Marketing
Justification and Marketing Strategy for the Launch of a Date Flavored Breakfast Cereal in Saudi Arabia
The development and sale of a date flavored cereal to be sold in Saudi Arabia may have a great deal of potential. The cereal market in Saudi Arabia is the largest cereal market in the Middle East, and it is in a growth phase (ITP.net, 2006), while two major global breakfast cereal firms; Kellogg and Nestle, have had a presence in the country since the 1970's in the past the was generally marketed to western expatiates (ITP.net, 2006). The increased level of global media has created a higher demand for cereal in the local consumer market, and growing awards of health issue have also supported the growth of the cereal market which is perceived as a healthy breakfast choice (Euromonitor, 2012; ITP.net, 2006). Increasing disposable income in the region is also impacting positivity on the demand. The market is expected to continue growing through until 2016 (Euromonitor, 2016). This indicates that there is a market which may be accessed as long as the firm can develop a suitable product and market it effectively.
The perception of cereal is that it is a western style product, so adapting the product to create one that is likely to provide a greater level of appeal to the local market may help to create differentiation...
The concept of localization of products has been successful for many firms; McDonald's has adapted product for local markets such as the Maharaja Mac made with lamb instead of beef for the Indian market and burger sold in France have garlic dressing (Kotler and Keller, 2011). Adapting product to meet local tastes has the potential to gain more sales in a region compared with the sale of a standardize product (Kotler and Keller, 2011).
The breakfast cereal may be adapted with the incorporation of dates and date flavor. Dates are a local product; the diet in Saudi Arabia has contained dates for millennia, with the country producing in excess of 600,000 pounds of dates each year (Anonymous, 2010). The food is a staple item, used in many different sweet and savory dishes, including breakfast, as well as eaten as a snack (Anonymous, 2010). The product is therefore one that is known to be suited to local tastes. Dates have not been popular in cereals, but the Kellogg's cereal 'Just Right' sold in Australia and New Zealand, has a variety that includes dates; so dates are an indigent that is viable for inclusion in a breakfast cereal product.
The marketing of the new cereal will be targeted at the local population, seeking to combine the culture and traditional associated…
