Case Summary:

Pillsbury Cookie Challenge

MKT 400 Case Summery

March 10, 2020

Pravin Arjin 500-881-060

Gajan Puvaneswaran 500-952-219
Rachel Tong 500-712-875
Hong Chai Tsang 500-882-497
Binghui (Barry) Wu 500-945-597
Case Summary: Pillsbury Cookie Challenge

Introduction

General Mills Inc. is the world’s sixth-largest food product manufacturer holding a
portfolio of brands including big names such as Pillsbury, Betty Crocker, Cheerios, and Green
Giant. This case is focused on the Pillsbury Refrigerated Baked Goods (RGB) category within
the Canadian branch of General Mills (GMCC). GMCC is a leader in the Canadian packaged
food market, holding top positions in all of the categories in which it competes. With Pillsbury’s
refrigerated cookie product line being the most successful and profitable anchor, the marketing
team of the RGB category conducted extensive qualitative research on their main challenges
with the product line. Our group decided to analyze the “Pillsbury Cookie Challenge” case due
to a collective interest in Pillsbury’s products, mainly their cookies and other popular baked
goods. We were intrigued by the chance to learn about the Canadian food industry, their
business model, and how they stay competitive in the industry. As we begin to explore more
about the RGB category within General Mills, it is evident that the main challenges the
marketing team faces includes stagnant annual volume growth, finding strategies to increase
purchase frequency, updating the overall brand message, and ultimately how to improve volume
growth and household penetration. Additional relevant challenges include ensuring the existing
cookie formula is satisfactory in the Canadian market, identifying the correct consumer
segment, and attracting potential consumers whilst retaining current consumers in order to
reach their objectives.

Opportunities and Challenges 

Opportunities: 
1. Has a large range of distribution available at many major retail outlets?
2. Huge current target segment: mothers in their 30s-40s. 
3. Consumers prefer convenience; 79% of users agree RBG cookies are easy and quick.
4. Children play a prominent role in purchasing decisions. 

Challenges:
1. Although similar, there are minute yet potentially significant differences between the
Canadian and American consumer markets. The impact of these differences has yet to
be fully understood.
2. Creating new marketing initiatives from scratch is a costly affair, whereas leveraging
original ads from America has historically provided stable results.
3. Understanding how to leverage the specific preferences of the Canadian market can be
a difficult challenge without existing research.

Market Research Methods and Techniques  

The mission of the Consumer Insights (CI) is to assist brand teams in developing a
better understanding of the preferences, attitudes, and behaviours of consumers. The focus
group is the most common type of research used at GMCC due to its relatively cheaper cost
and quick turnaround time. The second type of research used at GMCC are concept tests,
which are frequently used for new product development and help develop brand messaging.
Evaluators provide a more accurate alternative to regular concept tests; however, the usage is
more costly from sending physical samples to the evaluators. The company also utilizes
creative testing and packaging tests, which have the same goal for optimizing advertising and
packaging in order to attract more consumers and increase volume growth. The Usage and
Attitudes study aims to survey the frequency of product purchases and use, as well as desirable

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Case Summary: Pillsbury Cookie Challenge

attributes of the products. In order to determine which aspects of the baking experience
resonated best with customers, Pillsbury worked with TerraNova Market Strategies Inc. to
conduct in-home immersions and discovery workshop tests.

Result of The Research  

Although the Usage and Attitude studies yielded similar results to that of American
markets, there were several previously unknown differences. The first and most interesting point
about the target market was that scratch baking was the dominant method of baking cookies in
Canada. Secondly, the top four purchase drivers are the same in both countries, however,
quality is less valued in Canada, and children have a greater influence on purchase decisions.
Both users and lapsed users of the refrigerated cookie dough agreed that the product is very
convenient and can sometimes be an impulse purchase. 

The in-home immersion visits provided the following results:

1. Mothers’ practical ingenuity was shone in the kitchen
2. The baking experience fed the senses and fuelled memories for memorable moments
3. Cookies were particularly special because they were made for sharing
4. All devoted mothers worried about their children first and foremost
5. There was little to no concern about the nutritional value of the product
6. Pillsbury had a sense of magic to it and was considered a shared secret

Main issue

The main issues that the company currently faces are the annual volume growth on
cookie segment is nearly flat, which only 1% and household penetration is fallen. Therefore,
Guillen and his team need to find out the specific marketing strategies to solve the current
issues in order to profitably grow the business going forward.

Conclusion and Decision

In conclusion, Guillen felt confident that the recently performed studies would provide his
team with new and insightful information, as well as the changes needed to be done in the
future. The evident challenges faced based on the results of the research include how the team
can increase purchase frequency and market penetration of the cookies. Finally, he identified
several goals to figure out exactly what kind of consumers to target, what the optimal brand
message should be, and how Pillsbury could communicate this message in a way that would
translate into increased sales.