A, How is the market segmented? What are the key customer motivations and unmet needs? What are the similarities and differences among the segments? How might a company link customer motivations to value propositions?
Demographic Segmentation means dividing markets into objective quantifiable characteristics. In the case, energy bar business is divided by age, gender, calories need, preference and so on.
Usage segmentation means identifying market segments according to the way(s) in which the product or service is to be used. In the case, the motivation changed from providing a convenient energy boost for athletes to generalizing better “performance” during the day.
Key customer motivations and unmet needs
Energy Bar was
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These needs arise from change in trends, the economic environment, and the social environment. In order to be able to meet the needs and changes in the market, these companies need to be flexible and adaptable. Take PowerBar for example, if they were adamant about only marketing to the athlete who needed an efficient, effective energy source, they would be missing out on the new markets of their competitor Clif Bar. They wouldn’t have been able to keep with the market trends and they wouldn’t be able to reach new targets by producing new products. In order for there to be leverage, each company will have to deal with a specific target market and not interfere with marketing strategy of another company by targeting their consumers. However, that is not ideal, because the companies will not be able to adapt and cater to consumer need if those needs change.
4, Will the energy bar category morph into food bars, with elements like diet, tasting like candy, and breakfast replacement dominating as the energy definition recedes? How can Nestle’s Power Bar keep that from happening and still maintain its mainstream/supermarket posture?
Yes, the energy bar categories will morph into food bars. This is being caused by the segmentation of the market. Since the typical energy bar is not catering to just athletes anymore the new submarkets is