SWOT Cheerios

Internal Factors

Strengths

• Corporate Culture
• Trusted, family friendly
• Big focus on philanthropy, donates regularly to non-profit organizations
• Encourages diversity; ads frequently show multi-racial families
• Promotes healthy & nutritious lifestyle
• Supports education for young children
• Little focus on innovation
• Old-fashioned, no “newness” factor Based mostly on American values
• Corporate Marketing
• Culture Frequently engages with customers via social media
• Breakfast consumer – for the working parent or child at school
• For the health conscious
• On-the-go lifestyles

Weaknesses

• Market too specific to a particular customer (young moms)
• Relies on us-market
• Not the only cereal food presence in social media (competition)

Marketing Mix

• By cornered Priced in the low range as far as breakfast foods
• Can be found in almost every supermarket across the country
• TV commercials on family friendly networks, depicting lots of family interaction
• Variations of brand to suit other preferences in flavors (Honey Nut, frosted)
• Priced mid-range in the cereal category, high chance of competition against similar rower cost products
• Mostly consumed with milk and spoon, not portable
• Small focus on Cheerios as a standalone snack
• Resources (supplies etc)
• Large budget for advertising – General Mills spent $49. 9 million in 2011
• Reliable wheat supply in North America Budget spent mostly on TV, which is a declining method of advertising
• Canada’s television industry saw profits drop 85% last year

External Factors

Opportunities

Demographic

Employment rate for women with children under 6 was 67. 8% in 2012, more than bubble the rate in 1976 Seniors are the fastest growing age group in Canada.

They are retired and have more time to prepare breakfast – no need for the convenience cereal provides In 2011, an estimated 5. 0 million Canadians were 65 years of age or older, a number that is expected to double in the next 25 years Social Preference of non-processed, no trans-fat, gluten free foods trendy and on the rise Growing health consciousness attitude Consumers are paying closer attention to the labels of the products they purchase ND are making sure they purchase the healthiest products available. Not everyone wants the same breakfast every morning People more susceptible to change and experimenting, will try new things instead of staying loyal too single brand Shoppers have started to choose private labels over brand names.

Almost 2/3 of people “do not agree that leading brands provide higher- quality cereals” Competitive Cereals were the most popular in-home breakfast food in 2011 – 53% of individuals ate at least once an average week. Kellogg: the biggest rival, currently leading market share (29. %) Cereal market is huge, many varieties available providing same health benefits (Special K)

• Top 3 fastest growing breakfast foods in Canada: toast, waffles, egg/omelet’s, cereal is ranked 5th Technological Two in three Canadians use social media – wide outreach for promotion opportunities via Backbone, Twitter, etc Canadians spent $22. 3 billion online shopping in 2012, figure expecting to double in 2015 – however there is a lack of a online grocery shopping presence, limiting the opportunity to take advantage of this trend Economic