The purpose of the following proposal is identification and development of new type of cereals. As preliminary analysis has shown, Cheerios has two biggest competitors Kelloggs and Malt-O-Meal. Taking into account great variety of products and brands of both companies, it is recommended to Cheerios to widen range of goods for staying competitive and increasing peoples awareness and demand for our assortment. It is imperative to raise number of Cheerios cereals from 11 to 20 at least. On contrast to that Kelloggs cereal category contains 27 varieties, while Malt-O-Meal has 19 types of cold cereals and 4 types of hot ones. Therefore, Cheerios should provide broader choice for the consumers, proposing absolutely new and delicate tastes.