Since the beginning of the launch of this new product, the cereal bars have been performing
well in the British convenience market. In 2006, The Company presented its newest cereal
bars in the Alpen range: Alpen Light bars. According to Ken Wood, CEO of The Weetabix
Food Company, “In reply to the hectic balance of work, Weetabix gives with its new Light
bars an healthy option for today’s snacking culture as the cereal bars are not only tasty and
nutritious, but also convenient.” (The Weetabix Food Company, 2006, p. 2) The relationship between
The Weetabix Food Company and Alpen is defined as the endorsed identity: “where the
company externalises some activities with reference to the company name and/or allows
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subsidiaries to operate referring to that name; the characteristics of the company remain
visible, but the identity of the various activities is put first.” (Vos, 2001, p.41)
1.2 Performance
1.2.1 Sales & Market share
Alpen performs well in the British snack market. According to global supplier of consumer,
media and market research: Mintel (2004), in 2004, the Alpen brand has been estimated to be
worth £35 (_53) million; it accounted for 50% of branded muesli sales. (p.27) In this same year
the Alpen bars have been enhanced by a number three position in the British cereal bar
market with a 6.5% market share. “At 9.7%, British household penetration is high and levels
of repeat sales” are also well developed. (“Rising stars of cereal bars”, 2003, para.3)
1.2.2 Costumer satisfaction
From several reviews found on the internet one can conclude that 60% of all British
consumers are satisfied with Alpen cereal bars.
1.2.3 Positioning
“Positioning refers to the image of the product and brand in comparison to competitive
products and brands. The position of the product or brand is the key factor to communicate
the advantages that it offers and to distinguish from competition.” (Belch, 2004, p.65)
1.2.3.1 - Brand image
In order to attract the right target group, Alpen created a personality or image for its brand.
“By employing geography in the brand name, Alpen creates a geographic personality for the
product. Such a geographic personality can lead to geographic equity for the brand, meaning
that in the consumer’s memory, the knowledge of the brand reflects a strong geographic
association.” (Schiffman, 2007, p.135) “The Alpen branding has been successful in linking
consumers with strong imagery of Alpen Mountains, representing freshness and outdoor
wholesomeness.” (“Checkout”, 2003, para. 2)
Furthermore, the colors utilised on the packages of Alpen are principally the colors blue,
white and green. Besides these three (main) colors, Alpen also uses the colour that
represents the (main) ingredient manufactured in the specific cereal bar. For instance, the
package of Alpen Strawberry & Yogurt has, besides the three main colours, the red colour as
well, which represents the strawberry. The packages of the Alpen Light bars are using bright
colors in order to emphasize it concerns a Light product.
By picturing white mountains, a clear blue sky and a green pasture on the Alpen package,
the consumer gets a fresh, natural, healthy, relaxed and pure notion of the Alpen brand. This
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idea (really representing the Alpen mountains) perfectly fits the image of how Alpen brand
establishes itself as a pure, lively and healthy brand.
According to Schiffman (2007) by knowing the perceived gender of a product or a specific
brand, marketers are in a better position to select visuals and text copy for various marketing
messages. (p.135) As Alpen is presenting women in their advertisements, it makes clear it
targets on females. In other words, Alpen will attract women who are similar to their
personality. If Alpen was a person it would be: a pure, active and modern woman who pays
attention to the quality of life and enjoys living.
1.2.3.2 - Positioning in Britain
In Britain, Alpen is positioned on the basis of its product characteristics and advantages
since it offers different flavours and ingredients. Weetabix positioned Alpen as “a healthy
snack to eat anytime and for whatever occasion.” (“Eye-openers”, 2003, para.3 ) In Britain, Alpen
takes in the number three position in the snack/nutritional segment. However, it thrives to be
the number one nutritional in order to be consumers preferred supplier.
1.2.3.3 - Alpen’s greatest competitor on the Dutch market
After analysing the competitors (see appendix 1) one can conclude that B’Tween (Hero) is
Alpen’s toughest competitor on the Dutch market. This brand is the only cereal manufacturer
in the Dutch nutritional segment that offers light variants in its range as well. From research
appears that this brand has a good image among the Dutch consumers, since 67% of the
Dutch buy B’Tween (Hero) cereal bars. Besides offering different variants and flavours, the
package of this brand looks a bit like Alpens as well. B’Tween also uses (bright) colours that
represent the ingredients manufactured in the specific cereal bar, and it shows its bar,
ingredients and logo at the front of its package as well. However, this brand is positioned
different to Alpen: a wholesome snack that provides energy at the moments you need it.
1.2.4 Market segments of snack market
The Dutch snack market is divided into four markets: savoury, confectionery, biscuit and
chocolate. These markets are also split up into several segments. In the case of Alpen, the
biscuit market is subdivided into nine different segments, which includes the nutritional/snack
segment. Alpen comes under this segment.
1.2.4.1 - Total spendings on snacks
Research done by Study Centre of Snacks and Sweets Benelux (2006) reveals that Dutch
consumers spend 8.5% of their total food and drugs spendings, on snacks. The total
consumption of snacks is estimated at 532 million kilograms per head of population. In 2006,
the Dutch snack market increased by 1.3% in value and 1.3% in volume compared to the
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previous year. The total amount of spendings on this market has been valued at _2.922
billion. (p.4-5)
1.2.4.2 - Developments in biscuit market
According to Study Centre of Snacks and Sweets Benelux (2006), in 2006, the total biscuit
market was valued at _937 million. This has been an increase of _18 million with the
previous year. In the figure below, the shares of the segments of the biscuit market are
shown. As one can see the nutritional/snack segment is good for 17% and is with that the
second largest segment. (p.12-13)
In the table below, one can find the total spendings on the different segments in the biscuit
market. According to the Study Centre of Snacks and Sweets Benelux (2006), in 2006, the
total amount of spendings on snacks/nutritionals was valued at _159 million. This has been
an increase of _11 million compared to the previous year. After the ‘honey bread’ segment,
the snacks/nutritionals segment has increased most. Mainly due to new product innovations
and trends in healthy food, growth in this segment has taken place. (p.4-5)
Table 2: Study Centre of Snacks and Sweets Benelux, 2006
Trends in biscuit market (x _1 million)
2005 2006 Growth
Regular biscuits 56 53 -5.4%
Rest biscuits 116 110 -5.2%
Snacks, Nutritionals 148 159 7.4%
Biscuits 157 158 0.6%
Almond pastry filled 209 217 -3.8%
Small cakes 48 47 -2.1%
Honey bread 86 97 12.8%
Cake 38 37 -2.6%
Seasonal almond pastry 61 59 -3.3%
Total 919 937 2%
Shares of Segments
Biscuits; 16,9%
Snacks,
Nutritionals;
17,0%
Almond pastry;
23,2%
Cake; 3,9%
Rest biscuits,
Small waffles;
11,7%
Regular biscuits;
5,7%
Seasonal
almond pastry;
6,3%
Small cakes;
5,0%
Honey bread;
10,4%
Figure 1: Study Centre of Snacks and Sweets Benelux, 2006
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1.2.4.3 - Prospects of the Dutch snack market
Recent study of the Rabobank (2007) has predicted the following trends, threats and
opportunities concerning the Dutch snack market for the year 2007.
I. “The A-brands set the standard on the market, however, the pressure from own-label
brands on the A-brands grows.
II. Consumers want ease, comfort and luxury.
III. Consumers pay more attention to their health.
IV. Continuing awareness for product innovations. Meaning packaging (colour) and quality
(taste, ingredients)
V. Internationalization due to reaction of the buying power of retail.
1.2.4.4 - Threats & Opportunities
I. Product improvements and innovations offer opportunities to increase turnover.
II. The increasing attention to health offers opportunities for innovating new products. On
the other hand the discussion concerning overweight could restrain the demand of
existing products.
III. The supermarkets have great market power. This causes discussions concerning shelf
space and margin pressure.” (p.1-2)
