Bowl Appetit New Product Strategy

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Bowl Appetit! New Product Strategy

• Gina Forde (locker 51)
• Greg Jones
• Page Stull
• Jennifer Steele
• Alicia Tosi
• Brandon Wingert

Mkting 468.202 Team 2
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Agenda

• Recommendations
• Situation Analysis
• Opportunity Assessment
• New Product Strategy Implementation
• New Product Concept Details
• Marketing Strategies and Execution
• Competitive Response
• Revenue Projections

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RecommendationsPortfolio Strategy
General Mills should build a portfolio of
complementary but incremental shelf-stable,
single serve, offerings for their target market
women needing a convenient meal for lunch.
Women Needing Convenient Lunch
At Home
At Work
Mainstream
Niche
Bowl Appetit! Bowls
Lunch Break!
NaturaLunch
Fresh, Mixable and Filling
Organic and Hearty
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RecommendationsNew Product Strategy
Lunch Break! and NaturaLunch will fulfill
working womens need of a portable lunch that is
convenient to make, high quality (of ingredients
and perception), and a hearty, complete meal.
At Work
Mainstream
Niche
Lunch Break!
NaturaLunch
Fresh, Mixable and Filling
Organic and Hearty

• Portable
• Separate ingredients to mix
• Green Giant brand to ensure high quality
• e.g. Fettuccine Alfredo (with Green Giant
  vegetables chicken)

• Portable
• All organic ingredients
• Cascadian Farm branding to reinforce organic
  product
• e.g. Zesty Beans Rice (all natural)

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Agenda

• Recommendations
• Situation Analysis
• Opportunity Assessment
• New Product Strategy Implementation
• New Product Concept Details
• Marketing Strategies and Execution
• Competitive Response
• Revenue Projections

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Situation AnalysisBowl Appetit! Category
Bowl Appetit! should be viewed as an emerging
category because of lack of store presence as
well as its ill-defined competitive set

• Single serve, shelf-stable does not have a
  place yet in the grocery store (pasta? rice?
  potatoes? etc)
• Wide range of potential competitors for Bowl
  Appetit! in the consumers consideration set
• Soups
• Noodle Cups
• Add Water Cups
• Frozen Meals
• Microwave multipacks

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Situation AnalysisBowl Appetit! Consumer
The Bowl Appetit! consumer is found in several
key lifestyle categories with minimal presence
in the other segments

• Key lifestyle segments for Bowl Appetit!
• Young Singles
• Childless Younger Couples
• Establishes Families
• Middle Aged Childless Couples

(See Appendix for further detail)
Source Nielsen Panel Data
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Situation AnalysisBowl Appetit! Competitors
The competitive set against which Bowl Appetit!
competes is largely determined by which lifestyle
segment is being targeted
Source Nielsen Panel Data
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Situation AnalysisCategory Assessment
One potential void with no dominant player is in
satisfying, pre-packaged lunch offerings for
working women thus an incremental opportunity
for General Mills.
Market Segments
Offering-Market Matrix
Kids
Men
At-Home Women
Working Women
Snack
Meal Occasion
Lunch
?
Dinner
Volume Potential
Saturated
Low
Relatively High
Medium
Source Focus Groups, Store Audit (see Appendix)
Panel Data
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Situation AnalysisDefining the Consumer
Several key characteristics define this customer
segment of women and make it a viable and
distinct target.

• 60 of women are employed outside the home
• Average time spent prepping for a meal has been
  decreasing (currently 30 minutes and projected to
  fall to 15 minutes)
• Convenience is top priority for working women
• Source Food Industry Trends, Thomas Murphy, Penn
  State University

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Situation AnalysisDefining the Consumer
Understanding the decision-making process of the
target consumer is crucial in the development of
the product concept.
Triggered Internally Stressed for time,
nutrition, good taste
Need Recognition
Triggered Externally TV ads, shelf placement,
in-store promos
Active or Passive? Low involvement decision
many lunch alternatives,
little time/thought/ given to lunch decision
Information Search
How do professional women, young mothers weigh
costs and benefits of lunch alternatives?
Evaluate Alternatives
Purchase Decision
Which alternative provides the most value in
terms of benefits desired?
Low loyalty due to many lunch choices. Taste,
packaging, ease of preparation are key to repeat
purchases.
Post-purchase Decisions
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Situation AnalysisConsumer Insights
Focus group results provide a deeper
understanding into the needs of the consumer with
respect to their current lunch offerings.
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Situation AnalysisConsumer Insights
Our focus groups also reveal that current
competitive products do not fulfill the current
needs of our target consumer.
Shown Uncle Bens, Bowl Appetit, Fantastic, and
Its Pasta Anytime
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Situation AnalysisConsumer Needs
In-store intercepts and focus groups reveal
working womens desire for a lunch that is
filling (complete meal) as well highly portable.
Opportunity
Higher level of portability
Chef Boyardee
Maruchan Noodles
Kraft Easy Mac
More Filling
Less Filling
Uncle Bens
Healthy Choice
Pasta Anytime
Lower level of portability
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Situation AnalysisConsumer Needs
In-store intercepts and focus groups also reveal
working women have inadequate offerings that are
both good tasting (i.e. fresh) and healthy.
Opportunity
High Level of Health
Good Taste (perception)
Poor Taste (perception)
Low Level of Health
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The consumers perception of freshness is related
to the type of distribution (as noted in focus
groups and consumer research).
Situation AnalysisConsumer Needs

• Dry meals are currently not perceived as fresh
  thus creating a market opportunity
• It will be a hurdle to convince the consumer that
  a product can be both dry (shelf-stable) and fresh

PRODUCE
MOST FRESH
CANNED
REFRIGERATED
FROZEN
LEAST FRESH
DRY
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Research also reveals that a significant portion
of working women are concerned about having
healthy offerings for the lunch occasion.
Situation AnalysisConsumer Needs

• There is clearly room for improvement on
  healthiness of current portable products.
• Consumers are especially aware of high sodium
  content in prepared foods.

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Key Consumer InsightsSummary

• Insights
• Target market wants more filling and complete
  meal option for lunch.
• Portability (bulkiness) important for those
  bringing lunch to work.
• Perception of freshness and good taste is low for
  dry (ie shelf-stable) goods.
• Consumers care about eating healthy current
  products do not meet this need.
• Consumers are wary of shelf-stable meat
• Consumers like the ability to mix their own meals
  due to the perceived higher level of control

• Opportunities
• Offer heartier meal (including meat and can of
  veggies) for lunch
• Connote portability with bag handle. Minimize
  package size/weight.
• Enhance perception of freshness and taste with
  co-brands use of canned goods.
• Offer organic/natural product line in
  shelf-stable form
• Utilize a branded form of shelf-stable meat (ie
  Swansons canned chicken)
• Offer separate ingredients that consumers will
  combine themselves

Source Focus Groups, Store Audit (see Appendix)
Panel Data
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Situation AnalysisConsumer/Retailer Trends
Grocery and industry trends indicate that the
natural and organic product market is an emerging
growth category

• Overall grocery sales have has grown 1-2
  annually since 1990 however,
• Natural food product segment has more than
  quintupled in size from 2 billion in 1993 to
  15.6 billion in 2000.
• Expected growth rate 15.6 annually from 1999 to
  2004
• Source Homegrown Natural Foods website

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Situation AnalysisConsumer/Retailer Trends

• Organic/Natural Product Trends continued
• Almost 1/3 of the U.S. population currently buys
  organically grown foods (Source Organic Trade
  Association)
• In 2000, consumer sales of organic products in
  all retail channels was 5.6 billion (up 20 over
  1999)
• Of 1000 surveyed, 54 buy natural/organic
  products at least once a month
• Source Organic Trade Association website, FMI
  website

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Situation AnalysisCompany Evaluation
General Mills has a strong portfolio of trusted
brands that can be leveraged to successfully
expand this category to a new target consumer.

• Strengths
• Brand equities (Betty Crocker, Green Giant,
  Yoplait) Betty Crocker accounts for 25 of
  company profits
• Established distribution channels (grocery, mass)
• Strong presence in multiple retail categories
  (cereal, yogurt, baked goods)
• Technological capabilities in dry goods can be
  transferred across products and divisions
• Customer knowledge
• Low cost producers based on highly automated and
  flexible processes

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Situation Analysis Company Evaluation
General Mills has a few challenges that should be
considered when determining a new product
strategy.

• Weaknesses
• Lack of strong presence in frozen category
• Mainstream image potentially difficult
  transition into exotic/ethnic/innovative
  categories.
• Recent acquisition of Pillsbury may divert some
  focus and resources

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Situation Analysis Company Evaluation
An internal analysis reveals the capability for
further growth.
General Mills Internal Capability Analysis
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Agenda

• Recommendations
• Situation Analysis
• Opportunity Assessment
• New Product Strategy Implementation
• New Product Concept Details
• Marketing Strategies and Execution
• Competitive Response
• Revenue Projections

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Opportunity Assessment 1Mainstream Market
There is an opportunity to better satisfy the
mainstream market of working women with a
convenient lunch.

• Provide convenient, complete lunch option for
  working women
• Leverage Green Giant name to signal quality and
  freshness in a relatively new shelf-stable
  category

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Opportunity Assessment 2Niche Market
Because the organic market is becoming more
mainstream, it is an attractive market that
General Mills should pursue.

• Natural/organic food industry is highly
  fragmented
• Big players (e.g. Kraft, Kelloggs, General
  Mills) exploring organic market potential
• Leverage Cascadian Farm brand. Cascadian Farm is
  1or 2 in nine different categories. Research
  shows brand is expandable in other categories
  because of strong credibility with
  natural/organic shoppers. (Steve Sanger, CEO
  General Mills)

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Agenda

• Recommendations
• Situation Analysis
• Opportunity Assessment
• New Product Strategy Implementation
• New Product Concept Details
• Marketing Strategies and Execution
• Competitive Response
• Revenue Projections

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Product Concept 1 Lunch Break! by Green Giant

• Product Concept Description Lunch Break! by
  Green Giant.
• Introducing Lunch Break! from Green Giant.
  Finally, a fresher, and more convenient option
  for lunch that tastes great. And its portable
  and shelf stable so there is no need to freeze or
  refrigerate.
•  
• Lunch Break! includes a pasta bowl to which you
  add fresh Green Giant vegetables, Swanson
  chicken, seasonings and chicken broth all
  included in the package! You just mix together
  and microwave for 3-4 minutes and you have a
  great meal ready when you are!
•  
• We know you have busy lives and lunch is often
  rushed. Green Giant Lunch Break! is a great
  lunch option to take to work or even to eat at
  home and it is offered in a variety of flavors
  such as Pasta Primavera. Now when you go to the
  grocery store you will know what to buy for
  lunch!
•  
• Lunch Break! from Green Giant
• Ready when you are

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Product Concept 1Lunch Break! Details

• Branding
• Green Giant brand signals freshness and quality
  more relevant than Betty Crocker
• Co-branding with meat manufacturer
• Swanson chicken and tuna
• Branded chicken reassures consumers of quality of
  shelf-stable meat
• Packaging
• Package resembles lunch bag
• Hard and durable (box vs. bag material)
• Handle on package to communicate portability
• Size of package must be minimized consumers do
  not want to bring bulky package to work
• Clear openings allow consumers to see branded
  meat and can of fresh Green Giant Vegetables

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Product Concept 1Lunch Break! Details

• Ingredients
• Pasta/rice bowl with seasonings
• Swanson can of meat (chicken or tuna)
• Can of Green Giant vegetables
• Price
• Retail price point of 3.50
• Consumers willing to pay more for complete meal
  (per focus group)
• Higher costs relative to Bowl Appetit!
• Positioning/Target
• Women at work
• Fresh and portable
• Satisfying a complete lunch
• Mixable ingredients

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Product Concept 1Lunch Break! Details

• 4 SKUs/Flavor ideas
• Pasta Primavera
• Fettuccine Alfredo with Chicken
• Rice with chicken and vegetables
• Mexican Rice

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Product Concept 1Reaction to Lunch Break!
Focus group reaction to the Lunch Break! concept
lends credence to the idea that this is a viable
product idea for working women
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ExecutionLunch Break! Promotional Strategy
Promotional strategy addresses all three stages
of the target consumer purchase pattern.

• Awareness
• Catalina coupons/announcement with Green Giant
  purchases (prior and during launch)
• Introduction of Ms. Green Giant
• Gain Trial Purchase
• Smart Source coupons at point of purchase on
  shelf
• Catalina coupon triggered off competitive
  purchase (Uncle Bens)
• Repeat Purchase
• Advertising
• Magazine Working Women, People
• Television Prime time news
• Catalina coupon triggered off Lunch Break
  purchase

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Execution Lunch Break! Launch Tactics
Launch tactics will reflect a product concept
that is directed toward the mainstream consumer
leverage General Mills distribution capabilities.

• Distribution
• At least 90 ACV for grocery retailers selling
  gt2MM
• Store Placement
• Prepared Meal section (if applicable) or
  Rice/Pasta aisle

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Product Concept 2Cascadian Farm NaturaLunch

• Concept Description Cascadian Farms NaturaLunch
•  
• Introducing NaturaLunch from Cascadian Farms.
  Made with organic seasonings, pastas or rice,
  this is a ready-to-eat shelf stable meal option
  that requires only a microwave.
•  
• NaturaLunch is a great lunch option for work or
  home. Now you can eat healthy anyplace, anytime.
  Plus there is nothing processed or artificial
  about this product and it has only ½ the sodium
  of other prepared meals! NaturaLunch also has the
  quality and taste you desire. No need to freeze
  or refrigerate just add water and microwave for
  3-4 minutes.
•  
• NaturaLunch Taking care of you.

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Product Concept 2NaturaLunch Details

• Branding
• Cascadian Farm branding current organic equity
• Packaging
• Baglike package (like Lunch Break!) with handle
  operational efficiencies from using same package
• Size of package minimized to increase portability
• Bowl inside same bowl as Bowl Appetit!
  (leverage operational efficiencies)

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Product Concept 2NaturaLunch Details

• Ingredients
• Bowl inside with everything included (like Bowl
  Appetit!)
• Sodium content minimized (no more than 600 mg)
• Price 3.25
• Premium offering over similar non-organic
  offerings (such as Bowl Appetit!)
• Positioning/Target
• Women who work and buy organic

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Product Concept 2NaturaLunch Details

• Flavor ideas Use current Cascadian Farms frozen
  entrée offerings as starting point for SKU
  offerings
• 6 SKUS
• Zesty Beans and Rice
• Passion Pasta Primavera
• Tantalizing Teriyaki Rice and Vegetables
• Juicy Japanese Noodles and Vegetables
• Cous Cous with Tomato Basil Sauce
• Ravishing Ravioli with Lima Beans

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Product Concept 2Reaction to NaturaLunch
Focus Groups confirm that natural/organic
products are in high demand making NaturaLunch a
desirable alternative to current offerings.
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ExecutionNaturaLunch Promotional Strategy
Promotional strategy addresses all three stages
of the target consumer within the niche market
purchasing pattern.

• Awareness
• Catalina coupons/announcement with Cascadian Farm
  purchases (prior and during launch)
• Gain Trial Purchase
• Grass Roots ad campaign
• Smart Source coupons at point of purchase on
  shelf
• Catalina coupons triggered off competitive
  product purchase (Fantastic, Healthy Choice,
  Uncle Bens)
• Repeat Purchase
• Advertising
• Magazine Preventative Health, Working Women,
  People
• Television Prime time news
• Catalina coupon triggered off NaturaLunch
  purchase

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Execution NaturaLunch Launch Tactics
Tactics to launch niche product concept will
leverage mass grocery capability of General Mills
and also capabilities of Cascadian Farm.

• Distribution
• Target natural food stores and grocery retailers
  with organic/specialty food sections
• Store Placement
• Organic food section in major grocery stores
• In organic food stores, place near soup cups, etc

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Agenda

• Recommendations
• Situation Analysis
• Opportunity Assessment
• New Product Strategy Implementation
• New Product Concept Details
• Marketing Strategies and Execution
• Competitive Response
• Revenue Projections

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Competitive ResponseAnticipating Pre-empting
Potential early entrants may be those that have
strengths in both frozen and shelf-stable.
Consumers will trust the brand (due to brand
recognition) and retailer acceptance is more
likely.

• ConAgra
• Has technology to complete in pre-packaged meals
  in both frozen and shelf stable
• Dominant in healthy, frozen category (Healthy
  Choice) potential to cross over to shelf stable
• Kraft
• Presence in shelf-stable under Its Pasta
  Anytime brand. This newly acquired brand has a
  high potential for expansion in shelf-stable
• Private Label
• Fastest growing in frozen and dry grocery. As
  more branded players expand shelf-stable
  category, technologies become easier for private
  label to adopt and enter the market

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Competitive ResponseRetaining and growing
market share
Category success will be contingent on continuing
to understand the consumer and their evolving
needs within this emerging category

• Line extensions to support General Mills 1st
  mover advantage
• Rice bowl in LunchBreak!
• Curry Peanut Fry in NaturaLunch
• Innovation
• Reduction in preservatives/sodium
• Add more protein and other minerals important to
  target such as calcium and folic acid

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Agenda

• Recommendations
• Situation Analysis
• Opportunity Assessment
• New Product Strategy Implementation
• New Product Concept Details
• Marketing Strategies and Execution
• Competitive Response
• Revenue Projections

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Revenue Projections3 Year Summary
Because these two products serve different
consumer markets the cross-over is minimized,
resulting in a projected total 3-year revenue of
approximately 250MM.
Lunch Break
Naturalunch
Data gathered from US Census Bureau Food
Marketing Institute
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Revenue ProjectionsGeneral Assumptions

• Year 1
• There will be no direct competition
• Year 2
• Competition will come into this market
• Demand will be further stimulated due to category
  expansion, but we will have to share this demand
• Year 3
• Market will be in equilibrium

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Revenue ProjectionsLunchBreak! Data Details
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Revenue ProjectionsLunchBreak! Assumptions

• Year 1
• 10 of our target market will try the product
• 30 will become repeat purchasers
• Repeat purchasers will buy on average 1.5 units
  per month
• Year 2
• New competition will continue to stir demand
  bringing in new samplers
• Smaller percentage will repeat
• Now, repeat purchasers are more loyal
  (2units/month)
• Year 3
• Market is now mature and in equilibrium
• Due to first mover advantage and strong brand
  equity, Lunch Break is 1 player in 3 player
  market (Market share 44)

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Revenue ProjectionsNaturaLunch Data Details
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Revenue ProjectionsNaturaLunch Assumptions

• Year 1
• 33 of working women are willing to try
  natural/organic product
• 10 of these will try NaturaLunch
• 20 will become repeat buyers
• Repeat buyers will purchase .75 units/month on
  average
• Year 2
• There will be slightly fewer new people trying
  NaturaLunch
• A higher percentage will become repeat purchasers
• Year 3
• Market will be more mature
• NaturaLunch can hold 20 of a dynamically
  growing market

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APPENDIX
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AppendixConsumer Segment Analysis
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AppendixConsumer Segment Analysis
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AppendixRetailer Audit Results