1. Marketing 468: Marketing Strategy Term Project Marketing 468 Marketing Strategy Term Project Section 1 Team 3 Dhananjay Agarwal Nancy Dennis John Pang Peter Woodson Hiro Yamabe November 19, 2001

2. Marketing 468: Marketing Strategy Term Project Project Overview Phase 1 Market Analysis Strategy & Concept Development Concept Testing (Sales Forecast) Phase 2Phase 3 -Market Survey - Created web survey - 40 samples - Obtained customer needs and perceptions -Sampled Products -Reviewed Nielsen Data -Reviewed Current Positioning -In depth interview - 2 target segments - 10 samples - Refined our strategy and product concepts -Strategy Meetings w/ C&P -Market Survey - Posted on BBS - 16 samples - Usage - Price -Sampled HeaterMeals

3. Marketing 468: Marketing Strategy Term Project Most Important Needs N=40

4. Marketing 468: Marketing Strategy Term Project Current Market Positioning

5. Marketing 468: Marketing Strategy Term Project Our Strategic Positioning

6. Marketing 468: Marketing Strategy Term Project Strategy Strategic fit to GM Prego Bake Sauce -- success of hyper-convenience, great taste & heat Progresso Soups – great tasting, hot, shelf-stable food Green Giant – great tasting, shelf-stable vegetables Hyper-convenient great tasting, hot meals

7. Marketing 468: Marketing Strategy Term Project Two Product Concepts Self heat technologyGM food expertise Personal Chef Heating Time Fireside Feast Target Customer Size Healthy Price Professional $4 7 min 8-10 oz Calories - med Nutrition – med to high $4 15 min 10-12 oz Calories - high Nutrition – med to low Outdoor(Hunters/Fishermen) Brand FamilyGeneral MillsBetty Crocker

8. Fresh Water Food Mix Salt Water Magnesium Chip 147°F One Step to Hot Food in Under 7 Minutes. Top ViewCutaway View Personal Chef

9. Protein & Carb Veggies Salt Water Magnesium Chip 147°F One Step to Hot Food in Under 15 Minutes. Top ViewCutaway View Fireside Feast

10. Marketing 468: Marketing Strategy Term Project Tactics for Both Products IssueAction Plan Promotion Need to show hyper-convenience Need to show good tasting meal TV ads, Magazines Branding In store trial, TV ads Process description on packaging Need to show safety In store trials Co-branding with Green Giant & Evian water Need to build awareness Give away free at high traffic office areas Place in end aisle Distribution Use existing channels: grocery, mass merch and c-stores Easily accessible Take home out of equation Distribute via internet orders for delivery to office desk. Sale of multipacks.

11. Marketing 468: Marketing Strategy Term Project Source of Sales Bowl Appetit Use at home and work Personal Chef Use at work Fireside Feast Use outdoors Hot Dogs Bowl Appetit Other Shelf Stable Frozen Sandwiches Other Shelf Stable Restaurants Current Market 1) Low Cannibalization of Bowl Appetit 2) Switching Tactics

12. Marketing 468: Marketing Strategy Term Project Personal Chef Sales Forecast

13. Marketing 468: Marketing Strategy Term Project Fireside Feast Sales Forecast

14. Marketing 468: Marketing Strategy Term Project Action Plan for Sustainability Enhanced food product: –New Flavors –Heatability Innovation in self-heating technology –Design patents Continued brand building Market to new audiences –construction, landscaping, agriculture, trucking, airlines Continuous differentiation necessary to counter market forces.

15. Marketing 468: Marketing Strategy Term Project Quotes from Real People “Don’t you think that’s the neatest thing – I could see using that a lot.” (overheard speaking to other in-depth interviewee secretary after they both had completed their individual interviews) “I would definitely try it!” “This would be an attractive product, if the taste were good.” “The biggest merit is that I would not have to buy a lunch! Restaurants and convenience stores are always crowded at lunch time.” “Good because I don’t need to get up at work.” “It would be great on the road.” “I have to go to the kiosk to use the microwave at work, so I end up not using it (the microwave) that much.” “I would buy it for camping to try it out, and if it’s good, then I would buy it a few times a month and keep bringing it for camping.” “Right. I can just throw it in my pack quickly for a hot meal while fishing.”

16. Marketing 468: Marketing Strategy Term Project Summary Create hyper-convenient product that leverages GM’s expertise with quality foods Introduce Personal Chef to working professional market Introduce Fireside Feast to outdoor market Grow total revenues by 50% per year.($420MM)

17. Marketing 468: Marketing Strategy Term Project Questions

18. Marketing 468: Marketing Strategy Term Project Surveys 1 st Web Survey –Purpose: Better understand market needs and perceptions. –Process: Emailed message with URL to friends and family. Clearly not a fully representative sample, but this is a class exercise! –See http://survey.fuqua.duke.edu/cgi-bin/ssvws?surveysaid/course/marketng_361/team02/survey.htm http://survey.fuqua.duke.edu/cgi-bin/ssvws?surveysaid/course/marketng_361/team02/survey.htm –See Appendix Q for survey results. In-Depth Interviews –Purpose: Better understand specifics of concept design and positioning. –Process: Sit down interviews with Fuqua secretaries and professional and hunting/fishing friends. –See Appendix W for sample interview. 2 nd Web Survey –Purpose: Get pricing and usage data for target market –Process: Posted messages on hunting/fishing bulletin boards, and emailed professionals. –See posting at http://www.huntingbbs.com/forum/topic.asp?TOPIC_ID=49015&FORUM_ID=18&CAT_ID=2&Topic_Title=Academic+Project&Forum_Title=Off+Season http://www.huntingbbs.com/forum/topic.asp?TOPIC_ID=49015&FORUM_ID=18&CAT_ID=2&Topic_Title=Academic+Project&Forum_Title=Off+Season –See survey at http://www.duke.edu/~psw2/personalchef/ or http://www.duke.edu/~psw2/soloheat/ http://www.duke.edu/~psw2/personalchef/http://www.duke.edu/~psw2/soloheat/ –See Appendix Z for survey results.

19. Marketing 468: Marketing Strategy Term Project Naming: Why these names? Personal Chef –Taste –Quality –Convenient –Prepared for you Fireside Feast –Hot –Hearty –Convenience –Taste

20. Marketing 468: Marketing Strategy Term Project Revenue Forecast

21. Marketing 468: Marketing Strategy Term Project RTE Meal Competitive Landscape Substitutes: Short term: High Long term: High Barriers to Entry: Short Term: High Long Term: Low Buyer Power: Short Term: Low Long Term: High Industry Rivalry: Short Term: Low Long Term: High Supplier Power: Short Term: Big Long Term: Low

22. Marketing 468: Marketing Strategy Term Project Competitor Reaction Substitutes - Many forms of lunch or snacks are substitutes for Personal Chef, however our survey and interviews indicates that for Hunters/ Fishermen substitutes are ‘cold’ meals (e.g.., sandwiches), pre- packaged snack products (e.g.., granola bars), or foods that require a stove or fire to cook (e.g.., soups and hotdogs). Barriers to Entry -Patents -Alternative technology to heat meals needs to be developed and manufactured -Distribution networks -Quality of food Buyers - Depth interviews indicate that the initial thought of self- cooking may be thought to be unsafe, however when the consumer is assured of products safety, they believe the product would be extremely useful. Rivals - when the Fireside Feast and Personal Chef hit the market, we anticipate that other competitors will enter the market – see next slide Suppliers Unless General Mills chooses to purchase and manufacture the heating technology – there is the possibility of being ‘held-up’ by the supplier. In the long run, General Mills will need to vertically integrate to acquire the manufacturing of the technology.