Section A

Brief Description

Grenade Ltd. is a food supplement company founded in 2009 by couple Alan and Juliet Barratt.
The company specializes in nutritional supplements along with sports gear and accessories.
(Grenade.com, 2018)

Grenade launched into the supplement market with their weight management capsules which
instantly became a hit because of their appetite suppressing qualities and fairly distinctive
packaging followed by ’Carb Killa’ protein bar (Clawson, 2018). Since then the company has
launched a number of products ranging from supplements for a healthy lifestyle to endurance
enhancers, with all of their products having a distinctive war equipment themed packaging
(Grenade.com, 2018). All of the products by Grenade are produced from guidance and
feedback of Grenade athletes-athletes who are in partnership with Grenade for product
development and testing.
According to Alan Barratt, grenade is targeted to health-conscious people hoping to achieve a
healthy lifestyle rather than bodybuilders or weightlifters (Denham, 2018). Grenade aims to
increase their reach to ‘everyday consumers’ by selling their products at local convenience
stores like Tesco, M&S etc apart from regular supplement retailers (Clawson, 2018).
In 2017, equity firm Lion Capital LLP bought Grenade valued at £72 million. The company
has seen a growth of 48 % since then (Jones, 2018). Having entered into a much larger beverage
and food sector Grenade has a footprint in more them 80 countries.

This report emphasizes on the current market strategies used by Grenade to a gain customer
base in the wide sports nutrition market, as well as suggestions on how the company can make
changes in the current strategies and potentially improve.
 SWOT Analysis

STRENGTH WEAKNESSES

• Widely popular due to innovative packaging and • Low Production Capability (Only one
taglines. production facility)
• Easily available to consumers due to links with • Most products under the same category (mostly
convenience stores protein-based variety)
• High Sales Growth Rate • Less variety of flavours
• Sufficient Funds available for innovation due to tie • Target Market is Small (Only people who work
up with Lion Capital out regularly)
• Global Presence due to international distributor • Senior Management is small (only 2 people
channel in 80 countries. /add synonym of small)
• Have a strong brand image (Rugged and youthful • No company-owned outlets
image)

OPPORTUNITIES THREATS

• Untouched segments in the Market (Supplements • Better tasting alternatives available from other
for the older generation) brands
• Tie up with e-commerce platforms (Amazon, eBay) • Competition from International Brands
• Healthier Lifestyle trends entering the UK
• The Organic food sector is becoming popular. • Increased Government Regulations in the
• Higher demand for ‘On the Go’ food. Supplement Industry.
• Association with Fitness Icons (Athletes, • Vegan trend
Bodybuilders as Brand Ambassadors)
Expanded SWOT

STRENGTH/OPPORTUNITIES
• As the company has sufficient funds available, it should invest in Research and

development in the organic food sector. The organic food sector is gaining popularity

since organic products have high nutritional value.

• Since the company has a strong brand image and is easily available in convenience

stores, it should launch social media campaigns linked with convenience stores.

• The company has a rugged and youthful image which can be used to attract younger

demographics.

WEAKNESSES/THREATS
• The company has a small senior management team. The company should recruit and

appoint senior strategist who has the experience to deal with international competitions.

Since the competition from international brands is increasing.

• The company has less variety of flavours, investment in developing new flavours will

be beneficial to compete with better tasting alternatives available from other brands.

• With changing food preferences, more people are moving towards a vegetarian diet.

Hence the development of a vegan product line is required.

WEAKNESSES/OPPORTUNITIES
• Since the company’s target market is small, the company should develop products

directed towards a wider demographics.

• With more people towards online shopping, grenade has the opportunity to set up

virtual stores on e-commerce websites.

SEGMENTATION TABLE
Section B
TARGETING STRATEGY

As grenade ventured into the supplement market, the company had a mission of introducing
high quality and premium products catering to a high-income customer base. Grenade wants
their customers Nearly all of the products sold by Grenade are advertised as high standard
and produced in partnership with world-class athletes.
Demographic Profile
It is quite evident from recent fitness trends that nutrition supplements have a huge market
for nearly all the demographics. Grenade customers are single male or female, middle or
upper middle-class people. They are college going or working employees between the age of
18-30.

Behavioural Profile
They use the products frequently and purchase in bulk boxes. They usually buy online and
sometimes in-Shop. The target market is fairly active on social media and other online
platforms
Psychographic Profile
Grenade appears to target the niche market that is involved in Weight Loss and
Bodybuilding considering which the company uses a positioning strategy that strongly states
their product descriptions, benefits and usage charts of various products accordingly.

For example, the whey protein supplement by Grenade(Hydra 6) is strongly advertised for
people who want to gain muscle and the protein bars are advertised for weight watchers

• Grenade is having a Multi-Segment Targeting Approach strategy where they are

selling various products for different segments of people.

• Grenade categorizes their product under these categories (Grenade.com, 2018):

1) Active Lifestyle (For Healthier Lifestyle)

2) Fit (For Gym, endurance, and Training)

• The Product listing from Grenade Mainly falls into two segments, ‘Weight Watchers’

and ‘Bodybuilders’.
 This table shows various products that fall under the two segments

Weight Watchers Bodybuilders

• Hydra 6 (Whey Protein)

• Carb Killa Range (Protein Bar, Protein Shake,
• BCAA Defend (Recovery Supplement)
Spread, Killa Coffee, Brownie)
• .50 Calibre (Pre-Workout)
• Thermo Detonator (Weight Loss Capsules)

• Black Ops (Appetite Suppressants)

• Reload Flap Jack (Nutrition low fat Bar)

Advertisements

WEIGHT WATCHERS

Carb Killa Range

One of the most selling product range by Grenade. The company has launched various
products under this range with all of the products consisting of low sugar(nearly 2g) and high
protein(more than 20g). The product range consists of:
-Carb Killa Bar
-Carb Killa Shake
-Carb Killa Spread
-Carb Killa Brownie
-Carb Killa Coffee

Thermo Detonator(Weight Loss Capsules)

 • One of the first product launched by Grenade in 2009.
• Weight Management Capsules(Appetite Suppressants)
• Used to control calorie intake.
• Pre Cardio Supplement.

BODYBUILDERS

Hydra 6(Whey Protein)

• Isolate Whey protein(24-25gms)

• Fast Absorbing(Post and Pre workout)
• Designed for ‘Intense Training’(grenade.com)
• Targeted toward people with high protein intake(Bodybuilders)

Defend BCAA(Branch Chain Amino Acid)

• Post Workout Recovery
• Contains Amino Acid with zero sugar for Muscle Growth
• Required for muscle growth and repair
• Provides Hydration during the workout
Risks And Competitions

In the supplement industry, a lot of companies try to sell products that are similar and have
the same benefits. It is quite important for supplements companies to consider the
competitions in the industry while setting up a target market. Over the time Grenade has
efficiently created an image of a premium supplement brand with the customers. The
positioning strategy used by the company appears to be quiet effective with the target market
as the company has seen a substantial growth over the years.

Recommendations

Grenade is doing a good job in targeting weight watchers and bodybuilders. In their
descriptions and advertisements, the company is pretty specific about what are they offering
and for what segment of people.
• Although, the supplement market is growing and more people are becoming health
conscious. More than 80% of millennials choose to exercise daily(Nielson,5). The
need for convenient snacks which individuals with normal physical activity can have
‘on the go’ is increasing rapidly. Also, due to the busy lifestyle, the demand for ready
to eat food is increasing. Firstly, Grenade should invest in developing this product
segment of convenient food.

• Secondly, The Regular Fitness segment is growing with more people turning to a
healthy diet and a gym lifestyle, where their main goal is to maintain a fit body an
nothing else. Grenade should target the ‘Regular Fitness’ segment by targeting new
and existing products towards them. For example, the ‘Carb Killa’ bar is also suited
for people with normal physical activity, but it is advertised for only weight
watchers. If grenade expands its approach to people of other demographics apart from
their target market these products can also perform well.

• Thirdly, Grenade should start targeting older demographics of Age 40 and above,
these age groups have requirement of Health Supplement tablets and
multivitamins. This age group generally have more disposable money to invest in
their health and fitness. Grenade can easily enter this market with their already
established brand profile known for its high-quality products.
PRICING STRATEGY

Pricing being the biggest revenue generating element in the organizations, it needs to be
planned critically. Grenade being perceived as a high-quality brand uses a mix of pricing
strategies across their selling platforms. Compared to competitors, Grenade is a fairly new
company in the UK supplement industry. The Products offered by Grenade are ‘Current
Products' in an already existing market. The company uses a combination of pricing
strategies:

• Marketing Skimming Strategy

• Product Bundle Pricing Strategy
• Location Based Pricing

Marketing Skimming Strategy

Market skimming simply means selling a significantly higher price than other competitors.
Grenade uses skimming strategy to distinguish themselves from the regular supplement
brands. For example, companies like Rolls Royce and Apple. A higher priced product
generally give an indication of good quality. Moreover, it gives a mental satisfaction of
owning the best in the market.
Nearly all the products by Grenade are priced at higher side compared to the competitors.
Considering an example of the Protein Bar and comparing it with bars from other brands. It
can be observed that all of the products have the same quantity of protein and other ingredients
but, the price difference between Grenade’s ‘Carb Killa’ bar and other protein bar is quite
significant.
 Brand Name Grenade My Protein Maxi Muscle Optimum
Nutrition

Product Carb Killa Carb Crusher Promax Lean Whipped Bite

Protein 20g 20g 21g 19g

Content

Flavours 12 Flavours 6 Flavours 10 Flavours 10 Flavours

Quantity Per 12 12 12 12
Box

Price Per Box 30£ 19.50£ 25£ 14£

Price per Bar 2.2£ 1.6£ 2£ 1.5£

Product Bundle Pricing Strategy

Selling of product bundles has been an already existing strategy in the supplement industry.
The main intent is to sell bulk products to gain more profit on the total order value rather
than a single product. Also, for consumers product bundles have a benefit where they are
used throughout a workout program. In products such as Nutrition Bar’s, Shakes And
Brownie’s, Grenade is selling product bundles at a lower price compared to a single unit. For
example, a box of twelve bars is priced at 30£ compared to a single unit priced at 2.2£.

Location Based Pricing

Grenade uses a location-based pricing strategy with some of their products(for example,
protein bar, shakes). The products which are displayed at vending machines and gym café
where they are consumed at the location and the purchase quantity is not more than 1-2 units,
the prices are higher. Whereas, the products displayed at convenience stores and online
website where the products are consumed later, have normal or discounted rates.
RECOMMENDATIONS

• The skimming and bundling pricing strategy used by grenade is justified. Grenade's

pricing strategy includes setting the price high at the time of new product launch. After

gaining popularity in the market they seem to reduce the price. Grenade advertises their

products as premium and high quality in nearly all of their customer interaction

platforms. This type of strategy is proved to be beneficial for many organizations in

creating an image of a premium brand. Provided, in future they drop down the prices.

• The product bundle strategy by Grenade is being applied to only two of their

products. Where similar products are being stacked together and the price difference

between the single unit and the box is not that significant. Grenade should include

different combination of products in their bundles. For example, Stacking a popular

product with a non-popular product. Also, the prices of these stacks are seen to be

excessive and need to be reduced to gain the benefits.

• As grenade products are sold at a premium price, the younger demographics are

generally unable to use Grenade products. Grenade should start promotional campaigns

where the company provides discount coupons and promotional offers for students. The

company can introduce a loyalty program under which students can earn points and

avail the discounts.

BRANDING STRATEGY

Brand Personality
Grenade is perceived as a healthy supplement brand with a tough and rugged personality. The
company uses taglines such as" Declare war on fat”, and “You got this” to create a robust
image for their products. These type of bold brand advertisement and descriptions generates a
sense of power and encourages the customer to achieve their fitness goals.

Emotional Branding
Emotional branding concept is useful in creating a deep emotional connection between the
customer and the brand. In emotional branding, the needs of the customers are kept ahead while
product designing.
Grenade was launched with an aim to provide fitness seekers with suitable products which are
high in quality and provide effective results, generating customers satisfaction and create trust
between the customers and the brand. Grenade has created a loyal customer base by branding
the products keeping in the mind the personalities of their target customers. Hence, the
customers feel a connect with their products. They value their customers and create products
that have a consistent quality and effect.
Interaction Platforms

Grenade uses a number of customer interaction platforms to maintain a relationship with their
customers and get valuable feedback. Awareness of the customer requirements and latest
market trends is extremely important for a brand to grow and provide customer-oriented
services.

• Online Platforms: Grenade uses its official website along with E-commerce platforms

like Amazon, eBay to showcase their products. Customers can provide their reviews as

well as make purchase decisions based on the reviews on these platforms.

• Events: The brand quiet often sponsors health and fitness events such as Marathons,

Bodybuilding competitions and health exhibitions. They set up stalls and counters at

various shows providing product samples and promotional deals.

• Convenience Stores: Grenade has product displays at various convenience stores apart

from the conventional supplement stores. Recently in August, grenade participated in

the Tesco Incubator Programme, where Tesco ties up with emerging brands that are

showing signs of success to offer special deals (Cotton,2018).

• Blogs and Articles: Apart from advertising and promoting their products, Grenade often

publishes health-related articles and blogs on various fitness-related websites and

magazines. They also provide various diet charts and recipes in some of their posts

Positioning

Grenade faces competition with other supplements brands such as MyProtein, Maximuscle,
Isopure, and Optimum Nutrition. All of these brands provide nutritional supplements for fitness
enthusiasts. Grenade positions itself in offering high quality, effective and easy to use products.
Grenade uses a positioning strategy that involves the production of different products in an
already existing supplement category to appeal the target market. Another important factor
under this strategy is the collaboration with "Informed-Sport" quality assurance program- a
program that tests products for banned substances (Grenade.com, 2018).

The perceptual map shows Grenade product positioning in terms of Price and Quality. The
brand is known for its high-quality effective products. However, Grenade is also perceived as
an expensive brand. Competitors like My protein is more affordable but have low nutritional
value.
On the other hand, Quest provides good quality products along with affordable pricing but
lacks availability in the market. Maxi muscle brand is comparable with grenade in terms of
Premium Pricing and High Quality.

The Perceptual map shows Grenade compared with its nearest Competitors. It also helps
understand the brand perception amongst the target market.
RECOMMENDATIONS

Grenade has been successful in creating a Rugged brand personality with their effective
positioning in the market. The company also uses unique and attractive product packaging
which has become quite popular. However, the brand has significant weakness in their
branding strategy which needs to be addressed.

• Firstly, Grenade only advertises their products on their online Social platforms and
website blogs. Apart from these two platforms, the company is not seen advertising
their products anywhere else. Online advertising platforms are successful in advertising
to targeted segments but have a very limited reach. Grenade should start investing in
mass media advertising such as Tv commercials and billboard advertising. These
platforms have a wider audience reach which helps in advertising the brand name.
• Start a merchandising campaign which includes sports apparel and supplement
accessories. With all of the merchandise bearing strong and bold taglines with the
company logo. This will generate a sense of attachment with the brand amongst the
customers.
• Grenade should involve in partnership with influencers and bloggers in the fitness
industry to create brand awareness. As they have an audience which is involved in
fitness.
• With the rugged brand image Grenade has been able to attract a majority of male
customers. Grenade should start a new product line directed towards women with
taglines and colour schemes that appeal to the female customers.
REFERENCES

Clawson, T. (2018). Dropping A Grenade - How To Build An 'Edgy' £37m Revenue Brand
From The Ground Up. [online] Forbes.com. Available at:
https://www.forbes.com/sites/trevorclawson/2018/08/21/dropping-a-grenade-how-to-build-
an-edgy-37m-revenue-brand-from-the-ground-up/#19729cb35c45 [Accessed 15 Dec. 2018].

Cotton, B. (2018). Explosive impact – couple who started with £27 sell business for £72m |
Business Leader News. [online] Business Leader. Available at:
https://www.businessleader.co.uk/meet-the-husband-and-wife-team-making-an-explosive-
impact-in-the-nutrition-market/50028/ [Accessed 15 Dec. 2018].

Denham, K. (2018). Weapon of choice: How nutrition brand Grenade has exploded into the
market. [online] Cityam.com. Available at: http://www.cityam.com/268875/weapon-choice-
nutrition-brand-grenade-has-exploded-into [Accessed 15 Dec. 2018].

Grenade.com. (2018). About Us | Grenade®. [online] Available at:

https://www.grenade.com/uk/about-us [Accessed 15 Dec. 2018].

Grenade.com. (2018). FAQ's | Grenade®. [online] Available at:

https://www.grenade.com/uk/faqs [Accessed 15 Dec. 2018].

Grenade.com. (2018). Protein Bars | Protein Spreads | Protein Shakes | Grenade®. [online]
Available at: https://www.grenade.com/uk/active [Accessed 15 Dec. 2018].’

Jones, T. (2018). Grenade seals second private equity deal. [online] birminghammail.
Available at: https://www.birminghammail.co.uk/news/business/grenade-seals-second-
private-equity-12699240 [Accessed 15 Dec. 2018].