The American cereal market is enormous due to the specific perception of the product itself. Cereal is expected to be tasty, healthy, and appealing to kids as well as other groups of the population who do not have time or enthusiasm to spend time cooking. I have chosen three well-established brands on the market: Honey Nut Cheerios (General Mills), Raisin Bran Crunch (Kellogg), and Reese’s Puffs (General Mills). All of them are loved by millions of people across the US. Nevertheless, all of these brands have completely different backgrounds that determine brand loyalty and brand associations to this day. Aaker and Moorman (2017) state that the way a product is marketed can significantly influence the way people begin to perceive it. If the product proves to be a success, this legacy does not vanish. Instead, it can both encourage loyal consumers to purchase even larger quantities or undermine further marketing efforts designed for rebranding.
We will write a custom Coursework on Strategic Management of Different Companies specifically for you
807 certified writers online
Honey Nut Cheerios, introduced by General Mills in 1979, provides an excellent example. The brand was rolled out amid an economic crisis, which directly affected the way it was marketed. According to Burrows (2018), General Mills gave away 29 million free coupons, and the marketing campaign was an immediate success – the brand still targets broad audiences and generates the second-highest revenue in the industry. Nevertheless, recent years were marked by a steep decline in sales.
Reese’s Puffs is adored by cereal lovers and is positioned as an everyday option with special appeal due to the peanut butter taste. The brand manages to show substantial revenue increase even as the number of units sold remains unchanged. Customers can afford to spend an extra yearly price increase of 10 cents per unit. It signals a level of loyalty brand, which is virtually unprecedented in the cereal market.
Raisin Bran Crunch is promoted as a healthy option due to the high percentage of fiber it contains. Although it is not the healthiest brand, at least in terms of sugar, it is still generally perceived that way and boasts a loyal customer base. It is my favorite brand, as wheat bran flakes taste better than corn flakes and any other type of cereal. Moreover, I am one of many customers who enjoy raisins and honey-oat granola clusters. They are both delicious and appealing to those who seek to find optimal nutritional ration.
My neighbor buys a new pair of Adidas trainers and posts a few pictures of them on Instagram. Moreover, later he posts several photos that feature him wearing the trainers. They seem to look good and comfortable, and it becomes the trigger. I desperately want to buy a new pair of shoes myself. I go to a website that provides multiple brand comparisons, but it does not seem trustworthy. Therefore, I opt to check each brand’s Facebook page – for information gathering. I make a shortlist of companies that produce trainers which can best meet my needs, as I prefer wearing trainers on an everyday basis and enjoy playing basketball. Nike’s page grabs my attention, as I find the youth’s style featured in the pictures appealing. I associate myself with the relaxed, casual atmosphere in which these open-minded young people radiate. Thus, I decide to purchase white Nike trainers next week. At the same time, I come across my close friend’s post on Facebook in which he sells a new pair of rare Nike shoes. I enjoy them a lot, as their design can help anyone stand out from the crowd. I text my friend, and we settle on a reasonable price. After buying the shoes, I post numerous photos of myself, as I believe I look great in them. This encourages me to consider becoming a loyal Nike client.
The brand loyalty that Sephora managed to develop is mainly based on touchpoints that occur when a consumer interacts with a company in a marketplace. Providing proper experience and creating the atmosphere desired by most of the clients is instrumental in ensuring great feedback and loyalty. The atmosphere the company seeks to create in its stores truly fascinates, as there is always an abundance of ways customers can interact with all the product lines. Such an approach provides Millennials with the much-needed opportunity to experience the “hunt” for the right individual look. Moreover, Sephora should be credited for creating one of the best sweet spot–driven programs and a dedicated community that centers around beauty trends in general, not solely on the company’s products. The company actively promotes its role as an honest and caring friend who happens to be an expert in the beauty industry.
Sephora addresses customers’ desire for self-expression and gently suggests certain options. The company was one of the pioneers of such an approach and contrast with multiple old-fashioned retailers, which manifest the dominance of certain types of appearance, clothes, cosmetics. Providing numerous tools is instrumental in assuring young generations to complete control over the creative process they find themselves involved in while in Sephora stores. Moreover, certain innovations, such as the Color IQ handheld device, help people highlight their individuality. According to Aaker and Moorman (2017), such an approach encourages people of color to search for cosmetics, which best match their skin tones. A chance to compile various elements into one new style that Sephora provides also represents the company’s competitive edge.
The COVID-19 pandemic has altered the way millions of people shop, undermining the importance of shopping in person. Moreover, the economic crisis which accompanies the pandemic has led to significant changes in consumer behavior patterns. People are less inclined to squander money for various reasons, not solely for the sake of saving up. Numerous industries struggle as customers increasingly prefers casual and cheap options. People currently tend to stay at home most of the time, and the demand for cosmetics and other goods in the beauty industry has declined substantially. Moreover, several trends are on the rise, making it even more difficult for giant corporations to mitigate the crisis. One of them, which has become vivid but hard to notice in separate spheres, is the increased interest in local businesses and the casual goods they produce. Moreover, millions of women are currently getting used to their natural beauty, as they do not have to make up every morning before commuting to work or driving to a mall.
All the above-mentioned changes pinpoint the major shift in the beauty industry. Bunham (2020) states that ULTA Beauty is more likely to overcome the crisis without losing much revenue and client base. Tyler (2018) claims that the company provides both luxury and drugstore brands, allowing consumers a more practical approach to shopping. Moreover, such a variety of brands appeals to those who currently tighten their budgets. Sephora may, nevertheless, also adapt to ongoing changes by focusing on its sophisticated online programs and encouraging the community of loyal customers to further interact with the fashion world. Nevertheless, providing reasonable delivery options is the key to each company’s success. Therefore, the companies should focus on maintaining the great experience they provide while significantly altering how customers can shop safely, as it has become the greatest priority, which should be emphasized by all retailers.
Aaker, D. A., & Moorman, C. (2017). Strategic market management. Wiley.
Bunham, R. (2020). Ulta Beauty CFO: “The great recession was a walk in the park”. Chief Executive. Web.
Burrows, D. (2018). America’s most popular breakfast cereals (and the stocks behind them). Kiplinger. Web.
Tyler, J. (2018). We shopped at Sephora and Ulta to see which was a better beauty store – and the winner was clear. Business Insider. Web.