Challenges that Ivan Guillen faces
Refrigerated cookie segment is the most profitable product for General Mills. However the growth of the sale volume had remained nearly flat and household penetration had fallen to 24 per cent. For Guillen, he is facing challenges internally with the stagnant sale growth of flagship products. At the same time he has limited consumer budget in his hand. Since General Mills Canada finds that new advertising spots were expensive to develop, so the corporation chooses to adapt of United States advertisement for Canadian market, based on the assumption that overall consumer demographic in the United States were very similar to Canada. Externally, Guillen is facing with below average brand recognition and relevance in his product. Last commercial campaign which is launched in 2005 shows that the below average performance in the above measures ultimately results in the failure to generate volume boost from the new commercial. In addition, there is fundamental difference between the cookies baking preference between Canadian and United State consumers. Even though General Mills cookie dough is highly perceived as convenient and tasty, 56 percent of the household in Canada choose to bake from scratch. This is harmful to the business of General Mills which sells refrigerated baked goods and explained the inappropriateness in the approach of using United States advertisement for Canadian market.
Corresponding implication for the actions the team should take Firstly the team should identify their prospects and customers. In the United State, the consumer targeted was mothers in their mid-30s to 40s who, along with her family, led an active and busy lifestyle. As shown from the usage and attitude study, there are several differences in consumers’ choices. Canadian households tend to bake their own cookies from scratch, and even if they choose to buy cookie dough, the quality of cookie is not as highly valued....
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