Given the costs involved in producing a typical box of breakfast cereal, how would you describe the pricing strategies of the manufacturers?
Question 2. Go to a large chain supermarket and work out the following:
A. The highest price breakfast cereal, and
B, the lowest price breakfast cereal.
C. Are there price bands, if so, at what price levels?
D. What seems to be the average price?
E. What percentage of brands is on special offer, and what kinds of offers are they?
F. Are there private label brands ? At how many price points ?
Question 3. Based on your findings, describe the nature and structure of competition in the breakfast cereal category.