April 4, 1994, General Mills, the number two producer of grain in the U.S., announced in a box to reduce the price between $ 0.30 and $ 0.70 for eight brands, which accounted for 40% of its volume of grain. The case focuses on the possible answers Kellogg, to lower prices General Mills, providing opportunities to discuss various strategies to respond to private label and branded store competition. Specific responses are discussed in the case include lower prices, coupons, and other promotional tools, and advertising. Of particular interest is the use of Kellogg's advertising account to transfer the consumer price of each box of cereal in each bowl of cereal price. See also Case B (UVA-M-0472). "Hide
by Mark Parry, Yoshinobu Sato Source: Darden School of Business 22 pages. Publication Date: February 21, 1996. Prod. #: UV2859-PDF-ENG