MARKETING CHEERIOS TO THE
INSTA-CONNECTED SELFIES
A plan in 3 phases to garner life-long loyalty from Gen Y
(**Tribe name TBC and highlighted in Yellow throughout)
**We have 4 pages of extras (cover page, TOC,
References) – content currently at 19 pages –
Submitted by Virtual Team A
Table of Contents
Introduction .................................................................................................................................................. 2
Section 1. An Analysis of the Market Driven Capabilities of General Mills.................................................. 2
1.1 Building Capacity for Market Intelligence ........................................................................................... 3
1.2 Structural Alignment ........................................................................................................................... 4
1.3 Internal Marketing .............................................................................................................................. 5
Section 2. The Customer Tribe – “Insta-Connected Selfies” ........................................................................ 6
Tribal Rituals ............................................................................................................................................ 7
Section 3. The Customer Value Equation .................................................................................................... 8
3.1 Psychology-Based Characteristics of Insta-Connected Selfies ............................................................ 8
3.2 Culture-Based Characteristics of Insta-Connected Selfies ................................................................ 10
3.3 Translating Tribal Characteristics to Customer Values ..................................................................... 12
Section 4. Marketing Strategies .................................................................................................................. 14
Premises underlying our selected strategies .......................................................................................... 14
Our Selected Strategies Include .............................................................................................................. 14
Phase 1: Market Penetration: Drawing the Tribe’s Attention Back to Cheerios .................................... 15
Phase 2: Market Development and Product Development: Re-branding Cheerios to Gain the Tribe’s
Respect and Development of New Items Targeted to Tribe ................................................................... 16
Phase 3: Product Diversification – Securing Cheerios’ place as a go-to brand for breakfast and snack
foods........................................................................................................................................................ 18
TO COME: .................................................................................................................................................... 20
Section 5 – Tribal Integration Tactics .......................................................................................................... 20
Section 6 – Summary. ................................................................................................................................. 20
References .................................................................................................................................................. 21
Introduction
This section be written last, as a brief overview of the whole assignment. – not more than a 1/3 page.
Insert background text drawn from assignment description from prof (the challenge GMI is facing and
why they want to market to Gen Y) – and briefly, that in this assignment, we are providing a strategy
that they can employ that responds to what Gen Y seeks.
Section 1. An Analysis of the Market Driven Capabilities of General Mills
General Mills is an industry leader in the manufacture and marketing of branded
consumer foods. Several of its brands occupy the number one or number two market positions,
including Cheerios cereal, Green Giant frozen vegetables and Betty Crocker dessert mixes
(Brands, n.d.). Like many established corporations, it has traditionally focused on creating
products and attracting customers to them through catchy slogans, cute characters, celebrity
endorsements and other branding techniques consistent with prevailing marketing trends. A
review of publicly available information reveals that General Mills (GMI) is in the midst of a
paradigm shift, focusing more closely on developing and marketing purpose-driven products,
based on customer needs, identified through the collection and analysis of market intelligence
(General Mills seeks 'consumer intimacy', 2014). Ami Anderson, Director of Marketing
Excellence at GMI, recently described this transformation in this way; “One of the things that’s
changed in the past couple of years is how we build our brand architectures. At the top of the
house used to be our brand’s ‘Promise’ – which was more like a higher order benefit. Now the
top of the house is the brand’s ‘Purpose’; what is the brand’s purpose? What problem are you
solving for our consumers? It is focused on the consumer vs. the brand” (General Mills
Marketing Strategy: a closer focus on solving customer problems, 2013).
In this analysis, we look at three essential dimensions of market-driven organizations;
capacity for market intelligence, structural alignment, and internal marketing. We will
demonstrate that GMI is making major changes in each of these areas to remain an industry
leader in a changing society. Though it remains keenly interested in marketing its existing
legacy brands, GMI is shifting its focus from selling products to solving consumer problems.
1.1 Building Capacity for Market Intelligence
A market-driven organization must be able to collect, analyze, understand, and take
action on customer-centric information. This allows it to determine what customers value and to
build enduring relationships with those customers. Historically at GMI, the collection of market
intelligence relied on narrowly focused telephone and mail surveys, rather than information
collected in the moment or organically (Basset, 2013). The Betty Crocker brand was one early
exception, which encouraged customers to write letters with ideas and questions, which Betty
Crocker would answer by mail. These provided insight into the customer and guided product
innovation, establishing Betty Crocker as a trusted advisor to homemakers over 70 years ago
(General Mills Marketing Strategy: a closer focus on solving customer problems, 2013).
Recognizing the need to achieve a closer relationship with customers and that the model
of selling wholesale to retailers limits contact with customers, GMI has begun to employ
innovative methods to gather market intelligence. For example, the long-popular games on
cereal boxes have been upgraded to interactive mobile games, and a new Windows Phone app
allows tech-savvy mothers to download the Betty Crocker recipe and meal planning app (Kats,
2011). These programs allow GMI to collect market intelligence, to add value beyond the food
product, and to leverage existing brand power to drive sales revenue.
The company also has a multi-platform social media campaign, “Hello Cereal Lovers,”
which has more than 330,000 members on Facebook and is also active on Twitter, Tumblr,
Instagram etc. The network allows GMI to test-drive concepts and to collect ideas and feedback
from cereal consumers. The campaign promotes GMI cereals and also features competing
brands, to gain additional insight on customer values (Gioglio, 2014), (Newman, 2013).
A final example of GMI’s evolving real-time market intelligence capacity is the new
barcode on Progresso pasta sauce. When scanned with a mobile device, it provides up to 30 meal
options and associated recipes. This barcode helps them move beyond selling a product; it helps
their customer solve the problem of what to make for dinner and it feeds consumer information
back to GMI based on which recipes the customer downloads (Tode, 2012).
All of these examples demonstrate that GMI has transformed and modernized its capacity
for real-time market intelligence gathering, in a responsive, interactive way, linked with product
development. In this element, GMI is very strong.
1.2 Structural Alignment
Market intelligence cannot be translated to effective strategy without appropriate
alignment of human resources and operations, in order to analyze this information and respond
with agility. GMI has undertaken significant structural realignment to support its new, more
market-driven approach. According to Anderson, these changes are recent and radical; “…we’ve
dramatically changed the organization of our brand builders and marketers over the past two
years. From a staffing perspective, we’ve added more digital managers onto the teams, to help us
in real time. In the beginning, as digital was evolving, it was something the agency helped with.
But now we feel that we need to have that expertise right here, right now – and acting in real
time.” (General Mills Marketing Strategy: a closer focus on solving customer problems, 2013).
Other evidence of GMI’s structural alignment can be found on the careers section of its web
site, which states “The market research team at General Mills gives our customers a voice in the
organization. Through research and learning, you’ll help our customers guide our products and
help us meet their needs… Acting as the “voice of the consumer” for a business unit, you’ll
address key business issues that span from advertising to new product development” (General
Mills Careers, n.d.). This description of market intelligence experts placed in business units
across the company highlights strong structural alignment. It also demonstrates a commitment to
having market intelligence and a consumer-centric focus permeate the organization. This is the
hallmark of the third element of market driven organizations: internal marketing.
One weakness in the structural alignment at GMI will be discussed in the following section,
where an opportunity was missed when GMI had significant media coverage over the
announcement that Cheerios is now GMO-free. GMI’s executive team may be seen by the
public as more focused on shareholder value than on the consumer relationship, due to
statements made which don’t match Cheerios branding.
1.3 Internal Marketing
General Mills’ placement of market intelligence experts in business units across the company
shows a significant commitment to integrating consumer-centricity across GMI’s corporate
culture. Further examples can be observed in recruitment videos on their website. These tell
prospective new hires that GMI is not simply recruiting people to sell its brands. GMI
emphasizes its mission of “Nourishing Lives” (The Mission, Values, and People of General
Mills, 2012). Cheerful staff in these videos are “doing our best to remain a trusted advisor, proud
of our brands…” and say that “it feels good to work on brands that people feel good about
feeding to their families” (The Brands, Innovation, and Performance at General Mills, 2012).
GMI could strengthen its image as a trusted advisor in its non-marketing activities, such as in
its response to regulators when Cheerios health claims were criticized in 2009, or more recently,
in the publicity surrounding the switch to non-GMO Cheerios. In the former, GMI appears to
have missed an opportunity to emerge as a trusted advisor, with little explanation to the public
about the health claims issue, having apparently focused all efforts on a technical rebuttal sent
directly to the FDA (Murtano, 2009). In the latter, an official General Mills blog posting by
GMI’s VP of Global Communications appears defensive about claims that they changed their
formula in response to consumer advocacy, carefully refuting evidence that non-GMO foods are
particularly healthful (Forsythe, 2014). It leaves the impression that GMI only made the
formulation change on a gamble that a new market segment might buy them, and because it was
easy, allowing them to make more money with little effort.
In closing, it bears noting that, while some of the organizational changes and innovations we
have described are relatively recent, General Mills appears to be on track to retain its status as an
industry leader. The corporation has transformed its capacity to gather market intelligence, it has
aligned its human resources and processes to ensure that this intelligence is utilized optimally,
and it has worked to ensure that this new market-driven focus permeates the organization’s
business units and its corporate culture. These efforts demonstrate a solid execution of the
necessary steps becoming a truly market-driven firm, and a commitment to remaining
competitive in a changing society. In order to ensure the long-term impacts of these leadingedge efforts, General Mills should consider ensuring that the executive team also adopts the
consumer-centric focus that GMI will need to succeed in today’s marketplace, and that public
statements by executives are screened from a communications and marketing perspective to
ensure that messages consistent with GMI’s desired image are provided by every public
statement.
Section 2. The Customer Tribe – “Insta-Connected Selfies”
Our target tribe consists of a subgroup of Generation Y. According to McDevitt (2012), people
in Generation Y are currently 21-35 and fall into three key life stages, which roughly correspond
with the period when they are single and achieving independence (“All About Me”), a second
period when they are settling into serious co-habitation relationships, and beginning to climb
their career ladders (“All About Us”), and a third period, when they have mortgage payments
and children and are more focused on their families and careers (“All About Them”). Our team
has chosen to focus on the first group, who are finishing university, stepping out on their own,
and not yet in serious relationships and are not yet parents. Based on data referenced in section 3,
we have developed the following narrative description of our tribe.
Members of this tribe have a modern, flexible outlook, and are accepting of differences, such as
racial or religious diversity, or diversity of sexual orientation. They have a vision of the world
they would like to live in and they want to experience it and to be seen experiencing it. They
value environmental protection. They are plugged into technology and want to be connected to
their tribe, and to be seen by their tribe, living the life they all aspire to. Without any significant
responsibilities, they are willing to pay high prices for products that will give them the image
they seek, though they are thrifty when it comes to basic household staples. They have lots of
friends on social media, and share “selfies” of themselves (and their friends) regularly, to show
their tribe that they are living the life, and that they are unique in ways the tribe values. They
long to be seen as belonging.
With their indulging parents, high level of educational attainment, and ready access to
information, this group feels that they are well-informed and destined to fulfill their dreams.
They want to be treated with respect and they want their input to influence their workplaces and
society at large. They believe they will be successful in their careers, and therefore they carry
debt without a care. They question authority, and make use of social media to boycott or shame
businesses that may not be adhering to the ethical or other standards they aspire to. This tribe
tends to delay marriage and having children, preferring to stay independent.
Tribal Rituals
Typical activities that members of this tribe participate in include:

Hanging out in free trade coffee shops wearing expensive clothing, drinking $5 cups of
coffee, while updating facebook status with selfie of friends doing the same.

After completing university and acquiring student debt, travelling the world, sending
selfies from desirable destinations.

Perpetually sharing experiences via social media (such as meals they have just been
served), or seeking approval/input on their life decisions from their many facebook
friends.
Section 3. The Customer Value Equation
In order to clearly define the value equation for the “Insta-Connected Selfies” Tribe, we present the
following profile of Psychology-Based and Culture-Based Characteristics. These characteristics are then
translated into values, which inform the marketing strategies we recommend in section 4.
3.1 Psychology-Based Characteristics of Insta-Connected Selfies
Benefits Sought
This group seeks instant gratification (Main, 2013). They want products that provide them with
status and that are aligned with the image they would like to project (environmentally friendly,
ethical, intelligent, high-tech). In particular, they seek to belong with their tribe, and want to buy
products that will help them to achieve status in the eyes of their peers (Lazarevic, 2012).
Consumer Lifecycle / Lifestyle
This group lives a fast-paced lifestyle, and they are accustomed to immediate interaction with
family, friends, colleagues, and even with businesses (KD10, KD 11, (armour), KED 4, KED 2).
They are more likely to eat in restaurants than other groups (Carman, 2013), and tend to snack
more than consuming three regular meals per day (Halperin, 2014). They value health and
physical activity (KD9, KED 4).
Consumer Product Usage - Situation
This is the grab-and-go generation, known as fast-paced multi-taskers with short attention spans,
but having a strong commitment to their values (KD11 cts 4)). When it comes to breakfast
cereal, they may be unlikely to sit down for a bowl of cereal if they can get something to carry
with them wherever they are going instead. They are snackers (Halperin, 2014).
Consumer Belief
This tribe believes in inclusivity and equality, and values environmental protection (KD3 (foster)
KED4). Having had indulging parents, (Williams, 2013). They believe in themselves, and their
ability to rise to the top of their career paths and they tend to underestimate the effects aging will
have on them (Henderson, 2012). For this group, “Material belongings are seen as an expression
of who a person is and how important he/she is” (Lazarevic, 2012)
Consumer Price Sensitivity
At this stage of life, when they are leaving their parents’ home and seeking independence, and
have not yet amassed considerable wealth, this tribe is frugal with their available funds for
regular necessities, including groceries (KD1, cts 1, KD 10). On the other hand, they will spend
extravagantly on products that will help them to maintain the public image they seek (cts 1).
They use credit cards and are vulnerable to over-spending. (cts3)
Media Use
This group is perpetually seeking the newest, fastest technology for communication and
information. They would like to have opportunities to comment on products they have
purchased or to provide advice to companies producing the products (Griffiths, 2012). They can
be influenced by celebrity endorsement of products, however, when a celebrity falls out of
favour, or if the endorser is changed to someone that does not fit the evolving image of this tribe,
the brand can lose the loyalty of this group (Lazarevic, 2012). Consistent with the collectivist
mentality of this group, 48% of Millenials say word-of-mouth influences their product purchases
more than TV ads (Schawbel, 2013).
Consumer Search Behaviour
This tribe would like to be seen as informed consumers, and will check the integrity of the
company they are purchasing from on dimensions they value (KD11). They have a preference
for purchasing environments which deliver an interactive individual “experience” (KD11) “Pushmarketing” does not work with this group (Garst, 2013).
Consumer Loyalty
While this tribe is highly influenced by trends, and considered to be a fickle customer with
limited loyalty, they may develop brand loyalty for products and services that align with the
image they seek, or the causes they support (KD10). Loyalty programs appear to work with this
group (CTs5). However, as stated by Wood (2000), “there (is) little room for missteps; after all,
this wired generation will think nothing of alerting thousands of other consumers to a bad
product experience through (social media).”
3.2 Culture-Based Characteristics of Insta-Connected Selfies
Power Distance Values
More than past generations, this tribe values a low power distance. They want to be treated as
equals. They question authority, seeking to answer questions for themselves (Griffiths, 2012).
They are accepting and inclusive of diversity, and expect to be accepted and respected (KD1).
Individualism values
Our team sees the “Insta-Connected Selfies” tribe as somewhat conflicted when it comes to
individualism. On the one hand, they desire a unique image, and yet it must be an image that
will give them status in the eyes of their peers, who they see as their collectivist community. We
consider this tribe to be “faux individualists,” or “collectivist individualists.” There is evidence
of a resurgence among this tribe in valuing family ties (KD2, KED 2), which reflects their
collectivist approach to their peers as well. They prefer interactive experiences in the
marketplace (KD11), and want to have their own say, and make their own mark, but only in
ways their tribes will approve of. In the words of Lazirivic (2012), “it’s all about becoming
famous for being yourself.”
Gender Values
While limited literature was identified about this value, our team reached a consensus that for
this tribe, gender has less value than in other generations. Gender roles seem to have dissolved,
and gender considerations appear to be almost non-existent for this group. To this tribe, strong
gender nuances appear to be as distasteful as racism or homophobia. There does seem to be
pressure on women with respect to child-bearing and managing a successful career, however,
Gen Y women are likely to underestimate the degree to which fertility declines with age
(Henderson, 2012).
Uncertainty Avoidance Values
This generation appears to have a high tolerance for personal debt, and to place limited value on
long-term job security (Schawbel, 2013). They will travel the world after university, despite
high levels of student debt. These factors all suggest a high tolerance for uncertainty.
Long-term Orientation Values
Linked with this tribe’s high tolerance for uncertainty, we were unable to find evidence of a
long-term orientation. This tribe is more characterized by immediate gratification than long-term
thinking. At this time, there are more unmarried women in their 30s than any time in the last 60
years (Henderson, 2012). In order to appeal to members of this tribe, any brand will need to find
a way to appeal to this group in the moment they are experiencing (not what they valued before
or what they may value later).
3.3 Translating Tribal Characteristics to Customer Values
In this section, we translate the characteristics describing this tribe into customer values that
support the creation of marketing strategies.
Figure 1 provides a high level overview of the value this tribe places on the elements of the
customer value equation. These are explained in further detail below.
Short Term Customer Satisfaction ↑↑↑
This tribe places significant value on instant gratification and instant information. They want
what they want when they want it, and they have the tools to find it. They also would like to
easily find information that will help them confirm whether the product is a good match for the
image they aspire to.
Relevance of Tangible Attributes of Brand/Service to Consumer ↑
With their fast-paced lifestyle, the tangible attributes that are important to this tribe include
convenience, and easy access to a product. With the value that they place on the environment,
they would also prefer products that do not have excessive packaging. They are healthconscious, and would be interested to know about health aspects of products they are buying.
Relevance of Intangible Aspects of the Brand/Service to the Consumer ↑↑↑
Any desirable tangible attributes a product might have would be completely overlooked if the
brand did not also have the intangible attributes that this tribe seeks. If the brand does not match
the personal image that members of this tribe aspire to, it will not be purchased. Further, the
brand must appeal to this tribe’s sense of ethics, must make them feel that it is “the right thing”
to buy, or the product will be overlooked, regardless of the packaging, the convenience, or the
health attributes.
Customer’s Feeling of Being Treated with Respect ↑↑↑
Also very important to this tribe, is to be treated with respect. A member of this tribe would like
to be treated as an informed, intelligent customer who is making the right choice. They are
turned off by marketing that makes them feel manipulated or talked down to (McDevitt, 2013).
Customer’s Feeling of Supporting an Ethically, Socially Responsible Company ↑↑
While this generation is more focused than previous generations on environmental and other
social issues, our team felt that the intangible attributes of the product, and its overarching fit
with the image that our tribe aspires to would outweigh this value in a purchasing decision. For
example, they would likely choose the most fashionable sunglasses that matched their personal
style, even if they were sold in excessive packaging.
Tangible Costs: Monetary, Time, and Other Transaction Costs ↓
Because this group values the intangible attributes to such a great extent, the tangible costs do
not seem to be overly important to this group. They will pay an exorbitant price for an item that
will help them improve their sense of status, and will go to inconvenient lengths to find it. That
said, they also are known to be frugal when it comes to basic commodities. In the case of
Cheerios, which is a household staple, this group likely would not be willing to pay a premium.
Intangible Costs: Social, Psychological, Functional Risks ↑↑↑
This tribe places considerable value on intangible costs. They are not willing to risk losing their
reputation by having bought a product that has fallen out of favour with their tribe. They would
not likely pay even a very low bargain cost for a product that might bring them a negative social
consequence.
Section 4. Marketing Strategies
In this section, we provide a three-phased approach to marketing Cheerios to the Insta-Connected Selfies.
It is based on an understanding of this tribe, its attributes, and what it values, and provides suggestions to
General Mills, on steps they will need to take to implement this strategy.
Premises underlying our selected strategies
1. Matching the brand to the personal identity this tribe aspires to is extremely important.
2. We know that this tribe has moved away from consuming cereal for breakfast, preferring foods
that are easy to eat on the run.
3. We know that this tribe enjoys snacking, and may eat Cheerios as a snack.
4. We know that this tribe prefers not to pay a premium for basic staple household items, but will
spend exorbitantly on products that will help them gain status in the eyes of their peers.
5. This tribe attaches great importance to intangible attributes of a brand and is attracted to causedriven brands (environmental friendliness, corporate social responsibility).
6. While this tribe may or may not convert to being regular cereal eaters, they will become parents
in the next few years, and it is essential for Cheerios to remain a household name for them so they
will purchase Cheerios for their children as they grow up.
7. This tribe lives in a high-tech world, and wants to have input on product development or other
corporate matters.
Our Selected Strategies Include
1. Market Penetration: Drawing the Tribe’s Attention Back to Cheerios
2. Market Development and Product Development: Re-branding Cheerios to Gain the Tribe’s
Respect, and Developing New Targeted Products
3. Product Diversification: Securing Cheerios’ Status as a Go-to Brand for Breakfast and Snack
Foods
In this section, each of three phases is described, and any relevant product, promotion, placement and
pricing strategies are identified. Each phase description section concludes with suggestions to GMI to
ensure their success in implementing this three-phased strategy.
Phase 1: Market Penetration: Drawing the Tribe’s Attention Back to Cheerios
Objectives: IC Selfies grew up with Cheerios, but now seem to be moving away from breakfast
cereal. They are challenging authority, challenging societal norms, and seeking a new lifestyle.
The first important strategy we recommend, is to get Cheerios back on the IC Selfie Tribe’s
radar, and confirm that Cheerios does fit in their bold new lifestyle. GMI needs to confirm to
this generation that Cheerios is not just a kids’ food, and not just a breakfast cereal, but a healthy
food that can be consumed on-the-go, and that it’s an intelligent choice.
Product Strategies: In this market development phase, we focus on promoting the existing
Cheerios products. Packaging and branding may change, but this phase is focused on promoting
existing Cheerios products to this tribe in new ways.
Promotion Strategies: This phase focuses primarily on outbound marketing of functional benefits
and tangible attributes of Cheerios that GMI would like this tribe to think about, such as

Revitalizing the idea of cereal for breakfast: it IS quick and easy and healthful

Cheerios – not just a cereal: appeal to this generation’s enjoyment of snacking

Cheerios – a healthy choice: focus on fibre, whole grains, GMO-free, appealing to their
intelligent, informed consumer ethos.
Pricing Strategies: Evidence suggests that this tribe will not pay a premium for a basic grocery
item, therefore penetration pricing is essential. The key is to select a price-point comparable to
other products in the category, however, a higher price for this tribe may tolerate a small markup for environmentally friendly packaging, or other attributes they may feel match their values.
They would seek value: a product that matches their ethics at a good price.
Placement Strategies: In this phase, Cheerios must be available in places where generation
selfie shops for groceries for regular staple items. Cheerios are already available, intensively
distributed across supermarket chains, where this generation does shop (ref). The trick, in this
phase, is to draw this tribe’s attention and interest to the product through re-branding around
functional and tangible attributes that this tribe seeks.
Corporate Success Factors for General Mills: In this phase, General Mills should continually
gather market intelligence. Since brand and image are so important to this tribe, and they are so
very focused on technology and social networks, General Mills will need to be monitoring the
impressions this tribe has of their new messaging, while also exploring their ideas on product
innovations that would enhance the tribe’s loyalty to the Cheerios brand.
Phase 2: Market Development and Product Development: Re-branding Cheerios to Gain
the Tribe’s Respect and Development of New Items Targeted to Tribe
Objective: Now that we have caught the attention of IC Selfies with messaging that breakfast cereal as a
quick and easy option that suits their lifestyle, and that Cheerios is a great snack choice, we recommend
shifting the focus to branding Cheerios to match the image that IC Selfies aspires to, and targeting
distribution in additional locations this tribe frequents. In this phase, the focuse shifts to the intangible
attributes this generation so fervently seeks. GMI must create a sense that consuming Cheerios is
completely congruous with the lifestyle and sense of self that they enjoy during their favourite rituals,
such as drinking free-trade coffee, communing with friends on social networks, and exploring the ethics
of the companies they support.
Product Strategies: Again, in Phase 2, we remain focused on the existing Cheerios products,
though now market intelligence gathering will be intensified to support product development in
phase 3. New packaging that is more environmentally friendly, would be added at this stage.
Promotion Strategies: Given the importance of image to this tribe, branding and promotion are of
primary importance. In this phase, we recommend launching a major out-bound campaign that
speaks to the psychosocial identity and cultural meaning IC Selfies seek featuring:

Cheerios being consumed by attractive IC Selfies, travelling, doing extreme sports

Cheerios as an intelligent choice for the discriminating, informed consumer

Cheerios as an ethical choice (GMO free, new environmentally friendly packaging)

General Mills’ Corporate Social Responsibility record, and create interactive web-based
materials allowing this tribe to explore the details and outcomes of General Mills’ efforts.
In this phase, when new products are under development, in-bound marketing is also essential.
GMI will want to connect with this tribe to ensure that the new promotion strategies are wellreceived and modify the messaging if necessary. Losing the respect or loyalty of this group by
missing the mark with the out-bound campaign would be disastrous.
Pricing Strategies: Penetration pricing remains a priority in this phase, as this tribe is not likely to
pay a premium for a basic grocery commodity. Some mark-up may be tolerated for product
modifications that suit their values (convenience, environmentally friendly).
Placement Strategies: In this phase, Cheerios continues to be distributed intensively across retail
food outlets, and are also placed more intentionally in places IC Selfies frequent, such as
university cafeterias and coffee shops, and trendy hangouts near university campuses and in
urban centres, making them an easy, inexpensive choice for a quick snack.
Corporate Success Factors for General Mills: Now that General Mills will be promoting its CSR
record, and drawing the attention of this reputation-intensive tribe, it will be very important for
General Mills to address the weakness noted in the market-readiness analysis. GMI must ensure
that their internal marketing extends to their executive team. This tribe is likely to scrutinize and
pass judgment on the authenticity of General Mills’ CSR efforts, and all public statements should
match the intended branding. Intensive market intelligence gathering is critical at this stage, to
gauge the tribe’s acceptance of new branding, and to seek their input on products under
development. As outlined in the first section of the document, GMI does have the capacity to
gather market intelligence nimbly and to be responsive in real time. They also have the structural
alignment to translate new market intelligence across business units.
Phase 3: Product Diversification – Securing Cheerios’ place as a go-to brand for breakfast
and snack foods
Objective: In order to truly remain a go-to brand and household name for generations to come,
we recommend that the Cheerios brand launch targeted products that will appeal to IC Selfies
and suit their lifestyles, based on market intelligence gathering activities in the first two phases
and on an on-going basis. Whether it is new lines of products, such as Cheerios trail mixes or
breakfast bars, the goal is to become a staple, go-to breakfast and snack food brand, with product
lines that respond to emerging trends and are available ubiquitously at a reasonable price. As
highlighted by Lazarevic (2012), in order to gain loyalty from this group, it is essential to “show
congruency between the brand and the Gen Y consumer or who they want to be”
This phase will require GMI to put its strong market intelligence capacity and its excellent
structural alignment to work, and to solidify the identified gaps in internal marketing, as a
nimble, flexible corporate culture is needed to maintain a diverse product line targeting this
technologically savvy and ethically minded group.
Product Strategies: Cheerios will launch new targeted products, based on what they have learned
from the tribe. The product development units will remain closely attuned in real time to market
intelligence, in order to be responsive, with adaptations to products that match the tribe’s needs
and interests. General Mills will also need to exercise caution that they do not compete with
their existing specialty food lines, such as Cascadian Farms organic cereal or their cereal snack
mix (Chex). This will need to be considered carefully.
Promotion Strategies: At this stage, the out-bound marketing is still required, to continue to
reinforce how GMI would like Cheerios to be seen by this tribe (functional benefits, tangible
attributes, as well as psychosocial identity and cultural meaning). . They should ensure that
some messaging about Cheerios as a perfect food for children continues to reach this tribe, in
anticipation of their pending parenthood (if only to show a member of this tribe visiting a friend
who has children who are enjoying Cheerios). It is, however, the in-bound marketing that is of
greatest importance in this phase. Through social media, or web-interactive product labels, as
GMI has employed for other products, they can build a relationship and gain real time
information about customer values and preferences that will allow them to fine-tune their
offerings and remain a go-to brand and trusted advisor.
Pricing Strategies: Penetration pricing remains essential for general food items, since this tribe is
not likely to pay a premium for regular grocery items. Depending on the nature of the products
launched, and comparable offerings on the market, there may be an opportunity to charge a
premium price for specialty product lines with unique ingredients that might help them to
enhance their image. Any decisions to employ skimming pricing with this tribe should be guided
by market intelligence, given evidence that this tribe is thrifty with every-day grocery purchases.
Placement Strategies: Again, the targeted products should be available through intensive
distribution across grocery outlets, as well as in trendier locations around university campuses
and urban centres. Depending on market intelligence gathered in the first two phases, there may
be opportunities for some exclusive distribution. For example, if an organic or other specialty
line is developed, there may be opportunities to undertake premium pricing and to offer these
specialty lines through more exclusive distribution channels.
Success Factors for General Mills: As indicated, this phase will put GMI’s market driven
capabilities to the test on an on-going basis. In this final on-going phase, they will want to excel
at gathering real-time market intelligence and ataligning their product development and
promotion teams around that market intelligence, to ensure that they are offering products which
align with the personal image and ethic of people at this stage of life for years to come.
TO COME:
Section 5 – Tribal Integration Tactics
Section 6 – Summary.
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