Month: October 2013

05. The Best Cereal Commercials

Watch a video: Best Cereal Commercials (1-10)

                Commercials are significant channels that raise awareness of the firms’ products. The distinct and visually appealing cereal commercials are often peculiar as they seem to be targeting children instead of parents — the actual contributors to the firms’ revenue stream.

Successful cereal commercials, or the “best” commercials in the video, often had three features in common: (1) the usage of familiar cartoon characters, (2) melodies that can be easily remembered, and (3) the emphasis on their crunchiness, colorfulness, fruity tastes (“delicious!”), various shapes and nutrition.

The Flinstones Pebbles cereal commercial, 1970s

                I understand that the cartoon characters –Flinstones, Mario, and Ninja Turtles– and addictive melodies are very effective in attracting children, who often are more attracted to visual and auditory distinctiveness rather than the benefits of purchasing the goods. In the commercials, nutritional aspect of the cereal was not strongly emphasized; rather, the word “nutrition” was sung by the cartoon characters for a second.

If assuming that adult consumers are more interested in health of their children and nutrition, and knowing that they are more rational consumers, how did the commercials appeal to their actual customer segment–the parents?

The commercials were effective in persuading parents to purchase their goods even if the commercials often were too focused on their points of differences (which were distinct shapes, colourfulness and flavours) while being reluctant to strongly emphasize on their nutrition and healthiness. Perhaps, it means that parents perceive taste and shapes of cereals significant, or the commercials were very visually effective that it remained in parents’ perception for a long time.

Although the question remained unanswered, it was clear that sometimes the commercials are meant to win the consumers’ perceptions, rather than to provide logical reason why they should purchase their goods.

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1. Picture: http://www.ifood.tv/blog/smartfoods-cereal-tries-to-gain-foothold-in-america

                 :http://www.flickriver.com/photos/kerrytoonz/4045926450/

2. Video: https://www.youtube.com/watch?v=zhtjAUFdaZY

04. Sweet Chocolate and Bitter Business

                Cadbury’s smaller Dairy Milk Chocolate bar with the new shape resulted in the customers’ criticism in October, 2012. Despite the reduced size, the price was left unchanged; that is, by reducing the cost and keeping the price unchanged, the firm received higher profit. However, according to Cadbury, it was not true since the increased price of sugar also increased the cost of production.

The firm’s responsibility was to increase the profit in a lawful manner and return its profits to the stakeholders. Assuming that the price of the raw materials remained similar, the decreased size of the chocolate, which reduces the amount of raw materials required to produce each unit, surely benefits the firm by reducing the variable cost. However, this is rather bitter for the consumers who should pay the same for less “sweetness”.

Nevertheless, not only Cadbury, but also many producers including Mars reduced the size of their products. How can Cadbury win their battle of consumers’ perception? According to the report, chocolates with rounded shapes are perceived to be sweeter; in fact, Cadbury chocolates had been said to be sweeter after changing their shapes. This may be opportunity for Cadbury to overcome its customers’ criticism by reducing its sugar contents while retaining the rounded shape of the chocolate bars. The chocolate will still be sweet due to its rounded shape, while the cost of producing chocolate bars will be reduced. Furthermore, Cadbury may develop its point of difference by associating the reduced sugar content and consumers’ health. This will be where business becomes sweet!

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References:

1. “Cadbury cuts the size of Dairy Milk chocolate bar (but keeps the price exactly  the same!)” written by Sean Poulter in October, 2012

http://www.dailymail.co.uk/news/article-2219775/Cadbury-cuts-size-Dairy-Milk-chocolate-bar-keeps-price-exactly-same.html

2. “Cadbury Dairy Milk: why rounded chunks of chocolate taste sweeter” written by Amy Fleming in October, 2013

http://www.theguardian.com/lifeandstyle/wordofmouth/2013/oct/01/cadbury-dairy-milk-rounded-chunks-chocolate-sweeter