I buy protein bars occasionally, purely for convenience sake - never powders/shakes. They can be a convenient meal replacement when on the road.
From my observations, there is a lot of competition and 'noise' in that section of the isle. By that, I mean that many manufacturer's products are crammed together in a relatively small area that is often bypassed completely by shoppers. A lot of the products look very similar and it really makes it hard for any one product to stand out from the crowd.
Because these are niche products, , the only bars and products that sell well are the ones with the big, bright 50% off tickets. I suspect most non-discounted products have a fairly slow turnover.
Now, KTD may be able to keep its products on the shelf if turnover is high enough. But to do that, it will likely need to offer ongoing discounts. Ongoing discounts cannibalise profits. At the end of the day, just like Tonik drinks, these are always going to be relatively low volume, niche products. Whether sales volumes will be sufficient to cover the input and marketing costs is yet to be seen. But Supercubes is an example of what happens when things go wrong.
I just wish KTD would give these niche products away and just concentrate on the staples. Cereals, muesli bars, milk powders etc etc are all a no brainer. Jeez, so many muesli bars go into school lunch boxes, it's ridiculous.
oh well, let's just see what happens..
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