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MKTG 2030 (84)

Pillsbury Case

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MKTG 2030
Linda Reeser

Jessica Gahtan Pillsbury Case Analysis Week 4 Brief History -­‐ Pillsbury is a brand under GMCC (a leader in Canadian packaged foods) -­‐ It dominates RBG category- 85% market share -­‐ It manufactures refrigerated baked goods -­‐ Cookies are most profitable – 62% RGB unit volume -­‐ RBG Two Forms -­‐ Cookies- Chub and Ready to bake -­‐ 2.99-4.99 and 1.99-2.99 ‘sale’ Problem -­‐ Cookie performance struggling -­‐ 1% growth rate in past 2 years -­‐ 24% household penetration -­‐ Missing effective Canadian -specific market plan -­‐ Not reaching goal of 5-7% annual category growth SWOT Strengths: -­‐ Pillsbury Dough Boy -­‐ Dominate leader in packaged foods in Canada Weaknesses -­‐ ‘Kisses’ campaign -­‐ Close substitute products, including scratch baking -­‐ Weak household penetration - 24% -­‐ Leveraging U.S. marketing initiatives Opportunities -­‐ New market research on the Canadian consumer -­‐ New Canadian products -­‐ New marketing message Threats -­‐ Well established competitors - large multinational corporation -­‐ Perception of Canadian consumer Previous ‘kisses’ commercial -­‐ Did not provide the cookie segment with the (hoped for) volume boost Consumer Insights Two types of research conducted Quantitative – questionnaires web surveys- confirming clarifying=> generalizations Qualitative- focus groups workshops- in depth understanding- uncovering, exploring, understanding=> specifics Similarities- consumer demographics family structure similar U.S. Top four purchase drivers are the same - 79% easy and quick Perceived convenience Differences Scratch baking dominated method => 22% U.S. 56% Canada -­‐ Quality of cookie dough not valued as highly in Canada -­‐ Kid play a bigger role driving purchases -­‐ RBG purchases => impulse => increasing with households with kids Target market Canadi
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