Bowl Appetit Presentation

1
Bowl Appetit Presentation

• Team Members Tiago Eiro Tommy Jacobs
• Matt Michaud Judd Murphy
• Chris Port Wei Li
• November 19, 2001

2

• Agenda

• Project Methodology
• Primary Research
• Market Study / Research
• Strategy Development
• Concept Development
• Description of concepts
• Key strategic decisions
• Target customers
• Competition
• Fit with firm capabilities, image
• Financial projections

3

• Project Methodology

• The group used the following framework and tools
  to guide the strategy and concept development
  processes

• SWOT analysis
• Perception mapping
• Scanner/panel data

• Brainstorming session
• Financial analysis

• Surveys
• Store visits

• 3- Cs based on
• Analyst reports
• Web site visits
• Scanner/panel data

4

• Project Methodology

Primary Research

• Surveys
• Store visits

5

• Survey Results

The following breaks down the survey respondents
by age and gender. The target audience for the
survey was females between 30 50. While not
statistically significant, the number of
respondents to the survey directed our efforts in
developing strategies and new product concepts.
6
Survey Insights Preparation

• People typically allot 5-10 minutes to prepare
  lunch
• Want convenience of fast preparation
• Usually no assigned lunch hour- squeeze meals in
  whenever there is an opportunity
• Generally eat meals for one at home or at desk
• Conclusion There is a market for the easy to
  prepare, single serve, shelf stable lunches

7
Survey Insights Variety

• Whether at home or at the office, people want
  variety
• Leftovers is a major substitute different every
  day
• People want more than one food group
• Particularly interested in something sweet after
  a meal
• To get more than one food group is considered
  healthy
• Conclusion Could add to perceived consumer value
  by offering more than one food group in container
• Bowl Appetit Side Dish More Complete meal

8
Survey Insights Health

• Asked people to rate characteristics (scale 1
  to 5 - five most important)
• Convenience 3.58
• Taste 4.41
• Healthy 3.79
• Price 3.33
• Brand Quality 2.41

9
Survey Insights Conclusion

• Conclusions from Survey
• People willing to spend more money
• Taste is very important
• Health is second most important
• People would prefer to have a low-fat product to
  a product fortified with vitamins and minerals

10

• Store Visit Results

• Food Lion
• Only two SKUs displayed (Alfredo and Tomato
  Parmesan)
• Price 1.29
• Placed with Hamburger Helper, Mac and Cheese,
  Pasta Roni, and Stovetop products
• The product is tucked away in an odd corner- the
  two SKUs are stocked one on top of the other

• K-Mart
• Currently dont offer Bowl Appetit at the South
  Square location. They sell it in other
• locations, depending on the stores profile
• This store does offer some competing product
  (Macaroni and Cheese, Dinty Moore meals)
• Store has very limited space for shelf stable
  products
• Frozen products are located on the other side of
  the store

11

• Store Visit Results

• K-Mart (cont)
• Conversation with K-Mart Operations Manager
• Corporate headquarters determines which products
  are sold and in what volumes
• Marketing department tells store how to stock to
  different products (shelf space size and
• location)
• Unestablished products have to pay a slotting fee
  
• To get a new product into a store, companies will
  often times offer free samples within a
• store to raise customer awareness and promote the
  product
• Corporate headquarters strikes promotional deals
  with suppliers- deal with coupons,
• displays and pricing

12

• Store Visit Results

• Harris Teeter
• Shelf stable, single serve section of store is
  about 8 feet long
• There are seven shelves
• Bowl Appetit has five SKUs, all of them on the
  bottom row
• Price 1.89
• Four rows of Macaroni and Cheese are above Bowl
  Appetit (Kraft and Generic)
• Hamburger Helper and Campbell's Super Bakes are
  in the same section, Tuna fish and Rice
• dishes are nearby
• Product is far from the frozen section
• Bowl Appetit is surrounded by just add meat
  products (like Campbells and Hamburger
• Helper)- probably not pure substitutes
• Conversation with Harris Teeter Manager
• Betty Crocker has to pay a slotting fee- the fee
  is smaller for the lowest shelf
• The product was hot when first introduced-
  heavily promoted, but since it has died down
• Product is in a growing sector, but really
  depends on coupons
• Promotions last two weeks and usually increase
  sales ten times over
• Gross margins on dry product is typically 25
  (average for the store)- frozen foods typically
• marked up 35

13
Store Visit Conclusion

• The market space for shelf stable, convenient
  meals is filled with product that are high in fat
  and that have little nutritional value (e.g.
  Macaroni and Cheese, Noodle Dishes and Chef
  Boyardee canned goods).
• Promotions such as in-store displays and coupons
  drive sales. Can only do promotions a limited
  number of times, however, before they lose their
  effectiveness.
• If a product doesnt move, store managers are
  likely to cancel them.
• To get a new product into a grocery store chain,
  companies are usually forced to pay a slotting
  fee. Poor shelf location in stores can be a
  distinct disadvantage.
• Bowl Appetit is priced at a bit of a premium over
  some of the more traditional shelf stable
  products, but it is significantly cheaper than
  frozen entrees.

14

• Project Methodology

Market study / Research

• 3- Cs based on
• Analyst reports
• Web site visits
• Scanner/panel data

15

• Situation Appraisal

• A brief assessment of General Mills, the
  addressable market for Bowl Appetit and the
  competitors within the industry will provide
  insight in order to facilitate strategy
  development.

16

• Situation Appraisal Customers

Understanding the customer required assessing the
scanner and panel data, as well as speaking
directly with a diverse group of potential target
customers.
Customer

• The group conducted 50 surveys and numerous
  interviews to determine customer perception of
  the current product and to help identify
  strategic areas for brand extension
• Survey results demonstrate that taste and
  healthiness are the primary decision-making
  attributes for single-serve meals
• Customers expect convenience, fair pricing and
  quality but most choose based on health (eg.
  Healthy Choice) or taste (eg. Mac Cheese)
• Customers also stressed that taste is often
  correlated with the diversity of the food offered
  (i.e. one taste versus multiple tastes)

17

• Situation Appraisal Customers

The surveys and interviews provided anecdotal
evidence suggesting potential strategies for
brand extension.
Customer

• Customer comments focused on three areas for
  improvement in the convenient-meal arena 1)
  taste, 2) healthiness, and 3) heartiness (most
  offerings are not filling enough)
• The following are three quotes from our
  survey/interview process which highlight these
  trends
• If Im going to cook something in the microwave,
  Im looking for something more hearty than a side
  dish of potatoes..
• I immediately look at the calories and fat
  content when Im buying a frozen entrée or
  something that I would take to work for lunch.
• I just cant seem to find convenient meals
  (frozen or shelf-stable) that taste very good.
  As a result, McDonalds, or some other fast-food,
  usually wins out.

18

• Situation Appraisal Company

The assessment of General Mills included
understanding the Bowl Appetit brand as well as
other strengths within General Mills.
Corporation

• General Mills has one of the most diverse and
  holistic brand portfolios in the market
• Based on survey results, Betty Crocker had 100
  brand recognition, but many respondents didnt
  realize Betty Crocker had offerings outside of
  baking products
• Bowl Appetit brand recognition was very low
  (under 15)
• The Progresso and Old El Paso brands also had
  very strong recognition, suggesting
  cross-branding potential
• Betty Crocker, while not typically associated
  with this category, provided a base of quality
  and consistency with which to launch Bowl Appetit
  into national exposure.

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• Situation Appraisal Company

Bowl Appetits lack of brand awareness also
evident through web site research and further
store visit insights
Corporation

• Betty Crocker website void of any mention of Bowl
  Appetit (source BettyCrocker.com)
• Search at General Mills website for Bowl
  Appetit results in no matches (source
  GeneralMills.com)
• Television advertisements for Bowl Appetit
  targeted at incredibly narrow demographic stay
  at home moms seeking easy meal at home
• Bowl Appetit appears to have poor placement in
  most stores visited as noted in store visit
  findings

20

• Situation Appraisal Company

A key takeaway from store visits was the poor
visibility of the Bowl Appetit product within the
store. To better understand this, we benchmarked
General Mills against the competition regarding
advertising and marketing expense (slotting fees
are included here) as a of Sales.
Corporation
So, while General Mills is the market leader in
this expense category, Bowl Appetit has not been
the beneficiary in terms of good visibility
within the stores. However, the Bowl Appetit
brand has some benefit from an extensive ad
campaign and we will make specific
recommendations regarding how to improve the
message to the potential consumer.
21

• Situation Appraisal Company

A final aspect of the company analysis focused on
brand/product awareness amongst other brands and
products in the General Mills brand portfolio
Corporation

• Strong brand awareness amongst several brands
  within the portfolio, with the three highlighted
  above scoring at or near the top regarding
  awareness
• Quality associated with all brands, yet each
  clearly appears to have separate connotations in
  respondents opinion
• Betty Crocker Baking products
• Nature Valley Healthy / natural snacks
• Progresso Soup

22

• Situation Appraisal Competition

The final aspect in understanding the marketspace
is an assessment of the competition. Based on
survey and research results, the competitive
space was, to a certain extent, anything that
fights for share of stomach in the
convenient/minimal preparation snack/meal
category. That said, there are definitive
sub-segments based on usage and demographics, as
defined later.
Competition
Easy soups
Leftovers
Frozen Meals
Snack Bars
Bowl Appetit
Microwaveable Pasta - Kids
Eating Out
Sandwiches
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• Situation Appraisal Competition

Each of the competitors and their positioning of
their products must be assessed to understand the
marketspace
Competition

• Ragu Express
• Targeted solely at kids
• Pasta now equals convenience

• Campbells Soup To Go
• Targeted at working adults
• Lunch can be convenient yet tasty

• Stouffers Mac and Cheese
• Targeted at families
• Heartiness/portion size can satisfy entire family

• Its Pasta Anytime
• Targeted at adults
• Authentic tasting pasts can be quick and easy
  now

• Kraft Easy Mac
• Targeted at kids with message to mom that snacks
  are easy now
• Pasta now equals convenience

• Lean cuisine
• Targeted at adults
• Lunch doesnt have to equal leftovers/fast
  food/bland alternatives

• Uncle Bens Rice/Noodle Bowl
• Targeted at younger adults
• Passion lesson connotates passion for food and
  life satisfied by Uncle Bens

• Healthy Choice
• Targeted at adults (all ages)
• Healthy feeling good
• Multiple tastes in one serving

• Chef Boyardee
• Targeted at older kids with message to mom that
  this is what kids want
• Pasta now equals convenience

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• 3-Cs Takeaways

• The customer values taste and healthiness
• There is little brand recognition for the current
  Bowl Appetit offering(s)

• General Mills has a strong brand portfolio which
  offer cross-branding opportunities
• There appears to be a gap between GMs
  promotional spending and Bowl Appetits share of
  the promotional pie

• The competitive products for Bowl Appetit are
  marketed directly at adults
• Messages focus on heartiness, health and variety
  of offerings

25

• Project Methodology

Strategy Development

• SWOT analysis
• Perception Mapping
• Scanner/panel data analysis

26

• Situation Appraisal SWOT Analysis

Strengths Weaknesses
Brand reputation for quality and consistency Extensive advertising reach and marketing power Product offering is extremely convenient and fairly priced Taste rates high on taste test surveys in comparison to competition (internal surveys done by our group) Limited brand awareness (for Bowl Appetit) Lack of clear, identifiable target consumer Product offering is too one-dimensional and does not satisfy hunger Product offering cannot compete along health dimension Poor visibility in stores
Opportunities Threats
Bowl Appetit has not heavily targeted women at home, which represents large potential There exists an opportunity to fill market gaps based on product usage dimensions (ie. satisfying, tastes great, good for me) Retaliation - the more established players in the market will not take Bowl Appetits presence lightly Negative public sentiment towards shelf-stable meals
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Perception Mapping

• After a SWOT analysis, the competitive space must
  be defined before a strategy can be developed
• Kim and Mauborgne suggest looking across
  boundaries to define the competition
• Accomplishing this requires understanding the
  attributes Bowl Appetit appeals to and then
  defining options within these attributes

Healthy
Taste
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• Perception Mapping

Perception Mapping
Healthy
Healthy Choice

• Health and taste are the primary differentiating
  attributes, as defined by our consumer panel.

Opportunity Area
Lean Cuisine
Taste
Uncle Bens
Bowl Appetit
Stouffers
Private Labels
This map illustrates consumer perceptions of the
Bowl Appetit offering in comparison to some its
larger competition (including frozen goods) as
well as an opportunity area for brand extension.
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Data Analysis Competition

• Bowl Appetit Shelf-Stable Single-Serve Market
  Share Under current offering, share is
  declining even with new potato product (source
  Nielsen scanner data)

25.0
20.0
15.0
of Volume Market Share
10.0
5.0
0.0
Sep-00
Oct-00
Nov-00
Dec-00
Jan-01
Feb-01
Mar-01
Apr-01
May-01
Jun-01
Jul-01
Aug-01
4 Week Period
Bowl Appetit (Total)
Potato
Pasta
Rice
30

• Data Analysis Competition

• Target market Great market share with working
  women, but need to improve appeal to stay at home
  moms (source Nielsen panel data)

140.0
120.0
100.0
80.0
Buying Index
60.0
40.0
20.0
0.0
Bowl Appetit
Kraft Easy Mac
Maruchan Instant Lunch
Hormel
Chef Boyardee
Female Head - Employed
Female Head - Stay at Home
31
Data Analysis Competition

• Nearly a quarter of purchase price of Bowl
  Appetit represents coupon discount indicates
  people only buy product when it is promoted
  heavily (source Nielsen panel data)

32

• New Product Concepts Healthy line

Perfect Timing customers unit demand for
healthy options in the post-Christmas months
shows enormous potential to immediately capture
large volume growth with a healthy offering.
(Source Healthy Choice Sales, Nielsen scanner
data)
33
Data Analysis Competition

• Key takeaways from market size and market share
  slides
• Market share is deteriorating at a fairly
  constant pace
• Illustrates lack of enthusiasm for product
  offering advertising and brand name induced
  trial, but product did not induce loyalty
• Some competitors, such as Kraft Easy Mac and
  Ragu, have been stealing share at an alarming
  rate over the past few months
• Since no products compete on health dimension,
  consumers have flocked to the tastiest options.
  Marginal health benefits, if not marketed
  properly, have not led to improved sales.
• Highlighted by fact that Kraft / Ragu products
  need little promotion for sales
• Timing is perfect for healthy option given
  pending New Years resolution season (January
  February) that appears to drive immense volume
  upswing for healthy options

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• Bowl Appetit Recommended Strategy

Currently, Bowl Appetit is focusing its
advertising efforts on the stay-at-home mom.
This should help improve market share in the
short term. However, most consumers feel that
Bowl Appetit is better suited for the
working-woman segment. Therefore, Bowl Appetit
has somewhat of an identity crisis. As you can
see from the previous slide, there are various
other segments, based on both demographics and
primary decision-making product attributes, which
can be easily targeted with some product
modifications. By expanding the current product
offerings to suit a larger portion of convenient
lunch-eaters, there lies great opportunity to
achieve much higher market share with a better
tailored product offering.
35

• Bowl Appetit Recommended Strategy - Filling the
  market void

• Consumer dissatisfaction is focused in three
  areas
• Taste
• Healthiness
• Heartiness
• Consumers are satisfied (enough) with
• Convenience
• Price
• Our strategy is to improve our product offering
  to maximize our delivery of these three
  dimensions, while ensuring that convenience and
  fair pricing do not suffer.

36

• Bowl Appetit Recommended Strategy

The following table illustrates the market sizes
for each of the identified segments, in the
attempt to gauge opportunity for product
extension.
Taste Health
Dominated by Chef Boyardee/Hormels Kid Kitchen- Convenience and taste primary selling points Dominated by Chef Boyardee/Hormels Kid Kitchen- Convenience and taste primary selling points
45 of segment ? 16 of FH Market 55 of segment ? 19 of FH Market
30 of segment ? 20 of FH Market 70 of segment ? 45 of FH Market
More Likely to eat out for lunch or bring leftovers More Likely to eat out for lunch or bring leftovers
Children/Teens Women/home (35 of FH
Market) Women/work (65 of FH Market) Men
37

• Bowl Appetit Recommended Strategy

The following table illustrates both primary
product attribute and demographic segmentation.
As you can see, Bowl Appetit is focusing its
marketing energies primarily in one segment.
NOTE all segments seek greater variety.
Taste Health
Not suited- Small market size Not suited- Small market size
Current target Lower calories/fat
Better advertising Lower calories/fat
Larger portions Larger portions, lower calories/fat
Children/Teens Women/home Women/work Men
MORE VARIETY
38

• Project Methodology

Concept Development

• Brainstorming session
• Financial analysis

39

• Screening Down New Product Concepts

A brainstorming session was conducted to identify
new product concepts within the two strategic
areas defined as our target areas for line
extensions
40

• New Product Concepts

Based on the analysis/research conducted, the
Healthy Line and Split Bowl extensions were
chosen.
Healthy line
Reduced fat and calories Contains the nutrition you need to get you through the day Market it as a healthy sub-brand Opens doors to those that typically consider Betty Crocker unhealthy
Split Bowl
A complete meal available in 5 minutes Soup, entrée and desert of your choice Opportunity to cross-brand (eg. Progresso Soup and Betty Crocker brownie) Opportunity to combine products (i.e. healthy split bowl)
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New Product Portfolio

• The following is our recommended product
  portfolio. We have only increased total SKUs
  from 10 to 12, by eliminating the potato line.
  We were cognizant of the issues more SKUs would
  cause (eg. confusion among consumers, lack of
  shelf-space in the stores), and felt that the
  potato line, even though it has not had proper
  time to grow, was the best option for elimination.

Regular
2 Pasta offerings Current best-sellers, which should allow the majority of market share to be retained 2 Rice offerings Same concept
Healthy Line
2 Pasta offerings One current best-seller, modified to be lower in calories and fat One new dish with a more dietary connotation, in order to increase total brand variety 2 Rice offerings Same concept
Split Bowl
2 Pasta offerings One regular entrée combined with popular, tasty soup (eg. Chicken noodle) and a BC brownie One healthy entrée combined with healthy soup (eg. Vegetable) and a Nature Valley granola bar Same concept for 2 rice offerings
42

• New Product Concepts Product Introduction

• Four-pronged approach to product introduction
• Awareness Media blitz and prime shelf-space are
  critical, at least in the introduction phase, to
  gain awareness for the two new products. General
  Mills promotional monies need to target the Bowl
  Appetit brand (slotting fees/end-caps/etc.) to
  accelerate movement along the product development
  lifecycle.
• Acceptance The idea has to make sense to
  consumers they need to think to themselves,
  This is something I am really interested in
  trying.
• Trial Additional incentives, such as coupons
  and end-of-aisle displays, along with
  fair-pricing, should induce trial among our
  current customers and our new potential target
  customer base.
• Loyalty Providing a quality product, that
  focuses on the primary differentiating attribute
  that consumers are seeking (whether it be healthy
  or variety/heartiness), combined with all other
  important product attributes mentioned earlier,
  the Bowl Appetit product line should provide for
  loyal customers.

43
New Product Concepts Product Introduction
With the new line extensions and leveraging the
Betty Crocker brand through better use of
promotional dollars, we should be able to capture
greater cash flows and move to a higher market
based asset line
44

• New Product Concepts Healthy line

Healthy
Betty knows Health
45

• New Product Concepts Healthy line

What is it?
Healthy line
Reduced fat and calories Contains the nutrition you need to get you through the day Market it as a healthy sub-brand Opens doors to those that typically consider Betty Crocker unhealthy
46

• New Product Concepts Healthy line

• Why Healthy?
• Consumers stated in our surveys that there was a
  growing desire to eat convenient, healthy lunches
  to displace fast-food and other less-healthy
  alternatives.
• Consumers are not satisfied with the current
  healthy choices, most of which are frozen
  offerings.
• The market size for healthy convenient meals
  (as defined in the market sizing slide) is large
  and ripe for the picking.
• This should be a relatively easy product
  transformation one that can be fully supported
  by Betty Crockers marketing power.

47

• New Product Concepts Healthy line

Perfect Timing customers unit demand for
healthy options in the post-Christmas months
shows enormous potential to immediately capture
large volume growth with a healthy offering.
48

• New Product Concepts Healthy line

• Key Strategic Decisions
• Target market women, both at home and in the
  office. The health-conscious segment for women
  is substantially larger than that for men,
  especially when factoring in those willing and
  able to carry and prepare a shelf-stable meal.
• Competitors virtually new territory for the
  shelf-stable, single-serve market. Most of the
  competition, and market share, will come from the
  frozen food section (eg. Lean Cuisine and Healthy
  Choice)
• Fit with firm equities, capabilities, resources
  this is a nice way to show the consumer that
  Betty Crocker is more than just Brownies. Stigma
  of baked goods, often unhealthy, may be difficult
  to shake, but a sustained marketing campaign will
  be effective.

49

• Healthy line Marketing Message

• The following will guide the introduction of the
  Healthy Line extension
• Customers message directed at women, both at
  home and in the office. Message focuses on
  healthy alternative for lunch/snack, emphasizing
  active women who value their health yet seek a
  tasteful alternative to the salad/snack bar
  alternative
• Competitors message emphasizes the ready-to-eat
  aspect and quality perception of Betty Crocker
  over its frozen rivals (Lean Cuisine and Healthy
  Choice). Highlights the tired option that
  frozen meals present, emphasizing the relatively
  unchanged landscape within the frozen meals
  category over the last 10 years or so
• Company Emphasized the general Mills / Betty
  Crocker focus on quality. Potential tag line
  Betty knows Health

50

• Healthy line Marketing Strategy

• The following is an outline for the marketing
  campaign of the Healthy line extension
• Promotions the extension should be promoted
  immediately to create brand awareness for the
  post-holiday boom that healthy meals encounter
  (see previous slide)
• Television Advertisements should begin
  highlighting the post-holiday bloated feeling
  many people feel
• Healthy option is a way to get rid of those extra
  pounds
• Bland/tasteless/freezer burnt frozen alternatives
  arent the only way to get back into shape after
  the holidays
• Print Promotion should begin Sunday before
  Christmas and for next 5 weeks promoting Healthy
  option with coupons

51

• Healthy line Marketing Strategy

• The challenge to the Healthy Line extension will
  be maintaining some of the spike highlighted in
  the previous graph.
• Promotions a Springtime promotion should
  highlight the pending arrival of bathing suit
  weather and the need to prepare.
• Television Advertisements should begin
  highlighting the fact that healthy meal options
  arent just for the post holiday resolution
  period anymore
• Healthy option is a great way to get ready for
  the beach
• Healthy options dont have to be boring anymore
  (possible launch of new sku (flavor) could
  promote this message)
• Print Promotion should run for 5 weeks beginning
  in mid-March promoting Healthy option with
  coupons

52

• Healthy line Marketing Strategy

• The challenge to the Healthy Line extension will
  be maintaining some of the spike highlighted in
  the previous graph.
• Promotions a Fall promotion should highlight
  the pending arrival of the holiday season and the
  need to prepare for those pounds youll be
  adding
• Television Advertisements can focus on the
  pounds that will be packed on over the
  holidays, so dont forget to pack your Bowl
  Appetit Healthy meal today so you can enjoy
  tomorrow
• Healthy option is a great way to get ready for
  the holiday and those extra pounds
• Healthy options dont have to be too terribly
  different from those holiday meals you cant wait
  to eat
• Print Promotion should run for 5 weeks beginning
  in early-September promoting Healthy option with
  coupons

53
Financial Projections Healthy Line Methodology

• Key Assumptions
• Market The market for the Healthy Line brand
  extension is the current market space occupied by
  the Healthy Choice and Stouffers Lean Cuisine
  lines
• Market space defined based on survey results
  directed at healthy options respondents seek
  when purchasing ready-to-eat microwaveable meals

54
Financial Projections Healthy Line Methodology

• Key Assumptions (cont)
• Bowl Appetit market Bowl Appetit can capture 10
  of the healthy market in the first year.
• Bowl Appetit market size determined assessing the
  cyclicality of healthy options.
  January/February offer immense opportunity to
  capture large and immediate market share given
  healthy product sales in this time period (see
  graph)
• Bowl Appetit Healthy line extension and marketing
  campaign will also allow overall healthy market
  to grow by 10 based on extended offerings and
  marketing campaign directed at health-conscious
  consumers following Holiday binges
• Healthy option will cannibalize current Bowl
  Appetit offerings by 25. Based on fact that
  most respondents to survey seeking healthy
  option for ready-to-eat microwaveable meals
  rarely buy Bowl Appetit or other non-healthy
  options
• Healthy line priced at current prices

55
Financial Projections Healthy Line
The following shows how the market size for the
Healthy Line was determined and first-year
revenues (projections shown on next page) were
calculated
56
Financial Projections Healthy Line
The following shows 3 year revenue projections
for the Healthy Line and regular Bowl Appetit
offerings.
57

• New Product Concepts Split Bowl

Introducing a merger that just solved all of
your lunch-time concerns.
58

• New Product Concepts Split Bowl

What is it?
Split Bowl
A complete meal available in 5 minutes Soup, entrée and desert of your choice Opportunity to cross-brand (eg. Progresso Soup and Betty Crocker brownie) Opportunity to combine products (i.e. healthy split bowl)
59

• New Product Concepts Split Bowl

• Why Split Bowl?
• Consumers desire a more complete, well-rounded
  offering in order to satisfy their expectations
  of lunch, as well as their hunger.
• General Mills has various brands that offer
  wonderful cross-branding opportunities this
  will also facilitate brand recognition for Bowl
  Appetit.
• This product allows Bowl Appetit to compete for
  share of stomach with many more offerings,
  bringing men and more women into the potential
  target market.
• This should also be a relatively easy product
  transformation one that can be fully supported
  by Betty Crockers marketing power.

60

• New Product Concepts Split Bowl

• What is the market space for the Split Bowl
  offering?
• Survey respondents expressed opinion the Bowl
  Appetit and other offerings offered too little
  variety
• Subsequently, respondents were asked to
  categorize scanner data skus (I.e. Uncle Bens
  bowls) into two categories
• Single flavor offerings
• Multiple flavor offerings
• Majority of respondents viewed Stouffers skus
  designated as 2-food items as only
  multi-flavored offerings
• The following chart shows the relative market
  sizes for single-flavor and multi-flavor
  offerings
• Healthy options (Lean Cuisine and Healthy
  Choice) were not considered as part of the market
  based on survey responses

61

• New Product Concepts Split Bowl

The addressable market/ competitive space is much
larger when analysis of the competition includes
those offerings that provide 2 tastes/package.
The larger size, and increased variety in the
offering, will enable Bowl Appetit to attract a
much larger audience.
62

• New Product Concepts Split Bowl

• Key strategic decisions
• Market - Expands target to include those women
  that typically eat out or prepare a full lunch,
  or eat leftovers, i.e. those that would not
  purchase the current version of Bowl Appetit
  because the offering is not sufficiently diverse
  or filling. May also extend market to some men,
  however our research indicates the male
  population is much less willing to bring and
  prepare this type of lunch preferring to eat
  out or have a brown bag lunch.
• Competitors - Extends competition to include
  frozen foods, and to a certain extent, leftovers
  and dining out.
• Fit with firm equities, capabilities, resources
  Great fit given the cross-branding opportunities
  and the marketspace void.

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• Split Bowl Marketing Message

• The following will guide the introduction of the
  Split Bowl Line extension
• Customers message directed at women and men,
  both at home and in the office. Message focuses
  on new alternative for multi-food/variety
  lunch/snack, emphasizing those that are looking
  beyond a tasteless single food alternative to
  their meal but dont have time for long waits
• Competitors message emphasizes the ready-to-eat
  aspect and quality perception of Betty Crocker
  over its frozen rivals (Stouffers). Highlights
  the tired option that frozen meals present,
  emphasizing the relatively unchanged landscape
  within the frozen meals category over the last 10
  years or so
• Company Emphasizes the combination of General
  Mills brands in one offering (i.e. Betty Crocker
  Progresso / Nature Valley / baked goods)

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• Split Bowl Marketing Message

• The following is an outline for the marketing
  campaign of the Healthy line extension
• Customers message directed at women and men,
  both at home and in the office. Message focuses
  on variety of tastes / foods offered in such a
  convenient manner. Message switches from one
  taste to the other and goes back and forth as
  consumer is torn between the two great
  tastes/brands
• Competitors message emphasizes the ready-to-eat
  aspect and quality perception of Betty Crocker
  Progresso/Old El Paso over its frozen rivals
  (primarily Stouffers). Highlights the tired
  option that frozen meals present, emphasizing the
  relatively unchanged landscape within the frozen
  meals category over the last 10 years or so
• Company Emphasized the General Mills / Betty
  Crocker focus on quality. Potential tag line A
  perfect merger of equals

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Financial Projections Split Bowl Methodology

• Key Assumptions
• Market The market for the Split bowl brand
  extension is the current market space occupied by
  the Stouffers 2-food lines as provided in the
  Nielsen scanner data
• Market space defined based on scanner data and
  survey respondents definition of single /
  multiple flavor skus as discussed previously
• Bowl Appetit market Bowl Appetit can capture 5
  of the multi-flavor market in the first year.
• Bowl Appetit market size determined assessing the
  cyclicality of healthy options.
  January/February offer immense opportunity to
  capture large and immediate market share given
  healthy product sales in this time period (see
  graph)
• Bowl Appetit Split Bowl extension and marketing
  campaign will also allow overall market market to
  grow by 10 based on extended offerings and
  marketing campaign directed at consumers seeking
  quick meals that offer a variety of flavors
• Split Bowl option will cannibalize current Bowl
  Appetit offerings by 10. Less than Healthy line
  extension because respondents see multi-flavor as
  more heartier option seldom in share of stomach
  competition with current bowl Appetit
• Split Bowl extension priced at a premium of 2.99
  because of extended offerings

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Financial Projections Split Bowl
The following shows how the market size for the
Split Bowl line extension was determined and
first-year revenues (projections shown on next
page) were calculated
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Financial Projections Split Bowl
The following shows 3 year revenue projections
for the Split Bowl and regular Bowl Appetit
offerings.
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Financial Projections Totals
The following shows 3 year revenue projections
for the entire line of Bowl Appetit products now
available.
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Questions Answers