Vivekanand Education Society Institute of

Management Studies and Research

FINAL REPORT
ON
“Comparative Analysis of Multiple Markets”
By
Ashwini Madappattil
Roll no: 31

Faculty Mentor:
PROF. BRIJESH SHARMA

Industry Mentor:
Dishti Naik

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 A Report
ON
“Comparative Analysis of Multiple Markets”
By

ASHWINI MADAPPATTIL
Roll no: 31

A report submitted in partial fulfillment of the

requirements of 2 years PGDM program of
Vivekanand Education Society Institute of
Management studies and Research, Mumbai

(2016 – 2018)

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3
1. Executive Summary

1.1. Comparative Analysis of Markets

This project provides an analysis and evaluation of the two markets Along with the Yogurt
category it also helps to analyse major brands of yogurt Neilson nitro tool was used for
extraction of data for both markets. The collected data was analysed and visualizations are
made for easy analysis of both markets.
Results of the analysis shows that there is a declining trend in yogurt category irrespective
of market considered.
Another insight also shows that manufacture $ share of different manufacturer.
Price Gap Analysis was also implemented to find out the price difference of various
segments in yogurt category
The helps to analyse major brands of yogurt category on the basis of ranking.

1.2. Sales Effectiveness Visualization

The objective behind building the analysis of the yogurt was to build a platform to track
and measure the performance of yogurt category in different markets. The visualization
reports are used by entire sales manager hierarchy – right from the National Sales Manager
to the Area Sales Managers.

The project allows the users to comprehensively review each sales manager’s performance
and understand their progress relative to other managers.

This project is equipped with a lot of visualization which makes it an excellent tool to
conduct a deep dive analysis. This also measures and reports perfect store figures, which
is a prominent KPI in the Retail industry.

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2. Industry Analysis
Food processing of the U.S. has come a very long way right from the 1900s when they
would put trans-fat into the supply chain. Companies then started the development of
products that lasted for longer periods of time and were easy to carry. In the 1940s, products
such as dehydrated juice and cake mixes were developed by the military, and these products
were known as “convenience foods.” More and more companies entered the market as
investors saw the opportunity in processed foods which not only created jobs but also led
to a rise of the American food manufacturing industry around the world.

Figure 1 Food Processing: New and Expansion Project Trends

Data which was from 2011-2015, showed that there had been around 1691 total food
processing project announcements from which 1033 were of expansion and 658 were of
new projects. The graph below shows an upward trend in both new as well as expansion
project categories starting from 2011 up to 2015.

Figure 2 Food Processing Expansion Projects State wise

If we look at all the geographic distribution of all projects in the country, we see that Ohio
is at the top with 124 announced projects which is followed by Pennsylvania and Kentucky
having122 and 121 projects respectively. States which are in the Midwest and Southern
regions seem to dominate this list. There are four states from the Midwest and South each
which rank on the top ten of the list.

2.1. Customer profile of the industry

The ultimate customers of Food Processing Industry are the people but the product doesn’t
reach them directly. There is a presence of a supply chain cycle. There are retail stores.
These can be divided into –

 Supercenter which are large and have a larger merchandizing space

 Neighborhood stores which are located in every area and which are smaller than
10000 sq. feet having a moderate merchandizing space

 Departmental Stores which are small in size, generally located at fuel stations or
parking area. These are generally stores for quick purchase. They have the least

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 merchandizing space. Generally a customer can find its presence in all of the above
types of stores. The common customers for food processing industry are Walmart,
Target, Kroger, Fareway, Safeway etc. This is the current presence of the
competitors in USA

2.2. Supplier profile of the Industry

Food and beverage manufacturing

Nourishment and refreshment fabricating plants change crude farming materials into
items for halfway or last utilization by applying work, hardware, vitality, and logical
information. A few items may fill in as contributions for additionally preparing, (for
example, syrup for assembling pop). In 2015, these plants represented 16 percent of the
estimation of shipments from all U.S. fabricating plants. Since middle of the road inputs
(principally farming materials) represent a generally vast offer of nourishment and drink
producers' costs, esteem included sustenance and refreshment fabricating speaks to a
somewhat littler offer (14.1 percent) of significant worth included all assembling. Meat
handling incorporates domesticated animals and poultry butcher, preparing, and
rendering, and is the biggest single part of nourishment and refreshment fabricating, with
24 percent of shipments in 2015. Other imperative parts incorporate dairy (13 percent),
refreshments (13 percent), grains and oilseeds (10 percent), leafy foods (8 percent), and
other sustenance items (12 percent). Drink fabricating (18 percent) and meat handling (17
percent) are additionally the biggest parts of the nourishment division's aggregate esteem
included.

Figure 3 Supplier Profile Market Share

The general List of suppliers for the food industry is as follows

 Suppliers in Chemical Manufacturing Industry

 Suppliers in Chemicals - Plastics & Rubber Industry
 Suppliers in Containers & Packaging Industry
 Suppliers in Metal Mining Industry
 Suppliers in Paper & Paper Products Industry

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  Suppliers in Construction Raw Materials Industry
 Suppliers in Construction Services Industry
 Suppliers in Miscellaneous Manufacturing Industry
 Suppliers in Industrial Machinery and
 Components Industry
 Suppliers in Conglomerates Industry
 Suppliers in Auto & Truck Parts Industry
 Suppliers in Agriculture Production Industry
 Suppliers in Food Processing Industry
 Suppliers in Personal & Household Products Industry
 Suppliers in Investment Services Industry
 Suppliers in S&Ls Savings Banks Industry
 Suppliers in Professional Services Industry
 Suppliers in Scientific & Technical Instruments Industry
 Suppliers in Transport & Logistics Industry
 Suppliers in Railroads Industry
 Suppliers in Grocery Stores Industry

Every one of these providers have a tremendous rundown of providers which is more than
200 according to the data gathered by csimarket.com. For the US sustenance handling
activities a general perception can be made that the vast majority of the providers are from
USA and Canada. A point by point technique of specific organizations in choosing
providers is said beneath.

General Mills

The essential crude materials utilized are grains (wheat, oats, and corn), sugar, dairy items,
vegetables, organic products, meats, vegetable oils, and other farming items. Likewise
considerable amounts of container board, layered, plastic and metal bundling materials,
working supplies, and vitality are utilized. A large portion of these sources of info are buys
for residential and Canadian tasks are acquired from providers in the United States. In
universal activities, inputs that are not locally accessible in sufficient supply might be
transported in from different nations. The cost of these information sources may vacillate
generally because of outer conditions, for example, climate, item shortage, constrained
wellsprings of supply, ware advertise variances, cash variances, and changes in
administrative farming and vitality strategies and controls. The organization has some long
haul settled value contracts, yet most of the data sources are acquired on the open market.
At times and where conceivable, they make propel buys of things huge to our business
keeping in mind the end goal to guarantee congruity of activities.

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Kellogs

Crude Materials, Horticultural wares, including corn, wheat, soy bean oil, sugar and cocoa,
are the important crude materials utilized as a part of our items. Container board, ridged,
and plastic are the foremost bundling materials utilized by us. We ceaselessly screen world
supplies and costs of such products (which incorporate such bundling materials), and also
government exchange arrangements. The cost of such products may vacillate broadly
because of government arrangement and direction, climate conditions, environmental
change or other unexpected conditions. Nonstop endeavors are made to keep up and
enhance the quality and supply of such wares for reasons for our here and now and long
haul prerequisites.

The central fixings in the items created by us in the United States incorporate corn meal,
wheat and wheat subsidiaries, oats, rice, cocoa and chocolate, soybeans and soybean
subordinates, different organic products, sweeteners, flour, vegetable oils, dairy items,
eggs, and other filling fixings, which are gotten from different sources. The greater parts
of these items are bought basically from sources in the United States.

They go into long haul contracts for the wares portrayed in this area and buy these things
on the open market, contingent upon our perspective of conceivable value changes, supply
levels, and our relative arranging power. While the cost of some of these products has, and
may proceed to, increment after some time, we trust that we will have the capacity to buy
a satisfactory supply of these things as required. Crude materials and bundling required for
universally based tasks are accessible in satisfactory supply and are here and there imported
from nations other than those where utilized as a part of assembling. Natural gas and
propane are the essential wellsprings of vitality used to control preparing stoves at real
local and worldwide offices, albeit certain areas may utilize oil or propane on a go down
or elective premise.

Hormel Foods

The Company has, for as far back as quite a long while, been focusing on handled marked
items for shoppers with year-round request to limit the regular variety experienced with
ware write items. Pork keeps on being the essential crude material for Company items. In
spite of the fact that the live pork industry has advanced to huge, vertically coordinated,
year-round tasks, and supply contracts have turned out to be pervasive in the business, there
is as yet a regular variety in the supply of crisp pork materials. The Company's extending
line of prepared things has diminished, yet not wiped out, the affectability of Company
results to crude material supply and value changes. Most of the pigs gathered by the
Company are obtained under supply contracts from makers found mainly in California,

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Colorado, Illinois, Iowa, Kansas, Minnesota, Nebraska, North Dakota, Oklahoma, South
Dakota, Texas, Utah, and Wisconsin.

Kraft Heinz

Kraft Heinz make (and contract for the fabricate of) their items from a wide assortment of
crude nourishment materials. They buy and utilize substantial amounts of items, including
dairy items, meat items, espresso beans, nuts, tomatoes, potatoes, soybean and vegetable
oils, sugar and different sweeteners, corn items, wheat and different merchandise to make
our items. Also, they buy and utilize huge amounts of saps and cardboard to bundle our
items and gaseous petrol to work our offices

The most critical cost parts of their cheddar items are dairy wares, including milk and
cheddar. They buy the dairy crude material prerequisites from free outsiders, for example,
rural cooperatives and autonomous processors. Market free market activity, and
government programs, altogether impact the costs for drain and other dairy items.
Noteworthy cost parts in our meat business incorporate pork, hamburger, and poultry,
which we basically buy from material neighborhood markets. Domesticated animals
nourish costs and the worldwide free market activity for U.S. meats impact the costs of
these meat items.

The most huge cost part of espresso items is espresso beans, which we buy on world
markets. Quality and accessibility of supply, money variances, and purchaser interest for
espresso items affect espresso bean costs. The most critical cost parts in our nut items
incorporate peanuts, cashews and almonds, which we buy on both residential and world
markets, where worldwide market free market activity is the essential driver of cost.

Conagra Foods

ConAgra Foods is a sustenance organization that works in numerous areas of the

nourishment business, with a noteworthy spotlight on the offer of marked, private marked,
and esteem included buyer nourishment, and in addition foodservice things and fixings.
They utilize various crude materials, the main part of which are items.

The costs paid for crude materials utilized as a part of making their nourishment for the
most part reflect factors, for example, climate, ware showcase changes, money variances,
duties, and the impacts of legislative farming projects. In spite of the fact that the costs of
crude materials can be required to change because of these variables, they accept such
crude materials to be in satisfactory supply and for the most part accessible from various

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sources. Every now and then, they have confronted expanded expenses for huge numbers
of their noteworthy crude materials, bundling, and vitality inputs.

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2.3. Competitors profiling of the Industry
General Mills in USA is categorized under the Food Processing Industry. The food
processing industry in USA is a very large industry due to its huge demand. This industry
can classify its products into various categories namely cereals, yogurt, refrigerated baked
goods, convenience and food services, nutrition snacks, fruit snacks etc. The major players
differ based on the categories.

2.3.1. Cereal market analysis

Kellogg is the top manufacturer in this category for cold/hot cereals followed by General
Mills. The shares for this category for 2016 are as follows with total sales of $5524 M.

Figure 4 Cereal Market Share

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The top 10 selling products in the category are –

Rank Brand Manufacturer Sales ($M)

1 Quaker Quaker Oats $336.50

2 Honey Nut Cheerios General Mills $282.80
3 Frosted Flakes Kellogg $228.50
4 Honey Bunches Of Oats Post Holdings $225.30
5 Cinnamon Toast Crunch General Mills $198.70
6 Cheerios General Mills $173.60
7 Froot Loops Kellogg $143.10
8 Lucky Charms General Mills $137.00
9 Raisin Bran Kellogg $106.60
10 Special K Kellogg $96.10
Table 1 Top 10 Selling Cereals in US market

2.3.2. Health Snacks

With an increasing awareness among consumers on healthy eating, snack bars have
become immensely popular replacing chocolates, cakes, and biscuits as the go-to snacks.
Snack bars manufacturers are introducing the health aspect into their products regarding
the protein and fiber content. The global snack bars market is estimated to be worth USD
4.29 billion in the US in 2016.

This category can be divided into –

Figure 5 Health Snacks Segmentation

Each of these segments have different competitors. The below tables will elaborate
them.

Granola Bar

Rank Brand Owner Sales (m)

1 Clif Clif Bar & Co $406.90
2 Fiber One General Mills $264.10

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 3 Special K Kellogg $145.20
Protein
4 Nature Valley General Mills $135.20
Protein
5 Atkins Atkins Nutritionals $134.80
6 Quest Bar Quest Nutrition $131.40
7 Kind Nuts And Kind $109.40
Spices
8 Kind Plus Kind $109.40
9 Pure Protein Worldwide Sport $105.50
Nutrition
10 Clif Builder Clif Bar & Co $103.00
Table 2 Top 10 Granola Bars

Breakfast Bar

Rank Brand Owner Sales (m)

1 Nature Valley General Mills $390.00
2 Nature Valley Sweet & General Mills $267.10
Salty Nut
3 Quaker Chewy Quaker Oats $229.60
4 Kashi Kashi $97.90
5 Quaker Chewy Dipps Quaker Oats $91.40
6 Sunbelt Bakery McKee Foods $87.80
7 Kind Healthy Grains Kind $84.60
8 Quaker Big Chewy Quaker Oats $37.20
9 Cascadian Farm General Mills $36.40
Organic
10 Atkins Atkins $32.50
Table 3 Top 10 Breakfast Bars

Nutrition Bars

Rank Brand Owner Sales (m)

1 Clif Clif Bar & Co $406.90

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2 Fiber One General Mills $264.10
3 Special K Kellogg $145.20
Protein
4 Nature Valley General Mills $135.20
Protein
5 Atkins Atkins Nutritionals $134.80
6 Quest Bar Quest Nutrition $131.40
7 Kind Nuts And Kind $109.40
Spices
8 Kind Plus Kind $109.40
9 Pure Protein Worldwide Sport $105.50
Nutrition
10 Clif Builder Clif Bar & Co $103.00
Table 4 Top 10 Nutrition Bars

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2.3.3. Refrigerated Baking Good
This statistic displays the market leaders of the refrigerated pizza crust and dough in the
United States in 2016, based on sales. In that year, General Mills was the leading
refrigerated pizza crust and dough vendor in the United States based on sales of about
8.78 million U.S. dollars. It can be clearly seen that General Mills has very less
competition in this category.

Figure 6 Brand sales comparison for RBG

2.3.4. Yogurt Category

Yogurt is a growing sector in USA, Yogurt is considered as a mid day snacks by a large
chunk of US population. There are various categories of yogurt such as Greek, Family,
Kids, Hispanic, All Family and Organic.

This statistic represents the yogurt market share in the United States in 2016, broken
down by company. For the year ending January 2016, Chobani an American yogurt
company held a massive 11.6 percent share of the U.S. yogurt market. In 2015, the
company generated some 1.6 billion U.S. dollars from yogurt sales in the United States.

The trend of Yogurt sales changed this financial year when Chobani crossed the sales of
Yoplait with the introduction of Greek Yogurt.

Figure 7 Yogurt Brand Wise Market Share

2.3.5. Dry Cake Mixes

A baking blend is a pre-blended plan of fixings utilized for the cooking of prepared
products. Preparing blends might be economically produced or hand crafted. Heating
blends that take into account specific dietary needs, for example, sans gluten preparing
blends or fit heating blends, can be purchased in numerous spots.

This statistic shows the brands of dry cake mixes used most often in the United States in
2016. The data has been calculated by Statista based on the U.S. Census data and
Simmons National Consumer Survey (NHCS). According to this statistic, 101.6 million
Americans used Betty Crocker Supermoist Cake in 2016.

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 Figure 8 Brand Sales for Dry Cake Mixes

2.4. Industry Financials

The revenue acquired by the Food Processing Industry for the fiscal year 2016 was $
425,495 million.

Below is the list of top manufacturers in USA taken from CSI Market list.

Sr. Company Market Revenues Net Employees

No. cap Income
(Millions) (Millions) (Millions) Number

1 Kraft Heinz Co $107,209 $26,281 $3,633 42,000

2 Mondelez International, Inc. $67,502 $25,488 ($4,966) 104,000

3 General Mills Inc $32,880 $15,620 $1,701 42,000

4 Sysco Corp $28,428 $54,598 $1,053 51,700

5 Archer Daniels Midland $24,191 $62,950 $1,398 33,900

6 Kellogg Co $23,948 $12,873 $782 29,790

7 Tyson Foods Inc $23,310 $36,824 $1,812 124,000

8 Hershey Co $22,721 $7,516 $645 20,800

9 Lamb Weston Holdings, Inc. $19,358 - $0 -

10 Hormel Foods Corp $18,429 $9,398 $886 20,400

11 Mead Johnson Nutrition Co $16,547 $3,664 $590 7,200

12 Campbell Soup Co $16,172 $7,913 $488 19,400

13 Conagra Brands Inc. $14,854 $8,094 $648 32,900

14 J M Smucker Co $14,131 $7,392 $592 7,370

15 Mccormick & Co Inc $12,074 $4,476 $479 10,000

16 Bunge Ltd $11,534 $44,884 $583 33,000

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 17 Whitewave Foods Co $10,245 $4,198 $215 5,300

18 Ingredion Inc $9,047 $6,125 $493 1,100

19 Pinnacle Foods Inc. $7,150 $3,128 $182 4,300

20 Pilgrims Pride Corp $6,029 $7,989 $416 29,100

21 Post Holdings, Inc. $5,706 $5,012 $60 8,700

22 Seaboard Corp $4,990 $5,459 $343 10,772

23 Treehouse Foods, Inc. $4,939 $6,441 ($197) 5,880

24 Hain Celestial
TableGroup Inc.
5 Financial $4,690
Performance of$2,885 $47 Industry
Food Processing 6,307

25 Blue Buffalo Pet Products, $4,527 $1,172 $137 1,900

Earnings Outlook increase

Investigating income appraises inside the Food Processing Industry in the present quarter,
37.5 % of organizations, who give gaining direction inside Food Processing Industry
have expanded their profit viewpoint for the current monetary year. Yet, this misses the
mark, as more partnerships cut their income gauges.

Earnings Guidance unchanged

In the current monetary conditions, the vast majority of the enterprises inside the Food
Processing Industry are OK with the yearly income direction they have given before as
62.5 % of organizations, who issued winning standpoint inside Food Processing Industry,
have repeated their profit per share viewpoint for the current financial year.

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2.5. Challenges faced by the industry
Healthy and clean label vs. diet-friendly

Buyers aren't as centered around diet fit for counting calories regarding cutting fat and
calories as they used to be. Numerous are presently more roused to buy items they esteem
to be all the more firmly lined up with wellbeing and prosperity, for example, items without
simulated fixings, GMOs, or pesticides, Lash said. This has offered ascend to cleaner marks
and an expansion of items in the non-GMO and natural sections, which has put more weight
on significant nourishment and drink organizations to adjust to these patterns.
Organizations like General Mills, Kellogg, Nestle, Hershey, and Campbell all promised to
expel simulated fixings from all or certain sections of their portfolios.

Rise of natural and organic products

General Mills and Annie's, Kellogg and Kashi, Hormel and Applegate, Campbell and Plum
Organics/Bolthouse Farms, and Mondelez and Enjoy Life are only a couple of cases of
how bigger organizations are extending their portfolios with the littler normal and natural
organizations they may some way or another view as dangers in a specific part.

Adapting to shift toward e-commerce

Businesses like customer gadgets, machines, toys and amusements, and other family items
are as of now immovably settled in the online business space, yet sustenance and
refreshment producers have generally speaking been slower on the take-up. Physical
retailers and online retailers like Amazon have been putting resources into basic need
internet business, yet makers themselves are additionally getting into the web based
business amusement gradually yet doubtlessly.

Adding value to products

Value added sustenance and refreshments, for example, items invigorated with vitamins,
minerals, or protein, are winding up more well known as buyers search for something other
than flavor and cost when settling on buying choices. Makers are searching for approaches
to increase the value of their items in ways that bode well without causing over the top
expenses or including fixings that customers may not perceive and thusly could dismiss.

Free-from
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Lately, there has been a developing interest for nothing from items. The prevalence of
without fat and sans sugar items has expanded drastically. Some of this is down to a more
noteworthy familiarity with nourishment allergens and different circumstances it is a
direction for living. There are currently an expansive number of free-from items accessible
including gluten to soy, dairy to mustard, nuts to sodium.

The development in the market for sans gluten items has achieved a level where
Warburtons, Delicious Alchemy and Genius Foods among others have set-up the Gluten
Free Industry Association (GFIA). One of its essential objectives is to share best practice
and create rules on fixing sourcing and gluten-testing. 2017 is probably going to see the
proceeded with development of the low FODMAP (an acronym for Fermentable,
Oligosaccharides, Disaccharides, Monosaccharides and Polyols) development. Supporters
of a low FODMAP eat less carbs, some of which have stomach related grievances, hope to
dispense with these sugars that are found in regular sustenance and additionally added
substances.

Global patterns for healthy fats

Customers are jettisoning the trans fats and progressing to nourishments that contain more
common fixings and are high in immersed fats including:

• Organic dairy items

• Grass-bolstered meats

• Natural oils

• Nuts

In light of an investigation of more than 400 research papers directed by Credit Suisse,
"Worldwide utilization of spread is developing all around at a rate of 2-4% every year;
entire drain deals are up 11%, while skim drain deals are down 14% in the US over the
most recent a half year; and natural egg utilization in the US is up 21% over the most recent
a year. The report demonstrates that fat utilization will keep on growing throughout the
following fifteen years with fat representing 31% of calorie allow by 2030, up from 26%
right now. Immersed fat should represent 13% of all calorie allow by 2030, from around
9% now."

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2.6. Government Regulations
The U.S. Food Processing area is widely controlled by state and government organizations.
Government offices command the administrative oversight: USDA FSIS for the meat and
poultry preparing organizations and FDA for all other nourishment handling organizations.
State organizations additionally have a dynamic part in supervising nourishment preparing
organizations inside their particular states, yet their part is in a joint effort with the
government offices.

2.6.1. Food and Drug Association

The FDA and a state office in each state (for example, the North Dakota Department of
Health or the Minnesota Department of Agriculture) are both approved to review any
nourishment preparing firm in the state. These investigations can happen whenever the
business is working and don't need to be reported before the landing of the controller.

This is a noteworthy contrast between investigation of meat/poultry handling and preparing

of different nourishments: handling of "different sustenance" does not require persistent
assessment and each sustenance thing isn't required to be reviewed. Amid the review, the
FDA or state organization can solicit to see any part from the preparing office, to
investigate the business' records, and take tests of the business' item to test by the office.
Any plant that declines to permit a review will be liable to authorization activity, for
example, securing a court arrange/warrant allowing an investigation.

Since a review can be led whenever, the firm should persistently be prepared for an
examination. Neatness and legitimate working practices must be kept up constantly, for
instance. Similarly, firms are urged to have an examination design; that is, an arrangement
for how the firm will react when a controller arrives. At any rate, the firm should know
which staff part will be relied upon to go with the controller and react to the assessor's
inquiries and solicitations.

2.6.2. Hazard Analysis and Critical Control Point (HACCP) Food Safety
Plan
HACCP/Hazard Analysis is established on the rule that every sustenance business
evaluates the dangers related with its item, and creates and actualizes practices to diminish
the danger of dangerous nourishment. Extra standards incorporate

1. There is no real way to ensure that sustenance is protected; as well as can be

expected be proficient is to lessen or limit the danger of risky nourishment and

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 2. In light of the fact that each sustenance and nourishment producing forms postures
distinctive dangers, every business needs to address its own particular
circumstance; there is no useful path for the legislature to grow enough directions
to address the full scope of circumstances that involve the assorted U.S. sustenance
industry. The sustenance business will distinguish, assess and set up a composed
investigation of known or sensibly predictable risks that might be related with the
office, including (An) organic, compound, physical, and radiological dangers,
common poisons, pesticides, tranquilize buildups, disintegration, parasites,
allergens, and unapproved sustenance and shading added substances (B) Risks that
happen normally or might be accidentally presented; and (C) perils that might be
purposefully presented, including dangers deliberately presented by demonstrations
of fear based oppression.

2.6.3. Good Manufacturing Practices (GMPs/SSOPs)

Quite a few years before the improvement of HACCP/Hazard Analysis, the gauges for
handling nourishment were epitomized in Good Manufacturing Practices. GMPs address
staff, structures and offices, plants and grounds, sterile tasks, clean offices and controls,
gear and utensils, procedures and controls, and warehousing and appropriation.

2.6.4. Sherman’s Antitrust Law

The Sherman Act is separated into three areas. Segment 1 outlines and forbids particular
methods for anticompetitive direct, while Section 2 manages final products that are hostile
to focused in nature. In this manner, these areas supplement each other with an end goal to
keep organizations from abusing the soul of the Act, while in fact staying inside the letter
of the law. Segment 3 essentially broadens the arrangements of Section 1 to U.S. domains
and the District of Columbia.

Section 1:

"Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint

of trade or commerce among the several States, or with foreign nations, is declared to be
illegal."

Section 2:

"Every person who shall monopolize, or attempt to monopolize, or combine or conspire

with any other person or persons, to monopolize any part of the trade or commerce among
the several States, or with foreign nations, shall be deemed guilty of a felony”.

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Based on Section 2, Pillsbury (only for Cake mix) which originally was a part of General
Mills had to be sold to J.M Smucker as the cumulative shares of both brands of General
Mills i.e. Betty Crocker and Pillsbury were exceeding 50% leading to a monopoly and
violating Section 2.

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3. About the Company
3.1. Genesis of the company and its vision and mission
The organization can follow its history to the Minneapolis Milling Company, fused in
1856. The organization was established by Illinois Congressman Robert Smith, who rented
control rights to factories working along the west side of Saint Anthony Falls on the
Mississippi River in Minneapolis, Minnesota. Cadwallader C. Washburn obtained the
organization not long after it’s establishing and contracted his sibling William D.
Washburn to aid the organization's advancement. In 1866 the Washburns got into the
business themselves, assembling the Washburn "B" Mill at the falls. At the time, the
building was thought to be so expansive and yield so huge that it couldn't in any way, shape
or form support itself. In any case, the organization succeeded, and in 1874 he assembled
the significantly greater Washburn "A" Mill.

In 1877 the plant entered an organization with John Crosby to frame the Washburn Crosby
Company, delivering Winter Wheat Flour. That same year Washburn sent William Hood
Dunwoody to England to open the market for spring wheat. Dunwoody was fruitful and
turned into a noiseless accomplice.

In 1878 the "A" factory was annihilated in a flour tidy blast alongside five close-by
structures. The resulting fire prompted the passing of 18 laborers. Development of another
factory started promptly. Was the new plant more secure as well as could deliver a higher
quality flour after the old crushing stones were supplanted with programmed steel rollers,
the main at any point utilized.

In 1880 Washburn-Crosby flour brands won gold, silver and bronze decorations at the
Millers' International Exhibition in Cincinnati, making them dispatch the Gold Medal flour
mark.

In 1924 the organization ventured in to assume control over a falling flat Twin Cities radio
station, WLAG, renaming it WCCO (from Washburn-Crosby Company)

Recent History

In 1990, a joint wander with Nestlé S.A. called Cereal Partners was framed which markets
oats (counting numerous current General Mills grain brands) outside the US and Canada
under the Nestlé name.

In 2001, the organization acquired Pillsbury from Diageo, despite the fact that it was
authoritatively depicted as a "merger".

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Since 2004, General Mills has been delivering more items focused to the developing
positions of wellbeing cognizant shoppers. The organization has exchanged its whole
breakfast oat line to entire grain. The organization likewise began fabricating their
youngster focused on grains with less sugar. General Mills has decreased the level of sugar
to all grains promoted to kids to 11 grams for each serving. The organization's current
advertising to kids incorporated the advergame Millsberry, a virtual city that included
amusements highlighting General Mills' items. The site propelled in August 2004 and went
through December 2010.

In April 2011 General Mills reported that it would switch every one of the 1 million eggs
it utilizes every year to confine free.

General Mills was positioned #181 on the 2012 Fortune 500 rundown of America's biggest
organizations, 161 of every 2015 and was the third-biggest nourishment customer items
organization in the United States. Amid June 2012, the organization's VP for decent variety
expressed that General Mills restricts a Minnesota alteration prohibiting gay marriage,
expressing that the organization esteems "incorporation". The organization got
constructive input for its stand which may draw in individuals to its worldwide workforce.

The organization reported in September 2014 that it would secure natural sustenance maker
Annie's Inc. for an expense of around $820 million, as a major aspect of its procedure to
grow in the US regular sustenance advertise. In October 2014, General Mills declared plans
to slice 700 to 800 occupations, for the most part in U.S., in corporate rebuilding wanted
to be finished before the finish of 2015.

In 2015, referring to environmental change, General Mills guaranteed to diminish its ozone
harming substance discharges by 28 percent more than 10 years. In December 2016, the
organization declared it would rebuild, part into four businesses bunches in view of
worldwide area, and cutting upwards of 600 occupations.

3.1.1. Profile of department in the organization

GBS (Global Business Solutions), a division of General Mills India Private Limited, works
from Mumbai to convey administrations, rearrange forms and change crafted by the
General Mills subsidiaries works far and wide whose key business regions include:

• Finance

Conveying an incentive by institutionalizing forms, wiping out excess exercises and

enhancing effectiveness, administration and consumer loyalty

24
• Information Systems

Driving conveyance of associated, secure, put stock in innovation arrangements and

abilities that drive business esteem

• Innovation, Technology and Quality

Driving endeavors in quality and administrative tasks and item development to guarantee
solid item quality and nourishment security

• Global Consumer Insights

Helping put Consumer First, empowering showcasing groups to fabricate and support solid
brands by investigating purchaser patterns and purchasing conduct

• Sales Solutions

Empowering client techniques; driving dissemination picks up and advancing promoting

plans to convey deals volume targets

• Supply Chain

Charming shoppers while driving development and an economical preferred standpoint by

supporting zero-misfortune culture, cross limits interface and business deftness

25
 Figure 9 Company Vision and Mission

3.1.2. Company Purpose and Pursuits

3.2. Product and services

General Mills products in the U.S. Retail can be divided into the following divisions. The
total net sales were $17.6 billion in fiscal 2016.

3%1%
10% 20%

Cereals
10% Snacks

$17.6 Yogurt
Convenient Meals
5% Billion
Super-Premium Ice Cream
19%
Dough
Baking Mixes
16%
Vegetables
16% Others

Figure 10 General Mills Product Categories

The Total net sale is a bifurcation of four segments along with the sales in each of them
considered by General Mills is

 U.S. Retail

Figure 11 U.S Retail

26
  International

Figure 12 General Mills: International

 Convenience Store and Food Services

Figure 13 General Mills: Convenience &Food store

 Joint Venture

Figure 14 General Mills Joint Venture

The Products Under U.S Retail include

 Meals
 Cereal
 Snacks
 Baking
 Yogurt

They provide a wide range of products of which a few to name are

1) Meals

 Dinner kits from Annie's, Hamburger Helper, Old El Paso and Wanchai Ferry.

 Frozen and canned vegetables from Green Giant.

 Side dishes from Betty Crocker.

2) Snacks

 Brands include Chex Mix, Nature Valley and Cascadian Farm granola bars
and Bugles corn snacks.

 Gardetto’s snack mix is based on an authentic family recipe.

27
  Betty Crocker offers a wide range of fruit-flavored snack choices that are favorite with
kids. A flavorful source of vitamin C.

 Annie's, the newest addition to our snack products lineup, includes gluten-free options

3) Cereals

 Cascadian Farm
 Cheerios
 Chex
 Cinnamon Toast Crunch
 Fiber One
 Kix
 Lucky Charms
 Monsters
 Total
 Trix
 Wheaties

4) Baking

Pillsbury is synonymous with baking - the market leader in the refrigerated dough category.
But Pillsbury is just one baking solution that General Mills provides.

Other time-tested staples:

 Gold Medal flour
 Bisquick
 Betty Crocker

Then there is Immaculate Baking, which gives consumers a different baking option.
Beyond U.S. shores, we have brands such as V.Pearl in China, Pillsbury Atta in India,
and La Salteña in Argentina.

5) Yogurt

The Four brands of yogurt include:

 Yoplait

28
  Mountain High
 Liberté
 Annie's

Yoplait is a leader in the multi-billion dollar U.S. yogurt category. In France, the brand has
become affectionately known as "the little flower."
Yoplait also is available in about 70 other countries, significantly in Australia, Mexico and
Canada. Whether it's Greek, frozen smoothies, light offerings, or our kids' yogurts, Yoplait
is the only leading yogurt with vitamin D in every cup.

General Mills markets all-natural Mountain High yoghurt in convenient single-serve cups
or family-sized quarts.

Annie's provides certified organic, whole milk yogurt in many varieties, including popular
berry flavors.

6) Pizza

 Totino’s Party Pizza and Jeno’s Crisp ’n Tasty Pizza sell more than 300 million frozen
pizzas every year.
 Totino’s also markets bite-sized pizza rolled into a snackable crust.
 Annie's, a natural and organic line, has frozen pizza, pizza poppers and pizza bagels.

7) Haagen Dazs
The Pillsbury Company bought Häagen-Dazs in 1983. In 1999, Pillsbury and Nestlé
merged their U.S. and Canadian ice cream operations into a joint venture called Ice Cream
Partners. General Mills, in turn, bought Pillsbury in 2001 and succeeded to its interest in
the joint venture. That same year, Nestlé exercised its contractual right to buy out General
Mills' interest in Ice Cream Partners, which included the right to a 99-year license for the
Häagen-Dazs brand. Since then, pursuant to that license, the Dreyer's subsidiary of Nestlé
has produced and marketed Häagen-Dazs products in the United States and Canada.

3.3. Position in the industry

 In the FMCG Industry General Mills ranks 7 based on Revenue

The table is as follows –

Sr. No. Company sales(in $B) profit (in $B)

1 Procter & Gamble $81.70 $9.58

29
 2 Pepsico $66.70 $6.50
3 Coca Cola $45.90 $7.10
4 Kimberly Clark $20.90 $1.50
5 Kraft Foods $18.20 $1
6 Altria Group $17.90 $5.10
7 General Mills $17.60 $1.40
8 Colgate Palmolive $17.30 $2.20
9 Con Agra Foods $16.20 ($0.79)
10 Kellogg’s $14.60 $0.63
Table 6 Industry Ranking

 As per the ranking by Tenet Partners, Core Brand, General Mills has ranked 18 in
2013 and 16 in 2014 and 2015 under the Top 50 Most Powerful Brands in U.S.

 As per rankings of Core Brand, it has been at rand 24 under the Top 50 Most Familiar
Brands

 It ranks 1 in India’s best place to work under Food Category by Economic times

 It ranks 165 currently under the Fortune 500 Companies

30
3.4. Stakeholder Details
The information showed in the Holdings Summary gives a preview of institutional
possessions and movement for a specific stock. The institutional property rundown
information envelops the possessions and change from latest 13F filings. The insider filer
information tallies the quantity of month-to-month positions more than 3 month and year
time ranges. Rundown information is computed day by day, utilizing the most a la mode
data accessible.

Shares of General Mills

27%

Non Institutional
Shares

Institutional Shares

73%

Figure 15 Establishment Summary as Reported in the latest 13F filings

Currently the total number of shareholders is 1260 with the total number of shares held
being 418,384,254. The values of the all the shares of General Mills are 22,287,267,578.
Below mentioned is the list of the top 25 shareholders

Ranking Owner Name Shared

Held

1 BLACKROCK INC. 41,481,439

2 VANGUARD GROUP INC 39,434,313

3 STATE STREET CORP 36,585,988

31
 4 INVESCO LTD. 16,008,504

5 MASSACHUSETTS FINANCIAL 12,884,617

SERVICES CO /MA/

6 BANK OF AMERICA CORP /DE/ 12,588,505

7 WELLS FARGO & COMPANY/MN 11,056,697

8 AMERICAN CENTURY COMPANIES INC 9,086,471

9 SCHRODER INVESTMENT 9,083,588

MANAGEMENT GROUP

10 NORTHERN TRUST CORP 8,820,964

11 MORGAN STANLEY 7,055,040

12 BANK OF NEW YORK MELLON CORP 7,013,411

13 GEODE CAPITAL MANAGEMENT, LLC 5,814,657

14 CREDIT AGRICOLE S A 5,745,185

15 NORGES BANK 4,820,811

Table 7 Top 25 Shareholders

The below Graph represents the Top shareholding Institutes.

32
 Share Holdings by Institions

10% BLACKROCK INC.

9% VANGUARD GROUP INC

STATE STREET CORP

9%

INVESCO LTD.
4%
65% 3% MASSACHUSETTS FINANCIAL
SERVICES CO /MA/

Reamining Institutional Shares

Figure 16 Share Holding By Institutions

33
3.5. Locational and operational details
3.5.1. Operations

Figure 17 General Mills Manufacturing locations

The organization gloats workplaces and assembling offices in excess of 30 nations. It

separates its business into three portions. Most of the company's business originated from
US Retail, which incorporates seven US-centered divisions that market Big G grains like
Cheerios, bundled dinners, for example, Hamburger Helper, the Pillsbury and Yoplait
brands, snacks like Nature Valley granola bars, heating items, for example, Betty Crocker,
and Small Planet Foods, a backup that offers natural brands Cascadian Farm and Muir
Glen.

Through completely possessed organizations outside of the US, General Mills International
section offers certain brands and items in Canada, Latin America, Europe, the Middle East,
Asia, and Australia. Among them are Cheerios, Green Giant, Häagen-Dazs frozen yogurt,
Old El Paso Mexican nourishments, Pillsbury, Wanchai Ferry dumplings, Yoplait, and
Yoki flour in Brazil (which was obtained in mid-2012 of every an arrangement that
multiplied General Mills' yearly deals in Latin America). The organization additionally
offers some neighborhood brands, including La Salteña pastas and tapas in Brazil and Jus-
Rol in the UK.

34
General Mills' littlest business fragment, Convenience Stores and Foodservice, conveys
preparing blends and flour to bread kitchens and market pastry shops; marked oats, snacks,
supported merchandise, and yogurt to schools, eateries, and inns; and an assortment of
items to comfort stores and candy machines.

General Mills likewise possesses enthusiasm for two joint endeavors: Cereal Partners
Worldwide with Nestlé (which offers such breakfast oats as Chocapic, Nesquick,
Shreddies, and Uncle Toby's) and Häagen-Dazs Japan (which works dessert bistros in that
nation). U.S. Retail represented around 60% of the organization's net deals in financial
2016 (May year end) and the International fragment, 28%. The rest of represented by
Convenience Stores and Foodservice.

3.5.2. Geographic Reach

Figure 18 General Mills Manufacturing Statistics

General Mills offers its items in excess of 100 nations all through North America, Latin
America, Europe, the Middle East, Asia, and Australia. The US is its biggest market,
representing 72% of offers. Europe is straightaway, contributing around 12%.

Notwithstanding its merged activities, the organization has a half stake in two vital joint
ventures that make and market nourishment items sold in excess of 130 nations around the
world.

35
The organization works 59 offices for the generation of a wide assortment of nourishment
items. Of these offices, 30 are situated in the US (1 of which is rented), 6 in the Asia/Pacific
locale (2 of which are rented), 4 in Canada (2 of which are rented), 10 in Europe/Australia,
and 9 in South and Central America and Mexico

3.6. Company Financials

The highlights of the company financials are as follows –

 In financial 2016 General Mills net deals declined by 6% due to a 4% drop from
outside cash trade rates identified with re-estimation because of the estimation of
the US dollar over different monetary standards; the offer of the Green Giant
vegetable business in North America; and a 52-week year (contrasted with a 53-
week in monetary 2015). Barring the effect of remote trade, net deals declined by
2% in financial 2016.
 Net deals for the International fragment declined by 10%, reflecting negative
outside money interpretation impacts. On a consistent money premise, International
net deals expanded 3%. Net deals developed by 12% in Latin America, with a
decent execution in Brazil, including the securing of Carolina yogurt in that market.
Deals ascended by 3% in Europe on account of development on Old El Paso
Mexican items and Häagen-Dazs frozen yogurt. Asia/Pacific incomes went up by
1%, drove by twofold digit deals development in India. Net deals declined by 4%
in Canada, driven by the divestiture of the Green Giant vegetable business in that
market.
 The organization has recorded net wage development in the course of the most
recent five years. Net salary expanded by 39% in monetary 2016 because of lower
rebuilding, impedance, and other leave expenses, and s pick up from divestitures.
 Money from working exercises developed by 3% due to a $477 million increment
in net profit (counting a $96 million change in conceded salary charges and a $148
million net pick up on divestitures) additionally counterbalance by a $424 million
abatement in non-money rebuilding charges.
 The $43 million change in current resources and liabilities was fundamentally
determined by the planning of records payable including the effect of longer terms
balance by the planning of stock form.
 The Revenue, Costs and Gross Profits for the last 4 fiscals years are as per the
following –

5/28/2017 5/29/2016 5/31/2015 5/25/2014

Total $15,619,800 $16,563,100 $17,630,300 $17,909,600
Revenue

36
 Cost of $10,056,000 $10,733,600 $11,681,100 $11,539,800
Revenue
Gross Profit $5,563,800 $5,829,500 $5,949,200 $6,369,800
Table 8 Revenue and Profits of General Mills

General Mills posted income of which speaks to a decrease of 7.1% from 2Q16. The
decrease in natural deals contributed 4%, while securing and divestitures contributed 3%
of the decay. Of the 4% natural decay, the decrease in natural pound volume contributed -
7%, which was balanced by 3% because of an ascent in items costs and positive deals
blend.

Exclusively, the U.S. Retail business fell 9% while International and Convenience Stores
and Foodservice fell 5%, and 4%, separately. Of the 9% decrease in U.S. Retail business,
6% was because of natural net deals decay and 3% was because of the divestiture of Green
Giant. The organization's administration faulted the logjam in the sustenance business and
lower showcasing support for the decrease in its deals.

3.7. Challenges faced by the company

Entry of Local Brand

Many Local Brands have emerged in the US market. These brands unlike General Mills
manufacture only one or a few type of products related to a particular category.

These Brands pose as huge threat to companies like General Mills as they develop a very
good technology and also have a very strong research and development. Also their product
are location specific due to which customers get attracted towards them owing to their
flavors and type.

For example, in the yogurt category, General Mills was on position 2 after Danone. The
entry of Chobani brought a wave of Greek Yogurt into the markets. Due to which the
consumers started purchasing and the sales of Yoplait dropped. Now Chobani had
exceeded the sales of Yoplait and currently ranks 2.

Organic wave

With the developing consciousness of shoppers towards sound and natural nourishment,
their decisions of sustenance needs to push toward such assortment. A considerable
measure of enormous organizations has now begun another innovative work of assembling
nourishment utilizing natural fixings.

37
The natural trick upheaval is a moving focus on that General Mills and other enormous
nourishment organizations can't make sense of. The organization used to repackage items
at regular intervals, or perhaps refresh a formula or two, yet natural brands and the
development of chains like Whole Foods have changed the guidelines of the sustenance
business. Clients are on a very basic level changing the sustenance they're searching out.

It's not simply natural sustenance’s, either. General Mills needs to manage clients who need
less gluten, not so much sugar, but rather more regular items, just to give some examples
customer patterns. It's a colossal test for a business used to ruling supermarket racks to see
little brands turn into a mainstream drift, filling specialty spaces that eat into deals.

General Mills to has created numerous items in this classification, for example, Cascadian
Farm, Annies, Larabar and so forth. These items go under the natural class as they are set
up from natural fixings. These items incorporate sustenance bars, soups, suppers, organic
product snacks and so forth. General gets an enormous piece of their income from such
items.

However there are as yet numerous classes and makers developing in this field and a great
deal of research is improved the situation the same.

Competition from Private Labels

Private labels are the brand of super markets like Walmart, Target, Krogers etc. Such supermarkets
manufacturer products under their label like Great Value for Walmart. These products are cheaper
than products of Companies like General Mills, Nestle etc.

Private labels target on those categories where consumer do not pay attention to brand and just need
product which is the cheapest like dough, dips etc. and not brand oriented categories like Cereals,
yogurt etc. As a result sales of General Mills in these categories are lower.

Acquisitions don't pan out

At the point when an organization like General Mills sees rivalry from an upstart, the common
response is to simply get them out. That is the thing that Kellogg did with Kashi, and it's what
General Mills did with Annie's in the fall of 2014. The organization paid $820 million for the
organization, and as indicated by Nielsen NV, the organization's business climbed only 9.4% to
$235 million in the main year after it was procured. As of late as June 6, the organization made a
comparable move, purchasing common meat bar creator EPIC Provisions at an anonymous cost.

The issue with acquisitions is that General Mills for the most part needs to pay high premiums for
these exceptional organizations, and the reserve individuals adore in the procured marks regularly

38
vanishes when it's obtained by a nourishment monster. Simply take a gander at the kickback Annie
has when it declared the securing on Facebook.

On the off chance that acquisitions don't produce strong returns as both income and benefit
development for General Mills, the stock could fall. This is a major stress as the organization turns
out to be increasingly urgent for development.

Foreign sales continue to struggle

An organization like General Mills won't be a major development organization in the U.S., so it
needs to seek worldwide markets for development. The issue is that General Mills hasn't increased
much footing in those business sectors. Only 26% of monetary second-quarter deals were
worldwide, and that was down 15% from a year prior. Indeed, even in the wake of altering for
money changes, development was only 3%.

In December, General Mills utilized a comparative strategy of acquisitions to create development,

purchasing Carolina Administracaoe Participacoes Societarias Ltd., a yogurt organization situated
in Brazil.

General Mills will need to get more out of its worldwide business to be a major champ for financial
specialists. What's more, if deals in the portion keep on falling, so could the stock.

Water policy

Nourishment generation, specifically, depends intensely on a satisfactory supply of clean water, for
developing harvests and making items for the present buyer. Since 2006, General Mills has had
particular objectives to lessen our water use rate in our own particular offices. They understood that
most of the water required to convey our items to shoppers is utilized upstream of our immediate
tasks. General Mills has evaluated that 99% of the water utilize related with our esteem chain
happens upstream of our immediate activities in agribusiness, fixing generation, and bundling.
Therefore they have focused on economically sourcing 10 need fixings by 2020, speaking to more
than 40 percent of our aggregate fixing purchase.

39
3.8. SWOT Analysis of the company

Strengths Weakness
 Increasing the value of  No revenue gains since 2012
dividends per share reflecting stagnant growth
 Brands have maintained  High debt due to continuous and
consumer loyalty and trust increased dividend pay
 Provides safe working  Unaware of the lawsuits filed
environment and encourage a against the company
healthy work/life balance  Local brand competition
 Committed to maintaining
highest standards for
responsible advertising and
marketing
 Contribution of resources,
time, and talent to communities
Opportunities Threats
 Intense competition from  Intense competition from various
various sectors within the sectors within the industry
industry  Increased bargaining power of
 Increasing awareness of food both buyers and suppliers
products  Increased tariff rate on main
components like agricultural land

Strengths

1. Increasing the value of dividends per share

From the consolidated statement of earnings report, it can be observed that despite of
reporting reduction in sales from $17,630 million in 2015 to $16,563.1 million in 2016, it
has continued to increase the value of dividends per share from $1.67 in 2015 to $1.78 in
2016.

2. Brands have maintained consumer loyalty and trust

General Mills has much more than 100 brands that are serving in more than 150 countries,
with some prominent brands such as Betty Crocker, Pillsbury, Totino’s, OEP to name the
few. The brands are maintaining consumer loyalty as well as trust for General Mills. Also,
through mergers and acquisitions, General Mills has added many American companies in
its portfolio eg Annies.

40
3. Provides safe working environment and encourage a healthy work/life balance

General Mills provide all employees with a safe and secure workplace and considers
preventing violence at workplace as its priority by implementing policies which prohibits
behaviours that undermines employee safety, including acts or threats of violence or other
forms of intimidation.

4. Committed to maintaining highest standards for responsible advertising and

marketing

General Mills is committed to maintain the highest standards for responsible advertising
and marketing, especially in advertising those which reaches children.

5. Contribution of resources, time, and talent to communities

General Mills Foundation and volunteers around the world contribute resources, time, and
talent to the communities where they work and live. One of its brand Yoplait is a steadfast
supporter of women’s health and wellness as a National Presenting sponsor of the Susan
G, the only organization that addresses breast cancer on multiple fronts of research,
community health, global outreach, and public policy initiatives to make the biggest impact
against this disease.

Weakness

1. No revenue gains since 2012 reflecting stagnant growth

General Mills had a debt to equity ratio of 3:1 in 2016. From the consolidated statement of
earnings report, it can be observed that there have been no revenue gains since 2012.
Despite this fact, they have continued increasing dividend pay-outs resulting in high debt
to equity ratio.

2. High debt due to continuous and increased dividend pay

The main reason for General Mills high debt is the money spent by General Mills in
acquiring new companies. At present scenario, there are some companies like Yoplait
whose performance has been declining, resulting in overcoming its losses through the
profits earned by other companies or through debt.

3. Unaware of the lawsuits filed against the company

It usually used to happen that General Mills was unaware of the lawsuits filed against it,
due to which it had to change its legal terms by introducing an arbitration clause which

41
states that all disputes with General Mills must be resolved in small claims court or
arbitration and not on behalf of a group.

4. Local brand competition

Many Local Brands have emerged in the US market. These brands unlike General Mills
manufacture only one or a few type of products related to a particular category.

These Brand pose a as huge threat to companies like General Mills as they develop a very
good technology and also have a very strong research and development. Also their product
are location specific due to which customers get attracted towards them owing to their
flavors and type. For example, in the yogurt category, General Mills was on position 2 after
Danone. The entry of Chobani brought a wave of Greek Yogurt into the markets. Due to
which the consumers started purchasing and the sales of Yoplait dropped. Now Chobani
had exceeded the sales of Yoplait and currently ranks 2.

Opportunities

1. Intense competition from various sectors within the industry

The market share of General Mills in cereal products has been around 32% for past couple
of years, indicating the potential for consumer products in U.S. market. General Mills has
been trying to identify opportunities in other countries but, it should realize that there
persists an opportunity for them in U.S. market. There has been rising demand for cereals
across the world.

2. Increasing awareness of food products

With the increase in awareness of food products, consumers are becoming more conscious
about their health therefore, General Mills can try to come up with new products under this
consideration with existing products like dough, pastries, pizza, snacks, etc. especially for
older population in the age group of 55 years and above, which constitutes approximately
25% of the total U.S. population.

42
Threats

1. Intense competition from various sectors within the industry

General Mills is facing intense competition from cereal and convenience food producing
company- Kellogg, dairy products, early life nutrition and medical nutrition producing
company- Danone, canned, frozen, and bottled food producer- Seneca Foods to name a
few. Also, there is a continuous threat of new entrant.

2. Increased bargaining power of both buyers and suppliers

General Mills has also witnessed increase in the bargaining power of both the buyers and
the suppliers resulting in high cost of sales and low profit margins, respectively.

3. Increased tariff rate on main components like agricultural land

WTO has increased the tariff rate for agricultural land, leading to increase in cost for
acquiring raw materials which can largely impact General Mills.

43
4. On The Job Training

4.1. Key Results Areas

As a part of the Category Analytics team, my core function were as follows

1) To understand the performance of categories at an overall level and dive deeper into
performance of brands and manufacturers by considering various facts and aspects
available through secondary data sources such as Nielsen and Retailer data portals.

2) To analyze and provide a snapshot of the performances. This portrayal is to be done

through various tools such as Excel, Tableau etc.

3) Another major aspect is to automate repetitive reports. The reasons for automation are
to reduce human errors and also focus on other aspects.

4.2. Target Assigned

 Competitive Analysis

1. To do Comparative Analysis for both the markets.

2. To provide analysis and evaluation of the two markets for Yogurt Category.
3. To analyze the major brands of Yogurt on the basis of ranking.
4. To find the segment dollar share of the category.
5. To present the data in the best form of visualization.
6. To update the reports as per the business questions.

44
4.3. Target Achieved
4.3.1. Comparative Analysis:

The sales team of the company operates in a fast-paced, performance-driven environment

to achieve their daily and weekly sales targets. The project was initiated with the business
questions by the stakeholders. The requirement was to understand the markets for the
Yogurt category. Yogurt is a dairy product. Yogurt is a good snacking option. It can be
consumed throughout the day as a meal, meal replacement, a snack and even as a dessert.

The stakeholders wanted to know how the yogurt category is performing in both the
markets. They wanted to know the category sizes. The performance of the brands in the
yogurt category. The trends of the manufacturers in the yogurt category. They wanted the
analysis in the form of power point presentation. There was no other limitations given by
them.

The analysis started off with pulling the data. The data was pulled using Nielsen Nitro and
Nielsen AOD (Answer on Demand) tools. Nielsen in simple term is an interface to MS
Office. Nielsen is a third party tool. Every Retailer has its own definition of category. It
includes both scan data and panel data. Nielsen is mostly used for Comparative analysis.
In Nilesen there are four dimensions that is Product, Market, Facts and Periods. Nielsen
helps in creating reports. The four dimensions are very important and it needs to have
atleast one value. In Nielsen you can add any conditions to create a report.

The project includes scan data for both the markets. The facts used for the project was
Dollar Volume, Segment Dollar Share, Dollar Sales per Total Distribution, Percenatge
Dollar Change and Average Base Unit Price. The Period used for the project was current
Year 52 weeks and Calender year 2014 – 2018.

45
 Figure 19 : Nielsen Nitro

 Nielsen Nitro is a Interface to MS Office i.e Ms Excel.

 It pulls data from database.
 It is third party tool.
 Each retailer has their own definition of category.
 It is used to do comparative analysis.

46
 Figure 20 : Edit Option In Neilson Nitro

 First select the database as per the requirements.

 It has four major dimensions:
Market
Products
Facts
Periods
 To pull data from database at least one value should be selected.
 Any conditions can be applied.

47
The facts used for the project was Dollar Volume, Dollar Share, Dollar Sales per Total
Distribution, Percenatge Dollar Change and Average Base Unit Price.

Dollar Volume

The total dollars spent by consumers for all units sold of a specific product.
It is calculated by multiplying price times units sold.
It allows the Retailer to make easy comparisons of performance within the category and
across the store

Dollar Share

The dollar share is the particular sales percentage of one thing of interest to the

corresponding parent total

Calculations:

Dollar Share = Dollar Sales (item) / Dollar Sales (Category)

Dollar Sales per Total Distribution

Sales per total point of distribution used to compare brand with numerous UPCs to brands
fewer UPCs

It indicates that how quickly your product sell.

To measure the sale rate and velocity.

Brands with greater number of UPCs will have stronger turns as more SKUs contribute to
overall sales.

Dollar Sales per Total Distribution = Dollar Sales / Total point of Distribution

48
 Percentage Dollar Change

Usually calculated as (this year – year ago) / year ago. Should not be used for measures

that are already expressed as a %

Average Unit Price (ARP)

The dollar spent by consumer on each unit of an item across all stores in a given market.

It is used to determine what the consumer is paying on an average for the product.

Average Unit Price (ARP) = Total Dollars / Total Units

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 5.1 Project Scope

Tools: Nielsen Scan Data

Market: Market A and Market B

Category: Yogurt

Preferred Time Period: 52 weeks

5.1.1 Business Questions:

How do the segment sizes and trends differ?

How does the manufacturer/brand strength differ?

How do the sizes of products differ?

How does the price point compare by segment?

How do the product features vary?

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 Total Yogurt Performance

Figure 21 : Total Yogurt Performance

 Market A has underperformed by -7.1% in 2017 compared to Market B by -2.5%

 In 2018, Market A is declining at much faster rate by -8.6% compared to Market

B by
-4.2%

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 Segment Overview

Figure 22: Segment Overview

• In Market A, Greeks owns 53% of $ share compared to Market B is 47%

• In Market B , Traditional owns a 29% of % share compared to Market A is 20%

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 Figure 23: Percentage Dollar Change

• Greek And Traditional are most declining in Market A by -8.6% and -8.1%

• On the other hand A/AF category has a substantial growth of 42.5% and 14.6% in
both market A and market B respectively

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 Manufacturers Trend

Figure 24: Manufacturers Trend

• In Market A fresh, 60% of the majority $ share own by Manufacturer 3 and

Manufacturer 2 vs 50% $ share in Market B

• Manufacturer 1 is declining the most by -33.8% in Market A compared to Market

B is -13.8%

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 Figure 25: Manufacture $ volume

• Manufacturer 6 has outpaced by 8.3% in Market B vs 5.1% by Private label in

Market A

• Manufacturer 1 has underperformed and there is a sharp decline in both Market A

and Market B

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 Product Features

Figure 26: Product Features

• Market A’s organic Yogurt business is 57% compared to Market B is 39%

• In Market A, organic Yogurt declining the most by -7.6% but compared to Market
B there is growth by 1.1%

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 Price Gap Analysis

 In Market A, KIDS and TRADITIONAL segments are very expensive compared

to Market B
 In Market A TTL A/AF segments are priced low compared to market B

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 Segment Overview

• In Market A, Greek Single Serve and Megapack owns 42.4% of $ Share

compared to 35.5% by Market B

• In Market A, 12.3% business comes from KID tube and KID Bev compared to
Market B is 8.3%

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 Figure 27: Traditional Dollar Share

• 17.5% of $ volume comes from TRADITIONAL Single serve and Megapack in

Market A compared to Market B is 22.1%

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5.2 Technical/Soft skills acquired
5.2.1. Technical Skills

Neilson Nitro:

Nielsen Nitro is a Interface to MS Office i.e. MS Excel. It pulls data from database. It is
third party tool. Each retailer has their own definition of category. It is used to do
comparative analysis

Excel Macros:

Macros are used to run a process more than once by reducing the efforts of retyping. Two
major time consuming processes were automated with the help of VBA which reduced
time utilization on manual process. Also it reduced the error dude to human intervention.

5.2.2. Soft Skills

Organizational and Time Management Skills

Timely reports of the internship had to be submitted on the given dates; it made organizing
and planning of the project much simpler and easier. Instead of starting the project when
the deadline is nearer, it was preferred to work on it on a continuous basis to ensure timely
completion and near accuracy in the development of the project. This approach assisted in
building organizational and time management skills.

Self-Reliance Skills

For the given project, it was important to work independently by becoming self-aware of
the nature of the problems and the challenges faced by the company. Therefore, it was
necessary to set priorities and make arrangements for the project to get done.

Ability to Think Critically

The descriptive nature of the project required critical and 360o thinking ability to gauge
the underlying inputs that were to be considered to understand the challenges of the
organization.

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6. Research on the challenges faced by the company
6.1. Problem identification

For the visualizations, there were certain requirements from the sales leadership which
were not readily available in the data source. The data was acquired from custom request
in Neilson Nitro tool

For the purpose of deep diving at brand and product level the data needed to be pulled from
scratch so a study had to be done first as to what is the purpose and how to go about with
it.

The data for the project is pulled from Neilson Nitro into excel file where certain formulas
are applied to fine tune the data. Initially this was a time consuming process, which was
optimized later by using excel macros.

6.2. Data collection from secondary sources

It is a huge struggle to collect data for analysis. Most of the analysis is done on reported
data. The data is pulled from Neilson Nitro, Neilson AOD, Retail link and Vision Chain.

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7. Results and recommendations
7.1. Results/Learnings
7.1.1. Results
The project provided precise information which was required by the stakeholders. The
insights also provided additional information that could help the sales leadership in taking
a decision.

The provide information at a very granular level. The users can use the filters to deep dive
and gain insights.

This project provides trends and performance of yogurt category. It can help the sales
leadership to take important business decisions.

7.1.2. Learning
In the three months of being in General Mills, I’ve learnt the basic approach of how
corporates function and manage projects. I’ve learnt various terminologies in category and
sales.

As I carried out most of my projects on Excel and Neilson it has increased my skill and
proficiency in using these software. I’ve also learnt how to read data and understand the
interpretation and the technique of converting a project into a story so that it can be
presented to the stakeholders who sometimes may not understand technical concepts.

7.2. Future scope

In the Project inclusion of promotion data like sales on promotion would cover a more broad
perspective of the scenario.

In the sales effectiveness dashboard a tab to view data at weekly level is in the pipeline.

The visualization can also be dynamic that they could be used across other regions as well.

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7.3. Conclusion
For the Category Project, the first step included to figure out a way to visualize data in such
a manner that insights could be gained from it. There was need for correct visualization for
improved visibility which led to the agility for the business to make quick decisions. It
follows a funnel approach it shows figures at an overall market level, brand level and even
at product level.

7.4. References
 https://www.generalmillscf.com
 https://www.generalmills.com/
 http://investors.generalmills.com/2016-interactive-
annualreport/HTML1/general_millsar2016_0012.htm
 http://www.nasdaq.com
 https://www.fda.gov/food/guidanceregulation/
 http://economictimes.indiatimes.com
 https://nrf.com/news/retails-biggest-challeng
 http://csimarket.com/
 https://whittakerassociates.com/industry-overview-food-processing/
 http://www.mbaskool.com/brandguide/food-and-beverages/5364-
generalmills.html
 https://www.ers.usda.gov/topics/food-markets-prices/processingmarketing/
 manufacturing.aspx
 https://nrf.com
 http://www.fooddive.com
 http://www.swotandpestle.com/general-mills-inc/
 Retail Shelf Allocation: A Comparative Analysis of Heuristic and Meta-Heuristic
Approaches

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