Cheerios Swot

Strengths:

• In 2009 there was a 6% growth of cereals market (Barker, b 2010). Cheerios is developing brand. In 2009 Cheerios market share was 4% and it grew by 9% in 2010 (Fernandez, 2010). According to Groubal Community Sentiment Index (2012), Cheerios took a 20th place out of 23 in food (see App.1) and beverage, while Kellogg took 21st place (see App.2). This means that the cheerios is more popular than his rival, and also has a high level of customer satisfaction. According to Mintel report (2012), 31% said that they have a multigrain cereal like Cheerios in the morning.

• According to Baker (b, 2010), 49% of customers are watching at the manufacture’s brands, rather then supermarket own label. The brand image is fun, brand value is healthy and display is a brand visibility. For example, to look at the advertisement of Honey Cheerios (see App.3) it is possible to say that this advert intended for children. It is nice and funny, easy to remember for kids. Cheerios cereal fortified with vitamins, thus it is considered healthy (Nestle, 2012). As regards to brand visibility Cheerios boxes always have some activities on it. As an example, in autumn Cheerios has an activity for children, who are going to school. The idea was that more boxes of Cheerios you bought more tokens you will get (see App.4). And then you can exchange these tokens to the books for school. So Cheerios align brand with children’s values. Company created a positive relationship between children and brand which can be carried into to adulthood.

Weaknesses:

• Analyzing the quality of cheerios can say that one of the highest. (Nestle, a 2012) There is an aspect in which cheerios inferior to its competitors. This aspect is how useful and healthy are the cheerios production. According NHS (2012), the healthiest cereals are Nestlé Shredded Wheat, Quaker Oat So Simple Original and Weetabix with low levels of sugar, fat and salt. Cheerios problem is that it is contains a lot of salt, while people in the UK have started to refer to a healthy lifestyle and eat healthy foods (Mintel, 2012). In 2009 the Kellogg released a new product that contains less sugar and less salt, whereby they increased sales by 8% (Baker, a 2010). According to Barker (b, 2010), there are 4 factors that buyers consider when buying cereal and one of the major is sugar (39%). Even the government encourages eating healthy and already taking actions to attract people to a healthy lifestyle (BBC, 2012).

• Cheerios has just three tastes such as Honey Cheerios (Nestle ,b 2012), Chocolatey Cheerios(Nestle, c 2012) and Oat Cheerios (Nestle, d 2012).The main competitor Kellogg’s Crunchy Nut has at least six flavours and around five different types of Coco Pops (Kellogg’s, 2012). As can be seen, competitors have a great selection of flavours and types, that is giving them the chance that consumers will buy their