Presentation on theme: "General Mills New Product Introduction Marketing Plan Section 202 Team 4 Jay Curran James Gaskin G.T. Hollett Steve Holley Kurt Knaub Marty Wick Locker."— Presentation transcript:
General Mills New Product Introduction Marketing Plan Section 202 Team 4 Jay Curran James Gaskin G.T. Hollett Steve Holley Kurt Knaub Marty Wick Locker Number 632
Process Outline Phase I Phase II Phase IIIPhase IV Potential Buyers Market Analysis Market Influencers Purchase Estimation Revenue Projection } Concept Evaluation Positioning Concept Creation Sales Projections Positioning Concept Creation and Evaluation Gap Analysis Two Concepts Chosen Successful Product Launch New Segments Existing Concepts Attribute Importance New Market Space } Brainstorming Concept Selection – Psychographics – Asset Compatibility – Gap Analysis – Profitability } Consumer Feedback Consumer Focus Packaging Price Marketing }
Sales Projection Methodology Summary View Identification and analysis of comparable launches Review of existing markets and market shares Evaluation of GM marketing and distribution Anticipation of competitor and market dynamics External Factors Internal Factors Projections Year 1Year 2Year 3
Sales Projections Detailed View Total Potential Buyers Competitors Relative Product Type Brand Strength Price Correction Factors Distribution Power REVENUES Competitor and Market Dynamics Identification of Potential Buyer Segments Market Influencers Identification Of Direct Competitors (Market Analysis) Revenues (Units & Pricing)
Concept 1 Old El Paso: Fiesta Ench-a-lottas Your kids will love these delicious bites of flour tortillas, filled with meats and cheeses and surrounded by Old El Pasos rich enchilada sauce. These single-serve meals bring the flavors of Mexico to your school or home with the great taste youve come to expect from Old El Paso. Just pop them in the microwave and enjoy your meal. Concept Mexican Food Convenience Kids Market Fun Food
Product Positioning Fiesta Ench-a-lottas Packaging Mktg. Segment Price Placement Ench-a-lottas are targeted at children and teens. The product will be placed in the supermarket where microwave-ready kids single-serving segments are found. Competitors include: Chef Boyardee, Kids Kitchen, Ragu Express Ench-a-lottas packaging is similar to Chef Boyardees. 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-lottas will be offered in a 7.5 oz size. The marketing campaign for Ench-a- lottas will use Old El Pasos 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. 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. Ench-a-lottas will be priced competitively with single serving Chef Boyardee offerings, at $1.29 for a 7.5 oz. container.
Sales Projections Fiesta Ench-a-lottas – Sales (Year 1) Buyer Segments Purchase Calculation Market Share Analysis Revenue (Year 1) Kids: 40,000,000 Kid Households: 20,000,000 BASE SEGMENT Percentage of Homes Who Buy Mexican (6 month time-frame) 45% TOTAL SEGMENT (0.45) x (20,000,000) 9,000,000 HH MARKET SHARE EZ Macaroni: 10 % Lunchables: 55% Chef Boyardee: 15% Spaghettios: 5% OLD EL PASO 17% Market Share of All Mexican Foods MARKET SIZES $ 50,000,000 - $150,000, % 675,000 HH CONSUMPTION (monthly) Repeat+ Repeat Single (0.34) (0.34) (0.34) 4+ 2 – Per Household / Month 24,300,000 Bought 24,300,000 $1.29 X $31,347,330 Source: Meat & prepared meals report, Mediamark Research Inc., 1994 Meat & prepared meals report, Mediamark Research Inc., 1997
Sales Projections Fiesta Ench-a-lottas – Sales (Year 2 and Year 3) Buyer Segments Growth Purchase Calculation (Sensitivity) Market Share Growth (Responses) Revenue Growth 9,000,000 HH 7.5% CONSUMPTION (monthly) Repeat+ Repeat Single (0.20 – 0.40) (0.20–0.40) (0.20–0.40) 4+ 2 – – 3.4 Purchases Growth (Year 2): 1.03 – 1.10 Growth (Year 3): 1.03 – 1.10 Growing Ethnic Influence Growing Cultural Influence Population Growth 4% - 10% Growth in Market (No response) Growth in Market (New Segment) Market Contraction (Price War) Market Contraction (Product Into) Source: Meat & prepared meals report, Mediamark Research Inc., 1994 Meat & prepared meals report, Mediamark Research Inc., 1997 Year 2 Year 3 $34,000,000 $35,000, ,000 HH
Sales Projections Fiesta Ench-a-lottas – Sensitivity Analysis 20% Sales Projections – Sensitivity Analysis (Monte Carlo Simulation) Sales (Thousands) Baseline 50% 20% 80% 50% 20% 80% Year 1 Year 2 Year 3 Expected Case – Baseline Projection (mean – 50 th percentile – projected sales) Growth Case – Optimistic Growth Projection (80 th percentile projection) Market Contraction Case – Pessimistic Growth Projection (20 th percentile projection)
Concept 2 Betty Crocker Single Bakes Concept Cake Snack Convenience Indulgent Quality Now its easier than ever to enjoy fresh-baked Betty Crocker cakes. Betty Crocker introduces Single Cakes – 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 Crockers delicious icing or spread. Its just like made from scratch – but its ready whenever and wherever you are!
Product Positioning Betty Crocker Single Bakes Packaging Mktg. Segment Price Placement Betty Crocker Single Bakes will be placed in the snack aisle in the supermarket. Competitors include: Sara Lee, Hostess, Otis Spunkemeyer 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 its significant brand equity. 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 Bettys best offerings with the ease and convenience of a prepared food. The target market for Betty Crockers 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. Bettys 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.
Sales Projections Betty Crocker Single Bakes – Sales (Year 1) Buyer Segments Purchase Calculation Market Share Analysis Revenue (Year 1) Workforce: 190,000,000 % Workforce (Women): 88,350,000 BASE SEGMENT Bring Lunch From Home Average: 50% TOTAL SEGMENT (0.50) x (88,350,000) 44,175,000 HH MARKET SHARE Nothing: 25 % Candy: 40% Pretzels: 8% Chips: 7% Popcorn: 5% 1% CONSUMPTION (monthly) Repeat+ Repeat Single (0.50) (0.35) (0.15) 4+ 2 – Per Household / Month 19,613,700 Bought $ 0.90 X 441,750 HH19,613,700 $17,652,330
Sales Projections Betty Crocker Single Bakes–Sales (Year 2-3) Buyer Segments Growth Purchase Calculation (Sensitivity) Market Share Growth - Response Revenue Growth 44,175,000 HH 1% CONSUMPTION (monthly) Repeat+ Repeat Single (0.20–0.55) (0.15–0.35) (0.10–0.20) 4+ 2 – – 4.00 Purchases Growth (Year 2): 1.00 – 1.20 Growth (Year 3): 1.00 – 1.20 Growing Women Workforce Use as Dinner Dessert 1% - 3% Growth in Market (No response) Market Contraction (Product Into) 441,175 HH Year 2 Year 3 $25,000,000 $35,000,000
Sales Projections Single Bakes – Sensitivity Analysis 80% 50% 20% Sales (Thousands) Baseline 50% 20% 80% 50% Year 1 Year 2 Year 3 Sales Projections – Sensitivity Analysis (Monte Carlo Simulation) Expected Case – Baseline Projection (mean – 50 th percentile – projected sales) Growth Case – Optimistic Growth Projection (80 th percentile projection) Market Contraction Case – Pessimistic Growth Projection (20 th percentile projection)