...Who Are They? Nutella Cereal will target children from the ages of 8 to 11 years as users of the cereal by attracting their parents. Although the Nutella cereal is for children, it will be important to focus on their parents as they ultimately make the final purchasing decision. Geographically, the target market will be living in urban areas where they will be exposed to the marketing campaigns and ads in public transit, on billboards and magazines, as well as in store. In terms of price, the Nutella Cereal will cost around the average price of a box of cereal. (Did we figure out an exact price?) Although they will not be price competitive, Nutella Cereal will have an average price which will attract regular cereal buyers. Regular cereal buyers will be able to switch to Nutella Cereal without taking price into much account since the price will be similar to other boxes of cereal. These buyers will be able to decide on purchasing the cereal using other factors such as the taste and quality of the cereal to decide. What Do They Want and Why? The parents in this market segment look for specific factors while making their decision to buy their children ready-to-eat breakfast cereal. Market research shows that Canadian consumers seek convenience, health and wellness, pleasure and value from their food choices. The Nutella Cereal provides convenience for parents since it can easily be made by children for breakfast. Furthermore, the Nutella Cereal strives to provide children...
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...Cereal: The Complete Story ® Let’s make today great™ Quick facts on breakfast cereal. Average calories per serving by breakfast type. Cereal compares favorably to many other traditional choices.1 Children who eat cereal regularly tend to have lower BMIs.*** Studies have shown that the consumption of cereal for breakfast is associated with lower BMI in children, a relationship that holds regardless of the amount of sugar in the cereal.2, 3 Fewer than 4 servings in 14 days 4 to 7 servings in 14 days More than 7 servings in 14 days Percent overweight age 4-6 48% 35% 26% Percent overweight age 7-9 50% 38% 16% Good mornings begin here. The latest science on breakfast cereals. Since introducing Kellogg’s Corn Flakes in 1906, Kellogg has invested decades of science and product development into health and nutrition. From being the first food company to employ our own dietitian, to running our own research labs and closely monitoring independent studies on breakfast, cereal, grains and fiber all around the world, we aim to keep abreast of the ongoing scientific advancements in nutrition and food research and take this into account as we strive to enhance existing cereals and develop new cereals. What we learn constantly shapes our future direction. In the past few years, it’s helped us respond to consumer and market demands to lower sugar and sodium, as well as to increase the fiber and maintain the great taste in many of our cereals. We’re always looking for ways...
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...NESTLÉ NESVITA Cereal Milk Drink By Ma. Cristina Villanueva INTRODUCTION In 1994, NESTLÉ launched the first of its kind instant cereal beverage under the brand NESVITA in the Philippines. This was the first product launched by NESTLÉ under the NESVITA brand name. NESTLÉ NESVITA Cereal Milk Drink truly was a revolutionary product back then since it was harping towards the benefits of convenience and healthy nutrition. Since 1994 until the late 90’s, NESTLÉ NESVITA Cereal Milk Drink was the only instant cereal beverage in the market. The NESVITA brand name has been synonymous already with instant cereal beverage similar to that of Coca-Cola (or Coke) to soft drinks. However in recent years, other manufacturers started to challenge NESVITA Cereal Milk Drink, low-priced brands targeted to different age groups as well as different Socio Economic Class (SEC) of the market. One of the biggest threats of the product, PT Kakao’s Energen, has been gaining a lot of momentum in terms of market share due to its positioning as well as pricing. The product was initially distributed to sari-sari stores, market stalls as well as small groceries in Visayas and Mindanao but is now slowly being introduced to the supermarkets, groceries, conveniences stores as well, channels wherein NESVITA Cereal Milk Drink is currently present1. NESTLÉ recognized the emerging threat of Energen to its NESVITA business but also realized that NESVITA may not be the right brand to challenge Energen...
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...Clamp 10/12/2015 Subject: Cereal Analysis Information gathered from a Kellogg’s Raisin Bran Crunch survey concluded that seventy-two percent of thirty to thirty-five year-old Americans say great taste is the most important factor when choosing a breakfast cereal while the other twenty percent valued nutrition. More data was collected from a cereal aisle analysis conducted at the Meijer grocery store in Mansfield, Ohio on October 4th, 2015 at 7pm and ending at 8pm. The cereal aisle was very long consisting of a handful of different brands ranging from very sugary to very healthy and located on the right side of the store in the middle of all the food aisles. This business memo includes the exchange functions of the different brands of cereals, the competitive environment, the demographics as well as the shopping patterns of customers. To begin with, the exchange functions of the cereals in the Meijer cereal aisle included a common pricing strategy with nothing below two dollars and nothing above five. Their packaging included famous people on the cover along with slim people to target customers that want to be healthy along with famous movie characters on the cover including Star Wars and Minions along with animals and bright colors on the front of the boxes to target small children. The sales that were being promoted included a, “Get a free personalized fitness program” and “Earn up to $200 toward your next vacation” on the front of the cereal boxes. In the promotion strategies...
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...Not So Grrreat! Cereal is the most popular breakfast choice today. However, the cereal aisle is a parent’s worst nightmare of bright colors and cartoon characters floating in a sea of sugar. Cereal boxes are littered with promises of health and nutrition; but these are just empty promises used to trick parents into believing they are feeding their children the right foods. Cereal companies use catchy tunes and slogans to grab the attention of young children. The children then proceed to beg and pester their parents until they get the cereal they want. Most parents strive to feed children nutritional foods but cereal companies have been making it harder and harder. Cereals that are marketed to children have little nutritional value and can lead to poor performance in school; this can be solved by marketing the nutritional cereals to children and parents removing unhealthy cereals from their children’s diets. First, cereals marketed to children have little nutritional value. Cereal companies are required to self-regulate the nutritional value of their products, but this self-regulation only gives the cereal companies the right to fill cereal boxes with whatever they want. In an article by Georgina Gustin in December 2011, Jane Houlihan, vice president for research at the Environmental Working Group, states that cereals don’t belong in your breakfast pantry, they are desserts. Houlihan’s group assessed 84 cereals to make a report focusing on the larger cereal makers, the big four:...
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...Main Cereal Company is a relatively new company that was established in 2007. It is an Australian owned and operated company. The head office and factory are located in Sydney, New South Wales and it is manufactured and distributed from this location. Main Cereal Company offers organic cereals, which consists of Australian grown whole grains, fruits and nuts. Main Cereal Company has developed a new breakfast cereal range called Bran Flakes. The range offers ‘Bran Flakes Original’ (only flakes), ‘Bran Flakes Mixed Fruits’ and ‘Bran Flakes and Nut’. The purpose of this paper is to provide an analysis of the six forces that operate and within the macroenvironment, the six influences are: demographic, economic, natural, technological, cultural, and political (Kotler, Brown, Burton, Deans and Armstrong, 2010). All six forces play a significant role in marketing Main Cereal Company’s new range. Demographic As explained by Kotler, et al. (2010) demographic environment is “the study of human populations in terms of size, density, location, age, sex, race, occupation and other statistics” (p.137). Statistics indicate Australia has lower fertility rates and people are living for longer. This has increased Australia’s median age, evidently resulting in Australian have an ageing population (Australian Bureau of Statistics, 2011). In the year 2007 Australian’s population for people over the age of 60 was sitting at 18%, however by the year 2050 they predict over a quarter of Australian’s...
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...NESTLÉ NESVITA Cereal Milk Drink By Ma. Cristina Villanueva INTRODUCTION In 1994, NESTLÉ launched the first of its kind instant cereal beverage under the brand NESVITA in the Philippines. This was the first product launched by NESTLÉ under the NESVITA brand name. NESTLÉ NESVITA Cereal Milk Drink truly was a revolutionary product back then since it was harping towards the benefits of convenience and healthy nutrition. Since 1994 until the late 90’s, NESTLÉ NESVITA Cereal Milk Drink was the only instant cereal beverage in the market. The NESVITA brand name has been synonymous already with instant cereal beverage similar to that of Coca-Cola (or Coke) to soft drinks. However in recent years, other manufacturers started to challenge NESVITA Cereal Milk Drink, low-priced brands targeted to different age groups as well as different Socio Economic Class (SEC) of the market. One of the biggest threats of the product, PT Kakao’s Energen, has been gaining a lot of momentum in terms of market share due to its positioning as well as pricing. The product was initially distributed to sari-sari stores, market stalls as well as small groceries in Visayas and Mindanao but is now slowly being introduced to the supermarkets, groceries, conveniences stores as well, channels wherein NESVITA Cereal Milk Drink is currently present1. NESTLÉ recognized the emerging threat of Energen to its NESVITA business but also realized that NESVITA may not be the right brand to challenge Energen...
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...Case Analysis Cereal Wa Consumer Behavior (BME-213914-13sp1) April 30, 2013 Dr. Lydia MacKenzie Abstract The cereal market which was highly competitive was decreasing in the 1990s. The sales were dropping increasingly. The sales were flat and not getting any better. According to Fraser, Jill Andresky “with sales basically flat, gross profit margins slipped from 53.2% in 1996 to 52.1% in 1997 and 51.5% in 1998. Earnings per share (EPS) dropped from $1.53 to $1.35 during the same period.” This struggles changes when in 1999 Carlos Gutierrez was appoint as the CEO of Kellogg, a longtime company insider, bringing the company to be the top cereal seller for the first time ever. He accomplished this by aggressively making the largest acquisition in Kellogg’s history when he purchases other companies. According to Fraser, Jill Andresky “the 2001 purchase of Keebler Foods Co., a successful cookie and snack-food manufacturer. This purchase helped push corporate revenues from about $6 billion in 2000 to $8.3 billion in 2002. More important, it broadened the company's universe beyond the highly competitive, flat-growth world of breakfast cereals and provided new avenues through which to expand proven brands while boosting margins and earnings.” Consumer-product Relationship for Three Segments Breakfast Cereal Market Marketers need to understand how kids, teens/young adults and baby boomers see breakfast cereal accommodating into their life style, so marketers need to understand...
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...United Cereal has a very concrete corporate strategy and culture which they call “The UC Way”. The United Cereal Way includes valuing their mottos “listen to the customer”, “spot the trend, make the market”, and “honoring the past while embracing the future”. This company structures their organization to follow these mottos while maintaining a focus to “commitment, diligence, and loyalty”. The UC Way can be identified as a strength of the organization in that they have a strong set of values and a clear commitment to their vision which can help to guide their decision making. Another strength of this organization is the involvement of their brand management system in every aspect of building the brand from production to sales allowing for efficient involvement and communication to build their brands the right way. In addition, United Cereal’s structure of appointing country managers to be responsible for their own market is beneficial in ensuring that the company is efficiently responding to the needs and demands of that nation’s market as well as limiting the cultural differences and making a new market entrance smooth. United Cereal’s European Vice President Lora Brill has structured the organization with new subsidiaries to enter new markets in Europe. Each national subsidiary is led by a country manager who has the authority to decide how to run the business in that country. The country managers are overseen by three regional presidents. This organization has strengths in...
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...Situation Analysis/Target Market Identification Report: Coco Pops Jose Eduardo Arcila Ramon ARJED102 Curtin College December 10, 2010 TABLE OF CONTENTS 1.0 Situation Analysis............................................................................... 3 1.1 Current Marketing Mix....................................................................... 3 1.1.1 Current Product..................................................................... 3 1.1.2 Current Pricing...................................................................... 3 1.1.3 Current Distribution.............................................................. 4 1.1.4 Current Promotion................................................................. 4 1.2 Environmental Scanning.................................................................... 5 1.2.1 Political/Legal Environment...................................................5 1.2.2 Economic Environment...........................................................5 1.2.3 Social/Cultural Environment...................................................5 1.2.4 Technological Environment....................................................6 1.2.5 Natural Environment...............................................................6 1.2.6 Competitive Environment.......................................................7 1.2.7 Demographic Environment....................
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...The UK Breakfast Cereal Market Special K 05/02/2014 MARK1500 Principle of Marketing Table of Content Title Page no. Intro Paragraph 3 Business Overview 3 Commentary on Situational Analysis 4 Product Overview 5 Market Segment 6 2016 Olympic Promotions 7 Appendices 8-9 Intro Paragraph This report has been put together to analyse the strength and weakness of Kellogg’s product Special K. This report will identify the strengths and weakness as well as its internal and external factors that affect its sales using ‘PRESTCOM’ and ‘SWOT’ analysis. We will be looking at the market segments that heavily impact the sales of Special K and ways to leap over those barriers to increase revenue. It will also ascertain future promotional ideas for the 2016 Brazil Olympics and the opportunities it may have for Special K Business Overview Kellogg’s is a company with a rich history; established in 1906 by a Mr W.K. Kellogg they have been making great tasting breakfast ever since. Kellogg’s started selling in the UK stores up and down the country ever since 1922. The Kellogg Company was the first company in the food industry to hire a dietician “Mary Barber started the Kellogg’s Home Economics Department and began defining the different types of food and what roll they played in a proper diet” (Kellogg’s, 2014). Kellogg’s quickly established...
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...headache to most cereal companies due to their health conscious habits or diet fads that completely exclude sugar filled cereals. In addition, most cereal companies are trying to create nostalgia for older consumers by bringing back old cereal flavors or characters. The reason why I chose this specific market segment is because people are becoming efficient and busy in their daily lives, no one has time to sit down and consume cereal like the old days. I believe cereal companies should focus on the wants of their young consumers (ie; cereal bars, kashi infused cereal, etc…) and older adults and try to become more innovative in their marketing and products. 2. In my opinion, I believe PRIZM geoclustering can be helpful in identifying the specific kinds of consumers that are within a 10 mi radius. This approach basically breaks down certain attributes such as affluence, education, income, tastes, and preferences that are more prevalent in that radius. So for example, let’s say if we did geoclustering in New Brunswick, NJ for cereals, I can derive that this population is mostly Hispanics and African Americans mostly living in poverty and Rutgers college student. Knowing this information can be helpful when marketing to low income students and individuals by possibly adding Spanish advertisement on the cereal box or introducing exclusive cereal marketed to the tastes of that crowd at an affordable price. 3. The behavior market segmentation I would use for the cereal market would...
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...say you have developed a new, all natural granola style cereal. You want to see the reaction of a range of people to the product, so you decide to set up focus groups to sample the cereal. In one to two pages, describe how you would carry out a focus group review of the cereal. a. How many people would be included in the focus group? A focus group is used to gain feedback and opinions from potential customers. My focus group will consist of a small group no less than six and no more than twelve participants to conduct a taste testing of the natural granola style cereal. By selecting less than six participants could lead to limited conversation and reactions to the product. Selecting twelve participants for the focus group will have more diversity within the group. Also, by selecting twelve participants account for any participants who decide not to show for the focus group. By having a small focus group, it minimizes the chance of losing important thoughts, ideas and reactions to the cereal of the participants. b. How would they be selected? There are many of methods to select participants for sampling. Participants shouldn’t be randomly selected in this focus group because the group should consist of participants that will provide the best information for the sampling of the cereal. Selecting the participants will be based on the purpose of the focus group which is to sample the natural granola style cereal. Also, participants need to be selected by the type of product...
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...will try to explain the Cantonese foodways, which is also my personal foodways. According to Kiple & Ornelas (2000), “Although emperors and the princes enjoyed the privilege of savoring the very finest dishes, they, like everybody else, could not get along without cooked cereals.” “For in ancient as in modern China, cereals have been assigned the function of nourishing and sustaining life” (Kiple & Ornelas, 2000). I really agree with this statement that cereals play a really huge and important role in Chinese food culture and history. From ancient past to present, Chinese usually have cereal as the basic ingredient in their daily meals. Chinese commonly think that cereals are the essential ingredient to make them alive, and they will have cereals in every daily meal. Chinese usually see the dishes as the supplement for the cereals, so they usually won’t only have dishes without any cereal. There are a variety of cereals, like rice, wheat, millet, and maize. According to Kiple & Ornelas (2000), “Two of them, rice and wheat, are the most highly valued, with millet and maize less appreciated.” “From an agricultural point of view, wheat, various millets, and maize are the typical cereals of the north, whereas rice is characteristic of the regions south of the Yangtze River and of western China” (Kiple & Ornelas, 2000). Therefore, the southern Chinese usually have cooked rice as their daily staple while the northern Chinese have breads, noodles, dumplings,...
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...THE BATTLE FOR THE BREAKFAST CEREAL MARKET, by Richard Lynch 1. INTRODUCTION Corporate strategy is certainly a topic that is exciting and challenging. It makes fundamental decisions about the future directions of organisations. And it has the potential to have a real impact on people's lives. But it isn't the easiest subject to study. There are several reasons for this: *It's a young academic subject when compared to more traditional topics like economics and organisational behaviour. This means that there is a lot that we still don't understand. *It's a complex subject that involves many different aspects of organisations, all of which may be important. This makes it difficult to record and analyse. *And it's a subject that lacks a widely agreed body of accepted knowledge. Different strategists have different opinions on what is important and how strategy should be developed. All these factors make it quite tough. Certainly, some strategists argue that there is a place for strategic analytical frameworks like Professor Michael Porter's Five Forces. But the same strategists also point out the most successful strategies need to be more experimental and creative. For example, they argue that the successful strategy of Dell Personal Computers - selling directly to customers, cutting out the distributor - owed much more to innovation than to traditional strategic analysis. In more general terms and arguably to oversimplify strategy theory, strategic processes need to be both prescriptive...
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