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What Type Of Business Venture Is Cereal Partners Worldwide?

What Kind Of Entrepreneur Is Cereal Partners Worldwide SA Cereal Partners Worldwide SA, a joint venture between General Mills & Nestle, was founded in 1991 to produce breakfast foods. The company has its headquarters in Lausanne, Switzerland. It markets cereals to more than 130 countries, except the United States and Canada, where General Mills directs them.

Nestle sells the company’s cereals. However, many of its products are from General Mills, and some were once made by Nabisco, like Shredded Wheat and Shreddies. Some of CPW’s products can be found in Australia and New Zealand under Uncle Tobys.

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What Type Of Business Venture Is Cereal Partners Worldwide?

Cereal Partners Worldwide is a joint venture between General Mills (Nestle) and Nestle that has successfully capitalized on emerging market growth to grow its market share in the global breakfast cereals market.

The report structure has been reworked for this year. It now contains hard-to-decipher analytical insights interspersed with graphs and charts. This is supported by real-life case studies and up-to-date examples.

The 2007 Global Report is also focused on the future. Each section concludes with strategic implications for the short and medium-term, while the final section discusses market forecasts and trends to watch over the next five years.

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Cereal Partners Worldwide is the best-performing company in developing markets, such as China and Russia, where Kellogg is not yet a dominant player. The former saw it grow its retail value share in breakfast cereals from 7.6% up to 12.7%, moving it from fourth to second in rankings. While the latter saw it enter the market in 2004 at 25.2% and it fell marginally (by 0.1% points) in 2005 to become the market leader.

Even though the Russian and Chinese markets remain small globally (with US$263 and US$71 million of sales respectively in a US$23.4 million global sector), they are expanding rapidly. Furthermore, China’s per capita consumption rate is still low. There is plenty of room for growth.

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Nestle’s brand identity offers a platform in China.

Cereal Partners Worldwide first entered the Chinese breakfast cereals industry in 2004 when it opened Tianjin’s manufacturing plant. Since then, it has used strong branding and intensive marketing strategies to grow its market share, especially in children’s cereals. In 2005, Cereal Partners Worldwide had a market share of 60%.

Many of the indigenous breakfast cereal players are still in development and have very limited marketing budgets, making it difficult for them to compete. Cereal Partners Worldwide’s breakfast cereals all carry the name “Que Cao,” meaning bird’s nest in Mandarin. The core of Cereal Partners Worldwide’s Chinese marketing strategy includes the use of a common visual identity/logo, the tagline “Choose Quality. Choose nestle”, and advertising on the packaging and point-of-sale materials. You can also use sampling and in-store promotions. Cereal Partners Worldwide is able to afford large amounts of television advertising, which is a departure from many of its competitors.

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These breakfast cereals are integrated into a wider range of products, which allows for better marketing. Nestle’s presence in China’s packaged food markets has been there since 1990. It was a good platform to launch Cereal Partners Worldwide. However, this approach comes with its own risks. In 2005, Nestle’s reputation was tarnished in China when it was discovered that its baby formula had been contaminated by iodine. Cereal Partners Worldwide appears to have not suffered any serious consequences from this scandal.

You might also like: Does your company need a water pumpNestle’s China marketing strategy focuses on segmenting customers into two types: rural and urban. It targets the urban wealthier population with its most innovative products, which are expected to make up the majority of the market by 2010. This segment focuses on issues related to wellness and health. China’s shrinking rural population has a significant impact on its affordability. It adapts existing product lines and emphasizes basic nutrition, safety, quality, and affordability.

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Keyword – What Type of Business Venture Is Cereal Partners Worldwide

Changes in the Chinese market are driven by sociological and demographic evolution

China’s breakfast cereals market accounted for 29% (by value) of Chinese breakfast cereals in 2005. This figure is comparable to the global 30%. Cereal Partners Worldwide may have to contend with the fact that adult breakfast cereal consumption in China is rising at a faster rate than that of children.

China is home to two opposing forces. China’s birthrate has dropped significantly due to the One-Child Policy. But disposable income is growing rapidly so that families can spend more on each child. According to some marketers, China’s current generation is being called “China’s Little Emperors.” This makes it a prime market for premium and added-value products. Cereal Partners Worldwide will need to capitalize on this opportunity if the company’s leadership in this sector is not changed.

Trix Star, Star, and Koko Krunch, Cereal Partners Worldwide’s three brands of children’s cereals in China were Trix, Star (25%), and 20% (15%) respectively in 2005. The company’s offerings aren’t particularly healthy, making it vulnerable to competition with stronger health and wellness strategies as children become more obese in China.

These Four Car Dealer Tricks Cereal Partners Worldwide also face a risk in hot cereals. In 2005, they accounted for almost 53% of all breakfast cereals sales. They are forecast to increase that number to 57% by 2011. However, the share of children’s cereals is expected to decrease from 29% to 26 percent over the same period.

Keyword – What Type of Business Venture Is Cereal Partners Worldwide

More presence in packaged food is a key advantage over Kellogg’s.

Cereal Partners Worldwide’s initial strategy for the Chinese market was heavily based upon its corporate relationships with Nestle. Nestle’s strong presence within the wider packaged food industry gave Cereal Partners Worldwide an immediate market profile. This provided Cereal Partners Worldwide with a clear advantage over Kellogg, whose products are limited to breakfast.

Other breakfast cereal companies looking to be successful in developing markets will benefit from the wider strategy. Segmentation is important in markets with large income disparities. There are also the benefits and risks of having a single brand identity that spans multiple categories. However, the company’s experience shows how being too dependent upon a single market segment can make a brand more vulnerable in a changing market.

Chris
Chris
Chris Evan was born in Quebec and raised in Montreal, except for the time when he moved back to Quebec and attended high school there. He studied History and Literature at the University of Toronto. He began writing after obsessing over books.

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