RTE (Ready to Eat) Cereal Industry Essay Example

RTE (Ready to Eat) Cereal Industry Paper What are the barriers to entry in the RTE (ready to eat) cereal industry? Market concentration and big players extremely powerful and profitable. Restrained competition by the big three by unwritten agreements to limit in pack premiums; tread dealing (one brand at a time for each company); and vitamin fortification Economics of scale in production and advertising Slots in the supermarket and negotiation by volume and discounts Three big cereal companies: Kellogg, General Mills and Philip Morris When: 1994 What: for the first time decrease of sales. Before this avoided destructive head to head competition. Used to be a very closed market and even considered monopolistic. Big margins, easy to negotiate and volume for retailers among other things made it difficult for new companies to enter the market. 1% of gross sales (80 millions) used for RD. Distribution to centers. Buy space at retailers (could go up to 1 million) when introducing a new brand. Expansion from 96 2000 20% by entering superstore centers (Walmart with discounts) Advertising and use of coupons ereals seen as luxury item with the high prices according to consumers. New products developed (expansion of brands or new creations). Also co-brand deals Kellogg: 35% of market share, leader. It has cereals, waffles (eggo), toaster pastries (pop-tarts) and granola bars. General Mills had 24. 3% of market share (food company). Cereal division was its largest division (30% of revenues) followed by restaurants, packaged food goods like frozen see food. Philip Morris: 60 billion consumer packaged goods company (half from food and half from beer). We will write a custom essay sample on RTE (Ready to Eat) Cereal Industry specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on RTE (Ready to Eat) Cereal Industry specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on RTE (Ready to Eat) Cereal Industry specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Acquired Nabisco Quaker Oats: leader with 65% of the hot cereal industry. Ralston: pet food, batteries manufacturing (everyday and energizer), soy protein, operator of ski resorts, polymer products, etc. Produced 50% of the private label cereals. Private Label Thread Grew 50% from 91-96 (9. 2% of all cereal sales) Low price (40% less than the big 3) Offered better margins for the retailers 90s change, they used to suffer from poor quality and limited production before. Costs where cheaper because they focused on simpler cereals no R, packages also cheap. Malt-O-Meals competition of private label Is the recent decrease in profitability a temporary phenomenon or a permanent change in industry profitability? It is a permanent change thanks to the market penetration and growth the companies are having. Also it is important to mention that people, according to the text, view cereal not as a luxury item but as something basic. They rather pay less than buy for a more elaborated cereal. How should I believe Kellogg should diversify their products and make a premium line and a more basic with lower prices but with Kellogg quality.

Sample Argumentative Essay on Free College Tuition

Sample Argumentative Essay on Free College TuitionWith all the discussion about free college tuition on the TV and in the newspapers, it is no wonder that everyone who's ever signed up for college is now asking for a sample argumentative essay on free college tuition. So what should be your sample argumentative essay on free college tuition?The first thing you need to consider is whether or not you really have to go to college at all. If you are able to get a college degree without a tuition bill you can save thousands of dollars per year.Now if you do actually have to go to college, there are a couple of options that will allow you to save money on your college education. One is to apply for scholarships. However, if you get rejected you could pay for school with a part-time job.Another option is to find a scholarship program that will pay for part of your college tuition. This can be an advantage because you will be able to use the money that you would have otherwise spent on textb ooks, tutors, and food at your local college bookstore.If you are able to work while you are in college then you may want to consider student loans. There are programs out there that are specifically designed to help students pay for their education and many of these programs offer high interest loans at much lower rates than student loans that are offered by banks and financial institutions.As you look at getting a degree, you should think about how much it would cost to help you pay for your own college education. A college education is more than just being able to read and write well, it also includes being able to do research and being able to communicate well.So with a sample argumentative essay on free college tuition, you can make a lot of good decisions about your future. By making informed decisions now, you can avoid the hassles of paying for college tuition in the future.