'Market Failure: Kelloggs Cereal-Mates\r'

'A say on Market Failure: Kellogg Cereal-Mates First, I must begin by saying that as nearly Americans would agree †caryopsis grass and draw go unneurotic hand-in-hand. How constantly, how would the general public purport about a combination of the devil sold pre-mixed? This was essentially the fount when Kellogg’s decided to introduce breakfast Mates. Breakfast Mates included a small misfortune of Kellogg’s cereal package with a container of draw and eating utensil. While the reaping was right in step with the accelerating trend of convenience foods, a inconstant and demanding public found the new packaging less(prenominal) than mindl.Essentially the choice that Kelloggs was giving consumers was that you could eat your Kellogg’s gamboge Flakes icebox cold and pour cold milk everyplace them, or eat your flakes at way temperature with warm milk. This led to a dilemma that would at long last be proven as a dent on the company’s recor d of terrific crossroads and merchandising campaigns. Kellogg’s believe that this would be a popular concept due to increased works hours in the United States combined with the rise of the fast-food exertion led the false belief that the product would be successful. Kellogg’s launched the concept on a home(a) undercoat in ‘kit form’â€a four oz. ox of cereal, a four oz. container of aseptically packaged milk [no refrigeration invited] and a plastic spoon. The attract consisted of four popular Kellogg’s brands; Corn Flakes; harvest-feast Loops; Mini Wheats; and Frosted Flakes. Although the milk did non require refrigeration, Kellogg’s placed Breakfast Mates in the refrigerated dairy case alongside cheese, yogurt, jello pudding, and other refrigerated desserts. The company believed that this would be the scoop up choice since Americans liked to pour their milk everyplace cereal. This caused much confusion, however, because most ind ividuals wouldn’t be look for for breakfast cereals in the dairy case.I feel that thither were 5 main agentive roles that actually led to this marketing and product failure. The first job I feel was the fact that Kellogg’s believed that providing a â€Å"aseptically packaging”. This meant that the product would require no refrigeration for the milk. Consumers were revolted by the root word of warm milk. The second issue was when Kellogg’s attempt to market in a different carriage and use cool milk as the basis by putting the product in the refrigerator section. This actually caused much confusion because the product was non in a location that you would expect cereal at.They company spent too much of what improvement money they had received in trying to re-educate consumers into spirit in the dairy aisle for cereal. The third factor that led to the products unsuccessful stint into the marketplace was their advertizing campaign. In these ads Kello ggs chose to market the product to young kids so they could prepare meals for themselves without their parents’ help. This would have been fine, but the packaging was not child-friendly. Taste was also a serious problem for the Kellogg’s convenience line. Reportedly (according to personal experience), the milk was usually consumed at work or outside from home.The warm milk tasted absolutely terrible. Finally, the biggest nail in the coffin for this product was that the price. The cereal was selling for over one dollar per serving, which was considered too expensive by most consumers for a 4 oz cereal. The product survived two years on the market before Kelloggs’ pulled the plug. accord to the February 2000 article in the Newsweek on the food, they stated that the product simply wasn’t convenient enough. This is because with increased substitute times and busy schedules people wanted a product they could eat on the go.With cereal friction match they we re required to still pour a lucid milk over the cereal which was not realizable to do safely while commuting to work. close customers also were adults, so the small spoon that was supplied with the cereal was too hard to use. I feel that this was a good product in concept, but the complexity of the concept made this product non-attractive to those who not all were needing a convenient and healthy food, but also one they could consume in a hurry. This idea afterwards evolved to the milk and cereal bars they would later introduce around 2004 †which have been wildly more successful than the original cereal mates ever were.\r\n'