A Nestle breakfast cereal (market opportunities, product strategy and Essay

A Nestle breakfast cereal (market opportunities, product strategy and next steps) - Essay Example On the other hand, market remains competitive with competition from pastries, cereal bars and biscuits as well as porridges. It is interesting to note that the consumers over 50, given their need for greater convenience and behavior of eating more at home may be inclined towards â€Å"hot cereal† products. These hot cereals offer an even more convenient breakfast option for consumers along with a more portable â€Å"pot† format for the cereal. They also reflect the deep-seated cultural tradition of eating â€Å"hot oats† or â€Å"hot biscuits† across continental Europe (Culliney, 2013). Considering that individuals over 50 tend to prescribe to age-old traditions, this may seem just the right option. Our competitor, Kellogg’s, has already stepped into this market by providing its â€Å"Special K Nourish† product (Culliney, 2013). Considering that consumers over 50 years tend to use the microwave or steam for the preparation of their cereals, h ot cereals provide just the right opportunity to capitalize this. Furthermore, targeting the mental health of consumers over 50 presents a vast opportunity for breakfast cereals sellers. Although manufacturers have traditionally focused on good health of the brain and heart by providing low cholesterol, sugar or fats to this age bracket, it is now time to shift the focus towards catering to the cognitive areas of development in these individuals. Deterioration in mental health, such as Alzheimer’s disease, is common in the older segment; however, few companies have made claims in the area (Culliney, 2012). Considering that individuals over 50 years constitute a major proportion of purchases of breakfast cereals, a growth in the market for fortified cereals is anticipated. Further growth can be achieved by altering the ingredients used in these cereals. For instance, omega-3, linseed, chia seeds, flax seed and poppy seeds could be added to enrich the nutritional value of these breakfast cereals (Culliney, 2012). Fortified cereals that include special ingredients such as zinc, iodine and GABA could be provided to this age group. Most importantly, segmenting via age could be a misleading idea. It is wrong to assume that consumers aged 55-75, for instance, have similar needs because they do not (Culliney, 2012). For instance, it would be useful to create sub- segments in this age group such as thrivers, seniors, elders and survivors. Furthermore, individuals over 50 dislike the idea of being overtly targeted at on the basis of their age (Hought, 2008). Therefore, marketing should be aimed at health benefits or other perceived benefits of the cereal rather than age. 2. Product Strategy Nestle has not yet tapped the highly profitable segment of hot cereals. This comes as a surprise since our competitor, Kellogg’s, has already launched its hot cereal â€Å"pots† which could lure consumers over 50 looking towards microwave cereals. Therefore, our company shall introduce an entirely new product named â€Å"Nestle Live Long Hot Pots† which would offer greater indulgence for our over 50 consumers who spend longer time having breakfast. This product would not only be low in terms of calories but also low in sugar and, therefore, safe for individuals with diabetes in this target group. However, low calories shall not be the thrust of this product as consumers want high nutritional value and not just low