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Industry analysis Competitive analysis Smartest & dumbest marketing tactics Previous KIND marketing elements Marketing research Consumer touch points map Perceptual maps Lessons learned SWOT analysis Brand positioning
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Industry Analysis
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In 2011, retail current value sales of snack bars are expected to increase by 7% toUS$5.7 BN, whilst retail volume sales are expected to increase by 5%
Massive growth in energy and nutrition bars, stronger growth in breakfast bars. Energy and nutrition bars is expected to continue its recent boom with value
sales increasing by 13% to reach US$2.0 BN in 2011 With an expected increase of 2% in 2011, unit prices increase faster than the
annual average By 2016, snack bars is expected to increase by 14% to reach US$6.5 billion While the category has proven to be quite resistant to recession, there is some
indication that growth will slow from 2011-15 due to market saturation and as the
market reaches maturity Companies seeking significant growth from 2011-15 will want to focus some of
their efforts on recruiting new customers, in particular those who have nottraditionally been nutrition and energy bar users. Brands may find that school-based distribution effortsfrom elementary schools to college campusesmayprove to be an effective way to drive future sales and create long-lasting brand
relationships
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Consumers are reaching for energy and nutrition bars tosupplement their regular eating habits, while some time-crunchedconsumers even substitute a bar or two for an entire meal
Large % of ones daily requirement of vitamins, calcium, proteinand fibre are increasingly being complemented with natural grainsand berries
Common perception of energy and nutrition bars has changedfrom chalky, utilitarian food for workout junkies or crash dieters toflavorful and healthy snacks
Smaller brands have cultivated hip, socially-conscious lifestylebrands which appeal to younger, more affluent consumers.
Fruit bars is not positioned well for growth. Many of the productsin this category are laden with sugar, corn syrup, preservatives,artificial colours and partially hydrogenated oils. Whilst many ofthe products contain added vitamin C, they are not commonlyviewed as healthy snacks.
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200
220
240
260
280
300
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
By Volume ('000 tonnes)
281.5
262.2
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4,000
4,500
5,000
5,500
6,000
6,500
7,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
By Value (US $MM)
6,470
5,684
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19.5%
34.3%11.6%
29.7%
4.9%
2011
19.0%
36.6%9.6%
30.5%
4.3%
2016
Breakfast Bars
Enerygy and Nutrition Bars
Fruit Bars
Granola/Muesli Bars
Other Snack Bars
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Industry Analysis
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Non-Store Retailing
Other Non Grocery Retailers
Health and Beauty Retailers
Other Grocery Retailers
Small Grocery Retailers
Discounters
Supermarkets/Hypermarkets
Small grocery retailersinclude convenient stores,independent small grocers,and forecourt retailers Non-store retailingincludes vending machine
and online retailing
40.2% 40.6% 40.8% 41.0% 41.1% 41.2%
9.2% 9.2% 9.3% 9.4% 9.4% 9.5%
16.9% 17.1% 17.1% 17.1% 17.2% 17.2%
4.3% 4.5% 4.7% 4.6% 4.5% 4.5%
28.5% 27.5% 27.0% 26.8% 26.8% 26.4%
0.9% 0.9% 1.0% 1.0% 1.0% 1.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
(% retail value rsp)
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And at an average of 2.48 occasions per day, snacking is more than just anoccasional activity for most kids
Kids cite a wide variety of snacking occasions. Watching TV is the most frequentlycited snacking occasion in all gender/age groups, mentioned by more than three
quarters of kids. Snacking while watching TV can happen nearly any time,including after dinner and on weekends, but likely most often happens afterschool
The idea that snacking can be a family activity is reflected in the finding thatmore than half of kids, consistent across gender and age, say they snack withtheir mom or dad
Kids are interested in trying new kinds of snacks, a finding consistent with thenotion that novelty and fun are key ingredients in snacking. In fact nearly half ofkids say they sometimes snack just for fun, even when theyre not hungry. Theimplication for marketers and retailers is that refreshing product lines with newflavors and textures is a key to maintaining interest and engagement.
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Only 12% report buying snacks from school vending machines, a finding thatreflects the lower incidence of vending machines in elementary schools.
Six kids in 10 say they really like snacks that come with free surprises in thepackage.
Between 2010 and 2015 the population of younger kids will grow faster than thatof their older counterparts. Kids aged 11 and under are projected to increase4.7%, more than twice the 2.2% rate projected for kids aged 12-17
While the difference is not dramatic, faster population growth among kids aged11 and under ensures that they will remain a primary target for snack foodmarketers
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Total Boys 6-8 Boys 9-11 Girls 6-8 Girls 9-11
Base: kids 6-11 who eat snacks/treats between
meals
480 120 120 120 120
Favorite (1st, 2nd or 3rd favorite)*:
Chips or pretzels 32% 37% 36% 20% 35%
Cookies 25% 23% 27% 33% 18%
Fresh fruit 23% 19% 13% 33% 28%
Fruit snacks (like roll-ups or strips) 22% 18% 23% 23% 23%
Ice cream 20% 20% 23% 18% 20%
Yogurt or yogurt drinks 20% 20% 18% 23% 18%
Popcorn 19% 20% 14% 18% 25%
String cheese or sliced cheese 19% 18% 17% 23% 19%
Frozen treats (like popsicles) 12% 14% 9% 12% 13%
Crackers 11% 13% 10% 10% 13%
Pudding cup 11% 14% 13% 7% 9%
Cupcakes, snack cakes or pies 11% 9% 13% 10% 10%
Candy bars 11% 7% 20% 3% 13%
Nutritional snacks (like cereal or granola bars) 10% 8% 9% 13% 10%
Pizza rolls or bites 9% 13% 14% 4% 6%
Cereal by itself (plain and with no milk) 7% 12% 3% 9% 3%Cold cereal with milk or so milk 6% 7% 9% 3% 3%
Favorite healthy snack, among kids 6-11, by gender and age, March 2010Question: Of the snacks that you eat, what are your three favorites?
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Favorite healthy snack, among kids 6-11, by gender and age, March 2010
Question: Of the snacks that you eat, what are your three favorites*?
* Results show the percentage of respondents that indicate that a given snack is their favorite,
second favorite, or third favorite snack.
Source: Mintel
Total Boys 6-8 Boys 9-11 Girls 6-8 Girls 9-11
Base: kids 6-11 who eat snacks/treats between meals 480 120 120 120 120
Healthy snacks:
Fresh fruit 63% 58% 58% 64% 69%
Fruit snacks (like roll-ups or strips) 52% 48% 55% 53% 54%
Yogurt or yogurt drinks 48% 45% 46% 49% 53%
String cheese or sliced cheese 46% 43% 42% 52% 48%
Nutritional snacks (like cereal or granola bars) 42% 41% 38% 39% 49%Raw vegetables 28% 23% 24% 32% 33%
Nuts 25% 28% 25% 21% 28%
Snack mixes (like nuts and raisins together) 25% 21% 26% 24% 29%
Dried fruit (like raisins or apricots) 19% 16% 15% 21% 23%
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KeyPlayers
MarketingStrate
gies
Spending
&Advertising
Pricing
M
erchandisin
g
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Variety:Crunchy Granola Bars (9 flavors)Chewy Trail Mix Granola Bars (3)Chewy Granola Bars w/ Yogurt Coating (2)Sweet & Salty Nut Granola Bars (5)
Roasted Nut Crunch Granola Bars (2)
Sales ($mm):
2008 - $3452009 - $3742010 - $402
PepsiCo
Granola Nut Clusters (3)Granola Thins (2)
Sales ($mm):2008 - $4892009 - $4742010 - $542
General Mills
11 varieties including: granola bars,oatmeal to go
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19 flavors Sales ($mm):
2008 - $25
2009 - $372010 - $54 General Mills
4 flavors Sales ($mm):
2008 - $46
2009 - $392010 - $35 Coca-Cola Co
Variety:GOLEAN, Chewy/Crunchy Granola,Cereal Bars, Layered Granola
25 flavors Sales ($mm):
2008 - $1322009 - $1462010 - $153
Kellogg
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5 flavors Natures Path
revenue was
$150mm in 2007and was growingannually at 20%
Natures PathFoods
13 flavors Launched new kid-
approved bars in August2011 in two flavors:Oatmeal raisin and Peanutbutter chocolate chip
General Mills
7 flavors Total sales ($mm) for Clif Bar Inc:
2008 - $1682009 - $189
2010 - $274* Clif Kid Z Bar attributable for
~11% of total sales
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10 flavors Sales ($mm):
2008 - $186 2009 - $204 2010 - $213 Kellogg
3 flavors General Mills
Variety: Fruit & Nut 11 flavors
Plus 8 flavors Mini 4 flavors Healthy Grains 6 flavors
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Competitors rely heavily on ATL advertising Big CPG companies do not have the same
type of user community that KIND does Brand positioning is as a healthy snack simply
because it falls in the granola bar category exploits consumer lack of education about
healthy foods Discounting is used to encourage consumers
to taste their product
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Top Advertising Spenders Dollars Spent on Advertising Main Medium
Nature Valley (1) $10,342,720 TelevisionSoyjoy (2) $5,309,540 Magazines
Nutri-Grain (3) $4,875,590 Television
Quaker Chewy (4) $2,696,550 Television & Magazines
KIND Snacks (9) $191,000 Outdoor
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$0.39$0.46 $0.52
$0.57$0.69 $0.70
$0.83
$1.28 $1.29
$1.89 $1.92$2.00
* Price per single-serving barcalculated as average price acrossmultiple retailers
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Natural Grocery Channel
Crowded snack bar aisle. Brands Kashi, Clif,Lara, Cascadian Farm, KIND, and Natures
Path enjoy dominant shelf positioning.
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Drug Channel
Product assortment is a mix of Energy &Performance bars and Diet bars, positionedalongside energy drinks and supplements
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Drug Channel
End cap displays feature brands Natures
Valley and Kashi
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Traditional Grocery Channel
Quaker Chewy features teen celebrityNick Jonas on packaging . Brands NatureValley, Quaker Chewy, and Fiber Oneenjoy dominant shelf positioning.
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Other Channel: AirportOther Channel: School Cafeteria
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DUMBESTSpecial K: Strut Your Sassy
SMARTESTQuaker Chewy: Nourish their Play
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Marketing strategy driven by sampling and POSdisplay Touching consumer when most effective when hungry or
making purchase decision
Coupons and mailers to promote sampling Very limited use of advertising
Only a few billboards and street furniture Cause marketing
KIND Movement as a way of engaging customers withbrand mission Website & Social media
Interacting with customers online
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Sampling
Goal to try and find people in a time of need
(when they are hungry), and sample them Best conversion rate of sample to regular
consumer of any bar brand
Best marketing dollar spent is to provide someone
with a KIND bar in a time of need
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Sampling KIND Food Truck
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Sampling At the point of need
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Point of Sale Marketing
In-store displays & placement near register
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Point of Sale Marketing
In-store sampling
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Targeting influential groups and individuals Culinary Community
Nutrition, bold taste, whole ingredients
Health & Wellness Community Gym-goers, nutrition experts, yoga and pilates
Support pro athletes avoid competitive athletics
Culture Groups Art, music, and fashion
Product seating in green rooms, VIP rooms, etc
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Media & Advertising
Very limited use of advertising
To-date only street displays billboards, posters, streetfurniture
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Cause Marketing The KIND Movement
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Cause Marketing The KIND Movement
Using cause to promote trial, word of mouth
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Cause Marketing The KIND Movement
Social mission being pushed by charismaticfounder creates many PR opportunities
KIND gets much more press coverage than CLIF,even though CLIF is a much bigger company
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Website & Social Media
KINDAHOLICS & KIND Advantage
Direct sales to customers & subscription service
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Website & Social Media
Facebook & Twitter
Use social media to interact with customers as well asmerchants and partner brands
Reinforce brand image & messaging
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Kind
In-storeRetail
CompanyWebsite
SocialMedia
PR &Media
(TV, Print)GrassrootSampling
Truck
OutdoorAdv
OtherRetail(Caf,
Airport)
RegionalPartners(e.g. Zip
Car)
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YMCA
Daycare
Summer Camps Convenience Stores
After
School
School Cafeteria
Vending Machines
Sports Stadiums School Fundraisers
During
School
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Whole Fruit/Nuts
HighPriceL
owP
rice
Processed
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Gluten free
KidsSnack
AdultSnack
Gluten
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Diverse FlavorRange
Healthy
Unhealthy
Uniform FlavorRange
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Lesson Learned Implication
KIND s strength is in sampling: ithas a 70% conversion rate
To reach children, KIND shouldoffer sampling when children havea time of need, such as at schools orchildrens sporting events
KIND has been able to attractpositive media attention betterthan competitors
To reach the kids segment, KINDshould target influencers in thesphere of childrens health andnutrition
Competitors heavily use ATLadvertising and discounting tocreate brand awareness
To compete with more establishedplayers, KIND needs to invest morein marketing, either by increasingsampling or trying ATL advertising
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all
INTRNA
ORGIN
EXRNA
ORGIN
STRENGTH WEAKNESS
OPPORTUNITY THREAT
* All natural fruit & nut positioning* Heavy PR & media exposure* High conversion rate* Gluten & wheat free. Non GMO
* Wide flavor product range* Strong social mission
* Low brand awareness* High price point* Limited distribution* Limited advertising support
* Lack of kid snack positioning
* Fragmented competitive
landscape dominated by largeCPGs with deep distribution
* Heavy industry print advertising& celebrity endorsements
* Deep retail promotions
* Sales via school-based
distribution channels* Kid size package size* Multi-pack vs. single serving
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To parents, teachers, and caretakers ofschool-aged children, Kind snacks is a
convenient snack bar that is both nutritiousand delicious with wholesome ingredientsyou can see and pronounce, which is good
because growing children need healthy food
to build healthy bodies