skemacereals

Kellogg and Nestle Cereal Branding

Welcome

Welcome to the the SKEMA Cereals blog!

We will be analyzing Kellogg and Nestle Cereals within the French market. Our focus is on three target markets:

Children
Adults
Healthy adult female

We will be comparing a Nestle cereal to a Kellogg’s cereal within each of our three target markets.

Within each of these markets we will compare a Kellogg cereal to a Nestle cereal to determine the use of brand in appealing to each consumer group.

Check back for updates on the overall French cereal market, customer insights, and competition within the market.

Defining the market: The cereals market consists of the retail sale of ready-to-eat cereals and hot cereals.

General information about the cereal market around the world :
• The global breakfast cereals market grew by 4.2% in 2009 to reach a value of $25,637.3 million.
• In 2014, the global breakfast cereals market is forecast to have a value of $31,450.4 million, an increase of 22.7% since 2009.
• The global breakfast cereals market grew by 2.8% in 2009 to reach a volume of 3,791 million kilograms.
• In 2014, the global breakfast cereals market is forecast to have a volume of 4,363.6 million kilograms, an increase of 15.1% since 2009.
• Americas accounts for 64.7% of the global breakfast cereals market value.

Source: Datamonitor, Breakfast cereal, Global Industry Guide January 2011

Highlights of the French breakfast market:
The French breakfast cereals market created total revenues of $907.6 million in 2010, which represent a compound annual growth rate (CAGR) of 1.5% between 2006-2010. In addition, “Ready to use cereals” are the most attractive one for the France cereal market in 2010 with a total revenue of $887.3 million of the overall value in comparison with hot cereals’ market that generated just $20.3 million in 2010. The overall market growth is expected to track the historical trend in the next five years. Moreover, the market consumption volumes increased with a CAGR of 0.5% from 2006 to 2010, by a total amount of 139.5 million kg in 2010. The volume of the market is expected to rise to 144.1 million kg by 2015,

Source: Datamonitor, France – Breakfast Cereals July 2011

Market share of the cereal market:

Kellogg Company is the number one player in the French breakfast cereal market by generating a 40.8% of the market value, and then comes Cereal Partners Worldwide which accounts for 26% of the market.