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Pillsbury Challenge

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Sarah Song

on 5 February 2013

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Transcript of Pillsbury Challenge

Presented By:
Nicholas T.
Sarah Song Pillsbury Challenge Case Study Pillsbury Challenge Decision -Guillen: Marketing
manager on the RGB
category at General Mills
Canada Corporation (GMCC)

-Guillen's challenge: To develop
a strategy that would lead to improved
business performance in the RBG category. -General Mills: world’s sixth largest food products manufacturer, based in Minneapolis MN. Parent company of GMCC General Mills & GMCC -(RBG) Refrigerated Baked Goods are the largest percentage of sales (62%) and are responsible for 75% of profit for the category. RGB From 2004-2006 the segment volume sales were flat, Ivan Guillen was brought in as the marketing manager to help grow the segment. Guillen felt confident he could develop a new marketing strategy on RBG with the new insights he gained. -(GMCC) General Mills Canadian Corp: is the second largest division within the international segment of GenEral Mills. RBG has two sub categories:
1. Chub – cookie dough wrapped in plastic
2. Ready To Bake Chub Ready to Bake vs. 4 Segments:
• Breakfast
• Baked goods
• Meals
• Snacks Target market 2004-2006 Guillen on Board Guillen's Thoughts: If he wanted to grow the RGB business, he would focus on growing refrigerated cookie segment! To Grow The Segment, Guillen suggested: What are the 4 Segments? Target market: mothers in their 30’s to 40’s that are busy with an active lifestyle, not stay at home moms with lots of spare time. -While the markets in Canada are similar to US, Canada could leverage the creative from the US market to immediately use to Canadian consumers. In 2005, cookie commercial "Kisses" was launched,
which was an ad adapted from US Common Research Used 1. Qualiatative test – purchase intent, questionnaires, survey
2. Quantative test – relationship between variables
3. Concept Test – image, price, preparations, benefits to see purchase intent
4. Evaluators Test – expensive, but best way to see if consumers indicate
purchase intent
5. Creative test – this is for testing the advertisements
6. In-Home Immersion- aimed to move the researcher into the world of the consumer
7. Discovery Workshops- these studies were collaborative and took outside the home Study Results 1. Scratch baking is the dominant method of baking cookies in Canda.
2. The top four purchase drivers are the same in both countries
-convenience
-taste
-easy and quick
-quality and kid-request purchase drivers
3. Both users and lapsed users perceive refrigerated cookie dough as convenient In-Home Immersion Visits and Discovery Workshops Team worked with TerraNova Market Strategies Inc to conduct two market research studies:
1. In-home immersions
2. Discovery workshop 1. Increase frequency of purchase
2. Increase household penetration
3. Combination of both In order to develop strategy, Guillen needed to gain better understanding of cookie consumer Hence, he seeked help from consumer insight manager, Lou Pasato Most Interesting: Candians are more likely to bake from scratch (33%) whereas US (22%) in the US. In Home Immersions: Aimed to move researcher into world of the consumer. (Goal is to observe rather than interview)
-conducted 4 in-home visits

Discovery Workshops: community-based gatherings, outside the home, that allowed a comfortable environment for naturally sharing thoughts and experiences.
-18 and 27 consumers for working session Key Findings of the In-Home Immersion Visits and Discovery Workshops 1. Mom's practical ingenuity really shone through in kitchen
2. Baking experience fed the senses and fueled memories of happy moments
3. Cookies were particularly special because they were made for sharing and giving
4. Brand Champions and lapsed users were similar but not in all ways
5. There were no concerns with the nutritional value of Pillsbury cookies
6. Pillsbury had an integral sense of magic and was considered to be a "shared secret" Questions he asked:
1. What consumers should the team target?
2. What should their brand messaging be?
3. How could they communicate this message in a relevant way to consumers in a way that would translate into increased sales? Case study Questions? 1. What are the challenges that Ivan Guillen faces in his role as the marketing manager of the RBG business?

2. What are the consumer insights? What types of business challenges can benefit from consumer insights? How are consumer insights obtained?

3. Given the key learnings from the usage and attitude study on page 6-7 of the case, 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 the potential targets (users, lapsed users and non-users). What are the implications identified from these maps?

6. What actions should Guillen and his team take? Our Answers 1. Ivan Guillen had to develop a strategy that would lead to improved business performance on his category. Since RBG( Refrigerated Baked Goods) was GMCC's fourth largest category and performance was low during 2004-2006, he wanted to understand what could be done to profitably grow the business

2. Consumer insights are learning based on consumer preferences, attitudes and behaviors. Business can benefit from consumer insights by analyzing results from research to better align their marketing strategies with consumer needs. Consumer insights are obtained either through quantitative research or qualitative research Continuation 3. The key learning from the usage and attitude study was that scratch baking is the dominant method of baking cookies in Canada. The team must conduct a research to gain a better understanding of consumer percetions, beliefs and feelings towards Philsbury RBG cookies

4. Guillen and his team conducted the in-home and discovery workshops so they could determine what aspects of the Pillsbury baking experience resonated the most with consumers

5. Develop Map

6. Possible suggestions for Guillen and his team could be to work strategically align with food channels such as food network, or other food networks that are aired in Canada to demonstrate the happy experience people feel from baking goods from scratch. Kimber Maderazzo
BSM 473
Marketing Management
SPRING 2013
Full transcript