Cheez-It's

1. Market Needs 1 2. The Market 1 2.1. Market Demographics 2 2.2. Market Trends 3 2.3. Market Growth 4 2.4. Macroenvironment 5 1. Market Needs Given that the main target market for cracker products are children under the age of 12, their market needs are such that they desire to have a cracker prepared with real cheese. The cracker also needs to be crunchy in nature and have a cheddar taste. These aspects propel the market needs for crackers. In spite of this market need, recent trends in the environment have impacted the sales for the product, with the introduction and hype on low-carb crackers. However, the market need much sought after to satisfy remains children who have a specific liking to real cheese and cheddar-tasting crackers. The main focus to continue with the product's success thus remains to be to retain the original crackers as they are, but in addition, provide the added benefit of choice by adding new flavors to the Cheez offering. Other benefits provided to the consumers includes crackers that have reduced fat content as well as regulated calories' content so as to appeal to the widest variety of customers possible. 2. The Market The target market for crackers is primarily children and especially those under the age of 12 years. However, with time and changes in trends within the market place, the market for the product has also gone a step further to target customers who love crackers, but are health conscious about what they intake. This would easily purpose to serve even older consumers who may have an occasional liking for crackers but who are conscious about the ingredients contained.  Consumers are interested in wholesome products made with natural ingredients, many of which are allergen free or are healthy. These target markets have continually been selected due to the stiff competition within the market place. With competitors attempting to keep up the stakes with consumer trends and altering their purchasing habits, Cheez-Its thus has countered such actions by diversifying its offerings so as to maintain its position within the marketplace. The future of the market thus remains to be one in which the consumer is becoming increasingly health conscious, with the potential being enormous in the future for the possible inclusion of new ingredients in the production of crackers.  Major trends in cracker products that have continued to gain momentum over the past several years are private label, consumer health awareness and perception, and niche focused players capable of creating deep customer loyalty.   American children spend nearly $30 billion of their own money annually on such foods, and companies design products to tap this market. Since 1994, U.S. companies have introduced about 600 new children's food products; half of them have been crackers or candies, and another fourth are other types of sweets. Companies support sales of "kids' foods," with marketing budgets totaling an estimated $10 billion annually.1,3 Kellogg spent $22.2 million just on media advertising to promote 139.8 million dollars' worth of Cheez-It crackers in 2004, but these figures are dwarfed by McDonald's $528.8 million expenditure to support $24.4 billion in sales. |Market Analysis | |  | |  |  |  |  |  |  | |Market Segments |Income Level |Loyalty Status |Characteristic |Characteristic |Characteristic | |Children under 12 (in millions) |Low |High |- |- |- | |Women 25-54 (in millions) |High |High |- |- |- | |Teenagers 13-18 (in millions) |Medium |Low |- |- |- | 1. Market Trends The market trend that has continued to evolve includes the aspect that more people are consuming crackers on a more regular basis in the course of the day. While the original target market was young people, a more mature customer base can be perceived to now be consuming the crackers more often especially between meals. Cracker sales has experienced a large increase in the sales by women due to it being perceived as a great tool for weight loss. The new one-hundred calorie packs offer a great mid afternoon snacks to the working woman or stay at home mom. It is the health alternative to caving into other tempatatios Market Analysis (Trends) [pic] 2. Market Growth The market growth for the product has been one such that the future could hold for the product to contain a wider variety of ingredients. While the primary ingredient for the product remains cheese with the cheddar-like taste, this could ultimately change over the course of time since there in the continued increase in older folk consuming the product. Just as much, with few mothers being housewives and taking on active professional careers, this could very well imply that this new trend is an untapped market where while they may make purchases mostly for their children, a variety of the crackers could be devised to target them directly as well. Market Analysis (C.A.G.R) [pic] 3. Macroenvironment From a macro-environment perspective, the product's potential future market could be impacted due to the narrow focus of the product's target market. In the instance of other products' ability to interest a more general population, then the market would change for the worse. The firm also only has a market reach of 70%. It needs to utilize technology more aggressively to reach the other percent of the market. Legal barriers to continued manufacture of the product could have serious implications for cracker sales since they do actually contain toxins. This is a potential lawsuit in the waiting since there is no telling what adverse effect such components could have on consumers in the future.