Marketing Clif Bar to China

Term Project

Marketing Clif Bar to China

Abstract

Clif Bar is a family owned private business that was formally launched in 1992 by Gary Erickson. In deciding where to introduce Clif Bar, we debated between India, China, Brazil, Spain, and Egypt, before finally deciding on China as our launch country. Looking at indicators such as GDP, household income, family structure, cultural foods and traditions, transportation, advertising options, and competition, we projected that China would give us the greatest return on our investment. The existing snack bar market in China is also favorable for Clif Bar, as the number of competitors is low and market saturation is also lower than in most countries. Using Porter’s Five Forces as a guide, China offers relatively low competition and threat of substitutes and entrants.

Our target market will be the young professional demographic in urban areas, with a focus on the two largest cities in China, Beijing and Shanghai. Before we made this decision, we completed a market audit and competitive market analysis, including demand estimation and SWOT analysis. Since China is a very fast paced culture, especially in the cities, we will be promoting through advertisements on public transportation, billboards and social media. China has over 700 million smartphone users, so it can be expected that social media interactions will have an impact on reaching our target demographic. With already well-established shipping practices, it will be easy for us to integrate Clif Bar products into China’s transportation systems. We think Clif Bar has a high likelihood for success, entering into a lowly saturated market with a firm business plan in place.

Part I: Evaluating Worldwide Marketing Opportunities

1. Introduction

History of the Company

        Clif Bar has been a family owned company since 1990, and was formally launched in 1992. The story began when the founder, Gary Erickson, went on a 175 mile bike ride and realized that the only bar available to him was unappetizing and unfulfilling. From that moment, “Gary took his idea to the best baker he knew, his mom, and for the next few months the two experimented with ingredients and recipes - mixing baking and tossing out bars that weren’t good enough. Finally, Gary settled on the right recipe - a better tasting bar he made with nutritious, wholesome ingredients to sustain energy” (ClifBar - The Clif Bar & Company Story, 2013). This is when the Clif Bar was born. Gary toyed with a few different ideas of naming the invention, but finally settled on “Clif” in honor of his father’s name, Clifford.

        The Clif Bar was extremely successful with those whom lived exceedingly active lifestyles. These types of people included mountain bikers, cyclists, mountain climbers, and runners. In the late 1990’s, the company was being pressured to be bought out by multinational food companies, but Gary and Kit Crawford resisted and made the decision to continue to operate privately (ClifBar - The Clif Bar & Company Story, 2013). From the beginning, the company has vowed to use as many organic ingredients as it can, and also use as many sustainable tactics for its building and practices as well. The company is based in Emeryville, California and began the Clif Bar Family Foundation in 2006 which supports companies that foster a grassroots foundation and are in need of financial support.