Case Questions 1. What are the challenges that Ivan Gullien faces? 2. What are consumer insights? What types of business challenges can benefit from consumer insights? How are consumer insights obtained? 3.Given the key learnings from usage and attitude study, what are the corresponding implications for what actions the team should take? 4.Why did Guillen and his team conduct the in-home and discovery workshops? 5.Develop perceptual maps for potential targets(users, lapsed users, and potential users). What are the implications from these maps? 6.What actions should Guillen and his team take? WAC of Pillsbury cookie challenge Management Problem: The marketing manager of Pillsbury refrigerated baked goods (RBG) at General Mills Canada Corporation has to develop and present such marketing strategy to the senior leadership that will boost the performance of his category because:
His category has not been performing well for the last two years. There has been a constant sale without any growth between 2004 and 2006. Penetration ratio has been at low levels during the last five years. Refrigerated cookie had always been the most profitable product line of his category with 62 % of total RBG sales and 75 % of the total profit but the cookie performance has been constant at only one percent growth rate during the last three years and the penetration ratio has also declined during these three years.
Management problem conversion to research problem: The marketing manager Guillen contemplates the possible reasons of decline in cookie sales. He thought that consumer insights might have changed about taste, advertising, and current brand messaging of the Pills bury. Research problem: Guillen wants to see the difference between consumer markets of Canada and that of United States so that he can design his marketing strategy according to it to boost the sales as well as profit of his category.
Findings Interpretation None of previous marketing Marketing initiatives was not initiatives achieved 5% to 7% effective because it had not been designed according to the consumer insights. Pillsbury Refrigerated Cookies Although the more profitable The product line was fulfilling product line with 65 % of total the need of busy mothers but sales and 75% of total profit for now their insights might have the last few years, the growth changed. has been constant at 1% and penetration ratio has also declined. Usage and attitude study results Scratch baking is dominant in Scratch baking is convenient for Canada while refrigerated dough Canadian mothers while is dominant is US. refrigerated dough for US mothers. Convenience and taste are top in Cookies are convenient for Canada and in US Canadian and US mothers and have pleasant taste Canadian kids like more than Canadian kids find fun in cookies that of US do. Canadian mothers are much Canadian mothers are more concern about the quality quality conscious than that of US Lapsed users agree that RBG Lapsed users accept the cookies are convenient. convenience and easiness of cookies
Implications They should design marketing initiative after having the results of exploratory and confirmatory research. Modify the marketing mix after knowing the change in consumer insights.
RBG marketing strategy should target Canadian mothers with scratch baking.
RBG should maintain and improve the convenience and taste of cookies. RBG should target kids in their advertisement in Canada. RBG should demonstrate the good quality image. Lapsed users can be converted into users by knowing the reason leaving RBS cookies and then keep in mind during designing the marketing strategy. In-Home Immersion and discovery workshops
Practical ingenuity: Mothers want that cookie which is simple, rapid, realistic, inexpensive and pleasurable to the children Mothers enjoy baking
Mothers select cookies on the basis of their simplicity, practicality, and likeness to their children. Baking is pleasurable for mothers because they think that they are making their children happy by baking in kitchen
While designing a marketing strategy, keep in mind the desired criteria of mothers for selecting a cookie RBG should give demonstrations to their target customers by doing baking at superstore or supermarket in which mothers bake and enjoy the baking. It should be reflected in their advertisement as well. Children participate in baking Baking as easy as children can RBG should demonstrate the and eating the cookies help their mothers with simplicity of baking in its enthusiasm marketing strategy.
Brand champions are devoted Lapsed users are less conscious mothers to their children while about product decisions because lapsed users are less conscious. they do not have much awareness Pillsbury products are preferred Mothers believe that Pillsbury on readymade food. represent the true generosity and hospitality.
RBG’s marketing strategy should target lapsed users to educate them to make them devoted mothers and much conscious. Although Pillsbury requires some effort as compare to readymade food, but it does not show the true color of generosity. This should be reflected in marketing strategy. Cookie dough purchases were Mothers like to bake cookie The product distribution should impulsive. dough. be well planned and displayed clearly in stores so that mothers as well as children approach them easily. There is no sign that Canadian They are much concern about They should increase the brand others are price conscious. other attributes rather than image rather than decrease price. price.
Possible marketing strategies Strategy # 01 Product:
Develop such solution which is simple realistic, and rapid to the mothers and inexpensive and lovely to the children.
Pricing:
They should not decrease price at all even in occasions because the target mothers are not price conscious. The cookies should be competitive price rather than least price.
Promotion:
They can target those mothers who are busy with their families and conscious about the practicality, easiness, and quality of the cookies but not the price. They can also target those mothers who are much conscious about their hospitality. The brand message can be “mothers’ simple choice for their children” They can install billboards in the dense populated areas of mother between 30s-40s and near to all supermarkets. They can show mothers enjoying baking in their kitchen in their advertisement.
Distribution mix:
The display of the cookies should be approachable and prominent in the supermarkets so that they can easily get and purchase cookies because their purchases are impulsive most of the time. Therefore, the cookies can be displayed at the receptions of supermarkets. An image of mother baking in her kitchen can be printed on packaging of cookies. They can install point of sale displays in supermarkets and in residential areas. Mothers awareness campaign can be conducted door to door or in shopping centers or supermarkets.
Action # 02 Product:
Develop such solution which is simple realistic, and rapid to the mothers and inexpensive and lovely to the children.
Pricing:
They should not decrease price at all even in occasions because the target mothers are not price conscious. The cookies should be competitive price rather than least price.
Promotion mix:
They can target those working mothers who want to give their children good cookies in short time despite being busy in their professional life. The brand message can be “professional’s choice for children”. They can install bill boards near to offices. They can install point of displays outside the office buildings. Mothers’ awareness campaign can be conducted in offices which should be started from their own offices.
Distribution mix:
Supply cookies in all gas stations and tuck shops.
Action # 03 As children were the purchase drivers in Canada, therefore they can be target as well. Product mix:
Develop such solution which is simple realistic, and rapid to the mothers and inexpensive and lovely to the children.
Pricing:
They should not decrease price at all even in occasions because the target mothers are not price conscious. The cookies should be competitive price rather than least price.
Promotion mix:
They can target those fun loving children who like to bake with their mothers in kitchen. Therefore, they can persuade their mother to buy cookies. The brand message can be “Cookies for fun lover children”. They can install point of sale displays outside the school. School children awareness campaign can be conducted. Billboards near to schools can be installed.
Distribution mix:
Supply cookies in all the shops, superstores and mini stores in residential areas. An image of a fun loving child can be printed on the packaging.
Evaluation of Research Methodology GMCC conducts many types of consumer research according to the information needed: 1. 2. 3. 4. 5. 6.
Product trials with employees Focus group Concept tests Evaluators Creative testing Packaging tests
The consumer insights manager for RBG contemplated many aspects and decided to apply usage and attitude study (focus groups) on cookie consumers. Usage and attitude studies are consumer studies that observe the strengths, weaknesses, use, traits, and purchase pattern of a product. In these studies, consumers are asked many questions about the brand image of a product which help to understand the consumer insights and develop a profile for product user. After having this information and analyzing it, marketing strategy is developed to improve the product performance. The usage and attitude studies were conducted in order to find out the difference between the Canadian markets and US markets so that it could be found out the reason of constant growth in Canada despite targeted growth in US with the same marketing strategy.
The market research company MarketTools was hired by RBG team to conduct the usage and attitude studies. MarketTools “used screeners” to differentiate users of cookies as
Users, who had been the purchasers of refrigerated cookie dough for last 12 months Lapsed users, who had been purchasers of refrigerated cookie dough over 12 months ago Non-users, who have never been purchasers of refrigerated cookie dough
Screener is a tool to identify users, lapsed users, and non-users by asking a set of scripted questions. The research conducted by RBG is a focus group research in which populations sample is mothers of age 30s40s busy with their families. It is a simple random sampling also known as probability sample and convenient sampling which is the best sampling method in which you can measure error and every item from the frame has a known probability of occurrence.
Research Analysis
This case clearly illustrates the research problem because the RBG wants to see the difference between the Canadian and US mothers’ likes, dislikes, buying pattern, and perception about the cookie. In this research the hypothesis is stated and tested clearly which is: H0: The consumer demographics and families structure were not similar H1: The consumer demographics and families structure were similar. Although GMCC uses many types of research but it used usage and studies method because it gives the consumer insights which is required by the management of the company to develop a marketing strategy which will optimize their growth rate and penetration rate in Canadian target consumers. All conceptual definitions are steady with the theoretical frame work. The research problem and/or the hypothesis naturally flow from the frame work i.e. they wanted to see the difference between Canadian markets and US markets. Research findings support the hypothesis and framework and are interpreted within the context of the framework as Guillen wanted to know how he could increase the purchase frequency and/or market penetration of cookies? What consumers should be targeted? What should be the brand message? How could they communicate their brand message to motivate them and increase their sales volume?
