New Breakfast Cereal Project
Working with your team, you are going to create and market a new breakfast cereal.
Step 1: INDUSTRY BACKGROUND: Your have already researched the Ready to Eat Breakfast
Cereal industry. In your introduction BRIEFLY summarize the industry leaders, the successful
products, current marketing trends, and how your new cereal will fit into the market. (10 points)
Step 2: PRODUCT: Based on research, your team will determine which type of cereal you want to
create and who the target market will be. Include a description of your product, ingredients, shape,
texture (visuals are helpful), nutrition, and competitive products. (25 points)
Step 3: PRICE: Your team will analyze the cereal market and competitive products in order to
determine and justify the price you will charge for your new cereal. Be sure to take into account cost
of ingredients, production, promotion expense, and any other associated costs. (15 points)
Step 4: PACKAGING: Design an attractive box for your new cereal. Create a logo that will
symbolize your product. (25 points)
Step 5: PROMOTION: Develop a promotional campaign to introduce your new cereal to the market.
Be sure to include advertising ideas, jingles, slogans, artwork, etc. Develop a plan for where and
how your new product will be displayed. (25 points)
Step 6: The Presentation: Imagine your team is pitching your idea to a major cereal manufacturer
for consideration. Create a presentation (PowerPoint, multimedia, etc.) that ties together the five
previous steps and present it to the class. Teamwork and individual participation will be considered.
(25 points)
Scoring Rubric:
Introduction (Step 1)
Product (Step 2)
Price (Step 3)
Packaging (Step 4)
Promotion (Step 5)
Presentation (Step 6)
DUE DATE: TBA
(Rev. 12/07)
10 points
25 points
15 points
25 points
25 points
25 points
125 total possible
Participation: In order to be fair to the members of your group, any student absent (for any reason)
for more than half of the in-class work days, will be required to complete a project on their own.
Individual participation and group grades may be prorated at the discretion of the instructor.
Pricing Information:
** www.cbot.com for relative prices of corn, wheat and oats First 3 digits of price quote are cents per bushel,
so 312 means $3.12 a bushel
Sugar: average wholesale price $.33 per pound
A list of the average price per ounce of various brands of cereal is available in the “Business
Enterprise” folder.
Promotion is any activity to inform, persuade or remind a potential customer about your products
and services.
Types of Promotion:
Advertising: Any paid form of communication (Radio, TV, Billboards, Magazines, Newspapers, etc.)
Publicity: Free Promotion. (Press releases or news reports describing how the company sponsored
events or donated money or supplies to a charity or social cause.)
Sales Promotion: Special things done to get customers interested in trying products (coupons,
contests, rebates, free samples, special displays, etc.)
Personal Selling: A sales person communicates and assists each customer.
Cereal Project Scoring Tool
Group Members:
Cereal Name:
Introduction (10 points)
_____ Background of RTE cereal industry
_____ Market leaders
_____ Yearly sales
_____ Categories
_____ Trends
Product (25 points)
_____ Description of your product
_____ Ingredients
_____ Shape, texture (include visuals)
_____ Nutrition
_____ Target market - who are you trying to sell to
_____ Competitive products
Price (15 points)
_____ Relative cost of your product based on ingredients
_____ Compare to price of similar cereal
_____ Production expense
_____ Promotion expense
Packaging (25 points)
_____ Design of packaging
_____ Logos
Promotion (25 points)
_____ Marketing techniques
_____ Slogans
_____ Advertising
_____ Promotions
_____ Display
Presentation (25 points)
_____ Content, creativity, professionalism, effectiveness, neatness
______ TOTAL GROUP POINTS