MKTG 2030 Chapter Notes -Pillsbury Doughboy, Cookie Dough, Multinational Corporation

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18 Mar 2014
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Jessica Gahtan Pillsbury Case Analysis Week 4
! 1!
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
Quantitativequestionnaires 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
Canadian- mothers b/w 30-40 years old; an attractive busy lifestyle; time-starved; associate
baking with emotional warmth and happy family moments; family oriented
Purchase drivers in Canada v. U.s. exhibit 7: top 4 drivers the same-> taste, convenience
DIFFERENCES
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