Breakfast Cereals in Uk 07

PEST is creation for Political, Economic, Social and Technological. This investigation is utilized how these four external factors influence to business circumstance. Essentially, a PEST investigation helps you decide how execution and exercises are

The PEST analysis helps to explain the critical factors in the organization's external environment. The factors include political, economic, social and technological. For Myer, these forces combine with the internal factors, and other external factors like competition. The Australian consumer goods retail market is worth $121 billion (IBISWorld, 2012) but is heavily fragmented. Myer is the third-largest company in the industry behind David Jones and Harvey Norman, but with $3.158 billion in sales holds just 2.6% market share (Myer 2011 Annual Report). This implies that competition is only one of many factors that can contribute to the company's results. This PEST analysis will help to identify the other major factors.

This report examines the UK market for Breakfast Cereals. The market has grown substantially in the last 5 years with a high demand for quick meals in the morning due to busy lifestyles. This has had an advantage to the sales of the market.

External Environmental Analysis We chose Kellogg’s cereal category because Kellogg’s has over 100 years history and we have14 kinds of breakfast cereal products. Our products sell to 180 countries across the world. Our mission is still to provide you and your family with better breakfasts that lead to better days, and now you eat flake corn is the same way W.K. did back in 1898. It just tastes better that way. Kellogg’s cereal provides a variety of nutrition’s cereals that deliver the benefits of grains, and provide important nutrients like iron, B vitamins, zinc and fibre.

The cereal market is a booming industry. It has been around for over one hundred years and continues to attract millions of customers’ everyday. The market structure of the cereal industry is an Oligopoly. This is because there are four large firms, Kellogg, General Mills, Post, and Quaker Oats, which dominate the industry.

The threat of customers finding substitute products from other manufacturers in the food industry is high. In the ready-to-eat breakfast cereals segment, General Mills’ primary business focus, there are a variety of similar products being

An excellent example of this is a Frosted Mini-Wheats television commercial aired in both 2008 and 2009. Frosted Mini-Wheats is a Kellogg’s-brand frosted wheat cereal. As found on the webpage, the nutritional value states that there are eight layers of whole grains, that are rich in fiber and iron (Mini Wheats Nutritional Info, 2016). Furthermore, during the commercial, the cereal claims that, “A clinical study showed kids who had a filling breakfast of Frosted Mini-Wheats cereal improved their attentiveness by nearly twenty-percent” (Munck, 2010). From this, both parents and children will understand that this wonderful cereal will enhance their ability to memorize things and pay attention. The commercial provided the idea that this specific cereal would be better, and more beneficial than any other cereal they may purchase.

1) The Big Three firms, Kellogg, General Mills, and Philip Morris, formed practically an oligopoly in the RTE cereal market. Their price and cost levels moved in lockstep, following signals sent mostly by the biggest player, Kellogg, while their tactics could be used against outside competition, as suggested in the scenario below. Although RTE cereal is a basic food item and production technology stabilized for about half century, the industry had effective barriers to entry. The competition between incumbents was friendly while most of the inputs came from a perfectly competitive market, agriculture. Major customers, the food stores, were coopted in perpetuating barriers to entry in the form of shelf space “slotting”.

The Kellogg is continuing to innovate a century later, offering cereals that are affordable, convenient to prepare and eat, and tasty. It will also reduce ingredients such as sugar that consumers want less of while increasing fiber, whole grains, vitamins and other nutrients(Kelloggcompany, 2011).

In the RTE cereal industry, there were three large manufacturers, General Mills, Kellogg and Philip Morris that had a strong presence in the market. They were extremely profitable with pricing power and dominated the whole market with great market share; all this made it unattractive

Growing up during the time when I was considered a "latch key kid", I know how easy it was to persuade guilty parents to buy cereals that I liked. During my childhood days, typically after school, commercials would run in between watching cartoons, advertising happy families at the breakfast table eating cereal that had colorful characters and promising a toy in each box. However, General Mills began advertising that their cereal was made from "whole grain", therefore implying that a healthier cereal option, which often were not. "Those messages are often contain misleading messages appealing to the benefits of eating high-sugar cereals and leading to believe high-sugar cereals are healthy choices" (Song, Halvorsen & Harley, 2014, p. 575). The rabbit on the box of Trixx, the bird on the Cocoa Puffs (that we went coocoo for), the leprachon on the lucky charms, the Captain on Captain Crunch, etc. all served as cereal from memories.

Weakness- A major foreseeable weakness OMG Active Cereal may encounter is that the cereal could be perceived by the public as just another “nutritious cereal”. There are many kinds of nutritious conscious cereals in today’s market produced by several different companies. Each year, a few more of these cereals are created and placed on each and every grocer’s shelves. A weakness for our newly released cereal could be that breakfast-eating consumers will group OMG Active Cereal along with the average nourishing cereals before eating or becoming cognizant of our cereal’s fantastic features other than especially served for the teenagers.

Macro environment is crucial to the development of a company. All the external factors can have huge positive or negative influences on Travis Perkins plc, therefore a better understanding of the environment of the company is of supreme significance (Peng & Nunes, 2007). Among all the analysis tools, PEST analysis is one of the most effective tools to analyze the external environment of a company (Riley, 2012). This part will demonstrate PESTLE analysis of Travis Perkins plc below. The result of PESTLE analysis can be demonstrated in the following table 1.

Kellogg’s has over 100 years history and we have14 kinds of breakfast cereal products. Our products sell to 180 countries across the world. Our mission is still to provide you and your family with better breakfasts that lead to better days, and now you eat flake corn is the same way W.K. did back in 1898. It just tastes better that way.

In PEST analysis, we will look into what will be affect by the business environment. It includes political environment, economical environment, social environment and technological environment.