1 Executive Summary

2 Introduction
3 Situational Analysis
4 Proposed Marketing
Objectives
5 Proposed Marketing Mix,
Strategy and Tactics
6 Controls
7 Conclusion
8 References
1.0 Executive Summary
Ivan Guillen is the Marketing Manager of the Refrigerated Bakes Good (RBG) at General
Mills Canada Corporations (GMCC). GMCC is the Canadian segment of the General Mills
Inc. (GMI) and is the largest division in the international segment of the GMI. GMI is the 6th
largest food product manufacturing company in the world by having food products in more than
100countries.Total revenue of the company in 2006 was $ 11.6 Billion. Refrigerated Baked
Products (RBG) is the fourth largest category of the GMCC but in the last year few years this
category
haven’t shown much progress. In the RBG cookie is the backbone of the company. Cookie
product
line makes the 75% profit of this category. Hence when RBG cookie performs well than this
category
performs well and so is the vice versa. In the last three years the annual growth of the cookies
segment is just 1% which is far less than the company wants from this category. Moreover
the house hold penetration has also fallen to 5-year low. The company is looking for the 5%-
7% annual growth but the cookie growth in Canada is not more than 1%. In February 2007,
Ivan Guillen has to present RBG new business plan to senior leadership and for this purpose
he wants to know about the taste issues, marketing and the advertising campaigns of his division
especially Pillsbury cookie. He wants to do a research so that he can know the consumer
preferences of the Canadians and how much they are different from the US consumers as nearly
all
the advertising campaigns are leveraged from the US segment of the company which is GMI.
2.0 Introduction
The Canadian Pillsbury RBG (Ready-Baked Goods) line is experiencing disappointing
performance, and the marketing manager at GMCC (General Mills Canada Corporation) is under
pressure to make a strategic decisions that will help turn around the segment. The marketing
manager has engaged the help of the consumer insights team to conduct market research studies
that will shed light on consumers and their attitudes, behaviours, and preferences towards the
product. One of the world's leading food companies, General Mills operates in more than 100
countries and markets more than 100 consumer brands, such as Yoplait, Pillsbury, Haagen-Dazs,
Nature Valley Green Giant, and more. Headquartered in Minneapolis, Minnesota, the company
operates in three segments: US Retail, International and Food service Representing 69 per cent
of total sales, the US Retail segment is the largest of the three. General Mills Canada Corporation
(GMCC) is a subsidiary of General Mills. With annual sales of 566 million US$, GMCC is a
leader in the Canadian packaged foods market and the second largest division within the
International segments. The Canadian division is split into four business units: breakfast, baked
goods, meals and snacks. The Canadian Refrigerated Baked Goods Category is one of the fourth
largest division of GMCC is The Refrigerated Baked Goods (RBG). The convenience and family

3.0 Situational Analysis

The Canadian experience Pillsbury ready pastry cookie performing less than stellar
performance, and the marketing manager is under pressure to contribute to strategic decisions
that will turn around the segment. Refrigerated Baked Goods (RBGs) performance has not
been promising over the past two years. The volume growth between year 2004 and 2006 had
remained nearly flat at 1%. Household penetration had fallen to 24% from the previous years.
Hence, improving the business performance of this category was the biggest challenge that
confronts Ivan, the marketing manager.
Guillen’s goal is to understand the differences between the Canadian and U.S. consumers,
in order to understand how to reach the Canadian market effectively. GMC employed market
research company Market Tools to conduct a Usage and Attitude Study of the customer
regarding the RBG Cookies and to understanding the brand and product perceptions in the mind
of customers. Also to understand whether the Pillsbury Baking Experience vibrated with the
customers or not. Market Strategies to conduct are In-Home Immersions and Discovery
workshop. The results and insights can be used to help GMCC to increase both purchase
frequency and market penetration of RBG in Canadian households. The In-Home immersions
were aimed to understand the consumer preferences, actions
and motivations related to the particular product. In the research the mothers in houses were
asked to purchase the Pillsbury cookie ahead of time and bake it during the visit. The main theme
of this activity is to understand the real life view of the relationship of consumer and brand by
looking at the family, kitchen type and the rituals associated with the product.
The Discovery Workshop is being conducted outside the houses and collaborative in
nature. The research was designed to give a natural comfortable environment to the customers so
that they can share their thoughts, experiences and issues about the product. Several techniques
of customer experience, mapping and role-playing is used in order to understand the customers’
relationship and behavior towards the Pillsbury Brand.
Consumer insight (CI) team help to better understand the preferences, attitudes, and
behaviors of customers and find new or better ways to satisfy their needs. CI team must work
closely with internal marketing teams and 3rd party research firms to conduct consumer research.
Once research is conducted, results are analyzed and recommendations are provided to the brand
team.
As the research revealed later in the case, that there were some significant differences
between the USA and Canadian customer behaviour which the company never took into
consideration before designing a marketing program or product offering. The consumers in
Canada like to do their baking from scratch and hence it makes the target market a bit different
compared to that in US. The target market in Canada should be mothers who are working, where
it helps them save a lot of time and also personalize the cookies till a point. Another target
should
be the kids, whom play a major role in purchase decision in Canada. Hence, they should be one
of the main targets.
3.1 ASSESSMENT TOOLS
According to the case study, we had discussed that the suitable assessment tools to be used is
the SWOT analysis & Porter’s five basic forces. This tool would able to identify and evaluate the
various alternatives available in order to decide what action to take regarding the marketing plan
for Pillsbury.
 SWOT Analysis
Strengths
 Known as innovative.
 Quick & Easy to make.
 Brand awareness is high
 Great Taste.
 Strong R&D department
 Established products
 Convenient, especially when value/price factor added.

Weaknesses
 In Canada the majority of households prefer to bake cookies from scratch and
Pillsbury is perceived as "cheating" Product commonly out of stock
 Product awareness not increasing through advertising

Opportunities
 Complementary product
 Kid requests is a major purchase driver in Canada. Kids should be the primary
target
 Canadian moms should be the secondary target
 Ability to move to higher visibility

Threats
 Help firms understand how customers view their products
 Help a firm identify gaps or a niche in the market
 Extend the brand into new uses and new segments
 Mothers who bake from scratch. For her, using Pillsbury has a "cheating"
Implication

PORTER’s Five Forces

Threat of new entrants
The threat of new entrants porter created affects the competitive environment for
Pillsbury. A high threat of entry means new competitors are likely to be attracted to the
profits of the industry and can enter the industry with ease. New competitors entering the
marketplace can threaten or decrease the market share and profitability of Pillsbury and
may result in changes to existing product quality or price levels. Threat of new entrants’
porter devised when there is very low barriers to entry.

Rivalry among existing competitors

High intensity of rivalry means competitors are aggressively targeting each other’s
markets and aggressively pricing products. This represents potential costs to all
competitors within the industry. High intensity of competitive rivalry can make an
industry more competitive and decrease profit potential for Pillsbury. On the other hand,
low intensity of competitive rivalry makes an industry less competitive and increases
profit potential for Pillsbury.

Bargaining power of suppliers

The idea is that the bargaining power of the supplier in an industry affects the
competitive environment of Pillsbury and influences its ability to achieve profitability.
Strong suppliers can pressure Pillsbury by raising prices, lowering product quality, and
reducing product availability. All of these things represent costs to Pillsbury. A strong
supplier can make an industry more competitive and decrease profit potential of
Pillsbury. On the other hand, a weak supplier, one who is at the mercy of the buyer in
terms of quality and price, makes an industry less competitive and increases profit
potential for the buyer.

Bargaining power of buyer

Buyer bargaining power refers to the pressure consumers can exert on businesses
to get them to provide higher quality products, better customer service, and lower prices.
Strong buyers can pressure Pillsbury to lower prices, improve product quality, and offer
more and better services. A strong buyer can make an industry more competitive and
decrease profit potential of Pillsbury.
Threat of substitutes
The availability of a product that the consumer can purchase instead of the
industry’s product. A substitute product is a product from another industry that offerssimilar
benefits to the consumer as the product produced by the firms within the industry.
The availability of a substitution threat effects the profitability of Pillsbury because
consumers can choose to purchase the substitute instead of the Pillsbury’s product. The
availability of close substitute products can make an industry more competitive and
decrease profit potential for the firms in the industry.

4.0 MARKETING OBJECTIVES

The proposed marketing objective in entering the Canadian market to enhance the business can
be by building brand awareness to the Canadian market, having an extraordinary launching
sensation to attract Canadian consumers, attract the targeted customers, improvise the
stakeholder relationships, enhancing customer relationship, and improve internalon the targeted
customer, achieve the goal in increasing sales towards pointing the targeted
market.

5.0 Proposed Marketing Mix Strategy and Tactics

 5(i). Product
To improvise the business, Pillsbury should expand the idea by introducing healthy and
different flavors own baked cookies dough using the demography of targeted Canadian
market. Selecting the right target market will help them to enhance their businesses in further.
As cookies are the most favorite item for kids hence, they can narrow towards Canadian kids.
When time is the limitation, Pillsbury can be the tool of assistant, to help the Canadian
market to try the new product enhancement. No artificial preservative, gluten free cookies
dough with multiple flavor based on customer’s preference can be introduced to the Canadian
market as their likelihood of the product is low. Design of the product should be attractive
and follow the Canadian market culture in order to capture the business goal in foreign
market.

5(ii) Place
Pillsbury must determine the specific location to reach their targeted market in
allowing them to reach the product easily. Availability of the product in all places is the
major part of marketing and product should be available in all grocery chain, leading
retailers including in the kiosks in airports, terminals and online purchasing site in
Canadian market. These places are most convenient and easy for anyone to consume the
products. Even the targeted people will also be able to identify the availability of the
product.

5(iii) Promotion
Upon failure from the first attempt, Pillsbury should hire some advertising agency in
Canadian market to design the ads according to Canadian market culture. This will help
them to reach the targeted consumer easily. Telecast those ads during prime time, which
will attract more people to consume the product. Do a live demo on the bake cookies in
hypermarket & supermarkets and let them taste immediately. This will help to realize the
efficiency of the product and Pillsbury can sell that item on the spot. Have attracting packaging
to pull their attention as it will help them to do self promote among family
members and peers.

5(iv) Pricing
Before introducing the item in Canadian market, the marketing unit of Pillsbury
should do a research of pricing method practiced here. At the beginning, Pillsbury should
give a reasonable pricing as this involves kids and they should be able to afford it. Apart
from that, have discounts during festive season or sell for a promo/ combo price for
purchases in bulk happens. This will help them to grow a reputable remark on Pillsbury
product. or sell for a promo/ combo price for purchases in bulk happens. This will help
them to grow a reputable remark on Pillsbury product.

6 Controls
After analyzing these case studies, we can advise GMCC to look into some of the controls so that
it may result favor to GMCC:
1. GMCC should come out with a product that fits Canadian taste and preferences instead of
using the same type of product that have been introduced to USA market. 2. In order to attract
the emotional point of the mothers, GMCC should also design an
advertisement that also involves kids. This kind of ads can give a sensitive and emotional
touch to mothers and also families.
3. GMCC should focus in delivering the quality, benefits and the ease in using when
introducing or advertising the products. This can help to being a better reach among
consumers.
4. On of that, GMCC can induce more customized recipes option for consumers. This is to
encourage the consumers to buy more and try new recipes using the products.
5. GMCC can also look into designing some attractive packaging for the product that can
pull consumers towards the products when it is displayed in shops.

7 Recommendations

The recommended plan of action should be to include Canadian consumer preference in

the product and the marketing techniques. The team could create a new version of the
product (innovations) that require additional ingredients to create or enhance standard
mix that fits Canadian consumers. New product should be designed that allows baking
cookies from the scratch. This way the Pillsbury cookies can appeal non users the ones
who prefer bake from scratch because they feel it more authentic. Besides that, adding
recipes to the packaging can give the bakers a change to customize their own end result.
Ads of the product should be designed to encourage kids to bake it and it will be enough
to satisfy them. They will be the key factor in attracting their mother to get one or bake
something for them. If that doesn’t work than they can put gifts for kid in the rappers ofthe
product to encourage them to influence their parents to buy the Pillsbury cookies.

8 Conclusions
GMCC must implement new marketing plan and strategies in order to have an advantage
on the competitors and also in order to achieve the profit targeted. In accordance with the market
analysis outcomes, GMCC should concentrate on the techniques’ which will help to obtain the
interest and loyalty of the kids and working mothers as they are the purchasing power of the
market. Moreover, a great brand message and a strategy to communicate such as add campaign
will always add in extra point to meet the requirement of consumer satisfaction.