Pillsbury Cookie Challenge - Case Study v2

March 26, 2018 | Author: Mihaela Draghiciu | Category: Insight, Brand, Retail, Marketing, Behavior


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1.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 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, behaviors, and preferences towards the product. Our goal is to better understand how marketers can make better decisions, based on different types of consumer research, and to show how the relevant customer insights can help to determine strategies and explore the ways to improve business performance. 1.1. General Mills % General Mills Canada Corporation 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, HaagenDazs, Nature ValleyGreen 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. 1.2. The Canadian Refrigerated Baked Goods Category One of the fourth largest division of GMCC is The Refrigerated Baked Goods (RBG). The convenience and family appeal makes the RBG products to be so appreciated. Pillsbury brand is part of the General Mills portofolio and the leader in the RBG category including a full range of products, such as biscuits, cookies, sweet rolls, pizza and pie crusts. Canadian market doesn’t have a specific marketing strategy, using an adapted US advertising. In terms of the market, Pillsbury was the most profitable segment of General Mills Canada, with refrigerated cookie dough owning 62% of ready-baked-goods sales and yielding 75% category profit. Pillsbury held 85% of the market share and was carried by all major Canadian retailers. However, volume growth, household penetration, and cookie segment growth were all flat. 2. The Problems . RBG in Canada branch performance were not satisfied whereas refrigerated cookies had always been the most profitable product line of its category.Interdependence among its inhabitants.Canadians value a straightforward exchange of information. we will use Hofstede Framework(see exhibit 1)  Individualism: . and a focus on achieving quick results.Higher degree of importance on leisure time.Over the past years. In order to understand these cultural differences. the marketing manager Guillen wants to see the difference between consumer markets of Canada and that of US.Willingness to realize their impulses and desires with regard to enjoying life and having fun. taste. whether it pertains to technology.  Masculinity: . 3. It is also the process of collecting and analyzing customer feedbacks toward a product or a brand. In order to understand the possible reasons of decline in cookie sales.Employees are expected to be self-reliant and display initiatives. through the consumer insights (advertising. .Moderately “masculine” society . family gatherings and life in general. a relatively small propensity to save for the future.People look after themselves and their immediate families. business practices.Value placed on egalitarianism.  Uncertainty Avoidance: . What are consumer’s insights? Consumer insights are learning based on consumer preferences. and also to design a marketing strategy according to it to boost the sales as well as profit of this category.  Indulgence: . .Individualistic culture.“Uncertainty accepting”. attitudes and behavior.  Pragmatism: . act as they please and spend money as they wish. . . Although the volume growth between 2004 and 2006 had remained nearly flat at 1% and the household penetration had fallen to 24% from previous years. or consumer products.Indulgent. current brand messaging of the Pillsbury).Normative society .  Power Distance: . innovative products and a willingness to try something new or different.Great respect for traditions.Work-life balance is likely to take time to enjoy personal pursuits.Easy acceptance of new ideas.Strong concern with establishing the absolute truth: they are normative in their thinking. . . . . Consumer Insights 1. The Consumer insights are used by internal marketing team and a 3 rd party research firms to conduct customer research. The team must conduct a research to gain a better understanding of consumer perceptions beliefs and feelings towards Pillsbury RBG cookies. Recommendations Possible suggestions for Guillen and his team could be to work strategically align with food channels such as food network. 4. • Create a new product for Canadian consumers • More advertise aggressive • Joint Ventures • Mobile phone apps • Sponsorships • Free recipes and coupons . concept test. The qualitative method shows that for mothers. The quantitative study demonstrates that Purchase is impulsive and that use of refrigerated cookie dough increases particularly in household kids. How are consumer insights obtained? Consumer insights are obtained either through quantitative research or qualitative research. affordable and pleasing to children with Pillsbury Cookie 5. 2. experience that is relatively easy. Key Learnings The key learning from the usage and attitude study was that scratch baking is the dominant method of baking cookies in Canada. What types of business challenges can benefit from consumer insights? Business can benefit from consumer insights by analyzing results from research to better align their marketing strategies with consumer needs 3. baking experience is very important. usage and attitude testing. or other food networks that are aired in Canada to demonstrate the happy experience people feel from baking goods from scratch. focus group. creative testing. practical. Exhibit 1: Canada in comparison with United States Canada 80 United State 91 68 68 48 46 52 39 40 62 39 26 .
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