Analysis Of Cheerios

1310 Words 6 Pages
Thailand, the fourth populous country in ASEAN with more than 67 million population in 2014, is the second target market for General Mills’ Cheerios to enter. With such density of 132 people per sq. km, Thailand market brings a great potential to offer. To measure the culture in Thailand, Hofstede’s cultural analysis was used. In a glimpse, Thai culture looks similar to Indonesian, but not identical. Thailand shows a high power distance, but less power distance than Indonesia, and that explains the rigid hierarchy in that country. This also could be explained as the effect of a monarchical regime in Thailand. Thailand, just like Indonesia, is a highly collectivist country where relationship is the core issues and strictly binded to family. …show more content…
Cheerios provides a healthy way of breakfast because the main ingredient is wheat and a low sugar food that could reduce diabetes. Because of that, there should be no problem occurred in standardising the main ingredient and no need to adapt any core product adjustment. However, due to the differences in culture, some adaption might needed for the actual product. Cheerios is identical with yellow color. In Thailand, yellow represents Buddhism, which is the biggest religion in that country. Sticking with the current yellow color might boost the selling cause people attracted to buy the cereal for the color reminds them to their belief. In Indonesia, on the other hand, in Jakarta, people will put yellow flag in front of their house to inform people someone is passed away. Clinging with the yellow color might reduce their potential sales in Jakarta region because of the custom. Orange color in Indonesia represent success, healthiness, and family’s warmth. This color might suit to cheerios where the message they want to convey is healthy breakfast, and Indonesia is a collectivist country and a feminine-masculine country which mean in order to maintain their health, they focus on purity in food. The size of one cheerios box also need to be reduced. The common size of Thai and Indonesian cereal is 330 grams, meanwhile for cheerios in the home country is 18 oz or equivalent of 510 grams. By reducing the size to the market common size, it could possibly increase margin of the company. Special case for Indonesia, General Mills need to obtain halal certification in order to seize Indonesian market where Islam is the majority belief and registered the product to BPOM. The best way to distribute cheerios in both market is under nestle, because nestle is the market leader for both market, thus nestle knows more information in deeper knowledge for both market. General Mills and Nestle have maintain

Related Documents