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Breakfast Cereal Market Analysis Report

Added on - 15 Apr 2020

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Running head:ECONOMICS ASSIGNMENTECONOMICS ASSIGNMENTName of Student:Name of University:Author Note:
1ECONOMICS ASSIGNMENTBreakfast Cereal Market Analysis:Breakfast cereals earn substantial importance in our daily life irrespective of difference intaste, preference and culture across various countries. Owing to the fact of existential enormity ofthe suppliers in the market, breakfast cereal can be termed as one of the important market tofollow monopolistic competition structure. While studying the broad market structure of theproduct, the essay aims to present the comparative scenario with respect to introducing theproduct differentiation strategy. The discussion ends with evaluating the efficacy of the decisionof differentiation strategy.Many producer brands are visibly operating in the breakfast cereal market to meet thedemand of innumerable consumers globally. This has led to immense competition in the marketthat forces different companies to come up with products different from others. This is done notonly to capture the attention of the consumers but also it leads to one of the important businessstrategy changing the future of the brand with subsequent changes in the market operation(Chisholm & Norman, 2012). In general there are few eminent market players in this productmarket for example, Kellogg’s, Baggrys, Marico, PepsiCo along with other small brands of localimportance. Broadly, the brands have two segments of production;Ready to eat Breakfast Cereals: This segment comprises of Cornflakes, Muesli and othersHot Breakfast Cereals: This segment mostly includes oats and others.In absence of product differentiation, the production of same type of goods lead to perfectcompetition in the cereal market, which makes the producers complete price taker and firms,earn normal profit. Any changes in price say increase in prices makes one firm loose the marketshare as people switch to other brands providing the same products at lower price.
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