Healthy Cereal Marketing Mix

It’s back to the basics as marketer’s explore the four P’s of marketing: product, place, promotion and price. Understanding all aspects of your marketing within the four P’s can be important. Let’s break down this approach using Magic Spoon, a healthy cereal brand in the food industry.

Product Strategy

Identifying the product lines within Magic Spoon as a brand is a good starting point. Magic Spoon offers many flavors of cereal and since cereal is the only offering, there is only one product line to work with for this particular brand.

  • Frosted
  • Cocoa
  • Cinnamon
  • Fruity
  • Blueberry
  • Peanut Butter

Understanding the “fan favorites” within a product mix will help your brand elevate those more popular flavors within advertising campaigns down the road to generate more interest. With that said, Magic Spoon should conduct primary research with its audiences to understand which flavors are likely to be purchased more than the others.

Place or Distribution

The only distribution method offered by Magic Spoon at this time is online ordering. Magic Spoon has a robust website which makes ordering easy from your computer or smartphone. However, Magic Spoon is missing out on growing its reach by not offering cereal products in stores or at some sort of brick-and-mortar. This distribution strategy could be improved to at least have its products available at high-end healthy grocery stores where this health-conscious audience will likely be shopping.

Magic Spoon’s Promotion

Magic Spoon runs promotional campaigns on a regular basis. From email communications to promo codes, this brand stays on top of a well-oiled Promotion Strategy. Here are Magic Spoon’s promotional channels:

  • Email marketing
  • Promo codes/deals
  • Public relations
  • Co-branded articles
  • Digital advertising
  • Social media marketing
  • Influencer brand ambassadors

Pricing Strategy

There are two types of pricing strategies that we typically see cereal brands using. One is called market-oriented pricing and the other is value-based pricing. The first is when you focus on the market prices for your particular product. This involves staying on top of competitor pricing. The second is when a cereal brand comes up with its own pricing strategy that may be higher than its competitors. In order to stay competitive, they create value propositions and market them well to consumers in order to get consumer buy-in on the same higher-priced product.

Magic Spoon uses value-based pricing because they have set higher prices on their cereal but they have also communicated value propositions as to why the cereal is at a higher cost. Magic spoon offers a refund option if you are not satisfied. Here is Magic Spoon’s current value proposition statement:

“Our high protein, low-carb, totally natural, sugar-free, gluten-free, wheat-free, and soy-free cereal is pricier than you might be used to seeing, but that’s because we’re not just another box of corn, wheat and sugar. It comes down to $1.39 per serving, which is cheaper than most protein bars and shakes or other breakfast options.”

Now you have the ammo you need as a marketer to use this same four P’s approach on your own brand and products. If you have any questions, please leave them in the comments and I would be happy to help give marketing-minded advice. Best of luck on your next marketing mix contraption.

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