WHEATIES: REINVIGORATING AN ICONIC BRAND Case SolutionÂ
Association with sports:
The Wheaties brand of the company was the first brand in the industry to associate itself with the sports industry and activities. Moreover, this facilitated the management of the company to practice a unique competency and perception among the customer segment in the markets where the business operated.
The company frequently hired and contracted various sports superstars and individuals from various diverse sporting backgrounds for marketing and advertisement of the products of the company. Some of these athletes were top performers and superstars with massive fan following all over the world including Michael Jordan which resulted in a positive for the business.
The management of the company also innovated by offering sports trading cards on the Wheaties boxes and this also attracted and appealed customers to buy the Wheaties product of the company increasingly.
Changing scenario post 2000s:
The period after mid-2000s has been a cause of concern for the management of the company due to the declining sales and revenues of the Wheaties brand, which has historically been the market dominator and the major revenue generator for the company.
The management of the company is worried due to a steep decline of roughly above 30% in the volume of sales of the company along with its market share and this has certainly squeezed the financial rewards and benefits of the company to an extent.
The study of the case reveals two major reasons for this issue and they are the changing customer preferences in terms of tastes and health specific diets.The younger proportion of the customer segmentation dislikes the product due to the taste and the other age segments have reduced consuming Wheaties due to their health consciousness and preference for healthy diets and meals.
Question 2: What are the causes of the problems Wheaties is experiencing?
The investigation by the marketing department and the management of the company revealed three major reasons for the decline of sales of the Wheaties brand of the company even though the reputation and awareness of the brand was high among the customers in the markets where the product operated. The critical factors of the decline of sales of the product are explained below.
Priority of customers:
The investigation of the management of the company revealed that it was more about the offerings outside much like accessories than the product of the company itself. The major reason for the inclination of the customers towards the product was majorly due to the sports trading cards that the company offered to the customers as a supplementary rather than the liking for the product that the company was offering. This was bound to fade away over the time due to lack of liking for the product of the company itself.
Lack of believe among the customers:
A major proportion of the customers of the company were also driven from the popularity and association of various sporting athletes and superstars however, due to the transformation of the social media and digital communication platforms, uncertainty was raised into the minds of the customer of the company driven by these superstars. Most of these customers and fans were unsure and less confident and believed that these superstars and athletes utilized Wheaties product themselves.
Fluctuating brand recognition:
The fluctuating brand recognition of Wheaties was another issue for the management of the company as the sports cereal and other related products of the industry had become quite saturated over the time period due to the introduction and entrance of various other products in the sports industry over the time period…………..
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