The document provides an analysis of the cereal industry and environment for Honey Nut Cheerios. It discusses key points: - Cereal industry sales were $9.1 billion in 2008, peaking at $10.8 billion in 2009, then declining to $9.51 billion in 2012. Consumption has dropped 1% annually for a decade. - The industry faces challenges like consumers choosing healthier/more convenient breakfasts and declining birth rates reducing the target demographic of children. - General Mills' top competitors are Kellogg, Kraft, and PepsiCo, who together control 55% of the market. General Mills has 31% share. - Trends impacting General Mills include

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Honey Nut Cheerios
Lawrence Washington
MKT 305
Professor William Bodlak
September 16, 2013

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Industry Analysis
Honey Nut Cheerios is a competitive brand in the cereal industry. Cereal is the seventh
most popular supermarket product (behind carbonated beverages, milk and natural cheese,
beer/ale/alcoholic cider, fresh bread and rolls, salty snacks, frozen dinners and entrees). In 2008,
the cereal industry had $9.1 billion in sales (Highbeam Business). In 2009, sales increased to
$10.8 billion (Prepared Foods Network). In 2010 and 2011, sales were nearly unchanged, with
both years bringing in approximately $10.2 billion (Mintel). In 2012, the industry saw a decline
to $9.51 billion (Food Navigator).
Cereal had its strongest growth in 2006-2007, but has since seen a fairly steady decline in
sales recently, due to consumers choosing healthier foods, or choosing more convenient
breakfasts that can be eaten “on-the-go”. Other than a slight spike in 2009 due to the recession
and consumers opting for the lower price of RTE cereal, US consumption of cereal has dropped
an average of 1% per year for the past decade (Bakery & Snacks).
The cereal industry can be broken up into the following segments: ready-to-eat (RTE),
hot cereals, and cereal bars. Honey Nut Cheerios is a ready-to-eat breakfast cereal. The RTE
segment makes up the majority of the sales in the industry at nearly 90% (Mintel).
Major trends affecting the cereal industry now are: as the economy improves, people are
returning to work and no longer have time to sit down to breakfast at home; breakfast has
switched from being one of three square meals a day to more of a snack; declining birth rates are
contributing to a decline in one of the cereal industry’s primary target demographics, children;
new innovations in getting cereal to consumers are changing the products cereal companies are
putting out (eg. the drinkable cereals General Mills is coming out with or the increase in cereal
bar sales); and consumers are more interested in the health benefits of breakfast and are choosing
more health-conscious items.

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Environmental Scan
Economic
Some of the biggest trends in taxationand income sources that have an impact on the firm
are the effect of inflation on operating costs. There is a rise in supply chain costs that have
doubled the annual inflation rate. These statistics have thrown off projections that are used in the
long-term planning process.
Another factor is the impact of a slow economic recovery on a global scale. After the
world economy was crippled by recession, there has been a slow recovery process. Consumer
budgets have not yet returned to levels of the past. In lieu of these challenges the company has
been able to keep pace through a restructuring that has been able to hit on growth strategies.
Issues stemming from the trend of higher operating costs have forced General Mills to
invest more money internally. In order to make adjustments to current trends, the company has
established a set of goals for the 2013 fiscal year. Planning begins with making a bigger
investment into traditional media sources. Also the company will have a bigger presence in
digital and social media. General Mills recognizes that technology has provided new marketing
possibilities through outlets such as Facebook and Twitter. These tools allow the company to
market products in a unique way where it is possible to reach out and receive feedback from
consumers. Essentially, the company is able to get valuable feedback that can help determine the
success of a product from a marketing standpoint.
General Mills also plans to zero in on sales and earnings growth based on products that
are already established within the company umbrella. Through analyzing the marketing
strategies of these successful products, new products can be released to a warm reception. While
General Mills hopes to maintain their core developed markets, there will be a shift in focus
toward expansion into a wider developing global market. These goals are the key to

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counteracting new trends that are affecting the economic future of General Mills.
Social cultural
The company focuses on bringing out nutritious and convenient foods for its consumers
by offering a variety of product innovations. In 20ll, the company launched cereals and brownies
that have lower calories in them. The company also made health improvements in many other
products they offer. General Mills added gluten-free and low-sodium offerings as part of their
nutrition-conscious offerings. The company focuses on controlling obesity by maintaining
healthy products. General Mills offers whole grain, gluten-free, all-natural yogurt, and organic
products. Some of them were core products for the company, such as Honey Nut Cheerios and
Big G cereals. The company also focused on the positive outlook for the yogurt market. The
consumption of yogurt is growing worldwide, especially in General Mills’ developed and
emerging markets.
Demographics
General Mills is one of the largest global producers of packaged consumer foods. The
company’s headquarters is in Minneapolis, Minnesota. The company operates in over 100
countries besides the U.S. The company also has another 28 locations within the Unites States.
The company operates through three business divisions: US retail, international bakery services,
and foodservices. In the 1960’s General Mills began an extensive change and the company
continued to divest nearly all of its non-food operations until 1980. General Mills strengthened
the company by creating two international ventures, Cereal Partners worldwide (CPW) with
Nestle, and Snack Ventures Europe (SVE). In 1995, General Mills sold off their remaining
side businesses and the company again focused on its most beneficial principal business, food.
The company continues to grow by partnering with other businesses and with help from
scientists and engineers. Last year, the company announced productivity and cost savings plan

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to improve organizational changes that would strengthen business placement; they also
announced other new ideas to increase administrative efficiencies across the company.
Political, Legal, and Financial
Laws that are being proposed that could affect marketing strategy for cereal:
 Federal government’s proposed nutrition guidelines, which recommend no more
than 26% sugar content. Only one in four cereals currently marketed to children
would meet these guidelines (Food Politics).
 Unlike many other countries, right now the US has no genetically engineered or
GMO food labelling laws. However, 47 states currently have proposals to add
these laws. Many ingredients in cereal, especially corn products, would fall under
these laws, should they take effect (Prison Planet).
Recent changes in laws regarding GMOs in other countries affect General Mills’
marketing worldwide. In many countries, they are now required to label their products with all
GMO foods that are used in manufacture of the product. The recent proposals about the way
sugary cereals are marketed to children have prompted the industry to declare that they will
self-regulate these practices.
General Mills takes a proactive approach to address any issues in the current political
climate. General Mills has made efforts to reduce their environmental footprint and sustainably
source their raw materials in response to the current political climate of being environmentally
responsible. In 2011, General Mills joined forces with 16 other food and beverage companies to
establish uniform nutrition criteria for foods marketed to children fewer than 12. General Mills
has made a commitment to human rights and are signatories to the United Nations Global
Compact, promoting responsible sourcing.

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Technological
Honey Nut Cheerios uses advertising as their primary promotional means. They teamed
up with Fox network to get additional support. They want to attract younger users by putting
games on back of the box and a puzzle inside. Separate tie-in with Musicland Group includes an
in-store sweeps to win a walk-on part and tour of the TV show set. Aggressive advertising is
critical to capturing a piece of this huge market. Two recent projects exemplify the types of
advertisements that are being generated to enhance product recognition. According to
company, they will not only advertise select fruit snack products, such as Fruit Gushers, on the
Web site, but will also advertise in Mama Media’s print magazine, Mama Media a Kids' Guide to
the Net.
Environmental
The company offers a variety of items that are related to a low calorie diet. Yoplait
Yogurt was one that achieved approximately $1.49 billion in sales in 2011. Bundled with
attractive packaging and aggressive promotions, the company’s leading market position would
help it to leverage the opportunities in the US as well as the global market. They are expecting
to exceed $67 billion by 2015. With new launches and expansion of the present product
platform, the company expects these opportunities to contribute towards future growth.
According to industry sources, the emerging companies are expected to contribute 95% of global
population growth, more than 60% of global GDP growths, and three times faster disposable
income growth. In 2012, General Mills announced a productivity and cost savings plan to
improve organizational effectiveness and to focus on key growth strategies. General Mills is
focusing on commodities such as grains, sugar, dairies, vegetables, fruits, and other agricultural
products. Since the prices of these commodities increased, General Mills decided to cut the costs
by cutting 800 jobs and increasing the production of cheerios cereals and Progresso soups.

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Increase in the costs ofkeyraw materials could bring in pricing pressures and impacts the margin
unfavorably. General mills are an environmental friendly company that is trying to make people
lives heartier and healthier.
Competitive Analysis
The top three competitors of General Mills are: Kellogg Company (K), Kraft Foods Inc.
(KFT), and PepsiCo-Quaker Oats (OAT). They are the biggest competitors competing against
General Mills, as together the three companies’ control 55% of the market. General Mills
controls 31% of the market. Kellogg is #1, followed by General Mills # 2, followed by Kraft at
#3, and PepsiCo’s Quaker Oats at # 4.
Special Strengths: Kellogg Company has a very strong brand portfolio aided by
appropriate investments on brand building. They focus on product innovation that helps to retain
customers and improves the product mix. Furthermore, Kellogg has a strong market position in
the breakfast cereal category as it is the current leader in the market over General Mills. One of
their top selling cereals is The Special K series. Kraft Foods Inc. has a strong market position
worldwide. They also have diversified product offerings complemented by strong brands. Third,
they have a strong global distribution network. Their top selling cereal is Honey Bunches ofOats.
PepsiCo-Quaker Oats has a diverse product portfolio and strong brand equity. They also have a
unique robust growth in revenue and operating income assures a competitive position in the
cereal market. Finally, they also enjoy a growing presence in emerging markets. Their top
selling cereal is the Life cereal series. The top selling cereal for General Mills is Honey Nut
Cheerios.
The competition is very effective and fierce, like a great baseball game. The competition
is so intense that over the past five years, Kellogg Company (K) and General Mills (GIS) have

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been neck and neck for the top spot in the cereal market. General Mills (GIS) held the top spot
until 2012 when Kellogg Company (K) finally took over it and has been able to maintain it to
present day. The Private labels, Kraft, and PepsiCo-Quaker are also beginning to gain ground in
the market. Slowly these companies are trying to build their brands to become players rivaling
the top dogs in the cereal market.
Kellogg Company offers the Special K challenge as a benefit. The new line of cereals
designed to help consumers lose weight and eat healthy has brought tons of consumers to
Kellogg. It has helped spark a new healthy eating phenomenon that now has an app of its own
that can be used on Facebook, to share and track weight management with friends. Kraft is
building brand loyalty through social media and other channels. They are also building consumer
affection in unprompted ways. Who doesn’t have a Facebook page these days? We all have some
type of social media access and Kraft is putting their product for us to see, like, and purchase.
This is a great benefit that Kraft Foods, Inc. offers. PepsiCo-Quaker has its products packaged
using environmentally-friendly materials. Through innovative technologies that benefit the
environment, theyare garnering consumers that are environmentally friendly. One of their highly
touted creations is the (PET) bottles, made from plant based materials.
The current market shares of our competitors are Kellogg Company (K) they control 34% of the
market and are our current leader in the cereal market. We at General Mills (GIS) are a slight
second with 31% of the market. Kraft Foods Inc. (KFT) has 14% of the market share. Lastly,
PepsiCo-Quaker (OAT) holds 7% of the market. The rest of the market is held by tiny scattered
private labels and organic brands of cereal.
The marketing strategy of Kellogg Company is called “Volume to Value” Brand
Building. They will put emphasis on new products, nutrition news, and promotional news also
developing less sugary cereals for nutritional healthy eating habit trends. Kraft and their

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marketing strategy will be a mobile first approach designed to improve point of sale purchases
via smart phones. It will include in store marketing, location based advertising and social
television applications thus, hopefully being able to increase impulse sales for 2013. Pepsi-Co
Quaker and their marketing strategy will focus mainly on entertainment TV as a piece of the
puzzle. Consumers like entertainment and Pepsi-Co Quaker will push their products via
television. They have teamed up to create “Yo Sumo” a documentary with Eva Longoria. They
have also launched “Circle of Eight” on my space and “If I Can Dream” on Hulu. They have also
been heavily involved with NBC and Saturday Night Live too. On CBS on Entertainment
Weekly They showcase Pepsi-Max exclusively. The ultimate goal is to create content that
engages consumers, getting them closer to the brand and thus creating a revenue stream and also
increasing product demand and sales. Two indirect competitors for the market are Mars Inc.,
privately held not traded. The other indirect competitor would be Nestle USA Inc. (NSRGY)
Company Description
General Mills reputationoverall is that customers are verysatisfied. “General Mills is one
of the world’s largest companies”. Their product quality is graded with an “A” as well as their
service quality which is an “A”, as listed by Standard and Poor’s surveys. General Mills’ current
market share is 52.67% +0.23 (0.44%) listed by Google finance. They have been in business
since 1856. They also offer many different varieties of foods which you can find even in your
household and may not even know that it was General Mills that helped produce the items. Some
things that the company offers are baking products (Betty Crocker), cereal, dough/pastries, fruit,
ice-cream, pasta, pizza, snacks, soups, vegetables, and yogurt. Some of the major products that
theysell are highlighted as told by Standard and Poor’s. General Mills has beenaround for over
a hundred years and has grown to be one of the biggest companies. Some products that they

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produce that are market leaders are their cereal that everyone loves. The reason is because when
someone thinks of General Mills, they think of cereal. Some great examples of market leaders for
General Mills are Cheerios, Lucky Charms, and Trix. One more major marketing brand that they
have is Yoplait, which everyone knows of, and is one of the first yogurt brands thought of when
thinking of yogurt. General Mills is a very large company and can manage and continue to grow
and also provide great food that everyone loves. They will continue to grow and continue to be
successful and leave families happy, leaving memories in homes because of the foods that they
produce.
Mission Statement
“Our Mission is to make lives healthier, easier, and richer. General Mills is Nourishing
Lives.”
General Mills clearly meets the criteria outlined for what industry standards consider a
good mission statement. This statement is broken down into three key components that are vital
to the success of any organization. General Mills main focus is to make lives healthier. This is
accomplished through refining the products released under the organization’s umbrella. Products
such as Yoplait yogurt, Small Planet Foods products, Fiber One, and a full line of whole grain
cereals are marketed to the public as viable health options.
General Mills is making lives easier. There is a clear emphases placed on convenience.
The company provides a full line of sensible meal options that aim to be child friendly while
cutting down on preparation time. This concept is unique in the sense that families can have
quick quality meals without having to compromise health and nutritional standards. Essentially
with products such as Betty Crocker box dinners, General Mills is telling the public there is an
alternative to dining at fast food restaurants.

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General Mills last area of focus is to make lives richer. This has been accomplished
through identifying needs of potential buyers, and tending to these needs. In the United States
health and nutrition has been made a priority during recent years. In 2005 General Mills gave the
company a facelift buy improving the health profile of its products. Almost 70 percent of United
States retail sales are comprised of these products.
This organization seeks to find a balance between just making a dollar, and genuinely
listening to the needs and wants of customers.
Overall, General Mills displays good corporate citizenship. This is achieved through the increase
of environmental efficiency during business practices. The organization decreases usage of
water, and uses recycled materials in packaging. With the three key areas of focus General Mills
is achieving its goal of nourishing lives.
SWOT Analysis
Strengths
 General Mills has a diversified portfolio of products available to the public. Established
brands such as Pillsbury, Betty Crocker, and Yoplait have been the catalyst of the
organization, while generating significant revenue worldwide. General Mills Net sales
show a 12 percent increase that accumulates to an estimated $16.7 billion for the 2012
fiscal year. This shows that the organization does not gamble its future on any one
particular product in the fold.
 General Mills has built a track record of consistent growth. From the inceptionof a global
economic recession to the recovery stage, General Mills has managed a double digit
compound annual return to shareholders.

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 Versatility is the greatest strength of the company. Innovative business strategies allow
the organization to maintain its relevance. Through a detailed analysis of industry and
public demands for today’s market, General Mills is able to provide a line ofproducts that
appeal to the masses. Brands such as Yoplait yogurt, and fiber 1 cereal bars have been
distributed in an effort to capitalize off America’s new obsession with health
consciousness.
 General Mills is a leader within the food industry in regards to ethical and environmental
practices. The organization has gone to great lengths to reduce their environmental
footprint. General Mills continues to lead the way through exploring new options for
production through the recycling of resources.
 General Mills is a well-established organization with strong brand equity. The company
delivers quality products in a variety of markets around the world.
 Consumers remain loyal to the company’s products due to the recognition of consistency
and quality of products.
Weaknesses
 The corporation is heavily invested in the marketing of products in the United States.
Although revenue has been steady in recent years this is not a guarantee for the future.
More emphasis needs to be placed on the global marketplace where there are more
lucrative opportunities.
 Company expenses are rising at a very high rate. Industry operating costs have caused
General Mills to spend more money internally for production of their products.
 Little exposure in up and coming markets. Only ten percent of General Mills total sales
revenue is generated from newer emerging markets. In order to overcome this obstacle
the organization has to rely on the acquisitions of other already established brands.

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 Expansion has taken place too fast in certain small international markets. Marketing of
the Haagen-Dazs ice cream brand did not do well in the Philippines, due to various
factors such as complications with the marketing strategies and difficulty importing
products with a strained relationship with customs officials.
 General Mills is having a difficult time dealing with the price of grains, which is currently
priced at a high rate. This commodity cost dramatically affects the company’s profit
margin.
Opportunities
 Refine consumer marketing techniques. The opportunity to effectively capitalize off
social media is a great possibility. Although General Mills has many established brands
in the United States, using current internet technology to increase international brand
awareness could be a great tool.
 Consumer marketing should be used. This would allow the company to zero in on the
target market and better understand what these consumers are looking for from the
product.
 The company should continue to expand on their promotion of health consciousness.
Current trends show that the American public has gravitated to healthy lifestyles.
 In order to gain more customers, the company could focus on marketing products in
international markets. There are greater opportunities to generate revenue in Europe.
 Revenue could see an increase through more effective technological marketing. Social
media is the greatest tool available in the current marketplace. Social media changes how
business is done by having a direct interaction with consumers.
Threats

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 General Mills products have significant brand recognition. However, sometimes
consumers bypass these brands opting for the local grocery store house brand. This
move is usually motivated by the house brand being sold at a lower price.
 The greatest threat for the company is the emergence of private labels. Reports show that
consumers tend to gravitate towards private labels. Growth in this market is increasing
dramatically.
 Commodities such as grain are high in demand. The prices on commodities continue to
increase. The amount the company spends on commodities for products effects overall
profit. This usually results in the increase of prices on the consumers favorite products.
 Kellogg is the greatest competitor in the cereal market today. Kellogg produces a high
variety of popular brands that range from kid friendly brands to health conscious options
for the sophisticated adult. Due to the fact that both companies offer many of the same
options, the battle for consumer’s brand loyalty makes Kellogg a viable threat.
 Anycompetitor currentlyoperating on the international market is a threat to the company.
General Mills has not yet fully established itself internationally. Any direct competition
that beats them to it may secure brand loyalty from consumers.
Target Market
Honey Nut Cheerios is the number one selling cereal in the US (NY Times). General
Mills therefore considers all of America as their target market, but they break their marketing
down into different forms directed at different segments of the population. They use a “two
story” approach: the fun story and the health story. General Mills uses the sweet taste and the
cartoon bee on the logo to focus marketing to children, while the health benefits of all the
Cheerios products are promoted towards consumers who are striving to eat more health

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consciously.
Honey Nut Cheerios has the American Heart Association’s certification for being “heart
healthy,” helping the brand retain its positive reputation for being a healthy breakfast option.
Shoppers view the price of Honey Nut Cheerios as about average for a brand name cereal, but
price of cereal in general is a frequent complaint amongst consumers. General Mills’ Cheerios
line as a whole is primarily marketed to families, particularly those with young children. A recent
ad brought some free (and possibly unwanted) publicity to the company after they featured a
racially mixed family in a commercial; the negative reaction of a few brought out many old and
new fans coming to the cereal’s defense. The main focus of advertising for Cheerios is to be “so
ubiquitous as to be almost invisible” (AdWeek); General Mills strives to make the product so
much a part of peoples’ lives that they don’t even notice it. The controversy surrounding the
mixed family advertisement brought the Cheerios name to the forefront of news topics, but it
helped solidify the brand in many peoples’ eyes as a brand that is for everyone and a brand that
has good values.
The most common way for consumers to find out about Honey Nut Cheerios is
commercials on TV. The Saturday morning cartoon time slot is the primary time the brand is
advertised. However, the brand is now branching out into social media, using Facebook and
Twitter as a way to reach a new audience. Many consumers have been buying Honey Nut
Cheerios for so long that it is now habit, while others decide to purchase the brand based on the
purported health benefits. The Cheerios line as a whole is often placed at children’s eye level in
stores, a prime location for marketers because children oftenare the ones who select which cereal
a family purchases. For shoppers who don’t buy Honey Nut Cheerios, the primary reasons are:
too much sugar and cereal as a whole is seen as an unhealthy choice for breakfast now that there
are so many other convenient options available.

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As the number one selling brand of cereal, Honey Nut Cheerios doesn’t need to change
much about their target market strategies. One thing they could focus on is focusing more on the
adult market. The cereal has many healthy attributes, but the strong marketing to children leaves
manythinking that it’s nothing more than a sugarychildren’s cereal with no health benefits at all.
They need a stronger social media presence, as that is one of the top ways consumers get
information now. Lastly, expanding their marketing emphasis to groups other than families (eg.
the highly sought 18-34 year old demographic) would result in a new customer base for the
brand.
Product and Positioning
A company profile of General Mills, which provides packaged consumer foods ranging
from frozen vegetables and refrigerated yogurt to refrigerated dough and dessert mixes, is
presented. Made with 100 percent natural whole grain oats, Cheerios is the only major breakfast
cereal grain proven to help lower cholesterol. Cheerios is a healthy start to the day or a perfect,
crunchy snack for the entire family. One strategy used by producers includes repositioning of
existing products to emphasize health benefits as that of Quaker Oat Cereals and General Mills'
Cheerios. Adding oats into the new product and making it gluten-free will help satisfy
consumers. The cereal company's announcement in late 2008 reinforces data from Mintel
Consumer Intelligence in Chicago, which shows gluten-free new-product launches have grown
significantly over the past several years.
Consumers diagnosed with celiac disease, a nonfatal sensitivity to gluten, a composite
protein found naturally in grass-related grains including wheat, rye and barley, are pursuing
gluten-free foods more frequently. Consumers are increasingly turning packages over and
making their own decisions about health using the information found on the back of the Cereal
box. Most consumers confirm that they read nutritional information before buying a Cereal. The

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product bears uniformity to the consumer by using similar messaging across categories. It
should be a high-quality product with innovative packaging that is organized. General Mills is
in the growing stage of the product life cycle. This is evidenced by the target segment and
positioning of the company analysis from the positioning map. The company is more
sustainable by introducing new products. Recently they introduced Fiber one, which performed
well and has good consumer recognition. General Mills is still facing increasing competition
from store brands, because store brands offer lower prices without advertising costs.

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Pricing
Pricing should be used as alternative product variances, where General Mills attempts to
sway the developments of its debt so as to not have too large a portionof its debt due in any given
year. Packaged foods are stable, slow growing stocks that aren’t subject to the wide instabilities
of the market. General Mills is the relatively low betas (calculated by running a lapse
comparison) of industry to the market as a whole. Pricing decisions are used as a means of
seizing value. The brand will provide General Mills the ability of attaining additional profit
margins in addition of increasing market share from the high-end, health orientated segment.
General Mills’ sales are a function of their ability to anticipate consumer needs. The more
products that are offered that suit consumer needs, the more sales increase with the new products.
Theyare raisingprices on refrigerated baked goods, hot snacks and frozen vegetables on January
3, 2010 in response to higher input costs for products.
Boxed, ready-to-eat cereals range in price from $2.00 to $6.00 per box. Honey Nut
Cheerios falls just above the middle ground, averaging $3.68 for a 17-ounce package.
Distribution
General Mills uses an intensive distribution strategy for marketing Honey Nut Cheerios;
they are sold in nearly every location in which cereal is sold. General Mills’ primary distribution
channel is producer to wholesaler to retailer to consumer. In order to maximize sales, Honey Nut
Cheerios can be purchased through many channels, mainly retailers or on the Internet.
Consumers of Honey Nut Cheerios are not willing to travel any particular distance to buy them,
so it is necessary for General Mills to move the product through as many channels as possible to
get it to the largest number of customers. Most Cheerios are purchased in retail locations, mainly
grocery stores; this is the most convenient place for consumers to buy them because they are

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readily available and don’t require a special trip to purchase them. Grocery stores are located
nearly everywhere that there is a large population concentration, and their atmosphere allows
customers to select from many products quickly; this is a perfect atmosphere for breakfast cereal
to be sold in. Honey Nut Cheerios are distributed year-round; consumers are able to purchase
them at any time; many grocery stores are open 24 hours, so customers are even able to purchase
Honey Nut Cheerios any time of day.
Promotion
Honey nut cheerios are currently advertised through various marketing avenues. While
media and technology has advanced, the honey nut cheerios brand has kept up with the times.
The company has focused on internet promotional strategies via cheerios.com. On the website
information is available about the history of Honey nut cheerios and all other cheerios related
products. Coupons and special promotions are available online for print as well. The company
provides a platform on the web page describing how the brand affects the environment, supports
healthy lifestyle, and lists ingredients for people with allergies.
Honey nut cheerios has revamped the brand through social media promotions. Using
platforms such as Twitter, and Facebook the company is appealing to young and hip audiences.
On the cheerios twitter page there is a video posted with the latest advertisement depicting a
hip-hop music video. The song is recorded by hip-hop artist Nelly. The video is entitled “Must be
the honey.” Honey nut cheerios are also advertised in local sales papers, magazines, and
television commercials. As of 2011 General Mills had spent more than anyother company on the
promotion of cereal. General Mills has also spent the most amounts of money marketing Honey
nut cheerios. These include totals spent on all media marketing platforms. Information is not
provided on the specific dollar amount spent for the promotion of honey nut cheerios. However,
General Mills has spent $1.2 billion for its entire cereal line up.

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Honey nut cheerios are sold everywhere cereal is sold. The most traditional place to find
the product is in a local supermarket. However, it’s also common to see the product fully stocked
at major retailers such as Wal-Mart and Target.
The typical person finds out about General Mills through shopping at grocery stores.
Some product advertising that General Mills does is the pictures on the boxes of cereal. The
overall message of the advertising campaign is to be healthy and happy. The trucks that carry
their products place to place are a source of promotion for them. One way that General Mills
reach its target in media is by their Facebook, twitter and other social networks. Some sales
promotions that they use are going through nonprofit organizations and using their department
members by addressing the promotional and branding problems of those businesses. General
Mills sales promotion is done many ways but one that I know and experienced as a kid is by them
building the company around learning services. Another way they are promoting themselves is
by going through other companies such as Yoplait, green giant, Pillsbury and many more.
Recommendations for General Mills
Recommendations for General Mills (GIS) are: Make using Facebook, twitter, Skype,
and other social media a staple of General Mills to increase international brand awareness.
Develop a rival to Kellogg’s Special K challenge. Increase spending on international marketing.
Keep outspending the competition in marketing; the trend that we have seen in the cereal market
is that whatever company spends more on marketing usually goes on to control the bigger share
of the market.
Develop a pricing strategy that goes toe to toe with local grocery store house brands. Use
aggressive tactics to target the consumers drifting towards the private label sector of the cereal

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market. Invest more in the Global Marketplace.
Develop a strategy to lower company expenses or offset them. Devote resources and
manpower to increase exposure that will lead to higher sales revenues in newer emerging
markets. Find ways to offset commodity costs to increase company profit margin. Develop a
pricing strategy that is not too low and not too high, in order to appeal to all communities and
markets, and all loyal consumers of General Mills (GIS) cereals and products worldwide.
Having a clear plan involving the 4 P’s for the foreseeable future is crucial to success of our
company General Mills (GIS).