Growth Opportunities for Cheerios Name(s) The Product Development Growth Strateg
ID: 391799 • Letter: G
Question
Growth Opportunities for Cheerios Name(s) The Product Development Growth Strategy is a strategy where the organization introduces a new product item that should appeal to their current target market. A Line Extension strategy is a product development strategy since a variation of a current product is introduced to appeal to current users of the product 1. Make a suggestion for a new Line Extension for Cheerios. Why do you think this line extension will be successful? A Brand Extension strategy is another product development strategy since a new product is introduced to appeal to current users of the branded product. 2. Make a suggestion for a new Brand Extension for Cheerios. Why do you think this brand extension will be successful?Explanation / Answer
Cheerios is a toasted whole grain oat cereal brand. Line extension for cheerios might be successful when introducing a new flavor such as black current with fruity fusion cheerios with a main flavor of black grapes and a blend of other fruits mixed together. This flavor is found very rare in these types of products. It may attract the customers to try this new flavor. Young generation is more into trying new flavours.it could be that cereal that seems like it taste good,
Through Brand extension strategy, cheerios can introduce a new product under a successful existing brand that may be cheerios whole grain oat tortilla chips. Since the cheerios brand is already well established so it would not take much time for such new product to attract the attention of loyal customers. Chips are the main attraction for kids as well as younger generation. Those who don’t prefer eating cereals in the breakfast can have all the nutrients and ingredients of cheerios whole grain oat cereal in the form of tortilla chips that they can have any time during the day and is handy during mobility. This could have a reverse affect on the company’s existing brand as those customers who may like these chips may tend to try its basic products also. This may help company to gain more market share and earn good amount of profits.
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