Professional Documents
Culture Documents
Section 202 Team 4 Jay Curran James Gaskin G.T. Hollett Steve Holley Kurt Knaub Marty Wick
Project Objective
To create and initiate market planning for two shelf-stable, single-serve product lines or product line extensions that will generate substantial incremental revenue over a threeyear sales period
Process Outline
Phase I Phase II Phase III Phase IV
Positioning Positioning
Sales Projections
New Segments Existing Concepts Attribute Importance New Market Space Gap Analysis
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Marketing
Revenue Projection
Macroeconomic Trends
Macroeconomic Data
U.S. Age Demographics
Average age of population is increasing
Over 65 group grew by 14.7M people from 1990 to 1999
100000
Population (000s)
Kids and the baby boomer generation form two of the fastest growing segments.
Source: 2000 Census Bureau Report
Macroeconomic Trends
U.S. Ethnic Demographics
Hispanic and Asian-American ethnic groups have the highest growth rates in the nation
Population (Million)
Despite the fact that Hispanics are only 11% of population and Asian Americans are 4%, the growth of these ethnic populations influences U.S. culture
Asian-American and Hispanic foods represent a fast growing segment due to both population and cultural influence
Source: 2000 Census Bureau Report
Macroeconomic Trends
U.S. Labor & Households
Almost 2/3 of U.S. Households do not have a stay at home adult to allocate their
time to meal preparation Women account for 46.5% of current workforce Total U.S. HH: 105M
30
Single Person HH (Millions)
Dual Income HH (Millions)
25 20 15 10 5 0
Asian-American and Hispanic foods are a growing segment due to both population and cultural influence
Source: 2000 Census Bureau Report
Macroeconomic Trends
U.S. Labor & Households
Fast growing segment of food marketplace.
Analysts currently estimate nutraceutical market at $15 Billion.1 Currently, nutrionally-improved foods account for more than 78% of growth in 35 food categories.2 Growth attributed to large population of aging baby boomers and awareness of age disorders (e.g., osteoporosis)
1.
www.cnn.com/2000/food; January 1, 2000 On your plate,: top food issues for your meals.
2.
http://www.opta-food.com/trends/3tds-ptctpt.html
Macroeconomic Trends
Summary
Statistical Trends and Observations Takeaways
Dual income and single person households are increasing and now account for 2/3 of all U.S. households Hispanics and Asian-Americans are the fastest growing segment of the U.S. and now account for 15% of the total population The average age of the population is increasing (baby boomers). The kid segment is also one of the fastest growing. Women now account for 46.5% of the workforce and is increasing
There are fewer households who have a dedicated family member for meal preparation Opportunities exist in the fastest growing ethnic segments There is a potential need for products which target specific food attributes of the baby boomers and kids An opportunity may exist for lunch meals which target working women.
Microeconomic Data
Microeconomic Data
U.S. Food Expenditure Trends
U.S. consumers are spending less of their disposable income on food during the late 1990s In the past 10 years, supermarkets have experienced a two-fold increase in shoppers who consider a grocery store the primary source for a pre-made dinner (18% of total population)
Supermarkets are increasingly the primary source for pre-made, inexpensive dinners.
Source: Meal Solutions, Food Marketing Institute, 2000
Microeconomic Data
U.S. Food Consumption Lunch at Work
Workplace lunch facts: Bring Lunch from home
Nearly half of American workers are looking for lunch solution to take to work
Source: Brown Baggin It, American Demographics, January, 2001
Microeconomic Data
Meal Preparation Time
As consumers lives have become increasingly hectic, the length of time dedicated to meal preparation has decreased Time dedicated to lunch (both preparation and consumption) has decreased to only 15 minutes
70 60
Preparation Time
60
Americans have less time to spend on meal preparation with lunch being particularly hectic for consumers
Source: Changing Cooking & Dining Habits, www.globalgourment.com, 2000
Microeconomic Data
U.S. Food Attribute Importance
Surveys indicate the top four food attributes for making a purchase are taste, nutrition, product safety, and price.
Very Important Taste Somewhat Important
89%
8%
Nutrition
Product Safety Price Storability
71
71 69 46
25
20 27 38
Microeconomic Data
U.S. Food Attribute Importance
Further research indicates health importance for consumers is typically fleeting The food industry is known to take advantage of this fact through loose nutritional claims of low fat or low sodium products A Food Marketing Institute (FMI) survey found the most definitive health changes were additions to their diet in the form of fruits and vegetables rather than eliminating certain unhealthy aspects in their current meal purchases
While nutrition was identified as a potential driver for food consumption, consumers often dont make their purchase decisions based on this attribute
Source: Nutrition, Food Marketing Institute, 2000
Microeconomic Data
U.S. Food Consumption - Snacks
A significant percentage of Americans snack:
100 90 80 70 60 50 40 30 20 10 0
93%
50% 40%
Regularly
Snack food sales continue to grow. Sales topped $30 billion in 1999 1
Source: Whats in Store, International Dairy Deli Bakery Association, September, 1998 1 Press Release, Snack Food Association, July 19, 2000 (most recent available data)
Microeconomic Data
Nutraceutical Trends
Fast growing segment of food marketplace Analysts currently estimate nutraceutical market at $15 billion Currently, nutritionally-improved foods account for more than 78% of growth in 35 food categories Growth attributed to large population of aging baby boomers and awareness of age disorders (e.g., osteoporosis) Popular in the following forms Beverages (OJ, fruit juice, smoothies, spritzers, etc.) Cereal Meal-replacements (shakes, snacks, etc.)
Source: www.cnn.com/2000/food; January 1, 2000 On your plate,: top food issues for your meals.
http://www.opta-food.com/trends/3tds-ptctpt.html
Microeconomic Data
Summary
Statistical Trends and Observations Takeaways
American workers have a need for a quality tasting, convenient prepared lunch meal
Lunch convenience Health attributes for meals can be subtle. Taste is a true driver for food consumption Snacks represents a robust and growing segment of the market
Time spent for lunch (and other meals) has become increasingly short Nutrition is identified by consumers as an important food attribute, but has less impact in their actual purchasing decision Snacks food sales are growing a represent a significant portion of a typical consumers consumption
Psychographics
Response Average Work Day? Thoughts Meal Freq
1 Constant mtgs and computer work Nice to get away 2X
Survey Output
Meal Size Food Type Eat Where? Description Take Lunch?
Med Lg
L: work D: home
Sporadic work
3x
Med
L: work D: home/out
L: salad D: chicken
3x
Large
Busy
Quickest
4-6x
Small
Chicken breasts, fruits turkey, vegetables Sandwich or Hot Cafeteria Meal & Snacks in between Fast Foods on the road, Hearty meal at home
L: home D: home
L: speed D: speed L: relaxed D: fast preparation with good taste L: speed D: full courses, meat & veggie
3x
Med
4x
Small
Source: These takeaways are derived from consumer interactions. These include surveys and discussions about general and eating behaviors. The survey is included in the Appendix.
Needs Analysis
Brand Review
Approach
Takeaway
Understanding of gaps
Portfolio Overview
Core Demographics and Dayparts Served
Adults
Nature Valley Bowl Appetit Bugles BacOs Chex Mix Progresso Lloyds BBQ Old El Paso Green Giant Pillsbury B.C. dessert mixes B.C. Helpers Ginos/Totinos Haagen Dazs
Yoplait
RTE Cereals
Pillsbury
Pop Secret
Morning
Noon
Night
Family
Fruit Snacks Dunkaroos Squeezits Go-Gurt
Time of day and lifestage factors, while not drivers, help isolate drivers
Kids
UNDERSERVED
Needs Analysis
Taste, Flavors and Nutrition *
BacOs Chex Mix
Ginos/Totinos
Old El Paso
RTE Cereals
Standard
Ethnic
Green Giant
UNDERSERVED
Brand Review
Leverage Opportunities
General Occasions
Brand Betty Crocker Consumer Meanings Quality, baking and cooking, wholesome Easy, quality, baking Vegetables, convenient Mexican, quality Indulgent, ice cream Premium, soup Breakfast, variety of messages Ready-made meals Attempting use with Bowl Appetit Meal Ingred. or Accompaniment Existing offerings OPPORTUNITY Existing offerings Existing offerings Existing offerings Not clear fit Not clear fit Not clear fit Ready-made Snacks
Pillsbury Green Giant Old El Paso Haagen Dazs Progresso Big G and subbrands
OPPORTUNITY
Competitive Analysis
Competitive Analysis
Brands
28
Competitive Analysis
Consideration Set
Broad Options
Consumers meal consideration sets include traditional restaurants and fast food outlets.
ShelfStable
Specific Options
For shelf-stable products consumers are choosing from options within the category.
Consideration sets allow marketers to analyze competitive options and segment consumers based on purchase behaviors
29
Competitive Analysis
Grocery Store Competitor Characteristics
Cup o Noodles Top Ramen Limited Variety
Dry Shelf-Stable
Its Pasta Anytime Kids Kitchen Ragu Express
} } }
Water Based Less Expensive Limited Kids Options Largely Soups and Italian Dishes More Kids Options Large Variety Oil Based Better Tasting Targets Dinner More Expensive
Wet Shelf-Stable
Frozen
Products launched in the grocery store require positioning against the specific attributes of its competitive consideration set
30
Competitive Analysis
Lunch, Dinner and Snack Offerings
Michelinas Stouffers Snacks Marie Callenders Bowls EZ Mac Swanson Michelinas Kids Kitchen Its Pasta Anytime Ragu Express Chef Boyardee Cup Noodles Top Ramen Smart Ones Bowls Lean Cuisine Healthly Choice Bowl Creations Uncle Bens Rice & Noodle Bowls
Standard
Ethnic
Competitive Analysis
Summary Statistical Trends
Statistical Trends and Observations Takeaways
Few ethnic offerings available: Chinese, Indian, Mexican, Thai Many competitors already offer shelfstable Italian products
Marketplace is not meeting the growing demand for ethnic flavors More competitive Italian segment will offer lower profits and smaller growth opportunities Single-serve snacks baked fresh is under developed segment; large growth potential
Shelf-stable products geared towards men and children is an under developed segment; large growth potential
Concept Creation
Concept Creation
Methodology
Unbiased Brainstorming Driven By Collected Data Filtered Concepts Winning Winning Concepts Concepts
Sample output:
Nutraceuticals senior-oriented foods, woman-oriented foods Convenience Cereal bars, drinkable meals, lunch-on-a-stick Ethnic fare Chinese bowls, Mexican meals, Italian pastas, Around-the-world dishes for kids Snack consumption cereal treats, time-of-day sustenance (numerous small snacks which replace meals), popcorn treats Lunch at work refreshing fruit and yogurt, energy bars, roomtemperature meals
Concepts:
Progresso Pronto Silver Servings Fiesta Ench-a-lottas Betty Crocker Single Bakes Pillsbury Shepherds Pie Oriental Express
Logic Filter
Metric Filter
Concept Creation
Concept Ideas
Progresso Pronto Oriental Express
Fiesta Ench-a-lottas
Pillsbury Shepherds Pie Betty Crockers Silver Servings Betty Crocker Single Bakes
Progresso Pronto
Concept
You have enjoyed Progresso Italian soups for years. Now, in addition to the worlds best soups, Progresso brings you a number of quick, hearty meal bowls to warm your heart and satisfy your hunger with the tastes of Tuscany.
Features
Personal microwave-able bowl Ready to heat meals Italian favorites as Roasted Herb Chicken Pasta and Arrabiatta Spicy Pasta Casserole. Old country herbs and spices that you have come to expect from Progresso. Includes a packet of parmesan cheese to be sprinkled over the top of the meal before serving- adding a delightful addition to the old style recipes.
Progresso Pronto
Potential Line Extensions
Extend the Progresso soup lines to create the following meals: Hearty Home style Tomato Pasta, Tomato Basil Pasta Pasta Dinner, Roasted Chicken Italiano with Rice.
Brand
The Progresso brand represents great food, simply prepared, and is the perfect image to develop a line of hearty Italian-influenced shelf-stable meals. The existing following of the Progresso brand will provide an immediate launch pad for Progresso Pronto. It is important to note that the Progresso line successfully markets quality shelf-stable meats in their products. This will be critical in helping consumers bridge the gap to shelf-stable meats.
Progresso Pronto
Needs Addressed
The primary needs addressed with this product offering are the following: General Mills offers a variety of dry cereals, snack bars, and other packaged goods designed for morning or evening consumption. However, with the exception of Bowl Appetit, GM does not have a lunchtime offering. The idea behind this product allows for General Mills to tap into the Lunch-time-on-thego arena and also to leverage the core competencies of General Mills in a new area. Competitors already have an Italian segment developed in the shelf-stable (e.g. Classico and Chef-Boyardee,) ready to eat category, but GM does not currently have an offering. Progresso Pronto gives GM the opportunity to expand the existing consumer perception of the Progresso brand from quality soups with an Italian flair to mean Homestyle Italian products. As such, Progresso Pronto segment (shelf-stable Italian) represents a premium product while the competition focuses mainly on the childrens market. (e.g. Chef-Boyardee)
Progresso Pronto
Communication
The promotion behind Progresso Pronto will differentiate the product from Progresso Soups by showing how they are a meal in a ready-to-eat bowl and compete with the other ready-to-eat, microwave-able products such as Stouffers frozen offerings and Campbells Chunky. However, the advertisements will note that Progresso Pronto is sold in a ready-to-heat and eat container, as opposed to the traditional tin can.
Barriers to Competition
While there are few options available to adult customers in the wet shelf-stable segment, the Progresso brand brings an element of superb quality and taste that is difficult for other companies (even Campbells) to achieve.
Concerns/Challenges
Cannibalization of existing Progresso soups. Progresso Pronto will have to be differentiated in recipe, serving size and presentation from the existing cans of Progresso soup. Additionally, as noted above, competition from companies such as Campbells could come in the form of their soup lines or new Supper Bakes. Potential to damage existing Progresso brand equity. The Progresso brand is a strong insulator that will allow General Mills a defense from much of the competition.
Oriental Express
Concept
The dynamic flavors of Oriental Express will take you back to the storied history of the ancient Asian Continent. General Mills brings Asian cuisine to your table in a convenient, ready-to-heat and eat single serving package. You enjoy all of the international flavor that you love with the added convenience of not having to leave your desk or home.
Features
Through this channel, product offerings will come in a wet form such as noodle or rice with vegetables and meat. Also, there could be a small container of crunchy noodles to serve as a topping encased on the top of the package. The offering will come in packaging with a plastic lid for aesthetic purposes that will cover the true canned top, which will be removed for the microwave process.
Oriental Express
Potential Line Extensions
Some of the possible offerings would be the following: Chicken Lo-Mein, Pepper steak and rice, Orange Chicken and noodles, Thai Spring Noodles with Chicken, etc. Complimentary products such as Asian noodles, garnishes and teas.
Brand
Oriental Express will be a new brand. It wouldnt be appropriate to have this concept fall under the Betty Crocker brand or other existing brand umbrellas. As opposed to leveraging an existing brand, creating the Oriental Express brand will be expensive. However, in light of the fast-growing popularity of Asian food, the long-term benefits of developing a new brand can be significant.
Oriental Express
Needs Addressed
The primary needs addressed with this product offering are the following: General Mills offers a variety of dry cereals, snack bars, and other packaged goods designed for morning or evening consumption. However, with the exception of Bowl Appetit, GM does not have a lunchtime offering. The idea behind this product allows for General Mills to tap into the Lunch-time-on-thego arena and also to leverage the core competencies of General Mills in a new area. With consumer preferences trending toward Asian food (Chinese, Thai, etc.), General Mills can capitalize on the trend with this new product.
Communication
The promotion behind Oriental Express will introduce full-flavored, Asian food into the shelf-stable market. The advertising will show how the individual servings are a meal in a microwave-able, ready-to-heat bowl. The advertising will differentiate Oriental Express from the already available and popular noodle-based dry products in this category. (e.g. Nissin, Cup-o-Noodles) There is a possibility of co-marketing with the Iron Chef television program as a way of tapping into the popularity of this Asian Cooking program. For example, using the Iron Chef show to advertise the concept and generate interest
Oriental Express
Barriers to Competitors
There is little opportunity for GM to quickly erect barriers. The best opportunity exists only if GM can spend substantially to create strong consumer associations between the brand and quality Oriental food.
Concerns/Challenges
We look at this offering to encounter the following barriers: The cost of creating and marketing a new brand instead of marketing under the Betty Crocker name, or Pillsbury name. Encountering brands such as La Choy and Chun King which already have a head start on GM. Other frozen food product offerings from Healthy Choice, Lean Cuisine, Uncle Bens that feature oriental-style entrees that, again, have a lead over GM concerning products in the market. Other wet offerings that exist (Chef Boyardee, Campbells, etc.)
Fiesta Ench-a-lottas
Concept
Your kids will love these delicious bites of flour tortillas, filled with meats and cheeses and surrounded by Old El Pasos rich enchilada sauce. These single-serve meals bring the flavors of Mexico to your school home with the great taste youve come to expect from Old El Paso. Just pop them in the microwave and enjoy your meal.
Features
Single-serving ready-to-heat bowls of enchiladas style meals. Bite-sized flour tortilla pockets surrounded by Old El Pasos popular enchilada sauces. Pockets contain one of three fillings: beef, chicken or cheese. Ench-a-lottas are packaged in a plastic bowl with a vacuum-sealed pull-top lid and a plastic cover to be used while heating in the microwave. Served in 7.50 oz. bowls to appeal to children or light eaters. (Potential future packaging:15 oz packages for adults seeking full meal.)
Fiesta Ench-a-lottas
Potential Line Extensions
New flavors can be established to address different consumer segments/needs: a. Spicy/ Hot- to appeal to adult customers b. Green Chili- rich sweet flavor c. Taquitos- similar concept with crunchy taco chips to add after cooking
Brand
The Old El Paso brand is perfect for launching this new line of Mexican specialty meals. Families love Old El Paso as evidenced by the fact that it is the number one selling brand of Mexican foods. The Ench-a-lotta name will allow GM to enter a childrens market, thereby growing the existing customer base to include a whole new group of lifetime customers.
Fiesta Ench-a-lottas
Needs Addressed
The primary needs addressed with this product offering are the following: Allows GM to meet growing demand for ethnic flavors in childrens markets Shelf-stable, single-serve products are convenient for storage and quick and easy to prepare. Consumer demand for meat flavors and sustenance in shelf-stable, single-serve products
Communication
The promotion behind Fiesta Ench-a-lottas will target the childrens market with catchy cartoon-based fun advertisements. Additionally, a web-site will be created allowing kids to join (with parental approval) the Wanna-lotta kids club! The advertising will show how the individual servings are a meal in a microwave-able, ready-to-heat bowl.
Fiesta Ench-a-lottas
Barriers to Competition
Leveraging the brand of Old El Paso, with the marketing and distribution of General Mills, gives GM an excellent opportunity to create barriers within consumers minds similar to those established by ConAgra with the Chef Boyardee offerings. ConAgra does not currently have a strong Mexican brand. Old El Pasos brand serves as an initial barrier to competitors like ConAgra, with the ability to deliver a wet, shelf-stable offering. Heinz, with the acquisition of Delimex, holds knowledge of Mexican frozen food market and distributes what is considered by some to be a higher-quality product. However, no competitor currently offers a shelf-stable, single-serve Mexican product.
Concerns/Challenges
The primary challenge with delivering on market needs and delivering a successful offering will be in effectively selling the quality, flavor and safety of shelf-stable meat products. As noted, Con Agra has been extremely successful with the Chef-Boyardee line of pasta-based wet meat products. A principal goal we have is to educate the customers as to the Fiesta Ench-a-lotta offering as a substitute for current incumbent offerings in the childrens wet shelf-stable category.
Features
Single-serving ready-to-heat bowls of Sheppards Pie. Pillsbury Sheppards Pies are packaged in a plastic bowl with a vacuum-sealed pull-top lid and a plastic cover to be used while heating in the microwave. Served in 15 oz packages for adults seeking satisfying lunch or light dinner.
Brand
This product will be marketed under the well-established Pillsbury brand name which most American households associate with fine breads and crust brought to them by the Pillsbury. Pillsbury is well known and will help to reduce education costs and reduce customers concerns over quality.
Communication
Focus on food like grandma made and Pillsbury dough boy. Pillsbury Sheppards Pie will be communicated to males looking for easy meals to prepare. A satisfying meal with meat, potatoes, and crust will be stressed to garner interest.
Concerns/Challenges
A primary challenge will be introducing Sheppards Pie into the shelf-stable category. Customers may have concern for how shelf-stable the product is with its high number of ingredients. The challenge with the product is to clearly show how it is different from soups on the market as well beef stews already available. A key will be to produce a crust that will bake in the microwave in a short amount of time.
Features
Silver Serving meals will be packaged in small 7.5oz. personal portions that will be just the right amount for a senior meal. Additionally, Silver Servings will be introduced in accordance with the FDAs stated senior health issues in mind. We will offer the following three attributes: Low fat, low cholesterol (for hearth disease) Low Sodium (for high blood pressure) Balanced meal (with calcium, iron, protein, etc.) Traditional, non-spicy flavors such as Chicken Noodle Casserole and Hearty Beef Stew will be featured.
Brand
The Betty Crocker label is the perfect brand to reach the aging baby boomers. The brands popularity was founded in the post-war era when many of todays seniors were highly impressionable youngsters. Additionally, todays seniors were the foundation of the success of the Betty Crocker Cookbooks and, as noted on the Betty Crocker website, the cookbook is now in its 9th edition (and) has sold more than 30 million copies, making it one of the all-time best-selling cookbooks in the world.[1]
[1] Betty Crocker Website, http://www.bettycrocker.com/meetbetty/mb_tsob2.asp
Communication
The promotional campaign will be twofold.
It will include a push marketing campaign celebrating the joint product development of recipes and ingredients with a respected gerontological program such as The Gerontology Institute and the American Association of Retired People (AARP.) The push strategy would be to speak with physicians to have them recommend Silver Servings as a healthy option for their aging patients. Additionally, there will be a pull marketing campaign through traditional media outlets. The traditional media will target both the younger seniors who are responsible for their own meal purchases as well as the middle-aged children who make many of the meal decisions for senior parents. Both of these campaigns will feature the taste, health and convenience of Betty Crocker Senior Servings.
Concerns/Challenges
Competition could come from other single serve lines already in the shelf-stable market. Of particular note is the Healthy Choice line of products. While there is substantial competition, the Betty Crocker name will be a major foundation in growing the Silver Servings franchise and serve as a powerful force in developing a loyal following. Some consumer research has shown that cost is the primary driver when seniors are making meal choices. If the research proves accurate, this price-sensitivity could put undue profit pressure on the Silver Servings line.
Features
Cakes are sold in three-packs. Each cake package contains a sealed cover containing Betty Crocker icing or spread and a plastic spread utensil. Cakes are moist and fresh tasting upon microwaving. Flavors include chocolate cake or yellow cake (each with chocolate icing), strawberry, coffee, German chocolate and more.
Brand
The Betty Crocker brand is the natural home for this concept. The existing brand will keep product introduction costs to a minimum and provide a natural advertising platform.
Communication
Focus on rewarding women for their hard work. The quality of the product will allow overcome the communication to women, thus allowing for male consumption as well. The offering will offer convenience to consumers. As an alternative to actually baking the product, a buyer can pick up a package of pre-prepared cakes for consumption at home, at the office or on the go.
Concerns/Challenges
Primary concern lies in delivering a product that delivers what consumers expect from Betty Crocker (at the time of consumption).
Must create processes and packaging to gaurantee freshness at the time of consumption. Must also educate consumers to avoid storing, transporting or preparing the product in a manner which could reduce quality.
Concept Evaluation
9
10
5
4
3
3
3
3
3
3
4
4
Total Avg.
Scoring: 1=worst to 5=best
3.6
3.3
3.2
3.6
3.6
Relatively positive consumer responses, though not perceived as being very unique
9
10
2
1
3
3
3
3
3
4
4
2
Total Avg.
Scoring: 1=worst to 5=best
2.3
2.6
3.2
2.5
2.4
Relatively low consumer scores overall. Responses indicate product, however, is somewhat unique
9
10
4
5
5
4
4
4
4
5
5
5
Total Avg.
Scoring: 1=worst to 5=best
4.1
4.0
3.7
4.1
4.5
Product very well. Consumers value score particularly positive for kids-oriented offering.
9
10
2
3
1
2
3
3
2
2
2
1
Total Avg.
Scoring: 1=worst to 5=best
2.7
1.7
3.3
2.0
2.3
1
2 3 4 5 6 7 8 9 10
2
3 4 3 1 2 3 4 2 3
1
4 3 2 4 3 4 3 5 3
3
3 3 2 3 3 3 4 3 3
3
4 3 3 2 2 3 3 2 3
2
3 4 3 2 2 3 3 2 3
Total Avg.
Scoring: 1=worst to 5=best
2.7
3.2
3.0
2.8
2.8
NOTE: Concept should be retained for further consumer testing. Initial tests did not contain reasonable representation from target consumer group.
9
10
4
4
4
5
3
5
4
5
4
5
Total Avg.
Scoring: 1=worst to 5=best
4.0
4.5
3.7
4.3
4.2
Scores are relatively strong. Believe sample uniqueness scores do not accurately represent differential quality from competition
3.6 2.3
3.3 2.6
3.2 3.2
3.6 2.5
3.6 2.4
3.7 2.6
Fiesta Ench-a-lottas
Sheppards Pie Betty Crockers Single Bakes Silver Servings
4.1
2.7 4.0 2.7
4.0
1.7 4.5 3.2
3.7
3.3 3.7 3.0
4.1
2.0 4.3 2.8
4.5
2.3 4.2 2.8
4.0
2.4 4.0 2.9
Concept Evaluation
Metric Filter
Metrics Utilized For Concept Evaluation Three Dimensions (Axes) On (1 5 Scale)
Asset Compatibility
Brand Distribution Capabilities Production Capability
Profitability
Sustained Revenues Barriers To Entry Growth Potential Market Share Current Company Portfolio Competitive Portfolio Demographic Trends Psychographic Trends
Asset
Concept Evaluation
Metric Filter
Weighting of Three Attribute Dimensions 25%
Weighting of attributes determined by level of uncertainty
Profit
Asset Compatibility
35%
Meeting un-served needs and determining brand fit is more certain (in terms of success) than profitability All attributes critical to success of product launch
40%
Unserved Needs
Concept Evaluation
Metric Filter Asset Compatibility
Progresso Pronto Silver Servings Fiesta Encha-lottas Single Bakes Oriental Express Pillsburys Shepherds Pie
Brand Scorecard
Production Facilities
10
11
16
17
Fiesta Ench-a-lottas and Betty Crocker Single Bakes leverage existing General Mills assets
Concept Evaluation
Metric Filter Gap Analysis
Progresso Pronto Current Portfolio Competitive Portfolio Demographic Trends Psychographic Trends Consumer Feedback Total Gap Analysis Score Scoring: 1=worst to 6=best (Forced Rankings) Silver Servings Fiesta Ench-alottas Single Bakes Oriental Express Pillsburys Shepherds Pie
3 4 2
2 5 3
5 1 4
4 6 5
6 2 6
1 3 1
2
3
3
4
6
5
5
6
4
1
1
2
14
17
21
26
19
Concept Evaluation
Metric Filter Profitability
Progresso Pronto Growth Potential Market Size Product Launch Costs Barriers to Entry Competition Total Profitability Score Silver Servings Fiesta Ench-alottas Single Bakes Oriental Express Pillsburys Shepherds Pie
3 4
2 2
5 5
4 6
6 3
1 1
3
3 2
4
5 6
5
4 4
6
6 5
1
1 1
2
2 3
15
19
23
27
12
Betty Crocker Single Bakes are a premium offering and holds the greatest profit potential. We anticipate Fiesta Ench-a-lottas will generate high profits due to its high pricer per ounce ratio.
Concept Evaluation
Results
Progresso Pronto Profitability Asset Compatibility Unserved Needs Total Profitability Score Silver Servings Fiesta Encha-lottas Single Bakes Oriental Express Pillsburys Shepherds Pie
15 10 14
19 11 17
23 16 21
27 17 26
12 4 19
9 5 8
Selected Concepts
Supporting Research
Mexican Food Kid Consumption
Kids 10 to 13 tweens favor four ethnic varieties over American cuisine 1
1. 2. 3. 4. 5. Chinese Mexican Japanese Italian American
Heinz acquired Delimex Foods in August, 2001, to target school lunch market
Weaker brand name than Old El Paso
Source: 2001 Tweens in America Report, Wharf Research and Center for Culinary Development, November 6, 2001
Supporting Research
Cakes Consumption
Positioning
Product Positioning
Methodology
Placement
Packaging
Price
Mktg.
The product positioning was based on the five critical factors: Product Placement, Packaging, Marketing, Consumer Attributes, and Price.
Consumer
Product Positioning
Fiesta Ench-a-lottas
Ench-a-lottas are targeted at children and teens. The product will be placed in the supermarket where microwave-ready kids single-serving segments are found. Competitors include: Chef Boyardee, Kids Kitchen, Ragu Express Placement Ench-a-lottas packaging is similar to Chef Boyardees. It will be microwave- ready after the metal pop-top is removed. Old El Paso branding will be prominently displayed to leverage the significant brand equity already enjoyed in the Mexican food category. Ench-a-lottas will be offered in a 7.5 oz size.
Packaging
Price Ench-a-lottas will be priced competitively with single serving Chef Boyardee offerings, at $1.29 for a 7.5 oz. container. Mktg.
The marketing campaign for Ench-alottas will use Old El Pasos established brand equity. Advertising through print will communicate the authentic Mexican flavor as well as the ease of preparation. Ench-a-lottas will be shown as fun and tasty way to eat lunch at home or at school.
Segment
The target market segment for Ench-a-lottas will be children from the age of 5 to 15. Research and surveys show that Mexican food is popular with kids.
Product Positioning
Betty Crocker Single Bakes
Betty Crocker Single Bakes will be placed in the snack aisle in the supermarket. Competitors include: Sara Lee, Hostess, Otis Spunkemeyer Betty Crocker Single Bakes will be offered in 3 packs. The product will contain a topping, a utensil and a single serving cake. It will be microwave ready after the top is taken off, and the plastic cover for the bowl is pulled back.
The Betty Crocker branding will be prominently displayed to leverage its significant brand equity. Packaging
Placement
Price Bettys Single Bakes will be priced competitively with snack alternatives such as candy bars. The suggested price point is $2.69 for the 3 pack offering. Mktg. The marketing campaign for Single Bakes will emphasize the wholesome quality and flavor of the Betty Crocker products. Single Bakes will provide the tastiness of Bettys best offerings with the ease and convenience of a prepared food.
Segment
The target market for Betty Crockers Single Bakes is working women who are looking for a better solution than a candy bar between meals. Market research has shown that this segment is seeking an alternative to junk food for snacking.
Sales Projections
Methodology
External Factors
Review of existing markets and market shares Anticipation of competitor and market dynamics Evaluation of GM marketing and distribution
Annual Projections
Year 1 Year Year 2 2 Year Year 3 3
Internal Factors
Sales Projections
Fiesta Ench-a-lottas
Sales Projections
Fiesta Ench-a-lottas Detailed View
Identification of Potential Buyer Segments Identification Of Direct Competitors (Market Analysis) Market Influencers Revenues (Units & Pricing)
Price
Competitors
EZ Macaroni
Brand Strength
Relative Product Type Distribution Power
Revenues
Households with Kids (5 15) Lunch Items (not exclusive) Mexican Food Consumers Larger Portions Repositioned For Men
Correction Factors
Sales Projections
Fiesta Ench-a-lottas Sales (Year 1)
Buyer Segments Market Share Analysis Purchase Calculation Revenue (Year 1)
BASE SEGMENT
Kids: 40,000,000 Kid Households: 20,000,000
MARKET SHARE
EZ Macaroni: 10 % Lunchables: 55% 675,000 HH 24,300,000
CONSUMPTION (monthly)
Repeat+ (0.34) 4+ Repeat (0.34) Single (0.34)
$1.29
OLD EL PASO
17% Market Share of All Mexican Foods
MARKET SIZES
$ 50,000,000 - $150,000,000 7.5%
$31,347,330
Source: Meat & prepared meals report, Mediamark Research Inc., 1994
Sales Projections
Fiesta Ench-a-lottas Sales (Year 2 and Year 3)
Buyer Segments Growth Market Share Growth (Responses) Purchase Calculation (Sensitivity) Revenue Growth
9,000,000 HH Growth (Year 2): 1.03 1.10 Growth (Year 3): 1.03 1.10
7.5%
675,000 HH
Year 2
$34,000,000
CONSUMPTION (monthly) 4% - 10%
Growth in Market (No response) Growth in Market (New Segment) Market Contraction (Price War) Market Contraction (Product Into) Repeat+ Repeat Single
Year 3
$35,000,000
Source: Meat & prepared meals report, Mediamark Research Inc., 1994 Meat & prepared meals report, Mediamark Research Inc., 1997
Sales Projections
Fiesta Ench-a-lottas Sensitivity Analysis
Sales Projections Sensitivity Analysis (Monte Carlo Simulation)
$50,000 $45,000 $40,000 $35,000 $30,000
50%
Sales (Thousands)
80%
20%
50%
Baseline
20%
1 Year 1 2 Year 2 3 Year 3
Expected Case Baseline Projection (mean 50th percentile projected sales) Market Contraction Case Pessimistic Growth Projection (20th percentile projection) Growth Case Optimistic Growth Projection (80th percentile projection)
20%
$25,000 $20,000
80%
Sales Projections
Betty Crocker Single Bakes
Sales Projections
Betty Crocker Single Bakes Detailed View
Identification of Potential Buyer Segments Identification Of Direct Competitors (Market Analysis) Market Influencers Revenues (Units & Pricing)
Price
Competitors
Candy
Brand Strength
Relative Product Type Distribution Power
Revenues
Correction Factors
Source: Meat & prepared meals report, Mediamark Research Inc., 1994 Meat & prepared meals report, Mediamark Research Inc., 1997
Sales Projections
Betty Crocker Single Bakes Sales (Year 1)
Buyer Segments Market Share Analysis Purchase Calculation Revenue (Year 1)
BASE SEGMENT
Workforce: 190,000,000 % Workforce (Women): 88,350,000
MARKET SHARE
Nothing: 25 % Candy: 40% 441,750 HH 19,613,700
Pretzels: 8%
Chips: 7% Bring Lunch From Home Average: 50% Popcorn: 5%
CONSUMPTION (monthly)
Repeat+ (0.50) 4+ Repeat (0.35) Single (0.15)
$ 0.90
44,175,000 HH
$17,652,330
Sales Projections
Betty Crocker Single BakesSales (Year 2-3)
Buyer Segments Growth Market Share Growth - Response Purchase Calculation (Sensitivity) Revenue Growth
44,175,000 HH Growth (Year 2): 1.00 1.20 Growth (Year 3): 1.00 1.20
1%
441,175 HH
Year 2
$25,000,000
CONSUMPTION (monthly) 1% - 3%
Growth in Market (No response) Market Contraction (Product Into) Repeat+ Repeat Single
Year 3
$35,000,000
Sales Projections
Single Bakes Sensitivity Analysis
Sales Projections Sensitivity Analysis (Monte Carlo Simulation)
$50,000 $45,000 $40,000
Sales (Thousands)
$35,000 $30,000
80% 50% 50% 80% 50%
Year 2 2
20%
Year 3
Expected Case Baseline Projection (mean 50th percentile projected sales) Market Contraction Case Pessimistic Growth Projection (20th percentile projection)
20%
Next Steps
Next Steps
Concept Confirmation
Technical Feasibility Review BASES Phase I Concept Testing
Prototype Development
BASES Phase II In-Home Product Testing Test Market
Backup Slides
Competition - Wet
Product; Company Brand
Its Pasta Anytime; Classico Borden
Features Prep
Pasta & Sauce Wet Shelf-stable Microwave 15.25 oz $2.99/unit
Flavors
Tomato-Beef Tomato-mushroom
Meal
Lunch Dinner
Kids Kitchen
Hormel
Cheezy Mac N Cheese Beefy Mac N Cheese Mini Beef Ravioli Pizza Wedges Pepperoni
Traditional Tomato Classic Meat Flavor Sweet Tomato & Garlic
Lunch Snack
Ragu Express
Lunch Snack
EZ Mac
Kraft
Competition - Frozen
Product; Company Brand
Marie Callenders Bowls ConAgra
Features Prep
Taste Frozen Microwave $2.99/unit
High nutrition Frozen Microwave $2.39
Flavors
Lemon herb chicken Country Style Beef Pot Roast Turkey Breast Medallions & Stuffing
Chili w/corn bread Chicken teriyaki; rice Colonial style chicken pie Tuna casserole Chicken breast strips w/mac & cheese Chili Lemon chicken Chicken fajitas Thai-curry chicken Thai-peanut chicken Jambalaya
Meal
Lunch Dinner
ConAgra
Lunch
Mars Inc.
98% fat free Rice or noodles, meat, vegtables Frozen Microwave/ Oven
Lunch Dinner
Contemporary individuals Women 25-40 Satisfy Your Passion for Good Good. Now The Hottest Thing in the Kitchen is in the Freezer
Competition - Frozen
Product; Company Brand
Smart Ones Bowls; Weight Watchers
Lean Cuisine; Stouffers Stouffers
Features Prep
Low calorie Low fat Frozen Microwave
Healthy Frozen
Flavors
Meal
Lunch Dinner
Heinz
Nestle USA
Roasted Chicken w/Lemon Pepper Rettucini Fiesta Grilled Chicken Macaroni & Cheese French Bread Pizza Over 50 varieties Boneless white meat fried chicken breast Hungry-Man Boneless White Meat Fried Chicken Breast Fried Chicken dinner Fun Feast All White Meat Fried Chicken Kids Dinner
Dinner
Nestle USA
Dinner
Hell Love The Taste. Youll Love That Its So Good For Him. Make New Memories with Swanson
Swanson
Vlassic
Dinner
Competition - Frozen
Product; Company Brand
Michelinas Michelinas
Features Prep
Frozen Microwave 10oz $1.99/unit
Flavors
Sirloin beef peppercorn Shrimp alfredo Jumbo cheese ravioli Chedder broccoli potatoes Veg lasagna marinara Lasagna w/meat sauce
Pizza Snack Rolls Pizza Bagels Single Serve Pizza
Meal
Meal Replace
Michelinas
Michelinas
Frozen Microwave
Snack
Competition - Dry
Product; Company Brand
Cup Noodles Top Ramen Nissin
Meal
Lunch Snack
Restaurants
Competitive trends associated with this industry are as follows:
1. 2. 3. 4. Trend towards quality fast food chains. Disparity in eating out within in gender. Ethnicity becoming a strong influence in restaurant industry. Income also a factor concerning restaurant dining.
Restaurants
3) Ethnicity playing large role in restaurant trends.3
More preferences and locations for ethnic-themed restaurants, especially among urban-professionals and internationals. Most popular ethnic offerings:
Thai Japanese South American Caribbean
4) Influence of Income.3
Individuals with higher household income tend to dine out more.
Managerial and professional occupation households posted the highest per capita and average total spending away from home ($3,003 and $1,112, respectively). Consumers with household income of $75K or more eat an average of 4.9 meals commercially prepared vs. 3.2 for incomes of $15K or less.
Comparative Parameters
Concept
Progresso Pronto Oriental Express Fiesta Ench-A-Lottas
Comparative Price- Comparative Ounce point Size $1.89 $4.17 $1.29 16 oz. 12 oz. 7.5 oz.
Sheppards Pie
Betty Single Bakes Silver Servings
$2.16
$2.55 $3.32
8 oz.
14 oz. 8.5 oz
Consumer Survey
The following slides contain survey questions posed to consumers. This is a portion of the line of questioning we followed to understand consumer perceptions of existing and conceptual products
Oriental Express
Product:
The idea behind this product allows for General Mills to tap into the Lunchtime-on-the-go arena. This product offering will come in a wet form such as noodle or rice with vegetables and a meat. Also, there could be a section of dry noodles to serve as a topping encased on the top of the package. The offering will also come in packaging that has a plastic lid for aesthetic purposes that will be removed for the microwave process. Flavors would include Chicken Lo-Mein, Pepper steak and rice, Orange Chicken and noodles. This item will come in 12 oz packaging and will retail for $4.17.
Evaluation:
Please rank this concept on a scale of 1 to 5. 1 = very low thru 5 = very high _____ Price _____ Taste _____ Unique _____ Purchase Intent _____ Value
Fiesta Ench-a-lottas
Product:
Old El Paso, the worlds favorite brand of Mexican food, has been delivering the great tastes of Mexico to your home since 1917. Now their letting you enjoy a Mexican meal wherever you go with Fiesta Ench-a-lottas. Youll love these delicious bites of flour tortillas, filled with meats and cheeses and surrounded by Old El Pasos rich enchilada sauce. These single-serve Mexican meals satisfy your hunger at work, at school or at home with the great taste youve come to expect from Old El Paso. Just pop them in the microwave and savor the flavor. Flavors include beef, chicken or cheese. Ench-a-lottas are packaged in a plastic bowl with a vacuum-sealed pull-top lid and a plastic cover for microwaving. Served in 7.50 oz (for children or light eaters) or 7.5 oz packages (for adults seeking full meal). The retail price will be $1.29.
Evaluation:
Please rank this concept on a scale of 1 to 5. 1 = very low thru 5 = very high _____ Price _____ Taste _____ Unique _____ Purchase Intent _____ Value
Evaluation:
Please rank this concept on a scale of 1 to 5. 1 = very low thru 5 = very high _____ Price _____ Taste _____ Unique _____ Purchase Intent _____ Value
Evaluation:
Please rank this concept on a scale of 1 to 5. 1 = very low thru 5 = very high _____ Price _____ Taste _____ Unique _____ Purchase Intent _____ Value
Evaluation:
Please rank this concept on a scale of 1 to 5. 1 = very low thru 5 = very high _____ Price _____ Taste _____ Unique _____ Purchase Intent _____ Value
General Survey
1. How would you describe your average work day?
2. What goes through your mind when you decide to eat away from work/school?
General Survey
4. Where are you usually when you eat
Lunch?: Dinner?:
Dinner?:
7. What type of food do you take to work for lunch (if you take your lunch?).