Pillsbury Cookie Challenge

Problem Statement Management Problem Ivan Guillen, the marketing manager of Pillsbury refrigerated baked goods (RBG) category at General Mills Canada Cororation is faced !ith the challenge of developing and presenting a new marketing strategy to the leadership team" #he lan should aim at

increasing sales volume and household enetration" Refrigerated cookie had al!ays been the most rofitable roduct line of his category !ith $% & of total RBG sales and ' & of the total rofit but the cookie erformance has been constant at only one ercent gro!th rate during the last three years and the enetration ratio has also declined during these three years" Guillen seculated ho! the segments erformance could be imroved" *e !anted to understand !hether there !as an issue !ith the taste, advertising or current brand messaging of the Pillsbury"

Research roblem Guillen !ants to research the difference bet!een Canadian and +nited tates consumer  markets" #his !ould aid him in designing the marketing strategy to boost the sales as !ell as rofit of his category"

Background General Mills -

*ead.uartered in Minneaolis, Minnesota

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$th largest food roduct manufacturer 

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/arious Brands that General Mills have are 0 Betty Crocker, Progresso, Pillsbury, Green Giant and Cheerios

-

-

It !as comosed of three distinct oerating segments 0 -

+" Retail ($1&)

-

International (2$&)

-

3ood ervice

ome of the ma4or distributors !ere afe!ay, 5almart and Costco

General Mills Canada Cororation -

6stablished in the year 217 and !as the second largest division of General Mills

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GMCC !as the market leader in the Canadian Market !ith annual sales of +8 $$ Million"

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#he Canadian division !as slit into 7 units !hich are breakfast, baked goods, meals and snacks !hich !as further sub divided into 2% other categories"

-

+ni.ue roducts develoed for the Canadian market !ere 9atmeal cris male nut cereal and i::a o snacks"

Pillsbury Refrigerated Cookies -

Cookies !ere most rofitable in the RBG category

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Reresented $% & of total category

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#!o formats ; Chub, Ready to bake

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Guillens ideas on Imrovement of cookie Performance -

Increase fre.uency of urchase

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Increase household enetration

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Combination of both

Analysis Findings

Previous

Interpretation

Implications & Actions

marketing Ineffective marketing lan =esign marketing lan after 

initiatives could not achieve

as

it

!asnt

designed conducting e>loratory and

the target < & to '& annual according to the consumer  confirmatory category gro!th

insights of Canada

research

Canada"

Pillsbury Refrigerated ookies

•

roduct #he

Profitable

roduct

line

!as Modify the marketing mi>

line < $ & of total fulfilling the need of busy mothers

•

sales '&

•

categorys rofit changed" Constant gro!th at

of

but

total e>ectations

2& for last fe! years

no! might

their  have

in

*ousehold

•

enetration declined !sage and attitude study results

cratch baking is rimary in Canada

($&)

cratch

baking

!hile convenient

for

is

RBG

marketing

Canadian should

target

refrigerated dough referred mothers !hile refrigerated mothers is +" 9nly %%& bake from dough for + mothers"

strategy Canadian

!ith

scratch

baking" #his !ould re.uire

scratch in +" cognitive aroach" Convenience and taste are Cookies are convenient for  RBG should maintain the to

urchase

drivers

in both

Canada and in +

Canadian

and

+ convenience and taste of 

mothers and have leasant cookies"

taste ?ids lay a bigger role in Canadian kids find fun in RBG should target kids in driving urchase in Canada

cookies (baking and tasting)

their

advertisement

in

Canada" #his !ould re.uire affective aroach"

@uality of cookie dough is Canadian mothers are more RBG should demonstrate not

valued

as

highly

in .uality conscious than that

the good .uality image"

Canada, as it is in + of + Aased users also agree Aased users accet the #he

reasons !hy users

that RBG cookie dough are convenience and ease of  lased could be researched" convenient

baking cookies using cookie

#hose could be used in

dough

designing

the

marketing

strategy to convert them" #his !ould re.uire conative aroach" In"#ome Immersion and discovery workshops

Mothers !ant that cookie Mothers select cookies on #he !hich realistic,

is

simle, ine>ensive

raid,

mothers

for

and racticality and likeness to cookie

leasurable to the children Mothers en4oy baking

the basis of their simlicity,

desired

children" Baking

criteria

of 

selecting

a

should

be

in

the

incororated made

marketing lan" the family RBG should

areciate the mother"

demonstrations target

give to

customers

their  by

creating baking counters at suermarkets

in

!hich

mothers bake and en4oy the baking"

It

reflected Children baking

articiate and

eating

cookies

in Making baking easy so that the children

can

hel

should

be

in

their  

advertisement as !ell" RBG should demonstrate

their  the simlicity and ease of 

mothers !ith enthusiasm

baking

in

its

marketing

strategy" Aased users !ere not sure Aased users are unsure of  RBGs marketing strategy about the roduct

roduct decisions because should target lased users they do not have much to educate them"

Pillsbury

roducts

referred

on

food"

a!areness are Mothers believe

that  s Pillsbury re.uires some

readymade Pillsbury reresent the true generosity and hositality"

effort

as

comare

to

readymade food, this makes the mothers feel good" #his should

be

reflected

in

marketing strategy i"e" oy Cookie

dough

!ere imulsive"

urchases Mothers like to bake cookie dough"

of baking for family" #he roduct distribution should be !ell lanned and dislayed clearly in stores so that mothers as !ell as children

aroach

easily"

Significant $ifferences from !sage and attitude study between !S and anada

them

0 Fun thing to bake with the kids  The kids like to make them Fun activity with the kids Kids like to eat them Is a high quality cookie dough

50 42 2 42 !0 #anada 41 2" $% 47 !7 2 17

3rom this it is clearly observed that kids are given much more imortance in Canada !hen it comes to baking cookies" #heir choice is very imortant" *ence, the advertising and targeting strategies in anada should have high involvement with kids%

Addressing the problem statement •

ategory line etension' s scratch baking is most referred in Canada, roduct

line be e>tended" #he ne! roduct to contain different sachets !ith searate •

ingredients !hich can be mi>ed and then baked to give the feel of scratch baking" (argeted advertising' ds secific to the Canadian market should be develoed" #hese should focus on kids and the 4oy mothers get from seeing the family hay" #he research suggests that cookie baking is very affective in nature" It is also highly imulsive urchase" *ence, this should be taken into consideration !hile designing the ads" 6motions like !armth should be highlighted"

Action Plan /alue Proosition Really simle and convenient to bake Cookie =ough for the mothers" Results in instant gratification of the family" Aoved by children the most" #arget egment Household mothers, Active Women and Children

Mothers !ho dedicated homeerience !ith their kids" ?ids to be targeted so that they influence the buying behaviour of their arents" #argeting trategy •

#o target the mothers !ho are busy !ith their families and conscious about the racticality, easiness, and .uality of the cookies but not the rice <

Install billboards in the dense oulated areas and near to all suermarkets" ho! mothers en4oying baking in their kitchen in their advertisement" o #o target the !orking mothers !ho !ant to bake good cookies for their children in o

•

•

•

•

•

short time desite being busy < Install oint of dislays outside the office buildings o Mothers a!areness camaign in offices o Baking !orksho on a 3riday in the office o #o target the fun loving children !ho like to bake !ith their mothers in kitchen0 ell Pillsbury cookies in the school canteen o chool children .ui::es can be conducted !ith samle acks as ri:es o =istribute samles in suermarkets and malls using the D=ough BoyE o #he dislay of the cookies should be aroachable and rominent in the suermarkets" Packaging can have t!o variants ;  n image of mother baking in her kitchen o  n image of a fun loving child baking cookies o ulying cookies in all gas stations and tuck shos from !here !orking moms can sho"

Communication Message •

DAife is too short to bake a bad cookie" avour family time !ith Pillsbury cookie dough"E