BUS 306 - Market Planning Two-Page Summary

Problem

In the current market, there are limited options for gluten-free cookies. Additionally, the options

that are currently available generally consist of local companies with products more expensive

than their mass-produced counterparts. According to Statista.com’s survey conducted in 2012,

“U.S. Gluten-Free Target Market,“ concluded that nearly 18 percent of the population in the U.S.

prefer and buy gluten-free products. The main problem is that there are very little affordable,

healthy, mass-produced gluten-free cookie options within the market today. Currently, Pillsbury

is a leading brand name company appealing to buyers of gluten-free goods. While local brands

are struggling to enter large chain shopping marts, Pillsbury has demonstrated their ability to put

gluten-free items on the shelves. However, their packaging only comes in dough form, which is a

limitation within the company’s marketing plan. Furthermore, there have been several studies

that link gluten-free products generating healthier lifestyles, rather than their gluten counterparts.

Companies like Frito-Lay are now making gluten-free labels and products, but the gluten-free

cookie market remains relatively untouched. Under the current market, there needs to be a

solution that will appeal to the health conscious and celiac intolerant individuals who want an

affordable, gluten-free cookie that is pre-packaged and ready to go.

Possible Solutions With an estimated 1 in 133 Americans having celiac disease and a total of nearly 18 percent of

the U.S. population preferring gluten-free products, the gluten-free trend is at its peak and is not

expected to go away anytime soon (Amidor, 2014). As the gluten-free food category is expected

grow rapidly, it is imperative that solution to the limited options for gluten-free cookies be

ascertained (Amidor, 2014). The options that were considered include:

• Use a name brand company to produce gluten-free cookies

• Boost marketing and availability of current gluten-free cookie companies

• Create a new, strictly gluten-free company

Option one, the use of a name brand company to produce gluten-free cookies, is a valid solution

in that the company would already be associated with customer loyalty, readily available

resources, and the ability to adapt and mass produce. Option two, boosting marketing and

availability of current gluten-free cookie companies, would be a very cost efficient solution due

to currently having a production line in place. The third option, creating a new, strictly gluten-

free company would address the issue at hand while providing the option for expansion into

more gluten-free products in the future. Ultimately, the use of a name brand company to produce

gluten-free cookies, option one, was considered the most effective solution.

Options Recommendation Brand name corporations maintain a well-known and usually highly regarded and marketable

name. When manufacturing a new product such companies have developed strategies to

successfully build and establish product production, generate market recognition, and adapt

rapidly to market trends. With twenty-two percent of Americans believing gluten is unhealthy,

providing gluten-free products opens the door to further consumer opportunities (Shoukas,

2014). Brand name companies sustain the ability to mass-produce gluten-free products, due to

established supplier relations and resources. The products can be marketed to loyal consumers

through brand recognition, as well untapped gluten-free preferred customers. Furthermore,

accredited companies have a variety of consumer outlets and demographic to utilize when

marketing such new product. Specifically, Nestlé’s commitment to enhancing the quality of

consumers' lives through nutrition, health, and wellness would benefit greatly from producing

gluten-free cookie products (Nestlé).

Target Market

Nestlé’s brand name establishes a wide base of frequent customers that value the company’s

healthy ideals. Through these health conscious ideals, the brand incorporates a “Good food,

Good life” mission to provide the most nutritious food and beverages for their consumers

(Nestlé). This identifies the company’s current target market as the healthy citizen striving for

healthy food options. The addition of gluten-free cookie products within the Nestlé brand will

appeal to the healthy customer base. Furthermore, the target market of the healthy citizen

encompasses health-conscious families.

Moreover, the target market for Nestlé’s gluten-free cookie products will also extend to the

health aware population with celiac disease and gluten intolerance. About one percent of the

general American population is diagnosed with celiac disease (CBS News Team, 2012). That

correlates to about 1.8 million Americans with the disease (CBS News Team, 2012). About six

percent of the general American population suffers from non-celiac gluten sensitivity (National

Foundation for Celiac Awareness [NFCA], 2014). That percentage accounts for 18 million

Americans. This combined total widens the target market for gluten-free cookie products.

Specified Target Market The brand name Nestlé is known across American households. This well-known establishment

through its brand name incorporates a pre-existing loyal customer base. The addition of gluten-

free cookie products to its current variety of cookie products will further appeal to health

conscious, gluten informed households. As stated previously, percent of the American population

prefer and buy gluten-free products (The Statistics Portal, 2012). This 18 percent represents the

gluten-informed, healthy households that will be the first to purchase Nestlé’s gluten-free cookie

products.