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Breakfast Cereals Industry AnalysisSubmitted By:Devils AdvocateShorya ChaplotArjit GuptaUjjwal AggarwalMarket OverviewThe Indian premium cereal market is growing rapidly at a rate of 24% with a market size of Rs 14.5 billionThe major players in cereals market are: Kellogg's, Quaker, Mohan Meakin, Marico, Frito lay etc. with Kellogg's leading the way with 37% market shareThe influence of western lifestyle led to increased growth of cereal as a breakfast substitute

Cereals are perceived as a light weight and healthy breakfastThey are basically categorised as hot cereals and ready to eat cerealsThe market is going to be flooded with different variants of cerals in the near future mainly oats, muesli and sugar less or sugar freebreakfastcereals

The major concern of cereals market in India is to offer a tasty as well as a healthy product which will cater the needs of common man at an affordable price

Value Chain AnalysisSUCCESS DRIVERSConvenience - people are preferring options that are healthy and easy to cook showing that consumer lifestyles arechanging. Breakfast cereals like flakes, oats and muesli are able to fill this gap due to ease in their preparationHealth - consumers are becoming aware about benefits of a healthy diet. Breakfast cereals are high in nutrient content and multinationals are taking initiatives to highlight theimportance of it. Even the growing incidences of lifestyle diseases in urban households have made the consumers to shift to these nutritious and low fat breakfast cerealsTime constraints - breakfast cereals is becoming a preference of middle income group as it provide fast and healthy options to them. Consumers, especially mothers, are able to spend time in other activities due to the reduction in preparation time of these delicious products Trust trust has been an important factor among customers. In FMCG sector, trust has become synonymous to brand and quality. The breakfast cereals present in the market are branded, and have gained the trust among the consumers

INHIBITORSLack of freshness the breakfast cereals present have either no vegetables/fruits or vegetables/fruits that are dried thus giving no sense of freshness. With Indian customer who believe that something that is fresh is healthier, it is a requisite to come up with a fresh fruits or vegetables variant Lack of taste - bland taste of flakes, oats or muesli are not liked by the consumers who are looking for healthier options, thus different flavors of breakfast cereals are required which have been coming up in the retail marketInflexibility - ready-made mixesalreadyinclude all required ingredients and hence further addition of spices or vegetables might result in distasteful food. This creates an inflexibility as there is a given standardized recipe for every ready-made mix and these recipes are created catering to majority consumers which leaves a limited scope for customization

Buyer power has decreased and has become controllable. Breakfast cereals are seeing a lot of innovation based on market research and what customer wants and has tried to reducethe bargaining power of buyer by adopting a good marketing strategy.

Substitutes like cereal bars and poptarts have also come up thus increasing the number of substitutes and creating a more competitive marketBuyer power has decreased and has become controllable. Breakfast cereals are seeing a lot of innovation based on market research and what customer wants and has tried to reducethe bargaining power of buyer by adopting a good marketing strategy.

Substitutes like cereal bars and poptarts have also come up thus increasing the number of substitutes and creating a more competitive marketTrend AnalysisPorters Five forces analysisYear 2010Year 2015PRIMARY RESEARCHA survey was floated form to know about what are the needs of the consumer and what are the further products that they would like to have in the marketThe no. of respondents that filled the survey were 83, an we took 17 responses physically to complete the target of 100We asked them questions like how often do you have your breakfast, what are the reasons for you missing the breakfast, what do they prefer in the breakfast and if they would like to try new offeringsWe proposed three products for the consumer i.e. Protein shake, a protein bar and Honey and Dry fruit biscuitsIt was observed that 48% of respondents miss their breakfastThe reason for their missing the breakfast was that they didnt have time in the morning42% of respondents said that they would buy Protein shake if offered in the market SECONDARY RESEARCHMore than 30 percent of us start our days on an empty stomachPeople who do eat a morning meal are nearly 50 percent less likely to beobese than those who don't, according to a Harvard University studyStudents who ate breakfast scored an average of 22 percent higher on word-recall tests than those who didn't, according to a University of Wales-Swansea studyAccording to the NPD Group/Morning MealScape 201, people usually skip breakfast as they are getting late or are usually too busyThe essential things that make our breakfast healthy are whole grains, proteins, fiber, calcium. So we need these things in our offering

Primary Research resultsPRODUCT OFFERINGAs Protein Shakes was the most preferred product according to the survey and also it meets the need of the consumers, so we propose a new product PROTEIN SHAKE in the marketThe product will be available in tetra pack of 250ml, 500ml and 1LThe shake will have 20% protein, 10% carbohydrate, 5% fatThe product will initially be available in chocolate flavor but with the span of time, we look forward to expand out product line as per the responseProtein Shakes are a perfectly portable, on-the-go way to grab breakfast (or lunch or dinner)!PLACEIn phase 1 the product will be rolled out in organized retail stores like Reliance Fresh, Easy Day where there is regular customer visiting the stores who are working professionals and also health consciousThe product can also be placed in large pharmacy storesGyms and fitness clubs can also be the places where the product can be placedThe product can be placed in hospitals or there can be an agreement between dieticians and the company so that the dieticians will recommend the product to patients considering the health benefits that the product havePRICEAccording to the three products, 1L- Rs. 90500ml- Rs 50250ml- Rs. 30The pricing has been done by competitor pricing strategyAlso, for a particular breakfast serving, a 250ml serving is recommended which will cost a consumer Rs 30 per mealComparing this price to other breakfast options say oats, which cost Rs15- Rs20, it will be a better option, as there is no need to prepare the shake, it is RTEWith respect to other breakfast options like Dosa, idli etc. they also coat a customer almost a same pricePROMOTIONThere will be a promotional event on National Breakfast Day i.e. March 18 and on Worlds Heart Day on April 7Using mix of advertising media such as TVCs, digital marketing, newspapers etc.Product placement in movies or TV shows where product can be associated as a regularly taken by working professionalsSponsoring TV shows such as master-chef, or use of product in the TV shows like khana khazana to come up with innovative recipes with the product

Segmentation:We segment our customers on the basis of age group and health consciousness

Target:We will target office goers and college students who eventually misses there breakfast and are health conscious

Positioning:As a health drink, a supplement of proteinAs a ready to eat and portable breakfast productTHANK YOU