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Bowl Appetit

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Product was not satisfying as a full meal ... Brands include Dole, Del Monte, Bush Beans, Campbell's, and Van Kamps. Switching Logic ... – PowerPoint PPT presentation

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Title: Bowl Appetit


1
Bowl Appetit
  • Monica Gaddy
  • Rahul Gupte
  • Amy Haller
  • Matt Klein
  • John LaBarca
  • Amy Leyh

2
Table of Contents
  • Objective
  • Data Analysis
  • Problem Definition
  • Strategy Development
  • Concept Development
  • Appendices

3
Our goal is to achieve sustainable revenue growth
  • Generate maximum level of sustainable growth in
    single-serve, shelf-stable food product revenues
    for the next three years
  • How?
  • Create increased awareness and trial of product
  • Create a relevant connection of brand with
    consumers
  • Increase repurchase rate

4
Table of Contents
  • Objective
  • Data Analysis
  • Problem Definition
  • Strategy Development
  • Concept Development
  • Appendices

5
We conducted research to assess the current
environment
  • Used Nielsen panel data to assess performance of
    shelf-stable category and individual Bowl Appetit
    product
  • Conducted competitive positioning research to
    determine how Bowl Appetit compares with core
    competition and substitutes
  • Conducted consumer research to determine current
    product perception and evaluate consumer needs
    and value sought within shelf-stable category

6
General Mills is attempting to serve an unmet
need in a niche market
  • Bowl Appetit positioned as a single-serve hot
    lunch alternative
  • Targeted at women and at-home moms
  • Value proposition based on delivering a tasty,
    easy meal at an affordable price

7
Numerous focus groups identified existing product
strengths 1
  • Product viewed as a more convenient alternative
    than frozen foods due to storage issues
  • Ready-to-eat bowl perceived as a benefit
  • Consumers identified potential usage occasions as
    a lunch alternative to be taken out of the home
  • Low price-point of under 2 perceived to be
    benefit

1 See Appendix A for complete summary of Focus
Group findings
8
The focus groups also identified several product
weaknesses 1
  • Product did not deliver on expectations of
    quality and taste
  • Product was not satisfying as a full meal
  • Preparation not as easy as competitive
    alternatives such as Instant Noodles and Chef
    Boyardee
  • Product perceived as unhealthy
  • Bowl Appetit name was not relevant to consumers
  • Betty Crocker core competency perceived as baked
    goods
  • Consumers do not make a connection between brand
    and shelf-stable meals

1 See Appendix A for complete summary of Focus
Group findings
9

We identified five major competitive groupings
  • Noodle cups
  • Add water cups
  • Microwave cups with meat
  • Microwave multi-packs
  • Frozen

10
The competition has several advantages over Bowl
Appetit 1
  • Consumers more apt to try competitors products
  • Major competitors such as Kraft and Ragu have
    leveraged existing products to create line
    extensions with which consumers are familiar
    (i.e. Easy Mac and Ragu Express)
  • Promotions are needed to induce trial of Bowl
    Appetit
  • Higher percentage of Bowl Appetit bought on deal
    versus competition

1 See Appendix B for complete competitive
analysis
11
In-store positioning is inconsistent1
  • Bowl Appetit is positioned in varying areas
    depending on the retailer
  • Shelf-stable products found in Pasta, Soup,
    and/or Beans/Rice aisles
  • Products are positioned on different shelves
    across stores (sometimes eye level, other times
    floor level)
  • Causes customer confusion and makes the products
    difficult to find

1 See Appendix C for storewalk data
12
Table of Contents
  • Objective
  • Data Analysis
  • Problem Definition
  • Strategy Development
  • Concept Development
  • Appendices

13
Bowl Appetit is not meeting sales targets
  • Target household penetration benchmark of 10 not
    met1
  • Current rates are 4.61 for rice and 5.46 for
    pasta2
  • Target repeat purchase benchmark of 40 not met1
  • Current rates are 19.23 for rice and 28.58 for
    pasta2

1 Steve Audette, Director of Consumer Insights,
Meals Division, General Mills 2 Nielsen Panel Data
14
Through focus groups we identified attributes
valued by consumers 1
  • Convenience
  • Easy preparation
  • Taste
  • Low cost
  • A connection to the brand

1 See Appendix A for complete summary of Focus
Group findings and Appendix D for SWOT analysis
15
Bowl Appetit is underdelivering on most
attributes which consumers value
16
Focus groups also indicate Bowl Appetit targeted
at the wrong consumer segment
  • Current target of women and at-home moms did not
    find the product to be a viable lunch alternative
  • Men found Bowl Appetit much more appealing than
    women
  • Men value convenience over taste, which can be an
    area of opportunity for current product

17
We also uncovered problems with the current
distribution
  • Focus group findings indicate that consumers do
    not plan ahead for purchase of this product
  • Product found exclusively in grocery/club stores,
    where purchases are based on planned future
    consumption
  • Inconsistent placement within stores leads to
    consumer confusion

18
Table of Contents
  • Objective
  • Data Analysis
  • Problem Definition
  • Strategy Development
  • Concept Development
  • Appendices

19
We identified areas of opportunity to improve the
value proposition 1
1 See Appendix D for SWOT analysis
20
General Mills needs to revise its strategy to
meet sales objectives
  • Reposition Bowl Appetit as a convenient hot food
    alternative for anytime of day
  • Redefine target market
  • Rebrand to connect name with product
  • Expand distribution channels beyond the retail
    food chain

21
Reposition Bowl Appetit as a convenient hot food
alternative for anytime of day
  • Emphasize convenience
  • Meal or snack on the go
  • Quick and easy alternative for dinner
  • Under 5 minute preparation time
  • Single-serve bowl included
  • Differentiate on quality and taste
  • Position as a better alternative to other
    shelf-stable products (not as an alternative to a
    home-cooked meal)
  • Expectations of taste must be met
  • Variety in product offerings
  • Offers more flavor than simple pasta or plain rice

22
Redefine Target
  • Target consumers who value convenience over the
    taste of a home cooked meal
  • Psychographic market segment
  • Value convenience and taste at an affordable cost
  • Busy lives - do not have time to pack lunch, go
    out to eat, or spend time cooking a meal
  • At work
  • At school
  • Demographic market segment
  • Single adults, skewing male
  • Middle-income

23
Rebrand product to connect name with product
  • General Mills needs to establish a relevant
    connection between the brand and the target
    consumer
  • Currently Bowl Appetit has no equity or relevance
    with consumers
  • Trial and awareness low
  • Repurchase rate low

24
Rebrand product to connect name with product
  • Need to ensure that product name resonates with
    target market
  • Need to ensure that product name describes the
    experience
  • Name should symbolize convenience, taste and
    quality
  • Name should present a filling food alternative
  • Name should not position as an alternative to
    home-cooked meal
  • General Mills has resources available to
    reintroduce product under new brand

25
Expand distribution channels beyond the retail
food chain
  • Current distribution only in supermarkets and
    club warehouses requires advance purchase
    decision
  • Gain distribution of product through alternative
    channels make purchase occasion more convenient
  • Convenience stores
  • Delis
  • Corporate lunch kiosks
  • Catering services
  • Utilize sales force expertise to forge new
    partnerships

26
General Mills has the capabilities to be
successful with this strategy
  • Marketing expertise
  • Segmenting consumers and developing a marketing
    plan to reach selected target
  • Well-known brands associated with quality and
    premium taste
  • Core competency in launching packaged foods
  • RD expertise
  • Strong sales force, experienced in negotiations,
    developing relationships and forging into new
    territories

27
Table of Contents
  • Objective
  • Data Analysis
  • Problem Definition
  • Strategy Development
  • Concept Development
  • Appendices

28
Two new concepts will leverage opportunities to
improve value, emphasizing convenience size
  • Larger sized full meal
  • Single serving side dish

29
The two new product concepts provide offerings
for anytime of day
Morning Noon Evening
Meal Preference
Breakfast
Lunch
Dinner
1.
Snack/Side Dish
2.
  • Lunch and Dinner needs will be addressed by the
    Full Meal offering
  • Snacking and smaller dish needs will be addressed
    by the On the Side offering

30
Meals made Easy offers a full meal as well as
convenience
  • Ingredients
  • 5.2 ounces of Pasta or Rice
  • Potato will be dropped for this line
  • Flavors
  • Pastas include current selection plus protein
    offerings such as tuna in a vacuumed-sealed pouch
  • Rice offering will include protein such as red
    beans and rice
  • Preparation
  • One step preparation add hot or cold water,
    microwave and eat!
  • Consistent preparation throughout line
  • Packaging
  • Deep bowl
  • Visible fill-line

31
The value proposition offers full meal
satisfaction with convenient preparation
  • Formulated to offer taste and quality expected of
    the Betty Crocker brand
  • Many great flavors including Red Beans and Rice
    and Fettuccini Alfredo
  • Packaged in a large bowl for convenient one-step
    preparation
  • Just add water to dry pasta or rice and heat in
    bowl
  • Filled with hearty single-serve portions

32
The full meal offering can target consumers from
many competitive groupings
  • Frozen Main Courses
  • Frozen Complete Dinners
  • Frozen Pizza
  • Lunch Combos/Kits
  • Canned/Jarred Spaghetti and Macaroni
  • Complete Packaged

33
Competitive Groupings Frozen Main Courses
  • Brands include Budget Gourmet, Croissant Pockets,
    Healthy Choice, Hormel Foods, Lean Cuisine,
    Stouffers, Swanson
  • Switching Logic
  • Freezer storage less convenient
  • Price
  • Switching Risks
  • Health factors
  • Taste
  • Market Size
  • 6.403 billion1

1 See Appendix F for Market sizing
34
Competitive Groupings Frozen Complete Dinners
  • Brands include Healthy Choice Dinners, Le Menu
    Healthy Dinners, Stouffers Dinner Supreme,
    Swansons Hungry Man
  • Switching Logic
  • Freezer storage less convenient
  • Preparation time
  • Switching Risks
  • No side dish/less variety
  • Portion size
  • Market Size1
  • 4.724 billion

1 See Appendix F for Market sizing
35
Competitive Groupings Frozen Pizza
  • Brands include DiGiorno, Jenos, Red Baron,
    Tombstone, and Totinos
  • Switching Logic
  • Freezer storage less convenient
  • Preparation more convenient
  • Healthier offering
  • Switching Risks
  • Taste
  • Its PIZZA!
  • Market Size1
  • 6.558 billion

1 See Appendix F for Market sizing
36
Competitive Groupings Lunch Combos/Kits
  • Brands include Charlies Lunch Kit (Starkist),
    Hormel Lunch Kit, Lunchables (Oscar Meyer), and
    Tastefuls (Jimmy Dean)
  • Switching Logic
  • Longer shelf life
  • Premium taste
  • Variety
  • Switching Risks
  • Preparation time
  • Convenience away from home
  • Market Size1
  • 1.419 billion

1 See Appendix F for Market sizing
37
Competitive Groupings Canned Spaghetti
Macaroni
  • Brands include Chef Boy-ar-dee, Franco American,
    Hormel Micro Cup, and Ragu Pasta Meals
  • Switching Logic
  • Premium taste
  • Healthier offering
  • Portion size/heartiness
  • Variety
  • Switching Risks
  • Cost
  • Preparation convenience
  • Market Size1
  • 1.169 billion

1 See Appendix F for Market sizing
38
Competitive Groupings Packaged Prepared Dishes
Dinner Mixes
  • Brands include Hormel/Dinty Moore Microwavable
    Meals, Its Pasta Anytime, Kraft Macaroni
    Cheese, Liptons Noodles Sauce, Ramen
  • Switching Logic
  • Portion size
  • Premium taste
  • Preparation time
  • Healthier offering
  • Switching Risks
  • Variety
  • Market Size1
  • 4.402 billion

1 See Appendix F for Market sizing
39
Meals made Easy will complement General Mills
resources and capabilities
By successfully addressing the need for a full
meal offering, Meals made Easy will fulfill
General Mills goal having market-leading
products.
40
Distribution channels are the key to the success
of the large size offering
  • Grocery stores
  • Available at all major chains and local grocers
  • Place consistently in the pasta aisle
  • Catering services/Vending
  • Partner with catering companies to penetrate
    corporate and educational institution cafeterias
  • Use vending channels to place product in kiosks
    and machines
  • Convenience stores
  • Place in major chains and drug stores
  • Target those individual stores positioned in
    heavy commuter routes
  • Club stores
  • Variety and multi-pack offerings

41
Pricing and promotional strategies will drive
sales
  • Pricing of the full meal offering should reflect
    its quality and size, while being mindful of the
    cost-conscious consumer
  • Suggested retail price 3.29 per 5.2 oz. bowl
  • Small price premium above competition works to
    communication products distinct value
    proposition
  • Promotions should occur at the beginning of the
    lifecycle to bring awareness to the new products
  • Co-promotions with complementary products like
    the side-dish offering should occur to
    continually encourage trial

42

The second concept is a side dish providing a
complement to main dishes or as a snack food
product
  • Ingredients
  • 1.25 ounces of Pasta, Rice, Vegetables, Potatoes
  • Flavors
  • Pastas include tomato and cream based offerings
  • Rice will include current offering as well as new
    flavors
  • Mixed Vegetables, Corn, Green Beans, etc.
  • Mashed Potatoes, Potatoes Au Gratin, etc.
  • Preparation
  • One step preparation add hot or cold water,
    microwave and eat!
  • Consistent preparation throughout line
  • Packaging
  • Deep bowl
  • Visible fill-line

43
Sides made Easy will provide significant value
to its customers
  • Formulated to offer taste and quality expected of
    the Betty Crocker brand
  • Many great flavors including Potatoes Au Gratin
  • Packaged in a small bowl for convenient one-step
    preparation
  • Just add water and heat in bowl
  • Ideal complement to single-serve portion meals
  • Single serve size eliminates wasted leftovers

44
The side dish offering targets consumers from
many competitive groupings
  • Canned Vegetables
  • Instant Rice/Potatoes
  • Fresh Produce
  • Frozen Vegetables

45
Competitive Groupings Canned Vegetables/Beans
  • Brands include Dole, Del Monte, Bush Beans,
    Campbells, and Van Kamps
  • Switching Logic
  • Convenient
  • Taste
  • Variety
  • Switching Risks
  • Health
  • Market Size1
  • 4.4 billion

1 See Appendix F for Market sizing
46
Competitive Groupings Instant Rice/Potatoes
  • Brands include Uncle Bens, Zatarain, Minute Rice,
    Success
  • Switching Logic
  • Convenience
  • Portion size
  • Taste
  • Switching Risks
  • Price
  • Market Size1
  • 5.7 billion

1 See Appendix F for Market sizing
47
Competitive Groupings Fresh Produce
  • Products include fruits and vegetables
  • Switching Logic
  • Non-perishable
  • Portion size
  • Convenience/storage
  • Switching Risks
  • Health
  • Price
  • Taste

48
Competitive Groupings Frozen Vegetables
  • Brands include Green Giant and Birds Eye
  • Switching Logic
  • Portion size
  • Storage convenience
  • Switching Risks
  • Taste
  • Price
  • Market Size1
  • 4.1 billion

1 See Appendix F for Market sizing
49
Distribution channels are the key to the success
of the small side offering
  • Grocery stores
  • Available at all major chains and local grocers
  • Place consistently in the pasta aisle
  • Vending
  • Use vending channels to place product in kiosks
    and machines
  • Club stores
  • Variety and multi-pack offerings

50
Pricing and promotional strategies will drive
sales
  • Pricing of the side dish offering should reflect
    its quality and convenience, while being mindful
    of the cost-conscious consumer
  • Suggested retail price 0.79 per 1.25 oz. Bowl
  • Priced such that a consumer can buy two sides and
    still keep the price of a full meal under 5.
  • Promotions should occur at the beginning of the
    lifecycle to bring awareness to the new products
  • Co-promotions with complementary General Mills
    products such as Hamburger Helper and Progresso
    should occur to continually encourage trial

51
Revenue projection assumptions for Full Meal and
Side Dish concept
  • Market Sizing1
  • 25 billion for Full Meal market
  • 13 billion for Side Dish market
  • Initial Market Share of .05
  • Growth Rate of
  • 10 from Year 1 to Year 2
  • 20 from Year 2 to Year 3
  • Growth rate increases with market awareness

1 See Appendix F for Market sizing
52
General Mills has an opportunity to achieve 162M
and 86M respectively from the Full and Side
Concepts
20 Growth
10 Growth
(000s)
53
Table of Contents
  • Objective
  • Data Analysis
  • Problem Definition
  • Strategy Development
  • Concept Development
  • Appendices

54
Appendix Documents
  • Appendix A Focus Group Findings
  • Appendix B Competitive Analysis
  • Appendix C Storewalk Data
  • Appendix D SWOT Analysis
  • Appendix E Porters 5 Forces
  • Appendix F Market Sizing
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