General Mills New Product Introduction Marketing Plan

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General MillsNew Product IntroductionMarketing
Plan
Locker Number 632

• Section 202 Team 4
• Jay Curran
• James Gaskin
• G.T. Hollett
• Steve Holley
• Kurt Knaub
• Marty Wick

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Process Outline
Phase I
Phase II
Phase III
Phase IV
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Sales Projection MethodologySummary View
Identification and analysis of comparable launches
External Factors
Review of existing markets and market shares
Projections
Year 1
Year 2
Year 3
Anticipation of competitor and market dynamics
Evaluation of GM marketing and distribution
Internal Factors
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Sales Projections Detailed View
Identification of Potential Buyer Segments
Market Influencers
Identification Of Direct Competitors (Market
Analysis)
Revenues (Units Pricing)
Total Potential Buyers
Competitors
Distribution Power
Competitor and Market Dynamics
Correction Factors
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Concept 1Old El Paso Fiesta Ench-a-lottas
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Product PositioningFiesta Ench-a-lottas
Ench-a-lottas packaging is similar to Chef
Boyardees. It will be microwave- ready after
the metal pop-top is removed. Old El Paso
branding will be prominently displayed to
leverage the significant brand equity already
enjoyed in the Mexican food category. Ench-a-lotta
s will be offered in a 7.5 oz size.
Ench-a-lottas are targeted at children and
teens. The product will be placed in the
supermarket where microwave-ready kids
single-serving segments are found. Competitors
include Chef Boyardee, Kids Kitchen, Ragu
Express
The marketing campaign for Ench-a-lottas will use
Old El Pasos established brand equity.
Advertising through print will communicate the
authentic Mexican flavor as well as the ease of
preparation. Ench-a-lottas will be shown as fun
and tasty way to eat lunch at home or at school.
Ench-a-lottas will be priced competitively with
single serving Chef Boyardee offerings, at 1.29
for a 7.5 oz. container.
The target market segment for Ench-a-lottas will
be children from the age of 5 to 15. Research and
surveys show that Mexican food is popular with
kids.
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Sales Projections Fiesta Ench-a-lottas Sales
(Year 1)
Buyer Segments
Purchase Calculation
Market Share Analysis
Revenue (Year 1)
BASE SEGMENT
MARKET SHARE
Kids 40,000,000 Kid Households 20,000,000
EZ Macaroni 10 Lunchables 55 Chef Boyardee
15 Spaghettios 5
X
CONSUMPTION (monthly)
Percentage of Homes Who Buy Mexican (6 month
time-frame) 45
OLD EL PASO
Repeat Repeat Single (0.34)
(0.34) (0.34) 4 2
4 0 - 2
17 Market Share of All Mexican Foods
MARKET SIZES
TOTAL SEGMENT (0.45) x (20,000,000)
50,000,000 - 150,000,000
3 Per Household / Month
Source Meat prepared meals report, Mediamark
Research Inc., 1994 Meat prepared
meals report, Mediamark Research Inc., 1997

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Sales Projections Fiesta Ench-a-lottas Sales
(Year 2 and Year 3)
Buyer Segments Growth
Purchase Calculation (Sensitivity)
Market Share Growth (Responses)
Revenue Growth
675,000 HH
Growth (Year 2) 1.03 1.10 Growth (Year 3)
1.03 1.10
CONSUMPTION (monthly)

• Growing Ethnic Influence
• Growing Cultural Influence
• Population Growth

Repeat Repeat Single (0.20
0.40) (0.200.40) (0.200.40) 4
2 4 0 - 2

• Growth in Market (No response)
• Growth in Market (New Segment)
• Market Contraction (Price War)
• Market Contraction (Product Into)

Source Meat prepared meals report, Mediamark
Research Inc., 1994 Meat prepared
meals report, Mediamark Research Inc., 1997

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Sales Projections Fiesta Ench-a-lottas
Sensitivity Analysis
Sales Projections Sensitivity Analysis (Monte
Carlo Simulation)
Sales (Thousands)
80
80
50
50
Baseline
20
20
20
Year 1 Year 2
Year 3
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Concept 2Betty Crocker Single Bakes
Now its easier than ever to enjoy fresh-baked
Betty Crocker cakes. Betty Crocker introduces
Single Cakes quick bake treats that offer you a
wholesome reward with minimum effort. Just pop a
cake in the microwave, watch it rise, then spread
on Betty Crockers delicious icing or spread.
Its just like made from scratch but its ready
whenever and wherever you are!
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Product PositioningBetty Crocker Single Bakes
Betty Crocker Single Bakes will be offered in 3
packs. The product will contain a topping, a
utensil and a single serving cake. It will be
microwave ready after the top is taken off, and
the plastic cover for the bowl is pulled back.
The Betty Crocker branding will be prominently
displayed to leverage its significant brand
equity.
Betty Crocker Single Bakes will be placed in the
snack aisle in the supermarket. Competitors
include Sara Lee, Hostess, Otis Spunkemeyer
Bettys Single Bakes will be priced competitively
with snack alternatives such as candy bars. The
suggested price point is 2.69 for the 3 pack
offering.
The marketing campaign for Single Bakes will
emphasize the wholesome quality and flavor of the
Betty Crocker products. Single Bakes will
provide the tastiness of Bettys best offerings
with the ease and convenience of a prepared food.
The target market for Betty Crockers Single
Bakes is working women who are looking for a
better solution than a candy bar between meals.
Market research has shown that this segment is
seeking an alternative to junk food for
snacking.
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Sales Projections Betty Crocker Single Bakes
Sales (Year 1)
Buyer Segments
Purchase Calculation
Market Share Analysis
Revenue (Year 1)
BASE SEGMENT
MARKET SHARE
441,750 HH
19,613,700
Nothing 25 Candy 40 Pretzels 8 Chips
7 Popcorn 5
Workforce 190,000,000 Workforce (Women)
88,350,000
X
CONSUMPTION (monthly)
Bring Lunch From Home Average 50
Repeat Repeat Single (0.50)
(0.35) (0.15) 4 2
4 0 - 2
TOTAL SEGMENT (0.50) x (88,350,000)
3.70 Per Household / Month
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Sales Projections Betty Crocker Single
BakesSales (Year 2-3)
Buyer Segments Growth
Purchase Calculation (Sensitivity)
Market Share Growth - Response
Revenue Growth
441,175 HH
Growth (Year 2) 1.00 1.20 Growth (Year 3)
1.00 1.20
CONSUMPTION (monthly)

• Growing Women Workforce
• Use as Dinner Dessert

Repeat Repeat
Single (0.200.55) (0.150.35) (0.100.20)
4 2 4 0 - 2

• Growth in Market (No response)
• Market Contraction (Product Into)

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Sales Projections Single Bakes Sensitivity
Analysis
Sales Projections Sensitivity Analysis (Monte
Carlo Simulation)
Sales (Thousands)
80
50
50
80
50
20
20
Year 1 Year 2
Year 3