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Breakfast Cereal Marketing in Business Studies

22 February 2016

Year 10 students are currently learning about the role of marketing in business. Most businesses operate in markets that are constantly changing due to changes in the needs and wants of consumers, increased competition, globalisation, legal controls and development in technology.

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As consumers, students are learning how they affect the marketing activities of a business. Businesses need to find out our needs and wants and they do this through market research. Students brought in their favourite breakfast cereal and simulated focus groups as method of market research. They learned how the results of market research then influence the marketing mix: decisions about the products a business will produce and sell, the price it will charge, how these goods will be promoted and the place they will be offered for sale. This led to them to look at how Kellogg’s used market research activities to help develop one of their cereal brands – Crunchy Nut Bites.

Looking more closely at the role of marketing in meeting business objectives, students were given the challenge of assuming the role of employees in the Marketing Department of Pepsi Philippines. Presented with a business scenario where Pepsi Philippines accounts for 20% of total carbonated drinks in the market, the business intends to expand its operations further and increase market share. Students had to suggest ways Pepsi Philippines could increase market share – critically evaluating what they thought would be the most effective method. They had to consider whether or not they should develop new varieties of drinks to sell in the market given that several brands, including Pepsi, Seven-Up, Mountain Dew and Gatorade, Tropicana and Lipton already exist in the market. They had to think about who their new target customers would be if they chose to launch a new drink and what types of advertising and promotion might be most effective in attracting these customers.

There were some fantastic ideas, including vitamin infused energy drinks designed to replenish electrolytes among active teens as well as frozen drinks that gave customers the option of a frozen, fruity treat on a hot day; or if served slightly frozen, a slush-puppy; or if not frozen, simply a fruity thirst quencher – three options in one…Go Stiwi! The best part was that the new drink was 100% organic and students even made prototypes for others to share and taste!