Cheerios Swot Analysis

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SWOT Commentary

STRENGTHS:

The cheerios brand from the organization Nestle has been around for years and is a well known cereal / brand still with a significant share in the breakfast cereal market of 3%.

COMMENTARY:
The brand cheerios has been around since 1945 and comes from the strong brand Nestle which is a Swiss multinational nutritional company formed in 1905. A Mintel report by Clifford (2012) clearly shows that cheerios has a 3% market share of breakfast cereals. Whilst this does not seem particularly high, the branded cereal which holds the largest share is only at 8%. From the report a fair observation can be made that cold cereals, which includes Cheerios, form 87% of the total market and so therefore a strong proportion of the market.

REFERENCE:
Clifford, E. (2012). Mintel Report. Breakfast Cereals - UK - August 2012. Breakfast Cereals. 1 (1), p3.

The ‘Health’ benefits from eating Cheerios cereal is well marketed and branded.

COMMENTARY:
With more and more people looking towards healthy eating and watching the contents of their food intake, companies are now branding products to show the health benefits. Equally, existing companies and brands are having to create new strategies and change their products to contain healthy benefits to promote, attract or keep their customer basis. The Mintel report by Clifford (2012) states that ‘25-34s appear to be attracted to healthy cereals, being the most inclined to use high-fibre cereals, muesli, diet cereals, granola and added health cereals.’ According to a report by Strutton (2012) this has a direct affect on the brands marketing as Cheerios has now targeted children through their parents, which states that Cheerios is ‘playing the kiddie card’ in terms of marketing. This is a strong move in the current market and moving with the trends. This is also helped with such Government campaigns such as Change4 Life which is there to actively encourage consumers to have a healthy start to their...
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