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1.

Introduction

The Canadian Pillsbury RBG (Ready-Baked Goods) line is experiencing disappointing


performance, and the marketing manager at GMCC (General Mills Canada Corporation) is
under pressure to make strategic decisions that will help turn around the segment. The
marketing manager has engaged the help of the consumer insights team to conduct market
research studies that will shed light on consumers and their attitudes, behaviors, and
preferences towards the product.
Our goal is to better understand how marketers can make better decisions, based on
different types of consumer research, and to show how the relevant customer insights
can help to determine strategies and explore the ways to improve business performance.

1.1.

General Mills % General Mills Canada Corporation

One of the world's leading food companies, General Mills operates in more than 100
countries and markets more than 100 consumer brands, such as Yoplait, Pillsbury, HaagenDazs, Nature ValleyGreen Giant, and more. Headquartered in Minneapolis, Minnesota, the
company operates in three segments: US Retail, International and Food service.
Representing 69 per cent of total sales, the US Retail segment is the largest of the three.
General Mills Canada Corporation (GMCC) is a subsidiary of General Mills. With annual
sales of 566 million US$, GMCC is a leader in the Canadian packaged foods market and the
second largest division within the International segments.
The Canadian division is split into four business units: breakfast, baked goods, meals and
snacks.
1.2.

The Canadian Refrigerated Baked Goods Category

One of the fourth largest division of GMCC is The Refrigerated Baked Goods (RBG). The
convenience and family appeal makes the RBG products to be so appreciated.
Pillsbury brand is part of the General Mills portofolio and the leader in the RBG category
including a full range of products, such as biscuits, cookies, sweet rolls, pizza and pie crusts.
Canadian market doesnt have a specific marketing strategy, using an adapted US advertising.
In terms of the market, Pillsbury was the most profitable segment of General Mills Canada,
with refrigerated cookie dough owning 62% of ready-baked-goods sales and yielding 75%
category profit. Pillsbury held 85% of the market share and was carried by all major
Canadian retailers.
However, volume growth, household penetration, and cookie segment growth were all flat.

2. The Problems

Over the past years, RBG in Canada branch performance were not satisfied whereas
refrigerated cookies had always been the most profitable product line of its category.
Although the volume growth between 2004 and 2006 had remained nearly flat at 1% and the
household penetration had fallen to 24% from previous years.
In order to understand the possible reasons of decline in cookie sales, through the consumer
insights (advertising, taste, current brand messaging of the Pillsbury), the marketing manager
Guillen wants to see the difference between consumer markets of Canada and that of US, and
also to design a marketing strategy according to it to boost the sales as well as profit of this
category.
In order to understand these cultural differences, we will use Hofstede Framework(see
exhibit 1)
Individualism:
- Individualistic culture;
- Employees are expected to be self-reliant and display initiatives;
- People look after themselves and their immediate families;
Uncertainty Avoidance:
- Uncertainty accepting;
- Easy acceptance of new ideas, innovative products and a willingness to try
something new or different, whether it pertains to technology, business
practices, or consumer products.
Indulgence:
- Indulgent;
- Willingness to realize their impulses and desires with regard to enjoying life
and having fun;
- Higher degree of importance on leisure time, act as they please and spend
money as they wish.
Power Distance:
- Interdependence among its inhabitants;
- Value placed on egalitarianism;
- Canadians value a straightforward exchange of information.
Masculinity:
- Moderately masculine society
- Work-life balance is likely to take time to enjoy personal pursuits, family
gatherings and life in general.
Pragmatism:
- Normative society
- Strong concern with establishing the absolute truth: they are normative in their
thinking;
- Great respect for traditions, a relatively small propensity to save for the future,
and a focus on achieving quick results.
3. Consumer Insights
1. What are consumers insights?
Consumer insights are learning based on consumer preferences, attitudes and behavior. It is
also the process of collecting and analyzing customer feedbacks toward a product or a brand.

The Consumer insights are used by internal marketing team and a 3 rd party research firms to
conduct customer research.
2. What types of business challenges can benefit from consumer insights?
Business can benefit from consumer insights by analyzing results from research to better
align their marketing strategies with consumer needs
3. How are consumer insights obtained?
Consumer insights are obtained either through quantitative research or qualitative research,
focus group, concept test, creative testing, usage and attitude testing.
4. Key Learnings
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 perceptions beliefs and feelings towards Pillsbury RBG cookies.
The quantitative study demonstrates that Purchase is impulsive and that use of refrigerated
cookie dough increases particularly in household kids.
The qualitative method shows that for mothers, baking experience is very important,
experience that is relatively easy, practical, affordable and pleasing to children with Pillsbury
Cookie
5. Recommendations
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.

Create a new product for Canadian consumers

More advertise aggressive

Joint Ventures

Mobile phone apps

Sponsorships

Free recipes and coupons

Exhibit 1:

Canada
in comparison with United States
Canada
80

United State

91
68 68
48 46

52
39 40

62
39
26

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