Swot

SWOT analysis for Cereal bar market

Strengths

• Meets need for both a healthy and convenience snack, especially targets those who miss breakfast

• Popularity increased rapidly over past few years – 66% growth 2002 – 2007. Mintel predicts market will be worth £420m by 2012 from £287m in 2007. (Marketing magazine)

• Popularity amongst parents for children – alternative to crisps and sweets e.g CoCo pops bars

• Increase in number of products containing only natural ingrediants and no artificial additives

• Some contain more fruit than governments recommended five-a-day

Weaknesses

• Sector becoming confusing to the consumer with new launches from cereal, confectionary and biscuit brands

• Not a staple food unlike cereal; as food bills rise and especially at moment if consumers are cutting back, sales may be affected. Porridge sales in UK especially have risen.

• Real health benefits questionable – high levels of added sugar – Nutri-Grain is a third sugar. Future issue of level of perceived health benefits

• Men less likely to purchase and older shoppers unconvinced

Opportunities (for us)

• Target especially this younger male business segment

• Market our fresh, simple, product that can be distinguished easily

• Cereal