Presentation on theme: "General Mills New Product Introduction Marketing Plan"— Presentation transcript:
1General Mills New Product Introduction Marketing Plan Locker Number 632Section 202 Team 4Jay CurranJames GaskinG.T. HollettSteve HolleyKurt KnaubMarty Wick
2Project ObjectiveTo create and initiate market planning for two shelf-stable, single-serve product lines or product line extensions that will generate substantial incremental revenue over a three-year sales period
3} } } } Process Outline Phase I Phase II Phase III Phase IV Concept EvaluationPositioningConcept CreationSalesProjectionsConcept Creation andEvaluationGapAnalysis2 Concepts ChosenSuccessful Product LaunchGap AnalysisNew SegmentsExisting ConceptsAttribute ImportanceNew Market Space}BrainstormingConcept SelectionPsychographicsAsset CompatibilityGap AnalysisProfitability}Consumer FeedbackConsumer FocusPackagingPriceMarketing}Potential BuyersMarket AnalysisMarket InfluencersPurchase EstimationRevenue Projection}Gap Analysis
5Macroeconomic Data U.S. Age Demographics Average age of population is increasingOver 65 group grew by 14.7M people from 1990 to 1999Kids and the baby boomer generation form two of the fastest growing segments.Source: 2000 Census Bureau Report
6Macroeconomic Trends U.S. Ethnic Demographics Hispanic and Asian-American ethnic groups have the highest growth rates in the nationHispanic: 34.5%Asian-American: 35.9%Despite the fact that Hispanics are only 11% of population and Asian Americans are 4%, the growth of these ethnic populations influences U.S. cultureTotal Pop: 270MAsian-American and Hispanic foods represent a fast growing segment due to both population and cultural influenceSource: 2000 Census Bureau Report
7Macroeconomic Trends U.S. Labor & Households Almost 2/3 of U.S. Households do not have a “stay at home” adult to allocate their time to meal preparationWomen account for 46.5% of current workforceTotal U.S. HH: 105MTotal U.S. HH: 105MAsian-American and Hispanic foods are a growing segment due to both population and cultural influenceSource: 2000 Census Bureau Report
8Macroeconomic Trends U.S. Labor & Households Fast growing segment of food marketplace.Analysts currently estimate nutraceutical market at $15 Billion.1Currently, “nutrionally-improved” foods account for more than 78% of growth in 35 food categories.2Growth attributed to large population of aging baby boomers and awareness of “age” disorders (e.g., osteoporosis)Popular in the following forms:Beverages (OJ, fruit juice, smoothies, spritzers, etc.)Cereal“Meal-replacements” (shakes, snacks, etc.)January 1, 2000 “On your plate,: top food issues for your meals.”
9Macroeconomic Trends Summary Statistical Trends and ObservationsTakeawaysDual income and single person households are increasing and now account for 2/3 of all U.S. householdsThere are fewer households who have a “dedicated” family member for meal preparationHispanics and Asian-Americans are the fastest growing segment of the U.S. and now account for 15% of the total populationOpportunities exist in the fastest growing ethnic segmentsThe average age of the population is increasing (baby boomers). The “kid” segment is also one of the fastest growing.There is a potential need for products which target specific food attributes of the baby boomers and kidsWomen now account for 46.5% of the workforce and is increasingAn opportunity may exist for lunch meals which target working women.
11Microeconomic Data U.S. Food Expenditure Trends U.S. consumers are spending less of their disposable income on food during the late 1990’sIn the past 10 years, supermarkets have experienced a two-fold increase in shoppers who consider a grocery store the primary source for a pre-made dinner (18% of total population)Supermarkets are increasingly the primary source for pre-made, inexpensive dinners.Source: “Meal Solutions”, Food Marketing Institute, 2000
12Microeconomic Data U.S. Food Consumption – Lunch at Work Workplace lunch facts:Bring Lunch from home 45% At least once per week20% EverydaySkip Lunch completely 31% Sometimes11% At least once per weekNearly half of American workers are looking for lunch solution to take to workSource: “Brown Baggin’ It”, American Demographics, January, 2001
13Microeconomic Data Meal Preparation Time As consumers’ lives have become increasingly hectic, the length of time dedicated to meal preparation has decreasedTime dedicated to lunch (both preparation and consumption) has decreased to only 15 minutesAmericans have less time to spend on meal preparation with lunch being particularly hectic for consumersSource: “Changing Cooking & Dining Habits”, 2000
14Microeconomic Data U.S. Food Attribute Importance Surveys indicate the top four food attributes for making a purchase are taste, nutrition, product safety, and price.Very ImportantSomewhat ImportantTaste89%8%Nutrition7125Product Safety20Price6927Storability4638These attributes serve as potential drivers for consumer purchase behaviorSource: “Nutrition”, Food Marketing Institute, 2000
15Microeconomic Data U.S. Food Attribute Importance Further research indicates health importance for consumers is typically fleetingThe food industry is known to take advantage of this fact through loose nutritional claims of low fat or low sodium productsA Food Marketing Institute (FMI) survey found the most definitive health changes were additions to their diet in the form of fruits and vegetables rather than eliminating certain unhealthy aspects in their current meal purchasesWhile nutrition was identified as a potential driver for food consumption, consumers often don’t make their purchase decisions based on this attributeSource: “Nutrition”, Food Marketing Institute, 2000
16Microeconomic Data U.S. Food Consumption - Snacks A significant percentage of Americans snack:93%50%40%Snack food sales continue to grow. Sales topped $30 billion inSource: “What’s in Store”, International Dairy Deli Bakery Association, September, Press Release, Snack Food Association, July 19, 2000 (most recent available data)
17Microeconomic Data Nutraceutical Trends Fast growing segment of food marketplaceAnalysts currently estimate nutraceutical market at $15 billionCurrently, “nutritionally-improved” foods account for more than 78% of growth in 35 food categoriesGrowth attributed to large population of aging baby boomers and awareness of “age” disorders (e.g., osteoporosis)Popular in the following formsBeverages (OJ, fruit juice, smoothies, spritzers, etc.)Cereal“Meal-replacements” (shakes, snacks, etc.)Source: January 1, 2000 “On your plate,: top food issues for your meals.”
18Microeconomic Data Summary Statistical Trends and ObservationsTakeawaysSupermarkets are a primary source for shoppers who are looking for a pre-made dinnerThe market for single serve, shelf-stable products should expandA significant percentage of American workers skip lunch or eat out regularlyAmerican workers have a need for a quality tasting, convenient prepared lunch mealTime spent for lunch (and other meals) has become increasingly shortLunch convenienceNutrition is identified by consumers as an important food attribute, but has less impact in their actual purchasing decisionHealth attributes for meals can be subtle. Taste is a true driver for food consumptionSnacks food sales are growing a represent a significant portion of a typical consumer’s consumptionSnacks represents a robust and growing segment of the market
20Psychographics Survey Output ResponseAverage Work Day?ThoughtsMeal FreqMeal SizeFood TypeEat Where?DescriptionTake Lunch?1Constant mtgs and computer workNice to get away2XMed – LgStarch w/meat & sauceL: workD: homeL: quick, easy, hotD: quickest to makeYes – Cheaper;Take starch w/meat & sauce2Sporadic workEat something healthly and filling3xMedHealthy & FillingD: home/outL: saladD: chickenNo – Company café is cheaper3High stress, very busyQuick w/no hassleLargeRice, Noodles, Pasta. No meat.L: deskD: dining room tableL: rushedD: relaxing, aloneTake white rice, leftover pasta, salads4BusyQuickest4-6xSmallChicken breasts, fruits turkey, vegetablesL: homeL: speedD: speedDon’t – Takes too long to prepare5Constant work at DeskBreak from sitting at computerSandwich or Hot Cafeteria Meal & Snacks in betweenL: cafeteriaL: relaxedD: fast preparation with good tasteNot usually because workplace has a cafeteria6On the road, Sales calls all dayGet me on to the next appointment4xFast Foods on the road, Hearty meal at homeD: usually homeD: full courses, meat & veggieNo – almost always go to a drive through
21Consumer Needs Analysis Moment-In-Time Decisions - Summary Convenience is a key factor if the consideration set includes any single serving mealsMeal & snack sizes away from the home tend to be small due to hectic schedulesAfter convenience is evaluated, taste drives a meal or snack decisionHeath was an important consideration, but was often neglected at the time of purchase, in favor of convenience & tastePrice will always influence meal & snack purchasesSource: These takeaways are derived from consumer interactions. These include surveys and discussions about general and eating behaviors. The survey is included in the Appendix.
23General Mills Portfolio Evaluation Process Portfolio OverviewNeeds AnalysisBrand ReviewApproachHigh-level product/brand mappingRefined mapping of purchase driversCategorize offerings under existing brandsTakeawayDetermine focus opportunitiesUnderstanding of gapsIdentify opportunities to further leverage brands
24Portfolio Overview Core Demographics and Dayparts Served AdultsBacOsChex MixBuglesPop SecretNature ValleyYoplaitProgressoHaagen DazsRTE CerealsBowl AppetitLloyd’s BBQOld El PasoGreen GiantPillsburyPillsburyB.C. dessert mixesMorningNoonNightB.C. HelpersGinos/TotinosFamilyFruit SnacksDunkaroosSqueezitsTime of day and lifestage factors, while not drivers, help isolate driversGo-GurtKidsUNDERSERVEDLunch hour generally underserved by existing offerings
25Needs Analysis Taste, Flavors and Nutrition * For the senses (taste)BacOsChex MixBuglesPop SecretHaagen DazsB.C. dessert mixesGinos/TotinosRTE CerealsBowl AppetitDunkaroosSqueezitsLloyd’s BBQOld El PasoPillsburyStandardB.C. HelpersEthnicFruit SnacksProgressoGo-GurtNature ValleyYoplaitGreen GiantFor the body (nutrition)UNDERSERVEDGeneral Mills delivers very little ethnic flavor* Critical drivers when holding price and convenience constant
26Brand Review Leverage Opportunities General OccasionsBrandConsumer MeaningsReady-mademealsMeal Ingred. or AccompanimentSnacksBetty CrockerQuality, baking and cooking, wholesomeAttempting use with Bowl AppetitExisting offeringsOPPORTUNITYPillsburyEasy, quality, bakingGreen GiantVegetables, convenientNot clear fitOld El PasoMexican, qualityHaagen DazsIndulgent, ice creamProgressoPremium, soupBig G and sub-brandsBreakfast, variety of messagesNumerous opportunities to leverage powerful brand names in various formats
29Competitive Analysis Consideration Set Broad OptionsConsumers’ meal consideration sets include traditional restaurants and fast food outlets.More Narrow OptionsConsumers narrow their options to include only items available in the supermarket.Specific OptionsFor shelf-stable products consumers are choosing from options within the category.RestaurantsShelf-StableGrocery DeliFrozen FoodsFast FoodConsideration sets allow marketers to analyze competitive options and segment consumers based on purchase behaviors
30Competitive Analysis Grocery Store Competitor Characteristics Cup o’ NoodlesTop Ramen}Limited VarietyWater BasedLess ExpensiveLimited Kids OptionsDry Shelf-StableIt’s Pasta AnytimeKid’s KitchenRagu Express}Largely Soups and Italian DishesMore Kids OptionsWet Shelf-Stable}Large VarietyOil BasedBetter TastingTargets DinnerMore ExpensiveUncle Ben’s Rice BowlsMarie CallendarLean CuisineFrozenProducts launched in the grocery store require positioning against the specific attributes of its competitive consideration set
31Competitive Analysis Lunch, Dinner and Snack Offerings For the senses (taste)Michelina’s SnacksStouffer’sMarie Callender’s BowlsEZ MacKid’s KitchenSwansonIt’s Pasta AnytimeMichelina’sRagu ExpressStandardEthnicChef BoyardeeCup NoodlesTop RamenSmart Ones BowlsUncle Ben’s Rice & Noodle BowlsLean CuisineHealthly Choice Bowl CreationsFor the body (nutrition)Very few ethnic products; Very few premium snack products* Critical drivers when holding price and convenience constant
32Competitive Analysis Summary Statistical TrendsStatistical Trends and ObservationsTakeawaysShelf-stable products geared towards men and children is an under developed segment; large growth potentialMarketplace is not meeting the growing demand for ethnic flavorsMore competitive Italian segment will offer lower profits and smaller growth opportunitiesSingle-serve snacks baked fresh is under developed segment; large growth potentialFew ethnic offerings available: Chinese, Indian, Mexican, ThaiMany competitors already offer shelf-stable Italian productsMinimal single-serve, quick-bake products available as shelf-stableFew products targeted towards children and men in shelf-stable category
34Concept Creation Methodology UnbiasedBrainstormingDriven ByCollected DataFilteredConceptsWinningConceptsWinning ConceptsLogic FilterMetric FilterSample output:Nutraceuticals – senior-oriented foods, woman-oriented foodsConvenience – Cereal bars, drinkable meals, lunch-on-a-stickEthnic fare – Chinese bowls, Mexican meals, Italian pastas, “Around-the-world” dishes for kidsSnack consumption – cereal treats, time-of-day sustenance (numerous small snacks which replace meals), popcorn treatsLunch at work – refreshing fruit and yogurt, energy bars, room-temperature mealsConcepts:Progresso ProntoSilver ServingsFiesta Ench-a-lottasBetty CrockerSingle BakesPillsbury Shepherds PieOriental ExpressBetty Crocker Single BakesFiesta Ench-a-lottasLogic and detailed analytics used to filter concepts in timely fashion
36Progresso Pronto Concept Features You have enjoyed Progresso Italian soups for years. Now, in addition to the world’s best soups, Progresso brings you a number of quick, hearty meal bowls to warm your heart and satisfy your hunger with the tastes of Tuscany.FeaturesPersonal microwave-able bowlReady to heat mealsItalian favorites as Roasted Herb Chicken Pasta and Arrabiatta Spicy Pasta Casserole.Old country herbs and spices that you have come to expect from Progresso.Includes a packet of parmesan cheese to be sprinkled over the top of the meal before serving- adding a delightful addition to the old style recipes.
37Progresso Pronto Potential Line Extensions Brand Extend the Progresso soup lines to create the following meals:Hearty Home style Tomato Pasta, Tomato Basil Pasta Pasta Dinner, Roasted Chicken Italiano with Rice.BrandThe Progresso brand represents “great food, simply prepared,” and is the perfect image to develop a line of hearty Italian-influenced shelf-stable meals.The existing following of the Progresso brand will provide an immediate launch pad for Progresso Pronto. It is important to note that the Progresso line successfully markets quality shelf-stable meats in their products. This will be critical in helping consumers bridge the gap to shelf-stable meats.
38Progresso Pronto Needs Addressed The primary needs addressed with this product offering are the following:General Mills offers a variety of dry cereals, snack bars, and other packaged goods designed for morning or evening consumption. However, with the exception of “Bowl Appetit,” GM does not have a lunchtime offering.The idea behind this product allows for General Mills to tap into the “Lunch-time-on-the-go” arena and also to leverage the core competencies of General Mills in a new area.Competitors already have an Italian segment developed in the shelf-stable (e.g. Classico and Chef-Boyardee,) ready to eat category, but GM does not currently have an offering.Progresso Pronto gives GM the opportunity to expand the existing consumer perception of the Progresso brand from quality soups with an Italian flair to mean “Homestyle Italian” products. As such, Progresso Pronto segment (shelf-stable Italian) represents a premium product while the competition focuses mainly on the children’s market. (e.g. Chef-Boyardee)
39Progresso Pronto Communication Barriers to Competition The promotion behind Progresso Pronto will differentiate the product from Progresso Soups by showing how they are a meal in a ready-to-eat bowl and compete with the other ready-to-eat, microwave-able products such as Stouffer’s frozen offerings and Campbell’s Chunky. However, the advertisements will note that Progresso Pronto is sold in a ready-to-heat and eat container, as opposed to the traditional tin can. Barriers to CompetitionWhile there are few options available to adult customers in the wet shelf-stable segment, the Progresso brand brings an element of superb quality and taste that is difficult for other companies (even Campbell’s) to achieve.Concerns/ChallengesCannibalization of existing Progresso soups. Progresso Pronto will have to be differentiated in recipe, serving size and presentation from the existing cans of Progresso soup. Additionally, as noted above, competition from companies such as Campbell’s could come in the form of their soup lines or new “Supper Bakes.”Potential to damage existing Progresso brand equity.The Progresso brand is a strong insulator that will allow General Mills a defense from much of the competition.
40Oriental Express Concept Features The dynamic flavors of Oriental Express will take you back to the storied history of the ancient Asian Continent. General Mills brings Asian cuisine to your table in a convenient, ready-to-heat and eat single serving package. You enjoy all of the international flavor that you love with the added convenience of not having to leave your desk or home.FeaturesThrough this channel, product offerings will come in a “wet” form such as noodle or rice with vegetables and meat. Also, there could be a small container of crunchy noodles to serve as a topping encased on the top of the package.The offering will come in packaging with a plastic lid for aesthetic purposes that will cover the true “canned” top, which will be removed for the microwave process.
41Oriental Express Potential Line Extensions Brand Some of the possible offerings would be the following:Chicken Lo-Mein, Pepper steak and rice, Orange Chicken and noodles, Thai Spring Noodles with Chicken, etc.Complimentary products such as Asian noodles, garnishes and teas.Brand“Oriental Express” will be a new brand. It wouldn’t be appropriate to have this concept fall under the Betty Crocker brand or other existing brand umbrellas. As opposed to leveraging an existing brand, creating the “Oriental Express” brand will be expensive. However, in light of the fast-growing popularity of Asian food, the long-term benefits of developing a new brand can be significant.
42Oriental Express Needs Addressed Communication The primary needs addressed with this product offering are the following:General Mills offers a variety of dry cereals, snack bars, and other packaged goods designed for morning or evening consumption. However, with the exception of “Bowl Appetit,” GM does not have a lunchtime offering.The idea behind this product allows for General Mills to tap into the “Lunch-time-on-the-go” arena and also to leverage the core competencies of General Mills in a new area.With consumer preferences trending toward Asian food (Chinese, Thai, etc.), General Mills can capitalize on the trend with this new product. CommunicationThe promotion behind Oriental Express will introduce full-flavored, Asian food into the shelf-stable market. The advertising will show how the individual servings are a meal in a microwave-able, ready-to-heat bowl.The advertising will differentiate Oriental Express from the already available and popular noodle-based dry products in this category. (e.g. Nissin, Cup-o-Noodles)There is a possibility of co-marketing with the “Iron Chef” television program as a way of tapping into the popularity of this Asian Cooking program. For example, using the “Iron Chef” show to advertise the concept and generate interest
43Oriental Express Barriers to Competitors Concerns/Challenges There is little opportunity for GM to quickly erect barriers. The best opportunity exists only if GM can spend substantially to create strong consumer associations between the brand and “quality” Oriental food.Concerns/ChallengesWe look at this offering to encounter the following barriers:The cost of creating and marketing a new brand instead of marketing under the Betty Crocker name, or Pillsbury name.Encountering brands such as “La Choy” and “Chun King” which already have a head start on GM.Other frozen food product offerings from Healthy Choice, Lean Cuisine, Uncle Ben’s that feature “oriental-style” entrees that, again, have a lead over GM concerning products in the market.Other wet offerings that exist (Chef Boyardee, Campbell’s, etc.)
44Fiesta Ench-a-lottas Concept – Features – Your kids will love these delicious bites of flour tortillas, filled with meats and cheeses and surrounded by Old El Paso’s rich enchilada sauce. These single-serve meals bring the flavors of Mexico to your school home with the great taste you’ve come to expect from Old El Paso. Just pop them in the microwave and enjoy your meal. Features –Single-serving ready-to-heat bowls of enchiladas style meals.Bite-sized flour tortilla pockets surrounded by Old El Paso’s popular enchilada sauces.Pockets contain one of three fillings: beef, chicken or cheese.Ench-a-lottas are packaged in a plastic bowl with a vacuum-sealed pull-top lid and a plastic cover to be used while heating in the microwave.Served in 7.50 oz. bowls to appeal to children or light eaters. (Potential future packaging:15 oz packages for adults seeking full meal.)
45Fiesta Ench-a-lottas Potential Line Extensions Brand New flavors can be established to address different consumer segments/needs:a. Spicy/ Hot- to appeal to adult customersb. Green Chili- rich sweet flavorc. Taquitos- similar concept with crunchy taco chips to add after cookingBrandThe Old El Paso brand is perfect for launching this new line of Mexican specialty meals. Families love Old El Paso as evidenced by the fact that it is the number one selling brand of Mexican foods. The Ench-a-lotta name will allow GM to enter a childrens’ market, thereby growing the existing customer base to include a whole new group of lifetime customers.
46Fiesta Ench-a-lottas Needs Addressed Communication The primary needs addressed with this product offering are the following:Allows GM to meet growing demand for ethnic flavors in children’s marketsShelf-stable, single-serve products are convenient for storage and quick and easy to prepare.Consumer demand for meat flavors and sustenance in shelf-stable, single-serve productsCommunicationThe promotion behind Fiesta Ench-a-lottas will target the childrens’ market with catchy cartoon-based fun advertisements. Additionally, a web-site will be created allowing kids to join (with parental approval) the “Wanna-lotta” kid’s club!The advertising will show how the individual servings are a meal in a microwave-able, ready-to-heat bowl.
47Fiesta Ench-a-lottas Barriers to Competition Concerns/Challenges Leveraging the brand of Old El Paso, with the marketing and distribution of General Mills, gives GM an excellent opportunity to create barriers within consumers minds’ similar to those established by ConAgra with the Chef Boyardee offerings.ConAgra does not currently have a strong Mexican brand.Old El Paso’s brand serves as an initial barrier to competitors like ConAgra, with the ability to deliver a wet, shelf-stable offering. Heinz, with the acquisition of Delimex, holds knowledge of Mexican frozen food market and distributes what is considered by some to be a higher-quality product. However, no competitor currently offers a shelf-stable, single-serve Mexican product. Concerns/ChallengesThe primary challenge with delivering on market needs and delivering a successful offering will be in effectively selling the quality, flavor and safety of shelf-stable meat products. As noted, Con Agra has been extremely successful with the Chef-Boyardee line of pasta-based wet meat products. A principal goal we have is to educate the customers as to the Fiesta Ench-a-lotta offering as a substitute for current incumbent offerings in the children’s wet shelf-stable category.
48Pillsbury Sheppard’s Pie ConceptThis delicious stew of premium vegetables and hearty beef is a meal-in-itself. Pillsbury Sheppard’s Pie is great for lunch or dinner. Either way, it is sure to satisfy your hunger. Topped off with a flaky Pillsbury crust just like grandma used to make, our Sheppard’s Pie is sure to be just right when you need a quick, yet wholesome meal.FeaturesSingle-serving ready-to-heat bowls of Sheppard’s Pie.Pillsbury Sheppard’s Pies are packaged in a plastic bowl with a vacuum-sealed pull-top lid and a plastic cover to be used while heating in the microwave.Served in 15 oz packages for adults seeking satisfying lunch or light dinner.
49Pillsbury Sheppard’s Pie Potential Line ExtensionsNew flavors can be established to address different consumer segments/needs:a. Spicy – using curry powder to satisfy those seeking variation available in Englandb. Chicken and Dumplings – Pillsbury dumplings and chicken within thick gravyc. Beef Stew – Beef, vegetables, and potatoes sans crustBrandThis product will be marketed under the well-established Pillsbury brand name which most American households associate with fine breads and crust brought to them by the Pillsbury. Pillsbury is well known and will help to reduce education costs and reduce customer’s concerns over quality.
50Pillsbury Sheppard’s Pie Needs AddressedThe primary needs addressed with this product offering are the following:There is a market opportunity for bold, masculine flavors in the shelf-stable, single-serve category. Additionally, there is consumer demand for meat flavors and sustenance in shelf-stable, single-serve productsGeneral Mills offers a variety of dry cereals, snack bars, and other packaged goods designed for morning or evening consumption. However, with the exception of “Bowl Appetit,” GM does not have a lunchtime offering- Pillsbury Sheppard’s Pie satisfies that need.The idea behind this product allows for General Mills to tap into the “Lunch-time-on-the-go” arena and also to leverage the core competencies of General Mills in a new area.CommunicationFocus on “food like grandma made” and Pillsbury dough boy.Pillsbury Sheppard’s Pie will be communicated to males looking for easy meals to prepare. A satisfying meal with meat, potatoes, and crust will be stressed to garner interest.
51Pillsbury Sheppard’s Pie Barriers to CompetitionPillsbury brand serves as an initial barrier to competitors like Campbell’s Soups and Dinty Moore stews. Additionally, the Pillsbury name has the ability to lend appeal to a ready-to-bake bread-based offering.Neither Campbell’s or Dinty Moore have a brand able to provide fresh crust- a fact that helps to differentiate our Sheppard’s Pie.Concerns/ChallengesA primary challenge will be introducing Sheppard’s Pie into the shelf-stable category. Customers may have concern for how shelf-stable the product is with its high number of ingredients.The challenge with the product is to clearly show how it is different from soups on the market as well beef stews already available.A key will be to produce a crust that will bake in the microwave in a short amount of time.
52Betty Crocker Silver Servings ConceptBetty Crocker’s Silver Servings bring healthy options to the table! Silver Servings are great tasting meals with both the convenience seniors demand and the dietary ingredients their doctors’ recommend. Betty Crocker’s Silver Servings are the wholesome meals that seniors are accustomed to brought to you by the brand that has earned your trust over the last 75 years.FeaturesSilver Serving meals will be packaged in small 7.5oz. personal portions that will be just the right amount for a senior meal. Additionally, Silver Servings will be introduced in accordance with the FDA’s stated senior health issues in mind. We will offer the following three attributes:Low fat, low cholesterol (for hearth disease)Low Sodium (for high blood pressure)Balanced meal (with calcium, iron, protein, etc.)Traditional, non-spicy flavors such as Chicken Noodle Casserole and Hearty Beef Stew will be featured.
53Betty Crocker Silver Servings Potential Line ExtensionsA franchise line of Betty Crocker Silver Servings might include breakfast meals, snacks and a greater variety of flavors, including the possibility of popular specialties from the past 50 years of American cuisine.BrandThe Betty Crocker label is the perfect brand to reach the aging baby boomers. The brand’s popularity was founded in the post-war era when many of today’s seniors were highly impressionable youngsters. Additionally, today’s seniors were the foundation of the success of the Betty Crocker Cookbooks and, as noted on the Betty Crocker website, the cookbook is “now in its 9th edition (and) has sold more than 30 million copies, making it one of the all-time best-selling cookbooks in the world.” Betty Crocker Website,
54Betty Crocker Silver Servings Needs AddressedThe primary needs addressed with this product offering are the following:The diet-specific needs of the aging Baby Boomer generationMealtime convenience desired by senior citizensSmall portions preferred by seniorsCommunicationThe promotional campaign will be twofold.It will include a “push” marketing campaign celebrating the joint product development of recipes and ingredients with a respected gerontological program such as The Gerontology Institute and the American Association of Retired People (AARP.) The push strategy would be to speak with physicians to have them recommend Silver Servings as a healthy option for their aging patients. Additionally, there will be a “pull” marketing campaign through traditional media outlets. The traditional media will target both the “younger” seniors who are responsible for their own meal purchases as well as the middle-aged children who make many of the meal decisions for senior parents. Both of these campaigns will feature the taste, health and convenience of Betty Crocker Senior Servings.
55Betty Crocker Silver Servings Barriers to CompetitionThe strength of the Betty Crocker name with seniors will be of great benefit when protecting our market. It is difficult to imagine any of the heritage brands being as strong with this demographic.Concerns/ChallengesCompetition could come from other single serve lines already in the shelf-stable market. Of particular note is the Healthy Choice line of products. While there is substantial competition, the Betty Crocker name will be a major foundation in growing the Silver Servings franchise and serve as a powerful force in developing a loyal following.Some consumer research has shown that cost is the primary driver when seniors are making meal choices. If the research proves accurate, this price-sensitivity could put undue profit pressure on the Silver Servings line.
56Betty Crocker Single Bakes ConceptNow it’s easier than ever to enjoy fresh-baked Betty Crocker cakes. Betty Crocker introduces Single Bakes – quick bake treats that offer you a wholesome reward with minimum effort. Just pop a cake in the microwave, watch it rise, then spread on Betty Crocker’s delicious icying or spread. It’s just like made from scratch – but its ready whenever and wherever you are!FeaturesCakes are sold in three-packs. Each cake package contains a sealed cover containing Betty Crocker icing or spread and a plastic spread utensil.Cakes are moist and fresh tasting upon microwaving.Flavors include chocolate cake or yellow cake (each with chocolate icing), strawberry, coffee, German chocolate and more.
57Betty Crocker Single Bakes Potential Line ExtensionsExtensions are possible to cookies, cinnamon rolls and more, but such extensions likely will take place under the Pillsbury brand. Thus, extension opportunities take place more from a market and packaging knowledge standpoint.BrandThe Betty Crocker brand is the natural home for this concept. The existing brand will keep product introduction costs to a minimum and provide a natural advertising platform.
58Betty Crocker Single Bakes Consumer Needs and PositioningThis product is expected to address the need for:a. A wholesome reward for “all the hard work that women do”b. Consumer demand for tasty snack food with less guilt CommunicationFocus on rewarding women for their hard work. The quality of the product will allow overcome the communication to women, thus allowing for male consumption as well.The offering will offer convenience to consumers. As an alternative to actually baking the product, a buyer can pick up a package of pre-prepared cakes for consumption at home, at the office or on the go.
59Betty Crocker Single Bakes Barriers to CompetitionBetty Crocker is a strong brand that resonates with consumers. The brand equity in baked dessert goods will allow General Mills to create a perceived value proposition that is difficult for competitors to replicate.Concerns/ChallengesPrimary concern lies in delivering a product that delivers what consumers expect from Betty Crocker (at the time of consumption).Must create processes and packaging to gaurantee freshness at the time of consumption.Must also educate consumers to avoid storing, transporting or preparing the product in a manner which could reduce quality.
61Consumer Concept Evaluation Progresso Pronto Respondent #PriceTasteUniquenessPurchaseIntentValue12435678910Total Avg.220.127.116.11Scoring: 1=worst to 5=bestRelatively positive consumer responses, though not perceived as being very unique
62Consumer Concept Evaluation Oriental Express Respondent #PriceTasteUniquenessPurchaseIntentValue12354678910Total Avg.18.104.22.168.52.4Scoring: 1=worst to 5=bestRelatively low consumer scores overall. Responses indicate product, however, is somewhat unique
63Consumer Concept Evaluation Fiesta Ench-a-lottas Respondent #PriceTasteUniquenessPurchaseIntentValue13425678910Total Avg.4.14.03.74.5Scoring: 1=worst to 5=bestProduct very well. Consumer’s value score particularly positive for kids-oriented offering.
64Consumer Concept Evaluation Pillsbury Shepherd’s Pie Respondent #PriceTasteUniquenessPurchaseIntentValue12435678910Total Avg.22.214.171.124.02.3Scoring: 1=worst to 5=bestLow consumer scores.
65Consumer Concept Evaluation Betty Crocker Silver Servings Respondent #PriceTasteUniquenessPurchaseIntentValue12345678910Total Avg.2.73.23.02.8Scoring: 1=worst to 5=bestConsumer scores are relatively lowNOTE: Concept should be retained for further consumer testing. Initial tests did not contain reasonable representation from target consumer group.
66Consumer Concept Evaluation Betty Crocker Single Bakes Respondent #PriceTasteUniquenessPurchaseIntentValue13542678910Total Avg.4.04.53.74.34.2Scoring: 1=worst to 5=bestScores are relatively strong. Believe sample uniqueness scores do not accurately represent differential quality from competition
67Consumer Concept Evaluation Bases Matrix Average Rankings PriceTasteAverage UniqueAverage Purchase IntentAverage ValueOverall Average RankingProgresso Pronto126.96.36.199.7Oriental Express188.8.131.52.4Fiesta Ench-a-lottas4.14.04.5Sheppard’s Pie184.108.40.206Betty Crocker’s Single Bakes4.34.2Silver Servings3.02.82.9Scoring: 1=worst to 5=best
68Concept Evaluation Metric Filter Metrics Utilized For Concept EvaluationThree Dimensions (Axes) On (1 – 5 Scale)Asset CompatibilityBrandDistribution CapabilitiesProduction CapabilityProfitabilitySustained RevenuesBarriers To EntryGrowth PotentialMarket ShareUnserved Needs / Gap AnalysisCurrent Company PortfolioCompetitive PortfolioDemographic TrendsPsychographic TrendsProfitabilityGap AnalysisAsset
69Concept Evaluation Metric Filter Weighting of Three Attribute DimensionsWeighting of attributes determinedby level of uncertaintyMeeting un-served needs and determining brand fit is more certain (in terms of success) than profitabilityAll attributes critical to success ofproduct launch25%Profit35%AssetCompatibility40%Unserved Needs
70Concept Evaluation Metric Filter – Asset Compatibility Progresso ProntoSilver ServingsFiesta Ench-a-lottasSingle BakesOriental ExpressPillsbury’s Shepherd’s PieBrand Scorecard345612Production FacilitiesDistribution PotentialTotal Asset Score10111617Scoring: 1=worst to 6=best(Forced Rankings)Fiesta Ench-a-lottas and Betty Crocker Single Bakes leverage existing General Mills assets
71Concept Evaluation Metric Filter – Gap Analysis Progresso ProntoSilver ServingsFiesta Ench-a-lottasSingle BakesOriental ExpressPillsbury’s Shepherd’s PieCurrent Portfolio325461Competitive PortfolioDemographic TrendsPsychographic TrendsConsumer FeedbackTotal Gap Analysis Score14172126198Scoring: 1=worst to 6=best(Forced Rankings)Betty Crocker Single Bakes best capitalizes on an unserved market need.
72Concept Evaluation Metric Filter – Profitability Progresso ProntoSilver ServingsFiesta Ench-a-lottasSingle BakesOriental ExpressPillsbury’s Shepherd’s PieGrowth Potential325461Market SizeProduct Launch CostsBarriers to EntryCompetitionTotal Profitability Score15192327129Scoring: 1=worst to 6=best(Forced Rankings)Betty Crocker Single Bakes are a premium offering and holds the greatest profit potential. We anticipate Fiesta Ench-a-lottas will generate high profits due to its high pricer per ounce ratio.
75Supporting Research Mexican Food – Kid Consumption Kids 10 to 13 – “tweens” – favor four ethnic varieties over American cuisine 1Heinz acquired Delimex Foods in August, 2001, to target school lunch marketWeaker brand name than Old El PasoChineseMexicanJapaneseItalianAmericanSource: 2001 Tweens in America Report, Wharf Research and Center for Culinary Development, November 6, 2001
76Supporting Research Cakes Consumption Recognized trend in UK toward snack marketCakes meet consumers needs for lighter and more wholesome sweet snacks (relative to most confections)Opportunity to leverage Betty Crocker brand is growing in snacksSource: “Cakes: Out of the tin and into a lunchbox”, Grocer, p. 53, October 27, 2001
78Product Positioning Methodology PlacementPackagingThe product positioning was based on the five critical factors: Product Placement, Packaging, Marketing, Consumer Attributes, and Price.PriceMktg.Consumer
79Product Positioning Fiesta Ench-a-lottas Ench-a-lotta’s packaging is similar to Chef Boyardee’s. It will be microwave- ready after the metal pop-top is removed.Old El Paso branding will be prominently displayed to leverage the significant brand equity already enjoyed in the Mexican food category.Ench-a-lotta’s will be offered in a 7.5 oz size.Ench-a-lotta’s are targeted at children and teens. The product will be placed in the supermarket where microwave-ready kid’s single-serving segments are found.Competitors include: Chef Boyardee, Kid’s Kitchen, Ragu ExpressPackagingMktg.SegmentPricePlacementThe marketing campaign for Ench-a-lottas will use Old El Paso’s established brand equity.Advertising through print will communicate the authentic Mexican flavor as well as the ease of preparation. Ench-a-lottas will be shown as fun and tasty way to eat lunch at home or at school.Ench-a-lottas will be priced competitively with single serving Chef Boyardee offerings, at $1.29 for a 7.5 oz. container.The target market segment for Ench-a-lottas will be children from the age of 5 to 15. Research and surveys show that Mexican food is popular with kids.
80Product Positioning Betty Crocker Single Bakes Betty Crocker Single Bakes will be offered in 3 packs. The product will contain a topping, a utensil and a single serving cake. It will be microwave ready after the top is taken off, and the plastic cover for the bowl is pulled back.The Betty Crocker branding will be prominently displayed to leverage it’s significant brand equity.Betty Crocker Single Bakes will be placed in the snack aisle in the supermarket. Competitors include: Sara Lee, Hostess, Otis SpunkemeyerPackagingMktg.SegmentPricePlacementBetty’s Single Bakes will be priced competitively with snack alternatives such as candy bars. The suggested price point is $2.69 for the 3 pack offering.The marketing campaign for Single Bakes will emphasize the wholesome quality and flavor of the Betty Crocker products. Single Bakes will provide the tastiness of Betty’s best offerings with the ease and convenience of a prepared food.The target market for Betty Crocker’s Single Bakes is working women who are looking for a better solution than a candy bar between meals. Market research has shown that this segment is seeking an alternative to “junk food” for snacking.
82Sales Projection Methodology Summary View External FactorsIdentification and analysis of comparable launchesReview of existing markets and market sharesAnnual ProjectionsYear 1Year 2Year 3Year 2Year 3Anticipation of competitor and market dynamicsInternal FactorsEvaluation of GM marketing and distribution
96Competition - Wet Product; Brand Company Features – Prep Flavors Meal Target – Market MessageIt’s Pasta Anytime;ClassicoBordenPasta & SauceWetShelf-stableMicrowave15.25 oz$2.99/unitTomato-BeefTomato-mushroomLunchDinnerWomenAge 18-49“harried cooks”Kid’s KitchenHormelCartoon charactersCheezy Mac ’N CheeseBeefy Mac ‘N CheeseMini Beef RavioliPizza Wedges – PepperoniSnackSchool age children“Feed Their Bodies, Feed Their Minds”Ragu ExpressTraditional TomatoClassic Meat FlavorSweet Tomato & Garlic“Real Pasta, Real Sauce, Real Fast!”EZ MacKraft
97Competition - Frozen Product; Brand Company Features – Prep Flavors MealTarget – Market MessageMarie Callender’s BowlsConAgraTasteFrozenMicrowave$2.99/unitLemon herb chickenCountry Style Beef Pot RoastTurkey Breast Medallions & StuffingLunchDinnerHealthly Choice Bowl CreationsHigh nutrition$2.39Chili w/corn breadChicken teriyaki; riceColonial style chicken pieTuna casseroleChicken breast strips w/mac & cheeseHealth consciousEasy lunchtime solutionUncle Ben’s Rice & Noodle BowlsMars Inc.98% fat freeRice or noodles, meat, vegtablesMicrowave/ OvenChiliLemon chickenChicken fajitasThai-curry chickenThai-peanut chickenJambalayaContemporary individualsWomen 25-40“Satisfy Your Passion for Good Good.”“Now The Hottest Thing in the Kitchen is in the Freezer”
98Competition - Frozen Product; Brand Company Features – Prep Flavors MealTarget – Market MessageSmart Ones Bowls;Weight WatchersHeinzLow calorieLow fatFrozenMicrowaveLunchDinnerLean Cuisine; Stouffer’sNestle USAHealthyRoasted Chicken w/Lemon Pepper RettuciniFiesta Grilled Chicken“Do something good for yourself.”Stouffer’sServing Sizes of 1, 2, 5 or 9 FrozenMacaroni & CheeseFrench Bread PizzaOver 50 varieties“He’ll Love The Taste. You’ll Love That It’s So Good For Him.”SwansonVlassicBoneless white meat fried chicken breastHungry-Man Boneless White Meat Fried Chicken BreastFried Chicken dinnerFun Feast All White Meat Fried Chicken Kids Dinner“Make New Memories with Swanson”
100Competition - Dry Product; Brand Company Features – Prep Flavors Meal Target – Market MessageCup NoodlesTop RamenNissinSoupAdd hot waterBeefChickenCajun ChickenMushroom ChickenEtc.LunchSnackFantasticSpice HunterNear EastKnorr
101RestaurantsCompetitive trends associated with this industry are as follows:1. Trend towards “quality” fast food chains.2. Disparity in eating “out” within in gender.3. Ethnicity becoming a strong influence in restaurant industry.4. Income also a factor concerning restaurant dining.1) Future of fast-food: Becoming more “upscale”.1Boston Market: “take the meal home” concept“Meal solutions”: ready-to-eat meals at restaurants or groceries51% of meals bought at restaurant taken home (of which, 2.1% come from “fine restaurants”.2) Men more likely to eat at a restaurant versus women.2(men = 4.6 meals “out”per week, women = 3.8 meals per week).Additionally, men = 22% of all meals “eaten out”, vs. 18% for women.Women consume 14.8 “privately-prepared” meals per week vs. men at 13.9 meals
102Restaurants 3) Ethnicity playing large role in restaurant trends.3 More preferences and locations for “ethnic-themed” restaurants, especially among “urban-professionals” and “internationals”.Most popular ethnic offerings:ThaiJapaneseSouth AmericanCaribbeanMinority groups tend to spend more on food away from home.3Hispanic adults lead all minorities in lunch and dinner (37% vs. 33% for African-Americans and Asians).Additionally, tend to order out more.Hispanic and African American females are more often “on-premises” patrons than their male counterparts.4) Influence of Income.3Individuals with higher household income tend to dine out more.Managerial and professional occupation households posted the highest per capita and average total spending away from home ($3,003 and $1,112, respectively).Consumers with household income of $75K or more eat an average of 4.9 meals commercially prepared vs. 3.2 for incomes of $15K or less.
103Comparative Parameters ConceptComparative Price-pointComparative Ounce SizeProgresso Pronto$1.8916 oz.Oriental Express$4.1712 oz.Fiesta Ench-A-Lottas$1.297.5 oz.Sheppard’s Pie$2.168 oz.Betty Single Bakes$2.5514 oz.Silver Servings$3.328.5 oz
104Consumer SurveyThe following slides contain survey questions posed to consumers. This is a portion of the line of questioning we followed to understand consumer perceptions of existing and conceptual products
105Oriental Express Product: Evaluation: The idea behind this product allows for General Mills to tap into the “Lunch-time-on-the-go” arena. This product offering will come in a “wet” form such as noodle or rice with vegetables and a meat. Also, there could be a section of dry noodles to serve as a topping encased on the top of the package. The offering will also come in packaging that has a plastic lid for aesthetic purposes that will be removed for the microwave process. Flavors would include Chicken Lo-Mein, Pepper steak and rice, Orange Chicken and noodles. This item will come in 12 oz packaging and will retail for $4.17.Evaluation:Please rank this concept on a scale of 1 to = very low thru 5 = very high_____ Price_____ Taste_____ Unique_____ Purchase Intent_____ Value
106Fiesta Ench-a-lottas Product: Evaluation: Old El Paso, the world’s favorite brand of Mexican food, has been delivering the great tastes of Mexico to your home since Now their letting you enjoy a Mexican meal wherever you go with Fiesta Ench-a-lottas. You’ll love these delicious bites of flour tortillas, filled with meats and cheeses and surrounded by Old El Paso’s rich enchilada sauce. These single-serve Mexican meals satisfy your hunger at work, at school or at home with the great taste you’ve come to expect from Old El Paso. Just pop them in the microwave and savor the flavor. Flavors include beef, chicken or cheese. Ench-a-lottas are packaged in a plastic bowl with a vacuum-sealed pull-top lid and a plastic cover for microwaving. Served in 7.50 oz (for children or light eaters) or 7.5 oz packages (for adults seeking full meal). The retail price will be $1.29.Evaluation:Please rank this concept on a scale of 1 to = very low thru 5 = very high_____ Price_____ Taste_____ Unique_____ Purchase Intent_____ Value
107Betty’s Shepherd’s Pie Product:The Pillsbury Dough Boy has just gotten back from holiday in jolly’ole England and has decided to share with his friends in America the Old World delicacy known as Shepherd’s Pie. This delicious meal-in-itself goes great for lunch or dinner, either way, it is sure to satisfy you hunger. It is loaded with vegetables, meat, and potatoes, but most importantly, it is topped off with a fresh Pillsbury crust just like grandma made when you were little. Just pop them in the microwave and savor the flavor. Each single-serving bowl contains either beef or chicken. Other flavors include chicken and dumplings and beef stew. The package consists of a plastic bowl with a vacuum-sealed pull-top lid and a plastic cover for microwaving. Served in 8oz packages for adult seeking a satisfying lunch or light dinner. The retail price is $2.16.Evaluation:Please rank this concept on a scale of 1 to = very low thru 5 = very high_____ Price_____ Taste_____ Unique_____ Purchase Intent_____ Value
108Betty Crocker Silver Servings Product:One recent study reported “Many older people, because of chronic medical problems, may require special diets: for example, a low-fat, low-cholesterol diet for heart disease, a low-sodium diet for high blood pressure, or a low-calorie diet for weight reduction. Special diets often require extra effort, but older people often settle for foods that are quick and easy to prepare, such as frozen dinners, canned foods, lunch meats, and others that may provide too many calories, or contain too much fat and sodium for their needs.” Thus, Betty Crocker’s Silver Servings will bring healthy and wholesome staple meals that seniors are accustomed to such as Chicken Noodle Casserole and Hearty Beef Stew. Four lines will be offered: Healthy Low fat, low cholesterol (for hearth disease), Healthy Low Sodium (for high blood pressure), and Healthy Low Calorie (for weight reduction). Served in 10 oz packages for $3.33.Evaluation:Please rank this concept on a scale of 1 to = very low thru 5 = very high_____ Price_____ Taste_____ Unique_____ Purchase Intent_____ Value
109Betty Crocker Single Bakes Product:“Nobody knows baking like Betty Crocker because for over 75 years, she has delivered trusted advice and quality products to millions of people, making life easier and ever more delicious.” Betty is now preparing some of her most popular pastries for you so that you can enjoy wonderful cakes, brownies and muffins even when you don’t have time to bake them from scratch. The single serving treats will be exactly what you need to get you from meal to meal during a busy day, or they can fill that craving for high quality, rich taste you have late at night. Heat these fresh quick-bake snacks in the microwave and add the pre-made frosting for a fast and tasty snack. Flavors include cinnamon roll, brownie, strudel, chocolate cake, German chocolate cake, lemon cake, vanilla cake and angel food cake. Served in 6 oz packages that retail for $0.99.Evaluation:Please rank this concept on a scale of 1 to = very low thru 5 = very high_____ Price_____ Taste_____ Unique_____ Purchase Intent_____ Value
110General Survey How would you describe your average work day? 2. What goes through your mind when you decide to eat away from work/school?3. How would you describe your eating…Frequency:Portions:Type of food:
111General Survey 4. Where are you usually when you eat… Lunch?:Dinner?:5. What kind of words come to mind with …6. Why do (or don’t) you take lunch to work?7. What type of food do you take to work for lunch (if you take your lunch?).