Overcoming Competition in the Cereal Industry

Overcoming Competition in the Cereal Industry

The cereal industry is a critical part of the food market around the world, but competition and market maturity are high. This is because there are virtually all kinds of brands competing for the consumers attention and this has made it very difficult for the business to sustain market share. In this guide, we discuss the problems in the cereal market and provide practical tips on how to overcome them and gain a competitive advantage.  


Competitors’ Analysis in the Cereal Industry

The cereal market is one of the most competitive segments within the food industry. Several factors contribute to its challenges:  


Major Problems affecting Cereal Business


Market saturation 

It is one of the biggest threats that can affect a business, and in this case, the company should be able to overcome this problem. This is because markets become fairly saturated, and it becomes difficult to distinguish between the new and the old brands. This means that one of the key success factors is having products that are different from those of the competitors.  


Adapting to Consumer Trends  

Due to the changes in consumers’ preferences, especially those who are currently conscious of their health, traditional cereals have low demand.  

Example: A lot of brands are now offering gluten-free, vegan, or protein addition to the product due to new trends.  

Competing with Big Players  

Large brands control most of the store space and advertising and this leaves little room for growth for new players.  


Market Strategies to Counter Barriers


Accept New Product Development  

Add value added products, healthier foods or new products to capture small niche market segments.  

Discover how you can boost your branding with custom cereal packaging boxes that are environmentally friendly.  


Use Competitive position  

Remember to set your competition on your brand’s strengths which may include quality, use of quality ingredients, customer relations among others. Emphasize on the use of locally available ingredients. Sell different types of cereals packed in a manner that allows the client to get their preferred combination.  


Create a brand image  

Brand identity helps customers to be loyal and even to identify a certain product or service.  

Steps to Build a Strong Brand:  


Invest in Digital Marketing  

In the current world of business, any business that wants to tap into the modern consumers needs to have an online platform.  


Building Strategic Partnerships  

Partner with other businesses or organizations in order to reach out to other people.  


Expand Distribution Points  

Include other outlets apart from the physical shop to target other people.  


Maintaining Customers in a Competitive Industry


Surprise Individual Customers  

Recommendations that are specific to the customer, or products that are customized for the customer leave a long-lasting impact.  

Example: Suggest products that a customer has never bought before, yet are likely to be interested in, based on ‘big data’.  


Offer Loyalty Programs  

Loyal customers should be offered a discount or free items or products that are out of season. Reward customers to make subsequent purchases, by incorporating fun aspects into their loyalty programs.  


Customer Feedback

Another of the key strategies to be adopted is therefore the constant consideration of customer feedback. Encourage the customers to express themselves on how the company can enhance its products and services.  


Promoting Customer Experience


Focus on Packaging Design  

It is a fact that the attractiveness and functionality of the packaging can help to determine the consumer’s choice. Time to raise the appeal of your cereal products with custom packaging for fresh designs.  


Ensure Product Quality  

Customers must be satisfied and trust your business hence the need to uphold high standards.  


Trends in the Cereal Industry


Health and Wellness  

The market trends for cereals are organic, non-GMO and low sugar options. Those brands that are able to connect with these trends will be ahead in the market.  


Sustainability

Customer preferences, including environmentally friendly packaging, are well received in the modern world.  


Technology Integration  

Applying artificial intelligence and big data to forecast and customize the experience is now revolutionizing the business.  


Case Studies: Brands Sustaining a Competitive Environment


Kellogg’s  

Kellogg’s has over the years been able to change with the changing trends through introduction of new products in its product line, and a strong brand image.  


Nature’s Path

This brand appeals to the current trend of organic food products and environmental friendly products.  


Conclusion

The competition in the cereal industry is rigid, however the future is bright for those companies willing to think out of the box and satisfy the customer and also follow the trends in the market. This is a highly saturated market and brands that are willing to engage strategy partnerships, work on brand image, and follow sustainable strategies will succeed in this market. Always assess your strategies and apply the conclusions you get for the purpose of outcompeting others. As the competition heats up, it’s important to remind ourselves that it doesn’t get easier and it takes creativity, persistence, and a customer-oriented strategy to succeed.