fixed the Financial Analysis and Expected Results

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just fix the Financial Analysis and Expected Results.I attached an example

Executive Summary:

Food trends constantly shape the behavior of consumers, people make choices

  • Elevator Pitch/Reason for the product. Also include the company and the product.
    • Market is saturated with self serve mug cakes. There is a hole in the market in the healthier version of this product

Market Analysis:

Betty Crocker Mug Treats is one of the products of General Mills Incorporated. General Mills Inc. is an American food company that sells a wide variety of products, from breakfast cereals, pizza, ice cream and snacks. The company’s products belong to the packaged food industry (Euromonitor International). Specifically, General Mills account for 1.15% in the bakeries and foodservice market segment (CSI Market). Other market segments in the industry include meals, snacks, ice creams, pasta, non-alcoholic drinks and sauces and condiments segment

A single serve treat, Betty Crocker Mug Treats attracts young professionals and college students living alone and who have microwave ovens in their place of residency. This particularly attracts the millennials and Gen Z, thus targeting individuals ages from sixteen to early thirties. The target market is composed of busy and preoccupied fast-paced individuals. They are in need for easy-to-prepare products. Having food that is easy to prepare will help to allocate more time for productivity. The mug treats can also serve for breakfast or just an impulsive craving in the evening (Koyenikan). This makes the product attractive to professionals and students who come in early to work or class and do work until midnight. Millennials are also known for patronizing products and services that are fast and convenient, thus making the product an attractive purchase for the market

Currently, Betty Crocker Mug Treats is only available in United States, Middle East, and Canada. The product’s market will soon expand with General Mill’s recent announcement to globalize the particular brand. The company’s extensive research findings encourage them to compete with similar product lines in Europe, Australia and Latin America (Wiber). This enables the company to have market presence in almost all regions: North and South America, Europe and Asia.

The Mug Treat is an incredibly delicious product that has a very high nutritional value. What is really fascinating about this product is how easy it is to prepare; they do not take more than minutes to be prepared in a microwave (“Betty Crocker™ Mug Treats”). It is of high nutritional value as well, it contains absolutely no cholesterol and minimal amounts of fat (“Betty Crocker™ Mug Treats”). It also is very rich in calcium and iron, which are essential to everyone’s health. As for how the presence of this product will positively affect the company, it is worth mentioning that the treats and snacks serve to transcend and close the gaps between cultures; thus, making it very important and beneficial on all aspects.

There are important and emerging trends that are expected to affect the growth of the market. Mug cakes are forecasted to penetrate distribution in cafes and restaurants. As compared to regular cupcakes which are prepared for 15 to 20 minutes, mug cakes are faster to prepare at approximately five minutes (Payne). This is why it will not be surprising if in the following years, mug cakes will be available in many cafes and dine-in cake shops. They can also serve as easy-to-serve desserts in restaurants. Innovation is also expected to affect the future of mug cakes in the industry. The consumer’s’ need for healthier food choices puts pressure on companies to differentiate mug cakes through innovation (Spencer). Companies can look into using organic ingredients or lessening the calories to fulfill the said need. Consumers are also now more environmentally conscious, thus also calling for companies to produce mug cakes in environment-friendly packaging (Open Ideo). This means the packaging can be biodegradable or recyclable so that there is less negative environmental impact.

Competitive Analysis

The market is saturated with a variety of brands selling single serve cake and brownie mixes. Duncan Hines is Betty Crocker’s number one competitor in the mug cake territory. The Duncan Hines brands sells similar products to Betty Crocker including recipes, cake mixes, brownie mixes, and frostings. As a brand, Duncan Hines focuses mainly on baking, while Betty Crocker has recipes and products for baking and cooking. Duncan Hines’ mug cake product is named “Perfect Size for 1”. On its website, Duncan Hines promotes its mug cakes to have no artificial preservatives, no artificial flavors and simple ingredients.

While Duncan Hines has the greatest market share and variety of products, many other brands have created their own version of the single serve mug cake. Ghirardelli created a single serve brownie as an addition to its chocolate and dark chocolate brownie mixes. The brand also created a trio of mug cakes including the Chocolate and Peanut Butter Mug Cake, the Classic White and Raspberry Mug Cake and the Chocolate Molten Lava Mug Cake.

Many smaller brands have mug cake options as well. However, in mainstream grocery stores, these secondary competitors are not as likely to be present. Secondary competitors include Dr. Oetker Chocolate Mug Cake, Weight Watchers Brownie Mug Mix, Sticky Fingers Mug Cake, Hershey’s Mug Cakes, as well as many other options.

Betty Crocker’s main competitor in the healthier mug cake market is Weight Watchers. Weight Watchers’ mug cakes has only 110 calories in one pack and is made with no artificial colors, sweeteners, preservatives, or flavors. While Weight Watchers does have a strong community, their ingredient list is high and is not an organic option. Each of Betty Crocker’s competitors in the single serve mug cake market have similar products. Each require minimal ingredients and market the quick, single serve aspect of their product to potential customers. None of Betty Crocker’s primary competitors have any particularly health mug cake options available.

Company Analysis

The Betty Crocker brand got its start in 1921. Betty Crocker was named the “first lady of food” as she became one of the most well-known female faces in America. Once a one-woman show, the company now employees hundreds and has its name in grocery stores across the country. Almost 100 years later, the brand is one of America’s top cooking instruction and recipe development platforms. Betty Crocker’s mission is simply to teach people to cook. Betty Crocker offers many products for its customers including cook books, recipes, baking mixes, and cooking inspiration.

The Betty Crocker brand is part of the larger company, General Mills. General Mills owns many other prominent food brands including Bisquick, Yoplait, Fiber One, Nature Valley and Wheaties. In 2018, General Mills, Inc. brought in $15.7 billion in net revenue.

Betty Crocker Mug Treats are single serve cake or brownie mixes. Hungry customers looking to indulge simply pour the mix into a mug, add water, stir it up and put it in the microwave for a minute or two.The brand offers a variety of flavors like Triple Chocolate Cake with Fudge Frosting, Chocolate Caramel Cake with Caramel Frosting and Blueberry Muffin Mix with Cream Cheese Glaze.

SWOT Analysis


  • Strong online presence with website, social media and mobile app
  • Well-known brand for almost 100 years; iconic, red spoon logo
  • Large amount of products available


  • Could become stalled on innovation or stuck in older ways because it is such a well-known, established brand


  • Ability to be a trendsetter for foods and recipes
  • Co-branding opportunities with other brands
  • Create healthier recipes to follow health trends


  • High dependence on grocery and food trends
  • Saturated market with a large number of competitors making single serve mug cakes
  • A reduced interest in cooking homemade meals, busy lifestyles that don’t allow time for cooking

Business Objectives

  • · The company aims at increasing the market share of 2-percent of the hand held breakfast in the first year, which means increasing sales revenue to 8 million dollars. In this regard, the key priorities of the management is competing efficiently, driving the differential growth platforms and restructuring its growth portfolio.
  • · The company aims at bringing balance between top and bottom line growth to increase the sales revenue from Betty Crocker Mug Treats.
  • · Project break-even in 2019. General Mills Inc. aims to use its Holistic Margin Management plan, that is expected to generate greater savings in 2019. The solid focus of efforts in developing Betty Crocker Mug Treats is to continue driving e-commerce sales that flowed 50% in 2018.

Marketing Strategies: Aisha

The goal of this project is to target and serve busy professionals and students who are health conscious, but still want a sweet breakfast in the morning or dessert at night.

Action Plan: Aisha

Our product is Mug Treats Plus,a microwavable mug cake made with organic, sustainably sourced ingredients that’s low carb and high protein. It takes less than 5 mins from to prepare and eat, and is great for busy professionals and students looking for a healthy dessert/sweet option. Our starting flavors are going to include Blueberry Muffin and Coffee Cake for breakfast, and Chocolate and Vanilla for dessert. We will expand flavors into seasonal if the initial rollout is successful. The price for a pack of four servings will be $5.99, due to the higher quality ingredients, like almond flour, and this product being a more “premium” offer in Betty Crocker’s line of mug cakes. Key aspects of the packaging include the use of green and recycled materials, to capitalize on the American’s growing importance on products being environmentally conscious. It will be available for purchase in grocery stores, convenience stores, and online. In the grocery stores, it will be placed in healthy’ aisles as a endcap, and near checkout in stores like Whole Foods & Sprouts. For the convenience stores like CVS, Walgreens, and Rite Aid, it will be placed near checkout and on shelves near other sweet snacks to entice a last minute buy. Online, it can be found on Amazon alongside other Betty Crocker products, as well as through a subscription/App Delivery. Thrive Market and FreshDirect are two grocery delivery sites that only offer healthy and organic options to its customers, while goPuff is an app that delivers snack food and focuses on convenience. Both apps align with our products goals of health and convenience. To promote this product, we’ll use targeted ads on social media sites like Facebook, Instagram, and Twitter. We’ll also sponsor Instagram posts for popular lifestyle influencers. We will also partner with Buzzfeed’s Tasty division, with produces top down cooking videos. They have 14 million subscribers (Youtube) and they regularly have their videos go viral. There will also be more traditional advertising with commercials on TV, as Betty Crocker has the capital to afford the expense. To promote sales during our initial launch, our customers will be offered a free mug from the store if they purchase 3 boxes of Mug Treats Plus in one transaction. We will also have a photo contest on Instagram and Facebook, where contestants will use our product in creative ways, like making a 3 tiered cake or using beautiful decorations. The most creative or “Insta-worthy” post wins a 3 month subscription to Thrive, and three honorable mentions will win a Betty Crocker gift basket with cooking utensils, Mug Treats Plus, and an apron.…

Financial Analysis and Expected Results:

  • The market share of the hand held breakfast market in the first year in 2 percent
  • Break-Even Projection (Sales dollars) = Fixed Costs Contribution Margin (McLaney & Atrill, 2013)

Contribution Margin = Selling Price – Variable Costs

=34.5% of the net sales

Net sales = 15.7billion

Fixed Costs= 2752.6 Million

Break-even = 2752.6 0.345



Financial Appendix:

Table 1: Pro-forma Income Statement at $6 Price



Research and Development: RELEASE


Proposed Price

Investigation Costs



Less Retail Discount (25%)

Development Cost



Price To Retail

Discount Rate Per Year



Less Wholesale Discount (20%)

Total Research and Development

$ 219.1



Source: (“General Mills, Inc. – Financial Information”, 2019)

Annual Costs and Sales (Forecast) 2019

Producers Price Per Unit


Variable Costs Per Unit


Fixed Costs Per Year


Retail Sales Forecast (Ml$)


Industry Sales Per Year(Units)


Company Market Share (Units)


Company Sales Per Year (Units)


Source:(“General Mills, Inc. – Financial Information”, 2019)

Income Statement Before Release 2019

Sales Revenue (Ml)


Variable Costs


Fixed Costs





Cumulative Profits


Net Present Value (Ml$)


Source:(“General Mills, Inc. – Financial Information”, 2019)


Betty Crocker. (2019). About us. Betty Crocker. Retrieved from

Duncan Hines. (2019). Products: Perfect size for one. Duncan Hines. Retrieved from…

General Mills Annual Report. (2018). Fiscal 2018 annual report. General Mills, Inc.

Retrieved from…

General Mills, Inc. – Financial Information. (2019). Retrieved from…

Ghirardelli. (2019). Trio of Ghirardelli Mug Cakes. Ghirardelli. Retrieved from…

CSI Market. General Mills Inc. n.d. 15 April 2019.…

Euromonitor International. General Mills Inc in Packaged Food. May 2018. 15 April 2019.…

Koyenikan, Ayisha. Mug Cakes: The Perfect Breakfast for Time-Constrained Consumers. 19 September 2018. 15 April 2019.…

Loria, Keith. Do consumers want a mug cake mix? Pinnacle will find out. 3 March 2017. 15 April 2019.…

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