Group 10

INSTITUTE OF RURAL MANAGEMENT ANAND

PGDRM-42 Term II
MMT

CASE: Pillsbury Cookie Challenge

1. Situation Analysis

The case concerns Pillsbury RBG (Ready-Baked Goods), a Canadian company that is suffering
surprisingly poor performance. Mr. Gullien, the marketing manager is under pressure to make
strategic decisions in order to turn the segment around. The RBG’s performance has deteriorated
in recent years, with volume growth of 1% and a 24% drop in household penetration between
2004 and 2006. The refrigerated cookies category was the backbone of RBG’s business,
accounting for 62% of unit sales & 75% of the profit. As a result, improving business success in
that segment has become a big task.

To gain a better market reach Gullien concentrated on understanding differences between

Canadian and American to get consumer insights to know about their attitudes, behaviors and
preferences towards the product.

We have done the following analysis of cases to find out the opportunities that can lead to
increased profit of the company and help in further market penetration.

2. Decision Statement/Problem Statement

Decide the target market segment & the brand messaging that will lead to increased sales for the
company in Canada.

3. Criteria for decision making

 The new marketing strategy should help in boosting the sales.

 It should focus on long-run growth considering the amount of time and money invested in
the research.
 This time the marketing strategy should be specifically focusing on the Canadian Market.

4. Alternatives-

 For Pillsbury, GMCC should change its marketing strategy & this time target those who
consider scratch baking over refrigerated baked goods. Because a major chunk of people
fall into this category.
 The company should target the children as kids play a major role in driving the purchases
in the market, this way it would be helpful to increase the sales.
 Group 10

 Instead, we should target the busy mothers who could be working or homemakers
because ultimately it's the time & convenience to bake that has led Pillsbury in the market
for so long.

Strength - Company has a well competent Weakness- GMCC is currently

marketing & consumer insights that have been able struggling in the Canadian market &
to come up with some new findings to fill the volume growth has been the same & has
market gaps & are working for the overall growth failed to penetrate the Canadian
of Pillsbury. households.

Opportunity- Company already has an 85% market Threat- Company has competitors in the
share in RBG products & therefore it has a huge RBG segment & therefore any
potential to earn a good profit, it just needs to tap marketing move from them can disrupt
that target segment that can lead to increased sales. the market share of Pillsbury.

5. Evaluation of alternatives

 Ideally, Pillsbury has no competition with scratch baking because these two are totally
different, Pillsbury is known for its easy-to-make USP & therefore it should stick to that.
 Though children are a major factor responsible for the purchase the ultimate decision-
makers are the mothers in the household & therefore this could lead to false judgment &
this strategy can backfire.
 Targeting mothers would be an ideal scenario as major purchase decisions related to
kitchen & groceries are taken by mothers also when we talk about time it's the busy
working women/homemakers who really want to serve the family in the best way
possible.

6. Decision/Recommendation-

The case analysis has led us to the conclusion that it is best to target mothers in this case because
their decision has the most impact on the sales. As far as the brand messaging is concerned,
Pillsbury should clearly convey that the products we serve are quick & easy to make, affordable
but really good in quality & are highly associated with the joy of a memorable baking
experience. This will resonate with the Canadian mindset that considers baking as a very special
act of sharing & giving convincing mothers to engage their children into baking using the
Pillsbury products. Highlighting the time saved during the entire baking and cooking process will
serve as a USP for the busy mothers who could be both working as well as homemakers.