Table of Contents
Issues in the Market
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- Definitions
- Four key issues
Insights and Opportunities
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- Organic breakfast cereals are the biggest opportunity
- Seasonal cereals
- The No Breakfast Brigade
Fast Forward Trends
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- Customization
- What’s it about?
- What we’ve seen
- Implications/what next?
- Authenticity
- What’s it about?
- What we’ve seen
- Implications/What next?
Market in Brief
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- Consumers are trading up
- Breakfast is back
- RTE cereals jump on the oat bandwagon
- Cereal success
- Prices are set to rise
- Premiumisation to continue
Internal Market Environment
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- Key points
- The health revolution
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- Figure 1: Agreement with selected lifestyle statements, 2003-07
- Health is the key driving force of sales and NPD
- Skipping breakfast
- The way to start the day
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- Figure 2: Agreement with selected lifestyle statements, 2003-07
Broader Market Environment
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- Key points
- FSA nutrient profiling and Ofcom Advertising Ban
- Cereal prices
- An ageing population
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- Figure 3: UK population changes, by age and socio-economic status, 2002-12
- Going upmarket
Competitive Context
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- Key points
- Toast and fruit are the key competitors
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- Figure 4: Product eaten at breakfast and frequency, December 2006
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- Figure 5: Product eaten at breakfast and frequency, December 2006
- Bread
- Yo‘go’urt
- Fruit on top
- Cereal bars are growing
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- Figure 6: Opportunities and threats in the competing markets, 2002-06
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
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- Figure 7: UK launches of breakfast cereal products by health claim and year, 2003-07
- Light and crispy
- Gooey on the inside
- Luxuriously healthy
- Packed up and ready to go
- Superfood: super appeal
- The targeting strategy
- Totally tropical taste
- Big flavours
Market Value and Forecast
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- Key points
- Consumers are trading up
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- Figure 8: UK retail sales of breakfast cereals, 2002-07
- The future
- Rising cereal prices
- Increasing frequency of usage will be key
- Forecast
- Healthy growth set to continue
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- Figure 9: UK retail sales of breakfast cereals, 2002-12
- Health to remain a crucial market driver
- Demographic changes to promote growth
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- Figure 10: UK retail volume and value sales of RTE cereal, 2002-12
- Figure 11: UK retail volume and value sales of hot cereal, 2002-12
- Higher growth potential for hot cereals
- Rising cereal prices
- Factors used in the forecast
Segment Performance
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- Key points
- The kings of breakfast cereals
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- Figure 12: UK retail volume and value sales of RTE cereal, 2002-07
- Easy to eat the perfect proposition
- A stable staple
- Shape of the market
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- Figure 13: Value share of sub-sections of the RTE breakfast cereal market, 2007
- I’ll have my favourite
- Doing it for the kids
- From reducing to naturally good
- The oat effect drives naturally healthy
- Minor organic
- Cold oat-base cereals have stolen hot cereals’ thunder
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- Figure 14: UK retail volume and value sales of hot cereal, 2002-07
- Own-label repercussions
- Hot instant cereals are growing
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- Figure 15: UK retail volume sales of hot cereal, by type, 2003-07
Market Share
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- Key points
- Branded successful
- Very special K
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- Figure 16: The top-selling breakfast cereals in the UK, by estimated brand shares, 2006-07
- The health effect
- No compromise on favourites
- Oatso successful
Product Positioning
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- The reign of traditional brands
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- Figure 17: Price per Kilo of RTE Brands from Selected Supermarkets, January 2008
- The deflationary effect of own label
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- Figure 18: Price per Kilo of Hot-Cereal Brands from Selected Supermarkets, January 2008
Companies and Products
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- Brand map of manufacturers and brands
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- Figure 19: Map of manufacturers and brands in the breakfast cereals market, 2008
- Company profiles
- Kellogg’s UK
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- Figure 20: Key developments in the Kelloggs portfolio, 2007
- Cereal Partners UK (Nestlé)
- The Weetabix Food Company
- Quaker Oats Ltd
- W. Jordans Ltd
- Dorset Cereals Ltd
- Mornflake Oats
- Kallo Foods Ltd
- Doves Farm Foods
- Weight Watchers
- Honey Monster Foods
Brand Elements
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- Brand map
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- Figure 21: Attitudes and usage of breakfast cereal brands, January 2008
- Weetabix
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 22: Attitudes towards the Weetabix brand, January 2008
- Kellogg’s Special K
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 23: Attitudes towards the Kellogg’s Special K brand, January 2008
- Alpen
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 24: Attitudes towards the Alpen brand, January 2008
- Jordans
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 25: Attitudes towards the Jordans brand, January 2008
- Crunchy Nut Corn Flakes
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 26: Attitudes towards the Crunchy Nut Corn Flakes brand, January 2008
- Shreddies
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 27: Attitudes towards the Shreddies brand, January 2008
- Oatibix
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 28: Attitudes towards the Shreddies brand, January 2008
- Scott’s Porridge Oats
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 29: Attitudes towards the Scott’s Porridge Oats brand, January 2008
- Brand qualities of breakfast cereal brands
- Weetabix and Scott’s Porridge Oats are the healthiest and most nutritious, but Crunchy Nut is the most fun, exciting and indulgent
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- Figure 30: Consumer usage of various breakfast cereal brands, January 2008
- Experience of Breakfast Cereal brands
- Weetabix the most popular
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- Figure 31: Consumer usage of various breakfast cereal brands, January 2008
- Brand consideration for Breakfast Cereal brands
- Retention dominated by Weetabix
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- Figure 32: Consideration of various breakfast cereal brands, January 2008
- Brand momentum for breakfast cereal brands
- Most brands in positive shape, and the healthiest and the least healthy lead the field!
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- Figure 33: Momentum of various breakfast cereal brands, January 2008
- Brand satisfaction for breakfast cereal brands
- Scott’s Porridge Oats demonstrates excellent satisfaction and pride.
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- Figure 34: Satisfaction of various breakfast cereal brands, January 2008
- Brand commitment to Breakfast Cereal brands
- SPO, Weetabix and CNC have the highest recommendation
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- Figure 35: Commitment to various breakfast cereal brands, January 2008
- Round up
Brand Communication and Promotion
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- Key points
- Spending spree
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- Figure 36: Main monitored media spend on cereals, 2003-07*
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- Figure 37: Main monitored media spend, on cereals ready to eat and cereal requiring preparation, 2003-07*
- Seasonality
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- Figure 38: Monthly main monitored media spend on breakfast cereals, 2005-07
- The mighty Kellogg’s
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- Figure 39: Main monitored media spend, by advertiser, 2003-07
- Nominal spend
- Cereals requiring preparation
Channels to Market
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- Key points
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- Figure 40: UK retail distribution of breakfast cereal, 2003-07
- Multiple strengths
- Acting independently
- Multiple convenience
Consumer 1 – Who – Usage and Frequency?
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- Key points
- Cold breakfast cereals are a key part of the breakfast ritual
- Consumption of cold breakfast cereals
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- Figure 41: Consumption of cold breakfast cereals in the last 12 months, 2003-07
- Feeding the masses
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- Figure 42: Consumption of cold breakfast cereals in the last 12 months, by gender, age and socio-economic status, 2003-07
- Retired and ABs have daily breakfast
- Hot breakfast cereals growing as manufacturers talk up the game
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- Figure 43: Consumption of hot breakfast cereals in the last 12 months, 2003-07
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- Figure 44: Consumption of hot breakfast cereals in the last 12 months, by gender, age and socio-economic status, 2003-07
- Consumers eat both hot and cold cereals
- Cereal bars are a different competitive set
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- Figure 45: Consumption of cereal bars, cold breakfast cereals and hot breakfast cereals in the last 12 months, 2003-07
- Cereal has a firm hold on the youth market
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- Figure 46: 7-14-year-olds who eat cereal, 2003-07
- 13-14-year-olds: the key target group
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- Figure 47: 7-14-year-olds who eat cereal, by demographic sub group, 2007
Consumer 2 – Usage Occasions
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- Key points
- When do consumers eat cereals?
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- Figure 48: Occasions when you eat cereals, November 2007
- Week usage dominates
- Snacking popular tabloid readers
- New product packaging will help differentiate product
Consumer 3 – Attitudes and Motivations
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- Key points
- The brand factor
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- Figure 49: Factors looked for when buying breakfast cereal, November 2007
- Men choose by brand, women by health
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- Figure 50: Factors looked for when selecting cereals, by gender, November 2007
- Growing the oat-based appeal to younger consumers
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- Figure 51: Factors looked for when selecting cereals, by variation from mean age, November 2007
- Different age groups go healthy in different ways
- Wholegrain for a healthy heart
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- Figure 52: Factors looked for when selecting cereals ‘rich in wholegrain’, by socio-economic status and age, November 2007
- The organic effect
Appendix
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- Advertising data
- Abbreviations
Appendix – Internal Market Environment
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- Number of times a week people eat breakfast
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- Figure 53: Number of times consumers eat breakast per week, January 2007
- Figure 54: Agreement with selected lifestyle statements, by demographic sub group, 2007
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- Figure 55: Agreement with selected lifestyle statements, by demographic sub group, 2007
- Figure 56: Agreement with selected lifestyle statements, by demographic sub group, 2007
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- Figure 57: Agreement with selected lifestyle statements, by demographic sub group, 2007
- Figure 58: Agreement with selected lifestyle statements, by demographic sub group, 2007
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- Figure 59: Agreement with selected lifestyle statements, 2003-07
Appendix – Market Sizes
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- Figure 60: UK retail volume and value sales of breakfast cereal, by type, 2003-07
- Segment performance
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Appendix – Brand Communication and Promotion
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- Figure 61: Main monitored media spend by advertiser, 2003 - 07
- Figure 62: Main monitored media spend, by advertiser, 2003 - 07
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Appendix – Consumer 1 – Detailed Demographics
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- Figure 63: Consumption of hot breakfast cereals in the last 12 months, by demographic sub group, 2007
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- Figure 64: Consumption of cold breakfast cereals in the last 12 months, by demographic sub group, 2007
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Appendix – Youth TGI
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- Figure 65: Agreement with selected lifestyle statements on food, 7-10s, 2003-07
- Figure 66: Agreement with selected lifestyle statements on food, 11-14s, 2003-07
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- Figure 67: Agreement with selected lifestyle statements on food, 7-10s, by gender, age, socio-economic group and region, 2007
- Figure 68: Agreement with selected lifestyle statements on food, 11-14s, by gender, age, socio-economic group and region, 2007
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Appendix – Meal Occasions
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- Figure 69: Meal occasions for eating breakfast cereal, November 2007
- Figure 70: Meal occasions for eating breakfast cereal, November 2007
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Appendix – Factors Looked for When Choosing a Cereal
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- Figure 71: Factors looked for when choosing a cereal, November 2007
- Figure 72: Factors looked for when selecting a cereal, November 2007
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- Figure 73: Factors looked for when selecting a cereal, November 2007
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