SWOT analysis for Cereal bar market
Strengths
 Meets need for both a healthy and convenience snack, especially targets those
who miss breakfast
 Popularity increased rapidly over past few years – 66% growth 2002 – 2007.
Mintel predicts market will be worth £420m by 2012 from £287m in 2007.
(Marketing magazine)
 Popularity amongst parents for children – alternative to crisps and sweets e.g
CoCo pops bars
 Increase in number of products containing only natural ingrediants and no
artificial additives
 Some contain more fruit than governments recommended five-a-day
Weaknesses
 Sector becoming confusing to the consumer with new launches from cereal,
confectionary and biscuit brands
 Not a staple food unlike cereal; as food bills rise and especially at moment if
consumers are cutting back, sales may be affected. Porridge sales in UK
especially have risen.
 Real health benefits questionable – high levels of added sugar – Nutri-Grain is
a third sugar. Future issue of level of perceived health benefits
 Men less likely to purchase and older shoppers unconvinced
Opportunities (for us)
 Target especially this younger male business segment
 Market our fresh, simple, product that can be distinguished easily
 Cereal bars have been extended from originally a breakfast on-the-go snack to
a ‘healthier’ alternative to chocolate or other snack item. Huge scope for the
development of sub-categories and flavours which means possible potential
for us to sell as an afternoon snack, not just in morning
 Market is becoming saturated – ‘innovation and diversification will be key at
this pivotal time.’ (Marketing magazine)
 Superfoods trend has really taken off such as blueberries – reflect this in our
fruit selection
 Take advantage of increase of popularity for porridge – make available to
take-away
Threats (for us)
 Most people buy multi-packs from supermarkets rather than single bars on the
move – harder for us if consumers already carrying a bar with them but then
arguably same if the consumer if carrying any other breakfast replacement
item e.g. piece of fruit
 Well established market