Cereals begin to lose their snap, crackle and pop

1. Cereals begin to lose
their snap, crackle and
pop
Indira Priyadarsini
Megha chandrika
Rajat Rastogi
Supraja
pallash

2. US Breakfast : CEREALS
 Cereal, the bedrock of the American
breakfast, has lost some of its snap, crackle
and pop
 WHY??

3. FACTORS:
 Economic changes: In mid 1990’s only cereals are
consumed.
 Taste and preference: People are now using yogurt, bagels
etc. for breakfast.
 Health consciousness: people driven by health use non fat
foods which are gluttenfree.
 Birth rate declining: since most of cereals is consumed by
children.

4.  Demographic factors: Many surveys have shown
that Latinos and Asians prefer other breakfast
foods.

5. Substitutes and complimentaries
Substitutes
 Yogurt
 Bagel
 Atkins diet
Complimentary
 Milk
 Fruit

6. shift in demand

7. Cereals price and production curve

8. Indifference curve
 The utility is same whether people intake cereals or bagel or
yogurt.
Yogurt
cereals

9. Monopolistic competition
 Cereals are category which are belonging to the
monopolistic competition
 Since they are some similar products like cereals like
waffles, competition is there.

10. ELASTICITY:
 Point elasticity can measure price elasticity at a point in
the demand curve. So we can measure it from the demand
curve of cereals in US consumption.
 Price elasticity of cereals is inelastic.
cereal price elasticity of demand
all family breakfast cereals -1.8
all types of cereals -0.9

11. Change in consumption 2003-2013
FAMILY CEREALS
–5.5%
Flaked cereals
Including corn flakes, Raisin Bran, etc.
+1.8%
Muesli
Rolled-oat and granola-type cereals.
–3.4%
Other
Including puffed wheat, Cheerios, Life
cereal, etc.
CHILDREN’S CEREALS
–10.7%
All types
Including Lucky Charms, Cocoa Puffs,
etc.
Taken from New York times 6th
sep,2014

12. Conclusion:
 Thus we can say that the demand for the
cereals is decreasing due to many factors
like substitutes,demographic factors..