Cereal Analysis

Understanding the purchasing behavior of a specific demographic is one of the most important sets of research data available to marketers. To develop a strategic plan to present your products in a way that produces the most optimal buying behavior, one needs to understand what the target audience avoids as much as what triggers them to spend their money. (Marketing Land, 2014)

Everyday, more than eighty million Americans have some type of cereal for breakfast. Cereal is one of the most popular breakfast foods and some brand is found in almost every home in America (Topher). This vast industry stems from the late 1800s when John Harvey Kellogg and C. W. Post began cereal production in Battle Creek, Michigan (Topher). Today, numerous types and varieties of cereal line the grocery store shelves. However, only a few select companies make every one of those different kinds of cereal.

4. Propose two (2) methods of identifying groups of customers who should receive a discount for a product or service without alienating consumers.

The value chain, Appendix B, in the RTE cereal industry consists of branded manufactures and private labels that receive their raw materials from suppliers and then distribute their product to food stores, drug stores, and mass merchandisers where the end consumer can eventually purchase the cereal product. Private labels rely on wholesalers and third-party distributors to get their product on the store shelves where the end consumer can purchase these items.

Consider the last purchase you made in these categories: personal electronics, clothing, and vacation destination. To what extent was your purchase decision influenced by decision-making complexity, individual influences, social influences, and situational influences? What specific issues were the most influential in making the decision? How could a marketer have swayed your decision in each case?

This marketing strategy will venture in to a previously unexploited market segment by refreshing an existing product and introducing a new product to General Mills’ extensive product mix. General Mills will need to undertake a strategic plan to revitalize and further develop the Cheerios product over the next two to four years. As the millennial influence increases this marget segment presents a significant opportunity for General Mills to modernize Cheerios through and revitalization and complimentary product innovation. Currently Cheerios appears to be a standalone product marketed as a breakfast product to families and children. In order to gain market share and attract the “Y Not Be The Change” market General Mills will need to implement an aggressive marketing strategy involving product innovation, price, distribution, and promotion. Market Research confirms that Gen Y’s make up about a fourth of the population confirming that this segment is potentially very profitable. This health conscious, connected and well educated Gen Y market is an emerging segment where General Mills can effectively capitalize as an entry point to the growing healthy snack food market versus the breakfast food market.

The cult following for Trader Joe’s distinguishes it from its competition. This cult is projected to grow as upcoming generations become more and more price sensitive. Loyal shoppers will camp out overnight for a grand opening or, in one example, write 50 letters to the headquarters pleading for a store opening in their state. This is surprising because their target shopper, Millennials, “show little retailer loyalty” when it comes to where they get their groceries. Trader Joe’s has obtained this loyalty through their Every Day Low Pricing Strategy, constantly changing inventories, and superb store environments.

The process of creation product varieties has important implications for competition in goods market. The selections of colors provide numerous options for the customers, guaranteeing DICK’S Sporting Goods’ that sales revenue will increase.

When a consumer walks into a store, they know what products they want to buy, whether it be an item that is a needed or a product that is just a want. If

Evaluate pricing decisions. Example: Describe the effectiveness of the pricing strategy implemented for a specific product in your store. Do you feel that you maximize your opportunity for profitability or would you have done something differently?

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.

A “balanced diet” is a diet that consists of the nutrition that the body needs to function properly. “The body needs at least six ounces of grains. Two-and-a half cups of vegetables. Two cups of fruits. Three cups of milk or dairy products. And, five-and-a half ounces of meat and beans or protein”. These measurements are quoted from the “My Pyramid” chart, which has a specific amount and type of food needed for a balanced and diet daily.

2. There are many ways to differentiate the product or service and many buyers perceive these differences as having value

3. Regression: Run a regression equation for brand preference that includes all independent variables in the model, and describe how meaningful the model is. Interpret the results for management.

1. Consumers are often` confronted with incomplete information. How do consumers deal with incomplete information for (a) attribute values (b) brands? (give examples)