MARKETING STRATEGY 468: General Mills Project Bowl Appetit

1
MARKETING STRATEGY 468 General Mills -- Project
Bowl Appetit

• Team 11 (Section 201)
•  Lillian Lilly Jorge Tessey
• Gabriel Michalup Hide Tomita
• Amrit Shergill Zoya Trofimenko

2

Agenda

• Consumer Survey the first step
• What
• Two Progresso-branded products for two market
  segments
• One also co-branded with Pillsbury
• Product Concept Testing
• Why
• Industry
• How
• Marketing Strategy
• Result
• Revenue Projections
• Q A

3
Our Consumer Survey

• 52 Respondents asked about ready-to-eat meals.
  Result?
• Women are more concerned about nutrition than
  men. 50 of Male respondents didnt care vs
  24 of women.
• However, nutrition is trumped by convenience in
  reason for purchase ready-to-eat meals.
• Top nutritional concerns are fat, calories, with
  sodium distant 3d.
• Campbells soup is the product most frequently
  purchased by women in the last 6 months (55)
• 50 of married respondents eat ready-to-eat food
  for lunch while 77 of singles eat it for dinner.
• General Mills brands associated with
  ready-to-eat Hamburger Helper Progresso

4
Our Two Solutions

• Progresso Chili Chips

• Progresso Lunch-to-go!

5
Product 1 Progresso Chili Chips
6
Product 1 Progresso Chili Chips

• NEED/VALUE PROPOSITION
• Hearty eaters need a quick, healthy,
  easy-to-prepare meal, all in one package.
• OFFERING
• 15oz. Progresso Bean Chili Tortilla Chips
  (each part in self-contained bowl snaps
  together as one package)
• Price 2.89

7
Concept Testing - Chili

• Key Results
• The Progresso Brand preferred, followed by Hormel
• Surprising result initial product concept was
  Old El Paso branded but consumers strongly
  preferred Progresso
• 70 of those surveyed would try the product
• Most said it appealed to single men and kids
• Consumers overwhelmingly described it as
  complete, convenient and appealing
• Equally associated with dinner and lunch
• 70 willing to pay between 2.49 and 2.89
• Majority preferred name Chili Chips

8
Product 2 Progresso Lunch-to-Go
9
Product 2 Progresso Lunch-to-Go

• NEED/VALUE PROPOSITION
• Busy women need a quick, healthy,
  easy-to-prepare lunch, all in one package.
• OFFERING
• 12 oz. Progresso 99 Fat Free soup in a bowl
• 2 Pillsbury breadsticks or one bread twist
• Plastic spoon and napkin already in package
• Price 2.49.

10
Concept Testing - Soup

• Key Results
• Progresso and Campbells close in recognition/
  preference
• Soup with breadstick, all in one package, would
  appeal to busy women
• The product was described as quick, convenient,
  high quality
• Concern about sodium, fat, and presence of meat
• Consumers associated it primarily with lunch at
  work, with dinner at home as second use
• 80 of them were willing to pay up to 2.49
• Majority preferred Lunch to go name over
  Complete

11
Chili Industry

• 85 of consumers surveyed in 1999 considered
  Chili as a meal.
• Sales revenue growth 25 over last 3 years
• New products introduced cater to adults, oriented
  around nutrition, eg chili ready meals (cans,
  dried in a pouch).
• Most popular type is regular chili with beans.

12
Soup Industry

• Overall 4 decline in soup market forecast, but
  three segments are growing
• Soups away from home
• Ready-to-serve soups (more likely to be premium
  soups)
• Menu items in restaurants.
• Biggest concerns are time, convenience, and ease
  of preparation

13
Competitors

• SOUPS
• Campbell Soups, Knorr soups (Unilever), Healthy
  Choice, Advantage/10 Soups (light soups from
  ConAgra).
• Campbells Soup Co ranked as the number one
  manufacturer overall in 1999, with a market value
  share of 54.8.
• CHILIS
• Hormel, Armour Star Chili, Wolf Stagg.
• Hormel is the leader with 14 of the market share

14
Marketing Strategy

• a) Leverage Market-Based Assets
• Progresso Brand Equity Enjoys customer loyalty
  and brand awareness, perceived as having
  innovative new flavors
• General Mills Knowledge Extensive knowledge
  about customer profiles, suppliers and channels

15
Distribution Chili Aisle
Placement for our product
16
Distribution Soup Aisle
Placement for our product
17
Progresso Marketing Strategy

• c) Pricing Strategy

Price



High

Medium

Low



High


Bear Country

Progresso Kits


Quality

Mediu
m

Uncle Bens
Kraft Mc Pasta

Campbells


Low


Bowl Appétit!

Maruchan

• High-value strategy High-quality product at an
  average price. We consider that our target
  customers are price sensitive since they can
  easily compare the quality and price of
  substitutes.

18
Chili Revenue Forecast
Revenues are in US Million
19
Soup Revenue Forecast
Revenues are in US Million
20
Conclusion

• Synergies created by GM and Pillsbury
• Progresso high brand equity fits target markets
  -- young, quality conscious and growing
• Products fill unserved market needs healthy,
  quick hot food in a kit
• Make optimal use of GM production and
  distribution networks

21
Q A