Featherweights in the ring

This article is available for reading in Trade magazin 2024/5

Pricing and promotion given main role

However, the changing economic situation, the weakening of the forint and further increases in commodity prices – especially for cereals and cocoa – could pose new challenges for the cereals market.

Viktória Márkus-Mangov
brand manager
Nestlé Hungária

“In sales the biggest challenge is increased prices and the accompanying bigger price-sensitivity”,

says Viktória Márkus-Mangov, brand manager of Nestlé Hungária Kft.

Tamás Bozó
sales manager
GOF Hungary

“With the new conditions and price- and value-sensitive consumers, manufacturers and retailers are forced to adapt their pricing, product strategy and promotions if they want to maintain or increase their market share”,

says Tamás Bozó, sales manager of GOF Hungary Kft.

In such a situation consumers may tend to switch to cheaper cereals with fewer ingredients, or go from premium or branded products to lower-priced brands or private label cereals.

Tamás Bozó believes producers and retailers can try price cuts, promotions or coupons to make their products more attractive to consumers. Another strategy is to focus on private label products.

New cereal flakes bring new opportunities

Cerbona’s experience is that certain products such as functional cereals and new listings have delivered results even in these difficult market conditions.

Anna Pókecz
marketing manager
Cerbona

“In the breakfast products category, customers are either consuming less or other types of products, so we have witnessed a bigger sales decline there. We haven’t seen a major change in the cereal bar category”,

says Anna Pókecz, marketing manager of Cerbona Élelmiszergyártó Zrt.

Viktória Márkus-Mangov, associate marketing manager of Nestlé:

“This year the planned new launches of Nestlé’s cereal business line could create opportunities for growth, so we are looking forward to the next few months”.

Two new cereal bars already hit the market last year: white chocolate and honey flavoured Fitness Cereal Bar with sweetener is high in fibre, while the chocolate covered cocoa flavoured Fitness Cereal Bar with sweetener is also an excellent source of protein. This April the new Nestlé Minis products, in the form of tiny balls, appear on store shelves.

Manufacturers and retailers must adapt to the changing market conditions in terms of pricing, product strategy and promotion, too

Building on the success segments

Success could be achieved amidst difficult market conditions with special functional cereals and new listings