What did General Mills hope to accomplish with its April 1994 reduction in trade promotions and prices? What were the risks associated with these actions? How do you expect General Mills’ competitors to respond? How then should General Mills proceed?

A

GM hopes to reduce the price gap with private label manufacturers, regain some of the market shares and increase their profits.

The risk associated with these actions is that the competitors can follow the lead and reduce their prices as well. GM’s competitors can either lower their prices or preserve the same strategies. Then, GM should evaluate the benefits of the price cut and develop new strategies.

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Academic.Tips. 2020. "What did General Mills hope to accomplish with its April 1994 reduction in trade promotions and prices? What were the risks associated with these actions? How do you expect General Mills' competitors to respond? How then should General Mills proceed?" May 15, 2020. https://academic.tips/question/what-did-general-mills-hope-to-accomplish-with-its-april-1994-reduction-in-trade-promotions-and-prices/.

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Academic.Tips. "What did General Mills hope to accomplish with its April 1994 reduction in trade promotions and prices? What were the risks associated with these actions? How do you expect General Mills' competitors to respond? How then should General Mills proceed?" May 15, 2020. https://academic.tips/question/what-did-general-mills-hope-to-accomplish-with-its-april-1994-reduction-in-trade-promotions-and-prices/.

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"What did General Mills hope to accomplish with its April 1994 reduction in trade promotions and prices? What were the risks associated with these actions? How do you expect General Mills' competitors to respond? How then should General Mills proceed?" Academic.Tips, 15 May 2020, academic.tips/question/what-did-general-mills-hope-to-accomplish-with-its-april-1994-reduction-in-trade-promotions-and-prices/.

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