UK Breakfast Cereal Market Analysis: Kellogg's Marketing Strategies

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PRINCIPLES OF MARKETING AND
COMMUNICATION IN A DIGITAL
WORLD

UK Market for breakfast cereals

Market analysis:
• Britain has the biggest consumer base on breakfast cereals
in all of Europe
• Per capita spending on breakfast cereals by the country is
more than France, Germany and Spain
• Kellogg's and Weetabix presently dominate the cereal
market in the UK

Market analysis contd…
• Revenue in this market segment amounts £1,468m as in
2019
• The market is expected grow by 0.6% in this financial year
• Per person revenue has been generated as much as £22 in
2019 so far
• The average per capita consumption in 2019 so far has
been 6.3 kg

Revenue in breakfast cereals
market
In the year 2019,
revenue in this
segment amounts to
£1,468m

Revenue growth in breakfast
cereals market
Revenue growth for the
year 2019 so far has
been 0.6%

Average revenue per person
Per capita revenue in the
year 2019 so far has been
£22.00

Price per unit of breakfast cereals
• The average per unit price of a
breakfast cereal box in the year
2019 is at £3.52
• The price per unit at 2018 was
£3.48, thereby indicating an
increase of £0.04 in a year
• The price per unit has been rising
over the decade, as price of an
average cereal box was at £3.22
in the year 2010. Therefore, the
price has increased by £0.30
during the last 10 years.

Challenges in the UK cereal market
segment
• Price per unit of cereal boxes is considered premium by the
consumers at large, thereby demanding products at a
cheaper rate
• The breakfast cereal segment faces a lot of competition in
the UK market. Therefore, the producers have to diversify
their resources to satisfy the consumer needs
• Consumers differing on the basis of demographics has
different needs based on their demographic variations. It is
difficult for producers to satisfy the needs of every
consumer accordingly, by manufacturing diverse range of
products

Leading cereal brands in the UK
1. The market is
currently dominated
by ‘Kellogg’s’
2. Followed by
‘Weetabix’ with a
close competition
3. ‘Nestle’ comes in
at 3rd highest, with
the widest range of
products

Marketing mix of Kellogg’s in the
UK
PRODUCT PLACE PRICE PROMOTI
ON

Geographic Region UK
Density Urban
Demographic Age All age groups
Gender Males and females
Income Lower and middle class
Occupation Students, employees, professionals
Education All educational qualifications
Social status Working class, lower middle and middle
class
Family size All
Psychographic Lifestyle Single individuals, extended and nuclear
families
Behavioural Occasions Regular
Attitude Positive
Benefits Sought Variety
User status Active user
Target consumer segment for
applying marketing strategies