Swot Analysis for Cheerios
Marketing Audit: Internal Audit:
Brand:
The brand Cheerios is co-owned by Nestle and US company General Mills, but operates under Nestle for consumer recognition purposes in the UK. Consumers associate Nestle with high quality products and worldwide recognition. Cereal Partners is the UK manufacturer name with their aim being to provide “high quality, great tasting healthy products” (Nestle, 2012). Cereal Partners UK has established itself as the second largest manufacturer in the UK, with over 25% of a market that's worth more than £1.3 billion. (Cereal Partners UK, 2012). Cereal Partners UK makes breakfast cereals from raw ingredients which are grown naturally and are the source of many brands most noticeably brands such as shredded wheat, shreddies and for this analysis cheerios. The wheat used in cheerios and other products are sourced from farms across the UK providing “local employment opportunities”, and “premium quality products” (Cereal Partners UK, 2012). Cereal Partners believes in high standard of ethics with frequent charity donations as well as supporting and funding community products. By Nestle using Cereal Partners UK as their manufacturer, they are ensuring the premium quality and high stock that is associated with Nestle worldwide.
Financial Performance:
Cheerios sits in a highly competitive but lucrative market. The breakfast cereals market has increased in value by 20% to £1,582 million between 2007 & 2012 and the market is predicted at current consumption/sales figures to increase by a further 19% in value to £1,883 in the next 5 years. In 2011 Cheerio’s had a 3% market share, the same percentage as rivals Kellogg’s shredded wheat. Weetabix and Kellogg’s Special K were the highest branded products with an 8% market share value each (Mintel, 2012)
Product:
Cheerios has a variety of four products; Honey cheerios, Oat cheerios, Original cheerios and their newest product chocolate cheerios. It is also part of the Grab2Go Nestle product range
Brand:
The brand Cheerios is co-owned by Nestle and US company General Mills, but operates under Nestle for consumer recognition purposes in the UK. Consumers associate Nestle with high quality products and worldwide recognition. Cereal Partners is the UK manufacturer name with their aim being to provide “high quality, great tasting healthy products” (Nestle, 2012). Cereal Partners UK has established itself as the second largest manufacturer in the UK, with over 25% of a market that's worth more than £1.3 billion. (Cereal Partners UK, 2012). Cereal Partners UK makes breakfast cereals from raw ingredients which are grown naturally and are the source of many brands most noticeably brands such as shredded wheat, shreddies and for this analysis cheerios. The wheat used in cheerios and other products are sourced from farms across the UK providing “local employment opportunities”, and “premium quality products” (Cereal Partners UK, 2012). Cereal Partners believes in high standard of ethics with frequent charity donations as well as supporting and funding community products. By Nestle using Cereal Partners UK as their manufacturer, they are ensuring the premium quality and high stock that is associated with Nestle worldwide.
Financial Performance:
Cheerios sits in a highly competitive but lucrative market. The breakfast cereals market has increased in value by 20% to £1,582 million between 2007 & 2012 and the market is predicted at current consumption/sales figures to increase by a further 19% in value to £1,883 in the next 5 years. In 2011 Cheerio’s had a 3% market share, the same percentage as rivals Kellogg’s shredded wheat. Weetabix and Kellogg’s Special K were the highest branded products with an 8% market share value each (Mintel, 2012)
Product:
Cheerios has a variety of four products; Honey cheerios, Oat cheerios, Original cheerios and their newest product chocolate cheerios. It is also part of the Grab2Go Nestle product range