Crunching the numbers – what the cereal aisle teaches you about your customers

Standing in the cereal aisle of the supermarket, I'm not just perusing the shelves for breakfast options. I'm here because of what it tells me about Australian consumers and how the economic landscape has changed over time.

Fruit loops or cocoa pops? Weet-Bix, healthy granola, or an indulgent breakfast bar? Faced with the enticing array of options – from wholesome granola to sugary delights – the cereal aisle is not simply about finding the right fit for your breakfast, but a reminder that consumer choices are more than selections of cereal.

From home-brand cereals to premium organic varieties, the cereal aisle now caters to a wide range of tastes and preferences. This diversity isn't random; it's a strategic response to Australia’s demographics – the traits that influence our behaviour and choices, from age and gender to income and education levels.

It’s crunch time. Let’s take a closer look at the cereal aisle, and what Weet-Bix, Australia’s most well-known cereal, can tell us about the economy and how understanding these trends can empower your business decisions and strategy.

Measuring Australia’s economy using Weet-Bix

In the last 50 to 60 years Australia has experienced an economic shift that has changed the job market, skillsets and the way consumers spend. These shifts aren’t just numbers they are demographic cues for businesses to adapt their offerings.

We’ve seen an increase in highly skilled industries and an expanding gig economy, with a reduction in more traditional middle-class jobs. Education and skill levels have created differences in incomes and spending habits, providing opportunities for businesses to anticipate and respond to market demand.

Let’s unpack what this means for business by looking at something familiar and measurable as our benchmark: a standard box of Weet-Bix, a beloved breakfast staple. Typically, in supermarkets, you’ll find this in the centre of the cereal aisle, with a 1.2 kg pack of Sanitarium Weet-Bix setting you back 50 cents per 100 g.

Now let’s say you’re standing in the aisle looking at the Weet-Bix section and you look to your left and right. What you would see is an exact mirror of the last five or six decades of economic development in Australia.

Reflecting on my stroll down the breakfast aisle, I remember a time when there was just the original Weet-Bix on its own. Now, two new product categories have emerged to cater to Australia’s changing consumer purchasing: home brands and what I like to call the ‘Paris end’ of cereals.

The home brand section, along with offerings found at certain supermarkets, has a clear idea of the market. The same breakfast we know and love with the same value as Weet-Bix, just at a much lower price (about 30% cheaper).

In today's consumer market, affordability is increasingly crucial, with a growing demand for lower-priced alternatives. For many, traditional middle-class products like regular Weet-Bix have become less accessible, due to their higher prices.

If we venture in the opposite direction of the aisle, we find ourselves at the ‘Paris end’ premium section, with ‘fancy’ Weet-Bix varieties. These are cereals with added value propositions, such as:

• Weet-Bix Protein makes us stronger
• Weet-Bix Organic is good for the planet
• Weet-Bix Kids … hmmm well it probably helps them grow.

The idea behind this emerging ‘value added’ product category is clear. These offerings are often advertised as a healthier or tastier version of the product we know, but at a significantly higher price. These ‘fancy’ Weet-Bix, at around $1.30 per 100 g, are more than twice as expensive. They target higher income earners seeking out health solutions who can afford luxury breakfast staples.

Diversifying your products and services

In today's changing world, businesses must adapt to meet the needs of a diverse customer base. The traditional 'one-size-fits-all' approach, like the classic Weet-Bix model which suited our 1970s outlook, is now outdated. Consumers now want more choices, including both affordable options and 'Paris end' high-end offerings.

The cereal aisle offers everything from budget-friendly home-brand cereals to premium organic varieties, reflecting a wide range of consumer preferences. This diversity is no coincidence; it's a strategic response to evolving consumer needs. By studying consumer preferences, businesses can anticipate market demands and adjust their product offerings accordingly.

For instance, recognising the surge of workers with more disposable income opens the door for businesses to market premium or specialised goods, while making affordable or accessible products for customers needing to stretch their dollar further.

Think about it like this: just as we all have our favourite cereal, businesses need to understand their customers' preferences too. Market research plays a vital role here, guiding businesses in grouping products into categories or offering low and high-end ranges that resonate with consumers. By doing this, businesses are essentially saying, "Hey, we get you!"

Researching your customer demographics

Is your business still imagining a market where everybody buys the standard Weet-Bix box? Or maybe you are trying to sell ‘Wheet Bix organic’ and wondering why your customers aren’t buying?

It’s time to shift your approach and conduct thorough market research. By understanding demographics like age, income, location, and lifestyle, businesses can give their consumers exactly what they want. Whether it's a budget-friendly option or something more premium, it's all about knowing your audience.

Most websites and social media platforms offer some kind of analytics or insights that allow you to see the basic demographics of your followers, such as age, gender, location, and interests. For example, Google Analytics for websites, Facebook has Audience Insights, X has Analytics, Instagram offers Insights, and LinkedIn has Page Analytics.

Another way to learn about your audience is by simply asking them. You can create online surveys or polls using tools like SurveyMonkey, Google Forms, or Typeform and include questions about their preferences, challenges, goals, and needs. You can also gather feedback through forms on your website or emails. By directly engaging with your audience, you'll gain valuable insights to better understand and tailor your product or service to meet their needs.

From demographic insights to business success

Now that we have these great insights, what do we do with them?

Knowing what motivates your customers to purchase will help you to better allocate your time and business resources to the activities that will give you the greatest return. It can also help you increase the effectiveness of your marketing efforts.

Through targeted advertising and influencer partnerships, businesses can connect with consumers on a deeper level, driving brand awareness and loyalty. Social media is also an easy way to directly reach your audience and connect them with your business. It's like having a direct line to your audience where you can chat, show off your brand, and gain loyal followers in real time.

Working out what resonates with your audience when it comes to your offerings is what will set you apart from your competitors and lead you on the road to success. Just as Weet-Bix has adapted to meet the evolving needs of Aussie consumers, your ‘bowl goal’ should be to decode your target market preferences. Whether you come up with a new product to fill the gap or offer a range of premium and budget-friendly options, demographic data will be your ultimate tool for success.

Additional links

For more information about identifying demographics, trends and tracking social change, visit the Demographics Group website.

A great place to start for Victorian statistics is the Australian Bureau of Statistics website.

Want to learn more about your social media fans?

Visit the Facebook page for demographic data about the people who follow or like your page.

Get support for conducting market research by visiting our market research page.

Need help with your market research? Visit our How to do market research page.

Looking to include influencer marketing in your marketing and product strategy? Business Victoria has an article on influencer marketing.

If you need advice on how to develop a new product or service, go to the Business.gov.au page on developing a new product.