Bowl Appetit

1
Bowl Appetit

• Monica Gaddy
• Rahul Gupte
• Amy Haller
• Matt Klein
• John LaBarca
• Amy Leyh

2
Table of Contents

• Objective
• Data Analysis
• Problem Definition
• Strategy Development
• Concept Development
• Appendices

3
Our goal is to achieve sustainable revenue growth

• Generate maximum level of sustainable growth in
  single-serve, shelf-stable food product revenues
  for the next three years
• How?
• Create increased awareness and trial of product
• Create a relevant connection of brand with
  consumers
• Increase repurchase rate

4
Table of Contents

• Objective
• Data Analysis
• Problem Definition
• Strategy Development
• Concept Development
• Appendices

5
We conducted research to assess the current
environment

• Used Nielsen panel data to assess performance of
  shelf-stable category and individual Bowl Appetit
  product
• Conducted competitive positioning research to
  determine how Bowl Appetit compares with core
  competition and substitutes
• Conducted consumer research to determine current
  product perception and evaluate consumer needs
  and value sought within shelf-stable category

6
General Mills is attempting to serve an unmet
need in a niche market

• Bowl Appetit positioned as a single-serve hot
  lunch alternative
• Targeted at women and at-home moms
• Value proposition based on delivering a tasty,
  easy meal at an affordable price

7
Numerous focus groups identified existing product
strengths 1

• Product viewed as a more convenient alternative
  than frozen foods due to storage issues
• Ready-to-eat bowl perceived as a benefit
• Consumers identified potential usage occasions as
  a lunch alternative to be taken out of the home
• Low price-point of under 2 perceived to be
  benefit

1 See Appendix A for complete summary of Focus
Group findings
8
The focus groups also identified several product
weaknesses 1

• Product did not deliver on expectations of
  quality and taste
• Product was not satisfying as a full meal
• Preparation not as easy as competitive
  alternatives such as Instant Noodles and Chef
  Boyardee
• Product perceived as unhealthy
• Bowl Appetit name was not relevant to consumers
• Betty Crocker core competency perceived as baked
  goods
• Consumers do not make a connection between brand
  and shelf-stable meals

1 See Appendix A for complete summary of Focus
Group findings
9

We identified five major competitive groupings

• Noodle cups
• Add water cups
• Microwave cups with meat
• Microwave multi-packs
• Frozen

10
The competition has several advantages over Bowl
Appetit 1

• Consumers more apt to try competitors products
• Major competitors such as Kraft and Ragu have
  leveraged existing products to create line
  extensions with which consumers are familiar
  (i.e. Easy Mac and Ragu Express)
• Promotions are needed to induce trial of Bowl
  Appetit
• Higher percentage of Bowl Appetit bought on deal
  versus competition

1 See Appendix B for complete competitive
analysis
11
In-store positioning is inconsistent1

• Bowl Appetit is positioned in varying areas
  depending on the retailer
• Shelf-stable products found in Pasta, Soup,
  and/or Beans/Rice aisles
• Products are positioned on different shelves
  across stores (sometimes eye level, other times
  floor level)
• Causes customer confusion and makes the products
  difficult to find

1 See Appendix C for storewalk data
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Table of Contents

• Objective
• Data Analysis
• Problem Definition
• Strategy Development
• Concept Development
• Appendices

13
Bowl Appetit is not meeting sales targets

• Target household penetration benchmark of 10 not
  met1
• Current rates are 4.61 for rice and 5.46 for
  pasta2
• Target repeat purchase benchmark of 40 not met1
• Current rates are 19.23 for rice and 28.58 for
  pasta2

1 Steve Audette, Director of Consumer Insights,
Meals Division, General Mills 2 Nielsen Panel Data
14
Through focus groups we identified attributes
valued by consumers 1

• Convenience
• Easy preparation
• Taste
• Low cost
• A connection to the brand

1 See Appendix A for complete summary of Focus
Group findings and Appendix D for SWOT analysis
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Bowl Appetit is underdelivering on most
attributes which consumers value
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Focus groups also indicate Bowl Appetit targeted
at the wrong consumer segment

• Current target of women and at-home moms did not
  find the product to be a viable lunch alternative
• Men found Bowl Appetit much more appealing than
  women
• Men value convenience over taste, which can be an
  area of opportunity for current product

17
We also uncovered problems with the current
distribution

• Focus group findings indicate that consumers do
  not plan ahead for purchase of this product
• Product found exclusively in grocery/club stores,
  where purchases are based on planned future
  consumption
• Inconsistent placement within stores leads to
  consumer confusion

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Table of Contents

• Objective
• Data Analysis
• Problem Definition
• Strategy Development
• Concept Development
• Appendices

19
We identified areas of opportunity to improve the
value proposition 1
1 See Appendix D for SWOT analysis
20
General Mills needs to revise its strategy to
meet sales objectives

• Reposition Bowl Appetit as a convenient hot food
  alternative for anytime of day
• Redefine target market
• Rebrand to connect name with product
• Expand distribution channels beyond the retail
  food chain

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Reposition Bowl Appetit as a convenient hot food
alternative for anytime of day

• Emphasize convenience
• Meal or snack on the go
• Quick and easy alternative for dinner
• Under 5 minute preparation time
• Single-serve bowl included
• Differentiate on quality and taste
• Position as a better alternative to other
  shelf-stable products (not as an alternative to a
  home-cooked meal)
• Expectations of taste must be met
• Variety in product offerings
• Offers more flavor than simple pasta or plain rice

22
Redefine Target

• Target consumers who value convenience over the
  taste of a home cooked meal
• Psychographic market segment
• Value convenience and taste at an affordable cost
• Busy lives - do not have time to pack lunch, go
  out to eat, or spend time cooking a meal
• At work
• At school
• Demographic market segment
• Single adults, skewing male
• Middle-income

23
Rebrand product to connect name with product

• General Mills needs to establish a relevant
  connection between the brand and the target
  consumer
• Currently Bowl Appetit has no equity or relevance
  with consumers
• Trial and awareness low
• Repurchase rate low

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Rebrand product to connect name with product

• Need to ensure that product name resonates with
  target market
• Need to ensure that product name describes the
  experience
• Name should symbolize convenience, taste and
  quality
• Name should present a filling food alternative
• Name should not position as an alternative to
  home-cooked meal
• General Mills has resources available to
  reintroduce product under new brand

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Expand distribution channels beyond the retail
food chain

• Current distribution only in supermarkets and
  club warehouses requires advance purchase
  decision
• Gain distribution of product through alternative
  channels make purchase occasion more convenient
• Convenience stores
• Delis
• Corporate lunch kiosks
• Catering services
• Utilize sales force expertise to forge new
  partnerships

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General Mills has the capabilities to be
successful with this strategy

• Marketing expertise
• Segmenting consumers and developing a marketing
  plan to reach selected target
• Well-known brands associated with quality and
  premium taste
• Core competency in launching packaged foods
• RD expertise
• Strong sales force, experienced in negotiations,
  developing relationships and forging into new
  territories

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Table of Contents

• Objective
• Data Analysis
• Problem Definition
• Strategy Development
• Concept Development
• Appendices

28
Two new concepts will leverage opportunities to
improve value, emphasizing convenience size

• Larger sized full meal
• Single serving side dish

29
The two new product concepts provide offerings
for anytime of day
Morning Noon Evening
Meal Preference
Breakfast
Lunch
Dinner
1.
Snack/Side Dish
2.

• Lunch and Dinner needs will be addressed by the
  Full Meal offering
• Snacking and smaller dish needs will be addressed
  by the On the Side offering

30
Meals made Easy offers a full meal as well as
convenience

• Ingredients
• 5.2 ounces of Pasta or Rice
• Potato will be dropped for this line
• Flavors
• Pastas include current selection plus protein
  offerings such as tuna in a vacuumed-sealed pouch
• Rice offering will include protein such as red
  beans and rice
• Preparation
• One step preparation add hot or cold water,
  microwave and eat!
• Consistent preparation throughout line
• Packaging
• Deep bowl
• Visible fill-line

31
The value proposition offers full meal
satisfaction with convenient preparation

• Formulated to offer taste and quality expected of
  the Betty Crocker brand
• Many great flavors including Red Beans and Rice
  and Fettuccini Alfredo
• Packaged in a large bowl for convenient one-step
  preparation
• Just add water to dry pasta or rice and heat in
  bowl
• Filled with hearty single-serve portions

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The full meal offering can target consumers from
many competitive groupings

• Frozen Main Courses
• Frozen Complete Dinners
• Frozen Pizza
• Lunch Combos/Kits
• Canned/Jarred Spaghetti and Macaroni
• Complete Packaged

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Competitive Groupings Frozen Main Courses

• Brands include Budget Gourmet, Croissant Pockets,
  Healthy Choice, Hormel Foods, Lean Cuisine,
  Stouffers, Swanson
• Switching Logic
• Freezer storage less convenient
• Price
• Switching Risks
• Health factors
• Taste
• Market Size
• 6.403 billion1

1 See Appendix F for Market sizing
34
Competitive Groupings Frozen Complete Dinners

• Brands include Healthy Choice Dinners, Le Menu
  Healthy Dinners, Stouffers Dinner Supreme,
  Swansons Hungry Man
• Switching Logic
• Freezer storage less convenient
• Preparation time
• Switching Risks
• No side dish/less variety
• Portion size
• Market Size1
• 4.724 billion

1 See Appendix F for Market sizing
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Competitive Groupings Frozen Pizza

• Brands include DiGiorno, Jenos, Red Baron,
  Tombstone, and Totinos
• Switching Logic
• Freezer storage less convenient
• Preparation more convenient
• Healthier offering
• Switching Risks
• Taste
• Its PIZZA!
• Market Size1
• 6.558 billion

1 See Appendix F for Market sizing
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Competitive Groupings Lunch Combos/Kits

• Brands include Charlies Lunch Kit (Starkist),
  Hormel Lunch Kit, Lunchables (Oscar Meyer), and
  Tastefuls (Jimmy Dean)
• Switching Logic
• Longer shelf life
• Premium taste
• Variety
• Switching Risks
• Preparation time
• Convenience away from home
• Market Size1
• 1.419 billion

1 See Appendix F for Market sizing
37
Competitive Groupings Canned Spaghetti
Macaroni

• Brands include Chef Boy-ar-dee, Franco American,
  Hormel Micro Cup, and Ragu Pasta Meals
• Switching Logic
• Premium taste
• Healthier offering
• Portion size/heartiness
• Variety
• Switching Risks
• Cost
• Preparation convenience
• Market Size1
• 1.169 billion

1 See Appendix F for Market sizing
38
Competitive Groupings Packaged Prepared Dishes
Dinner Mixes

• Brands include Hormel/Dinty Moore Microwavable
  Meals, Its Pasta Anytime, Kraft Macaroni
  Cheese, Liptons Noodles Sauce, Ramen
• Switching Logic
• Portion size
• Premium taste
• Preparation time
• Healthier offering
• Switching Risks
• Variety
• Market Size1
• 4.402 billion

1 See Appendix F for Market sizing
39
Meals made Easy will complement General Mills
resources and capabilities
By successfully addressing the need for a full
meal offering, Meals made Easy will fulfill
General Mills goal having market-leading
products.
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Distribution channels are the key to the success
of the large size offering

• Grocery stores
• Available at all major chains and local grocers
• Place consistently in the pasta aisle
• Catering services/Vending
• Partner with catering companies to penetrate
  corporate and educational institution cafeterias
• Use vending channels to place product in kiosks
  and machines
• Convenience stores
• Place in major chains and drug stores
• Target those individual stores positioned in
  heavy commuter routes
• Club stores
• Variety and multi-pack offerings

41
Pricing and promotional strategies will drive
sales

• Pricing of the full meal offering should reflect
  its quality and size, while being mindful of the
  cost-conscious consumer
• Suggested retail price 3.29 per 5.2 oz. bowl
• Small price premium above competition works to
  communication products distinct value
  proposition
• Promotions should occur at the beginning of the
  lifecycle to bring awareness to the new products
• Co-promotions with complementary products like
  the side-dish offering should occur to
  continually encourage trial

42

The second concept is a side dish providing a
complement to main dishes or as a snack food
product

• Ingredients
• 1.25 ounces of Pasta, Rice, Vegetables, Potatoes
• Flavors
• Pastas include tomato and cream based offerings
• Rice will include current offering as well as new
  flavors
• Mixed Vegetables, Corn, Green Beans, etc.
• Mashed Potatoes, Potatoes Au Gratin, etc.
• Preparation
• One step preparation add hot or cold water,
  microwave and eat!
• Consistent preparation throughout line
• Packaging
• Deep bowl
• Visible fill-line

43
Sides made Easy will provide significant value
to its customers

• Formulated to offer taste and quality expected of
  the Betty Crocker brand
• Many great flavors including Potatoes Au Gratin
• Packaged in a small bowl for convenient one-step
  preparation
• Just add water and heat in bowl
• Ideal complement to single-serve portion meals
• Single serve size eliminates wasted leftovers

44
The side dish offering targets consumers from
many competitive groupings

• Canned Vegetables
• Instant Rice/Potatoes
• Fresh Produce
• Frozen Vegetables

45
Competitive Groupings Canned Vegetables/Beans

• Brands include Dole, Del Monte, Bush Beans,
  Campbells, and Van Kamps
• Switching Logic
• Convenient
• Taste
• Variety
• Switching Risks
• Health
• Market Size1
• 4.4 billion

1 See Appendix F for Market sizing
46
Competitive Groupings Instant Rice/Potatoes

• Brands include Uncle Bens, Zatarain, Minute Rice,
  Success
• Switching Logic
• Convenience
• Portion size
• Taste
• Switching Risks
• Price
• Market Size1
• 5.7 billion

1 See Appendix F for Market sizing
47
Competitive Groupings Fresh Produce

• Products include fruits and vegetables
• Switching Logic
• Non-perishable
• Portion size
• Convenience/storage
• Switching Risks
• Health
• Price
• Taste

48
Competitive Groupings Frozen Vegetables

• Brands include Green Giant and Birds Eye
• Switching Logic
• Portion size
• Storage convenience
• Switching Risks
• Taste
• Price
• Market Size1
• 4.1 billion

1 See Appendix F for Market sizing
49
Distribution channels are the key to the success
of the small side offering

• Grocery stores
• Available at all major chains and local grocers
• Place consistently in the pasta aisle
• Vending
• Use vending channels to place product in kiosks
  and machines
• Club stores
• Variety and multi-pack offerings

50
Pricing and promotional strategies will drive
sales

• Pricing of the side dish offering should reflect
  its quality and convenience, while being mindful
  of the cost-conscious consumer
• Suggested retail price 0.79 per 1.25 oz. Bowl
• Priced such that a consumer can buy two sides and
  still keep the price of a full meal under 5.
• Promotions should occur at the beginning of the
  lifecycle to bring awareness to the new products
• Co-promotions with complementary General Mills
  products such as Hamburger Helper and Progresso
  should occur to continually encourage trial

51
Revenue projection assumptions for Full Meal and
Side Dish concept

• Market Sizing1
• 25 billion for Full Meal market
• 13 billion for Side Dish market
• Initial Market Share of .05
• Growth Rate of
• 10 from Year 1 to Year 2
• 20 from Year 2 to Year 3
• Growth rate increases with market awareness

1 See Appendix F for Market sizing
52
General Mills has an opportunity to achieve 162M
and 86M respectively from the Full and Side
Concepts
20 Growth
10 Growth
(000s)
53
Table of Contents

• Objective
• Data Analysis
• Problem Definition
• Strategy Development
• Concept Development
• Appendices

54
Appendix Documents

• Appendix A Focus Group Findings
• Appendix B Competitive Analysis
• Appendix C Storewalk Data
• Appendix D SWOT Analysis
• Appendix E Porters 5 Forces
• Appendix F Market Sizing