Question: This is a case study : In the U.S. cereals are taken at breakfast time. Cereal manufacturing is an industry of great magnitude. Cereals are
This is a case study :
In the U.S. cereals are taken at breakfast time. Cereal manufacturing is an industry of great magnitude. Cereals are manufactured in various shapes, flavours and colours and the advertisement is directed at children. The leading manufacturers are Kelloggs, General Mills, General Foods, Quaker Oats, and Champion. Kelloggs share was constantly being eaten away by other manufacturers who were introducing new cereals. Kelloggs therefore thought of introducing a new cereal, which they had not done for a long time. The cereals were not only consumed by children, but a substantial portion formed the adult market as well. Kelloggs developed a new plan to come out with a cereal which would be tasty, nutritious, free of sugar and made of grain. The cereal consisting of the above attributes was named Nutrigrain. These were available in four types. Nutrigrain Corn, Wheat, Barley and Rye. These were introduced together, and no test marketing was done to avoid competition. These Products were advertised heavily and targeted at adults. To promote the product further, discount coupons were freely distributed, which gave a cut of about 30 per cent in the retail price of the product. Coupons were also inserted in the Nutrigrain boxes so that customer would return to take advantage of these coupons, and make repeat purchases. A lot of information and advantages of consuming Nutrigrain was boldly printed on the packages for the information of the consumers. Proper display in the shelves of stores was also taken care of. Their efforts brought results, and the stores were loaded with orders and most adults started eating these cereals, because of promotion, curiosity, etc. After one year, the sales declined because there were very few repeat purchases. This started the extensive thinking as to where they had gone wrong. Consequently, they withdraw two of their brandsBarley and Rye. These were replaced by raisin and wheat varieties. They also found out later, that there was a shortage of time for the adults, which prevented them from having cereals. If they could get out of bed 10 minutes early and devote these ten minutes to breakfast , they would probably enjoy the cereals. They also found out that though people were looking for sugarless cereals, yet they loved to satisfy their palates with sugar coated cereals.
This is the Question :
as a marketer, do you see this as an opportunity and how can you cash on it?
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