2. Industry History
• First Mass Produced Cereal
– Dr. John Harvey Kellogg
– 1906
– Flakes
• Consistent Growth and Expansion
• Influx of Brands: 1997
– Industry became extremely concentrated
– 200 RTE cereals
3. Industry Key Features
• Monopolistic Competition
– Few Top Competitors
– Wide Array of Brands
– Aggressive Introduction of New Products
• High Price-To-Cost Margin
• Large Advertising-to-Sales Ratio
4. Competitors
Health Cereal Category
• Kellogg
– Mini-Wheats
– Raisin Bran
• Special K
• Kashi
• General Mills
– Fiber One
5. Grape-Nuts History
• Created
– 1898
– Charles W. Post
• Consistent Growth
• Marketing
IntroHealthy FamiliesNatural Cereal
Euell Gibbons Will Rogers Jr.testimonials
6. Current Marketing
• Slogan: “That takes Grape-Nuts”
• Target Market
• Positioning
• Marketing Mix
• Current Market Share: Less than 2%
7. Brand Problems
• Un-Popular Taste
• Less Healthy Than Some Alternatives
• Lack of Product Variety
• Outdated Image
8. Brand Users
Two biggest general user profiles:
• “Educated, affluent and upper middle class families
in established suburbs and new suburbs/ ex-urban
towns respectively.”
• “Lower middle class to downscale, factory and farm
workers in factory towns and mid-American
agricultural communities respectively.”
As stated in: (Northwestern 10)
9. Age: 35-44
GN Users by Age
25.0%
20.0%
18-24
15.0% 25-34
35-44
45-54
10.0% 55-64
65+
5.0%
0.0%
10. Gender: 48% Adult Females
GN Users by Gender
60%
50%
40%
Children
Adult Males
30%
Adult Females
20%
10%
0%
11. Income: 53% $35,000 or higher
GN Users by Income
60%
50%
40%
$35+
$25-34.9
30%
$15-24.9
20% $15-
10%
0%
12. Users Decide Based on Health
100
90
80
70
60 High in Protein
50 High in Vitamins
Low in Fat
40
Low in Calories
30 Low in Sugar
20
10
0
Users Non-Users
13. User Psychographic Profile
• Health-Conscious
• Somewhat Trendy
• Independent/In Control
• Leaders
• Intelligent
• Outdoors
• Traditional/Family-Oriented
14. Consumer Decision Making
• Morning Routine/Brand Loyalty
– Our goal
• Attitude/Beliefs in Popular Culture
– Trend towards health-consciousness
• Affordability
– Increasing brand value
18. Big Idea & Slogan
Breakfast cereal that goes beyond the
ordinary breakfast, doubling with many other
foods and improving many life situations-
making the consumer’s life better in many
ways.
Life-Better with Grape-Nuts.
19. Big Idea
Approach: Cognitive
• Impression and Communication
– Relevant
– Versatile
– Beneficial
– Healthy
• Solves the Un-Popular Flavor Issue
• Reaches Beyond Breakfast-Eaters
• Appeals to Wise Mothers
• Extendable
20. Positioning
For women with families, Grape-Nuts is the
breakfast cereal that provides versatility,
health, and improved well-being to them and
their family.
21. Target Market: Demographics
• Women: food purchase decision-makers
• 25-45
• With Families
• Suburban to Rural
• Mid-High Income
22. Target Market: Psychographics
• Health-conscious
• Independent
• Leaders
• Active lifestyle (on the go)
• Practical
• Physically fit
• Outdoors
• Trendy
23. Campaign Goals: Short-Term (1 year)
• Generate increased consumer interest and
buying activity
• Generate media attention
• Popularize the Grape-Nuts message by
creating shared experiences among
consumers
• Bring Grape-Nuts above 2.5% in market share
30. Public Relations
• Event Marketing
– Faux Food Vendor
• Philanthropy
– Riley Children’s Hospital
– Help the Hungry
– Live Strong
– Big Brother Big Sister
