• By the end of this presentation you will be convinced that Pillsbury can increase its household penetration by re-engaging with existing users, by adapting to new consumer demands, and by altering the perception of the product in the minds of consumers.

• • • • • • • • •

Background Challenges in the Canadian Market The Pillsbury Sub-Culture Study Results Strengths and Opportunities New Market Segmentation Recommendations Implementation Timeline Conclusion

• General Mills Canada (GMCC)
– 2nd largest division within General Mills International segment – leader in the Canadian packaged foods market – Refrigerated Baked Goods (RBG) is the 4th largest category of GMCC

• Pillsbury dominated RBG category with 85% market share

• Refrigerated cookies represent 62% RBG’s unit sales & 75% category’s profit

General Mill Inc

US Retail


Food Services


Baked Breakfast -RBG Meals Snacks

• Multiple flavours
• Two formats : Chub & Ready-to-bake • Seasonal cookie products for holiday season were sold at a premium • Regular Price $2.99 - $4.99

• Annual volume growth of 1% in past 3 years • Household penetration has fallen to 24% • Assessment of the advertisement revealed the lack of effectiveness for brand recognition and relevance • US Advertising campaigns adapted for Canadian market
– Failed to generate the projected annual growth of 5-7%

• More than 50% households bake cookies from scratch • 32% considered it “Value for Money” • Quality of dough was a concern for many consumers • 31% Canadian population like the flavours offered • 23% said it made the right amount of cookies • 15% consider it the correct size for kids

Mothers • Mid-30s to 40s • Leading an Active & busy lifestyle • Pressed for time • Looking for easy and convenient product

“Why do you like Pillsbury’s cookie products?” • Easy, Quick & Practical • Affordable • Crowd Pleasers (Children’s) • Gratification and Recognition • Little Secret (“Homemade”) • Better Quality Than Ready-Made Products

• Of all the 88% who baked, all recognized the Pillsbury Doughboy • Majority recognized the brand from either TV Commercials or childhood memories • Half of the respondents were aware of the location of Pillsbury cookies in their supermarket • Close to 40% of respondents knew about the cookie products and/or refrigerated products


• • • •

Strong Brand Identification Appealing Experiential Aspect Nostalgic Relationship with Lapsed Consumers Multiple Mediums Available for Baking and Cooking Enthusiasts • Healthy Lifestyles and Dietary Restrictions

New Consumer

Existing Consumer • New Flavours and Offerings • Re-engagement with New Recipes and Tools

Lapsed Consumer • Target Nostalgia • Healthier Options • Trial Packages

(Scratch Bakers, Single Dad, Elderly People, Youngsters)

• Experiential Aspect • Individual Servings • Dietary Restrictions

Product • Kid themed Offerings
– Famous Cartoon Characters (Shrek – Toy Story) – Sports Themed – (Hockey Puck, Football)

• New flavours
– Healthier options : Low Cal, low fat, Sugar-Free – Dietary Restrictions: Gluten free, Low Sodium – New Flavours: Banana Nut, Maple, Etc.

• Pillsbury Baking Tools
– Cookie Cutters (Kids Themed, Sports Themed) – Timer, Oven Mitts, Aprons, Hats – Stencils, Brushes, Rollers

Re-New and Strengthen Relationship with Consumer • Nostalgic and Experiential Aspect
– Happiness Generator and Bonding Agent – Gift Idea

• Celebrity Spokesperson
– Michael Smith / Rachael Ray / Sandra Lee – Easy and Quick Recipes – “Homemade”

• Seasoned Bakers / Cooking Enthusiasts
– Pillsbury Cookbook – Pillsbury Bake-Off – Increase Efforts in Social Media - Foodies

In-Store Display and Packaging • New Custom Refrigerated Display Booth
– Strategically Placed – Leverage Impulse Buying – Increase Visibility with Dough Boy Signage – Include all Pillsbury Branded Items

• Packaging
– – – – Attractive Packaging for Kids Trial Packages (3 Flavours) Size Servings (Individual, Regular, Bulk Chub) Exploit Holiday Theme (Pillsbury Gift Basket, Dough Boy Toys)

Short Term

• Advertisement / Spokesperson • Social Media / Experiential Component • In-store Display & Packaging

Medium Term

Long Term

• Product – Flavours • Healthy and Dietary Restrictive Options

• Pillsbury can increase household penetration by renewing and strengthening its relationship with existing and lapsed consumers • Changing the perception of the product in the minds of the consumer; from food to bonding agent or gift • Appeal to new market segments by acknowledging new 21st century dynamics: healthy lifestyles, dietary restrictions, smaller servings, individual servings, reality tv, “foodies”

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