CookIns Market Funnel

Cookie Demand:

The U.S. cookie industry makes up 27% of the 2012 U.S. cookie, cracker, and pasta market.  Its total revenue is $6.075 billion, $1.0 billion of which was profit.  The overall cookie market is largely driven by the number of American households with children under 12 years of age, as 97% of cookie consumers are children under 12.  While the overall U.S. cookie, cracker, and pasta industry is expected to grow at 2.0% annually over the next five years, the cookie share of that is expected to decline slightly due to a decrease in the number of American households having children.  There is, however, a growing trend in healthier, more natural products, and there is an opportunity to capitalize on this growing trend.

Addressable Market:

Demand for crackers & cookies is directly proportional to income growth, meaning households with a higher level of disposable income are more likely to purchase cookies.  There is also a growing trend in changing dietary and lifestyle patterns, where consumers are increasingly conscious of their health and strapped for time.  Consumers are increasingly looking for low calorie snacks that can be easily consumed on the go.  While CookIns are not considered to be a healthy option by any means, they are small and made of all real, natural ingredients, and can be easily be eaten as a snack on the go.

Realistic Opportunities vs. Competition:

Much of the cookie market is dominated by a few key players such as Oreo, Nabisco, and Ritz.  These examples have stayed strong despite a recent slip in the market due to their high level of brand loyalty.  It will be nearly impossible to try and compete directly in this specific market due to the strength of these brand names.  There are, however, opportunities that exist where there are little to no brand names in direct competition.  Places like Whole Foods Market & Trader Joes spend their efforts looking for all natural options and in many cases will try to promote the small local producer.  These stores also happen to cater to houses with higher disposable income, as well as those looking for healthier, more natural options.

Targeted Selection of “Winnable” Market Opportunities:

Combining the opportunities listed above, the most promising “winnable” market for CookIns is the middle to upper-middle class family with kids.  These families are typically short on time, as both parents are working, and the kids are involved in extra-curricular activities.  These families are also likely to be part of the growing trend of people looking for healthier, more natural options.  CookIns help with both of those issues, as they are quick and easy to prepare, while also providing a high quality dessert.  They involve no clean-up, and can be eaten as a snack on the go.  Combining these factors gives CookIns its best shot at its “winnable” market.

Works Cited

IBISWorld Industry Report C1114-GL. (2012). Global Bakery Goods Manufacturing. IBISWorld.

Tang, O. (2012). Cookie, Cracker & Pasta Production in the US. IBISWorld.