GENERAL MILLS CASE COMPETITIONAPPLE CINNAMON CHEERIOS

• ACC has held a constant market share for over a decade

• ACC has ranked highly among adults, however the children category is the largest and fastest growing segment

• Health trends discourage parents from purchasing cereals perceived to be high in sugar

Apple Cinnamon Cheerios is a cereal that is well loved by children and adults

How can Apple Cinnamon Cheerios (ACC) capture a larger segment of the children’s sweet cereal category?

Brand Strategy

Implementation

Expected Results

Consumer perceptions

Portfolio Fit

Agenda

• Jessica loves starting off each day with a bowl of cereal

• Jessica also has a bit of a sweet tooth

• Unfortunately for Jessica, her Mom decides what goes in the grocery cart

Meet our friend Jessica

How can ACC ease Mom’s health concerns, while keeping Jessica happy each morning?

BRAND IMAGE BRAND VALUE BRAND VISIBILITY

Positioning ACC as a fun, tasty cereal that is also healthyfor kids!

We recommend ACC adopt a three-pronged brand strategy

ACC’s brand image should incorporate elements that connect with children aged 6-11

Why mascots?

• Children react more to images than words

• Align brand image with children’s values

• Create a positive relationship between the child and the brand that can be carried into adulthood

• Capture share of life for a segment where share of wallet is not possible

Did you know that apples help

protect and strengthen your bones? Why Health?

• Increasing demand for healthy products that kids would actually like

• There are no competitors for the healthy & fun kids segment

• ACC is already healthy, same calories as Special K!

• ACC is made with apple puree and real cinnamon but it is not communicated

ACC’s brand value should resonate strongly with parental values

Visibility

Why Visibility?

• Opportunity to stand out in a crowded cereal aisle

• Focus on kids’ cereal area

• Expand on healthy benefits

• Innovative displays with low costs

Did you know that

apples help protect

and strengthen

your bones?

Implementation

Apple Cinnamon

Cheerios

Outline health benefits

Introduce details on “Mascot Wanted” contest

Launch kids contest website

Advertise on kids websites

Launch new cereal box

Introduce new mascot

Phase 1: Design your own mascot

Phase 2: Show time!

• Modify theme (eg: Winter Olympics 2010)

• Creative in-store advertising

• Cross Merchandising

• Continue promoting health aspect while maintaining fun position

Expected Results

2009 2010 2011

+ 50%

+ 40%

14.3

6.8

10.2

Projected Sales for ACC (Millions of CDN)

Perceptual Map

Fun

Healthy

Opportunity to position ACC as a fun and healthy product!

Sweet & HealthySweet

Helps you stay regular

Cheerios Portfolio will include a new category

Traditional

Thank you!