Burnside Marketing Research conducted a study for Baker Foods on some designs for a new dry cereal. Three attributes were found to be most influential in determining which cereal had the best taste: ratio of wheat to corn in the cereal flake, type of sweetener (sugar, honey, or artificial), and the presence or absence of flavor bits. Seven children participated in taste tests and provided the following part-worths for the attributes. | |Wheat/ Corn | |Sweetener |Flavor Bits | |Child |Low |High |Sugar |Honey |Artificial |Present |Absent | |1 |15 |35 |30 |40 |25 |15 |9 | |2 |30 |20 |40 |35 |35 |8 …show more content…
Clearly, the Whect/Corn ratio can either be High or Low, but not both, so: [pic] Also, only one of the sweeteners can be used: [pic] Finally, flavor bits can either be present or absent: [pic] Now, what about x1, x2, … ? We can’t just choose x1 = 1 and assume that the children preferred the new cereal. Instead, if we want x1 to be equal to 1 (that is, if we want child 1 to choose the new cereal), it must happen that the utility he derives from the new cereal is
In this piece of marketing course work I am going to explain how to produce a marketing strategy for a new or existing product. I will explain how my strategy is based on the principles of marketing. I aim to use primary and secondary resources to help me to analyse the marketing context. I will then explain how to develop a product that meets my target customer’s needs.
The ready-to-eat (RTE) sector has increased sales and therefore have given the Breakfast cereals market an advantage to have a higher market share of 4.2% in 2013. The emphasis is more to the value and the convenience of cereals rather than the quality. However people are starting to be more heath conscious and are going to the higher nutritional brands which tend to be the well-known ones such as Kellogg 's, Weetabix and Nestle.
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 industry is very adamant on using a differentiation strategy to make one’s brand stand out in the minds of certain people. The companies break down the public into different target markets; and then make products that will be attractive to their target markets. Companies make different brands for young kids, teenagers, adults, and people who are health conscience. Currently, there are 387 different brands of cereal sold in the United States and each family is estimated to purchase 17 different brands per year. (O’Connor, Amy) Companies continue to brainstorm for new product ideas to attract the various market segmentations.
The JW Anderson product range consists of menswear, womenswear and unisex garments and accessories. They currently produce six collections annually - two menswear and four womenswear.
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
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).
A future marketing plan should focus on the product being sold as a family cereal in the morning as there is a growing segment that would relate to this. A report conducted by Ihekweazu (2011) looks into the eating habits of people within the UK. Stating that the sales of breakfast cereals has therefore been mainly driven by consumers demand for a cost effective and convenient breakfast options driven by a desire for a healthy start to the day. It was also found that ‘two thirds of consumers eat breakfast at home every day, rising to 78% of over-55s and 85% of those that are retired.’
What do you think about the most important meal of your day? When you see breakfast cereal you think of something that is healthy and something that will help you stay full until lunch time. Have you every bought cereals based on if it will fill you up or not or based on the words or how they look? Although some cereals are healthy for you some cereal companies use the boxes to detract you from the real meaning of the cereal names. Each cereal brands have been known to use euphemisms and cartoons and exaggerated word meanings to get you to buy their products.
The nutritional information given focuses on calories and fat. For example, the first advertisements states that the cereal contains 0 grams of saturated fat, and the third reads “Fat free, as always”. This appeals to the fat free boom beginning in 1976, wherein Americans vilified fat and sought to avoid it as much as possible (by replacing the fat in products with more sugar). Although much of this marketing is geared towards sports fans, and children in particular, the nutritional information appeals to adults and is geared toward the societal values of the time so that parents will purchase the cereal for their children.
The goal of this report is in designing the survey questionnaire which shall be optimal in determining and to measure the preferences concerning customers in terms of the cereal product from a company.
Reviewing the consumer purchases history through their individual Kroger reward cards and the individual customer payment type could verify this hypothesis. If this hypothesis is proven, Kroger’s should adjust its sale items to include more of a variety of cereals. Offering more cereals that are not sugar filled cereals and are more designed toward older customers give those consumers that purchases that are influenced by their income, lifestyle and life stage a better selection to purchase more cereals. Offering more items in the sale items gives Kroger’s a better chance of influencing their customers to make the decision to purchase more items while still feeling they are getting a good value for their money.
Pick up any adult cereal and it’ll most likely have muted colors, and more elegant font, often reminiscent of cursive. Mascots will be at a minimum if they are used at all, and they will be marketed as having sophisticated flavors such as salted caramel. Look at any children’s cereal, and it is a completely different story. There are often bright colorful characters decorating the boxes, and bright colorful boxes as well. Just glancing down a cereal aisle and your eye will be drawn to the rows of bright red that line the shelves. And the cereals themselves are made to attract children even more. They too are bright, colorful, and full of sugar. Since children are programmed to eat as much calorically dense food as available, a residual evolutionary effect, they will opt less for the plain cereal and more for the fruity and sugary ones. Even the placement of the boxes
The first step is to address the integrity of the product itself. It needs to be top tier from the start. Whole or natural grains, balanced nutrition, and taste are paramount in today’s market. Appealing labeling is important and should appease both young and old. It may be the parents that purchase the cereal but it is the children that influence that purchase. The effect that this dynamic and reciprocal relationship has in this instance is usually a compromise between the parent and child
While I stopped at my local Wal-Mart to pick up a few things I did notice that one of the items my children did like was the Kellogg’s Frosted Mini Wheat’s cereal, and as I looked a little down the isle I saw Wal-Mart’s Version called Great Value Shredded Wheat. As I took a closer look, for the first time in a while I noticed the similarities in terms how the picture was positioned on both boxes. How the look was different yet similar in an odd way. The Wal-Mart version was indeed presented as a version of the same cereal offered by Kellogg’s, but at a lower cost for those cost conscious consumers. They were placed in similar fashion further down the isle, but not to much further. It had its own sections of Great Value cereal products that