Switching loyal customers to a new product would be much easier than attracting entirely new customers for the PowerBar that had the ActiCaf ingredient included within it. Next, the company began to study both internal company data on pricing of comparable sports nutrition products, in addition to looking at pricing studies outside the company to get a sense of what their revenue forecasts would be for the ActiCaf-based PowerBar. Pricing was critical for the entire business plan is it would also define profitability as well. Third, Nestle compared the costs of integrated marketing communications strategies internally and most likely looked at third-party information as well to make sure their launch budget for the ActiCaf ingredient-based PowerBar would also be at a sufficient level to ensure the products' successful launch. Finally and most importantly, the company must have looked at the existing distribution channels and defined a subset of those channel partners, dealers and distributors who were selling to the sports enthusiast segment, and who could feasibly sell additional products...

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Melanie Warner (2004, December). Clif Bar's Solo Climb Gary Erickson walked away from millions to keep his successful energy-bar startup his own. it's no guarantee of success against rivals like Nestle and Kraft, but for Erickson, going it alone is the only way; Business 2.0, 5(11), 150-154.…