general mills new product growth strategy and concepts n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
General Mills New Product Growth Strategy and Concepts PowerPoint Presentation
Download Presentation
General Mills New Product Growth Strategy and Concepts

Loading in 2 Seconds...

play fullscreen
1 / 45
ernie

General Mills New Product Growth Strategy and Concepts - PowerPoint PPT Presentation

144 Views
Download Presentation
General Mills New Product Growth Strategy and Concepts
An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. General Mills New Product Growth Strategy and Concepts Marketing Strategy Section 2, Team 7 Tiffany Mayo Andrea Monseliu Katie Penz (Locker 198) Amber Pierce Nikki Silva David Zellen

  2. Agenda • Project Objective • Situation Analysis • Company • Competitors • Consumer • New Product Growth Strategy • Build Upon Existing Brand Equities • Bowl Appetit • Suddenly Salad Individual Servings • Progresso Du Jour

  3. Consumer: Ready Meal Trends*Key Learnings • Convenience • No longer sufficient to sustain innovation • Ease and speed of preparation • Facilitates preparation of single portion meals which is key with the rise in single person households • Indulgence • Key driver of product innovation • Attempt to recreate the foodservice and takeaway experience at home • Health • Least important driver of ready meal innovation • Perceived as sacrificing taste and texture in return for low fat or reduced salt • Category • Ready meal product innovation encourages consumers to trade-up *Source: Reuters; Growth Strategies in Meal Solutions: Targeting the in-home consumer. October 2000

  4. New Product Growth Strategy • To build upon existing brand equities owned by General Mills through the creation of premium quality products that deliver solutions to consumers’ unmet needs Drive incremental volume growth for General Mills

  5. Existing Brand Equities • Brand equities identified to build upon: • ALL brands are strong in their respective meal categories • Single-serve opportunities exist for ALL of them

  6. Launch Timeline

  7. Existing Brand Equities • Brand equities identified to build upon:

  8. Light Granola / Fruit Bar Homemade Salad Opportunity Cereal Grilled Chicken Sandwich Noodle Cups Longer Preparation Easy Mac Frozen Dinner Hormel Fast Food Lunch Category: Perceptual Map Quick Preparation Slow-Cooked Stew Heavy • Opportunity for a quick and lighter lunch offering

  9. Consumer Insights • People love their pasta! • $1.3B of pasta is consumed/year* • 63% of US homes have 3 or more boxes of pasta in their cupboards ~ of these people 62% cook pasta once a week** • Classic summertime meal or side dish • Essence, Seventeen, and Redbook all provided recipes for their readers last summer • #1 line for Bowl Appetit Sources: * Princeton Survey Research Associates, July 1999 **National Pasta Association, 1992.

  10. Opportunities • Growing single-serve category by focusing on the Bowl Appetit off-season • Pasta salad sales peak in summer • Delivering a quick to prepare, yet lighter lunch • Capitalizing on popularity of pasta • Building on established brand equity of General Mills’ Suddenly Salad

  11. Introducing…New Single Serve Suddenly Salad

  12. Suddenly Salad: Product • Flavors*- • Ranch and Bacon • Caesar • Classic • Package- • White bowl to convey light, refreshing, coolness, and cleanliness • Cardboard slip on package will leverage Suddenly Salad’s green packaging • Positioning- • Light, refreshing meal for women on the go • Women > 21 Source: Suddenly Salad Website

  13. Suddenly Salad: Place • Located in grocery near Bowl Appetit • Will be perceived as a light alternative among Chef Boyardee and Dinty Moore options • Other channels include mass, club and drug • Not convenience stores because it requires refrigeration before consumption

  14. Revenue Projections • Assume majority of sales will be incremental due to the spring/summer seasonality • Assume competition will enter the arena after initial success • Continued marketing support with FSIs and seasonal promotions in year 2 and 3 to maintain share

  15. Existing Brand Equities • Brand equities identified to build upon:

  16. Soup Category: Overview • $2.4B retail market • 10B bowls of soup are consumed annually • Most popular flavors, Chicken Noodle and Tomato soup, are among the top TEN food items sold in grocery stores • 40% of the U.S. population carries a meal or snack from home at least once during a 2 week period* • 40% of working women bring a brown bag lunch at least twice a week** Source: *Campbell’s Annual Report 2001; **“Campbell’s new Soup to Go ads are directed at working women”, WSJ, November 18, 1999.

  17. Soup Category: Perceptual Map Premium Quality/Price Campbell's Simply Home Jar Opportunity Campbell's Chunky Campbell's Select Progresso Can Campbell's Ready to Serve Classics Campbell's Condensed Campbell's Soup to Go Quick Preparation Longer Preparation Add Water Cups (Fantastic, Knorr) Noodle Cups (Maruchan, Nissin) Ramen Noodle Soup Private Label Low Quality/Price • Opportunity for premium quick preparation soup product

  18. Opportunities • Opportunity for premium, quick preparation soup product • Lunch occasion provides opportunity for new innovation • Given current social environment, consumer’s may increasingly seek comfort food…soup!

  19. Du Jour Chicken Noodle Soup Introducing…Progresso Du Jour

  20. Progresso Du Jour: Product • Flavors*- Chicken Noodle, Beef & Vegetable, Minestrone, Roasted Chicken Italiano, Creamy Tomato & Basil • Package- deeper bowl with a smaller circumference to mimic a soup crock • Positioning- Adults > 21 *Source: Progresso Website Flavor contest, Campbell’s Website

  21. Progresso Du Jour: Positioning Value Proposition • “Progresso Soups are ready to serve and leave you feeling satisfied and good to go.” • “Progresso chooses the finest ingredients, carefully attending to flavor, texture and color, and use them generously, with more bigger pieces of vegetables, pasta and meats.” Source: www.progessosoup.com

  22. Revenue Projections • Initial cannibalization from Progresso $265,000 • Assumed increased competition in year 2 • Assumed new flavor launch in year 3 • Category growth and continued support with FSIs and seasonal promotions in years 2 and 3

  23. Summary • Total revenue projection from repositioning and new products: • Built upon existing brand equities owned by General Mills through the creation of premium quality products that deliver solutions to consumers’ unmet needs • Positioned for long-term sustainable growth * Revenue Projections include Bowl Appetit repositioned

  24. Back Up

  25. Revenue Projections: Bowl Appetit

  26. Seasonal Implications $ Volume – Aug ’00 – Aug ‘01 • Bowl Appetit’s change in $ volume between Fall and Summer: -30% • Remainder of category’s difference: -4% *Data does not include Ragu Express, launched Summer of 2001

  27. Tested Concept Introducing single serve Suddenly Salad Pasta Salad “The new quick light meal for people on the go” When you’re hungry, the easy thing to do is to grab some heavy, fatty fast food. This avoids dealing with preparation and cleaning needed in making a meal, but provides so little of the nutrition needed to get you through your day. Now Betty Crocker brings you single serve Suddenly Salad Pasta Salads. These tasty salads come in their own bowl and are simple to prepare. Simply, pop them in the microwave for five minutes, and leave them in the fridge for another five minutes to cool off. In ten minutes, you will have a light pasta salad with chopped vegetables and a packet of Paul Newman’s lite Italian dressing to drizzle over. Betty Crocker’s single serve Suddenly Salad Pasta Salads offers a tasty, light, and quick meal with no clean up. Single serving- $1.75

  28. Market Research Results • Purchase intent: 40% -Definitely would buy and Probably would buy. • Females < 30, 56% - Definitely would buy and Probably would buy. • “I’m always looking for refreshing alternative at lunchtime!” • “Great idea… when will it be on the shelf?”

  29. Suddenly Salad: Price • Price- $1.75 • Acceptance from tested respondents • Offer trade discounts to encourage retail acceptance • Current Suddenly Salad priced at $2.29 per package = 4 small servings • Individual size priced at a premium due to bowl convenience

  30. Suddenly Salad: Place • Located in grocery near Bowl Appetit • Will be perceived as a light alternative among Chef Boyardee and Dinty Moore options • Other channels include mass, club and drug • Not convenience stores because it requires refrigeration before consumption

  31. Suddenly Salad: Promotion • Placement in Self, Oprah, Rosie and New Woman magazines • Sampling program through mall tours • Cross-couponing with boxed Suddenly Salad • FSI to generate trial in April 2002 • Targeted Catalina coupons off consumers’ purchases of yogurt and bottled water • Coupons offered at Bally’s gyms

  32. Media Flow • Awareness FSI and Catalina. Trial and adoption driven with print, cross promotions and sampling.

  33. Competitors Reaction • Kraft Pasta Salad is the other major player in boxed pasta salad • Have understanding and technology of shelf-stable single serve category with Easy Mac • May move into category after our initial seasonal roll-out

  34. Revenue Projections: Suddenly Salad

  35. Soup Category: SWOT • Strengths • 5% growth of U.S soup consumption in 2001b • Comfort food- warming aroma and flavors that conjure up memories of Mom’s kitchen • 96% U.S. household penetrationa • 10 billion bowls consumed in U.S. per year* • Soup offers high profit per foot in retail • Weaknesses • Sodium level high • Price increases last 5 years- potential price/value issue • Some consumers do not like new recipe flavors • Has not kept up on trend with convenience • Seasonal Opportunities • Premium ready to eat in single-serve packaging • Ethnic flavors (Cajun, Asian, etc) • New occasions • Premium with high quality vegetables, meat and pastas • Restaurant partnership Threats • Private label • Soup-specific restaurants • Single-serve meal substitutes • Global warming • 4.5% soup consumption decline in soup in 2000** Source: *Campbell’s Annual Report 2001 ** “S&P lowers ratings for Campbell’s on Financials, Debt”, WSJ, November 17, 2000

  36. Tested Concept Introducing Progresso Hearty Soup Bowls As a busy adult, you are seeking a quality, satisfying meal- something that will nourish you from the inside out. A hearty soup sounds good, but you don’t have the time to go to a restaurant or to go through the fuss of preparing your meal conventionally on the stovetop. You want a nutritious meal, but you also need it to be quick and convenient. A hearty soup is a soothing, comforting meal that helps ease the tensions of the day. Our new Progresso Hearty Soup Bowls are easy to prepare and can be taken anywhere. Just heat and eat with the spoon we’ve included for you. From Progresso- the soup brand that is know for hearty premium soups. Suggested flavors include: Roasted chicken and dumpling Hearty tomato chili Beef stew with potato, carrot and mushrooms Single serving- $1.79

  37. Market Research Results • Purchase intent: Top 2 Boxes - 60% • Universal appeal to all segments of respondents • More classic flavors were suggested by consumers tested

  38. Progresso Du Jour: A good fit with General Mills • Leveraging Progresso brand equity purchased from Pillsbury • Leveraging bowl technology used for Bowl Appetit • Synergy with Progresso retail distribution and GM sales force • Expertise in category- 30% share of soup • Building on corporate objective of product innovation

  39. Progresso Du Jour: Price • Price- $1.79 • Current Progresso canned soup priced at $2.39 for a can = 2.5 servings • Compared to competition • Campbell’s Soup to Go priced at $1.34*, our premium identifies larger serving size and premium product *Source: Store walk analysis and A.C. Nielsen data

  40. Progresso Du Jour: Place • Located in grocery soup section within the Progresso brand block • Other channels include convenience, mass and club near on-the-go lunch offerings

  41. Progresso Du Jour: Promotion • Cross-promotion with regular soup (coupon under the wrapper of soup cans) • Trial generating FSI • Print: People, Self, Family Circle, Better Home and Garden (general appeal with adults > 21) • TV: Prime time, soaps • On Pack Promotion with Saltine crackers

  42. Progresso Du Jour: Media Flow • Awareness driven by T.V. spending and FSI. Trial and adoption driven with print, cross promotions and FSI.

  43. Progresso Du Jour: Competitive Reaction • Current soup market share- • Progresso approximately 30% • Campbell’s approximately 70% • Campbell’s has been more innovative and on trend than Progresso with new ready to eat products • Campbell’s may react by copying with their own single serve bowl product • However, Progresso, currently positioned as premium, ready-to-eat soup, likely to be an easier transition into single serve than Campbell’s know by consumer for condensed soups • Additionally, General Mills already possesses bowl supply technology and scale with existing Bowl Appetit

  44. Revenue Projections: Progresso Du Jour

  45. Revenue Projections • Initial jump in revenues due to Potato Line’s gain in ACV • Category growth and continued support with FSIs will boost market share in years 2 and 3