Question
Perform a CD-STEP (AKA: PEST(LE-C)) analysis for Magic Spoon . Include a minimum of 3 external factors that have affected Magic Spoon and their marketing
Perform a CD-STEP (AKA: PEST(LE-C)) analysis for Magic Spoon. Include a minimum of 3 external factors that have affected Magic Spoon and their marketing decisions. Include at least five (5) relevant points from the case or current events.
What would be the SWOT for Magic Spoon that includes at least two (2) points for each area.
Which of the following Targeting strategies has Magic Spoon used? Qualify your choice with two (2) well explained points.
Pricing is an important (if not the most important) part of the 4P elements and the most misunderstood in terms of execution. Magic Spoon Cereal is priced at a premium than its competitors due to the use of high-quality, Non-GMO ingredients. There are four different approaches to setting an approximate price level for a product. Identify the one selected for Magic Spoon when it launched. Briefly explain your choice using appropriate terminology and facts from the case.
Pricing is an important (if not the most important) part of the 4P elements and the most misunderstood in terms of execution. Magic Spoon Cereal is priced at a premium than its competitors due to the use of high-quality, Non-GMO ingredients. There are four different approaches to setting an approximate price level for a product. Identify the one selected for Magic Spoon when it launched. Briefly explain your choice using appropriate terminology and facts from the case.
lVlRK106 W21 Final Assessment Case Magic Spoon Cereal Cereal sales have surged in recent months as people are seeking comfort food during quarantine. There is a growing number of professional, financially stable, college educated, Gen X and Millennial consumers looking for food that offers comfort and nostalgia. Cereal is in that category, but many of the options out there aren't very healthy making them unattractive to these health-conscious, active groups. One company that has benefitted from the increased demand is Magic Spoon, 3 direct-to-consumer (DTC) startup that offers cereal that specializes in I'highprotein, non-GMO, gluten-free, grain-free, soy- free, wheat-free, nothing artificial, childlike cereal for grown-ups". '- f gnetcwisc Launched in early 2019 by Gabi Lewis and Greg Sewitz, Magic Spoon was inspired by the avors and nostalgia 0f Saturday-morningcartoon cereal but upgraded for a 215t-century consumer. \"When we started, big food manufacturers told us that cereal was a bad idea. It's a declining market and the retail aisles are controlled by huge brands, making it hard to get shelf space\" says Lewis. The average American eats 100 bowls of cereal a year, and kids are one of the largest consumers. The North American cereal market is valued at around $113 with the global market between $353-$403. The market is currently dominated by General Mills (Cheerios), Kellogg (Frosted Flakesl and Post (Honey Bunches of Cats]. In addition to the cereal market, Magic Spoon has additional growth opportunity as it is also a potential substitute for protein bars and supplements. The protein bar market is projected to reach USD 57.03 billion by 2027 with a compound annual growth rate (CAGRI of 5.6% whereas the Protein supplement market is expected to reach USD $26.05 billion by 2028 with a CAGR of 3.4%. Available exclusively via the Magic Spoon Web site, the cereal retails at just under $10 USD a box, and have a 4-box minimum order for $39.00 USD (4 x 7 oz boxes, 51.03/02, direct). While this is pricier than their competitors, the company offers an innovative subscription service that features a discount and free shipping. Competitors include the Forager Pro'ect who offer a 4pack of their \"Sweetly nostalgic, organic, gluten-free\" cereal in for $29 (4 x 7.5 oz bOxes, 50.98/02, Amazon) and Cascadian Food with their Fruitful 0's Cereal which sells in a 10.2 oz box (50.41/02, Walmart, Amazon). Magic Spoon comes in four flavors: Fruity, Cinnamon, Cocoa, FROSTED FRUITY and Frosted. All of them are made with a protein blend (milk Nutrition Facts Nutrition Facts protein isolate and whey protein isolate), coconut oil, tapioca servings per container Serving size % Cup (28g) servings per container Serving size % Cup (28g) flour, chicory root fiber, and a unique sweetener blend of monk ant Per Serving 110 punt Per Serving Calories Calories 110 fruit, Stevia, and Allulose. According to Magic Spoon, "Allulose is 35 Dally Value" %% Daily Values Total Fat 6g Total Fat 6g 9% a 'rare' sugar found in things like figs and maple syrup. It tastes Saturated Fat 5g 27% Saturated Fat 5g 27% Trans Fat Og Trans Fat 0g just like 'regular' sugar, but has zero glycemic impact and almost Cholesterol 10mg 4% Cholesterol 10mg 4% Sodium 60mg 2% Sodium 60mg 2% zero calories (less than 0.4 cal/g)." Then, depending on the Total Carbohydrate 89 3% Total Carbohydrate 8g 3% flavor, there are other additions, like cocoa powder or Dietary Fiber 2g 7% Dietary Fiber 2g 7% Total Sugars Og Total Sugars 0 vegetable juice. All varieties contain 12 grams of protein, and Includes Og Added Sugars 0% Includes Og Added Sugars 0% Protein 12g 24% Protein 12g 24% only three grams of net carbs. Vitamin D Omcg 0% Vitamin D Omcg 0% Calcium 260mg Calcium 260mg 26% Since their launch, Magic Spoon has been featured in many Iron 0 mg Iron 0 mg Potassium Omg Potassium Org 0% media publications including CNN, Hypebae, Delish and The % Daily Value be The %% Daily Value tells you how much a In a daily del 2.000 calories a day is 10 a day ciel. 2.000 calories a day is Business Insider, to name a few. Jessica DeFino from Business used for general nutrition adv Ingredients: Protein Blend (Milk Ingredients: Protein Blend (Milk Insider wrote the following headline for her article review of the Protein Isolate, Whey Protein Isolate), Protein Isolate, Whey Protein Isolate), Coconut Oil, Tapioca Flour, Sweetener Coconut Oil, Tapioca Flour, Sweetener product, "Magic Spoon is cereal for adults that's high in protein Blend (Allulose, Monk Fruit Extract, Blend (Allulose, Monk Fruit Extract, Stevia Extract), Chicory Root Fiber, Stevia Extract), Chicory Root Fiber, and low in sugar - I'm impressed with how delicious it is." Natural Flavors, S Natural Flavors, Salt, Vegetable Juice. Contains: Milk, Coconut. Contains: Milk, Coconut. Manufactured In A Facility Which Manufactured In A Facility Which Like most Direct to Consumer companies, Facebook and Processes Wheat, Other Tree Nuts, Processes Wheat, Other Tree Nuts, And Peanuts. And Peanuts. Instagram are the biggest advertising channels. With 200,000+ followers on Instagram for example, Magic Spoon has a much NET CARBS NET CARBS larger social media following than traditional cereal brands Bg CARBS 8g CARBS - 2g FIBER -2g FIBER Another advantage for Magic Spoon is the popularity of the - 3g ALLULOSE - 3g ALLULOSE Ketogenic diet which seems to be a common theme among the = 3g NET CARBS =3g NET CARB cereal's followers, that leave rave reviews on virtually every post. Recently the company has begun to leverage influencer campaigns to great success. One influencer of note is Questlove (from hip-hop band The Roots, the in-house band for the Tonight Show with Jimmy Fallon) who put up a social post talking about how much he loved the product and is now an investor in the company. "Since the product is marketed with health benefits, it's very important to have word-of- mouth" says Lewis, "It's better if customers see someone they trust talking about the product and not just us." Recommended Viewing: . The following video is a compilation of Breakfast Cereal commercials from the 1970's era. These are some of the nostalgic flavours that Magic Spoon is trying to replicate. https://youtu.be/sjDmgOOb49w Magic Spoon Web Site: https://ca.magicspoon.com/Step by Step Solution
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