Berry Burst Cheerio Case Study #2 February 2, 2015

Bruce Davis, Manish Kumar and Aurelie Croze

Background: General Mills launched Berry Burst Cheerios in 2003 shortly after several competitors also launched new cereal SKUs featuring dehydrated fruit. While the launch was incredibly successful, the marketing campaign targeted a very broad market and as a result, sales for the new product fell flat several months after the launch. Refining the target market and repositioning BBC to appeal to the market’s preferences and needs will give BBC the boost it needs.

Recommendation for Refined Second Generation Target:Married suburban women between the ages of 30-45 with school-aged children. Her focus is caring for herself, her husband and her children, making sure that her family’s needs are met. She is busy, so convenience is important to her, as is ensuring that her family is happy and healthy. She’s been trying to provide healthier options, but, she something gets pushback, which makes her frustrated and disappointed, and so, she is always looking for an exciting new healthier option that her family may also enjoy. She wants to buy cereal that is appealing to her children but is unwilling to buy sugary cereals traditionally marketed to children. She worries about her husband’s health and relies on the traditional heart-health benefits that Cheerios offers.

Perception of the Berry Burst Cheerios currently in the eyes of the “Target Consumer:”The BBC subtly highlights the classic benefits of “Cheerios” to heart-health but doesn’t make a strong appeal or connection to the consumer, especially the new Cheerio’s consumer. The campaign focuses on the connection that an existing Cheerio’s consumer already has with the brand but does not educate new consumers about the benefits of the product. The target consumer’s perception is that this product is just another flavor option within the Cheerios family but is meant to appeal to consumers who currently eat Cheerios. Because no people are featured, it is unclear who this product is intended for. The choice of music, visuals and themed “love story” reflects Cheerio’s heritage traditionally appeals to an older demographic but the campaign doesn’t position the product as relevant today.

Recommendation for repositioning BBC:Play to increase taste in a healthy and natural way with real fruit. Appeal to consumers who are already drawn to Cheerios because of its nutritional benefits but improve the taste in a way that is consistent with the motivation to eat a healthier cereal ie. The inclusion of real fruit instead of marshmallows. This cereal appeals to the whole family across a range of health-conscious motivations. Our recommendation in the reposition is to focus claims on taste and the cereal’s benefit of improving taste in natural ways. The claims featured would be stronger in taste than HNC and SKRB but slightly lower on health than these two competitors.

Product ClaimWeight or Health Benefit

HNCSKRB

Taste

BBC

HBO w/SB

Fruit Harvest

BB