breakfast cereal marketing strategy

Of these, the main ones would be the quality of the product and promotion. 1 for a successful business, predicting the demand is what brings brands to industry leadership. In the long-term this objective aims to maximize profits by reducing costs and increasing market share. Market Share Analysis of Top Players, 18.1.1.3. 9 million people) stating to be concerned about environmental problems (Australian Bureau of Statistics, 2004). It is responsible for selling the product. The cons of cost-based and target profit pricing are that they are very productive and profit-oriented and ignore the value that needs to be provided to the customer. 16261 Words ; 66 Pages; Powerful Essays . Growing preference for ready-to-eat and easy breakfast solutions among individuals is driving demand for breakfast cereals. Adopt efficient distribution channels to avoid stock outs and over shelving extremes. The product awareness will be increased via multiple channels, both with above the line and below the line sales promotions. Traditional methods include telephone selling, mail order or door-to-door selling. Sales of breakfast cereals grew at a 3.9% CAGR between 2017 to 2021. The cereal is targeted towards the South West tourist region. [350 Pages Report] The global breakfast cereal market is expected to reach a market valuation of US4 42.3 Bn by the end of 2022, with demand growing at a CAGR of 4.4% over the forecast period. Huskys needs to do this by creating an attractive market offering based on the marketing mix to attract more customers. Australian Demographic Statistics. Froot Loops is one of the fastest-rising cereal brands in the world, and it was launched in the Indian market supported by strong consumer insights, includingchildren. A company may choose price stabilization, thus avoiding price wars and maintaining a moderate profit level. Why is the Consumption of Breakfast Cereal Increasing in Germany? Huskys would adopt value-based pricing as well. Marketing Strategies - Breakfast Cereals in Australia. Cereal marketing is the promotional strategy used by cereal companies to sell their products to consumers. Value-added pricing will be used as well as part of special promotional endeavors in collaboration with other products in the future, as a free cereal bowl with a cereal pack. As for the local rural population, the classes applicable would be between the middle and lower upper class. Product differentiation will be considered a strategic competitive advantage for Healthy Co. Pty Ltd as the Australian market if a mature one in terms of general breakfast cereals, but not on the healthy products niche. Salt has been linked to high blood pressure, which can lead to heart diseases and stroke. If you continue, we will assume that you agree to our. Better Essays . Therefore, it is the entire buying and using experience that creates brand recognition. A product is a combination of goods and services that a company offers to a large market. "Breakfast cereal marketing plan" Essays and Research Papers. It invented a brand, using the Quaker Oats' "Man in Quaker Garb."As a result, the Quaker man was as a symbol of plain honesty and reliability. Dont Adopt efficient distribution channels to avoid stock-outs and over-shelving extremes. 1. However, the designing will consider matching these lively colours with the usual colour set displayed on the rest of the products. Retrieved from https://graduateway.com/marketing-strategies-breakfast-cereals-in-australia/, Marketing of Australia by its Destination Marketing Organisation (DMO), Tourism Australia Analysis, International Marketing: Entry and Marketing Mix Strategies Analysis, Persuasive Essay on Why You Should Eat Breakfast. Developing Footprint 17.3.2. The cereal is expected to contain an adequate supply of proteins, carbohydrates, energy, minerals and vitamins per bowl Health-Break . Email. The integration of all promotional tools is meant to maximize impact on consumer mind and minimize costs. . BusinessEssay. Global Market Analysis 2017-2021 and Forecast 2022-2032, By Sales Channel, 7.2. People from all over the world often visit the area during their vacations. Current and Future Market Size Value (US$ Bn) & Volume (MT) Analysis and Forecast By Nature, 2022-2032, 5.4. submit it as your own as it will be considered plagiarism. It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Competition, Pricing. Promotion-related decisions refer to: promotional strategy (e. g. push or pull), advertising, sales promotions, sales force & personal selling, PR & publicity and marketing communications budget (NetMba. Current profit maximization. Historical Market Size Value (US$ Bn) & Volume (MT) Analysis, 2017-2021, 4.2. Other methods can be by air or sea or electronically. If a product is priced too low, profits can be compromised and the product can be perceived as invaluable. [350 Pages Report] The global breakfast cereal market is expected to reach a market valuation of US4 42.3 Bn by the end of 2022, with demand growing at a CAGR of 4.4% over the forecast period. Skimming prices strategy involves adopting a relatively high price for a product at first and a lowering of the same price over time, thus allowing the company to recover its sunk costs faster (Wikipedia, 2009). At EMBA PRO, we provide corporate level professional Marketing Mix and Marketing Strategy solutions.Ready-to-Eat Breakfast Cereal Industry: Quaker Oats case study is a Harvard Business School (HBR) case study written by Kenneth Corts, Amy L. Sandler. Healthy Co. Pty Ltd is a food processing organisation located in Queensland, Australia. Portfolio 17.3.1.4. Business Strategy 17.3.1.5. (climate of Australia) In this case, it is the Australian South West. By making customers loyal to the brand, Huskys would ensure that the products will be bought and the customers will exhibit dedication towards the cereal. The location is ideal because it is close to the cereals grain-based raw materials and local fruit suppliers. The breakfast cereal market is anticipated to reach a valuation of US$ 65.1 Bn by 2032 end. High Demand for Fortified Cereals in Germany Will Boost Sales. Market Size Value (US$ Bn) & Volume (MT) Forecast By Market Taxonomy, 2022-2032, 14. The earlier you get in, the lower the competition. Current and Future Market Size Value (US$ Bn) & Volume (MT) Analysis and Forecast By Sales Channel, 2022-2032, 7.4. Nutri Mix is recommended for people with weight problems, as well as people with healthy eating habits. For example, Americans love fruity and sweet cereal, especially when theyre on vacation (vacation is a vacation in every sense; even from boring routine food). Absolute $ Opportunity Analysis By Sales Channel, 2022-2032, 8. The breakfast cereal product will be launched in Western Australia, more specifically Queensland, third state in the country as size of the population with 4,35 million inhabitants (Queensland Government, 2009). Profitability by Market Segments (Product/Age /Sales Channel/Region), 18.1.12.3. 'Nutri Mix' breakfast cereal is the product developed by the company for this market and it's focused on nutrition and healthy life choices. December 8, 2022. https://business-essay.com/marketing-strategy-for-huskys-breakfast-cereal/. Also, the company will consider the environmental implications and design a package that is easily recyclable, but in the same time it properly preserves the content, the feature of environmentally-friendly being almost a mandatory requisite in a country in which 62% of adults (8. As far as IMC budgeting is concerned, Huskys will adopt a Task Method approach. Generally, penetration pricing is used when entering a new market or attempting to increase a relatively small market share. Tailored content can include videos . They vary in almost all segmentation variables, from age to lifestyle and attitude. Brand recognition is one of the objectives as Husky wants to gain market share. Sales of Ready-to-Eat Breakfast Cereals to Remain High. Historical Market Size Value (US$ Bn) & Volume (MT) Trend Analysis By Market Taxonomy, 2017-2021, 15.2. Road transport is the simplest one in which a logistics department or firm transports the goods to distributors, wholesalers and retailers. Survival. The product under consideration is Huskys breakfast cereal. Profitability by Market Segments (Product/Age /Sales Channel/Region), 18.1.7.3. However, this will be discussed further in the promotions section of the 4Ps. EMBA Pro Marketing Strategy Approach for Ready-to-Eat Breakfast Cereal Industry: Quaker Oats . Historical Market Size Value (US$ Bn) & Volume (MT) Trend Analysis By Market Taxonomy, 2017-2021, 9.2. The whole point is to get the product to the customer as efficiently as possible to incur minimum costs and earning a higher profit by selling the product to the customer. The package for all consumers will display the nutritional content according to the latest food regulations. Target profit pricing involves setting a target level of profit first and then pricing the product accordingly to achieve the target. These two factors count significantly in addition to the price when it comes to customers buying breakfast cereal. om, 2009). Get original paper in 3 hours and nail the task. A promotion strategy is what markets and sells the product to the customers. To create a brand, Huskys would need to offer its customers a whole breakfast cereal experience rather than just a product. Between 1985 and 1995 the child obesity grey almost 50% in both genders (Parliament of Australia, 2006). Y-o-Y Growth Trend Analysis By Product Type, 2017-2021, 6.5. This is an objective that might have interest for an organization that has other revenue sources. (Philip Kotler, 2008). It is the main outlet for all cereal brands. Price definitely plays a part and will be the basis of the competition. All the bars will have the packaging in lively colours as they stand for energy, which is associated with these colours. Graduateway.com is owned and operated by Radioplus Experts Ltd It gives the product a certain personality and affects the way a customer perceives the product and the brand name attached to it. MEA Market Analysis 2017-2021 and Forecast 2022-2032, By Country, 15.1. The breakfast cereal market will reach nearly US$ 42.3 Bn by 2022. Get a complete personalized report with a scorecard of target partners. (PESTEL analysis). The content of sugars and salt will be carefully control, as these represent the main concern in children nutrition. 'The INR 7 billion breakfast cereal market in India had attracted several private players and FMCG giants like PepsiCo and Britannia with their respective brands like oats cereal under the brand names, 'Horlicks' and 'Britannia Healthy Start'. 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Therefore the pricing strategy makes sure that the product is priced correctly and according to the products life cycle stage which changes the pricing strategy. Europe Market Analysis 2017-2021 and Forecast 2022-2032, By Country, 11.1. Retrieved from https://business-essay.com/marketing-strategy-for-huskys-breakfast-cereal/, BusinessEssay. The results of a consumer survey study indicated that consumers had a negative perception towards network marketing, while holding a low positive view of direct selling (Kustin & Jones, 1995). Profitability by Market Segments (Product/Age /Sales Channel/Region), 18.1.2.3. (2004). According to NetMba. Packaging plays a big role in cereal products. Profitability by Market Segments (Product/Age /Sales Channel/Region), 18.1.3.3. Yet, Kellogg's was the market leader with around 60% market share in the breakfast cereal market. Which significant steps can you take to stay ahead of competitors? Each media type has its advantages and disadvantages and marketers should be aware of those when designing their marketing campaigns. For the tourists, it needs to be of good quality, priced economically but higher compared to the local version, and marketed effectively to attract customers through advertising and promotion. cite it correctly. IMC is an integrated marketing communication and involves several modes of promotion and integrating them to create an effective communication plan to sell and promote a product. The main types of pricing are value-based pricing, cost-based pricing, and target profit pricing. A push strategy is when the information and promotion are pushed onto the customer regardless of whether the customer requires it or not. This will help you in targeting potential customers with ease. Age is an important demographic variable for Nutri Mix as the product will target certain segments that are more likely to consume healthy food products. Status quo. The global breakfast cereals market size was valued at $90.9 billion in 2020, and is projected to reach $180.3 billion by 2030, registering a CAGR of 7.1% from 2021 to 2030. Who are the key players operating in the market? The other is value-added pricing in which a higher price is charged but value-adding features are attached to the product. Special deals and promotions can be developed to partner with local tourist resorts and hotels that generate mutual benefit. Regular Discounts and Offers According to About. Current Market Size Value (US$ Bn) & Volume (MT) Analysis and Forecast By Region, 2022-2032, 8.4. This essay was written by a fellow student. Geographic segmentation consists of dividing customers into groups based on variables such as region of the country to or rural/urban area in which they are located. Some cereals also have unique shapes or . 8 December. The best breakfast cereals marketing strategies. However, in the beginning this variable will not be considered relevant for the market segmentation. Kellogg's products has been using as breakfast for about 100 of years and is categorized into six market segment segments in various names such as Tasty Start, Simply wholesome, All Bran, Special K, Frostries, Raisin wheat etc. Upon trying out the product, Huskys job is to make sure that the customer likes and enjoys the taste, quality and value in order to make them switch over to the new product. How can you develop stable and lucrative revenue streams? Without it, a product is useless. On the other hand, most traditional Asians prefer to rise and grain-based products. The marketing mix Product This strategy pays respect to the characteristics of the final product, namely the extent to which it matches the customer requirements, the quality, the brand name, functionality, styling, safety, packaging, warranty, reparations & support and accessories & services (NetMba. Breakfast Cereal Market by Nature, Product Type, Sales Channel & Region - Forecast 2022 - 2032. According to FMI, ready-to-eat breakfast cereals are estimated to dominate the global market in 2022. Market Size Value (US$ Bn) & Volume (MT) Forecast By Market Taxonomy, 2022-2032, 11. In this case, the benefits are related to the health and well being of the consumer. Considering that healthy products are prices slightly higher than normal food products in most existing markets, Nutri Mix will also fall in this category and be prices above the normal breakfast cereal in supermarkets, but at the same level with competing products on the health food niche. "Marketing Strategy for Huskys Breakfast Cereal." Maximize profit margin. That will allow Huskys to comprehensively plan and assess all costs and expenditures. Market Attractiveness Analysis By Region, 9. BusinessEssay. In the 1990s, direct selling was increasing a lot in Australia as was all over the world. The sales promotions will cover each product line at the time to give customers a change of trying each product line with a buying incentive before becoming used to them. Market Size Value (US$ Bn) & Volume (MT) Forecast By Market Taxonomy, 2022-2032, 13. Marketing Strategies - Breakfast Cereals in Australia. These include variety, quality, features, packaging, etc. It is made from 100% wholegrain rice imported from China DongBei where produces the top rice in the world. (Macro environment). The product wont have a line of cereals for specific medical problems (e. g. gluten free), so there wont be any highly priced product in the initial phase. Which are the positive and negative factors impacting the Breakfast Cereal Market. Quaker Oats The American Cereal Company (Quaker Oats) created an oatmeal cereal in 1877. Value-based pricing consists of two types; good value pricing that offers the right combination of quality at a fair price. Health-Break Breakfast Cereal Mix will be made using whole grains and will be low in sugar and salts. A distributor is a company that markets or sells merchandise, especially a wholesaler. The breakfast cereal product will be launched in Western Australia, more specifically Queensland, third state in the country as size of the population with 4,35 million inhabitants (Queensland Government, 2009). Domestic tourists can be from the working class as well. Historical Market Size Value (US$ Bn) & Volume (MT) Trend Analysis By Market Taxonomy, 2017-2021, 12.2. Consumption of breakfast cereal bars and biscuits is being driven by growing demand for on-the-go meal options. com (a)). Your personal details are safe with us. Thus, the uffed rice and corn cereals, which are mostly for children will have a package displaying a licensed character or a movie theme and containing either a cartoon drawing (e. g. Tony the tiger) and/or an activity or promotion directed to children (e. g. collect stickers). Introduction Healthy Co. Pty Ltd is a food processing organisation located in Queensland Australia. We use cookies to give you the best experience possible. For the local cereal product, a toned-down version of good value pricing will be used; low profile packaging and smaller contents at a lower price. The breakfast cereal market is anticipated to be worth US$ 65.1 Bn by 2032, growing at a CAGR of 4.4%. Historical Market Size Value (US$ Bn) & Volume (MT) Analysis By Nature, 2017-2021, 5.3. Marketing objectives The marketing objectives for 'Nutri Mix' refer to product awareness, target market and market share. Breakfast Cereal Market size was valued at US$ 47.32 Bn in 2021 and the total revenue is expected to grow at 4. . "Marketing Strategy for Huskys Breakfast Cereal." Marketing objectives The marketing objectives for Nutri Mix refer to product awareness, target market and market share. It is also the company that sells to the retailers. Place strategy refers to the activity of developing an efficient and effective way of storing and handling goods and products, distributing them, and getting them to the customers in the market. Behavioural segmentation consists of dividing customers into groups based on the way they respond to, use or posses knowledge regarding a product. The PR will focus on the health benefits of consuming Nutri Mix and the environment aspects. Retrieved from: http://www.aph.gov.au/library/INTGUIDE/sp/obesity.htm Queensland Government. The target market refers to the senior consumers and children. BusinessEssay. Other methods will be through public relations and direct marketing. The segmentation variables under consideration are explained below (Philip Kotler, 2008). Huskys would need to gain an edge by offering the tourist market a local taste with energy and excitement, and offer the local market good value and nutrition at an affordable price (Philip Kotler, 2008). There are can several distribution channels as well. Advertising is a non-personal form of promotion that is delivered through selected media outlets that, under most circumstances, require the marketer to pay for message placement (KnowThis. The cereal has to be nutritious and healthy. The local segment on the other hand is much more homogenous. The tourists would appreciate a taste of the local heritage and food culture based on the idea of a vacation which is to experience something new and at the same time taste well and be nutritious. The company also wishes to reach a market share of 5% from the breakfast cereal segment within the first 6 months of launching the product on the Australian market. For Huskys, retailers play an important role because that is the main place where customers purchase cereals. The tourist market would differ behaviorally just as much as they would culturally or demographically. Cereal manufacturers are launching new flavors and textures, embracing non-traditional raw ingredients, and increasing their engagement in ethical andsustainable practices. Costs would not be great and the model is simple. Millennial consumers are seeking healthy food options and are concerned about the possible effects of chemicals, GMOs,hormones, and antibiotics, and artificial ingredients in processed food products. List of Existing and Potential Buyers, 3.6.2. For the rural segment, it has to be affordable and accessible in order to be used regularly (Philip Kotler, 2008). Social class is divided into lower lowers, lower upper, upper-lower, working-class, middle class, upper-middle, lower upper and upper uppers.