Pillsbury Cookie Challenge

A U.S. Cookie sold in Canada?

Organizational capabilities
Worlds 6th largest food product manufacturer
International Segment 16% of sales
$1.856 billion in 2006
GMCC is 30.5% of the segment at $566 million

4th RBGs position in GMCC

Flat growth over past two years
Penetration has fallen

62% - Cookies sales in RBG

75% of category profit

SWOT RBG Cookies

85% market
share
Doughboy
Convenience

Huge % of bake
from scratch
users

Focus on the
product
Ads sourced
from US

Strength

Weakness

Opportunity

Threat
Volume growth
flat
Penetration
falling (24%)

Segmentation and Targeting

Bake from
Scratch

Refrigerated

Baking Mix

56% vs 22%
in the US

24% vs 54%
in the US

16% vs 32%
in the US

1. 27% of market consists of

non-users.
2. Assuming scratch and mix to
be lapsed users, the
percentage is 48.7%
3. Matches with penetration
figure of roughly 24%

Target
Process of
baking

Pragmatic,
get-it-done

More lapsed
users

85% of
market

Other options:
Users/lapsed users/nonusers
Family/non-family

Very low
sole usage

1. Increasing market
penetration is a possibility
2. Increasing purchasing
frequency?
Competitors:
No organized competitor in
scratch baking!

Insights
On three purchase driver categories related to
kids, an average of 11.2% more importance
Quality is 12 percentage points less valued
when compared to the US market.
BUT
New products and ads leveraged from US
None had the targeted impact

The Problem with Kisses

Doughboy Check
Mother Missing
Child Missing
Focus on Emotions Missing
Focus on Product Check

Result?
Brand recognition Insufficient
Relevance Low
Likely-to-buy High

Value Proposition
Pillsbury cookies enhances the joy of baking and
looks to give families more happiness with a
product that is convenient, appealing to kids and
signifies an act of generosity.

Positioning
Pillsbury cookies will move away from focus
on quality and nutrition (which is implicitly
accepted)
To an emotional connect with families and
especially mothers.
The aim is to show the act of making cookies
through Pillsbury an act of love and caring also
giving more time to mothers to spend time
with their kids.

Directions
Leveraging the Pillsbury doughboy to build a
connect with kids (such as Ronald McDonald).
Shifting advertisements to have more of the
family feeling.
Emphasizing that the act of using Pillsbury is an
act of love and leaves even more space for home
makers to spend time with their family and kids.
Having mother-child school baking contests on
Mothers Day.