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Breakfast Cereals

Industry Analysis

Submitted By:
Devils Advocate
Shorya Chaplot
Arjit Gupta
Ujjwal Aggarwal

MARKET OVERVIEW

he Indian premium cereal market is growing rapidly at a rate of 24% with a market size of
Rs 14.5 billion
he major players in cereals market are: Kellogg's, Quaker, Mohan Meakin, Marico, Frito lay e
with Kellogg's leading the way with 37% market share
he influence of western lifestyle led to increased growth of cereal as a breakfast substitute

Cereals are perceived as a light


weight and
healthy breakfast
They are basically categorised as
hot cereals and ready to eat cereals
The market is going to be flooded
with different variants of cerals in
the near future mainly oats, muesli
and
sugar
less
or
sugar
freebreakfastcereals
The major concern of cereals market in India is to offer a tasty as well as a
healthy product which will cater the needs of common man at an affordable
price

Value Chain Analysis

SUCCESS DRIVERS
Convenience - people are preferring options that are healthy and easy to cook showing that consumer
lifestyles arechanging. Breakfast cereals like flakes, oats and muesli are able to fill this gap due to ease
in their preparation
Health - consumers are becoming aware about benefits of a healthy diet. Breakfast cereals are high in
nutrient content and multinationals are taking initiatives to highlight theimportance of it. Even the
growing incidences of lifestyle diseases in urban households have made the consumers to shift to these
nutritious and low fat breakfast cereals
Time constraints - breakfast cereals is becoming a preference of middle income group as it provide
fast and healthy options to them. Consumers, especially mothers, are able to spend time in other
activities due to the reduction in preparation time of these delicious products
Trust trust has been an important factor among customers. In FMCG sector, trust has become
synonymous to brand and quality. The breakfast cereals present in the market are branded, and have
gained the trust among the consumers

INHIBITORS
Lack of freshness the breakfast cereals present have either no vegetables/fruits or vegetables/fruits
that are dried thus giving no sense of freshness. With Indian customer who believe that something that
is fresh is healthier, it is a requisite to come up with a fresh fruits or vegetables variant
Lack of taste - bland taste of flakes, oats or muesli are not liked by the consumers who are looking for
healthier options, thus different flavors of breakfast cereals are required which have been coming up in
the retail market
Inflexibility - ready-made mixesalreadyinclude all required ingredients and hence further addition of
spices or vegetables might result in distasteful food. This creates an inflexibility as there is a given
standardized recipe for every ready-made mix and these recipes are created catering to majority
consumers which leaves a limited scope for customization

TREND ANALYSIS
Porters Five forces
analysis
YEAR 2010

YEAR 2015

Buyer power has decreased and has


become controllable. Breakfast cereals
are seeing a lot of innovation based on
market research and what customer
wants and has tried to reducethe
bargaining power of buyer by adopting a
good
marketing
strategy.

Buyer power has decreased and has


become controllable. Breakfast cereals
are seeing a lot of innovation based on
market research and what customer
wants and has tried to reducethe
bargaining power of buyer by adopting a
good
marketing
strategy.

Substitutes like cereal bars and


poptarts have also come up thus
increasing the number of substitutes and
creating a more competitive market

Substitutes like cereal bars and


poptarts have also come up thus
increasing the number of substitutes and
creating a more competitive market

Strengths
Strengths
Extensive
distribution channel
Extensive distribution
channel
Weakness
Weakness
Enjoys
major
market
share
Enjoys major market share in
in
Similar
products
Similar products offered
offered by
by
cereals
cereals and
and snacks
snacks
many
many companies
companies hence
hence high
high
Innovative
Innovative Oatmeal
Oatmeal to
to reduce
reduce
brand
brand switching
switching
cholesterol
cholesterol
Limited
market
Limited market share
share due
due to
to
Excellent
Excellent branding
branding and
and
intense
intense competition
competition
advertising
advertising through
through ad
ad
campaigns
campaigns
Quaker
Wide
Wide portfolio
portfolio including
including Oats,
Oats,
Oatmeal,
Oatmeal, Cereal,
Cereal, Snacks
Snacks SWOT

Analysis

Opportunity
Opportunity
Entry
into
Entry into the
the developing
developing
countries
countries
Healthier
Healthier options
options preferred
preferred over
over
Fast
Food
Fast Food

Threats
Threats
GMO
regulations
GMO regulations in
in the
the
developing
developing markets
markets
Competition
Competition from
from other
other major
major
players
players

Strengths
Strengths
Promotion
Promotion through
through various
various Mascot
Mascot
developed
developed for
for each
each product
product
Great
Great marketing
marketing initiative
initiative through
through
various
various campaigns
campaigns
High
High brand
brand recall
recall and
and top
top of
of the
the
mind
breakfast
cereal
brand
mind breakfast cereal brand globally
globally

Weakness
Weakness
Perception
that most
most of
of snacks
Perception that
snacks are
are
not
not filling
filling in
in nature
nature ,, they
they act
act as
as
complimentary
complimentary to
to breakfast
breakfast but
but
dont
dont form
form complete
complete breakfast
breakfast
Some
Some products
products are
are high
high in
in sugar
sugar
content
content

Opportunity
Opportunity
Development
Development of
of distribution
distribution
channels
in
other
channels in other countries
countries with
with
help
help of
of other
other company
company
Kelloggs
Kelloggs cartoon
cartoon comic
comic series
series or
or
cooking
show
cooking show
Change
Change in
in lifestyle
lifestyle of
of consumers
consumers ,,
lack
lack of
of time
time increase
increase consumption
consumption
of
of readymade
readymade food
food

Threat
Threat
Increasing competition
competition in
Increasing
in
readymade
readymade breakfast
breakfast segment
segment
Food
Food regulations
regulations by
by government
government

Kellog's
SWOT
Analysis

PRIMARY RESEARCH
A survey was floated form to know
about what are the needs of the
consumer and what are the further
products that they would like to have
in the market
The no. of respondents that filled the
survey were 83, an we took 17
responses physically to complete the
target of 100
We asked them questions like how
often do you have your breakfast,
what are the reasons for you missing
the breakfast, what do they prefer in
the breakfast and if they would like
to try new offerings
We proposed three products for the
consumer i.e. Protein shake, a
protein bar and Honey and Dry fruit
biscuits
It was observed that 48% of
respondents miss their breakfast
The reason for their missing the
breakfast was that they didnt have

SECONDARY RESEARCH
More than 30 percent of us start our
days on an empty stomach
People who do eat a morning meal
are nearly 50 percent less likely to
beobese than those who don't,
according to a Harvard University
study
Students who ate breakfast scored
an average of 22 percent higher on
word-recall tests than those who
didn't, according to a University of
Wales-Swansea study
According to the NPD Group/Morning
MealScape 201, people usually skip
breakfast as they are getting late or
are usually too busy
The essential things that make our
breakfast healthy are whole grains,
proteins, fiber, calcium. So we need
these things in our offering

Primary Research
results

PRODUCT OFFERING
As Protein Shakes was the
most
preferred
product
according to the survey and
also it meets the need of the
consumers, so we propose a
new product PROTEIN SHAKE
in the market
The product will be available
in tetra pack of 250ml,
500ml and 1L
The shake will have 20%
protein, 10% carbohydrate,
5% fat
The product will initially be
available in chocolate flavor
but with the span of time,
we look forward to expand
out product line as per the
response
Protein
Shakes
are
a

PLACE
In phase 1 the product will
be rolled out in organized
retail stores like Reliance
Fresh, Easy Day where there
is regular customer visiting
the stores who are working
professionals and also health
conscious
The product can also be
placed in large pharmacy
stores
Gyms and fitness clubs can
also be the places where the
product can be placed
The product can be placed in
hospitals or there can be an
agreement
between
dieticians and the company
so that the dieticians will
recommend the product to
patients
considering
the

PRICE
According
to
the
three
products,
1L- Rs. 90
500ml- Rs 50
250ml- Rs. 30
The pricing has been done
by
competitor
pricing
strategy
Also,
for
a
particular
breakfast serving, a 250ml
serving is recommended
which will cost a consumer
Rs 30 per meal
Comparing this price to
other breakfast options say
oats, which cost Rs15- Rs20,
it will be a better option, as
there is no need to prepare
the shake, it is RTE
With
respect
to
other

PROMOTION
There will be a promotional
event on National Breakfast
Day i.e. March 18 and on
Worlds Heart Day on April 7
Using mix of advertising
media such as TVCs, digital
marketing, newspapers etc.
Product placement in movies
or TV shows where product
can be associated as a
regularly taken by working
professionals
Sponsoring TV shows such
as master-chef, or use of
product in the TV shows like
khana khazana to come up
with innovative recipes with
the product

Segmentation:
We segment our customers on the basis of age
group and health consciousness

Target:

We will target office goers and college


students who eventually misses there
breakfast and are health conscious

Positioning:
As a health drink, a supplement of protein
As a ready to eat and portable breakfast
product

THANK
YOU