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PROJECT BOWL APPETIT Three Year Strategic Plan November 19, 2001

PROJECT BOWL APPETIT Three Year Strategic Plan November 19, 2001. Julian Bostic Jason Kitayama Daniel Paul John Rogan Dai Shiraishi Judd Staples. Marketing Strategy M/TH 1:15 – 3:30 Team 10. AGENDA. Background and market situation Characteristics of teen consumers

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PROJECT BOWL APPETIT Three Year Strategic Plan November 19, 2001

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  1. PROJECT BOWL APPETITThree Year Strategic PlanNovember 19, 2001 Julian Bostic Jason Kitayama Daniel Paul John Rogan Dai Shiraishi Judd Staples Marketing Strategy M/TH 1:15 – 3:30 Team 10

  2. AGENDA • Background and market situation • Characteristics of teen consumers • Product design and strategy • Competitive response • Revenue projections • Strategy implementations and next steps

  3. BOWL APPETIT HAS A NON-SPECIFIC FOCUS AND IS NOTCURRENTLY APPEALING TO ANY PARTICULAR MARKET Percent sales by income Percent sales by lifestyle 21% 22% 21% 25% 16% 29% 14% 15% 24% 13%

  4. MARKET PENETRATION PURCHASE STATISTICS SUGGEST GREATER LOYALTY FROM YOUTHFUL FOCUS Items purchased per trip Percent repeat buyers Youth focus Youth focus General focus General focus Source: Neilson panel data, 2000

  5. THERE IS A LARGE OPPORTUNITY IN DESIGNING APRODUCT STRATEGY THAT APPEALS TO TEENS’ NEEDS • Bowl Appetit is suffering from a lack of consumer loyalty • Teens represent a loyal market segment with significant buying power • Bowl Appetit is not currently positioned to successfully compete in this market • Focus groups and in-depth interviews are necessary to determine how to best target the teen market Source: Teen Research Unlimited, American Demographics

  6. AGENDA • Background and market situation • Characteristics of teen consumers • Product design and strategy • Competitive response • Revenue projections • Strategy implementations and next steps

  7. TEENS ARE INCREASINGLY INDEPENDENT IN THE KITCHEN On Average Teens Cook For Themselves 4 Times Per Week Percent of teens cooking this meal Percent of teens using appliance (%) (%) 76% of teens cook after-school snacks and the microwave is their appliance of choice

  8. DESPITE MEETING TEENS’ BASIC REQUIREMENTS,AWARENESS AND TRIAL OF BOWL APPETIT IS LOW Percent of teen awareness Percent of teen trial (%) (%)

  9. A FAST AND EFFECTIVE STRATEGY FOR INCREASING MARKET PENETRATION IS INCREASING USAGE FREQUENCY Market penetration strategies Strategies to increasing purchase frequency and quantity • Increase number of users by attracting from competitors • Broaden customer base by converting non-users to users • Increasing frequency of purchase among present users • Increasing average quantity purchased per transaction • More effectively promote present uses • Identify and promote new uses • Promote more varied uses • Promote product usage at different times of the day, different places, and on different occasions Source: Contemporary Perspectives on Strategic Market Planning

  10. AGENDA • Background and market situation • Characteristics of teen consumers • Product design and strategy • Competitive response • Revenue projections • Strategy implementations and next steps

  11. OUR NEW PRODUCT CONCEPT IS TO FOCUS ON THETEEN MARKET FOR BETWEEN-MEAL SNACKS Strategy Focus on microwavable between meal snacks Leverage GM competency in single serve shelf-stable “Enough with the kid’s stuff” Selling Proposition Teen market “The snack the cool kids eat” A snack designed specifically for teens’ needs Positioning Convenience provides independence from parents Growing up and need a more mature product Switching Logic Teen endorsements promote social acceptance

  12. THE SNAK PAX BRAND FOLLOWS OUR TARGET STRATEGYWHILE COMPLIMENTING THE GM BRAND PORTFOLIO • Develop brand specifically focused on teens • Currently few existing “pure teen” food brands in market • Minimize cannibalization of existing GM brands • Develop product line to specifically target after-school snacking • Current product offering in this category are not marketed as “after-school snacks” • Placement with current after-school snack substitutes • Separate product from existing Bowl Appetit products • Leverage current capabilities of GM • Shelf-stable products • Existing distribution network • Endorsement branding (Old El Paso) to enhance quality image of new brand “Simply, grab it off the shelf, and heat it in the microwave. SNAK PAX are ready when you are!”

  13. PRODUCT DESIGNED TO TASTE AND IMAGE WANTS OF TEENS LEVERAGING THE ENDORSEMENT BRAND OF “OLD EL PASO” REPRESENTS FAMILIAR TASTE AND QUALITY X-Treem Spiralz ‘n Cheez Rotini pasta in a spicy cheese sauce Ingredients: Dry rotini and powdered cheese Package: Standard Bowl Appetit configuration Design: Bright yellow box with crazy fonts and colors Food: Vibrant yellow color with red and green pepper flakes Preparation: add water to fill-line, stir, and microwave

  14. PRODUCT DESIGNED TO TASTE AND IMAGE WANTS OF TEENS LEVERAGING THE ENDORSEMENT BRAND OF “OLD EL PASO” REPRESENTS FAMILIAR TASTE AND QUALITY X-Treem Nachoz Tortilla chips with dipping sauce Ingredients: Salty tortilla chips, spice jalapeno cheese dipping sauce Package: Dual containers (bowl in a bowl) Design: Bright yellow box with crazy fonts and colors Food: Colorful chips with zesty cheese Preparation: Remove middle bowl (or not) and heat. Dip chips and eat.

  15. KEY ELEMENTS OF SNAK PAX MARKETING STRATEGY

  16. AGENDA • Background and market situation • Characteristics of teen consumers • Product design and strategy • Competitive response • Revenue projections • Strategy implementations and next steps

  17. OVERVIEW OF THE COMPETITIVE LANDSCAPE AND POTENTIAL REACTIONS

  18. AGENDA • Background and market situation • Characteristics of teen consumers • Product design and strategy • Competitive response • Revenue projections • Strategy implementations and next steps

  19. REVENUE PROJECTIONS - ASSUMPTIONS

  20. REVENUE PROJECTIONS

  21. AGENDA • Background and market situation • Characteristics of teen consumers • Product design and strategy • Competitive response • Revenue projections • Strategy implementations and next steps

  22. THE GOAL FOR YEAR ONE IS TO ESTABLISH A“TOP OF MIND” PRESENCE AMONG TEENAGERS Ubiquitous presence Develop a Snak Pax web site Sponsorship of outdoor teen events (X-games) Advertise on popular teen sites and TV programs Targeted advertising Year one Teen celebrity endorsements Free trial and distribution at teen events Grass roots marketing Prizes for getting friends to try CD and game giveaways Affinity branding “X-treem Team” club offering

  23. YEAR TWO WILL FOCUS ON EXPANDING THE FLAVORS AND OFFERINGS IN OUR EXISTING LINE OF SNACKS Existing customers Continue surveys and interviews to determine needs Develop new varieties to fill customer needs Establish rewards program for repeat purchasers Purchase frequency Year two Bundling to increase purchases per trip Expand distribution (C-stores, school vending machines) Untapped segments Healthier options to more specifically target female teens Maintain hip and trendy culture Brand building Expand placement in popular movies and TV shows

  24. IN YEAR THREE, EVALUATE SUCCESS IN THE TEEN SEGMENT AND CONSIDER EXPANSION INTO OTHER MARKETS Assess encroachment of competitors into snack space Competitive response Continue product innovations to defend market position Revise revenue forecasts and check against projections Financial assessment Year three Determine viability of continued investment Capitalize on strength of additional GM/Pillsbury brands New markets Expand throughout N. America using localized marketing Leverage scale of GM/Pillsbury to create barriers to entry Long term vision Advance recognition of after-school snack category

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