The Cereal Box Project
Product Planning Team Assignment
You have been employed by a major manufacturer of a nutritious and delicious breakfast cereal. Your first assignment is to work with a team that has been given the responsibility of developing a brand new cold breakfast cereal. Your product manager will be giving you a description of the target market for this new cereal, but your team has to come up with the product ideas, packaging, brand name, label information, warranties, etc. Your team will also be creating a print or television ad that is designed to reach your target market. Once you have developed your new cereal, you will be trying to sell you product manager (teacher) and stockholders (the class) your new, delicious breakfast food.
Oral presentation will:
Describe the target market,
Describe your new cereal including special features and premiums,
Show your package and point out its important features including: logo and trademark, ingredients, nutritional information, UPC, etc.,
Present your magazine advertisement.
This is a TEAM effort and it will require each member to complete a specific part of the project. Each team member will get “team” points for the overall project and presentation, as well as “individual” points for their specific assignment.
The following information will give you all the information you will need to successfully complete this important assignment. You should have plenty of time to work on this project (including some class time), you will be expected to produce a quality product and give a professional presentation. Make sure that all aspects of your new product are well coordinated and appeal to your target market.
Each member of your cereal project team will be a “manager” over a specific aspect of the project. The three areas are: Marketing Research Manager, Package design Manager, and Magazine Advertising Manager.
In addition, each team member will be expect to contribute to joint decisions including brand name, trademark, slogan, product composition, warranty, etc.
Market Research Manager Responsibilities:
The marketing research manager will be responsible for determining what cereal products already exist in the marketplace and what type of cereal appeals to the target market.
Using the attached form (Market Research Form), the Market research manager will go to a local grocery store and list all the breakfast cereals that appeal to the target market assigned (at least 5). Included in the list will be information such as price, size, cost per ounce, premiums, product feature and composition, and package design.
In addition, using the attached form, the market research manager will survey a minimum of 10 members of the assigned target market. The purpose of this survey is to determine the factors that influence the buyer behavior including price, premiums, nutritional content, etc.
Package Design Manager Responsibilities:
The package design manager will be responsible for designing the package that will contain your cereal. The package should include: the brand name, trademark, ingredients, nutritional information, manufacturer, weight, warranty or guarantee, instructions etc. you will also need to include something for the back panel such as a game, promotion, activity, etc. If your cereal includes a premium, you will need to include a prototype of the prize as well.
As package design manager you will have to make your package from scratch, you may use an existing box; however, cover it completely with new paper.
Magazine Advertising Manager Responsibilities:
The advertising manager will be responsible for creating a persuasive magazine print ad for your cereal. This ad will be designed with your target market in mind and will be published in a magazine that our prospective customer is likely to read. The magazine ad manager will need to create a full page ad using illustrations, body copy, headline, and signature that will develop a desire in the target market to purchase the cereal. During your oral presentation you will need to justify your choice of magazine that will publish your advertisement.
Target Market #1
This target market is made up of girls ages three to eight from middle to upper families. These girls love to be girls (they hate boys). They like to dress up, play with their dolls, watch cartoons, and are in to anything Disney. Their parents make the buying decisions about breakfast cereal based on what their kids want. At the same time, the parents want a cereal that is nutritious, yet fun for the kids.
Target Market #2
This market is made up of boys aged three to eight from middle to upper families. These boys love to be boys (they hate girls). They like to play sports and videogames, watch cartoons, and are in to toy cars, trucks, and action figures. Their parents make the buying decisions about breakfast cereal based on what their kids want. At the same time, the parents want a cereal that is nutritions, yet fun for the kids.
Target Market #3
This target market is made up of children (both sexes) ages eight to 13 from middle to upper class families. These kids are starting to make decisions on their own about what they want. They are starting to become independent and want to be “grown up.” They look to teenagers as their role models, love popular music, and are influenced by actors and musicians. Their parents still make the ultimate decision about breakfast cereal as well as other groceries. Their parents are concerned that the children are growing up too fast and want nutritious food for them. They are concerned that their kids eat too much sugar.
Target Market #4
This target market is made up of people that are diet conscious, mostly women but some men too, ages 17 to 42. They are usually in a high income bracket and are willing to spend money on things that are good for them and can help them to stay (or get) fit and trim. They want a cereal that is low in calories but high in nutrition and easy to eat since they are very active, on-the-run type people.
Target Market #5
This target market is made up of older people ages 55 and up. Many are retired so they may be living on a reduced or fixed income. Price is an important consideration in any purchase decision, they want to know they are getting their money’s worth. This market wants to nutritious cereal that is healthy, has some vitamins and fiber, and is easy to digest. Some of the members of this target market are active and exercise regularly and the others know that they should.
Market Research Part 1
Take this form to a major grocery retailer on the area and make a note of the requested information. Be sure to list all of the competing cereals that appeal to your target market. You need to find a minimum of 5 “competitor cereals.”
Name of Cereal / Product features, price, size, premiums, package design, etc.Market Research Part 2
Using this form to record your findings, survey a minimum of 10 members for your target market. The purpose of this survey is to determine the factors that influence the buyer behavior including price, premiums, nutritional content, etc.
Name of person surveyed / Factors that influence buyer behavior—why do they buy that cereal?Breakfast Cereal Cost List
Basic Cost
*15 oz of cereal with basic $.70
nutritional value
*Box with four color printing and $.32
Wax paper inner wrapper
Add-On costs
*sugar coating$.27
*unique or unusual shapes$.16
*marshmallows$.23
*fruits (raisins, blueberries, strawberries etc.)$.26
*nuts$.24
*reduced fat calories$.27
*high fiber content$.23
*enhanced nutritional value$.32
*box that is larger than 15 oz. or oddly shaped$.16
*foil inner wrapper$.13
*Premium (prize)$.42
*celebrity$.50
*fictional characters$.25
Production Cost Worksheet
Name of Cereal ______
Cost of Cereal$ .70 basic cost
$ ______
$ ______
$ ______
$ ______
$ ______
$ ______
$ ______
$ ______
Cost of box$ __.39__Four colors with wax paper inner wrapper
Box add-on’s$ ______
$ ______
Premium$ ______
Celebrity or $ ______
Fictional character
Total Product Cost$______
Cost to Retailers$______(Total Product cost + 13%)
Cost to Consumers$______(cost to Retailers + 8%)
Oral Presentation and Project
Evaluation
Team Members:______
Oral Presentation / Fair / Good / ExcellentTarget Market
Was the market clearly defined? / 1 2 / 3 4 / 5
Market Research
Summarize results of both consumers and competition / 1 2 3 / 4 5 6 / 7 8 9 10
Description of Cereal
Characteristics, cost, appeal to target market / 1 2 3 / 4 5 6 / 7 8 9 10
Packaging
Brand, TM, ingredients, nutrition, back of box, celebrity / 1 2 3 / 4 5 6 / 7 8 9 10
Advertisement / 1 2 3 / 4 5 6 / 7 8 9 10
Comments:
Final Grade:______
1