General Mills, Inc. has been selling Cheerios since 1941, so the company has a legacy of providing Cheerios to consumers. The product contains healthy ingredients where consumers benefit from consuming ready-to-eat cereals. The inclusion of the ingredients makes the value important and the quality of the cereals increases in value. There has been an increased demand for healthy ingredients recently and Cheerios continues to succeed in this factor and continues to help consumers' health. Additionally, Cheerios is part of a General Mills movement whose mission is “to feed everyone by making life healthier, easier, and richer (An “O” Shaped by History, 2013).” This means that General Mills is getting better at providing healthier products by competing with generic brands. Five-Year Financial Overview: At the end of the year. 26/5/2013 27/5/2012 29/5/2011 30/5/2010 31/5/2009 Share price 48.22 36.52 36.32 31.93 22.28 Revenues 17,774,100,000 16,657,900,000 14.88 0. 200,000 14,796,500,000 14,691,300,000 Profits 6,432,900,000 6,044,700,000 5,953,500,000 5,873,600,000 5,233,500,000 Profit margin % 10.44 % 9.41% 12.09% 10.34% 9.64%Growth rate % 2.64% 2.02% 3.14% 2.93% 2.67% Over the past five years, General Mill's net sales have increased at a steady rate with the exception between 2009 and 2010 where the United States is still recovering from a recession. At the end of the year 2012, which saw an increase in consumer purchasing behavior, General Mill's sales increased by 12% compared to the previous year 2011. This was caused by a strong performance abroad which increased by 46% year after year. U.S. retail sales increased just 3%, modest growth. Additionally, the U.S. Retail segment contributes over 60% to General Mills… middle of the paper… Cheerios will continue to include all benefits in the Product Review section, while introducing new benefits in the box . Cheerios will keep the bright yellow box because it attracts attention, as well as retaining the information shown on the front of the box, such as helping to "lower cholesterol" and "contains less sugar." The new benefits that will be added are different stories on the back of the box. The stories will be about how Cheerios shape a person's life. For example, a story may be about how a mom gives her children Cheerios because she wants them to get a daily serving of vitamins and minerals because she wants her children to learn better in school. Pricing Strategy: Cereal prices depend on brand and weight. Cheerios has many on the market for many years and their prices depend on weight, ounces.
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