Marketing of lucky charms assignment

This is about marketing. It’s not really about nutrition,” says Marion Nestle, a nutritionist at New York University. Still, many mothers are applauding General Mills. “ If it’s to better the health of kids and whoever eats it, it’s about time they started getting it done,” says Kris Simonson. Die-hard consumers like her daughter Kali Simonson could care less. As long as the cereal tastes good, she doesn’t care what’s in it. ?? 2008 msnbc. com_ Reprints_ *General Mills Thrives on Increased Marketing Spending: *Boosting TV Ads Hiked Cereal Sales, But Digital ROI Even Higher BOCA RATON, Fla. AdAge. com) — General Mills, one of the package-food industry’s top performers, laid out a number of recent marketing successes at the Consumer Analysts Group of New York conference this morning, and offered a preview of the rest of its fiscal year. The company has staunchly supported consumer-marketing spending increases — 19% in the first half of fiscal 2009, which began in June — while competitors, including Kellogg and Kraft, have begun to scale back on the heady marketing outlays of 2008, instead preaching bundling and greater return on investment.

General Mills estimates that its consumer-marketing spending will be up by “ double digits” for the full fiscal year. CEO Ken Powell has repeatedly said that it’s particularly important to support well-known brands during the current economy. “ We’re meeting here in Florida at a time of great economic uncertainty around the world,” Mr. Powell said. “ General Mills has weathered the storm due in large part to the strength of our product categories and the strength of our brands. ” He underscored that the company has a number of well-known 50-year-old brands, such as Cheerios and

It guided for adjusted earnings in the range of $3. 78 to $3. 83 a share. Analysts have been expecting earnings of $3. 81 a share in 2009. Rival company Kellogg’s, raised prices in January to offset expensive raw material costs. Rather than hiking prices again, the company said it would shrink the size of cereal boxes instead and sell them for the same price (See: Kellogg’s Crumbling Profits). Kellogg’s skimmed an average of 2. 4 ounces from boxes that will be used for 14 products under brands like Apple Jacks, Cocoa Krispies, Corn Pops, Froot Loops and Honey Smacks. The boxes shipped to U. S. stores earlier this month.