Question 2 Kellogg's breakfast cereal
Kellogg's is an American multinational food manufacturing company that produces
breakfast cereals such as Kellogg's Corn Flakes and Kellogg's Frosties. It introduced
flaked cereal over a hundred years ago.
The global breakfast cereal market is forecast to grow, with countries such as China and
India predicted to bolster demand. But the dominant US market is looking less
promising; here the popularity of breakfast cereal has been fading. It seems that younger
consumers are choosing alternatives such as hot cereals, smoothies, yogurt or breakfast
sandwiches. In one survey, almost 40 per cent of millennials said cereal was an
inconvenient breakfast choice because they had to clean up after eating it. Now
millennials seem more likely to opt for no breakfast, or breakfast out.
But breakfast cereal has a strong nostalgic element. According to one industry
commentator, 'The cold cereals that baby boomers grew up on have been relegated to a
category called "comfort brands”. In one survey, 40 per cent of baby boomers said the
cereals they loved as children are still their favourites. Meanwhile, an industry expert
believes breakfast cereal companies are not fully exploiting the various ways breakfast
cereals are enjoyed. Innovations have included snack bars and crackers but more could be
done. A consultant for Kellogg's cereal said, “They have to embrace that people love the
flavour and texture of cereal and the vintage nature, but it's not about breakfast.'
Required:
Advise Kellogg's on how to conduct market research to explore millennial consumers'
attitudes and behaviour towards its range of breakfast cereal brands in the United States.
(Total 30 marks)