Taking a Look at the Cheerios Product

General Mills, Inc. has sold Cheerios since 1941, so the company has a legacy for providing Cheerios to the consumers. The product contains healthy ingredients in which the consumers benefit from eating a ready-to-eat cereal. The inclusion of ingredients makes the value important and the quality of cereal have an increase in value. There is has been a higher demand of healthy ingredients recently in which Cheerios continues to succeed in this factor and continues to help a consumers’ health. In addition, Cheerios is part of a General Mills movement in which their mission is to “nourish everyone by making lives healthier, easier and richer (An "O" shaped by history, 2013).” This means that General Mills is improving in providing healthier products while competing against generic brands.

Five-year Financial Overview:

At end of yr. 5/26/2013 5/27/2012 5/29/2011 5/30/2010 5/31/2009

Stock Price 48.22 36.52 36.32 31.93 22.28

Revenue 17,774,100,000 16,657,900,000 14,880,200,000 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%

Within the last five years, General Mill’s net sales have increased at a steady pace with the exception between 2009 and 2010 in which the United States is still recovering from a recession.

At the end of the year of 2012, which saw an increase in consumer buying behavior, General Mill’s sales increased 12% from the previous year of 2011. This was caused from a strong performance overseas in which increased by 46% year after year. US retail increased only by 3% which is a small growth. In addition, the US Retail segment contributes more than 60% of General Mills...

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...Cheerios will continue to include all of the benefits in the Product Review section while introducing new benefits in the box. Cheerios is going to keep the bright yellow box because it attracts attention, as well keeping information that is shown in front of the box, such as it helps “lower cholesterol,” and “contains less sugar. The new benefits that will be added are a different short stories on the back of the box. The short stories are going to be about how Cheerios shape a person’s life. For example, a story can be about how a mom gives her children Cheerios because she wants them to receive a daily serving of vitamins and minerals because she wants her children to learn better in school.

Pricing Strategy:

The prices for cereal depend on the brand and weight. Cheerios has many on the market for many years and their prices depends on the weight, ounces.