Segmentation, Competition And Target Market Profile

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Word Count

3000 words




3 Days

Assignment Criteria

  1. Describe the market segmentation variables evidenced in the company’s offerings (product/service) and explain how you determined this to be true.
  2. Describe the different Levels of competition for the chosen product.
  3. Provide a profile of the market segment at which you think it is targeted (that is, describe the characteristics of the target market)

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Assignment Solution


We can segment the cereal market into four markets such as the Healthies, the Sweet-Tooths, the Body-watchers and the Energy-Junkies (Sanitarium Health Food Company, 2012). The Healthies segment is interested mainly in cereals those will give additional nutritional value in order to keep well-maintained health. The Sweet-Tooth segment is interested in cereals that are good in taste and is best for kids whose age is in between 5-12 years (Heath, 2011).  The Body-Watcher's segment is focused on those women who are health conscious and mostly those are in between 25-40 years. The Energy-Junkies segment, who are enjoying actively their lifestyle and are also regular in doing exercise and sports. Each of these four segments that are present in the cereal market has been summarised.

In the sweet-tooth segment, the target group are children whose age are between 5 and 12 years and also enjoy free lifestyle and want to have cereal that is good in taste and also sweet, such as Froot-loops, frosted flakes and coco-pops and mostly have it in breakfast and snack time (Sanitarium Health Food Company, 2012). Most of them are aware of this cereal as children like to have it in breakfast. The people with low to medium income are able to afford it. In the Healthies segment, the target groups are adults those are health-conscious and matured of age ’30s to ’40s and also want to have additional nutritional value so that they can enjoy healthy lifestyle. The cereals they have it in breakfast are the guardian, Uncle Toby’s healthwise and Weet-Bix Multigrain (Sanitarium Health Food Company, 2012). The involvement of customers in this segment is high because this market cereal provides additional nutrition to the body and also provides iron and protein in high quantity. The customer with medium to high income also sneaks it as a meal. This In Body-Watchers segment, the target group are urban women those are modern and confident in the health of age 25’s to late 30’s so they can enjoy the modern and urban lifestyle in their late age (Sanitarium Health Food Company, 2012). The cereals they have it in breakfast and snack time in order to maintain weight are Sanitarium's light n tasty and Kellogg's K special (Mashable, 2011). The involvement of customers in this segment is high as most of them are health conscious and want to maintain a slim body and also want to look young. The customers with medium to high income like to have it as a breakfast and snack (Riley, 2012). In Energies-Junkies segment, the target groups are growing kids or adults those are young, and energetic of age 12 to 25 so they can enjoy an active lifestyle. The cereals they have it mostly in breakfast in order to gain energy for their sports and daily activities are Kellogg's Nutri-grain, Weet-Bix, Uncle Toby's plus and Milo energy cereal (Sanitarium Health and Wellbeing, 2011).

Levels of Competition

Based on price, variety, weight, attributes, value proposition, brand name and promotion, the direct competitor of Sanatorium's Weet-Bix are Uncle Toby's Plus Range and Kellogg's Nutri-Grain Cereal (Sanitarium Health Food Company, 2012). Kellogg's is the topmost ready-to-eat cereals in the cereal market and also had record sales of $14.2 billion in 2012. It is the most popular and well-known brand in Australia for ready-to-eat cereal. They have resources in 17 different countries those are related to manufacturing plants which are a major strength for the company (Mashable, 2011). They distribute their products to more than 180 countries which in itself is a big achievement. They are also strongly focused on maintaining the environment and social responsibility. One weakness of Kellogg’s product is that they are high in price as compared to other products because a consumer wants high quality at lower cost (Mashable, 2011).

Uncle Toby’s is best in oats part of the cereal market. It is the most popular and well-known product in Australian Households (Sanitarium Health and Wellbeing, 2011). They are more focus on local customers in order to form a strong relationship with them. The weakness of this brand is that it is available only in the local market and yet to extend their product globally (Riley, 2012). 

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