Pillsbury WAC

MKT – 505: ADVANCED AND APPLIED BUSINESS RESEARCH Name: Shahid Iqbal Registration #: BD-37/2011 Section: MBA (Evening) Topic: WAC (Pillsbury Cookie Challenge) Submitted to: Dr. Huma Amir Date: 04-03-2013 EXECUTIVE SUMMARY This case deals with the research analysis of the market conducted by the company General Mills Canada Corporation to determine the key variables of the target customers so that they can develop a strategy to improve the performance (sales) of the Pillsbury RBG (Refrigerated Baked Goods) category. In this research the company was looking for the consumer preferences regarding use, taste and purchase of the RBG cookies. Furthermore the desired attributes of the product and brand image (as perceived by the consumer) were also looked at in the research. The research was qualitative and consists of two phases (1) Group Surveys (Screeners) (2) Ethnographic Studies. What we analyze from the research and the case is that the company was focusing too much on the product and wasn’t taking the end consumers into account. Moreover, the company's target market wasn’t right, as they were only targeting the women and had forgotten the most important need initiators i.e. the Kids. The company should redesign their marketing programs (ATL and BTL) and incorporate the “customers need” in it. New products for the Canadian Market should be developed and the use of advertising campaigns from the USA should be used only when it incorporates all the needs and desires of the end customers.

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INTRODUCTION ABOUT THE CASE STUDY General Mills Canada Corp (Parent: General Mills Inc; category: International segment) established in 1954 and is the leader in packaged food markets. The company has 4 business units which are baked goods, breakfast, snacks and meal. Furthermore each unit is further divided into 12 segments. This case is about the research study conducted by Ivan Guillen (Marketing Manager – RBG products) to understand what steps the company must take to cope with the flatter volumes of RBG Dough Cookies and what should the company do to grow the business profitably. STATEMENT OF THE PROBLEM Management Problem: To devise such a marketing strategy focusing the consumer behaviour, so as to boost the company sales and increase the household penetration. Short Term Management Goals: To increase the sales of the RBG Cookies. Long Term Management Goals: To increase the household penetration by customizing product offerings around the customer needs which will help the company to achieve sustainable long term growth. Marketing Research Problem: Following are some of the key points the company wants to check through the research process. •

To check the similarities or differences between the USA and Canadian markets by: i.

Analyzing the usage and attitudes of the customer regarding the RBG Cookies.

ii.

Understanding the brand and product perceptions in the mind of customers. 2

•

To understand whether the Pillsbury Baking Experience resonated with the customers or not. CAUSES OF THE PROBLEM

The company did this research because they wanted to know why the company (even leading the foods market) was facing problems of flatter volume growths and low household penetration. Ivan being the Marketing Manager failed to analyze this issue on his own and therefore opted to go for research to get the insights of what customers are looking for. In the case, we can see that the company’s RBG segment was highly dependent upon the performance of the RBG Cookies (Pillsbury Refrigerated Cookies) because this constitutes of 62% of the category’s sales volume (in units). Even with the market leadership in this category the company’s sales growth was 1% per year with a household penetration fallen to 24% in recent past years. GMCC (General Mills Canada Corp) even with autonomous operations for product development, brand strategies and consumer spending, leveraged new products and advertising campaigns from the USA markets, which is what, led the company to problems. As the research revealed later in the case, that there were some significant differences between the USA and Canadian customers which the company never took into consideration before designing a marketing program or product offering. The Company’s RBG Cookies target market were women in their mid 30’s and the values the company offering is taste and ease. I looked at the kisses advertisement on the internet (http://www.youtube.com/watch?v=b-2XRraaDXo) and I can only see the Pillsbury Doughboy throwing kisses away and the narrator in the background narrating the taste of the cookie. It was totally a product focused ad and it lacked the customer/personal touch completely. As seen in the 3

research that the company is missing the most important target markets “the kids” in their marketing ads and so as the family as a whole. Furthermore, baking should be represented as special and memorable experience and it must be delivered accordingly. MARKETING RESEARCH PROCESS The marketing research was conducted in two phases (1) Group Surveys (2) Ethnographical Research. (1) Group Surveys (Usage and Attitude Study): This was conducted by the research company MarketTools with the Customer Insights Department of GMCC. The main objective of this research is to understand the usage behaviors and attitudes of the consumer (regarding the product) in order to find the similarities and differences between the USA and Canadian customers. The research company used the “Screeners” method to select the participants through a set of questions either individually or over the phone. It was done to divide the customer into three categories: (a) Users – purchased RBG cookies during the past 12 months (b) Lapsed Users – had purchased RBG cookies 12 months before (c) Non-users – never purchased RBG cookies. The survey was quantitative in nature. Following were some key findings from the research study.

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Exhibit # 05

Findings Scratch Baking

Interpretations

Implications

is more

Most of the people in Canada

The company must look

common in

like baking from the very start

into their product

Canada as

(scratch) either because they

proposition and convert

compared to the

love baking or the other

the convenience-only in

US (56% in

alternatives aren't good

baking to a memorable

Canada vs. 22%

enough.

baking experience.

Canada and US Cookie Method Usage

in US)

Exhibit # 07

Findings Canada USA Diff

Interpretations

Implications The advertising strategy

Likeness of the brand is

wasn't targeting their

lower in Canada as

specific needs which need

compared to the US

to be catered by the

"Like the 45%

52%

-7%

brand" company. The company is leveraging "You like the a lot of products from US flavors that

31%

40%

-9%

Flavor likeness is low which is not helping the

are offered" company.

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Again the product leveraging from US is done without understanding the Products marketed in "It's similar to

taste/usage requirements of Canada weren't up to the

homemade

the Canadian Market. The 31%

36%

-5%

mark (in terms of flavor

cookie

company must do a and homemade

dough"

thorough analysis to experience). understand the taste preference of the consumers. Brand awareness is low. Consumer satisfaction and Low connectivity of

delight factor is missing.

brand with the

The company must look

consumers

into these and incorporate

"For my own 30%

39%

-9%

indulgence" those in the ATL and BTL marketing programs. The brand messaging The RBG cookies aren't

conveyed through

considered as the quality

advertising should also

substitute for scratch

include health and

baked cookies.

nourishment aspects of the

"Is a highquality cookie

29%

41%

-12%

dough" cookies as well.

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People in Canada are more into scratch baking "Is like

The company needs to do a and the RBG cookies as

homemade

thorough analysis of the 28%

35%

-7%

currently marketed by

cookie

taste preferences of GMCC wasn't close

dough"

Canadian consumers. enough to their taste preferences.

The company should look "Makes the right amount

23%

33%

-10%

of cookies"

The no of cookies in a

at the family demographics

pack for the consumers

and the meal size for the

aren’t satisfactory

RBG cookies the families are using.

Since quality, quantity is "Helps you

Consumer Research about of prime concerns of the

create a

the taste, preferences of the 19%

24%

-5%

family that is why the

happy/warm

cookies and family product wasn’t able to

home"

dynamics are required. satisfy the customers.

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Findings Non Exhibit # 08

Lapsed Users

User

Interpretations

Implications

Users s Both users and lapsed Hence convenience "Is so easy, you

users are convinced with

can make them

the quickness of the

is not the only 92%

86%

58%

criteria to increase

in a spur of the

cookies. Most non-users

moment"

are also convinced with

household penetration. this attribute as well. "Is an easy way to make cookies

89%

82%

46%

shouldn't be

without a

are convinced but the product focused it

mess" "Is good when I am in a

majority of non users must highlight 86%

73%

36%

weren't. The reason what key benefits might be the

hurry" "Is easy to

the product 83%

82%

45%

clean up" "Can be kept in hand for when

Advertising Users and lapsed users

unawareness of the proposes for the product utility. customers.

80%

74%

48%

needed"

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Users, Lapsed users and

The company must

the non users weren't

undergo thorough

convinced. Specialty in

analysis and

the sense that the quality

identify the key

and taste preferences

attributes the

weren't up to the level the

product must have

product should be called

(to make it

as special. No one is using the

special).

"For making something

48%

31%

30%

special"

mentioned recipes on the package. The reason

Multiple usages of

might be the writings

the product should

were inappropriate,

also be

incomplete or the lack of

communicated via

people faith on the

advertising as well.

"There are recipes on 16%

17%

14%

package that I use" recipes printed on packages. People are more "I use the dough in my

10%

4%

19%

own recipes"

comfortable with their

Quality is the key

own recipes of dough and

concern here as

aren't using the Pillsbury

well.

dough in their recipes.

Other Findings

Interpretations

Implications 9

Purchases of cookies are Understanding that core emotion and Cookies purchases

led by emotions and

are impulsive

feelings and were not

feelings behind the purchase of the cookies. planned. Increase in purchase

The company has to redesign their

of RBG cookies

Kids are the most

marketing campaign with a family touch

especially among

important need drivers

into it. It shouldn’t be product focused and

household with

and purchase motivators.

must convey the benefits it offers to the

KIDS.

entire family as a whole.

(2) Ethnographical and Discovery Workshop Research: Even after gaining information from the surveys about the usage and attitude patterns of the consumers/customers in Canada, Pasato (Manager Customer Insights – RBG section - GMCC) suggested to do a qualitative survey to get a better understanding of the beliefs and feelings of customers regarding the Pillsbury RBG Cookies. The usage and attitude tests helped in understanding differences between the US and Canada markets, but this test will the company to check the brand experience “Pillsbury Baking Experience” resonated with the customers. The research study was conducted with TerraNova Strategies Inc. and two methods were used (a) InHome research (b) Discovery workshops. The In-Home immersions were aimed to understand the consumer preferences, actions and motivations related to the particular product. This study is also called as Ethnographical Research. 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 10

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 similar to the Ethnographical research; the only difference being it is conducted outside the houses and was 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 behaviour towards the Pillsbury Brand. Following are some key findings from the research study. Findings Moms are looking

Interpretations

Implications

Practicality and kids’

The company must highlight all these

happiness are the most

benefits to the consumers by offering the

important concerns for

right products and the value must be

the moms.

communicated clearly through the ads.

for solutions that are practical, affordable, easy and pleasing to the kids. The baking experience is Families’ emotional spreads smile on faces

The unique baking experience has to be

and fills happiness in the

resonated with the Pillsbury brand as well.

attachment with cookies. house.

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The current ads and packaging of RBG Brand Users and

The lapsed users were

Cookies weren't communicating the

Lapsed Users (all

less confident over the

nourishment factors the product was

devoted moms) have

quality and the

offering. Moms are very keen about the

different concerns

nourishment attributes of

quality and nourishing attributes when it

about the products.

the product.

comes for the kids. This has to be added to the USP's of the product.

Hypothesis from the Research: Following are some hypothesis; I developed from the observations of the research. Relationship Attributes

with Consumer

Implications

Preferences This has always been the USP of the product and the Convenience

More is better company should adhere to it.

Quality and The Company wasn’t communicating these factors, that Nourishment

More is better the target customers "MOMS" were looking for.

Values Customers will always look for ways to add differentiation to the conventional baking recipes. If the Multi-usability

The higher the

of the Product

better.

product is designed in a way that it can be used in a no. of different recipes then automatically the use of product Flavor Offerings

-

will increase and it will drive the sales higher. Well flavor is something very unique to every consumer so understanding of the Canadian Consumers’ taste 12

preferences (in the macro prospect) is of key importance for the company

RECOMMENDED SOLUTIONS After looking at the researches and creating a hypothesis, I came up with the following suggestions for the Pillsbury RBG Cookies. 1. GMCC should design its own marketing campaigns and products and avoid leveraging

them from the USA market. This can be done only in cases when the product fits entirely as per the preferences of consumers (in Canada). 2. The company should change its “product focused approach” and adopt a “consumer

centric approach” in all its marketing campaigns and product offerings. 3. The target market as assumed by the company was not right; it also includes the Kids

because they are the main drivers for the purchase of RBG cookies. The element of entertainment and interest should be induced in ads for the kids. This will definitely increase the impulsiveness in the Mom’s purchases which are based on emotional attachment with the pleasure of kids. In short the ads must exhibit the warm baking experience for the entire family. 4. Convenience isn’t the only attribute in the product the consumers were looking at. The

quality, nourishment factors, ease in use and multi-usability are also important concerns for the consumers. The company must communicate all of them through ATL and BTL effectively. 13

5. Rigorous research about the consumer style of baking and taste preferences are to be

carried out before any offering. 6. More products should be offered (in the RBG section) which have customized recipes

options for the consumers. This will definitely enhance the overall baking experience for the customers. 7. Brand communication and awareness are to be carried out effectively even if the

company needs to change the 4 P’s of marketing or the packaging of the product.

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REFRENCES 1. Malhotra, N. K., & Dash, S. (2010). Marketing Research, An Applied Orientation. (6 ed.). Pearson Prentice Hall. 2. Kotler, P., Keller, K. L., Koshy, A., & Jha, M. (2009). Marketing Management, A South Asian Perspective (13 ed.). Delhi, India: Pearson Prentice Hall.

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