P I L L S BU RY C O O K I E C H A L L E NG E

Pauline CACHAIN, Sylvain HYVRIER,

Naman BHAYANA,
Abhishek SHUKLA Priyanka NARAYANAN

Contents: An Overview
Prsentation of the case and the Company Analysis of the situation Problems and Objectives Recommendations Conclusion

About the Case

Ivan Guillen : Marketing Manager at GMCC (General Mills Canada Corporation) Tries to improve the cookies segment growth in Canada Asked for market researches about consumer behaviour in Canada

About Pillsbury

Pillsbury is held by General Mills since 2001. General Mills : American food company (6th worlds largest group), Minnesota. Brands : Hagen-Dasz, Old El Paso, Cheerios.

Total company revenue : $11.6 billion (2006)

Earnings :$1 billion.

About Pillsbury contd.

Pillsburys cookies make part of GMCC on the Refrigerated Baked Good category (RBG)
Pillsbury focus on cereal and grain snacks. Focus on easy cooking recipes, easy eating food. Cookies = 62% RBGs Sales Unit/75% profit of the category.

About Pillsbury contd.

Pillsburys products : Bread Cookies Biscuits Cinnamom Rolls Crescents Pie Crust Pizza Crust

Commercial Break

OBJECTIVE OF THE CASE

How to improve the performance of a business ? How to increase the sales in Canada market ? How Branding and advertisement can help in sales reciprocation ?

SWOT ANALYSIS
STRENGHTS - Cookies represent 62% of sales - Cookies are selling in major grocery retailers - Brand is very well known - Reputation WEAKNESSES - Healthy of the company depends on the sales of the cookies - Increase of 1% per year - Only 2 types of size THREATS

- Pillsbury belongs to General Mills 6th worlds largest group - Sell products in more than 100 countries - Canada market is similar to US market

- Pillsburys competitors (Kraft food, Unilever, Nestl) - Products of substitution (biscuits)

STP Analysis
Segmentation
Existing , Lost and New Customers Focus on women between 30 and 40 years old with a very active life. Children, teenagers

Targeting Focus on working women with children. (mid 30s to 40) Looking for easy and ready to eat products. Positionning: A low involvement convenience product. A very easy product to buy, to make and to eat.

Role of Brand Messaging

Establishing market position requires clear brand message. Should help increase customer perceived value Effectively communicate the message to the Target Customer Back your promises with performance

Increased Sales through Effective Communication

In-Store Display : Leading the customers to make impulse purchase. Packaging : The first appeal leading to lasting impression Focused TV-Ad campaigns on the Target Market

Commercial Break

Problems/Challenges in The Canadian Market

Household Penetration as low as 24 % Only a 1% Annual Growth for last 3 years Advertisements ineffective in making the brand recognizable What works in US doesnt really works out in Canada. (estimated growth turns out to be a failure)

RECOMMENDATIONS
Target the kids: Restrict Doughboy and go for famous and recognisable Cartoon Characters.

Come up with New Flavours (Long Term)

Advertisements to be focussed :

Packaging and Display (Medium Term)

Recommendations contd.

Target non-users Saves time as well as leaves room for personal touch Target lapsed users A focused Ad-campaign elaborating the nutritional value

Conclusion
Pillsbury needs to strengthen its relationship with the existing and lost customers and build prospective consumers. Work upon metaphoric symbolization where the product is not just a food but an entity that brings people closer. Re construct the entire advertisement campaign so as to convert the impact into proportionate sales increase.