Writing Essay
Larabar Case Study BA-316U Essentials of Marketing Marketing Research, Consumer Behavior and Segmenting & Targeting Individual Assignment v 2.0 10 points https://library.pdx.edu https://guides.library.pdx.edu/ba316u
Background: You are the CMO for General Mills located in Golden Valley, Minnesota and you are in the marketing conference room working with Lara Merriken, founder of Larabar, on a possible product development strategy for LÄRABAR® Kid. Before you decide to do primary research, you are looking through secondary marketing research on marketing to kids, snack bars, etc., in Mintel and other relevant resources, such as the Census Bureaus American Community Survey (ACS) available by Google search. According to Lara, LÄRABAR® Kid is baked with love using 9 or fewer pantry ingredients and presently comes in three flavors; chocolate brownie, chocolate chip cookie and cinnamon swirl. This is an individual research assignment meaning your answers are your own. Its OK to cooperate to find the applicable research however, I will be paying close attention for original answers to the questions from each student. Papers that are the same or similar will receive a zero. Please type your answers (hand-written papers will receive a zero grade) recommendations and decisions on the following questions using and based on identified market research and attributions. The format of this research and decision paper is a typed question number, the typed question and the typed answer immediately under the question. Please cite your sources and discuss your approach if you answer the questions through primary research, personal experience or any other secondary research that factually substantiate your decisions. Please use an appendix to cite your sources. No drawing charts in pencil or pen, please! Maximum 3.5 pages typed and appendix. Looking at sales reports, sales for LÄRABAR® Kid are ahead of their 5% growth rate on their five-year (2015 – 2020) projections and are growing at an actual 8% rate. Lara has come up with 3 more flavors and they have all passed Laras yumminess test with kids 6 to 17 years old. 1. According to recent market research, does the kids market look favorable for a future
product extension via a product development strategy for a nutritional snack bar such as LÄRABAR® Kid? Consider the all following criteria in your answer:
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Market size the number of kids in the U.S. and age breakdown. Source suggestion: Mintel and American Community Survey (ACS) from the Census Bureaus website (Google it)
Expected growth change in the number and % of kids over the period 2010 – 2019 and in different segments
Competitive position Larabars market share. Hint: start by reading with Mintel
Snack Bar- Bar report What is Working Challenges/issues of reaching the segment. Hint: start by reading Mintel
Marketing to Kids; Snack bar Consumption; Kids as Influencers; Better for you Snacking
Compatibility with General Mills objectives & resources. Review company mission statement
2. Are there kids market segmentation possibilities? That is, does the market research
indicate that the extra effort and expense of segmenting the kid market could increase sales, profit and/or return on investment for the entire kids market or a segment of the kids market? Hint: go to Marketing to Kids report to start
2a. Which segments of the 6-17 kid market? Hint: go to Marketing to Kids report 2b. Do you think the new LÄRABAR® Kid products will steal customers and sales
from the Larabar products aimed at adults? Integrate and synthesize what you have read about the kids and snack bar market and make assumptions. This question is based upon the cannibalization theory in Segmenting, Targeting & Positioning.
3. What would be the evaluative criteria used by moms to purchase nutritional
LÄRABAR® Kid for their child to try (eat)? Hint: go to Mintel: Snack bar Bar attributes of interest & start by looking at figure 56. Also look at Better for You Snacking research and do key word search on kids, moms or parent. Thirdly, you will want to look at Parents Attitudes towards Kids & Tweens snacking (2013). Lastly use the Interactive Databook & choose bar attribute of interest. Cut the data by multiple criteria: children in household: by age; by parental gender
4. What would be the evaluative criteria used by different segments of kids to purchase or try (eat) a nutritional Kid Larabar? Hint: go to Mintel: Kids & Tweens report attitudes toward health and Kids as Influencers report to start
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5. Would you go ahead and enter the market with the 3 new Larabar Kid flavors? Why? Integrate and synthesize what you have read about the kids and snack bar market and make a yes or no decision and explain why.
Measurement /Rubrics
%
Answering all the questions 25% Quality of marketing research to support your decisions
15%
Quality of thinking, contents, integration and synthesis of marketing research, consumer behavior, STP and growth strategies
35%
The use of marketing/business writing principles – brevity and action is key! (In this case the action is the fact based decision)
10%
Ability to present your decisions convincingly 15%
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