Economic: 1. Unemployment rate is currently at 5.9% 2. Salary increases are projected to go up 2.4% this year 3. The minimum wage increased from $11.60 per hour to $14 I. The unemployment rate is a negative factor for General Mills because it means fewer people will have the purchasing power. Since General Mills is a name brand and tends to be higher in price so consumers may instead choose a cheaper alternative. II. However, salary increases are a positive factor, meaning more people will have disposable income and be able to purchase our brand of cereal. I believe that we should be making more cost-effective options for our consumers. We could make more financially friendly cereals for consumers who do not want to spend much money on …show more content…
The government is making improvements on food labels to make comparing to the competition and nutrition easier I. The government enforcing more rules to prevent childhood obesity by limiting sugar in products is a positive factor for our company because we are reformulating our cereals with their regulations. This could help our sales if we formulate with healthy alternatives because many mothers especially above the age of 40 care about health factors. This will help our consumers make more health-conscious decisions. II. The government making regulations about advertising to people 25 and younger is a negative factor for this industry. This means that our advertisements have to be geared towards parents which is not as easy to persuade with just great tasting cereal, they will need more information in order to invest. I think that we should be reformulating our cereals to make healthy options for our consumers and their children. Once we have reformulated our cereals, our advertisements should be geared towards parents since they are usually the ones who buy the groceries. Our advertisements should be focused on having our consumers know our products are healthier, therefore, they will be more inclined to …show more content…
This will help immigrants and families with fast-paced lifestyles make good choices for their needs. Demographic: 1. Baby Boomers are more likely to eat at home 2. People aged 44-55 are more likely to buy products that say low fat/diet I. The people born in the baby boomer era are more likely to be more health conscious. This can be a negative factor for the industry because they will not be buying cereals that are high in sugar and low in fibre. They will be looking for cereals that have more nutrition and fibre. II. Seniors who are 65 plus have disposable income, this is a positive factor for the industry. First, they are more likely to buy products without thinking about too many factors beforehand. Next, they can also purchase food for grandchildren which means they may purchase items that parents normally would not or easier items that can be consumed quickly. I would make our cereal healthier for this age group and easily accessible as well. This will increase our sales in this generation because early Baby Boomers still have very busy lifestyles and care about their health, so this will make eating easier for their