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Malt-O-Meal Positioning Strategy


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This was the hardest brand that I have to work on purely because their existing key position is value. This student work showcases a strong competitive analysis with a consumer profile in which the main strategy is targeted.

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Malt-O-Meal Positioning Strategy

  1. 1. READY-TO-EAT CEREAL Repositioning Strategy
  2. 2. My role... Gather Analyze Know Suggest
  3. 3. Ready-to-Eat Cereal Strengths Opportunities - Brand recognition and shelf visibility through packaging - Wellness trend - Variety of cereals from originals to emulations - Consumers willing to try something new - Budget sensitive - Cereal is a comfort food - United Way drives at the Mall of America - Used as a snack and meal substitute - Environmentally friendly packaging - Online conversations and contests - Microsite dedicated to most popular cereal Weaknesses Threats - Complaints about taste - Price wars among name brand cereal companies - Inexpensive in appearance - Association with lower income households - Higher price per ounce - Wellness trend - Doesn’t feel family friendly - Limited distribution - Association with lower income households - Children drive variety and have purchase power - Poor visibility
  4. 4. Value Brands Cross Over Brands Cross Over Brands Wellness Brands Malt-o-Meal Ralston Foods Kellogg’s General Mills Post (subdivision of Ralston) Quaker Oats (division of Pepsi,Co.) Kashi (subdivision of Kellogg’s) HQ Minneapolis, MN St. Louis, MO Battle Creek, MI Golden Valley, MN St. Louis, MO Chicago, IL La Jolla, CA Geo Founded in Owatonna, Minnesota in In 1902 Ralcop merged with Purina, and Kellogg’s started in Battle Creek Michigan General Mills was founded in 1856 as the Post was founded by C.W. Post in 1895 Quaker Oats was the first trademarked Kashi (which means “porridge” in Russian) 1919,John Campbell created Malt-O- renamed the company in 1994 Ralston 1906 by W.K Kellogg whose goal it was to Minneapolis Milling Company by Robert Smith with a cereal beverage called Postum. cereal in the US in 1977. Later, Quaker Oats was founded in 1984 by Philip and Gayle Meal hot cereal. By the 1940’s they Foods to stand apart from the animal create a healthier cold cereal. Today and not until the late 1930’s did the company Founded in St. Louis Missouri, Post now was merged together from 4 mills in Illinois Tauber whose goal is was to produce a added ready to eat cereal to their line kingdom. Ralston Foods originated from Kellogg’s is the worlds leading producer invent the “puff gun” and sold it’s first cereal, entering its third year as a subdivision of and Ohio in 1901. Since then Pepsi Co. preservative-free and nutrient-rich breakfast up which sold nationwide. Now Malt-O- St. Louis Missouri, and is the lead of cereal with manufacturing facilities in Kix. Today, General Mills is ranked number 2 in Ralston Foods and is the third largest bought them in 2001 and is sold and ended with all natural seven whole grain Meal is the 5th largest cereal manufacturer of store brand foods that are 18 countries and product sales in 180 the world for producing and selling cereal. branded ready-to-eat cereal internationally. food product. Though Kashi was bought by manufacturer in the United States and sold in grocery stores under the retailers’ countries. manufacturer in the United States. Kellogg’s in 2000, they are independently sells in about 70% of grocery stores. private label. operated in La Jolla California. Employees 1,400 9,000 31,000 29,500 1,500 185,000 (Pepsi Co.) 70 Annual Sales (2009) $548M $3.8B $12.6B $14.7B $1.2B $4B N/A ($2.232B from cereal) Web Site Products •Cold cereal •Cold cereal •Cold cereal •Cold cereal •Cold cereal •Cold cereal •Cereal •Hot cereal •Hot cereal •Hot cereal •Hot cereal •Hot cereal •Hot cereal •Hot cereal •Cereal bars •Cereal / Granola bars •Cereal / Granola bars •Cereal bars •Cereal bars •Cereal bars •Store brand cereal •Cookies/Crackers •Yogurt •Rice snacks •Crackers •Frozen Foods •Toaster Pastries •Frozen meals, veggies and snacks •Frozen entrees •Fruit snacks •Fruit snacks •Cookies •Organic •Baking goods •Pocket sandwiches •Bread •Waffles •Organic •Pasta •Ice Cream price point (cold cereal) $2.50-$5.99 / bag $1.50-$3.50 / box $2.50-$4.50 / box $1.99-$4.50 / box $2.50-$3.50 / box $2.99-$4.79 / box $3.99-$5.50 / box AOR Clarity Coverdale Fury Ogilvy & Mather Aegis Group, The Publicis Groupe, Leo Cossette, Saatchi & Saatchi, Cambell Methun Ogilvy & Mather Goodby, Silverstein & Partners TBG, Barbarian Group Burnett, JWT Media Spending (2009) N/A $756M (6% of sales, all ads for Kellogg’s) $1.7B (8% of sales, all ads for General Mills) $150M (Quaker Oats division) Positioning Malt-O-Meal has positioned itself as the From the viewpoint of a store brand cereal, Recently Kellogg’s has positioned itself General Mills has positioned itself among the With more “adult” cereal than children’s, Quaker Oats has positioned itself within a Kashi has positioned themselves a the top of value cereal that comes in a bag that Ralston Foods positions itself as the among the baby boomers rather than health-conscience ranks switching all the Post has positioned itself among the family setting promoting wellness and fun. the natural health cereal market targeting baby offers similar cereal compared to its number one value brand, mostly focusing children. cereal to whole grain and adding less sugar to first of health cereal with Grape-Nuts in boomers. competitors at a lower cost. on price rather than quality. the children targeted cereal like Lucky Charms. 1897. Currently they are targeting families approaching them with a “healthier” option to kids cereal. Brand Personality Value, Family, Variety Value, Family, Variety Heath, Family, Variety Wellness, Family, Fun Wellness, History, Family Family, Wellness, Tradition Wellness, Adventure, Energetic Message “The savings are in the bag” N/A “Bringing our best to you” “Nourishing Lives” N/A “Oats do more” “Seven whole grains on a mission” Other Malt-o-Meal has 24 cold cereal Ralston offers high quality emulations of Kellogg’s has 58 cereal products General Mills makes 28 cereal products. Post has 27 cereal products. Quaker Oats currently has 17 cold cereal All of the paperboard Kashi uses is made from products and 5 hot cereal products. more than 35 national brands. When (1 product includes all variates of Krispies Other General Mills brands includes Betty products the most popular being Life. 100% recycled sources, with a minimum of placed on the store shelves, store brand for example) Crocker, Yoplait, Colombo, Totinos, Jeno’s, 35% post-consumer content, and is cereal typically lives next to the name Kellogg's brands include, Keebler, Pop- Pillsbury, Green Giant, Old El Paso, Haagen- recyclable. brand it emulates, thus showing the price Tarts, Eggo, Cheez-It, Nutri-Grain, Rice Dazs,Hamburger Helper, Nature Valley, difference. Krispies, BearNaked, Morningstar Farms, Cheerio, Lucky Charms and Wanchai Ferry. Famous Amos, Special K, All-Bran, Frosted Mini-Wheats, Club and Kashi.
  5. 5. Competitive Positioning Family Less expensive More expensive Wellness
  6. 6. Archotype Positioning Change The Lover The Advocate The Caregiver The Creator Belonging Independence The Regular Guy The Jester The Outlaw Stability
  7. 7. Audience Segmentation Segment College Students Lower Income Suburban Bachelors Mothers Mothers Value $364/ yr $748 / yr $312 / yr $546 / yr (2 Boxes a week) (1.5 Boxes a week) (3 Boxes a week) $3.50 / Box (4 Boxes a week) Price / Competitive Awareness / Price Competitive Perceptions Barrier The best bang for my buck. Not sold in all stores, and There are many cereals to This cereal is not as good There are many cereals to not brand loyal. The best choose from. (clean, tasty or healthy) as the choose from. bang for by buck. cereal that come in boxes. Remind by increasing product Remind by increasing product Re-Acquire by increasing Acquire by increasing product Comm. knowledge through encourage- knowledge through encourage- encouragement of trial, and knowledge and trust by trail. ment of trials or coupons. ment of trials or coupons. gaining preference over other Objective cereals or snacks.
  8. 8. Demo: Ages 27-37, College Educated, Household income $55k/yr., skewed married and have at least 2 younger children (0-10 years old). Media Consumption: Internet (blogs and search engines), Television I Believe: My life is “perfectly imperfect” Itʼs the little things that matter, especially I shop hugs and kisses Veggies should be fun for my children Stranger Danger is real My job should fit into my family life
  9. 9. ;<=<>?! F)7:!=! !"#$%&'(%)"*()* Don’t sweat the small stu . +,$&-##*.)/&#-01! !""#$%&&'#()*+,%)#-.),%&/01#2#+*--30/+.&/*04#5$.,/016#7%."46#8+*-9# Ready- to-eat cereal and hot cereal "#!$%%&'!()**+!%$$),-!+%.!,)$,)-/0#12+!-34,*!54+-!*/4*!)#6%.,41)!0#&070&.42!)89,)--0%#:! Get the cereal kids know, while getting the biggest bang for the buck. 2-((34*'#*'*5)6'"4*-6$'(7-(%8'003*/"9-&#('"9#*57'(*6)9-&"*5)6-"*5'"(:"--9;**<7/#=!! !L,%70&)-!$2452)--!9,%&.6*-!*/4*!6%7),!*/)!B4-06-!J3)4-.,0#1!R!*)-*0#1K!to the consumer By producing less packaging Malt-o-Meal is passing the savings down while providing more cereal. !O4C)-!-.,)!0*D-!4!94,*#),-/09!A!-/)!2)47)-!-946)!$%,!+%.!*%!/47)!-%3)!$.#!R!4&&!4!20**2)!%$!+%.,-)2$!! !"#-90,)-!B4C),-<6%%C-!50*/!)860*0#1!4#&!4**40#4B2)!0&)4-!R!9,%&.6*-!! @,.-*,4*)&!50*/!*/)!.#0$%,30*+!%$!4!34--A9,%&.6)&!5%,2&'!*/)+!54#*!*%!B,)4C!%.*!%$!*/)!#%,3!4#&!a Grocery shopping is a big deal, but when it comes down to it, cereal is a small choice of everyday living. They need reminder of what is really important in life, even though material things can get in the way. -))C!54+-!*%!)89,)--!*/)0,!0#&070&.420-3!A!B.*!-%3)*03)-!4,)#D*!-.,)!5/),)!*%!-*4,*:!! S070&'!207)2+'!-34,*!5%3)#!5/%!*4C)!9),-%#42!92)4-.,)!0#!*/)!6,)4*07)!9,%6)--'!5/%!B)20)7)!*/4*!B+!6.-*%30T0#1!-%3)*/0#1!*/)+D,)!#%*!%#2+! )89,)--0#1!5/%!*/)+!4,)!4-!0#&070&.42-!B.*!42-%!$))2!3%,)!,)42!4#&!4207):!!"*D-!4-!3.6/!4B%.*!/%5!*/)+!9),-%#422+!$))2!&%0#1!*/0-'!4-!0*!0-! Suburban women are the gatekeepers to the home and always put their family rst. They manage the family budget 4B%.*!/%5!*/)0,!$4302+!R!$,0)#&-!$))2!5/)#!*/)+!1)*!*%!)#U%+!*/)!,)-.2*:!!@,%3!-)50#1'!#%*!B.+0#1'!*/)0,!6/02&D-!V422%5))#!6%-*.3)'!%,! and decide what to cut without the overall health of her family being compromised. .-0#1!6/06C)#!B,%*/!0#-*)4&!%$!54*),!0#!*/)0,!34-/)&!9%*4*%)-'!%,!34C0#1!4!/4#&A34&)!B0,*/&4+!64,&'!%.,!H/4390%#!-*,07)-!*%!9.*!W/),! *%.6/X!%#!*/)!)7),+&4+:! E/)!F)&!G9%%#! L%--0B020*0)-'!#%*!H%#62.-0%#-! - Value ()**+'!#%*!()**+!H,%6C),! - Responsible - Environmentally friendly packaging A!O%,)!-0-*),!*/4#!3%3! Quantity "##%74*0%#!*/4*!M860*)-! - Family oriented A!P%.,!$,0)#&'!#%*!4&70-%,! E/)!H%%CB%%C! - Many choices Options - Comfortable - Family style N%4B2)!H,)4*070*+! "#-90,0#1'!4#&!B.02&0#1!.9'! E/)!I0*6/)#-! /),!$,0)#&D-!6%#$0&)#6)! J4-!9246)!$%,!&0-6%7),+K! F)-.2*-!*/4*!*.,#!%.*!*/)!! "#Q.0-0*07)!
  10. 10. Invest in something more
  11. 11. Invest in something more
  12. 12. Invest in something more “Bettering ___” (action)
  13. 13. Invest in something more Time, money and “Bettering ___” emotions (action)
  14. 14. Invest in something more Time, money and “Bettering ___” emotions (action)
  15. 15. Invest in something more Time, money and “Bettering ___” emotions (Decision) (action)
  16. 16. Invest in something more Time, money and “Bettering ___” emotions (Decision) (action)
  17. 17. Invest in something more Time, money and Family and self “Bettering ___” emotions (Decision) (action)
  18. 18. Invest in something more Time, money and Family and self “Bettering ___” emotions (Decision) (who) (action)
  19. 19. What the heck did I learn? 1 How to dig, everywhere 2 What does it mean? 3 How to find insights 4 No right or wrong answer 5 Is this relevant?
  20. 20. Thanks!