Problem Statement

Management Problem
Ivan Guillen, the marketing manager of Pillsbury refrigerated baked goods (RBG) category at
General Mills Canada Corporation is faced with the challenge of developing and
presenting a new marketing strategy to the leadership team. The plan should aim at
increasing sales volume and household penetration.
Refrigerated cookie had always been the most profitable product line of his category with 62
% of total RBG sales and 75 % of the total profit but the cookie performance has been
constant at only one percent growth rate during the last three years and the penetration ratio
has also declined during these three years.
Guillen speculated how the segments performance could be improved. He wanted to
understand whether there was an issue with the taste, advertising or current brand
messaging of the Pillsbury.

Research problem
Guillen wants to research the difference between Canadian and United States consumer
markets. This would aid him in designing the marketing strategy to boost the sales as well as
profit of his category.

Background
General Mills

Headquartered in Minneapolis, Minnesota

6th largest food product manufacturer

Various Brands that General Mills have are : Betty Crocker, Progresso, Pillsbury,
Green Giant and Cheerios

It was composed of three distinct operating segments :

U.S Retail (69%)

International (16%)

Food Service

Some of the major distributors were Safeway, Walmart and Costco

General Mills Canada Corporation

Established in the year 1954 and was the second largest division of General Mills

GMCC was the market leader in the Canadian Market with annual sales of US$ 566
Million.

The Canadian division was split into 4 units which are breakfast, baked goods, meals
and snacks which was further sub divided into 12 other categories.

Unique products developed for the Canadian market were Oatmeal crisp maple nut
cereal and pizza pop snacks.

Pillsbury Refrigerated Cookies

Cookies were most profitable in the RBG category

Represented 62 % of total category

Two formats Chub, Ready to bake

Guillens ideas on Improvement of cookie Performance

Increase frequency of purchase

Increase household penetration

Combination of both

Analysis
Findings
Previous

Interpretation
Ineffective marketing plan

Implications & Actions

Design marketing plan after

initiatives could not achieve

as

conducting exploratory and

the target - 5% to 7% annual

according to the consumer

confirmatory

category growth

insights of Canada

Canada.

marketing

it

wasnt

designed

research

Pillsbury Refrigerated Cookies

Profitable

product

The

product

line

was

line - 65 % of total

fulfilling the need of busy

sales
75%

mothers

categorys profit
Constant growth at

of

total

1% for last few years

but

expectations
changed.

now

their

might

have

Modify the marketing mix

in

Household
penetration declined

Usage and attitude study results

Scratch baking is primary in

Scratch

baking

Canada

convenient

for

(56%)

while

is

Canadian

RBG

marketing

should

target

strategy
Canadian

refrigerated dough preferred

mothers while refrigerated

mothers

is US. Only 22% bake from

dough for US mothers.

baking. This would require

scratch in US.
Convenience and taste are

Cookies are convenient for

cognitive approach.
RBG should maintain the

top

both

convenience and taste of

purchase

drivers

in

Canadian

and

US

with

scratch

Canada and in US

mothers and have pleasant

cookies.

Kids play a bigger role in

taste
Canadian kids find fun in

RBG should target kids in

driving purchase in Canada

cookies (baking and tasting)

their

advertisement

in

Canada. This would require

Quality of cookie dough is

Canadian mothers are more

affective approach.
RBG should demonstrate

not

highly in

quality conscious than that

the good quality image.

Canada, as it is in US
Lapsed users also agree

of US
Lapsed users accept the

The

that RBG cookie dough are

convenience and ease of

lapsed could be researched.

convenient

baking cookies using cookie

Those could be used in

dough

designing

valued

as

reasons

why

the

users

marketing

strategy to convert them.

This would require conative
approach.
In-Home Immersion and discovery workshops
Mothers want that cookie

Mothers select cookies on

which

the basis of their simplicity, mothers

realistic,

is

simple,
inexpensive

rapid,
and

The

desired
for

criteria

of

selecting

practicality and likeness to

cookie

pleasurable to the children

children.

incorporated

Mothers enjoy baking

Baking made the family

marketing plan.
RBG
should

appreciate the mother.

demonstrations
target

should

be

in

the
give

to

their

customers

by

creating baking counters at

supermarkets

in

which

mothers bake and enjoy the

baking.

It

reflected
Children
baking

participate
and

eating

in
the

cookies

should

be

in

their

Making baking easy so that

advertisement as well.
RBG should demonstrate

children

the simplicity and ease of

can

help

their

mothers with enthusiasm

baking

Lapsed users were not sure

Lapsed users are unsure of

strategy.
RBGs marketing strategy

about the product

product decisions because

should target lapsed users

they do not have much

to educate them.

awareness
Mothers
believe

As Pillsbury requires some

Pillsbury

products

preferred

on

are

readymade

food.

that

in

as

its

marketing

Pillsbury represent the true

effort

compare

to

generosity and hospitality.

readymade food, this makes

the mothers feel good. This
should

be

reflected

in

marketing strategy i.e. Joy

Cookie

dough

were impulsive.

purchases

Mothers like to bake cookie

of baking for family.

The product distribution

dough.

should be well planned and

displayed clearly in stores
so that mothers as well as
children

approach

easily.

Significant Differences from Usage and attitude study between US and Canada

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
29
42
30 Canada
41
28 US
47
37
29
17

From this it is clearly observed that kids are given much more importance in Canada when it
comes to baking cookies. Their choice is very important. Hence, the advertising and
targeting strategies in Canada should have high involvement with kids.

Addressing the problem statement

Category line extension: As scratch baking is most preferred in Canada, product

line be extended. The new product to contain different sachets with separate

ingredients which can be mixed and then baked to give the feel of scratch baking.
Targeted advertising: Ads specific to the Canadian market should be developed.
These should focus on kids and the joy mothers get from seeing the family happy.
The research suggests that cookie baking is very affective in nature. It is also highly
impulsive purchase. Hence, this should be taken into consideration while designing
the ads. Emotions like warmth should be highlighted.

Action Plan
Value Proposition
Really simple and convenient to bake Cookie Dough for the mothers. Results in instant
gratification of the family. Loved by children the most.
Target Segment
Household mothers, Active Women and Children
Mothers who dedicated home-makers May be working women, may not be. We target
those home-makers who like to spend quality time with the family. They may be those who
like to bake for the family and need a quick and convenient solution for the lack of time. They
may also be the ones who enjoy sharing the baking experience with their kids. Kids to be
targeted so that they influence the buying behaviour of their parents.
Targeting Strategy

To target the mothers who are busy with their families and conscious about the
practicality, easiness, and quality of the cookies but not the price -

o Install billboards in the dense populated areas and near to all supermarkets.
o Show mothers enjoying baking in their kitchen in their advertisement.
To target the working mothers who want to bake good cookies for their children in
short time despite being busy o Install point of displays outside the office buildings
o Mothers awareness campaign in offices
o Baking workshop on a Friday in the office
To target the fun loving children who like to bake with their mothers in kitchen:
o Sell Pillsbury cookies in the school canteen
o School children quizzes can be conducted with sample packs as prizes
o Distribute samples in supermarkets and malls using the Dough Boy
The display of the cookies should be approachable and prominent in the
supermarkets.
Packaging can have two variants
o An image of mother baking in her kitchen
o An image of a fun loving child baking cookies
Supplying cookies in all gas stations and tuck shops from where working moms can
shop.

Communication Message

Life is too short to bake a bad cookie. Savour family time with Pillsbury cookie
dough.