Swot Analysis for Cereal Bar Market
SWOT analysis for Cereal bar market
Strengths • Meets need for both a healthy and convenience snack, especially targets those who miss breakfast • Popularity increased rapidly over past few years – 66% growth 2002 – 2007. Mintel predicts market will be worth £420m by 2012 from £287m in 2007. (Marketing magazine) • Popularity amongst parents for children – alternative to crisps and sweets e.g CoCo pops bars • Increase in number of products containing only natural ingrediants and no artificial additives • Some contain more fruit than governments recommended five-a-day
Weaknesses • Sector becoming confusing to the consumer with new launches from cereal, confectionary and biscuit brands • Not a staple food unlike cereal; as food bills rise and especially at moment if consumers are cutting back, sales may be affected. Porridge sales in UK especially have risen. • Real health benefits questionable – high levels of added sugar – Nutri-Grain is a third sugar. Future issue of level of perceived health benefits • Men less likely to purchase and older shoppers unconvinced
Opportunities • Target especially this younger male business segment • Market our fresh, simple, product that can be distinguished easily • Cereal bars have been extended from originally a breakfast on-the-go snack to a ‘healthier’ alternative to chocolate or other snack item. Huge scope for the development of sub-categories and flavours which means possible potential for us to sell as an afternoon snack, not just in morning • Market is becoming saturated – ‘innovation and diversification will be key at this pivotal time.’ (Marketing magazine) • Superfoods trend has really taken off such as blueberries – reflect this in our fruit selection • Take advantage of increase of popularity for porridge – make available to take-away
Threats • Most people buy multi-packs from supermarkets rather than single bars on the
Strengths • Meets need for both a healthy and convenience snack, especially targets those who miss breakfast • Popularity increased rapidly over past few years – 66% growth 2002 – 2007. Mintel predicts market will be worth £420m by 2012 from £287m in 2007. (Marketing magazine) • Popularity amongst parents for children – alternative to crisps and sweets e.g CoCo pops bars • Increase in number of products containing only natural ingrediants and no artificial additives • Some contain more fruit than governments recommended five-a-day
Weaknesses • Sector becoming confusing to the consumer with new launches from cereal, confectionary and biscuit brands • Not a staple food unlike cereal; as food bills rise and especially at moment if consumers are cutting back, sales may be affected. Porridge sales in UK especially have risen. • Real health benefits questionable – high levels of added sugar – Nutri-Grain is a third sugar. Future issue of level of perceived health benefits • Men less likely to purchase and older shoppers unconvinced
Opportunities • Target especially this younger male business segment • Market our fresh, simple, product that can be distinguished easily • Cereal bars have been extended from originally a breakfast on-the-go snack to a ‘healthier’ alternative to chocolate or other snack item. Huge scope for the development of sub-categories and flavours which means possible potential for us to sell as an afternoon snack, not just in morning • Market is becoming saturated – ‘innovation and diversification will be key at this pivotal time.’ (Marketing magazine) • Superfoods trend has really taken off such as blueberries – reflect this in our fruit selection • Take advantage of increase of popularity for porridge – make available to take-away
Threats • Most people buy multi-packs from supermarkets rather than single bars on the