsciresearch.com/report/australia-protein-supplements-market/1702.html>
TechSci Research n.d.b, Australia Protein Supplements Market Size, Share, Analysis & Forecast
2023, TechSci Research, viewed 29 September 2018,
<https://www.techsciresearch.com/report/australia-energy-bars-market/1371.html>
West, D.C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage
3rd edn. Oxford University Press, USA
Willems, K., Brengman, M. and van de Sanden, S., 2017. ‘In-store proximity marketing:
experimenting with digital point-of-sales communication.’ International Journal of Retail &
Distribution Management, vol 45, no. 7/8, pp.910-927

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Witherby, A.W. n.d., Supermarkets – Scourge or Saviour?, The Regional Institute, viewed 29
September 2018, <http://www.regional.org.au/au/countrytowns/global/witherby.htm>

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List of figures
Figure 1: Industry forces in protein bar market in Australia...........................................................4
Figure 2: 5Cs of target market.........................................................................................................7
Figure 3: Positioning of Protein Bar in New South Wales Market.................................................9

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Appendix 1: Market data
Protein supplement market forecast for 2017-2022
(Source: https://www.techsciresearch.com/report/australia-energy-bars-market/1371.html)

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Appendix 2: Market data
Protein supplement market forecast for 2018-2023
(Source: https://www.techsciresearch.com/report/australia-protein-supplements-market/
1702.html1)