The business that I will be looking at during the course of this unit is called LiteBites. This is a fictional cereal manufacturer that has recently been set up and is based in Reading. LiteBites is a small-medium-sized enterprise, which employs 0-250 people (Fardon et al, 2005). A business of this size is a lot easier to manage then a much larger business. The advantage that my business will have is that it won’t suffer from diseconomies of scale these are, forces that cause larger firms and governments to produce goods and services at increased per-unit costs. “As a firm grows, it seeks to reduce the marginal cost of its products, increasing efficiency as it increases production. Improved efficiency results in greater profit per unit of production”. There are a few things that will need to be talked when thinking about appropriate high impact segmentation. The disadvantages are that bigger companies are well-known and their brand is trusted by consumers. I will have to give consumers a reason to by my product by researching what appeals to them. I will be focussing on promotion and advertising as this is what will let consumers know about my product. This assignment will be divided into four strands that will include work carried out that will meet that overall aim.
The overall aim of this assignment is to re-market a brand of Mixed Grain Flake cereal to a different market segment. This will be achieved by identifying the key marketing aims and objectives. The demographic segment I will be aiming this new product at is parents and their children. I have chosen to remarket breakfast cereals as they have a high range of users around different market segments in the UK. Statistics show that “A bowl of breakfast cereal with milk also provides at least 25% of daily requirements for many essential vitamins and 17% for iron”. (http://www.breakfastcereal.org/) also Research showed that 94% of households in the UK have cereal (Source: The Food that Makes Billions, “The Age of Plenty” BBC2 Documentary, Nov 2010) Also, reports stare that “Just over 9m consumers have a wide selection (ie four or five) of breakfast cereals in their cupboards, principally but not exclusively multigrain-based recipes, low fat, children's or honey based cereals” (Mintel 2010). This means, that many people will be purchasing breakfast cereals because it is an efficient way of getting the right nutrients in the morning. This market is ideal to showcase some of the ideas that I plan to discuss.
Strand A – clearly identify the product and also explain why it was chosen. Describe the marketing objectives and different types of segmentation before defining their target market.
Strand B – conduct primary and secondary research into the market for breakfast cereals. The research should be analysed to provide information on the characteristics of the target market. Research should be targeted and the people you want to purchase you product.
Strand C and D - Devise a marketing mix as part of a wider marketing plan for your breakfast cereal. Demonstrate a clear understanding of the marketing mix. Support your discussion and recommendation with primary and secondary research. A range of relevant marketing tools should be used to support you explanations. Explain how brand values will be conveyed. Evaluate the marketing mix with consideration of competition and comparison against possible alternative choices. The marketing mix should give your cereal product a unique selling point.
I have chosen 3 different marketing objectives for LiteBites Mixed Grain Flake cereal. The first marketing objective for LiteBites is going to be brand awareness. Brand image, is very important for a variety of different reasons, for example it allows consumers to recognise your cereal product worldwide also the brand can make the product look good. The advantage of this, is brand image allows me apply creativity to the