Consumer Preference about Breakfast Products - Assignment Example

Consumer Behavior Survey Saudi Arabia is a country with diverse Cultures and traditions and it is an advanced nation. Its citizens consume breakfast which includes both the traditional and the westernized foods and cereals. Traditional foods like the Helwa (tradition Saudi sweet), lebna, Dates, Dahl, Full and unleavened bread. The Saudis in major towns like Riyadh and Jeddah typically have breakfast like in the western countries including cereals, eggs and majorly scrambled eggs which they call Chakchouka, hot bread and Arabic coffee. Most Saudis have tea which is majorly black tea drank with many dishes accompanied by bread and the traditional accompaniments. When producing a new product (a conventional breakfast product) in the affluent market in Saudi Arabia, it is important to note that this market is composed on individuals who have breakfast like in the western world. The affluent markets are in Jeddah, the Western parts of the country and Riyadh. It should also be noted that the Saudis main meal is lunch and thus they may not be willing to spend more on breakfast. I would introduce banana flavored oat flakes in the market which already contains honey and dried milk into the market. What the consumer only needs to add is hot or cold water to make it ready for consumption. A perception position I would like to draw of the existing Cereals is that there is a good variety of cereals to satisfy the clients in terms of nutritional and monetary value. First perspective is that there could be a product that is manufactured to have a high nutritional value and at the same time be cost friendly with a new sense of flavor and finesse (Hoyer, 2008).. A lot has been done to target consumers by different brands but believe that there is still room for improvement. Second perspective, is that on the Saudi Arabians and their liking for having more than one meal during breakfast is time consuming when preparing the breakfast meals. Thirdly, the distribution in terms of breakfast cereals and products in the area was fairly done. The region still needs a boost to ensure adequate supply of cereal and breakfast products. Producing a breakfast cereal that is nutritious and incorporates all the foods will go a long way in reducing the number of foods that are prepared for breakfast. Production distribution to ensure availability of the goods in the market is one of the positioning strategies I will use to make a breakthrough in the cereals market. Perception Graph of the Nutritional Value over Time of 5 Cereals. Saudi Arabians are strongly guided by the traditional Muslim foods from many cultures therefore acceptance of the Western ways of having breakfast is not wholly practiced by their majority population. Therefore there is a gap in the cereals market due to the fact that the market is not adequately served. The Positioning strategy that I would adopt is Customer benefit strategy. I would basically lure the consumers by giving them the health benefits of oats over corn. Pricing as a positioning strategy will also be used by further marketing the product as pocket friendly in the sense that it does not require one to buy milk separately and this would separate my brand from the rest (Kardes, 2011). I would also adopt my positioning strategy based on use, in the sense that my oat flakes can be used as breakfast cereals by just adding water or they can also be used as an everyday snack because oats have a really soft crunchiness and the combination of the banana, honey and skimmed milk make a great tasty snack, even without the addition of water. Another positioning strategy I would employ is based on product class i.e. fortify my cereals, I would advertise my product as having vitamins, calcium, iron and folic acid but majorly I would concentrate on the fact that it has a distinctive taste and that it has been carefully produced so that the end result is a taste that cannot be compared to any other cereal. The market strategy of introducing my product in the market basically involves selective price cuts of products, intense promotional strategies, targeting areas where leader products are underperforming, serving uncovered market segments and using latest technologies to supplant existing products. Challenger marketing strategy will give me a better chance in attacking easier market. It also gives an opportunity to diversify in new geographical areas hence ensuring business growth and stability. A research I carried out on facebook indicates that most Saudis have their traditional breakfast which consists of black tea with herbal flavoring accompanied with bread which is taken with accompaniments. Most Saudis have breakfast in the morning and those who skip breakfast do so because there is a very short time between when to have breakfast and when they are going to have their lunch. This is because to the Saudis, lunch is there most important meal with their main delicacy as lamb, grilled chicken and rice. The breakfast products available were cereals, snacks, dairy products and poultry. The Marketing techniques majorly used were wide advertising, value additions like coupons and discounts. My product will be introduced in the market using aggressive advertisements, use of internet (facebook advertising which is considered wider word of mouth advertising), value additions (fortification of my products) and follow ups in order to widen the gap between me and my competition i.e. Gain competitive advantage (Lantos, 2011). Most of the consumers of the cereals products are the purchasers of the cereals in the market. They are also influencers as they spread the benefits of the cereals that they use through word of mouth. This is a very effective means of advertising as they tend to effectively influence the tastes and preferences of their immediate friends and close relatives. These consumers are somewhat brand loyal with a majority of them sticking to the parent companies producing oats and breakfast cereals like Proctor and Allan and Nestle. This loyalty is observed as taking a very long time with specific families trusting and using cereal products of a particular company for as long as a ten years and counting. Most of the consumers therefore are not easily open to new products hence an aggressive new product development strategy is to be adopted to cut into the market share that these big multinationals hold the Saudi Arabian market. Most of the big stores in the market employ a strategy of stocking the cereal products under the same shelf name to ensure that no single product gains competitive advantage over the other by different/preferential treatment. According to the survey, I found out that most people will prefer taking cereals for breakfast, since they are easy to prepare. Cereals can also be twisted with reference to flavor; one can add certain fruits and even biscuits to have a variety of flavors like the Flake which are banana flavored that I would introduce in the market. After careful investigation, I found out that most of the colors that the major companies used are strikingly similar. Most were with the dominant color yellow while those without the color have very bright and attractive colors. For my product, Banana flavored oats flakes; the design will not be farfetched from the design of the other companies. I will use the color white for the oats box with dominant brown for the flakes in a big bowl, with warm water in a bowl with a banana lying just beside to symbolize the nutritious value of the oat flakes. Overall this research has made me realize that the Saudi Arabian market can be accessed through aggressive marketing and more value additions to our product to make it a cut above the rest. (Source; Mall images) Research Methodology Research Methods The research method used is survey. This survey included use of questionnaires and internet research. The survey was carried out in a densely populated area and using sampling method and on facebook and yahoo. Objective of the study The general objective of the study was to find out the cereal products in the Saudi Arabian market, their pricing, nutritional value of the cereals and the penetration ability of the new product developed. Justification of the study This study is conducted to understand the market, demand and supply of the product so as to understand what is needed in the market of breakfast and cereals and find out an easy way of penetrating the market, offering the right product, satisfying the target market and making profits. Significance of the study The significance of the study is to ensure that the product to be introduced to the market fulfills the needs in the market and intended purpose. Questionnaire Last Name: First Name: Company: Position: Address: City: State:     Phone: Fax: Email:     1. Do you normally take breakfast? YES (proceed to q. 3) NO (Proceed to q. 2) 2. If NO is the answer above, what is your reason? ON A DIET NOT HUNGRY OTHER (End questionnaire. Thank you) 3. If you do, what do you normally consume? CEREALS FRUITS OR JUICE HOT BREAD OTHER 4. Do you consider breakfast an important meal and why? YES Reason NO Reason 5. What is your preferred alternative breakfast product? BREAD CEREALS FRUITS OR JUICE OTHER 6. How long does it take you to prepare the product that you use? Less than 20 minutes 30 Minutes More than 45 minutes For cereal consumers, Kindly answer the below: 7. What Cereal brand do you use? KELLOGGS CHEERIOS CAP’N CRUNCH OTHER 8. What specific product do you use from the brand above? (Please check all that apply) 8. For how long have you been using this product? Less than 1 Year 2 years 3 to 4 years above 5 years 9. What do you particularly love about this product? 10. If you are to suggest, what would you like to be incorporated into the product? 11. Are you involved in influencing, purchasing or using of the product? Kindly tick as appropriate INFLUENCER PURCHASER USER Work cited Hoyer, Wayne D, and Deborah J. MacInnis. Consumer Behavior. Mason, OH: South-Western, 2008. Print. Kardes, Frank R, Maria L. Cronley, and Thomas W. Cline. Consumer Behavior. Mason, OH: South-Western, Cengage Learning, 2011. Print. Lantos, Geoffrey P. Consumer Behavior in Action: Real-life Applications for Marketing Managers. Armonk, N.Y: M.E. Sharpe, 2011. Print. Read More