Date: April 26, 2015
Class: MKTG320 F1-FF
Subject: Cereal Development Proposal
An Observational Research Analysis was conducted at Kroger on Main Street in Bexley, Ohio. This analysis concluded that among the infinite number of brands and types of cereal, there are market segments whose needs are not being met. Among the health conscious, there is a key market segment not being tailored to. This memo attempts to establish that market and the need for a new type of cereal, custom made for that market.
Healthy cereals are among the least populated types of cereal and consume very little shelf space. Healthy cereal is almost a misnomer. The average cereal has less than 3 grams of fiber, less than 3 grams of protein and an inordinate amount of sugar. This leaves the health conscious with few choices in the way of breakfast cereals. Although the market for healthy cereal is gaining in popularity, only about 20 types of “healthy cereal” exist; even fewer are currently stocked on store shelves.
The missing product we have identified is a great tasting, high protein cereal. A person involved in regular exercise, especially bodybuilding or muscular training, is recommended to intake about 1 gram of protein per pound of bodyweight. This number is very close to the .77 grams per pound recommended to college athletes. The number varies slightly depending on the source. Many professional bodybuilders consume as much as 2 grams of protein per pound of bodyweight. With even the highest protein cereal containing a meager 11 grams of protein per serving, this leaves people who engage in regular exercise eating a high protein, but expensive and time consuming meal consisting of bacon, eggs, milk, etc. Often those who exercise will drink a protein shake after exercise, containing 28-32 grams of protein; more if mixed with milk. This difference between...