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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
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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

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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.
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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.
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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.

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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

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Agenda
?

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

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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.
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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.
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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

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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

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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

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Agenda
?

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

?
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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
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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!

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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

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Lunch Pail for Kids
Scenario A
Balanced Lunch
Lil




Scenario B
Balanced Lunch
Lil




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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

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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

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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.
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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.
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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.
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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

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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
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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

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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

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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

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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
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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
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Agenda
?

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

?
?
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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.

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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.

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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

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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

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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

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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.

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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

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DistributionSnack Bowl Appetit

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

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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

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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
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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
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Agenda
?

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

?
?
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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
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Exhibit 1 Comments from In-Depth Interviews
How would you improve it?
Would you buy it again?
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Exhibit 1 Comments from In-Depth
InterviewsContd
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Exhibit 2 Improvements from In-Depth Interviews
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Exhibit 3 Findings from Product Concept Survey
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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