Cookie

CookieChallenge
Challenge

Section B Group 3
19P086 Harshvardhan Singh
19P088 Kannaiah Balamangal Kumar
19P093 Mareddy Siddhartha Reddy
19P098 Prabhav Santosh Menon
19P099 Prachi Singhal
19P107 Ruchika Badesra
19P118 Tanu Khare
GENERAL MILLS

• Headquartered in Minneapolis,
Minnesota,
• Distribution through retail stores such as
Safeway, Wal-Mart and Costco
• 3 operating segments:
i. US Retail 69%
ii. International 16%
iii. Food service 15%
• Total company revenue for fiscal 2006 was
$11.6 billion, with earnings of $1 billion
 GENERAL MILLS CANADA CORPORATION
• Leader in the Canadian packaged foods market
• GMCC operated autonomously from its U.S. parent, giving
cross-functional business teams full ownership over new
product development, brand strategies and consumer
spending
• Leveraged ads and new products from US to save
developmental costs
• Lower brand budgets as compared to the US
• Unique products for the Canadian market include Oatmeal
Crisp Maple Nut cereal and Pizza Pops snacks
THE CANADIAN BAKED GOODS CATEGORY
• Convenient as they were pre-mixed and required minimal
preparation
• Available in the grocery section of mass merchandisers and
club stores
• RBG category was dominated by Pillsbury, with an 85%
market share
• Moderate annual growth in the last 5 years
• Competitors included Western Bakeries
 PILLSBURY RBG
• Advertisement: the Pillsbury
Doughboy, icon of the ad strategy
played a key role in brand
advertising and messaging
• Popularity: convenience and
family appeal
• Target Consumer: a mother in her
mid-30s to 40s who led an active
and busy lifestyle
• Brand Image: easy and convenient
product solutions that the family
can enjoy together
PILLSBURY REFRIGERATED COOKIES
• Growth: flat 1%
• Household Penetration: fallen to 24% from 62%
• Availability: Multiple flavors & formats (chub and ready-to-bake)
• Advertisement: TV, but adapted U.S. ads with slight modifications for a fraction of
the cost (similar demographics)
• Guillen had 3 options in mind to improve performance:
i. Increase frequency of purchase
ii. Increase household penetration
iii. Combination of both
 Consumer Insights Team
• Help the brand teams to gain a better understanding of the preferences,
attitudes and behaviours of consumers
• Work closely with internal marketing firms and 3rd party research firms to
conduct consumer research

Types of Research

Quantitative Qualitative
 Methods used at GMCC
Focus Groups Concept Test Evaluators Creative Testing

Group of people engage in Consumers presented Participants receive Consumers see different
round table discussions on with product image, samples of products; ads and packaging to
a particular topic of pricing, preparation questions based on study their effectiveness
interest instruction and key pricing, promotion and based on purchase intent,
benefits consumer spending relevance and brand
parameters linkage scores

Use Cases Use Cases

New Product Development New Product Development
Use Cases Use Cases
Brand Messaging Brand Messaging Expected Volume of Product Optimize Advertising and
Promotional Campaigns Product Performance Packaging

<$1000 $2,000 to $4,000 $100,000 <$50,000

 Cookies Usage and Attitude Study
Details Respondents

Users
• Conducted by: Market Tools Purchased in past 12 months
• Objective: Understand the difference between the Canada and US Markets
• Duration: 4 weeks
• Study Details: Lapsed Users
• Screeners Purchased over 12 months ago
• Classification
• Use: Gain insight into brand strength in the marketplace, potential new
Non-users
product ideas and areas where a product can be improved or repositioned.
Never purchased

Results Canada Cookie Method Usage

• Consumer demographics and family structure are similar

Scratch Users
in US and Canada N = 2563
• Scratch baking is dominant method of cookie baking in 61% of total

Canada
• Both users and lapsed users perceive refrigerated cookie N=682 N=418
dough as convenient 7% use all
3 methods
• Cookie purchase is generally an impulse purchase
• Households with kids show increased use of refrigerated Refrigerated Users
N = 1018 N=380
Baking Mix Users
N = 676
cookie dough 24% of total 16% of total
 Purchase Drivers
52 41
Easier than baking cookies from scratch Is a high quality cookie dough
59 29

68 37
Can make them at the spur of the moment Kids like to eat them
68 47

71 28
They taste good Fun activity with the kids
69 41

75 30
are quick to make The kids like to make them
79 42

75 29
They are easy to make Fun thing to bake with kids
79 42

0 10 20 30 40 50

Canada USA Canada USA

Top 5 Purchase Drivers Drivers with Significant Differences

 In-Home Immersion Visits and Discovery Workshops
Details

• Conducted by: TerraNova Market Strategies Inc.

• Objective: Qualitative research to supplement insights gained from the Usage and Attitude study
• Conduct two market research studies:
• In-home immersions – In-home visits; to develop an intimate understanding of personal motivations and
actions as they related to baking Pillsbury cookies
• Discovery workshop - Community-based gatherings; to help consumers express their feelings and examine their
relationship and behaviour toward the Pillsbury brand

Results

• Pragmatic moms look for solutions that are relatively easy, quick, practical, affordable and pleasing to children
• There is a sense of emotional warmth and well-being associated with baking
• Baking cookies is a special experience as there are made for sharing and giving
• Nutritional value was not a concern amongst the mothers
• Some people viewed a Pillsbury product as ‘their little secret’ while some said it might have ‘cheating’ implications
• brand champions tended to be
• Brand Champions are slightly more pragmatic, get-it-done types moms while lapsed users were less secure about their
decision to not do scratch baking
 New Strategy
How to improve cookie sales?

Increase frequency of Increase household Do a combination of

purchase penetration both

Market on these factors:

• ease of making
• quick to make
• tastes good

This will help stimulate purchase drivers and

at the same time add new users and turn
lapsed users.
What consumers should the team target?

Lapsed users who are reluctant to

Working mothers who repurchase despite perceiving
prefer scratch baking but refrigerated cookie dough as easy and
don’t have time. convenient

Refrigerated cookie Reassure them by showing the similarity

dough, chubs especially between scratch banking and using
can give them the sense refrigerated cookie dough
of involved effort lacking
in ready-made products. Advertise the level of customisation
possible for the end cookie
 What consumers should the team target?

Cookie dough purchases Kids play a major role

are impulsive in purchase decisions

• From these insights, packaging attractive to

children can increase sales.
• As kids’ opinions are likely to further drive
impulsive purchases.
 What should their brand messaging be?

Refrigerated
cookie dough -

Cookie you can quickly make at

Scratch baking chubs
from
ingredients Pre mix baking

home anytime, tasty as always. Refrigerated cookie

dough - pre formed

Convenience

• Convenience is inherently understood regarding

Consumer
RBG by users preference

• Emphasise on ‘make’ to attract the make from

scratch customer
 How could they communicate this message in a relevant way to the
consumers in a way that would translate into increased sales?

Communicate to non-
users

‘a shared secret’ message

Scratch Bakers
‘RBG involves effort’
Into

56% who bake 33% who bake

only from from scratch
scratch every month

User
Market using these drivers

• Relatively easy
• Quick
Increase household penetration • Practical
• Affordable
Thank You