general mills new product introduction marketing plan section 202 team 4 jay curran james gaskin...
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General MillsNew Product IntroductionMarketing Plan
Section 202 Team 4Jay Curran
James Gaskin
G.T. Hollett
Steve Holley
Kurt Knaub
Marty Wick
Locker Number 632
Project Objective
To create and initiate market planning for two shelf-stable, single-serve product lines or product line extensions that will generate
substantial incremental revenue over a three-year sales period
Process Outline
Gap Analysis
Phase I Phase II Phase III Phase IV
Gap Analysis
• Potential Buyers
• Market Analysis
• Market Influencers
•Purchase Estimation
• Revenue Projection}
Concept Evaluation
PositioningConcept Creation Sales
ProjectionsPositioning
Concept Creation and
Evaluation
Gap
Analysis
2 Con
cepts C
hos en
Successful Product Launch
• New Segments
• Existing Concepts
•Attribute Importance
• New Market Space
}
• Brainstorming
• Concept Selection
– Psychographics
– Asset Compatibility
– Gap Analysis
– Profitability
}
• Consumer Feedback
• Consumer Focus
• Packaging
• Price
• Marketing
}
Macroeconomic Trends
• Average age of population is increasing– Over 65 group grew by 14.7M people from 1990 to 1999
0
20000
40000
60000
80000
100000
Under 5 5 to 19 20 to 34 35 to 54 54 to 65 Over 65
Pop
ulat
ion
(000
s)
19901999
Kids and the baby boomer generation form two of the fastest growing segments.
Macroeconomic DataU.S. Age Demographics
Source: 2000 Census Bureau Report
Macroeconomic TrendsU.S. Ethnic Demographics
0
5
10
15
20
25
30
35
1990 1995 2000
Pop
ula
tion
(M
illi
on)
Hispanic
Asian-American
• Hispanic and Asian-American ethnic groups have the highest growth rates in the nation
– Hispanic: 34.5%– Asian-American: 35.9%
• Despite the fact that Hispanics are only 11% of population and Asian Americans are 4%, the growth of these ethnic populations influences U.S. culture
Total Pop: 270M
Asian-American and Hispanic foods represent a fast growing segment due to both population and cultural influence
Source: 2000 Census Bureau Report
0
5
10
15
20
25
30
1985 1990 1995 1999
Sing
le P
erso
n H
H (
Mil
lion
s)
Macroeconomic TrendsU.S. Labor & Households
0
5
10
15
20
25
30
35
1986 1990 1995 2000
Dua
l Inc
ome
HH
(M
illi
ons)
• Almost 2/3 of U.S. Households do not have a “stay at home” adult to allocate their time to meal preparation • Women account for 46.5% of current workforce
Total U.S. HH: 105MTotal U.S. HH: 105M
Asian-American and Hispanic foods are a growing segment due to both population and cultural influence
Source: 2000 Census Bureau Report
• Fast growing segment of food marketplace.– Analysts currently estimate nutraceutical market at $15
Billion.1
– Currently, “nutrionally-improved” foods account for more than 78% of growth in 35 food categories.2
– Growth attributed to large population of aging baby boomers and awareness of “age” disorders (e.g., osteoporosis)
• Popular in the following forms:– Beverages (OJ, fruit juice, smoothies, spritzers, etc.)– Cereal– “Meal-replacements” (shakes, snacks, etc.)
1. www.cnn.com/2000/food; January 1, 2000 “On your plate,: top food issues for your meals.”
2. http://www.opta-food.com/trends/3tds-ptctpt.html
Macroeconomic TrendsU.S. Labor & Households
• Dual income and single person households are increasing and now account for 2/3 of all U.S. households
Statistical Trends and Observations Takeaways
• Hispanics and Asian-Americans are the fastest growing segment of the U.S. and now account for 15% of the total population
• The average age of the population is increasing (baby boomers). The “kid” segment is also one of the fastest growing.
• Women now account for 46.5% of the workforce and is increasing
There are fewer households who have a “dedicated” family member for meal preparation
Opportunities exist in the fastest growing ethnic segments
There is a potential need for products which target specific food attributes of the baby boomers and kids
An opportunity may exist for lunch meals which target working women.
Macroeconomic TrendsSummary
Microeconomic Data
• U.S. consumers are spending less of their disposable income on food during the late 1990’s
• In the past 10 years, supermarkets have experienced a two-fold increase in shoppers who consider a grocery store the primary source for a pre-made dinner (18% of total population)
Microeconomic DataU.S. Food Expenditure Trends
Supermarkets are increasingly the primary source for pre-made, inexpensive dinners.
Source: “Meal Solutions”, Food Marketing Institute, 2000
Microeconomic DataU.S. Food Consumption – Lunch at Work
• Workplace lunch facts:
Bring Lunch from home 45% At least once per week
20% Everyday
Skip Lunch completely 31% Sometimes
11% At least once per week
Source: “Brown Baggin’ It”, American Demographics, January, 2001
Nearly half of American workers are looking for lunch solution to take to work
• As consumers’ lives have become increasingly hectic, the length of time dedicated to meal preparation has decreased
• Time dedicated to lunch (both preparation and consumption) has decreased to only 15 minutes
Microeconomic DataMeal Preparation Time
Americans have less time to spend on meal preparation with lunch being particularly hectic for consumers
60
30
15
7.5
0
10
20
30
40
50
60
70
1985 2000 2005 2030
Pre
para
tion
Tim
e
Source: “Changing Cooking & Dining Habits”, www.globalgourment.com, 2000
• Surveys indicate the top four food attributes for making a purchase are taste, nutrition, product safety, and price.
Microeconomic DataU.S. Food Attribute Importance
These attributes serve as potential drivers for consumer purchase behavior
Very Important Somewhat Important
Taste 89% 8%
Nutrition 71 25
Product Safety 71 20
Price 69 27
Storability 46 38
Source: “Nutrition”, Food Marketing Institute, 2000
• Further research indicates health importance for consumers is typically fleeting
• The food industry is known to take advantage of this fact through loose nutritional claims of low fat or low sodium products
• A Food Marketing Institute (FMI) survey found the most definitive health changes were additions to their diet in the form of fruits and vegetables rather than eliminating certain unhealthy aspects in their current meal purchases
Microeconomic DataU.S. Food Attribute Importance
While nutrition was identified as a potential driver for food consumption, consumers often don’t make their purchase decisions based on this attribute
Source: “Nutrition”, Food Marketing Institute, 2000
Microeconomic DataU.S. Food Consumption - Snacks
• A significant percentage of Americans snack:
0102030405060708090
100
Four or moretimes per day
Two or moretimes per day
Regularly
Source: “What’s in Store”, International Dairy Deli Bakery Association, September, 19981 Press Release, Snack Food Association, July 19, 2000 (most recent available data)
40%50%
93%
Snack food sales continue to grow. Sales topped $30 billion in 1999 1
• Fast growing segment of food marketplace– Analysts currently estimate nutraceutical market at $15 billion– Currently, “nutritionally-improved” foods account for more than 78%
of growth in 35 food categories– Growth attributed to large population of aging baby boomers and
awareness of “age” disorders (e.g., osteoporosis)
• Popular in the following forms– Beverages (OJ, fruit juice, smoothies, spritzers, etc.)– Cereal– “Meal-replacements” (shakes, snacks, etc.)
Source: www.cnn.com/2000/food; January 1, 2000 “On your plate,: top food issues for your meals.”
http://www.opta-food.com/trends/3tds-ptctpt.html
Microeconomic DataNutraceutical Trends
• Supermarkets are a primary source for shoppers who are looking for a pre-made dinner
Statistical Trends and Observations Takeaways
• A significant percentage of American workers skip lunch or eat out regularly
• Time spent for lunch (and other meals) has become increasingly short
• Nutrition is identified by consumers as an important food attribute, but has less impact in their actual purchasing decision
The market for single serve, shelf-stable products should expand
American workers have a need for a quality tasting, convenient prepared lunch meal
Lunch convenience
Health attributes for meals can be subtle. Taste is a true driver for food consumption
Microeconomic DataSummary
• Snacks food sales are growing a represent a significant portion of a typical consumer’s consumption
Snacks represents a robust and growing segment of the market
Consumer Needs Analysis
ResponseAverage
Work Day? Thoughts
Meal Freq
Meal Size
Food TypeEat
Where?Description Take Lunch?
1
Constant mtgs and computer
work
Nice to get away
2X Med – LgStarch w/meat
& sauceL: work
D: home
L: quick, easy, hot
D: quickest to make
Yes – Cheaper;
Take starch w/meat & sauce
2Sporadic
work
Eat something
healthly and filling
3x MedHealthy &
Filling
L: work
D: home/out
L: salad
D: chickenNo – Company café is cheaper
3High stress, very busy
Quick w/no hassle
3x LargeRice, Noodles,
Pasta. No meat.
L: desk
D: dining room table
L: rushed
D: relaxing, alone
Yes – Cheaper;
Take white rice, leftover pasta,
salads
4 Busy Quickest 4-6x Small
Chicken breasts, fruits
turkey, vegetables
L: home
D: home
L: speed
D: speed
Don’t – Takes too long to
prepare
5Constant
work at Desk
Break from sitting at computer
3x Med
Sandwich or Hot Cafeteria
Meal & Snacks in between
L: cafeteria
D: home
L: relaxed
D: fast preparation
with good taste
Not usually because
workplace has a cafeteria
6On the road, Sales calls
all day
Get me on to the next
appointment4x Small
Fast Foods on the road, Hearty
meal at home
L: work
D: usually home
L: speed
D: full courses, meat & veggie
No – almost always go to a drive through
Psychographics Survey Output
• Convenience is a key factor if the consideration set includes any single serving meals
• Meal & snack sizes away from the home tend to be small due to hectic schedules
• After convenience is evaluated, taste drives a meal or snack decision
• Heath was an important consideration, but was often neglected at the time of purchase, in favor of convenience & taste
• Price will always influence meal & snack purchases
Consumer Needs AnalysisMoment-In-Time Decisions - Summary
Source: These takeaways are derived from consumer interactions. These include surveys and discussions about general and eating behaviors. The survey is included in the Appendix.
Current Portfolio Analysis
General Mills PortfolioEvaluation Process
Portfolio Overview
Needs Analysis
Brand Review
ApproachHigh-level
product/brand mapping
Refined mapping of purchase drivers
Categorize offerings under existing brands
Takeaway Determine focus opportunities
Understanding of gaps
Identify opportunities to further leverage
brands
Portfolio OverviewCore Demographics and Dayparts Served
Time of day and lifestage factors, while not drivers,
help isolate drivers
Adults
NightMorning
Kids
Noon
RT
E C
ereals
Nature Valley
Yoplait Bowl Appetit
Chex Mix
Bugles
Pop Secret
Family
Progresso
Lloyd’s BBQ
BacOs
Old El Paso
B.C. Helpers
Ginos/Totinos
B.C. dessert mixes
Haagen Dazs
Fruit Snacks
Dunkaroos
Squeezits
Go-Gurt
Pillsbury Pillsbury
Lunch hour generally underserved by existing offerings
Green Giant
UNDERSERVED
Needs AnalysisTaste, Flavors and Nutrition *
* Critical drivers when holding price and convenience constant
For the senses (taste)
EthnicStandard
RT
E C
ereals
Nature Valley
Yoplait
Bowl Appetit
Chex Mix
Bugles
Pop Secret
Progresso
Lloyd’s BBQ
BacOs
Old El Paso
B.C. Helpers
Ginos/Totinos B.C. dessert mixes
Haagen Dazs
Fruit Snacks
Go-Gurt
Pillsbury
General Mills delivers very little ethnic flavor
For the body (nutrition)
Dunkaroos
Squeezits
Green Giant
UNDERSERVED
BrandConsumer Meanings
Ready-made
mealsMeal Ingred. or
Accompaniment
Ready-made
Snacks
Betty Crocker Quality, baking and cooking, wholesome
Attempting use with Bowl Appetit
Existing offeringsOPPORTUNITY
Pillsbury Easy, quality, baking
OPPORTUNITYExisting offerings
OPPORTUNITY
Green Giant Vegetables, convenient
Existing offerings Existing offerings Not clear fit
Old El Paso Mexican, qualityOPPORTUNITY
Existing offeringsOPPORTUNITY
Haagen Dazs Indulgent, ice cream
Not clear fit Not clear fit Existing offerings
Progresso Premium, soup Existing offerings Not clear fit Not clear fit
Big G and sub-brands
Breakfast, variety of messages
Existing offerings Not clear fitOPPORTUNITY
Numerous opportunities to leverage powerful brand names in various formats
General Occasions
Brand ReviewLeverage Opportunities
Competitive Analysis
28
Competitive AnalysisBrands
29
Shelf-Stable
Competitive AnalysisConsideration Set
Broad Options
• Consumers’ meal consideration sets include traditional restaurants and fast food outlets.
More Narrow Options
• Consumers narrow their options to include only items available in the supermarket.
Specific Options
• For shelf-stable products consumers are choosing from options within the category.
Consideration sets allow marketers to analyze competitive options and segment consumers based on purchase behaviors
30
Competitive AnalysisGrocery Store Competitor Characteristics
Frozen• Uncle Ben’s Rice Bowls
• Marie Callendar
• Lean Cuisine
}• Large Variety
• Oil Based
• Better Tasting
• Targets Dinner
• More Expensive
• It’s Pasta Anytime
• Kid’s Kitchen
• Ragu Express }• Largely Soups and Italian Dishes
• More Kids OptionsWet Shelf-Stable
Dry Shelf-Stable
• Cup o’ Noodles
• Top Ramen
}• Limited Variety
• Water Based
• Less Expensive
• Limited Kids Options
Products launched in the grocery store require positioning against the specific attributes of its competitive consideration set
Competitive AnalysisLunch, Dinner and Snack Offerings
* Critical drivers when holding price and convenience constant
For the senses (taste)
EthnicStandard
EZ Mac
Cup Noodles
Top Ramen
It’s Pasta Anytime
Stouffer’s
Marie Callender’s Bowls
Kid’s Kitchen
Ragu Express
Lean Cuisine
Very few ethnic products; Very few premium snack products
For the body (nutrition)
Michelina’s
Smart Ones Bowls
Healthly Choice Bowl Creations
Uncle Ben’s Rice & Noodle Bowls
Swanson
Michelina’s Snacks
Chef Boyardee
Statistical Trends
Statistical Trends and Observations Takeaways
Competitive AnalysisSummary
• Many competitors already offer shelf-stable Italian products
• Minimal single-serve, quick-bake products available as shelf-stable
• Few products targeted towards children and men in shelf-stable category
Shelf-stable products geared towards men and children is an under developed segment; large growth potential
Marketplace is not meeting the growing demand for ethnic flavors
More competitive Italian segment will offer lower profits and smaller growth opportunities
Single-serve snacks baked fresh is under developed segment; large growth potential
• Few ethnic offerings available: Chinese, Indian, Mexican, Thai
Concept Creation
Sample output:
Nutraceuticals – senior-oriented foods, woman-oriented foods
Convenience – Cereal bars, drinkable meals, lunch-on-a-stick
Ethnic fare – Chinese bowls, Mexican meals, Italian pastas, “Around-the-world” dishes for kids
Snack consumption – cereal treats, time-of-day sustenance (numerous small snacks which replace meals), popcorn treats
Lunch at work – refreshing fruit and yogurt, energy bars, room-temperature meals
Concepts:
• Progresso Pronto
• Silver Servings
• Fiesta Ench-a-lottas
• Betty Crocker Single Bakes
• Pillsbury Shepherds Pie
• Oriental Express
Logic and detailed analytics used to filter concepts in timely fashion
LogicFilter
Metric Filter
Betty Crocker Single Bakes
Fiesta Ench-a-lottas
Winning ConceptsWinning Concepts
Filtered Concepts
UnbiasedBrainstorming
Driven ByCollected Data
Concept CreationMethodology
Progresso Pronto
Oriental Express
Fiesta Ench-a-lottas
Pillsbury Shepherd’s Pie
Betty Crocker’s Silver Servings
Betty Crocker Single Bakes
Concept CreationConcept Ideas
Progresso Pronto
• Concept– You have enjoyed Progresso Italian soups for years. Now, in addition to the world’s
best soups, Progresso brings you a number of quick, hearty meal bowls to warm your heart and satisfy your hunger with the tastes of Tuscany.
• Features– Personal microwave-able bowl– Ready to heat meals – Italian favorites as Roasted Herb Chicken Pasta and Arrabiatta Spicy Pasta Casserole. – Old country herbs and spices that you have come to expect from Progresso. – Includes a packet of parmesan cheese to be sprinkled over the top of the meal before
serving- adding a delightful addition to the old style recipes.
Progresso Pronto• Potential Line Extensions
– Extend the Progresso soup lines to create the following meals:
• Hearty Home style Tomato Pasta, Tomato Basil Pasta Pasta Dinner, Roasted Chicken Italiano with Rice.
• Brand– The Progresso brand represents “great food, simply prepared,” and is the perfect image
to develop a line of hearty Italian-influenced shelf-stable meals.
– The existing following of the Progresso brand will provide an immediate launch pad for Progresso Pronto. It is important to note that the Progresso line successfully markets quality shelf-stable meats in their products. This will be critical in helping consumers bridge the gap to shelf-stable meats.
Progresso Pronto• Needs Addressed
The primary needs addressed with this product offering are the following:
– General Mills offers a variety of dry cereals, snack bars, and other packaged goods designed for morning or evening consumption. However, with the exception of “Bowl Appetit,” GM does not have a lunchtime offering.
– The idea behind this product allows for General Mills to tap into the “Lunch-time-on-the-go” arena and also to leverage the core competencies of General Mills in a new area.
– Competitors already have an Italian segment developed in the shelf-stable (e.g. Classico and Chef-Boyardee,) ready to eat category, but GM does not currently have an offering.
– Progresso Pronto gives GM the opportunity to expand the existing consumer perception of the Progresso brand from quality soups with an Italian flair to mean “Homestyle Italian” products. As such, Progresso Pronto segment (shelf-stable Italian) represents a premium product while the competition focuses mainly on the children’s market. (e.g. Chef-Boyardee)
Progresso Pronto• Communication
– The promotion behind Progresso Pronto will differentiate the product from Progresso Soups by showing how they are a meal in a ready-to-eat bowl and compete with the other ready-to-eat, microwave-able products such as Stouffer’s frozen offerings and Campbell’s Chunky. However, the advertisements will note that Progresso Pronto is sold in a ready-to-heat and eat container, as opposed to the traditional tin can.
• Barriers to Competition– While there are few options available to adult customers in the wet shelf-stable
segment, the Progresso brand brings an element of superb quality and taste that is difficult for other companies (even Campbell’s) to achieve.
• Concerns/Challenges – Cannibalization of existing Progresso soups. Progresso Pronto will have to be
differentiated in recipe, serving size and presentation from the existing cans of Progresso soup. Additionally, as noted above, competition from companies such as Campbell’s could come in the form of their soup lines or new “Supper Bakes.”
– Potential to damage existing Progresso brand equity.
– The Progresso brand is a strong insulator that will allow General Mills a defense from much of the competition.
Oriental Express
• Features– Through this channel, product offerings will come in a “wet” form such as noodle or rice
with vegetables and meat. Also, there could be a small container of crunchy noodles to serve as a topping encased on the top of the package.
– The offering will come in packaging with a plastic lid for aesthetic purposes that will cover the true “canned” top, which will be removed for the microwave process.
• Concept– The dynamic flavors of Oriental Express will take you back to the storied history of
the ancient Asian Continent. General Mills brings Asian cuisine to your table in a convenient, ready-to-heat and eat single serving package. You enjoy all of the international flavor that you love with the added convenience of not having to leave your desk or home.
Oriental Express• Potential Line Extensions
– Some of the possible offerings would be the following:
• Chicken Lo-Mein, Pepper steak and rice, Orange Chicken and noodles, Thai Spring Noodles with Chicken, etc.
• Complimentary products such as Asian noodles, garnishes and teas.
• Brand– “Oriental Express” will be a new brand. It wouldn’t be appropriate to have this concept
fall under the Betty Crocker brand or other existing brand umbrellas. As opposed to leveraging an existing brand, creating the “Oriental Express” brand will be expensive. However, in light of the fast-growing popularity of Asian food, the long-term benefits of developing a new brand can be significant.
Oriental Express• Needs Addressed
The primary needs addressed with this product offering are the following:– General Mills offers a variety of dry cereals, snack bars, and other packaged goods
designed for morning or evening consumption. However, with the exception of “Bowl Appetit,” GM does not have a lunchtime offering.
– The idea behind this product allows for General Mills to tap into the “Lunch-time-on-the-go” arena and also to leverage the core competencies of General Mills in a new area.
– With consumer preferences trending toward Asian food (Chinese, Thai, etc.), General Mills can capitalize on the trend with this new product.
• Communication– The promotion behind Oriental Express will introduce full-flavored, Asian food into the
shelf-stable market. The advertising will show how the individual servings are a meal in a microwave-able, ready-to-heat bowl.
– The advertising will differentiate Oriental Express from the already available and popular noodle-based dry products in this category. (e.g. Nissin, Cup-o-Noodles)
– There is a possibility of co-marketing with the “Iron Chef” television program as a way of tapping into the popularity of this Asian Cooking program. For example, using the “Iron Chef” show to advertise the concept and generate interest
Oriental Express• Barriers to Competitors
– There is little opportunity for GM to quickly erect barriers. The best opportunity exists only if GM can spend substantially to create strong consumer associations between the brand and “quality” Oriental food.
• Concerns/Challenges– We look at this offering to encounter the following barriers:
• The cost of creating and marketing a new brand instead of marketing under the Betty Crocker name, or Pillsbury name.
• Encountering brands such as “La Choy” and “Chun King” which already have a head start on GM.
• Other frozen food product offerings from Healthy Choice, Lean Cuisine, Uncle Ben’s that feature “oriental-style” entrees that, again, have a lead over GM concerning products in the market.
• Other wet offerings that exist (Chef Boyardee, Campbell’s, etc.)
Fiesta Ench-a-lottas • Concept –
– Your kids will love these delicious bites of flour tortillas, filled with meats and cheeses and surrounded by Old El Paso’s rich enchilada sauce. These single-serve meals bring the flavors of Mexico to your school home with the great taste you’ve come to expect from Old El Paso. Just pop them in the microwave and enjoy your meal.
• Features –– Single-serving ready-to-heat bowls of enchiladas style meals.
– Bite-sized flour tortilla pockets surrounded by Old El Paso’s popular enchilada sauces.
– Pockets contain one of three fillings: beef, chicken or cheese.
– Ench-a-lottas are packaged in a plastic bowl with a vacuum-sealed pull-top lid and a plastic cover to be used while heating in the microwave.
– Served in 7.50 oz. bowls to appeal to children or light eaters. (Potential future packaging:15 oz packages for adults seeking full meal.)
Fiesta Ench-a-lottas • Potential Line Extensions
– New flavors can be established to address different consumer segments/needs:
a. Spicy/ Hot- to appeal to adult customers
b. Green Chili- rich sweet flavor
c. Taquitos- similar concept with crunchy taco chips to add after cooking
• Brand– The Old El Paso brand is perfect for launching this new line of Mexican specialty meals.
Families love Old El Paso as evidenced by the fact that it is the number one selling brand of Mexican foods. The Ench-a-lotta name will allow GM to enter a childrens’ market, thereby growing the existing customer base to include a whole new group of lifetime customers.
Fiesta Ench-a-lottas • Needs Addressed
The primary needs addressed with this product offering are the following:
– Allows GM to meet growing demand for ethnic flavors in children’s markets
– Shelf-stable, single-serve products are convenient for storage and quick and easy to prepare.
– Consumer demand for meat flavors and sustenance in shelf-stable, single-serve products
• Communication– The promotion behind Fiesta Ench-a-lottas will target the childrens’ market with catchy
cartoon-based fun advertisements. Additionally, a web-site will be created allowing kids to join (with parental approval) the “Wanna-lotta” kid’s club!
– The advertising will show how the individual servings are a meal in a microwave-able, ready-to-heat bowl.
Fiesta Ench-a-lottas • Barriers to Competition
– Leveraging the brand of Old El Paso, with the marketing and distribution of General Mills, gives GM an excellent opportunity to create barriers within consumers minds’ similar to those established by ConAgra with the Chef Boyardee offerings.
– ConAgra does not currently have a strong Mexican brand.– Old El Paso’s brand serves as an initial barrier to competitors like ConAgra, with the ability to
deliver a wet, shelf-stable offering. Heinz, with the acquisition of Delimex, holds knowledge of Mexican frozen food market and distributes what is considered by some to be a higher-quality product. However, no competitor currently offers a shelf-stable, single-serve Mexican product.
• Concerns/Challenges– The primary challenge with delivering on market needs and delivering a successful offering will
be in effectively selling the quality, flavor and safety of shelf-stable meat products. As noted, Con Agra has been extremely successful with the Chef-Boyardee line of pasta-based wet meat products. A principal goal we have is to educate the customers as to the Fiesta Ench-a-lotta offering as a substitute for current incumbent offerings in the children’s wet shelf-stable category.
Pillsbury Sheppard’s Pie
• Concept– This delicious stew of premium vegetables and hearty beef is a meal-in-itself. Pillsbury
Sheppard’s Pie is great for lunch or dinner. Either way, it is sure to satisfy your hunger. Topped off with a flaky Pillsbury crust just like grandma used to make, our Sheppard’s Pie is sure to be just right when you need a quick, yet wholesome meal.
• Features – Single-serving ready-to-heat bowls of Sheppard’s Pie.
– Pillsbury Sheppard’s Pies are packaged in a plastic bowl with a vacuum-sealed pull-top lid and a plastic cover to be used while heating in the microwave.
– Served in 15 oz packages for adults seeking satisfying lunch or light dinner.
Pillsbury Sheppard’s Pie• Potential Line Extensions
– New flavors can be established to address different consumer segments/needs:
a. Spicy – using curry powder to satisfy those seeking variation available in England
b. Chicken and Dumplings – Pillsbury dumplings and chicken within thick gravy
c. Beef Stew – Beef, vegetables, and potatoes sans crust
• Brand– This product will be marketed under the well-established Pillsbury brand name which
most American households associate with fine breads and crust brought to them by the Pillsbury. Pillsbury is well known and will help to reduce education costs and reduce customer’s concerns over quality.
Pillsbury Sheppard’s Pie• Needs Addressed
The primary needs addressed with this product offering are the following:– There is a market opportunity for bold, masculine flavors in the shelf-stable, single-serve
category. Additionally, there is consumer demand for meat flavors and sustenance in shelf-stable, single-serve products
– General Mills offers a variety of dry cereals, snack bars, and other packaged goods designed for morning or evening consumption. However, with the exception of “Bowl Appetit,” GM does not have a lunchtime offering- Pillsbury Sheppard’s Pie satisfies that need.
– The idea behind this product allows for General Mills to tap into the “Lunch-time-on-the-go” arena and also to leverage the core competencies of General Mills in a new area.
• Communication– Focus on “food like grandma made” and Pillsbury dough boy. – Pillsbury Sheppard’s Pie will be communicated to males looking for easy meals to
prepare. A satisfying meal with meat, potatoes, and crust will be stressed to garner interest.
Pillsbury Sheppard’s Pie • Barriers to Competition
– Pillsbury brand serves as an initial barrier to competitors like Campbell’s Soups and Dinty Moore stews. Additionally, the Pillsbury name has the ability to lend appeal to a ready-to-bake bread-based offering.
– Neither Campbell’s or Dinty Moore have a brand able to provide fresh crust- a fact that helps to differentiate our Sheppard’s Pie.
• Concerns/Challenges– A primary challenge will be introducing Sheppard’s Pie into the shelf-stable category.
Customers may have concern for how shelf-stable the product is with its high number of ingredients.
– The challenge with the product is to clearly show how it is different from soups on the market as well beef stews already available.
– A key will be to produce a crust that will bake in the microwave in a short amount of time.
Betty Crocker Silver Servings • Concept
– Betty Crocker’s Silver Servings bring healthy options to the table! Silver Servings are great tasting meals with both the convenience seniors demand and the dietary ingredients their doctors’ recommend. Betty Crocker’s Silver Servings are the wholesome meals that seniors are accustomed to brought to you by the brand that has earned your trust over the last 75 years.
• Features– Silver Serving meals will be packaged in small 7.5oz. personal portions that will be just the
right amount for a senior meal. Additionally, Silver Servings will be introduced in accordance with the FDA’s stated senior health issues in mind. We will offer the following three attributes:
• Low fat, low cholesterol (for hearth disease)• Low Sodium (for high blood pressure)• Balanced meal (with calcium, iron, protein, etc.)
– Traditional, non-spicy flavors such as Chicken Noodle Casserole and Hearty Beef Stew will be featured.
Betty Crocker Silver Servings• Potential Line Extensions
– A franchise line of Betty Crocker Silver Servings might include breakfast meals, snacks and a greater variety of flavors, including the possibility of popular specialties from the past 50 years of American cuisine.
• Brand– The Betty Crocker label is the perfect brand to reach the aging baby boomers. The
brand’s popularity was founded in the post-war era when many of today’s seniors were highly impressionable youngsters. Additionally, today’s seniors were the foundation of the success of the Betty Crocker Cookbooks and, as noted on the Betty Crocker website, the cookbook is “now in its 9th edition (and) has sold more than 30 million copies, making it one of the all-time best-selling cookbooks in the world.”[1]
[1] Betty Crocker Website, http://www.bettycrocker.com/meetbetty/mb_tsob2.asp
Betty Crocker Silver Servings• Needs Addressed
The primary needs addressed with this product offering are the following:• The diet-specific needs of the aging Baby Boomer generation
• Mealtime convenience desired by senior citizens
• Small portions preferred by seniors
• Communication– The promotional campaign will be twofold.
• It will include a “push” marketing campaign celebrating the joint product development of recipes and ingredients with a respected gerontological program such as The Gerontology Institute and the American Association of Retired People (AARP.) The push strategy would be to speak with physicians to have them recommend Silver Servings as a healthy option for their aging patients.
• Additionally, there will be a “pull” marketing campaign through traditional media outlets. The traditional media will target both the “younger” seniors who are responsible for their own meal purchases as well as the middle-aged children who make many of the meal decisions for senior parents. Both of these campaigns will feature the taste, health and convenience of Betty Crocker Senior Servings.
Betty Crocker Silver Servings• Barriers to Competition
– The strength of the Betty Crocker name with seniors will be of great benefit when protecting our market. It is difficult to imagine any of the heritage brands being as strong with this demographic.
• Concerns/Challenges – Competition could come from other single serve lines already in the shelf-stable market.
Of particular note is the Healthy Choice line of products. While there is substantial competition, the Betty Crocker name will be a major foundation in growing the Silver Servings franchise and serve as a powerful force in developing a loyal following.
– Some consumer research has shown that cost is the primary driver when seniors are making meal choices. If the research proves accurate, this price-sensitivity could put undue profit pressure on the Silver Servings line.
Betty Crocker Single Bakes
• Concept– Now it’s easier than ever to enjoy fresh-baked Betty Crocker cakes. Betty Crocker introduces
Single Bakes – quick bake treats that offer you a wholesome reward with minimum effort. Just pop a cake in the microwave, watch it rise, then spread on Betty Crocker’s delicious icying or spread. It’s just like made from scratch – but its ready whenever and wherever you are!
• Features– Cakes are sold in three-packs. Each cake package contains a sealed cover containing Betty
Crocker icing or spread and a plastic spread utensil.– Cakes are moist and fresh tasting upon microwaving.– Flavors include chocolate cake or yellow cake (each with chocolate icing), strawberry, coffee,
German chocolate and more.
Betty Crocker Single Bakes
• Potential Line Extensions– Extensions are possible to cookies, cinnamon rolls and more, but such
extensions likely will take place under the Pillsbury brand. Thus, extension opportunities take place more from a market and packaging knowledge standpoint.
• Brand– The Betty Crocker brand is the natural home for this concept. The existing
brand will keep product introduction costs to a minimum and provide a natural advertising platform.
Betty Crocker Single Bakes
• Consumer Needs and Positioning – This product is expected to address the need for:
a. A wholesome reward for “all the hard work that women do”
b. Consumer demand for tasty snack food with less guilt
• Communication– Focus on rewarding women for their hard work. The quality of the product
will allow overcome the communication to women, thus allowing for male consumption as well.
– The offering will offer convenience to consumers. As an alternative to actually baking the product, a buyer can pick up a package of pre-prepared cakes for consumption at home, at the office or on the go.
Betty Crocker Single Bakes
• Barriers to Competition– Betty Crocker is a strong brand that resonates with consumers. The brand
equity in baked dessert goods will allow General Mills to create a perceived value proposition that is difficult for competitors to replicate.
• Concerns/Challenges – Primary concern lies in delivering a product that delivers what consumers
expect from Betty Crocker (at the time of consumption). • Must create processes and packaging to gaurantee freshness at the time of
consumption.
• Must also educate consumers to avoid storing, transporting or preparing the product in a manner which could reduce quality.
Concept Evaluation
Respondent # Price Taste UniquenessPurchase
IntentValue
1 2 1 4 3 3
2 5 4 3 5 5
3 5 3 1 4 4
4 2 4 5 4 3
5 4 4 4 4 4
6 5 4 3 4 4
7 2 3 3 3 2
8 3 4 3 3 3
9 5 3 3 3 4
10 4 3 3 3 4
Total Avg. 3.6 3.3 3.2 3.6 3.6
Relatively positive consumer responses, though not perceived as being very unique
Consumer Concept EvaluationProgresso Pronto
Scoring: 1=worst to 5=best
Respondent # Price Taste UniquenessPurchase
IntentValue
1 2 3 5 1 4
2 3 3 1 3 3
3 3 1 2 1 2
4 1 3 1 2 1
5 3 3 5 2 2
6 3 3 5 2 2
7 2 2 3 3 3
8 3 2 4 4 1
9 2 3 3 3 4
10 1 3 3 4 2
Total Avg. 2.3 2.6 3.2 2.5 2.4
Relatively low consumer scores overall. Responses indicate product, however, is somewhat unique
Consumer Concept EvaluationOriental Express
Scoring: 1=worst to 5=best
Respondent # Price Taste UniquenessPurchase
IntentValue
1 3 4 3 4 4
2 5 4 4 4 5
3 4 4 3 3 4
4 4 4 3 4 4
5 4 4 4 5 5
6 3 4 3 4 4
7 4 3 4 3 4
8 5 4 5 5 5
9 4 5 4 4 5
10 5 4 4 5 5
Total Avg. 4.1 4.0 3.7 4.1 4.5
Product very well. Consumer’s value score particularly positive for kids-oriented offering.
Consumer Concept EvaluationFiesta Ench-a-lottas
Scoring: 1=worst to 5=best
Respondent # Price Taste UniquenessPurchase
IntentValue
1 2 1 4 2 3
2 3 2 3 3 3
3 3 2 3 2 2
4 3 2 4 2 3
5 3 2 3 3 3
6 3 2 3 1 2
7 2 1 3 1 2
8 3 2 4 2 2
9 2 1 3 2 2
10 3 2 3 2 1
Total Avg. 2.7 1.7 3.3 2.0 2.3
Low consumer scores.
Consumer Concept EvaluationPillsbury Shepherd’s Pie
Scoring: 1=worst to 5=best
Respondent # Price Taste UniquenessPurchase
IntentValue
1 2 1 3 3 2
2 3 4 3 4 3
3 4 3 3 3 4
4 3 2 2 3 3
5 1 4 3 2 2
6 2 3 3 2 2
7 3 4 3 3 3
8 4 3 4 3 3
9 2 5 3 2 2
10 3 3 3 3 3
Total Avg. 2.7 3.2 3.0 2.8 2.8
Consumer scores are relatively low
Consumer Concept EvaluationBetty Crocker Silver Servings
NOTE: Concept should be retained for further consumer testing. Initial tests did not contain reasonable representation from target consumer group.
Scoring: 1=worst to 5=best
Respondent # Price Taste UniquenessPurchase
IntentValue
1 3 5 4 4 3
2 4 4 3 4 4
3 3 4 3 4 4
4 5 4 3 3 5
5 4 5 4 5 5
6 4 5 4 5 4
7 5 4 4 5 4
8 4 5 4 4 4
9 4 4 3 4 4
10 4 5 5 5 5
Total Avg. 4.0 4.5 3.7 4.3 4.2
Scores are relatively strong. Believe sample uniqueness scores do not accurately represent differential quality from competition
Consumer Concept EvaluationBetty Crocker Single Bakes
Scoring: 1=worst to 5=best
Consumer Concept EvaluationBases Matrix Average Rankings
ConceptAverage
Price
Average
Taste Average Unique
Average Purchase
Intent
Average Value
Overall Average Ranking
Progresso Pronto 3.6 3.3 3.2 3.6 3.6 3.7
Oriental Express 2.3 2.6 3.2 2.5 2.4 2.6
Fiesta Ench-a-lottas 4.1 4.0 3.7 4.1 4.5 4.0
Sheppard’s Pie 2.7 1.7 3.3 2.0 2.3 2.4
Betty Crocker’s Single Bakes
4.0 4.5 3.7 4.3 4.2 4.0
Silver Servings 2.7 3.2 3.0 2.8 2.8 2.9
Scoring: 1=worst to 5=best
• Metrics Utilized For Concept Evaluation
• Three Dimensions (Axes) On (1 – 5 Scale)
– Asset Compatibility• Brand• Distribution Capabilities• Production Capability
– Profitability• Sustained Revenues• Barriers To Entry• Growth Potential• Market Share
– Unserved Needs / Gap Analysis• Current Company Portfolio• Competitive Portfolio• Demographic Trends• Psychographic Trends
Asset
Gap Analysis
Profitability
Concept EvaluationMetric Filter
• Weighting of Three Attribute Dimensions
Unserved Needs
Asset
Compatibility
Profit 25%
35%
40%
• Weighting of attributes determined
by level of uncertainty– Meeting un-served needs and determining
brand fit is more certain (in terms of success) than profitability
– All attributes critical to success of
product launch
Concept EvaluationMetric Filter
Progresso Pronto
Silver Servings
Fiesta Ench-a-lottas
Single BakesOriental Express
Pillsbury’s Shepherd’s
Pie
Brand Scorecard 3 4 5 6 1 2
Production Facilities 3 4 6 5 1 2
Distribution Potential 4 3 5 6 2 1
Total Asset Score 10 11 16 17 4 5
Fiesta Ench-a-lottas and Betty Crocker Single Bakes leverage existing General Mills assets
Concept EvaluationMetric Filter – Asset Compatibility
Scoring: 1=worst to 6=best
(Forced Rankings)
Progresso Pronto
Silver Servings
Fiesta Ench-a-lottas
Single BakesOriental Express
Pillsbury’s Shepherd’s
Pie
Current Portfolio 3 2 5 4 6 1
Competitive Portfolio 4 5 1 6 2 3
Demographic Trends 2 3 4 5 6 1
Psychographic Trends 2 3 6 5 4 1
Consumer Feedback 3 4 5 6 1 2
Total Gap Analysis Score 14 17 21 26 19 8
Concept EvaluationMetric Filter – Gap Analysis
Betty Crocker Single Bakes best capitalizes on an unserved market need.
Scoring: 1=worst to 6=best
(Forced Rankings)
Progresso Pronto
Silver Servings
Fiesta Ench-a-lottas
Single BakesOriental Express
Pillsbury’s Shepherd’s Pie
Growth Potential 3 2 5 4 6 1
Market Size 4 2 5 6 3 1
Product Launch Costs 3 4 5 6 1 2
Barriers to Entry 3 5 4 6 1 2
Competition 2 6 4 5 1 3
Total Profitability Score
15 19 23 27 12 9
Concept EvaluationMetric Filter – Profitability
Betty Crocker Single Bakes are a premium offering and holds the greatest profit potential. We anticipate Fiesta Ench-a-lottas will
generate high profits due to its high pricer per ounce ratio.
Scoring: 1=worst to 6=best
(Forced Rankings)
Progresso Pronto
Silver Servings
Fiesta Ench-a-lottas
Single Bakes
Oriental Express
Pillsbury’s Shepherd’s
Pie
Profitability 15 19 23 27 12 9
Asset Compatibility 10 11 16 17 4 5
Unserved Needs 14 17 21 26 19 8
Total Profitability
Score
Concept EvaluationResults
• Selected Concepts
Fiesta Ench-a-lottas
Betty Crocker Single Bakes
Supporting Research For Selected Concepts
• Kids 10 to 13 – “tweens” – favor four ethnic varieties over American cuisine 1
• Heinz acquired Delimex Foods in August, 2001, to target school lunch market– Weaker brand name than Old El Paso
Supporting ResearchMexican Food – Kid Consumption
Source: 2001 Tweens in America Report, Wharf Research and Center for Culinary Development, November 6, 2001
1. Chinese
2. Mexican
3. Japanese
4. Italian
5. American
Supporting ResearchCakes Consumption
• Recognized trend in UK toward snack market
• Cakes meet consumers needs for lighter and more wholesome sweet snacks (relative to most confections)
Source: “Cakes: Out of the tin and into a lunchbox”, Grocer, p. 53, October 27, 2001
Opportunity to leverage Betty Crocker brand is growing in snacks
Positioning
Product PositioningMethodology
Packaging
Mktg.
Consumer
Price
Placement
The product positioning was based on the five critical factors: Product Placement, Packaging, Marketing, Consumer Attributes, and Price.
Product PositioningFiesta Ench-a-lottas
Packaging
Mktg.
Segment
Price
Placement
Ench-a-lotta’s are targeted at children and teens. The product will be placed in the supermarket where microwave-ready kid’s single-serving segments are found.
Competitors include: Chef Boyardee, Kid’s Kitchen, Ragu Express
Ench-a-lotta’s packaging is similar to Chef Boyardee’s. It will be microwave- ready after the metal pop-top is removed.
Old El Paso branding will be prominently displayed to leverage the significant brand equity already enjoyed in the Mexican food category.
Ench-a-lotta’s will be offered in a 7.5 oz size.
The marketing campaign for Ench-a-lottas will use Old El Paso’s established brand equity.
Advertising through print will communicate the authentic Mexican flavor as well as the ease of preparation. Ench-a-lottas will be shown as fun and tasty way to eat lunch at home or at school.
The target market segment for Ench-a-lottas will be children from the age of 5 to 15. Research and surveys show that Mexican food is popular with kids.
Ench-a-lottas will be priced competitively with single serving Chef Boyardee offerings, at $1.29 for a 7.5 oz. container.
Product PositioningBetty Crocker Single Bakes
Packaging
Mktg.
Segment
Price
Placement
Betty Crocker Single Bakes will be placed in the snack aisle in the supermarket. Competitors include: Sara Lee, Hostess, Otis Spunkemeyer
Betty Crocker Single Bakes will be offered in 3 packs. The product will contain a topping, a utensil and a single serving cake. It will be microwave ready after the top is taken off, and the plastic cover for the bowl is pulled back.
The Betty Crocker branding will be prominently displayed to leverage it’s significant brand equity.
The marketing campaign for Single Bakes will emphasize the wholesome quality and flavor of the Betty Crocker products. Single Bakes will provide the tastiness of Betty’s best offerings with the ease and convenience of a prepared food.
The target market for Betty Crocker’s Single Bakes is working women who are looking for a better solution than a candy bar between meals. Market research has shown that this segment is seeking an alternative to “junk food” for snacking.
Betty’s Single Bakes will be priced competitively with snack alternatives such as candy bars. The suggested price point is $2.69 for the 3 pack offering.
Sales Projections
Methodology
Sales Projection MethodologySummary View
Identification and analysis of comparable launches
Review of existing markets and market shares
Evaluation of GM marketing and distribution
Anticipation of competitor and market dynamics
External Factors
Internal Factors
Annual Projections
Year 1
Year 2 Year 3Year 2
Year 3
Sales Projections
Fiesta Ench-a-lottas
Sales Projections Fiesta Ench-a-lottas – Detailed View
Total Potential Buyers
Competitors
• Households with Kids (5 – 15)
• Lunch Items (not exclusive)
• Mexican Food Consumers
• Larger Portions Repositioned For Men
• EZ Macaroni
• Kids Chef Boyardee
– Ravioli
– Spaghetti
• Lunchables
Relative Product
Type
Brand Strength
Price
“Correction Factors”
Distribution Power
Revenues
Competitor and Market Dynamics
Identification of Potential
Buyer Segments
MarketInfluencers
IdentificationOf Direct
Competitors(Market Analysis)
Revenues (Units & Pricing)
Sales Projections Fiesta Ench-a-lottas – Sales (Year 1)
Distribution Power
BuyerSegments
PurchaseCalculation
Market ShareAnalysis
Revenue(Year 1)
Kids: 40,000,000
Kid Households: 20,000,000
BASE SEGMENT
Percentage of Homes Who Buy “Mexican”
(6 month time-frame)
45%
TOTAL SEGMENT
(0.45) x (20,000,000)
9,000,000 HH
MARKET SHARE
EZ Macaroni: 10 %
Lunchables: 55%
Chef Boyardee: 15%
Spaghettio’s: 5%
OLD EL PASO
17% Market Share of All Mexican Foods
MARKET SIZES
$ 50,000,000 - $150,000,000
7.5%
675,000 HH
CONSUMPTION (monthly)
Repeat+ Repeat Single
(0.34) (0.34) (0.34)
4+ 2 – 4 0 - 2
3 Per Household / Month
24,300,000 Bought
24,300,000
$1.29
X
$31,347,330
Source: “Meat & prepared meals report, Mediamark Research Inc., 1994
“Meat & prepared meals report, Mediamark Research Inc., 1997
Sales Projections Fiesta Ench-a-lottas – Sales (Year 2 and Year 3)
Distribution Power
BuyerSegments
Growth
PurchaseCalculation(Sensitivity)
Market ShareGrowth
(Responses)
RevenueGrowth
9,000,000 HH 7.5%
CONSUMPTION (monthly)
Repeat+ Repeat Single
(0.20 – 0.40) (0.20–0.40) (0.20–0.40)
4+ 2 – 4 0 - 2
2.6 – 3.4 Purchases
Growth (Year 2): 1.03 – 1.10
Growth (Year 3): 1.03 – 1.10
• Growing Ethnic Influence
• Growing Cultural Influence
• Population Growth
4% - 10%
• Growth in Market (No response)
• Growth in Market (New Segment)
• Market Contraction (Price War)
• Market Contraction (Product Into)
Source: “Meat & prepared meals report, Mediamark Research Inc., 1994
“Meat & prepared meals report, Mediamark Research Inc., 1997
Year 2
Year 3
$34,000,000
$35,000,000
675,000 HH
Sales Projections Fiesta Ench-a-lottas – Sensitivity Analysis
20%
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
1 2 3
Sales Projections – Sensitivity Analysis (Monte Carlo Simulation)
Sal
es (
Th
ousa
nd
s)
Baseline50
%
20%
80%
50%
20%
80%
Year 1 Year 2 Year 3
Expected Case – Baseline Projection (mean – 50th percentile – projected sales)
Growth Case – Optimistic Growth Projection (80th percentile projection)
Market Contraction Case – Pessimistic Growth Projection (20 th percentile projection)
Sales Projections
Betty Crocker Single Bakes
Sales Projections Betty Crocker Single Bakes – Detailed View
Total Potential Buyers
Competitors
• Working Women
• Lunches
• Dinner Snacks
• Candy
• Pretzels
• Chips
• Vending Machine Fare
• Popcorn
“Correction Factors”
Relative Product
Type
Brand Strength
Price
Distribution Power
Revenues
Competitor and Market Dynamics
Identification of Potential
Buyer Segments
MarketInfluencers
IdentificationOf Direct
Competitors(Market Analysis)
Revenues (Units & Pricing)
Source: “Meat & prepared meals report, Mediamark Research Inc., 1994
“Meat & prepared meals report, Mediamark Research Inc., 1997
Sales Projections Betty Crocker Single Bakes – Sales (Year 1)
Distribution Power
BuyerSegments
PurchaseCalculation
Market ShareAnalysis
Revenue(Year 1)
Workforce: 190,000,000
% Workforce (Women): 88,350,000
BASE SEGMENT
Bring Lunch From Home
Average: 50%
TOTAL SEGMENT
(0.50) x (88,350,000)
44,175,000 HH
MARKET SHARE
Nothing: 25 %
Candy: 40%
Pretzels: 8%
Chips: 7%
Popcorn: 5%
1%
CONSUMPTION (monthly)
Repeat+ Repeat Single
(0.50) (0.35) (0.15)
4+ 2 – 4 0 - 2
3.70 Per Household / Month
19,613,700 Bought
$ 0.90
X
441,750 HH 19,613,700
$17,652,330
Sales Projections Betty Crocker Single Bakes–Sales (Year 2-3)
Distribution Power
BuyerSegments
Growth
PurchaseCalculation(Sensitivity)
Market Share Growth - Response
RevenueGrowth
44,175,000 HH 1%
CONSUMPTION (monthly)
Repeat+ Repeat Single
(0.20–0.55) (0.15–0.35) (0.10–0.20)
4+ 2 – 4 0 - 2
1.55 – 4.00 Purchases
Growth (Year 2): 1.00 – 1.20
Growth (Year 3): 1.00 – 1.20
• Growing Women Workforce
• Use as Dinner Dessert1% - 3%
• Growth in Market (No response)
•Market Contraction (Product Into)
441,175 HH Year 2
Year 3
$25,000,000
$35,000,000
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
1 2 3
Sales Projections Single Bakes – Sensitivity Analysis
80% 50%
20%
Sal
es (
Th
ousa
nd
s)
Baseline
50%
20%
80%
50%
Year 1 Year 2 Year 3
Sales Projections – Sensitivity Analysis (Monte Carlo Simulation)
Expected Case – Baseline Projection (mean – 50th percentile – projected sales)
Growth Case – Optimistic Growth Projection (80th percentile projection)
Market Contraction Case – Pessimistic Growth Projection (20 th percentile projection)
Next Steps
Next StepsConcept Confirmation
Technical Feasibility Review
Prototype Development
BASES Phase I – Concept Testing
BASES Phase II –In-Home Product
Testing
Test Market
Remaining steps required prior to national product launches
Backup Slides
Competition - WetProduct; Brand
Company Features – Prep
Flavors Meal Target – Market Message
It’s Pasta Anytime;
Classico
•Borden •Pasta & Sauce•Wet•Shelf-stable•Microwave•15.25 oz•$2.99/unit
•Tomato-Beef•Tomato-mushroom
•Lunch•Dinner
•Women•Age 18-49•“harried cooks”
Kid’s Kitchen
Hormel •Wet•Microwave•Cartoon characters
•Cheezy Mac ’N Cheese•Beefy Mac ‘N Cheese•Mini Beef Ravioli•Pizza Wedges – Pepperoni
•Lunch•Snack
•School age children•“Feed Their Bodies, Feed Their Minds”
Ragu Express
•Pasta & Sauce•Wet•Microwave
•Traditional Tomato•Classic Meat Flavor•Sweet Tomato & Garlic
•Lunch•Snack
•School age children•“Real Pasta, Real Sauce, Real Fast!”
EZ Mac Kraft
Competition - FrozenProduct; Brand
Company Features – Prep
Flavors Meal Target – Market Message
Marie Callender’s Bowls
•ConAgra •Taste•Frozen•Microwave•$2.99/unit
•Lemon herb chicken•Country Style Beef Pot Roast•Turkey Breast Medallions & Stuffing
•Lunch•Dinner
Healthly Choice Bowl Creations
•ConAgra •High nutrition•Frozen•Microwave•$2.39
•Chili w/corn bread•Chicken teriyaki; rice•Colonial style chicken pie•Tuna casserole•Chicken breast strips w/mac & cheese
•Lunch •Health conscious•Easy lunchtime solution
Uncle Ben’s Rice & Noodle Bowls
Mars Inc. •98% fat free•Rice or noodles, meat, vegtables•Frozen•Microwave/ Oven
•Chili•Lemon chicken•Chicken fajitas•Thai-curry chicken•Thai-peanut chicken•Jambalaya
•Lunch•Dinner
•Contemporary individuals•Women 25-40•“Satisfy Your Passion for Good Good.”•“Now The Hottest Thing in the Kitchen is in the Freezer”
Competition - FrozenProduct; Brand
Company Features – Prep
Flavors Meal Target – Market Message
Smart Ones Bowls;
Weight Watchers
Heinz •Low calorie•Low fat•Frozen•Microwave
•Lunch•Dinner
Lean Cuisine; Stouffer’s
Nestle USA •Healthy•Frozen
•Roasted Chicken w/Lemon Pepper Rettucini•Fiesta Grilled Chicken
•Dinner “Do something good for yourself.”
Stouffer’s Nestle USA •Serving Sizes of 1, 2, 5 or 9 Frozen
•Macaroni & Cheese•French Bread Pizza•Over 50 varieties
•Dinner “He’ll Love The Taste. You’ll Love That It’s So Good For Him.”
Swanson Vlassic •Frozen •Boneless white meat fried chicken breast•Hungry-Man Boneless White Meat Fried Chicken Breast•Fried Chicken dinner•Fun Feast All White Meat Fried Chicken Kids Dinner
•Dinner “Make New Memories with Swanson”
Competition - FrozenProduct; Brand
Company Features – Prep
Flavors Meal Target – Market Message
Michelina’s Michelina’s •Frozen•Microwave•10oz•$1.99/unit
•Sirloin beef peppercorn•Shrimp alfredo•Jumbo cheese ravioli•Chedder broccoli potatoes•Veg lasagna marinara•Lasagna w/meat sauce
•Meal Replace
Michelina’s Michelina’s •Frozen•Microwave
•Pizza Snack Rolls•Pizza Bagels•Single Serve Pizza
•Snack
Competition - DryProduct; Brand
Company Features – Prep
Flavors Meal Target – Market Message
Cup Noodles
Top Ramen
Nissin •Soup•Add hot water
•Beef•Chicken•Cajun Chicken•Mushroom Chicken•Etc.
•Lunch•Snack
Fantastic •Soup
Spice Hunter •Soup
Near East •Soup
Knorr
RestaurantsCompetitive trends associated with this industry are as
follows:1. Trend towards “quality” fast food chains.2. Disparity in eating “out” within in gender.3. Ethnicity becoming a strong influence in restaurant industry.4. Income also a factor concerning restaurant dining.
• 1) Future of fast-food: Becoming more “upscale”.1
– Boston Market: “take the meal home” concept– “Meal solutions”: ready-to-eat meals at restaurants or groceries– 51% of meals bought at restaurant taken home (of which, 2.1% come
from “fine restaurants”.
• 2) Men more likely to eat at a restaurant versus women.2
– (men = 4.6 meals “out”per week, women = 3.8 meals per week).– Additionally, men = 22% of all meals “eaten out”, vs. 18% for women. – Women consume 14.8 “privately-prepared” meals per week vs. men at
13.9 meals
Restaurants• 3) Ethnicity playing large role in restaurant trends.3
– More preferences and locations for “ethnic-themed” restaurants, especially among “urban-professionals” and “internationals”.
– Most popular ethnic offerings:• Thai
• Japanese
• South American
• Caribbean
• Minority groups tend to spend more on food away from home.3
• Hispanic adults lead all minorities in lunch and dinner (37% vs. 33% for African-Americans and Asians).
• Additionally, tend to order out more.
• Hispanic and African American females are more often “on-premises” patrons than their male counterparts.
• 4) Influence of Income.3
– Individuals with higher household income tend to dine out more.• Managerial and professional occupation households posted the highest per capita
and average total spending away from home ($3,003 and $1,112, respectively).
• Consumers with household income of $75K or more eat an average of 4.9 meals commercially prepared vs. 3.2 for incomes of $15K or less.
Comparative Parameters
Concept Comparative Price-point
Comparative Ounce Size
Progresso Pronto $1.89 16 oz.
Oriental Express $4.17 12 oz.
Fiesta Ench-A-Lottas $1.29 7.5 oz.
Sheppard’s Pie $2.16 8 oz.
Betty Single Bakes $2.55 14 oz.
Silver Servings $3.32 8.5 oz
Consumer Survey
The following slides contain survey questions posed to consumers. This is a
portion of the line of questioning we followed to understand consumer
perceptions of existing and conceptual products
Oriental ExpressProduct:
– The idea behind this product allows for General Mills to tap into the “Lunch-time-on-the-go” arena. This product offering will come in a “wet” form such as noodle or rice with vegetables and a meat. Also, there could be a section of dry noodles to serve as a topping encased on the top of the package. The offering will also come in packaging that has a plastic lid for aesthetic purposes that will be removed for the microwave process. Flavors would include Chicken Lo-Mein, Pepper steak and rice, Orange Chicken and noodles. This item will come in 12 oz packaging and will retail for $4.17.
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Fiesta Ench-a-lottas Product:
– Old El Paso, the world’s favorite brand of Mexican food, has been delivering the great tastes of Mexico to your home since 1917. Now their letting you enjoy a Mexican meal wherever you go with Fiesta Ench-a-lottas. You’ll love these delicious bites of flour tortillas, filled with meats and cheeses and surrounded by Old El Paso’s rich enchilada sauce. These single-serve Mexican meals satisfy your hunger at work, at school or at home with the great taste you’ve come to expect from Old El Paso. Just pop them in the microwave and savor the flavor. Flavors include beef, chicken or cheese. Ench-a-lottas are packaged in a plastic bowl with a vacuum-sealed pull-top lid and a plastic cover for microwaving. Served in 7.50 oz (for children or light eaters) or 7.5 oz packages (for adults seeking full meal). The retail price will be $1.29.
Evaluation: Please rank this concept on a scale of 1 to 5. 1 = very low thru 5 = very high
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Betty’s Shepherd’s PieProduct:
– The Pillsbury Dough Boy has just gotten back from holiday in jolly’ole England and has decided to share with his friends in America the Old World delicacy known as Shepherd’s Pie. This delicious meal-in-itself goes great for lunch or dinner, either way, it is sure to satisfy you hunger. It is loaded with vegetables, meat, and potatoes, but most importantly, it is topped off with a fresh Pillsbury crust just like grandma made when you were little. Just pop them in the microwave and savor the flavor. Each single-serving bowl contains either beef or chicken. Other flavors include chicken and dumplings and beef stew. The package consists of a plastic bowl with a vacuum-sealed pull-top lid and a plastic cover for microwaving. Served in 8oz packages for adult seeking a satisfying lunch or light dinner. The retail price is $2.16.
Evaluation: Please rank this concept on a scale of 1 to 5. 1 = very low thru 5 = very high
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Betty Crocker Silver Servings Product:
– One recent study reported “Many older people, because of chronic medical problems, may require special diets: for example, a low-fat, low-cholesterol diet for heart disease, a low-sodium diet for high blood pressure, or a low-calorie diet for weight reduction. Special diets often require extra effort, but older people often settle for foods that are quick and easy to prepare, such as frozen dinners, canned foods, lunch meats, and others that may provide too many calories, or contain too much fat and sodium for their needs.” Thus, Betty Crocker’s Silver Servings will bring healthy and wholesome staple meals that seniors are accustomed to such as Chicken Noodle Casserole and Hearty Beef Stew. Four lines will be offered: Healthy Low fat, low cholesterol (for hearth disease), Healthy Low Sodium (for high blood pressure), and Healthy Low Calorie (for weight reduction). Served in 10 oz packages for $3.33.
Evaluation: Please rank this concept on a scale of 1 to 5. 1 = very low thru 5 = very high
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Betty Crocker Single Bakes Product:
– “Nobody knows baking like Betty Crocker because for over 75 years, she has delivered trusted advice and quality products to millions of people, making life easier and ever more delicious.” Betty is now preparing some of her most popular pastries for you so that you can enjoy wonderful cakes, brownies and muffins even when you don’t have time to bake them from scratch. The single serving treats will be exactly what you need to get you from meal to meal during a busy day, or they can fill that craving for high quality, rich taste you have late at night. Heat these fresh quick-bake snacks in the microwave and add the pre-made frosting for a fast and tasty snack. Flavors include cinnamon roll, brownie, strudel, chocolate cake, German chocolate cake, lemon cake, vanilla cake and angel food cake. Served in 6 oz packages that retail for $0.99.
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General Survey 1. How would you describe your average work day?
2. What goes through your mind when you decide to eat away from work/school?
3. How would you describe your eating…– Frequency:
– Portions:
– Type of food:
General Survey 4. Where are you usually when you eat…
– Lunch?:
– Dinner?:
5. What kind of words come to mind with …– Lunch?:
– Dinner?:
6. Why do (or don’t) you take lunch to work?
7. What type of food do you take to work for lunch (if you take your lunch?).