MKT 505: ADVANCED AND APPLIED BUSINESS RESEARCH

Name: Shahid Iqbal Registration #: BD-37/2011 Section: MBA (Evening) Topic: WAC (Pillsbury Cookie Challenge) Submitted to: Dr. Huma Amir Date: 04-03-2013 EXECUTIVE SUMMARY This case deals with the research analysis of the market conducted by the company General Mills Canada Corporation to determine the key variables of the target customers so that they can develop a strategy to improve the performance (sales) of the Pillsbury RBG (Refrigerated Baked Goods) category. In this research the company was looking for the consumer preferences regarding use, taste and purchase of the RBG cookies. Furthermore the desired attributes of the product and brand image (as perceived by the consumer) were also looked at in the research. The research was qualitative and consists of two phases (1) Group Surveys (Screeners) (2) Ethnographic Studies. What we analyze from the research and the case is that the company was focusing too much on the product and wasnt taking the end consumers into account. Moreover, the company's target market wasnt right, as they were only targeting the women and had forgotten the most important need initiators i.e. the Kids. The company should redesign their marketing programs (ATL and BTL) and incorporate the customers need in it. New products for the Canadian Market should be developed and the use of advertising campaigns from the USA should be used only when it incorporates all the needs and desires of the end customers.

INTRODUCTION ABOUT THE CASE STUDY General Mills Canada Corp (Parent: General Mills Inc; category: International segment) established in 1954 and is the leader in packaged food markets. The company has 4 business units which are baked goods, breakfast, snacks and meal. Furthermore each unit is further divided into 12 segments. This case is about the research study conducted by Ivan Guillen (Marketing Manager RBG products) to understand what steps the company must take to cope with the flatter volumes of RBG Dough Cookies and what should the company do to grow the business profitably. STATEMENT OF THE PROBLEM Management Problem: To devise such a marketing strategy focusing the consumer behaviour, so as to boost the company sales and increase the household penetration. Short Term Management Goals: To increase the sales of the RBG Cookies. Long Term Management Goals: To increase the household penetration by customizing product offerings around the customer needs which will help the company to achieve sustainable long term growth. Marketing Research Problem: Following are some of the key points the company wants to check through the research process.

To check the similarities or differences between the USA and Canadian markets by:
i. ii.

Analyzing the usage and attitudes of the customer regarding the RBG Cookies. Understanding the brand and product perceptions in the mind of customers.
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To understand whether the Pillsbury Baking Experience resonated with the customers or not. CAUSES OF THE PROBLEM

The company did this research because they wanted to know why the company (even leading the foods market) was facing problems of flatter volume growths and low household penetration. Ivan being the Marketing Manager failed to analyze this issue on his own and therefore opted to go for research to get the insights of what customers are looking for. In the case, we can see that the companys RBG segment was highly dependent upon the performance of the RBG Cookies (Pillsbury Refrigerated Cookies) because this constitutes of 62% of the categorys sales volume (in units). Even with the market leadership in this category the companys sales growth was 1% per year with a household penetration fallen to 24% in recent past years. GMCC (General Mills Canada Corp) even with autonomous operations for product development, brand strategies and consumer spending, leveraged new products and advertising campaigns from the USA markets, which is what, led the company to problems. As the research revealed later in the case, that there were some significant differences between the USA and Canadian customers which the company never took into consideration before designing a marketing program or product offering. The Companys RBG Cookies target market were women in their mid 30s and the values the company offering is taste and ease. I looked at the kisses advertisement on the internet (http://www.youtube.com/watch?v=b-2XRraaDXo) and I can only see the Pillsbury Doughboy throwing kisses away and the narrator in the background narrating the taste of the cookie. It was totally a product focused ad and it lacked the customer/personal touch completely. As seen in the
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research that the company is missing the most important target markets the kids in their marketing ads and so as the family as a whole. Furthermore, baking should be represented as special and memorable experience and it must be delivered accordingly. MARKETING RESEARCH PROCESS The marketing research was conducted in two phases (1) Group Surveys (2) Ethnographical Research. (1) Group Surveys (Usage and Attitude Study): This was conducted by the research company MarketTools with the Customer Insights Department of GMCC. The main objective of this research is to understand the usage behaviors and attitudes of the consumer (regarding the product) in order to find the similarities and differences between the USA and Canadian customers. The research company used the Screeners method to select the participants through a set of questions either individually or over the phone. It was done to divide the customer into three categories: (a) Users purchased RBG cookies during the past 12 months (b) Lapsed Users had purchased RBG cookies 12 months before (c) Non-users never purchased RBG cookies. The survey was quantitative in nature. Following were some key findings from the research study.

Exhibit # 05

Findings Scratch Baking is more common in

Interpretations Most of the people in Canada like baking from the very start (scratch) either because they love baking or the other alternatives aren't good enough.

Implications The company must look into their product proposition and convert the convenience-only in baking to a memorable baking experience.

Canada and Canada as US Cookie compared to the Method Usage US (56% in Canada vs. 22% in US)

Exhibit # 07

Findings Canada USA Diff

Interpretations

Implications The advertising strategy

Likeness of the brand is "Like the 45% brand" compared to the US 52% -7% lower in Canada as

wasn't targeting their specific needs which need to be catered by the company. The company is leveraging

"You like the a lot of products from US flavors that are offered" company. 31% 40% -9% Flavor likeness is low which is not helping the

Again the product leveraging from US is done without understanding the Products marketed in "It's similar to Canada weren't up to the homemade 31% cookie and homemade dough" experience). understand the taste preference of the consumers. Brand awareness is low. Consumer satisfaction and Low connectivity of "For my own 30% indulgence" consumers into these and incorporate those in the ATL and BTL marketing programs. The brand messaging The RBG cookies aren't "Is a highconsidered as the quality quality cookie dough" baked cookies. nourishment aspects of the cookies as well. 29% 41% -12% substitute for scratch include health and advertising should also conveyed through 39% -9% brand with the The company must look delight factor is missing. thorough analysis to 36% -5% mark (in terms of flavor company must do a the Canadian Market. The taste/usage requirements of

People in Canada are more into scratch baking "Is like and the RBG cookies as homemade 28% cookie GMCC wasn't close dough" enough to their taste preferences. Canadian consumers. 35% -7% currently marketed by taste preferences of thorough analysis of the The company needs to do a

The company should look "Makes the right amount of cookies" 23% 33% -10% The no of cookies in a pack for the consumers arent satisfactory at the family demographics and the meal size for the RBG cookies the families are using.

Since quality, quantity is "Helps you of prime concerns of the create a 19% happy/warm product wasnt able to home" satisfy the customers. dynamics are required. 24% -5% family that is why the cookies and family the taste, preferences of the Consumer Research about

Findings Non Exhibit # 08 Lapsed Users Users s Both users and lapsed Hence convenience "Is so easy, you can make them 92% in a spur of the moment" "Is an easy way to make cookies without a mess" "Is good when I am in a hurry" "Is easy to 83% clean up" "Can be kept in hand for when needed" 80% 74% 48% 82% 45% 86% 73% 36% 89% 82% 46% Advertising Users and lapsed users shouldn't be are convinced but the product focused it majority of non users must highlight weren't. The reason what key benefits might be the the product unawareness of the proposes for the product utility. customers. 86% 58% cookies. Most non-users household are also convinced with penetration. this attribute as well. users are convinced with is not the only the quickness of the criteria to increase User Interpretations Implications

Users, Lapsed users and the non users weren't convinced. Specialty in "For making the sense that the quality something special" weren't up to the level the product should be called as special. No one is using the mentioned recipes on the package. The reason "There are might be the writings recipes on 16% package that I incomplete or the lack of use" people faith on the recipes printed on packages. People are more "I use the dough in my own recipes" 10% 4% 19% comfortable with their own recipes of dough and aren't using the Pillsbury dough in their recipes. 17% 14% were inappropriate, 48% 31% 30% and taste preferences

The company must undergo thorough analysis and identify the key attributes the product must have (to make it special).

Multiple usages of the product should also be communicated via advertising as well.

Quality is the key concern here as well.

Other Findings

Interpretations

Implications
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Purchases of cookies are Understanding that core emotion and Cookies purchases are impulsive Increase in purchase of RBG cookies especially among household with KIDS. Kids are the most important need drivers and purchase motivators. led by emotions and feelings behind the purchase of the feelings and were not cookies. planned. The company has to redesign their marketing campaign with a family touch into it. It shouldnt be product focused and must convey the benefits it offers to the entire family as a whole.

(2) Ethnographical and Discovery Workshop Research: Even after gaining information from the surveys about the usage and attitude patterns of the consumers/customers in Canada, Pasato (Manager Customer Insights RBG section - GMCC) suggested to do a qualitative survey to get a better understanding of the beliefs and feelings of customers regarding the Pillsbury RBG Cookies. The usage and attitude tests helped in understanding differences between the US and Canada markets, but this test will the company to check the brand experience Pillsbury Baking Experience resonated with the customers. The research study was conducted with TerraNova Strategies Inc. and two methods were used (a) InHome research (b) Discovery workshops. The In-Home immersions were aimed to understand the consumer preferences, actions and motivations related to the particular product. This study is also called as Ethnographical Research. In the research the mothers in houses were asked to purchase the Pillsbury cookie ahead of time and bake it during the visit. The main theme of this activity is to understand the
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real life view of the relationship of consumer and brand by looking at the family, kitchen type and the rituals associated with the product. The Discovery Workshop is similar to the Ethnographical research; the only difference being it is conducted outside the houses and was collaborative in nature. The research was designed to give a natural comfortable environment to the customers so that they can share their thoughts, experiences and issues about the product. Several techniques of customer experience mapping and role-playing is used in order to understand the customers relationship and behaviour towards the Pillsbury Brand. Following are some key findings from the research study. Findings Moms are looking for solutions that are happiness are the most practical, affordable, important concerns for easy and pleasing to the moms. the kids. The baking experience is Families emotional spreads smile on faces attachment with and fills happiness in the cookies. house. resonated with the Pillsbury brand as well. The unique baking experience has to be communicated clearly through the ads. right products and the value must be benefits to the consumers by offering the Interpretations Practicality and kids Implications The company must highlight all these

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The current ads and packaging of RBG Brand Users and Lapsed Users (all devoted moms) have different concerns about the products. The lapsed users were less confident over the quality and the nourishment attributes of the product. Cookies weren't communicating the nourishment factors the product was offering. Moms are very keen about the quality and nourishing attributes when it comes for the kids. This has to be added to the USP's of the product. Hypothesis from the Research: Following are some hypothesis; I developed from the observations of the research. Relationship Attributes with Consumer Preferences This has always been the USP of the product and the Convenience Quality and The Company wasnt communicating these factors, that Nourishment Values Customers will always look for ways to add differentiation to the conventional baking recipes. If the Multi-usability of the Product The higher the product is designed in a way that it can be used in a no. better. of different recipes then automatically the use of product Flavor Offerings will increase and it will drive the sales higher. Well flavor is something very unique to every consumer so understanding of the Canadian Consumers taste
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Implications

More is better company should adhere to it. More is better the target customers "MOMS" were looking for.

preferences (in the macro prospect) is of key importance for the company

RECOMMENDED SOLUTIONS After looking at the researches and creating a hypothesis, I came up with the following suggestions for the Pillsbury RBG Cookies.
1. GMCC should design its own marketing campaigns and products and avoid leveraging

them from the USA market. This can be done only in cases when the product fits entirely as per the preferences of consumers (in Canada).
2. The company should change its product focused approach and adopt a consumer

centric approach in all its marketing campaigns and product offerings.

because they are the main drivers for the purchase of RBG cookies. The element of entertainment and interest should be induced in ads for the kids. This will definitely increase the impulsiveness in the Moms purchases which are based on emotional attachment with the pleasure of kids. In short the ads must exhibit the warm baking experience for the entire family.
4. Convenience isnt the only attribute in the product the consumers were looking at. The

quality, nourishment factors, ease in use and multi-usability are also important concerns for the consumers. The company must communicate all of them through ATL and BTL effectively.
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5. Rigorous research about the consumer style of baking and taste preferences are to be

carried out before any offering.

options for the consumers. This will definitely enhance the overall baking experience for the customers.
7. Brand communication and awareness are to be carried out effectively even if the

company needs to change the 4 Ps of marketing or the packaging of the product.

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REFRENCES 1. Malhotra, N. K., & Dash, S. (2010). Marketing Research, An Applied Orientation. (6 ed.). Pearson Prentice Hall. 2. Kotler, P., Keller, K. L., Koshy, A., & Jha, M. (2009). Marketing Management, A South Asian Perspective (13 ed.). Delhi, India: Pearson Prentice Hall.

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