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Title: A1258586529Xlfzr


1
Bowl Appètit!
Section 1 Team 5 Julie Biederman Brenna
Copeland Tina Bacon Krebs Abigail Pachon Nancy
Roman Laurie Streitmatter
Return to Locker 521
2
Agenda
  • Situation Analysis
  • New Product Growth Strategy
  • Product Concept Betty Crocker Lunch Pail
  • Product ConceptSnack Bowl Appetit
  • Appendix

3
General Mills
  • Revenue for quarter ending 8/01/01
    1,771,200,000 (consistent with previous
    quarters)
  • Complementary resources gained from Pillsbury
    acquisition
  • Company focus on innovation, consumer convenience
    and expanded production distribution
  • Strong earnings growth over past 5 years

4
General Mills Brand Equity
  • Betty Crocker Since 1920, Americans have
    trusted Betty Crocker for quality, good taste and
    value.
  • Fruit Roll-Ups, Fruit By the Foot Brands
    successfully targeting kids since 1982 by
    incorporating fun, interaction, innovative
    shapes, flavors, colors and packaging.
  • 90-95 household penetration
  • Pillsbury Doughboy Global icon whose smile and
    cheery disposition transcend language and
    cultural barriers.
  • Nature Valley Granola Bars- Brand associated with
    being a 100 natural source of energy, popular
    with adult and kid consumers as both a light meal
    and a snack.

5
General Mills Partner Relationships
  • Cereal partnership with Nestle-Cereal Partners
    Worldwide
  • 2 cereal company worldwide
  • 75 international markets
  • Joint Venture with Pepsico-Snack Ventures Europe
  • 1 Snack company in continental Europe
  • Joint Ventures represented 10.66 of 2000 sales

source General Mills annual report
6
General Mills Consumer Relationships
  • Strong brand loyalty aids market penetration
  • Number 1 or 2 market positions in virtually every
    category in which it competes
  • 2001 Betty Crocker Meals sales 841.9 million
  • Consumers are willing to pay a premium
  • For Bowl Appetit, high indices apply to consumers
    with incomes of over 40,000 in most cases
    source Nielsen Panel Data

7
Bowl Appetit Positioning
  • Target Market/Customers
  • Psychographic target is a busy adult (men and
    women, parent, professional, etc)
  • Advertising and promotional target seems to focus
    more specifically on busy moms/homemakers with
    school-aged children
  • Single serve convenient lunch bowl

8
Current Bowl Appetit Competitors
  • Shelf stable
  • Chef Boyardee, Maruchan, Kraft Easy Mac, Ragu,
    Hormel, Spice Hunter etc.
  • Frozen
  • Healthy Choice, Stouffers, Lean Cuisine etc.
  • Fast Food
  • Chain restaurants
  • Work/school cafeterias
  • Home cooking/fresh foods

9
SWOTBowl Appetit Strengths
  • Convenient
  • No refrigeration required
  • Disposable and self-contained
  • Strong Brand Equity (through Betty Crocker
    through Bowl Appetit)
  • Attractive packaging
  • Consumers like product name 1
  • Supported by full General Mills resources

1 Source Depth interviews with consumers. See
Exhibits 1 2.
10
SWOTBowl Appetit Weaknesses
  • High sodium content
  • Inconsistent consumer preparation
  • too runny or too dry
  • Complicated preparation instructions
  • Fill-line difficult to see
  • Confusion over pre-heating the water
  • Serving size inadequate for larger appetites
    (men, dinner portions, etc)
  • No meat and few veggies/fruit

Source Depth interviews with consumers. See
Exhibits 1 2.
11
SWOTBowl Appetit Opportunities
  • Expand target consumer base
  • To include children and/or men
  • To include meals other than lunch
  • Enhance and clarify brand image
  • Emphasize healthy aspects of product
  • Improve quality/taste of product
  • Introduce more spicy and/or ethnic flavors
  • Capitalize on partnerships and other
    complementary General Mills products
  • Clarify store placement
  • Specific aisles, move up on shelf, etc.

12
SWOTBowl Appetit Threats
  • Consumer preference shifts
  • Consumers may refuse to pay premium for
    convenience
  • Introduction of more appetizing shelf-stable meat
    product could grab share
  • Tele-commuting trend may reduce size of target
    market

13
Agenda
?
  • Situation Analysis
  • New Product Growth Strategy
  • Product Concept Betty Crocker Lunch Pail
  • Product ConceptSnack Bowl Appetit
  • Appendix

14
Focus on SWOT Opportunities
  • Expand target to include children
  • Large market for lunch products
  • Based on National School Lunch Program
    statistics, this market is ? 17 bil (including
    school lunches) in 2000 1
  • Lunchables revenue estimated at 800 mil in 2000
  • Lunchables dominates the lunch kit category
    room for market entry with alternative
  • Improve healthy brand image
  • Consumer data suggests nutrition for kids meals
    is growing in importance through 2005 (see next
    slide)
  • Press indicates that nutritionists question
    Lunchables high sodium content (75 of daily
    allowance) 2

1 Source USDA.gov fact sheet National School
Lunch Program 2 Source CNN.com Health Line story
dated March 16, 1997. Lunchables may be
munchable but study warns of salt.
15
Importance of Health Kids Consumer Preferences
Source mad.co.uk web-site. Reuters Reports
Children Exert Greater Influence Over Purchasing
Decisions in the Food Drinks Market.
16
Interpretation of Consumer Data
  • Novelty and Convenience were rated the most
    important of 5 key trends driving NPD in
    childrens products
  • Bowl Appetit has convenience
  • Fun (from a kids perspective) could involve box
    activities, entertaining packaging, etc.
  • 3 attributes (all health related) are increasing
    in importance
  • Low fat/sugar content
  • Natural and organic
  • Functional fortified
  • Both kids and parents must find the product
    desirable

17
Why Target Kids?
  • Emergence of a highly brand literate younger age
  • Increasing amount of economic influence exerted
    by kids
  • Establishment of brand loyalty early in life
  • Ready to eat meals contribution to a childs
    sense of independence
  • Current gap in General Mills portfolio - no meal
    product for kids

18
Product Growth Strategy
  • Bowl Appetit will grow to include healthy and
    easy meal solutions for the whole family
  • Short term
  • Introduce two new products targeted at kids
  • Improve and emphasize healthy, wholesome image of
    Bowl Appetit
  • Long term
  • Build a portfolio of meals to serve the entire
    family

19
Agenda
?
  • Situation Analysis
  • New Product Growth Strategy
  • Product Concept Betty Crocker Lunch Pail
  • Product ConceptSnack Bowl Appetit
  • Appendix

?
20
Product Concept 1 Betty Crocker Lunch Pail
  • Know what your kids are eating when you send them
    off to school! Betty Crocker Lunch Pail is a fun
    educational disposable lunch box containing
    everything your child needs for a healthy lunch
  • Betty Crocker Lil Bowl Appètit
  • General Mills Fruit by the Foot or Del Monte
    Fruit-to-Go
  • Nature Valley Granola Bar or Pillsbury cookie
  • Betty Crocker Squeezit juice box
  • Lil Bowl Appètit is even easier to prepare
  • Unwrap detach the pre-packaged water
  • Pull the slide to let water into the bowl
  • Microwave for 3 minutes

We recommend that GM fortify the Squeezit juice
to contain 50 calcium
21
Product Concept 1 Betty Crocker Lunch Pail
  • Lil Bowl Appetit flavors
  • Nacho Pasta
  • Pizza Spaghetti Pie
  • Macaroni Cheese
  • Just 2.29 (suggested retail) for the Betty
    Crocker Lunch Pail containing the 8 ounce Lil
    Bowl Appetit, fruit, dessert and juice!

22
Product Concept 1 - Lunch PailProduct
Specifications
  • Develop 8 ounce Lil Bowl Appetit with water in
    attached container, pre-measured and ready to add
  • Reduce the sodium content in Lil Bowl Appetit
  • Reduce microwave time to 3 minutes
  • Develop new kid friendly flavors
  • Include a 200 mL Betty Crocker Squeezit juice box
  • Fortify Squeezit with 50 RDA calcium and 100
    Vitamin C
  • The Lunch Pail will be decorated with pictures,
    games and puzzles
  • Multi-packs will be produced for club stores

23
Lunch Pail for Kids
Scenario A
Balanced Lunch
Lil




Scenario B
Balanced Lunch
Lil




24
Concept Target MarketBetty Crocker Lunch Pail
  • Kids ages 7-11 in grades 2nd through 6th
  • Who bring lunch to school
  • Who enjoy the interactive fun packaging
  • Who already eat products like Pillsbury Cookies,
    Fruit by the Foot, etc.
  • Whose schools have microwaves
  • Parents who value nutrition for their kids and
    want to be sure that kids are eating a complete
    meal
  • Parents who value convenience

25
Customer Switching LogicBetty Crocker Lunch Pail
  • Healthy complete meal
  • Nutritional analysis shows strength of this
    option
  • School lunches can be healthy, but kids can
    choose more fattening less healthy options
  • Convenience
  • Complete meal is ready-to-go (including drink)
  • Kid appeal
  • Themes like Harry Potter to entice kids
  • Puzzles and word searches offer added amusement
  • Component foods are tradeable in the lunch room
    (see Cafeteria Observations in the Appendix)
  • Box Tops for Education

26
Lunch Pail Nutrition Scenario A
Component Calories Fat (g)/ Saturated Fat Sodium (mg) Protein (g) Carb (g) / Fiber Vitamins ( RDA)
Lil Bowl Appetit (maccheese) 244 8 / 3 sat 810 8 35 / 1 Calcium 10 Iron 10 Thiamin 40 Folic Acid 25
Fruit by the Foot 80 1.5 / 0 sat 50 0 17 / 0 Vitamin C 25
Squeezit (apple) 90 0 / 0 15 0 22 / 0 Calcium 50 Vitamin C 50
Nature Valley Granola Bar (1 bar) 90 3 / 0 80 2 15 / 1 Iron 6
TOTAL 504 12.5 / 3 955 10 89 / 2
Lunchables sodium content is 1240mg with 15 g of
fat/ 8g of saturated fat.
27
Lunch Pail Nutrition Scenario B
Component Calories Fat (g)/ Saturated Fat Sodium (mg) Protein (g) Carb (g) / Fiber Vitamins ( RDA)
Lil Bowl Appetit (maccheese) 244 8 / 3 sat 810 8 35 / 1 Calcium 10 Iron 10 Thiamin 40 Folic Acid 25
Fruit to Go 70 0 5 lt1 18 / 1 Vitamin C 100
Squeezit (apple) 90 0 / 0 15 0 22 / 0 Calcium 50 Vitamin C 50
Pillsbury Cookie 80 3 / 1 45 1 11 / 0
TOTAL 484 11 / 4 875 9 86 / 2
Lunchables sodium content is 1240mg with 15 g of
fat/ 8g of saturated fat.
28
Nutrition Notes
  • Based on an interview with a pediatric physician,
    our Lunch Pail product is preferable to
    Lunchables in the following areas
  • Lower Sodium content
  • Lower fat and saturated fat content
  • Higher fiber
  • Higher Calcium
  • Higher Vitamin C
  • Higher Iron

Source Depth interview with Pediatrician,
11/15/2001.
29
Lunch Pail Fun Education
  • Themes could include
  • Harry Potter
  • James the Giant Peach
  • Madeline
  • Lunch pail is functional and provides activities
    for kids
  • Crossword puzzles
  • Word Search
  • QA
  • Parents can collect Box Tops for Education points
    towards the purchase of future books

30
Relevant Competitors Betty Crocker Lunch Pail
  • Refrigerated lunch kits
  • Kraft Lunchables
  • Current market leader with 70 market share
  • Priced at 2.79 (suggested retail) for complete
    lunch kit
  • Shelf stable lunch kits
  • Starkist Tuna kits with
  • StarKist Flavor Fresh Pouch, crackers, low-fat
    mayo, pickle relish, a spoon, napkin and mint (no
    juice)
  • Priced at 1.75 (suggested retail)
  • Lack of shelf stable lunch kits targeting kids
  • Shelf stable entrees (Chef Boyardee Hormel)
  • Homemade lunches 1
  • School cafeteria

1 source Lunch Room observation data in exhibit 4
31
Promotion StrategyBetty Crocker Lunch Pail
  • Back to School Launch 8/1/02
  • Coupons for awareness and trial
  • Guerilla Promotions
  • Mannequins at Gap Kids, Limited Too, Hollister
    and department stores will hold the Betty Crocker
    Lunch Pail
  • Magazine ads in Working Mother, Southern Living,
    Redbook and Cooking Light
  • TV commercial in 1/03
  • Partner with Target on color-themed ads

32
DistributionBetty Crocker Lunch Pail
  • Grocery stores
  • Best case scenario dual placement
  • Shelf-stable placement near Chef Boyardee and
    Hormel Kids Kitchen
  • Free-standing display near refrigerated
    Lunchables
  • Consistent placement in every store
  • Club stores
  • Variety 10-packs featuring multiple storybooks

33
Fit with General MillsBetty Crocker Lunch Pail
  • Brand equity fit
  • Betty Crocker symbolizes wholesome, trustworthy
    family meals
  • Strong brand awareness for Fruit by the Foot, Del
    Monte fruit and Nature Valley
  • Build lifetime loyal customers through Lil Bowl
    Appetit
  • Marketing fit
  • General Mills already markets very effectively to
    kids (Cheerios, Lucky Charms, Fruit Roll-ups)
  • Distribution
  • No new resources required to distribute Lunch
    Pails to stores already receiving deliveries

34
Consumer BaseBetty Crocker Lunch Pail
  • Category Lunch Combination Kits
  • 17,859 homemakers have purchased in the last 6
    months
  • Per month frequency varies between zero and over
    11 units

Source MRI Data for 1998
35
Revenue ProjectionsBetty Crocker Lunch Pail
  • GM revenue per unit 1.99
  • Based on suggested retail of 2.59 and Peter
    MacDonalds comment that stores mark-up items by
    30 on average
  • 2 to 6 market share at introduction and 23 to
    27 share at maturity
  • Current market leader has 70 share
  • Revenue of 55 million in year one 344 million
    at maturity

Source MRI Data for 1998
36
Agenda
?
  • Situation Analysis
  • New Product Growth Strategy
  • Product Concept Betty Crocker Lunch Pail
  • Product ConceptSnack Bowl Appetit
  • Appendix

?
?
37
Product Concept 2 Snack Bowl Appetit
  • Let your kids be the chefs! Kids can whip up
    their own hot, healthy, after-school snack by
    simply adding water and microwaving. Snack Bowl
    Appètit is a convenient, nutrient-rich solution
    for your kids cravings.

38
Product Concept 2 Snack Bowl Appetit
  • Snack Bowl Appetit flavors
  • Nacho Pasta
  • Pizza Spaghetti Pie
  • Macaroni Cheese
  • Bacon Cheddar Mashed Potatoes
  • Just 1.60 (suggested retail) for the 8 ounce
    Snack Bowl Appètit.

39
Snack Bowl Appetit Product Specifications
  • 8 ounce Bowl Appetit with water in attached
    container for the child to add
  • Same design and size as Lil Bowl Appetit just
    a different name
  • Add a new mashed potato flavor
  • Reduce the sodium content in Snack Bowl Appetit
  • Packaging will be same as regular Bowl Appetit,
    except with brighter colors and the word Snack
    added to the name

40
Concept Target Market Snack Bowl Appetit
  • Kids (ages 7-16) whose eating habits include an
    after school snack
  • Kids who need extra energy before sports or after
    school activities
  • Parents looking for a healthy alternative to junk
    food for their kids snacks
  • Parents who may not be home after school and want
    a snack in the house that is kid-friendly in
    terms of preparation

41
Customer Switching LogicSnack Bowl Appetit
  • Healthy snack
  • More nutritious (and filling) than chips,
    pretzels and snack cakes
  • Less fattening than frozen hot snacks (e.g.,
    pizza rolls)
  • Convenience
  • Shelf stable (in comparison to frozen or
    refrigerated snacks)
  • Continuity with Lunch Pail
  • Kids who like Lunch Pail will want to continue
    eating Bowl Appetit
  • Box Tops for Education

42
Relevant CompetitorsSnack Bowl Appetit
  • Shelf Stable
  • Chef Boyardee, Hormel Kids Kitchen, Kraft Easy
    Mac, Ragu
  • Frozen
  • Uncle Bens Mini Bowls, Hot Pockets, frozen pizza
  • Home cooked snacks/fresh fruit
  • Miscellaneous
  • Kraft Handi-snacks, candy bars, popcorn, cookies,
    chips etc.

43
Promotion StrategySnack Bowl Appetit
  • Back to School Launch 8/1/02
  • Coupons for awareness and trial
  • Event marketing at theme parks and sporting
    events
  • TV commercial in 1/03

44
DistributionSnack Bowl Appetit
  • Grocery stores
  • Placement near Chef Boyardee, Hormel Kids
    Kitchen and other competitors
  • Club stores
  • Variety 10-pack offerings

45
Fit with General MillsSnack Bowl Appetit
  • Brand equity fit
  • Extends the Bowl Appetit brand to kids and
    teenagers by providing a smaller portion
  • Betty Crocker symbolizes wholesome, nutritious
    family foods
  • Marketing fit
  • General Mills markets effectively in key snack
    categories (granola bars, popcorn, snack mix)
  • Distribution
  • No new resources required to distribute Snack
    Bowl Appetit to stores already receiving
    deliveries

46
Consumer BaseSnack Bowl Appetit
  • Category Multiple Snack Foods
  • Low Comparability Crackers, Rice Cakes, Potato
    Chips, Pretzels, Corn Tortilla Chips,
    Multi-Grain Snacks, Snack Mixes and Snack Cakes
  • Medium Comparability Popcorn
  • High Comparability Frozen Hot Snacks and
    Packaged Prepared Dishes
  • Each category evaluated separately

Source MRI Data for 1998
47
Revenue ProjectionsSnack Bowl Appetit
  • GM revenue per unit 1.25
  • 0.5 to 3 market share (unit volume) at
    introduction and 1 to 10 share at maturity
  • Marketsharebench-marked

Source MRI Data for 1998
48
Agenda
?
  • Situation Analysis
  • New Product Growth Strategy
  • Product Concept Betty Crocker Lunch Pail
  • Product ConceptSnack Bowl Appetit
  • Appendix

?
?
?
49
Appendix
Exhibit 1 Comments from in-depth
interviews Exhibit 2 Improvements from in-depth
interviews Exhibit 3 Findings from Product
Concept Survey Exhibit 4 Findings from cafeteria
observation
50
Exhibit 1 Comments from In-Depth Interviews
How would you improve it?
Would you buy it again?
51
Exhibit 1 Comments from In-Depth
InterviewsContd
52
Exhibit 2 Improvements from In-Depth Interviews
53
Exhibit 3 Findings from Product Concept Survey
54
Exhibit 4 Findings from Cafeteria Observation
  • Set-up
  • 1 Microwave used by students and teachers
  • No water fountain in lunch room
  • School lunches on pre-paid account system
  • Student Behaviors
  • Students who bring lunch sit down first
  • Compare/trade parts of lunch with friends
  • Lunch make-up
  • 75 of students eat school lunch
  • Comprised of an entrée, dessert, fruit,
    vegetable, milk
  • Home lunches are in re-useable containers
  • Typically a luncheable or sandwich, chips,
    cookie, and juice
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