General Mills New Product Introduction Marketing Plan

1
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

2
Project Objective

• To create and initiate market planning for two
  shelf-stable, single-serve product lines or
  product line extensions that will generate
  substantial incremental revenue over a three-year
  sales period

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Process Outline
Phase I
Phase II
Phase III
Phase IV
Gap Analysis
Gap Analysis
4
Macroeconomic Trends
5
Macroeconomic DataU.S. Age Demographics

• Average age of population is increasing
• Over 65 group grew by 14.7M people from 1990 to
  1999

Kids and the baby boomer generation form two of
the fastest growing segments.
Source 2000 Census Bureau Report
6
Macroeconomic TrendsU.S. Ethnic Demographics

• Hispanic and Asian-American ethnic groups have
  the highest growth rates in the nation
• Hispanic 34.5
• Asian-American 35.9
• Despite the fact that Hispanics are only 11 of
  population and Asian Americans are 4, the growth
  of these ethnic populations influences U.S.
  culture

Total Pop 270M
Asian-American and Hispanic foods represent a
fast growing segment due to both population and
cultural influence
Source 2000 Census Bureau Report
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Macroeconomic TrendsU.S. Labor Households

• Almost 2/3 of U.S. Households do not have a
  stay at home adult to allocate their time to
  meal preparation
• Women account for 46.5 of current workforce

Total U.S. HH 105M
Total U.S. HH 105M
Asian-American and Hispanic foods are a growing
segment due to both population and cultural
influence
Source 2000 Census Bureau Report
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Macroeconomic TrendsU.S. Labor Households

• Fast growing segment of food marketplace.
• Analysts currently estimate nutraceutical market
  at 15 Billion.1
• Currently, nutrionally-improved foods account
  for more than 78 of growth in 35 food
  categories.2
• Growth attributed to large population of aging
  baby boomers and awareness of age disorders
  (e.g., osteoporosis)
• Popular in the following forms
• Beverages (OJ, fruit juice, smoothies, spritzers,
  etc.)
• Cereal
• Meal-replacements (shakes, snacks, etc.)

• www.cnn.com/2000/food January 1, 2000 On your
  plate, top food issues for your meals.
• http//www.opta-food.com/trends/3tds-ptctpt.html

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Macroeconomic TrendsSummary
Statistical Trends and Observations
Takeaways

• Dual income and single person households are
  increasing and now account for 2/3 of all U.S.
  households

There are fewer households who have a dedicated
family member for meal preparation

• Hispanics and Asian-Americans are the fastest
  growing segment of the U.S. and now account for
  15 of the total population

Opportunities exist in the fastest growing ethnic
segments

• The average age of the population is increasing
  (baby boomers). The kid segment is also one of
  the fastest growing.

There is a potential need for products which
target specific food attributes of the baby
boomers and kids

• Women now account for 46.5 of the workforce and
  is increasing

An opportunity may exist for lunch meals which
target working women.
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Microeconomic Data
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Microeconomic DataU.S. Food Expenditure Trends

• U.S. consumers are spending less of their
  disposable income on food during the late 1990s
• In the past 10 years, supermarkets have
  experienced a two-fold increase in shoppers who
  consider a grocery store the primary source for a
  pre-made dinner (18 of total population)

Supermarkets are increasingly the primary source
for pre-made, inexpensive dinners.
Source Meal Solutions, Food Marketing
Institute, 2000
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Microeconomic DataU.S. Food Consumption Lunch
at Work

• Workplace lunch facts
• Bring Lunch from home 45 At least once per
  week
• 20 Everyday
• Skip Lunch completely 31 Sometimes
• 11 At least once per week

Nearly half of American workers are looking for
lunch solution to take to work
Source Brown Baggin It, American
Demographics, January, 2001
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Microeconomic DataMeal Preparation Time

• As consumers lives have become increasingly
  hectic, the length of time dedicated to meal
  preparation has decreased
• Time dedicated to lunch (both preparation and
  consumption) has decreased to only 15 minutes

Americans have less time to spend on meal
preparation with lunch being particularly hectic
for consumers
Source Changing Cooking Dining Habits,
www.globalgourment.com, 2000
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Microeconomic DataU.S. Food Attribute Importance

• Surveys indicate the top four food attributes for
  making a purchase are taste, nutrition, product
  safety, and price.

These attributes serve as potential drivers for
consumer purchase behavior
Source Nutrition, Food Marketing Institute,
2000
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Microeconomic DataU.S. Food Attribute Importance

• Further research indicates health importance for
  consumers is typically fleeting
• The food industry is known to take advantage of
  this fact through loose nutritional claims of low
  fat or low sodium products
• A Food Marketing Institute (FMI) survey found the
  most definitive health changes were additions to
  their diet in the form of fruits and vegetables
  rather than eliminating certain unhealthy aspects
  in their current meal purchases

While nutrition was identified as a potential
driver for food consumption, consumers often
dont make their purchase decisions based on this
attribute
Source Nutrition, Food Marketing Institute,
2000
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Microeconomic DataU.S. Food Consumption - Snacks

• A significant percentage of Americans snack

93
50
40
Snack food sales continue to grow. Sales topped
30 billion in 1999 1
Source Whats in Store, International Dairy
Deli Bakery Association, September, 19981 Press
Release, Snack Food Association, July 19, 2000
(most recent available data)
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Microeconomic DataNutraceutical Trends

• Fast growing segment of food marketplace
• Analysts currently estimate nutraceutical market
  at 15 billion
• Currently, nutritionally-improved foods account
  for more than 78 of growth in 35 food categories
• Growth attributed to large population of aging
  baby boomers and awareness of age disorders
  (e.g., osteoporosis)
• Popular in the following forms
• Beverages (OJ, fruit juice, smoothies, spritzers,
  etc.)
• Cereal
• Meal-replacements (shakes, snacks, etc.)

Source www.cnn.com/2000/food January 1, 2000
On your plate, top food issues for your
meals. http//www.opta-food.com/trend
s/3tds-ptctpt.html
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Microeconomic DataSummary
Statistical Trends and Observations
Takeaways

• Supermarkets are a primary source for shoppers
  who are looking for a pre-made dinner

The market for single serve, shelf-stable
products should expand

• A significant percentage of American workers
  skip lunch or eat out regularly

American workers have a need for a quality
tasting, convenient prepared lunch meal

• Time spent for lunch (and other meals) has
  become increasingly short

Lunch convenience

• Nutrition is identified by consumers as an
  important food attribute, but has less impact in
  their actual purchasing decision

Health attributes for meals can be subtle. Taste
is a true driver for food consumption

• Snacks food sales are growing a represent a
  significant portion of a typical consumers
  consumption

Snacks represents a robust and growing segment of
the market
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Consumer Needs Analysis
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Psychographics Survey Output
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Consumer Needs AnalysisMoment-In-Time Decisions
- Summary

• Convenience is a key factor if the consideration
  set includes any single serving meals
• Meal snack sizes away from the home tend to be
  small due to hectic schedules
• After convenience is evaluated, taste drives a
  meal or snack decision
• Heath was an important consideration, but was
  often neglected at the time of purchase, in favor
  of convenience taste
• Price will always influence meal snack
  purchases

Source These takeaways are derived from consumer
interactions. These include surveys and
discussions about general and eating behaviors.
The survey is included in the Appendix.
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Current Portfolio Analysis
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General Mills PortfolioEvaluation Process
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Portfolio OverviewCore Demographics and Dayparts
Served
Adults
BacOs
Chex Mix Bugles Pop Secret
Nature Valley Yoplait
Progresso
Haagen Dazs
RTE Cereals
Bowl Appetit
Lloyds BBQ
Old El Paso
Green Giant
B.C. dessert mixes
Pillsbury
Pillsbury
Night
Morning
Noon
B.C. Helpers
Ginos/Totinos
Family
Fruit Snacks Dunkaroos Squeezits
Time of day and lifestage factors, while not
drivers, help isolate drivers
Go-Gurt
Kids
UNDERSERVED
Lunch hour generally underserved by existing
offerings
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Needs AnalysisTaste, Flavors and Nutrition
For the senses (taste)
BacOs
Chex Mix Bugles Pop Secret
Haagen Dazs
Ginos/Totinos
B.C. dessert mixes
RTE Cereals
Bowl Appetit
Dunkaroos Squeezits
Lloyds BBQ
Old El Paso
Pillsbury
B.C. Helpers
Ethnic
Standard
Progresso
Fruit Snacks
Go-Gurt
Nature Valley Yoplait
Green Giant
For the body (nutrition)
UNDERSERVED
General Mills delivers very little ethnic flavor
Critical drivers when holding price and
convenience constant
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Brand ReviewLeverage Opportunities
General Occasions
Numerous opportunities to leverage powerful brand
names in various formats
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Competitive Analysis
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Competitive AnalysisBrands
Grocery Deli
Frozen Foods
Fast Food
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Competitive AnalysisConsideration Set

• Broad Options
• Consumers meal consideration sets include
  traditional restaurants and fast food outlets.
• More Narrow Options
• Consumers narrow their options to include only
  items available in the supermarket.
• Specific Options
• For shelf-stable products consumers are choosing
  from options within the category.

Restaurants
Shelf- Stable
Grocery Deli
Frozen Foods
Fast Food
Consideration sets allow marketers to analyze
competitive options and segment consumers based
on purchase behaviors
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Competitive AnalysisGrocery Store Competitor
Characteristics

• Cup o Noodles
• Top Ramen

• Limited Variety
• Water Based
• Less Expensive
• Limited Kids Options

Dry Shelf-Stable

• Largely Soups and Italian Dishes
• More Kids Options

Wet Shelf-Stable

• Large Variety
• Oil Based
• Better Tasting
• Targets Dinner
• More Expensive

• Uncle Bens Rice Bowls
• Marie Callendar
• Lean Cuisine

Frozen
Products launched in the grocery store require
positioning against the specific attributes of
its competitive consideration set
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Competitive AnalysisLunch, Dinner and Snack
Offerings
For the senses (taste)
Michelinas Snacks
Stouffers
Marie Callenders Bowls
EZ Mac
Kids Kitchen
Swanson
Its Pasta Anytime
Ragu Express
Michelinas
Ethnic
Standard
Chef Boyardee
Cup Noodles Top Ramen
Smart Ones Bowls
Uncle Bens Rice Noodle Bowls
Lean Cuisine
Healthly Choice Bowl Creations
For the body (nutrition)
Very few ethnic products Very few premium snack
products
Critical drivers when holding price and
convenience constant
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Competitive AnalysisSummary

• Statistical Trends

Statistical Trends and Observations
Takeaways

• Few ethnic offerings available Chinese, Indian,
  Mexican, Thai

• Many competitors already offer shelf-stable
  Italian products

• Minimal single-serve, quick-bake products
  available as shelf-stable

• Few products targeted towards children and men
  in shelf-stable category

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Concept Creation
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Concept CreationMethodology
Winning Concepts
Filtered Concepts
Unbiased Brainstorming Driven By Collected Data
Winning Concepts
Sample output Nutraceuticals senior-oriented
foods, woman-oriented foods Convenience Cereal
bars, drinkable meals, lunch-on-a-stick Ethnic
fare Chinese bowls, Mexican meals, Italian
pastas, Around-the-world dishes for kids Snack
consumption cereal treats, time-of-day
sustenance (numerous small snacks which replace
meals), popcorn treats Lunch at work refreshing
fruit and yogurt, energy bars, room-temperature
meals

• Concepts
• Progresso Pronto
• Silver Servings
• Fiesta Ench-a-lottas
• Betty Crocker
• Single Bakes
• Pillsbury Shepherds Pie
• Oriental Express

Betty Crocker Single Bakes
Fiesta Ench-a-lottas
Logic and detailed analytics used to filter
concepts in timely fashion
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Concept CreationConcept Ideas
Progresso Pronto
Oriental Express
Fiesta Ench-a-lottas
Pillsbury Shepherds Pie
Betty Crockers Silver Servings
Betty Crocker Single Bakes
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Progresso Pronto

• Concept
• You have enjoyed Progresso Italian soups for
  years. Now, in addition to the worlds best
  soups, Progresso brings you a number of quick,
  hearty meal bowls to warm your heart and satisfy
  your hunger with the tastes of Tuscany.
• Features
• Personal microwave-able bowl
• Ready to heat meals
• Italian favorites as Roasted Herb Chicken Pasta
  and Arrabiatta Spicy Pasta Casserole.
• Old country herbs and spices that you have come
  to expect from Progresso.
• Includes a packet of parmesan cheese to be
  sprinkled over the top of the meal before
  serving- adding a delightful addition to the old
  style recipes.

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Progresso Pronto

• Potential Line Extensions
• Extend the Progresso soup lines to create the
  following meals
• Hearty Home style Tomato Pasta, Tomato Basil
  Pasta Pasta Dinner, Roasted Chicken Italiano with
  Rice.
• Brand
• The Progresso brand represents great food,
  simply prepared, and is the perfect image to
  develop a line of hearty Italian-influenced
  shelf-stable meals.
• The existing following of the Progresso brand
  will provide an immediate launch pad for
  Progresso Pronto. It is important to note that
  the Progresso line successfully markets quality
  shelf-stable meats in their products. This will
  be critical in helping consumers bridge the gap
  to shelf-stable meats.

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Progresso Pronto

• Needs Addressed
• The primary needs addressed with this product
  offering are the following
• General Mills offers a variety of dry cereals,
  snack bars, and other packaged goods designed for
  morning or evening consumption. However, with the
  exception of Bowl Appetit, GM does not have a
  lunchtime offering.
• The idea behind this product allows for General
  Mills to tap into the Lunch-time-on-the-go
  arena and also to leverage the core competencies
  of General Mills in a new area.
• Competitors already have an Italian segment
  developed in the shelf-stable (e.g. Classico and
  Chef-Boyardee,) ready to eat category, but GM
  does not currently have an offering.
• Progresso Pronto gives GM the opportunity to
  expand the existing consumer perception of the
  Progresso brand from quality soups with an
  Italian flair to mean Homestyle Italian
  products. As such, Progresso Pronto segment
  (shelf-stable Italian) represents a premium
  product while the competition focuses mainly on
  the childrens market. (e.g. Chef-Boyardee)
•  

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Progresso Pronto

• Communication
• The promotion behind Progresso Pronto will
  differentiate the product from Progresso Soups by
  showing how they are a meal in a ready-to-eat
  bowl and compete with the other ready-to-eat,
  microwave-able products such as Stouffers frozen
  offerings and Campbells Chunky. However, the
  advertisements will note that Progresso Pronto is
  sold in a ready-to-heat and eat container, as
  opposed to the traditional tin can. 
• Barriers to Competition
• While there are few options available to adult
  customers in the wet shelf-stable segment, the
  Progresso brand brings an element of superb
  quality and taste that is difficult for other
  companies (even Campbells) to achieve.
• Concerns/Challenges
• Cannibalization of existing Progresso soups.
  Progresso Pronto will have to be differentiated
  in recipe, serving size and presentation from the
  existing cans of Progresso soup. Additionally,
  as noted above, competition from companies such
  as Campbells could come in the form of their
  soup lines or new Supper Bakes.
• Potential to damage existing Progresso brand
  equity.
• The Progresso brand is a strong insulator that
  will allow General Mills a defense from much of
  the competition.

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Oriental Express

• Concept
• The dynamic flavors of Oriental Express will take
  you back to the storied history of the ancient
  Asian Continent. General Mills brings Asian
  cuisine to your table in a convenient,
  ready-to-heat and eat single serving package.
  You enjoy all of the international flavor that
  you love with the added convenience of not having
  to leave your desk or home.

• Features
• Through this channel, product offerings will come
  in a wet form such as noodle or rice with
  vegetables and meat. Also, there could be a small
  container of crunchy noodles to serve as a
  topping encased on the top of the package.
• The offering will come in packaging with a
  plastic lid for aesthetic purposes that will
  cover the true canned top, which will be
  removed for the microwave process.

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Oriental Express

• Potential Line Extensions
• Some of the possible offerings would be the
  following
• Chicken Lo-Mein, Pepper steak and rice, Orange
  Chicken and noodles, Thai Spring Noodles with
  Chicken, etc.
• Complimentary products such as Asian noodles,
  garnishes and teas.
• Brand
• Oriental Express will be a new brand. It
  wouldnt be appropriate to have this concept
  fall under the Betty Crocker brand or other
  existing brand umbrellas. As opposed to
  leveraging an existing brand, creating the
  Oriental Express brand will be expensive.
  However, in light of the fast-growing popularity
  of Asian food, the long-term benefits of
  developing a new brand can be significant.
•  

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Oriental Express

• Needs Addressed
• The primary needs addressed with this product
  offering are the following
• General Mills offers a variety of dry cereals,
  snack bars, and other packaged goods designed for
  morning or evening consumption. However, with the
  exception of Bowl Appetit, GM does not have a
  lunchtime offering.
• The idea behind this product allows for General
  Mills to tap into the Lunch-time-on-the-go
  arena and also to leverage the core competencies
  of General Mills in a new area.
• With consumer preferences trending toward Asian
  food (Chinese, Thai, etc.), General Mills can
  capitalize on the trend with this new product.
•  Communication
• The promotion behind Oriental Express will
  introduce full-flavored, Asian food into the
  shelf-stable market. The advertising will show
  how the individual servings are a meal in a
  microwave-able, ready-to-heat bowl.
• The advertising will differentiate Oriental
  Express from the already available and popular
  noodle-based dry products in this category. (e.g.
  Nissin, Cup-o-Noodles)
• There is a possibility of co-marketing with the
  Iron Chef television program as a way of
  tapping into the popularity of this Asian Cooking
  program. For example, using the Iron Chef show
  to advertise the concept and generate interest

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Oriental Express

• Barriers to Competitors
• There is little opportunity for GM to quickly
  erect barriers. The best opportunity exists only
  if GM can spend substantially to create strong
  consumer associations between the brand and
  quality Oriental food.
• Concerns/Challenges
• We look at this offering to encounter the
  following barriers
• The cost of creating and marketing a new brand
  instead of marketing under the Betty Crocker
  name, or Pillsbury name.
• Encountering brands such as La Choy and Chun
  King which already have a head start on GM.
• Other frozen food product offerings from Healthy
  Choice, Lean Cuisine, Uncle Bens that feature
  oriental-style entrees that, again, have a lead
  over GM concerning products in the market.
• Other wet offerings that exist (Chef Boyardee,
  Campbells, etc.)

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Fiesta Ench-a-lottas

• Concept
• Your kids will love these delicious bites of
  flour tortillas, filled with meats and cheeses
  and surrounded by Old El Pasos rich enchilada
  sauce. These single-serve meals bring the
  flavors of Mexico to your school home with the
  great taste youve come to expect from Old El
  Paso. Just pop them in the microwave and enjoy
  your meal. 
• Features
• Single-serving ready-to-heat bowls of enchiladas
  style meals.
• Bite-sized flour tortilla pockets surrounded by
  Old El Pasos popular enchilada sauces.
• Pockets contain one of three fillings beef,
  chicken or cheese.
• Ench-a-lottas are packaged in a plastic bowl with
  a vacuum-sealed pull-top lid and a plastic cover
  to be used while heating in the microwave.
• Served in 7.50 oz. bowls to appeal to children or
  light eaters. (Potential future packaging15 oz
  packages for adults seeking full meal.)

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Fiesta Ench-a-lottas

• Potential Line Extensions
• New flavors can be established to address
  different consumer segments/needs
• a.  Spicy/ Hot- to appeal to adult customers
• b.  Green Chili- rich sweet flavor
• c.  Taquitos- similar concept with crunchy taco
  chips to add after cooking
• Brand
• The Old El Paso brand is perfect for launching
  this new line of Mexican specialty meals.
  Families love Old El Paso as evidenced by the
  fact that it is the number one selling brand of
  Mexican foods. The Ench-a-lotta name will allow
  GM to enter a childrens market, thereby growing
  the existing customer base to include a whole new
  group of lifetime customers.

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Fiesta Ench-a-lottas

• Needs Addressed
• The primary needs addressed with this product
  offering are the following
• Allows GM to meet growing demand for ethnic
  flavors in childrens markets
• Shelf-stable, single-serve products are
  convenient for storage and quick and easy to
  prepare.
• Consumer demand for meat flavors and sustenance
  in shelf-stable, single-serve products
• Communication
• The promotion behind Fiesta Ench-a-lottas will
  target the childrens market with catchy
  cartoon-based fun advertisements. Additionally,
  a web-site will be created allowing kids to join
  (with parental approval) the Wanna-lotta kids
  club!
• The advertising will show how the individual
  servings are a meal in a microwave-able,
  ready-to-heat bowl.
•  

47
Fiesta Ench-a-lottas

•  Barriers to Competition
• Leveraging the brand of Old El Paso, with the
  marketing and distribution of General Mills,
  gives GM an excellent opportunity to create
  barriers within consumers minds similar to those
  established by ConAgra with the Chef Boyardee
  offerings.
• ConAgra does not currently have a strong Mexican
  brand.
• Old El Pasos brand serves as an initial barrier
  to competitors like ConAgra, with the ability to
  deliver a wet, shelf-stable offering. Heinz, with
  the acquisition of Delimex, holds knowledge of
  Mexican frozen food market and distributes what
  is considered by some to be a higher-quality
  product. However, no competitor currently offers
  a shelf-stable, single-serve Mexican product.  
• Concerns/Challenges
• The primary challenge with delivering on market
  needs and delivering a successful offering will
  be in effectively selling the quality, flavor and
  safety of shelf-stable meat products. As noted,
  Con Agra has been extremely successful with the
  Chef-Boyardee line of pasta-based wet meat
  products. A principal goal we have is to educate
  the customers as to the Fiesta Ench-a-lotta
  offering as a substitute for current incumbent
  offerings in the childrens wet shelf-stable
  category.
•  
•  
•  

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Pillsbury Sheppards Pie

• Concept
• This delicious stew of premium vegetables and
  hearty beef is a meal-in-itself. Pillsbury
  Sheppards Pie is great for lunch or dinner.
  Either way, it is sure to satisfy your hunger.
  Topped off with a flaky Pillsbury crust just like
  grandma used to make, our Sheppards Pie is sure
  to be just right when you need a quick, yet
  wholesome meal.
• Features
• Single-serving ready-to-heat bowls of Sheppards
  Pie.
• Pillsbury Sheppards Pies are packaged in a
  plastic bowl with a vacuum-sealed pull-top lid
  and a plastic cover to be used while heating in
  the microwave.
• Served in 15 oz packages for adults seeking
  satisfying lunch or light dinner.

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Pillsbury Sheppards Pie

• Potential Line Extensions
• New flavors can be established to address
  different consumer segments/needs
• a.  Spicy using curry powder to satisfy those
  seeking variation available in England
• b.  Chicken and Dumplings Pillsbury dumplings
  and chicken within thick gravy
• c.  Beef Stew Beef, vegetables, and potatoes
  sans crust
•  
• Brand
• This product will be marketed under the
  well-established Pillsbury brand name which most
  American households associate with fine breads
  and crust brought to them by the Pillsbury.
  Pillsbury is well known and will help to reduce
  education costs and reduce customers concerns
  over quality.

50
Pillsbury Sheppards Pie

• Needs Addressed
• The primary needs addressed with this product
  offering are the following
• There is a market opportunity for bold, masculine
  flavors in the shelf-stable, single-serve
  category. Additionally, there is consumer demand
  for meat flavors and sustenance in shelf-stable,
  single-serve products
• General Mills offers a variety of dry cereals,
  snack bars, and other packaged goods designed for
  morning or evening consumption. However, with the
  exception of Bowl Appetit, GM does not have a
  lunchtime offering- Pillsbury Sheppards Pie
  satisfies that need.
• The idea behind this product allows for General
  Mills to tap into the Lunch-time-on-the-go
  arena and also to leverage the core competencies
  of General Mills in a new area.
• Communication
• Focus on food like grandma made and Pillsbury
  dough boy.
• Pillsbury Sheppards Pie will be communicated to
  males looking for easy meals to prepare. A
  satisfying meal with meat, potatoes, and crust
  will be stressed to garner interest.
•  

51
Pillsbury Sheppards Pie

• Barriers to Competition
• Pillsbury brand serves as an initial barrier to
  competitors like Campbells Soups and Dinty Moore
  stews. Additionally, the Pillsbury name has the
  ability to lend appeal to a ready-to-bake
  bread-based offering.
• Neither Campbells or Dinty Moore have a brand
  able to provide fresh crust- a fact that helps to
  differentiate our Sheppards Pie.
•  
• Concerns/Challenges
• A primary challenge will be introducing
  Sheppards Pie into the shelf-stable category.
  Customers may have concern for how shelf-stable
  the product is with its high number of
  ingredients.
• The challenge with the product is to clearly show
  how it is different from soups on the market as
  well beef stews already available.
• A key will be to produce a crust that will bake
  in the microwave in a short amount of time.

52
Betty Crocker Silver Servings

• Concept
• Betty Crockers Silver Servings bring healthy
  options to the table! Silver Servings are great
  tasting meals with both the convenience seniors
  demand and the dietary ingredients their doctors
  recommend. Betty Crockers Silver Servings are
  the wholesome meals that seniors are accustomed
  to brought to you by the brand that has earned
  your trust over the last 75 years.
• Features
• Silver Serving meals will be packaged in small
  7.5oz. personal portions that will be just the
  right amount for a senior meal. Additionally,
  Silver Servings will be introduced in accordance
  with the FDAs stated senior health issues in
  mind. We will offer the following three
  attributes
• Low fat, low cholesterol (for hearth disease)
• Low Sodium (for high blood pressure)
• Balanced meal (with calcium, iron, protein, etc.)
• Traditional, non-spicy flavors such as Chicken
  Noodle Casserole and Hearty Beef Stew will be
  featured.  

53
Betty Crocker Silver Servings

• Potential Line Extensions
• A franchise line of Betty Crocker Silver Servings
  might include breakfast meals, snacks and a
  greater variety of flavors, including the
  possibility of popular specialties from the past
  50 years of American cuisine.
• Brand
• The Betty Crocker label is the perfect brand to
  reach the aging baby boomers. The brands
  popularity was founded in the post-war era when
  many of todays seniors were highly
  impressionable youngsters. Additionally, todays
  seniors were the foundation of the success of the
  Betty Crocker Cookbooks and, as noted on the
  Betty Crocker website, the cookbook is now in
  its 9th edition (and) has sold more than 30
  million copies, making it one of the all-time
  best-selling cookbooks in the world.1
• 1 Betty Crocker Website, http//www.bettycrocker
  .com/meetbetty/mb_tsob2.asp
•  

54
Betty Crocker Silver Servings

• Needs Addressed
• The primary needs addressed with this product
  offering are the following
• The diet-specific needs of the aging Baby Boomer
  generation
• Mealtime convenience desired by senior citizens
• Small portions preferred by seniors
• Communication
• The promotional campaign will be twofold.
• It will include a push marketing campaign
  celebrating the joint product development of
  recipes and ingredients with a respected
  gerontological program such as The Gerontology
  Institute and the American Association of Retired
  People (AARP.) The push strategy would be to
  speak with physicians to have them recommend
  Silver Servings as a healthy option for their
  aging patients.
•  Additionally, there will be a pull marketing
  campaign through traditional media outlets. The
  traditional media will target both the younger
  seniors who are responsible for their own meal
  purchases as well as the middle-aged children who
  make many of the meal decisions for senior
  parents. Both of these campaigns will feature
  the taste, health and convenience of Betty
  Crocker Senior Servings.

55
Betty Crocker Silver Servings

• Barriers to Competition
• The strength of the Betty Crocker name with
  seniors will be of great benefit when protecting
  our market. It is difficult to imagine any of
  the heritage brands being as strong with this
  demographic.
•  
• Concerns/Challenges
• Competition could come from other single serve
  lines already in the shelf-stable market. Of
  particular note is the Healthy Choice line of
  products. While there is substantial
  competition, the Betty Crocker name will be a
  major foundation in growing the Silver Servings
  franchise and serve as a powerful force in
  developing a loyal following.
• Some consumer research has shown that cost is the
  primary driver when seniors are making meal
  choices. If the research proves accurate, this
  price-sensitivity could put undue profit pressure
  on the Silver Servings line.

56
Betty Crocker Single Bakes

• Concept
• Now its easier than ever to enjoy fresh-baked
  Betty Crocker cakes. Betty Crocker introduces
  Single Bakes 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 icying or spread.
  Its just like made from scratch but its ready
  whenever and wherever you are!
• Features
• Cakes are sold in three-packs. Each cake package
  contains a sealed cover containing Betty Crocker
  icing or spread and a plastic spread utensil.
• Cakes are moist and fresh tasting upon
  microwaving.
• Flavors include chocolate cake or yellow cake
  (each with chocolate icing), strawberry, coffee,
  German chocolate and more.

57
Betty Crocker Single Bakes

• Potential Line Extensions
• Extensions are possible to cookies, cinnamon
  rolls and more, but such extensions likely will
  take place under the Pillsbury brand. Thus,
  extension opportunities take place more from a
  market and packaging knowledge standpoint.
• Brand
• The Betty Crocker brand is the natural home for
  this concept. The existing brand will keep
  product introduction costs to a minimum and
  provide a natural advertising platform.  

58
Betty Crocker Single Bakes

• Consumer Needs and Positioning
• This product is expected to address the need for
• a. A wholesome reward for all the hard work
  that women do
• b. Consumer demand for tasty snack food with
  less guilt  
• Communication
• Focus on rewarding women for their hard work.
  The quality of the product will allow overcome
  the communication to women, thus allowing for
  male consumption as well.
• The offering will offer convenience to consumers.
  As an alternative to actually baking the
  product, a buyer can pick up a package of
  pre-prepared cakes for consumption at home, at
  the office or on the go.

59
Betty Crocker Single Bakes

• Barriers to Competition
• Betty Crocker is a strong brand that resonates
  with consumers. The brand equity in baked
  dessert goods will allow General Mills to create
  a perceived value proposition that is difficult
  for competitors to replicate.
• Concerns/Challenges
• Primary concern lies in delivering a product that
  delivers what consumers expect from Betty Crocker
  (at the time of consumption).
• Must create processes and packaging to gaurantee
  freshness at the time of consumption.
• Must also educate consumers to avoid storing,
  transporting or preparing the product in a manner
  which could reduce quality.

60
Concept Evaluation
61
Consumer Concept EvaluationProgresso Pronto
Relatively positive consumer responses, though
not perceived as being very unique
Scoring 1worst to 5best
62
Consumer Concept EvaluationOriental Express
Relatively low consumer scores overall. Responses
indicate product, however, is somewhat unique
Scoring 1worst to 5best
63
Consumer Concept EvaluationFiesta Ench-a-lottas
Product very well. Consumers value score
particularly positive for kids-oriented offering.
Scoring 1worst to 5best
64
Consumer Concept EvaluationPillsbury Shepherds
Pie
Low consumer scores.
Scoring 1worst to 5best
65
Consumer Concept EvaluationBetty Crocker Silver
Servings
Scoring 1worst to 5best
Consumer scores are relatively low
NOTE Concept should be retained for further
consumer testing. Initial tests did not contain
reasonable representation from target consumer
group.
66
Consumer Concept EvaluationBetty Crocker Single
Bakes
Scores are relatively strong. Believe sample
uniqueness scores do not accurately represent
differential quality from competition
Scoring 1worst to 5best
67
Consumer Concept EvaluationBases Matrix Average
Rankings
Scoring 1worst to 5best
68
Concept EvaluationMetric Filter

• Metrics Utilized For Concept Evaluation
• Three Dimensions (Axes) On (1 5 Scale)
• Asset Compatibility
• Brand
• Distribution Capabilities
• Production Capability
• Profitability
• Sustained Revenues
• Barriers To Entry
• Growth Potential
• Market Share
• Unserved Needs / Gap Analysis
• Current Company Portfolio
• Competitive Portfolio
• Demographic Trends
• Psychographic Trends

Profitability
Gap Analysis
Asset
69
Concept EvaluationMetric Filter

• Weighting of Three Attribute Dimensions

• Weighting of attributes determined
• by level of uncertainty
• Meeting un-served needs and determining brand fit
  is more certain (in terms of success) than
  profitability
• All attributes critical to success of
• product launch

25
Profit
35
Asset Compatibility
40
Unserved Needs
70
Concept EvaluationMetric Filter Asset
Compatibility
Scoring 1worst to 6best (Forced Rankings)
Fiesta Ench-a-lottas and Betty Crocker Single
Bakes leverage existing General Mills assets
71
Concept EvaluationMetric Filter Gap Analysis
Scoring 1worst to 6best (Forced Rankings)
Betty Crocker Single Bakes best capitalizes on an
unserved market need.
72
Concept EvaluationMetric Filter Profitability
Betty Crocker Single Bakes are a premium offering
and holds the greatest profit potential. We
anticipate Fiesta Ench-a-lottas will generate
high profits due to its high pricer per ounce
ratio.
Scoring 1worst to 6best (Forced Rankings)
73
Concept EvaluationResults

• Selected Concepts

Fiesta Ench-a-lottas
Betty Crocker Single Bakes
74
Supporting Research For Selected Concepts
75
Supporting ResearchMexican Food Kid Consumption

• Kids 10 to 13 tweens favor four ethnic
  varieties over American cuisine 1
• Heinz acquired Delimex Foods in August, 2001, to
  target school lunch market
• Weaker brand name than Old El Paso

• Chinese
• Mexican
• Japanese
• Italian
• American

Source 2001 Tweens in America Report, Wharf
Research and Center for Culinary Development,
November 6, 2001
76
Supporting ResearchCakes Consumption

• Recognized trend in UK toward snack market
• Cakes meet consumers needs for lighter and more
  wholesome sweet snacks (relative to most
  confections)

Opportunity to leverage Betty Crocker brand is
growing in snacks
Source Cakes Out of the tin and into a
lunchbox, Grocer, p. 53, October 27, 2001
77
Positioning
78
Product PositioningMethodology
Placement
Packaging
The product positioning was based on the five
critical factors Product Placement, Packaging,
Marketing, Consumer Attributes, and Price.
Price
Mktg.
Consumer
79
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.
80
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.
81
Sales Projections Methodology
82
Sales Projection MethodologySummary View
Identification and analysis of comparable launches
External Factors
Review of existing markets and market shares
Annual Projections
Year 1
Year 2
Year 3
Year 2
Year 3
Anticipation of competitor and market dynamics
Evaluation of GM marketing and distribution
Internal Factors
83
Sales Projections Fiesta Ench-a-lottas
84
Sales Projections Fiesta Ench-a-lottas
Detailed View
Identification of Potential Buyer Segments
Market Influencers
Identification Of Direct Competitors (Market
Analysis)
Revenues (Units Pricing)
Competitors

• EZ Macaroni
• Kids Chef Boyardee
• Ravioli
• Spaghetti
• Lunchables

Total Potential Buyers

• Households with Kids (5 15)
• Lunch Items (not exclusive)
• Mexican Food Consumers
• Larger Portions Repositioned For Men

Distribution Power
Competitor and Market Dynamics
Correction Factors
85
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
Distribution Power
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

86
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)

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

87
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
88
Sales Projections Betty Crocker Single Bakes
89
Sales Projections Betty Crocker Single Bakes
Detailed View
Identification of Potential Buyer Segments
Market Influencers
Identification Of Direct Competitors (Market
Analysis)
Revenues (Units Pricing)
Competitors

• Candy
• Pretzels
• Chips
• Vending Machine Fare
• Popcorn

Total Potential Buyers

• Working Women
• Lunches
• Dinner Snacks

Competitor and Market Dynamics
Correction Factors
Source Meat prepared meals report, Mediamark
Research Inc., 1994 Meat prepared
meals report, Mediamark Research Inc., 1997

90
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
Distribution Power
TOTAL SEGMENT (0.50) x (88,350,000)
3.70 Per Household / Month
91
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)

Distribution Power
92
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
93
Next Steps
94
Next StepsConcept Confirmation
Technical Feasibility Review
Remaining steps required prior to national
product launches
BASES Phase I Concept Testing
Prototype Development
BASES Phase II In-Home Product Testing
Test Market
95
Backup Slides
96
Competition - Wet
97
Competition - Frozen
98
Competition - Frozen
99
Competition - Frozen
100
Competition - Dry
101
Restaurants

• Competitive trends associated with this industry
  are as follows
• 1. Trend towards quality fast food chains.
• 2. Disparity in eating out within in gender.
• 3. Ethnicity becoming a strong influence in
  restaurant industry.
• 4. Income also a factor concerning restaurant
  dining.
• 1) Future of fast-food Becoming more upscale.1
• Boston Market take the meal home concept
• Meal solutions ready-to-eat meals at
  restaurants or groceries
• 51 of meals bought at restaurant taken home (of
  which, 2.1 come from fine restaurants.
• 2) Men more likely to eat at a restaurant versus
  women.2
• (men 4.6 meals outper week, women 3.8 meals
  per week).
• Additionally, men 22 of all meals eaten out,
  vs. 18 for women.
• Women consume 14.8 privately-prepared meals per
  week vs. men at 13.9 meals

102
Restaurants

• 3) Ethnicity playing large role in restaurant
  trends.3
• More preferences and locations for
  ethnic-themed restaurants, especially among
  urban-professionals and internationals.
• Most popular ethnic offerings
• Thai
• Japanese
• South American
• Caribbean
• Minority groups tend to spend more on food away
  from home.3
• Hispanic adults lead all minorities in lunch and
  dinner (37 vs. 33 for African-Americans and
  Asians).
• Additionally, tend to order out more.
• Hispanic and African American females are more
  often on-premises patrons than their male
  counterparts.
• 4) Influence of Income.3
• Individuals with higher household income tend to
  dine out more.
• Managerial and professional occupation households
  posted the highest per capita and average total
  spending away from home (3,003 and 1,112,
  respectively).
• Consumers with household income of 75K or more
  eat an average of 4.9 meals commercially prepared
  vs. 3.2 for incomes of 15K or less.

103
Comparative Parameters
104
Consumer Survey

• The following slides contain survey questions
  posed to consumers. This is a portion of the
  line of questioning we followed to understand
  consumer perceptions of existing and conceptual
  products

105
Oriental Express

• Product
• The idea behind this product allows for General
  Mills to tap into the Lunch-time-on-the-go
  arena. This product offering will come in a
  wet form such as noodle or rice with vegetables
  and a meat. Also, there could be a section of dry
  noodles to serve as a topping encased on the top
  of the package. The offering will also come in
  packaging that has a plastic lid for aesthetic
  purposes that will be removed for the microwave
  process. Flavors would include Chicken Lo-Mein,
  Pepper steak and rice, Orange Chicken and
  noodles. This item will come in 12 oz packaging
  and will retail for 4.17.
• Evaluation
• Please rank this concept on a scale of 1 to 5. 1
  very low thru 5 very high
• _____ Price
• _____ Taste
• _____ Unique
• _____ Purchase Intent
• _____ Value

106
Fiesta Ench-a-lottas

• Product
• Old El Paso, the worlds favorite brand of
  Mexican food, has been delivering the great
  tastes of Mexico to your home since 1917. Now
  their letting you enjoy a Mexican meal wherever
  you go with Fiesta Ench-a-lottas. Youll love
  these delicious bites of flour tortillas, filled
  with meats and cheeses and surrounded by Old El
  Pasos rich enchilada sauce. These single-serve
  Mexican meals satisfy your hunger at work, at
  school or at home with the great taste youve
  come to expect from Old El Paso. Just pop them
  in the microwave and savor the flavor. Flavors
  include beef, chicken or cheese. Ench-a-lottas
  are packaged in a plastic bowl with a
  vacuum-sealed pull-top lid and a plastic cover
  for microwaving. Served in 7.50 oz (for children
  or light eaters) or 7.5 oz packages (for adults
  seeking full meal). The retail price will be
  1.29.
• Evaluation
• Please rank this concept on a scale of 1 to 5. 1
  very low thru 5 very high
• _____ Price
• _____ Taste
• _____ Unique
• _____ Purchase Intent
• _____ Value

107
Bettys Shepherds Pie

• Product
• The Pillsbury Dough Boy has just gotten back from
  holiday in jollyole England and has decided to
  share with his friends in America the Old World
  delicacy known as Shepherds Pie. This delicious
  meal-in-itself goes great for lunch or dinner,
  either way, it is sure to satisfy you hunger. It
  is loaded with vegetables, meat, and potatoes,
  but most importantly, it is topped off with a
  fresh Pillsbury crust just like grandma made when
  you were