High Price of Cereal Getting You Down? General Mills Thinks So

1. General Mills would like to increase its market share. The management thinks that the way to achieve this growth is by introducing new brands. Define the management decision problem. 2. Define an appropriate marketing research problem corresponding to the management decision problem you have identified. 3. Based on your answer to question 2, select any two of the specific components you generated, and for each one of them derive two research questions (4 in total) and then two hypotheses for every research question (8 in total)?

1. Management Decision Problem: The management decision problem for General Mills is how to increase market share through the introduction of new brands. They need to determine the most effective strategy to attract more customers and gain a larger portion of the cereal market. 2. Marketing Research Problem: The marketing research problem corresponding to the management decision problem is to understand consumer preferences and behavior in order to develop and launch successful new brands. This involves investigating various aspects, such as target market segments, product features, pricing, and promotion, to optimize the chances of success for the new brands. Two specific components and their research questions: a. Target Market Segments: Research Question 1: What are the specific demographic and psychographic characteristics of potential target consumers for the new brands? Hypothesis 1: The new brands will resonate most with health-conscious millennials who prioritize nutrition and convenience in their cereal choices. Research Question 2: What are the key motivations and preferences of potential target consumers for the new brands? Hypothesis 2: Consumers are more likely to choose the new brands if they offer unique flavors, high nutritional value, and packaging that appeals to their desired lifestyle. b. Pricing and Promotion: Research Question 3: How sensitive are consumers to price changes in the cereal market? Hypothesis 3: Lowering prices by a certain percentage will result in a significant increase in consumer demand for the new brands. Research Question 4: Which promotional channels and messages will be most effective in creating awareness and generating interest for the new brands? Hypothesis 4: Engaging social media influencers and emphasizing the taste and health benefits of the new brands in advertising campaigns will lead to higher consumer engagement and brand adoption. By conducting research to answer these questions and test the associated hypotheses, General Mills can gather valuable insights to guide their decision-making and increase their market share effectively.

Introduction

General Mills, a major player in the packaged consumer food products industry, has been facing challenges due to the high prices of cereals and the increasing popularity of store brands. In response, the company has embarked on a strategy to lower prices, introduce new brands, and focus on niche products to increase market share. This article will delve into the management decision problem identified by General Mills, the corresponding marketing research problem, and specific components, research questions, and hypotheses related to the introduction of new brands. Management Decision Problem The management decision problem for General Mills revolves around finding ways to increase market share through the introduction of new brands. With store brands gaining traction and consumers becoming more price-sensitive, the company needs to devise a strategy to attract and retain customers in a competitive market. Marketing Research Problem To address the management decision problem, the marketing research problem focuses on understanding consumer preferences and behavior to develop and launch successful new brands. By conducting in-depth research on target market segments, pricing, promotion, and product features, General Mills aims to optimize the success of its new brand introductions. Target Market Segments Research Question 1: What are the specific demographic and psychographic characteristics of potential target consumers for the new brands? Hypothesis 1: The new brands will resonate most with health-conscious millennials who prioritize nutrition and convenience in their cereal choices. Research Question 2: What are the key motivations and preferences of potential target consumers for the new brands? Hypothesis 2: Consumers are more likely to choose the new brands if they offer unique flavors, high nutritional value, and packaging that appeals to their desired lifestyle. Pricing and Promotion Research Question 3: How sensitive are consumers to price changes in the cereal market? Hypothesis 3: Lowering prices by a certain percentage will result in a significant increase in consumer demand for the new brands. Research Question 4: Which promotional channels and messages will be most effective in creating awareness and generating interest for the new brands? Hypothesis 4: Engaging social media influencers and emphasizing the taste and health benefits of the new brands in advertising campaigns will lead to higher consumer engagement and brand adoption. By exploring these specific components, research questions, and hypotheses, General Mills can gain valuable insights to drive the success of its new brand introductions and enhance its market share in the cereal industry.
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