Tag Archives: market strategy

PepsiCo Buys Bare Snacks

Consumer taste trends are moving to healthy and natural foods.  Organic and non-GMO healthy snacks are a growing industry segment that is particularly appealing to Millennials and Generation Z.

What should a company do to take advantage of the new industry and market segments? While companies can develop new products, market adoption of the new products can take valuable time, and development itself takes resources and money away from a company’s established products. A faster way to enter a new market with a new product is through acquisition. Case in point is PepsiCo’s recent purchase of snack manufacturer Bare Foods Co. to help bolster Pepsi’s health snack offerings.

Bare Snacks was founded in 2001 by a family-owned organic apple farm in Washington. It began by selling baked apple chips in local farmers’ markets. Today, the Bare line of fruit and vegetable snacks are sold at Starbucks, Costco, Whole Foods, Kroger, Target, and more. The products are made from simple ingredients that are baked (not fried) and are officially non-GMO verified. Bare Snacks is a certified B-Corp and reflects its values statements in its products: simplicity, goodness, be real, and live fully.

Bare and Pepsi – an unusual, but winning combination.

Group Activities and Discussion Questions:

    1. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
    2. Which strategy did Bare Snacks use?
    3. Which strategy did PepsiCo using?
    4. Show Bare Snacks Web site: https://baresnacks.com/
    5. Show PepsiCo Web site: http://www.pepsico.com/
    6. Compare the two sites, products, and messages.
    7. Divide students into teams. Have each team select one of the four different strategies and explain why that strategy could be used to market Bare Snacks
    8. Have each team determine the marketing mix (4Ps) to support their strategy choice.

Source: Brandchannel.com (25 May, 2018). PepsiCo adds Bare Snacks to Frito-Lay Portfolio.

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Mug Keeps Drinks Hot!

It’s a small thing, but a pet peeve of many coffee drinkers is that they absolutely hate it when their mugs of coffee get cold, and have to be microwaved or refilled in order to be hot again. Reheating changes the taste. And then it gets cold again, and has to be reheated yet again, and so on…There should be a solution for the cold desktop mug of coffee.

And, now there is a solution. Enter the Ember Ceramic Mug to solve the dilemma. The mug incorporates technology that helps keep the drink at whatever temperature is needed. Using Ember’s app, the ideal temperature for each beverage can be set automatically. The sleekly styled mug has a change cooling system, micro-processor controlled heating system, and network of sensors – all working to keep the beverage at the ideal temperature!

The innovative design won Ember a coveted TIME Magazine’s Best Inventions of 2017 award. Priced at $79.95, Ember’s mug is not cheap. The white ceramic mug comes with charging coaster, is fully submersible (but wash by hand), and can maintain temperatures for hours on end.

Coffee, anyone?

Group Activities and Discussion Questions:

    1. Discuss the importance of setting objectives. Explain SMART objectives – specific, measureable, achievable, realistic, and time-bound.
    2. Show Ember’s Web site and products: https://ember.com/
    3. Video is available: https://youtu.be/7Vy_y52oZos
    4. Video: https://youtu.be/j9YAvpJTF9w
    5. Divide students into teams. Have each team develop five SMART objectives for this product.
    6. Discuss the objectives. How would the objectives change if a different marketing strategy was used?
    7. Debrief the exercise.

Source: Pierce, D. (12 Dec., 2017). I can’t stop drinking coffee out of this temperature-regulated mug. Wired Magazine.

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Kellogg Buys RXBAR

Consumer taste trends are moving to healthy and natural foods.  Nutrition and energy bars are a still-growing industry segment that is particularly appealing to Millennials. Yet, many of the older, established CPG firms struggle to attract and retain sales from that market segment. What should a company do? While it can certainly develop new products, market adoption of the new products can take valuable time and development itself takes resources and money away from a company’s established products.

A fast way to enter a new market with a new product is through acquisition. Kellogg recently took just this approach and acquired the very trendy RXBAR nutrition bar brand for a cool $600 million. The four-year old company currently has built its sales up to about $120 million and has added a children’s bar line, also.

RXBAR is known for a “no B.S.” innovative spirit. The brand highlights its commitment to whole food, protein bars that contain simple ingredients. The bars are gluten-free, soy-free, and dairy-free, tapping into a growing food product segment. RXBAR has a distinctive package that clearly states ingredients on the front of each package. For example: “3 Egg Whites, 5 Almonds, 4 Cashews, 2 Dates, No B.S.”

Group Activities and Discussion Questions:

    1. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
    2. Show RXBAR Web site: https://www.rxbar.com/
    3. Video about the company story: https://youtu.be/aMFwfKThixA
    4. Which strategy did RXBAR use?
    5. Which strategy is Kellogg using?
    6. Divide students into teams. Have each team select one of the four different strategies and explain why that strategy could be used to market RXBAR.
    7. Have each team determine the marketing mix (4Ps) to support their strategy choice.
    8. Debrief the exercise.

Source: Buss, D. (2017, Oct. 9). Kellogg looks to “no B.S.” RXBAR for growth and inspiration. Brandchannel.com

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