As mentioned in an earlier post, the cereal market in France is really
segmented. Two big brands are basically sharing the cereals market shares.
Kellogg’s owns more than 40% whereas Nestlé is not too far behind with 30% of
market shares. Another interesting fact is that distributor’s brands are
representing 20% of the market and this percentage just keeps increasing over
the years.
With that entire offer available in supermarket, brands need to influence
the consumer’s choice and make sure that their core targets are going to
respond to the brand strategy and buy the product.
How can each of these brands differentiate from others?
One solution that has been used to differentiate one brand from others
is to target a new segment. Extra cornflakes started a few years ago an
advertising campaigns which slogan was “finally, an adult cornflakes brand not
only for women”.
This slogan showed that the men segment was not really targeted before
and that adult cereals were mainly diet cereals for women. Another example of
differentiation via targeting a new segment is the adult cereals market.
Cereals are mainly consumed by children, 9 out of 10 children are having
cereals every day for breakfast. Adult cereal is a real opportunity for
differentiation as stated Rozenn Triolaire, director of the adult cereals and
bars for Nestlé and General Mills, “The adult market is not mature at all. The
penetration is still really slow. We are still missing some offers to meet
these target needs and expectations”.
Another way of differentiation is obviously product related innovations
such as the taste, the nutritional content, the size, and all the communication
strategy that comes along with it.
As an example, Special K, major brand on the adult cereal market with
about 17% of market shares, keeps launching new tastes to prevent its consumers
from getting bored. As a matter of fact, people consuming this brand are most
of the time on a diet, or at least they are taking care of their shape.
Moreover, it has been proven that the main problem during diet and the main
reason why people stop doing it, is because they get tired of it. Knowing that,
it is very important to keep having new taste for cereals in order to avoid that
effect. Special K perfectly understood it, and meets entirely its consumer
needs.
Cereal brands can also use packaging as a way of differentiation. For
children packaging is everything and might be the only thing (with taste) that
drives their choices. The packaging needs to be attractive, with a lot of
colors and games (outside and inside). Also having a brand character can help
differentiate from other brands, Frooties is represented by a tiger and Miel
Pops by a bee. Knowing that, boys will more likely want frooties for their
breakfast and vice versa.
Froosties is using a boy as the main human character in their commercials whereas Miel Pops is using girls.
Last but not least the programs that go with the product can also help
brands to differentiate. As an example, when people buy a Special K product or
a Fitness product they can have access to online coaching, specific diet
prescriptions, gifts etc. All these extra services enable these brands to
differentiate from other diet brands and can reinforce consumer’s loyalty.
Corn Pop, Cocoa Puffs, Raisin Bran are famous and highly in demand cereal names. Most of people have cereals in their breakfast as they are rich in fibers and good for health.
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