The market for breakfast cereals has tremendously grown globally due to the continuous increase in demand for ready-to-eat food products. The global growth can also be partly attributed to the technological advancement of the retail infrastructure and the health benefits of eating grained-based products during breakfast. Breakfast cereals from the MSH group are prepared from single grain or a combination of multiple grains such as oats, corn, wheat, and other cereals. It can be eaten accompanied by milk or juice and other fresh fruits juice. Cereal products provide to people of all ages. They are a healthy energy source since they are produced without adding refined sugars. The other components of the breakfast cereals include proteins, carbohydrates, fibers, and vitamins, which are very beneficial for human health.
The trend for adopting the consumption of cereal products for breakfast among people has increased globally. The value of breakfast cereals is estimated to be 20.118 million dollars in 2020, and it is believed that it will rise by 2.03 percent growth from 2022 to 2027 in the United States (Statista, 2022). The consumption of whole grains is also considered a modern trend that leads to a positive rise in the demand for the products. The introduction of flavored breakfast cereals has also contributed to the growth in the market for the product, especially in developing nations. The change in the consumers’ habits and increase in consumer demand are also critical factors contributing to raising awareness about healthy eating, contributing to the rise in demand for breakfast cereals.
Market Segment Analysis
This is a market segmentation where the targeted market for the products is subcategorized based on age, gender, education, and income, among other demographic variables. Any organization needs to understand who its clients are to address their needs effectively. Cereal consumption in the United States can be segmented based on age, education, and income of the people within the country. According to Mintel’s study (2017), about 43 percent of the cereal consumers in the country eat the product as a snack at home.
Eating cereal as a snack is considered the second most common reason for consuming the product apart from its consumption at home for breakfast which tops at 89 percent (Mintel, 2017). The younger people in the United States are the leading consumers of cereals as snacks-based age 56 percent of the millennial between the ages of 23 to 40 consumes cereals as snacks at home compared to the 32 percent of the baby boomers between the age of 53 to 71 (Mintel, 2017). Based on gender, the consumption of the cereal high in carbohydrates as a snack or for breakfast reduces in women who are obese who switch demand to the brands with high protein but low carbohydrate levels. Highly educated women are also highly informed, and their decision to purchase any cereal brand is tied to their health and food requirements.
The MSH brand with high protein and low carbohydrates is positioned in the market to target the individuals who prefer to work out and are eating food under a very strict diet and targets the vegetarians who are unable to find an abundance of protein can find it in this brand. With high protein and low fats, and carbohydrates, the MSH brand targets people between 25 to 45. This group of people is more financially independent, and the largest proportion of these people loves working out; thus, they are mostly on a strict diet.
People living in a given geographic location always have different socioeconomic statuses, attitudes, lifestyles, and personality traits uniformly known as the psychographic profile. According to the social psychography, different consumers fall under different social classes, which rely on the consumers’ ability to purchase a given product. The ability of the consumer to purchase a given product is mainly affected by their background, income, and spending habit, as clients, will always purchase to maintain their social class. Socioeconomic status plays a critical role in marketing the MSH protein-based breakfast cereal. This product line at the company is categorized as a premium product under premium pricing. Its targeted customers include middle-income individuals who work and can afford to spend money on the product.
Clients are further segmented based on their activities, interests, and opinions; this is a subset of lifestyle psychographic segmentation of the market. The client’s activities, such as workouts, interests, and opinions, also impact their buying behavior. MSH protein-based breakfast cereal is situated in the market to target clients interested in working out and are on a strict diet. The brand also targets vegetarians who hold a different opinion about eating animal products and thus have a limited source of protein; therefore, the brand can be an alternative source of protein.
Consumption of the MSH protein-based breakfast cereal is associated with many benefits because of its low fate levels. The product can help consumers to work for longer without the feeling of being hungry. Therefore, this product will have the ability to embed itself more deeply into people and how they live their lives due to its overall brand image. The marketing programs that the company aims to design to help promote the product in the market and it will be able to turn irregular consumers into regular customers. The marketing will aim to convert the consumers into regular customers through the change of perception.
Use of Social Media
The company, MSH, targets utilizing social media to market the new brand to reach the millennials, the largest consumers of cereals. The company will work closely with social media content creators to advertise the products (Hanlon, 2021). The content creator will be tasked with creating adverts posted on the company’s social media accounts and that of the company. They will also share helpful information about the brand that will target to educate the consumer about the benefits of eating the MSH protein-based breakfast cereals, which will help the company remove the misinformation that may exist in the brand’s market. Within social media, the content creators will also take their time to review the comment of the clients, and this will improve the consumers’ experience. The company will also use ads to reach the targeted audience. The tailored ads on the face will allow the company to reach a specific group of people based on their age, relationship status, and many more.
Word of Mouth Marketing
This method will involve passing important information about the product’s existence through oral communication. It will take various forms from blogging, buzz, and brand ambassadors and advocates. The company targets to use blogging and corporation with brand ambassadors to spread the information through word of mouth by meeting people through events organized by the company and conveying information about the product. This marketing method is very important to market to the baby boomers as it will help change their perception of the product. Through it, the company will be able to relay credible information about the product. Various research shows that most customers tend to believe in word-of-mouth advertisement over the other advertisement methods since they trust that it is full of honest information about the product (Chen & Yuan, 2020). The company also targets to tap the volunteers who will choose to be the brand ambassadors and will choose to endorse the products online and offline without payment.
Giving Free Samples
Giving out free samples to clients for a newly introduced product is one marketing strategy that various companies have used. The companies always give free samples to the clients to test the new products before they commit to buying the product (Schwartz & Woloshin, 2019). The free sample for these cereal brands at the company will be given to clients through the company dealers and the company outlets. This method targets to convey to the clients the benefits of consuming the new brand of breakfast cereal, therefore, equipping them with information before buying the product. The company plans to distribute some of the products to the gyms where most of the millennials will be found. This will most likely find the potential clients where the nutritionist within the fitness centers will recommend the product to the potential clients. The company will also post the offers on its website and social media. Data will be gathered and analyzed to help determine how consumers perceive the product.
Promotion is one of the methods used in the market mix; it always involves personal and impersonal communication. Promotion is always directed at activities that aim to persuade prospective buyers about the company’s products and services (Widayati et al., 2019). The company plans to directly communicate with the clients through packaging and sales promotion, and public relations. The company will use the brand’s packaging to promote the brand. The branded packages will be used as feeding dishes that clients can use. The packages will be branded with lovely pictures which target influences and create a positive impression about the new brand. The packaging aims to create a mental picture in the customers’ minds; therefore, it is important for marketing the brand.
Advertisement always targets influencing customer behavior and persuading them to purchase a given product from a company. Advertisement can be conducted through various mediums of communication. The company intends to use multiple channels to pass information to different target audiences about the brand. The company considers the use of television advertisements to communicate to baby boomers. This target group is not very active on social media compared to the millennials and, therefore, can only be reached through television advertisements. Most of the advertisements about the product will be done during the prime news time in the evening because that is when most of the targeted audience will be available after a long day of work.
Rewarding Loyal Customers
Loyal customers are always key to the success of the various brands produced by any company. They are very instrumental in marketing the company brands apart from buying them. Loyal customers always spread information about a brand to their families and friends, and other people within their network influence their attitude and behavioral shift towards the product (Dalakas, Tseng & Melancon, 2021). The loyal customer will be given the product at a discounted price to pretest them before fully rolling out into the market and provide the company with their experience with the product. This way, the company will be able to retain the old customers. In areas where the company brands are not well known, the company will introduce vouchers and gifts to customers who will refer other customers to the company products.
Marketing of any company products usually involves various activities which require management. A marketing schedule is one of the tools which companies usually use to manage marketing activities as planned (Hanlon, 2021). The marketing schedule of any organization considers an array of different activities while also considering cultural events within the organization that occur annually. Marketing scheduling is very important in the organization as it helps the marketing team keep track of all the activities that the organization plans to market a product. It enables the team to ensure that all the marketing activities meet the milestone required throughout the year.
|Milestone||Due Date||Who is responsible||Details|
|Selection of influencers and brand ambassadors||Completed||Marketing manager||A review of the most followed creator with most of the content created upholding the ethical standards of our company and can influence clients|
|Development of the social media advertisement||07/05/2022||Social media influencers|
|Reconfiguring social media||Completed||Information technology manager||It was a contingency measure implemented to ensure that our website is well optimized in the search engine due to the changes in technology|
|Develop a mass media promotion plan||07/05/2022||Marketing manager|
|Develop adverts for print media outlets||07/05/2022||Marketing manager|
|Meet with promotional partners||Completed||Marketing manager||This included gym owners and nutritionists who will recommend our product to the prospective clients|
The market for breakfast cereals has seen tremendous growth globally due to the continuous increase in demand for ready-to-eat food products and partly due to technological advancement in the retail infrastructure and the health benefits of eating grained-based products during breakfast. The consumption of cereal as a snack is considered the second most common reason for consuming the product apart from its consumption at home for breakfast. The targeted customers for the protein-based breakfast cereal target middle-income individuals who work and can afford to spend money on the product. Clients are further segmented based on their activities, interests, and opinions; this is a subset of lifestyle psychographic segmentation of the market.
The target market for the products is further subcategorized based on age, gender, education, and income, among other demographic variables. It is very important to MSH as it helps the organization understand who its clients are for them to address their needs effectively. Cereal consumption in the United States can be segmented based on age, education, and income of the people within the country. The company will focus on word of mouth to market the product; it involves passing important information about its existence through oral communication. It will take various forms from blogging, buzz, and brand ambassadors and advocates. The company targets to use blogging and corporation with brand ambassadors to spread the information through word of mouth by meeting people through events organized by the company and conveying information about the products.
43% of US cereal consumers eat cereal as a snack at home. (2017). Mintel. Web.
Breakfast cereals – United States | Statista market forecast. (2022). Statista. Web.
Chen, Z., & Yuan, M. (2020). Psychology of word of mouth marketing. Current opinion in psychology, 31, 7-10.
Dalakas, V., Tseng, M., & Melancon, J. (2021). Encouraging and rewarding customer loyalty: key considerations for sports teams. Web.
Hanlon, A. (2021). Digital marketing: strategic planning & integration. Sage. Web.
Schwartz, L. M., & Woloshin, S. (2019). Medical marketing in the United States, 1997-2016. Jama, 321(1), 80-96.
Widayati, C. C., Ali, H., Permana, D., & Riyadi, M. (2019). The Effect of Visual Merchandising, Sales Promotion and Positive Emotion of Consumers on Impulse Buying Behavior. Jurnal of Marketing and Consumer Research, 60, 56-65.