The once lucrative cereal market is experiencing decline. Not too long ago, cereals such as Honey Nut Cheerios and Frosted Flakes were all the rage across North America: the perfect alternative to the whole-nine-yards, eggs and bacon and hash getup that used to define the typical breakfast. Cereal offered efficiency for those concerned about shortage of time; practicality for those who otherwise would have been getting up earlier than desirable to throw together full-fledged meals. Nowadays, however, even heavyweights like Kellog and General Mills, companies who made their name through cereal, are conceding to less than satisfactory demand for the product many North Americans came to know, love, though now apparently have grown bored with.
Why the disinterest? Simple. New products are coming out everyday that exceed cereal in regards to deliverability of most every one of its qualities. Yogurt is more efficient to have for a meal, there are made-to-go smoothies that are arguably superior in taste. Cereal has become easily and overly substitutable.
We’ve already covered Porter’s Five Forces and know that being able to contend with substitutes is essential to the longevity of any product. Perhaps cereal companies need a reminder of this.
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Article Caroline Fairchild