OMG ACTIVE CEREAL
TWO-YEAR MARKETING PLAN
By Christine Shao
Name and appropriateness of choice
OMG is a pet phrase among teenagers and also I want to deliver a message to costumers that the cereal has amazing taste. Our target customers are teenagers, so the word ‘ACTIVE’ is used to describe how the teenagers should be.
Summary of market position
OMG Active Cereal is a new breakfast cereal which is based on rice bran. Rice bran has a high nutrition value and is rich in anti- oxidants and beta-glucan, which naturally helps lower cholesterol re-absorption. It is made from 100% wholegrain rice imported from China DongBei where produces the top rice in the world. It is also high in fibre, iron and the B vitamins, B1, B2 and niacin. OMG
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Other notable strengths in OMG Active Cereal include:
•We will use excellent grocers as global channels of distribution (i.e., Woolworths, Coles, and IGA etc.)
• Our pricing strategy is below most of our competition, giving OMG Active Cereal a competitive edge with consumers looking for value for their money.
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.
Threat – OMG Active Cereal‘s most noteworthy threat is that soon, many cereal companies will also release a breakfast product that focused on teenagers.
Opportunity - Compared to the rest of the market, OMG Active Cereal‘s most notable opportunity is that it is the first cereal which is especially served for the teenagers at the ages of 13 years to 19 years.
Competitor analysis
OMG Active Cereal has two major competitors- Uncle Tobys and Kellogg’s. Accounting to an online research
The box could have had playful elements such as a mascot or a colorful design, which might have signaled the cereal to be fun rather than healthy. See Videtto, 2009 U.S. Dist. LEXIS 43114, at *7-8 (fanciful design elements on Froot Loops cereal boxes, including the spelling of “Froot” and a mascot, signal that the cereal is unhealthy). Instead, despite sugar and corn syrup being third and fourth on its ingredients list, the box deceptively “tap[s] into the current health conscious message” by mimicking the boxes of serious health food cereals such as Kellog’s Special K. It does this through a similar white background, colored bar at the top, logo and check mark that seem to certify the product, and picture of the cereal. Compl. ¶ 14; Compl. Ex. A. While some might argue that the picture of the cereal clarifies what the product contains, the ingredients are unclear from the picture, and the rest of the elements misleadingly compare the product to low-sugar, high-fiber cereals. Similarly, the box claims “100% nutrition.” Compl. Ex. A. This could be interpreted as claiming that the cereal contains 100% of daily nutrition, like the possibility that “‘all natural ingredients’ could . . . be interpreted . . . as a claim that all the ingredients . . . were natural.” Henderson, 2011 U.S. Dist. LEXIS 41077 at *31. Because of these factors, Plaintiff Dominik Sabach “intentionally chose
Dist. LEXIS 96108 at *7-8. The box mimics the design of health food cereal boxes, despite “sugar” and “corn syrup” being third and fourth on the ingredients list. Sabach, Exhibit A. This contrasts with Videtto v. Kellogg USA, 2009 U.S. Dist. LEXIS 43114, *7-8 (E.D. Cal. May 20, 2009), where fancifully design elements including the spelling of “Froot” and the mascot signaled that the cereal was unhealthy. Similarly, the box claims “100% nutrition.” Sabach, Exhibit A. This could be misinterpreted to mean that the cereal contains 100% of daily nutrition, like the possibility that “‘all natural ingredients’ could … be interpreted … as a claim that all the ingredients in the product were natural.” Henderson, 2011 U.S. Dist. LEXIS 41077 at *31. Dominik Sabach implies that because of these factors, “he intentionally chose “Complete Blueberry Pomegranate” over other cereals…. Based on looking at the cereal boxes, Dominik believed that … other cereals … were likely to contain greater quantities of sugar and artificial sweeteners.” Sabach at 8. Thus, this packaging is “false, misleading, and reasonably likely to deceive the public.” Id. at
General Mills emphasizes that Cheerios is a quality and nutritious cereal through its product and packaging. Cheerios remains a healthy and tasty breakfast option for all ages. Cheerios is considered a convenience product, where the consumer does not spend much effort to evaluate prior to purchase. Cheerios has significantly less calories, fat, and carbohydrates than the average cereal according to CalorieKing which compares foods based on their nutritional facts. The ingredients of the cereal are whole grain oats, modified corn starch, sugar, salt, Tripotassium Phosphate, and wheat starch (in order of most used). The American Dietetic Association lists Cheerios’ Nutrition Facts as the following per one cup: 120 Calories, 2G of Fat, 0Mg of Cholesterol, 270Mg of Sodium, 22G of Carbohydrates, 3G of Fiber, 1G of Sugar, and 4G of Protein. Cheerios are packaged inside a sealed bag for health reasons, which is then put inside a 12 inch by 8 inch box for display. The 12 by 8 inch box is considered the primary package while the sealed bag is the secondary package for the cereal. The box is bright yellow which draws the customer’s eye and is considered a brand association of Cheerios. It also has a picture of the product on the front so the customer knows what he or she is buying. General Mills does a great job labeling its products to ensure that the customer knows that it is a healthy product and it can be trusted because it has the General Mills check on it. The
3) Who is Kraft Kool-Aid’s customer, and what trends do we see in that market
Tasty Foods Corporation was founded in 1995 by Henry Abercrombie. The corporation is a food conglomerate that has major product lines including cereals, frozen dinners, canned sodas and fruit juices. Abercrombie founded the company with a small inheritance and with the idea of producing instant hot cereal. The firm’s hot cereal proved to be a success and was well accepted by the consumers. Over the years it grew by its acquisitions and product innovation ideas, expanding considerably over the last 40 years. In addition, Abercrombie proved to be an excellence business person that had a lot of vision and was very business-savvy. When Abercrombie’s health started deteriorating, he decided to hire his
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.
Kellogg CompanyKellogg Company is a multinational Group of company that manufactures delicious and healthy food products. The Company operates with Battle Green, Michigan as headquarters. Kellogg’s produces cereal food products such as the toaster pastries, crackers, cereal bars, frozen waffles, fruit flavored snacks and plenty of vegetarian healthy snacks. They live up to their motto, ‘Nourishing families so they can flourish and thrive.” You can also grab wonderful jobs from their distribution centers located in Chicago, Aurora, Oak Brook and Western Stephenson County etc. in Illinois. You would need to visit the company’s website to find out more about the company.
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.
So far, this says to label readers that this cereal is sugary and likely has a high glycemic index. This means that the food will cause a faster spike in blood glucose, and then leave you feeling tired and hungry.
Personally I think incorporating some cereals into your diet can be good - but there are some caveats here: Satiety - From experience, I've noticed that wolfing down a bowl of cereal doesn't always curb the hunger pangs. However having a bit more protein in the mix does keep the pangs at bay. Nutrition - The simple truth is - Special K is better than what most people eat, but it still contains such gems as High Fructose Corn Syrup. Serving for serving, it has less potassium and fiber than oats, and more sugar. Compare here and here.
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.
rice crispy cereal is one of the most noisiest cereal u would ever hear it pops and sizzles when u pour milk in it but when it's in the box it just quiet. the color of the noise cereal is a bright yellow and has kind of a hard and crunchy almost like captain crunch the taste of this cereal is sweet almost like you're eating sugar but i would want to do that there are way too many health issue with that many tv show show that the rice crispy cereal is called pops pretty ironic right. may kids like this product because the tv show are catchy and the children are attracted to it that's how they make their sale if they can make the tv show interesting then
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).
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.
These labels are more likely to grab attention when consumers are under a time pressure.4 Even though the efforts are to be seen as a easy and more efficient way to purchase better quality food for their children, corporations and their marketing teams have used nutrient content claims to advertise their products to give the appearance that their products are “healthier” to increase sales.3 An example of this can be seen in some of General Mill’s cereals, where they present the nutrient content claim 100% whole grain, which may encourage parents to buy these cereals, even though the cereal may have more sugar than what is recommended for children per day.5