Friday, January 13, 2006

Cereal ad wars

General Mills has been losing market share to Kellogg, so this week they announced that will be significantly increasing their advertising spending. They believe that their market share has dropped due to raising prices on many of their cereals.
That's a possibility, although I'm not completely convinced that, with the exception of the bagged and store-brand cereals, people buy cereal more for brand than price. Yet, within the last couple of years General Mills has done a better job of brand development. So, maybe price has been having an effect. I guess we'll have to see what happens as the result of these new marketing efforts.
LINK to Reuter's story.


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