Seminar Tutor – Hina Khan.| By James Craven, Katie Fortune, Rory Dunlop, Karl Dickey, Omar Farooq and Sarah Crawford|
1. Market Overview
The cereal bar market in the UK in rapidly expanding. Bored with conventional approaches to cereal bars Wake Up bar aims to add extra value to an already popular product. The cereal bar market is now looking for extra ingredients in the bars to persuade customers on to that particular brand.
2. The current situation
Our target market has to find it easy to access our product; this can be established by increasing the supply chain so the product can gain shelf space in supermarkets and general stores. The market is helping people aged 18-25 stay healthy and also help them make up for the breakfast they did not have time to eat.
Health has been a major driver in the cereal bar market and is becoming increasingly important. A healthy, organic, fair trade and nutritious product is in demand and is the trend in the market. These are also our competencies as a niche cereal bar company and on top of this our USP lies in the added glucose energy boost.
The Organic Food market continues to be one of the fastest growing segments of the European food market, the values of the market has almost doubled by 2005 and is estimated to grow by another 49% by the year 2010. We have made the right decision in entering our product into the market now as it is still growing and has a good rate of growth. We expect to take advantage of this growth and implement our brand name and image into the market by gaining market share.
Wake-Up! Is the first organic cereal bar to have added glucose, our cereal bars contain wholesome, organic nutritious ingredients. Wake-Up! Is a relevant product as it promotes a healthy lifestyle which is an ongoing issue, it appeals to a segment which is currently untapped by any other organic food retailer, it also adds value other cereal bars fail to do. Wake Up boasts the competencies to be able to attract many customers due to its USPs which include implementing a fair-trade logo, added glucose for the much needed energy to help you get through a hard day, organic nutritious ingredients, recyclable packaging and a triangular shaped package that stands out amongst its competitors.
Weaknesses at Wake Up include being easily copied, many new cereal bar manufacturers are also gearing up to take advantage of a rapidly expanding cereal bar market and cereal manufacturers can also add to their portfolios by introducing their own cereal bars. We are an inexperienced company that has just began its campaign to penetrate a vigorous market, this means that our experience is nothing compared to the likes of market leaders such as Kellogg and Nestle. It is hard to establish a brand, in an already competitive market that is ever growing. There is competition from other markets as well, i.e. cake bars and confectionery that add to the businesses weaknesses.
This market is an under exploited market, Wake Up complimenting this market with a niche cereal bar could definitely gain the company valuable market share. There is then a great possibility and open opportunity to expand the product range; this could lead to an expansion into international markets. The US has also shown a great interest in the cereal bar market, the consumer market for cereal bars in the U.S. in 2006 is $1.4 billion and this market grew an impressive 69% between 2001 and 2006. These figures show us that there has been a significant growth in the food culture in America and this is something that Wake Up can capitalise on.
The current economic climate does not favour new businesses, in this current recession it seems like it is going to be a financial struggle for Wakeup to successfully establish itself and put its...