Betty Crockers Lunch Break and Mini Break you Deserve it

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Betty CrockersLunch Break and Mini Breakyou
Deserve it!

• Marketing strategy and two new concepts for
  single-serve, shelf-stable food products
• November 19, 2001

Marketing Strategy General Mills Project Team 3
(M/Th 115) Paulo Alves, Teena Cater, Erin
McCormack, Marniee Nottingham, Moni Singh, Caveni
Wong
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Executive Summary

• Objective
• Create a three year sustainable growth strategy
  for General Mills for single-serve shelf-stable
  food category.
• Strategy
• Pursue a growth strategy for the Adult lunch
  market
• Target economically affluent, yet time poor
  consumers
• Provide a means to consumers to do something good
  for themselves, even when they feel they dont
  have the time
• Take control of adult lunch market by empowering
  consumers with the perception of convenient real
  food preparation!

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Translating market knowledge for value delivery

• Market Learning
• Need for control, whole meal, taste and
  convenience
• Under exploited lunch market
• Value Creation
• Providing shelf-stable tasty and healthy
  offerings via two new product concepts
• Lunch Break
• Mini Break
• Value Delivery
• Leverage General Mills existing market based
  assets such as distribution, customer and partner
  relationships, and brand equity.

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Agenda

• Market Learning
• Value Creation
• Value Delivery
• Criteria For Success
• Potential Threats
• Revenue Projection
• Long Term Considerations

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Consumer Trends
Market Learning

• Ready-to-heat category is growing while
  restaurant foods are declining
• Opportunity to build a convenience lunch market
  for affluent households
• Consumers want
• C whole meal (meat, vegetables, and
  carbohydrates)
• 25 Americans skip breakfast on average
• Convenience
• Cooking is a special occasion activity
• Average Americans willingness for time spend
  cooking is 15 minutes
• Taste and nutritional value
• However, nutrition may be compromised for
  convenience (motivation in the moment of time
  53.2 eat fast food)
• Control
• Control over their diet even when they are busy
• There is an opportunity to capture the growth in
  ready-to-heat category.

Source Information Resources, Inc., NCBA
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Competitive Analysis Price vs. Health Mapping
of Single Serve, Convenient Meals
Market Learning
Consumers associate shelf stable products with
low health
Source Company websites, store walks and taste
test conducted by team
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Competitive Analysis Price vs. TasteMapping of
Single Serve, Convenient Meals
Market Learning
Consumers are willing to pay for taste
Source Company websites, store walks and taste
test conducted by team. See backup slides.
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Bowl Appétit Brand Equity Analysis Brand Report
Card
Market Learning
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Strategic Vision

• Take control of adult lunch market by empowering
  consumers with the perception of convenient real
  food preparation.

When you think of lunch, think Betty Crocker.
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Strategic Vision Implementation

• Leverage Betty Crocker brand equity
• Leverage the recent Pillsburys acquisition by
  co-branding with Green Giant
• Leverage co-branding opportunities with current
  (Heinz-StarKist) or future potential partners

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Product Concepts

• Betty Crockers Lunch Break
• total meal complete with dessert treat
• Betty Crockers Mini Break
• a complementary addition to lunch or any time
  theres a need for a break

Take a break. You deserve it!
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Betty Crockers Lunch Break

• All-in-one meal
• Including a main dish and dessert
• Complete with carbohydrates and protein
• Separate pouch for meat and/or vegetables
• Vacuum packed fresh ingredients
• Convenient preparation without diminishing the
  cooking experience
• Mix contents before heating
• Requires involvement with minimal time commitment
• Four Varieties
• Tuna Noodle Casserole (co-brand with Star-Kist)
• Hot Veggie Pasta Salad (co-brand with Green
  Giant)
• Chicken with Rice and Broccoli (co-brand with
  Tyson and Green Giant)
• Sundried Tomatos and Pasta with Sausage Sauce
  (co-brand with Green Giant

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Betty Crockers Mini Break

• Mini Break for a lunch addition or a snack
  anytime
• Green Giant Veggie Pack Bowls
• Potato Bowls
• The top 3 best sellers for former Bowl Appétit
  (penne pasta, etc.)

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Betty Crockers Lunch BreakValue Proposition

• Regain control of your day by preparing a
  quick, convenient, wholesome meal. Do something
  good for yourself even when you dont think you
  have the time.
• Control what you eat, even when you are busy.

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Betty Crockers Lunch Break New Value Curve

• Low time and price investment
• High control, taste and convenience
• Total Solution for lunch carbohydrates
  meat/veg dessert

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Betty Crockers Lunch Break and Mini Break
Strategy

• Lunch Break
• Target customer
• Affluent women (35 54) who are short on time
  and need quick, convenient meals
• Switching logic
• Consumer surveys show willingness to pay for
  improved taste and quality Lunch Break offers a
  superior choice to Bowl Appetit

• Mini Break
• Target customer
• Affluent consumers who want to improve their
  lunch experience by adding a hot side dish or who
  dont have time to take a snack break
• Switching logic
• Higher quality, more nutrition, convenience
  coupled with trusted brand name

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Organizational Fit with General Mills

• Strategic vision for lunch fits with General
  Mills goal of being the 1 food marketer
• Opportunity to cross-sell to General Mills
  current customer base for dinner
• Additional revenue source by creating a new
  market space that bridges the two strategic
  groups Ready to Heat and Scratch-Fast

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Marketing Mix Packaging Betty Crockers Lunch
Break

• Side panels
• Nutritional information and ingredients
• Lunch Break varieties and Mini Break

Front view
Co-Branding Logos
Back view
Betty Crocker
Great for lunch, or a quick meal any time!
Daily Nutrition
Lunch Break provides you with a balanced lunch
containing healthy portions of protein,
vegetables and carbohydrates.
Lunch Break representation of the 5 food groups
Photo of prepared meal
Two see-through windows to view fresh vacuum packs
Usage scenarios to extend usage situations beyond
lunch
Bottom panel microwave directions
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Marketing Mix Packaging Betty Crocker Mini Break
Front view

• Side panels
• Nutritional information and ingredients
• Lunch Break varieties and Mini Break

The side dish that is great with lunch or by
itself!
Usage scenarios to extend usage situations beyond
lunch
Back view
Mini Break you deserve it!
Co-Branding Logos
Honey glazed mixed vegetables
Great any time with lunch, as afternoon snack
or an any time snack!
NET WT. 6OZ (150g)
Photo of prepared dish
Mini Break helps you eat healthily by providing
the right amount of vegetables and carbohydrates.
Mini Break representation of the 5 food groups
Bottom panel microwave directions
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Marketing MixAdvertising, Placement, Promotion

• Emphasize the ability to control what you eat
  even when you are busy via advertising
• Leverage existing GM distribution 89 ACV for
  current Bowl Appetit
• Food, Drug, Mass Channels PLUS vending machines
• Allocate promotion resources to target affluent
  consumers
• End of Aisle displays facing Lunchables

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General Mills Criteria for Success

• Compelling benefit to consumer
• Lunch Break and Mini Break provide control to
  consumer
• Differentiated product/positioning
• No other adult complete lunch concept currently
  available
• Delivery on promise of concept
• Higher quality, convenient nutritious and tasty
  product
• Consumer is aware that product is out there
• Leverage GMs marketing strength
• Product is available (distribution channels)
• Leverage GMs supply chain management

Source Discussion Peter McDonald
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Potential Threats

• New Competition within Category
• Perdue Farms
• Subsidiary DeLuca(TM)in the process of rolling
  out DeLishables(TM) (family-size entrees with a
  24-day shelf life)
• Kraft
• Strong brand awareness among children for lunch
• Recent Its Pasta Anytime acquisition
• Expected to launch other shelf-stable convenience
  meals
• History of aggressive marketing (Kraft took away
  12.6 market from Hamburger Helper in just 2nd
  year of launch of Stove Top Oven Classics)
• Response from non-category competitors like
  restaurants

Source Refrigerated Frozen Foods magazine
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Revenue Projections Market Potential

• Market potential for target consumers (2002)
• Total female population at age 35-64 57,979
• of population who work 60
• households with income gt50K 32
• usage occasions per week 2
• work weeks per year 48
• Lunch Break (in 000s)
• Average price 3.15
• Total market potential 3,366,307
• Revenue projection (2002) as of market
  potential 0.7
• Mini Break (in 000s)
• Average price 1.39
• Total market potential 1,485,450
• Revenue projection (2002) as of market
  potential 0.75

Assumptions based on U.S. Census, labor
statistics, and Nielsen panel data
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Revenue Projections Lunch Break
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Revenue Projections Mini Break
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Long Term (gt 3 years) Considerations

• Continuous innovation
• To sustain first mover advantage
• Consider entering ethnic markets
• Fast growing
• Line Extension
• Target men and kids for lunch
• Global branding
• For sustained growth

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Executive Summary

• Objective
• Create a three year sustainable growth strategy
  for General Mills for single-serve shelf-stable
  food category.
• Strategy
• Pursue a growth strategy for the Adult lunch
  market
• Target economically affluent, yet time poor
  consumers
• Provide a means to consumers to do something good
  for themselves, even when they feel they dont
  have the time

Take control of adult lunch market by empowering
consumers with the perception of convenient real
food preparation!
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Backup Slides
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Working Women
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Data Collection Methodology

• Secondary Research
• Consumer Survey
• Details follow
• Taste Test
• 6 consumers (team)
• Grocery Store Walks
• We include only grocery stores because most
  consumers buy convenience meals from these stores
• Krogers, Food Lion and Harris Teeter

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Consumer Survey

• Objective
• A preliminary survey was conducted to obtain
  information on consumer behavior, and perceived
  value of Bowl Appétit and competitors
• Sample Size
• 47 respondents
• Methodology
• Interviews conducted at public places to have
  access to diverse users of convenient meals (such
  as sport stadiums, coffee shops, and
  supermarkets)

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Customer Survey Form
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Survey Demographics

• Gender
• 36.2 Males, 63.8 Females
• Employment
• 42.5 Students, 34.0 Professionals, 17.0 Others

Race
Age
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Consumer Survey Results

• Alternative to cooking
• 59.6 eats out
• 53.2 uses fast food
• 25.5 uses ready-to-heat products
• 14.9 uses frozen food
• Consumers look for read-to-heat products at
• Frozen aisle 42.6
• Dry-Food (rice or pasta) aisle 42.6
• Other 14.8
• Consumer Behavior
• 46.8 of consumers eat the product by itself
• 12.8 of consumers eat with complement or as a
  side dish

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Consumer Survey Consumer Behavior

• Product consumption Time Place
• 68.1 consumers eats the product at home
• 21.3 consumers eats the product at work

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Consumer Survey Market Insights

• Consumer perceives Bowl Appétit as
• Lunch 31.9
• Dinner 40.4
• Snack 19.1
• Late Night 8.5
• Positioning
• At least 1/3 of consumers does not differentiate
  Bowl Appétit from frozen
• 34.4 associates Bowl Appétit with fast food

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Consumer Survey Market Potential

• Frequency of usage
• 29.4 consumers use products twice per week
• 6.3 consumers use products once a week
• Potential improvements
• 12.8 would like larger portion
• 10.6 is interested in healthier options
• 19.1 would like to have meat included
• 21.3 would like improvements on taste and/or
  consistency of products

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Taste Test Product Samples
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Bowl Appétit Porridge
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Bowl Appétit Potato Bowl
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Bowl Appétit Pasta Bowl
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Taste Test Results
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Taste Test Summary
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Taste Test Summary (continued)
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Taste Test Summary (continued)
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Taste Test Summary (continued)
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Taste Test Summary (continued)
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Brand AnalysisBrand Report Card

• Excellence at delivering consumer benefits
• Taste tests reveal unfavorable results
• Unmet need of control
• Relevance
• Consumers want more nutritional value
• Pricing strategy equivalence to value perception
• Price must relate to value added from control
  convenience

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Brand Analysis Brand Report Card

• Positioning
• Points of parity great
• Points of difference shelf stable but must
  deliver on taste/quality
• Consistency
• Merchandising is inconsistent
• Unclear messages to consumer
• Sensibility of portfolio hierarchy
• Excellent maximization of market coverage
• Must evaluate internal brand hierarchy

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Brand Analysis Brand Report Card

• Equity building
• Must maximize brand awareness
• BM understanding of consumer perception
• Must further research consumer likes/dislikes
• Proper support and sustainability of support
• Excellent advertising consumer promotions
• Monitoring sources of brand equity
• Insufficient internal data to assess this

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Bowl Appétit faces competition from other
categories

• Frozen ready meals
• 9.5B market in 2000
• 6 YTY growth primarily due to product
  development in low-fat meals, premium quality
  products and microwaveable alternatives
• Ready-to-serve canned soups
• 8.4 increase in 2000
• Meal replacement bars/snacks
• 1.5B in sales with 13 growth
• Restaurants
• Annual meals eaten in restaurant per person
  declined from 66 in 1999 to 64 in 2000
• Fewer take-out meals, down from 73 meals per
  person to 70 in 2000

Source Information Resources, Inc.
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Competitive Overview