Marketing 468: Marketing Strategy Term Project Marketing 468 Marketing Strategy Term Project Section...

Marketing 468: Marketing Strategy Term Project

Marketing 468

Marketing Strategy Term Project

Section 1 Team 3Dhananjay Agarwal

Nancy DennisJohn Pang

Peter WoodsonHiro Yamabe

November 19, 2001


Project OverviewPhase 1

Market Analysis

Strategy&

ConceptDevelopment

ConceptTesting

(Sales Forecast)

Phase 2 Phase 3

-Market Survey- Created web survey- 40 samples- Obtained customer needs and perceptions

-Sampled Products-Reviewed Nielsen Data-Reviewed Current Positioning

-In depth interview- 2 target segments- 10 samples- Refined our strategy and product concepts

-Strategy Meetings w/ C&P

-Market Survey- Posted on BBS- 16 samples- Usage- Price

-Sampled HeaterMeals


Most Important Needs0. 0 1. 0 2. 0 3. 0 4. 0 5. 0 6. 0 7. 0

Taste

Overall Quality

Convenience

Price

Nutritional Content

Portion Size

Fat Level

Thouroughness of cooking

Transportability

Heating Time

Sodium Level

N=40


Current Market Positioning

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

3.00 3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00

Convenience

Tas

te

Betty Crocker Bowl Appetit

Budget Gourmet

Campbells Soup-To-Go

Chef Boyardee

Healthy Choice

Kraft Mac & Cheese

Lean Cuisine

Maruchan

Michelina's

Nissin Cup-O-Noodles

Ragu

Stouffers

Uncle Ben's Rice Bowl

Weight Watchers

Bowl Appetit

Size = Price Perception

Can we make it tastier than

best of class?

Can we do both?

Can we make it more

convenient than best of

class?


Our Strategic Positioning

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

3.00 3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00

Convenience

Tas

te

Betty Crocker Bowl Appetit

Budget Gourmet

Campbells Soup-To-Go

Chef Boyardee

Healthy Choice

Kraft Mac & Cheese

Lean Cuisine

Maruchan

Michelina's

Nissin Cup-O-Noodles

Ragu

Stouffers

Uncle Ben's Rice Bowl

Weight Watchers

Bowl Appetit

EST.

New Product

3

4

1

Size = Price Perception

2

Convenience incr. with water1Convenience incr. with self heat2Taste perception incr. with food enhancement3Taste perception incr. with marketing4


Strategy

Strategic fit to GM• Prego Bake Sauce -- success of hyper-convenience, great taste & heat

• Progresso Soups – great tasting, hot, shelf-stable food

• Green Giant – great tasting, shelf-stable vegetables

Hyper-convenient great tasting, hot meals


Two Product Concepts

Self heat technology GM food expertise

Personal Chef

Heating Time

Fireside FeastTarget Customer

Size

Healthy

Price

Professional

$4

7 min

8-10 oz

Calories - med

Nutrition – med to high

$4

15 min

10-12 oz

Calories - high

Nutrition – med to low

Outdoor(Hunters/Fishermen)

Brand Family General MillsBetty Crocker

Fresh WaterFood Mix

Salt WaterMagnesium Chip

147°F 147°F

One Step to Hot Food in

Under 7 Minutes.

Top View Cutaway View

Personal Chef

Protein & CarbVeggies

Salt WaterMagnesium Chip

147°F 147°F

One Step to Hot Food in

Under 15 Minutes.

Top View Cutaway View

Fireside Feast


Tactics for Both ProductsIssue Action PlanPromotion

Need to show hyper-convenience

Need to show good tasting meal

TV ads, Magazines

BrandingIn store trial, TV ads

Process description on packagingNeed to show safety

In store trialsCo-branding with Green Giant & Evian

water

Need to build awareness Give away free at high traffic office areasPlace in end aisle

Distribution

Use existing channels: grocery, mass merch and c-storesEasily accessible

Take home out of equationDistribute via internet orders for delivery

to office desk. Sale of multipacks.


Source of Sales

Bowl Appetit• Use at home and work

Personal Chef• Use at work

Fireside Feast• Use outdoors

Hot Dogs

Bowl Appetit

Other Shelf Stable

FrozenSandwiches

Other Shelf Stable

Restaurants

Current Market

1) Low Cannibalization of Bowl Appetit 2) Switching Tactics


Personal Chef Sales Forecast

Certainties Centered on Means

0.00

100.00

200.00

300.00

400.00

Year 1

Year 2

Year 3

90%

50%

25%

10%

Trend Chart

Year 1 Year 2 Year 3PC Revenues (MM) $69 $134 $196Price $4.00 $3.90 $3.80Units (MM) 17 34 52Unit Growth Rate 100% 50%


Fireside Feast Sales Forecast

Certainties Centered on Means

0.00

150.00

300.00

450.00

600.00

Year 1

Year 2

Year 3

90%

50%

25%

10%

Trend Chart

Year 1 Year 2 Year 3FF Revenues (MM) $62 $120 $176Price $4.00 $3.90 $3.80Units (MM) 15 31 46Unit Growth Rate 100% 50%


Action Plan for Sustainability

• Enhanced food product:– New Flavors– Heatability

• Innovation in self-heating technology– Design patents

• Continued brand building• Market to new audiences

– construction, landscaping, agriculture, trucking, airlines

Continuous differentiation necessary to counter market forces.


Quotes from Real People“Don’t you think that’s the neatest thing – I could see using that a lot.”

(overheard speaking to other in-depth interviewee secretary after they both had completed their individual interviews)

“I would definitely try it!”

“This would be an attractive product, if the taste were good.”

“The biggest merit is that I would not have to buy a lunch! Restaurants and convenience stores are always crowded at lunch time.”

“Good because I don’t need to get up at work.”

“It would be great on the road.”

“I have to go to the kiosk to use the microwave at work, so I end up not using it (the microwave) that much.”

“I would buy it for camping to try it out, and if it’s good, then I would buy it a few times a month and keep bringing it for camping.”

“Right. I can just throw it in my pack quickly for a hot meal while fishing.”


Summary

• Create hyper-convenient product that leverages GM’s expertise with quality foods

• Introduce Personal Chef to working professional market

• Introduce Fireside Feast to outdoor market

• Grow total revenues by 50% per year.($420MM)


Questions


Surveys• 1st Web Survey

– Purpose: Better understand market needs and perceptions.– Process: Emailed message with URL to friends and family.

• Clearly not a fully representative sample, but this is a class exercise!– See http://survey.fuqua.duke.edu/cgi-bin/ssvws?surveysaid/course/marketng_361/team02/survey.htm

– See Appendix Q for survey results.

• In-Depth Interviews– Purpose: Better understand specifics of concept design and positioning.– Process: Sit down interviews with Fuqua secretaries and professional and hunting/fishing

friends.– See Appendix W for sample interview.

• 2nd Web Survey– Purpose: Get pricing and usage data for target market– Process: Posted messages on hunting/fishing bulletin boards, and emailed professionals.– See posting at http://www.huntingbbs.com/forum/topic.asp?TOPIC_ID=49015&FORUM_ID=18&CAT_ID=2&Topic_Title=Academic+Project&Forum_Title=Off+Season

– See survey at http://www.duke.edu/~psw2/personalchef/ or http://www.duke.edu/~psw2/soloheat/

– See Appendix Z for survey results.


Naming: Why these names?

• Personal Chef– Taste

– Quality

– Convenient

– Prepared for you

• Fireside Feast– Hot

– Hearty

– Convenience

– Taste


Revenue Forecast

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

Year 1 Year 2 Year 3

FF Revenues (MM)

PC Revenues (MM)

BA Revenues (MM)


RTE Meal Competitive Landscape

Substitutes:Short term: HighLong term: High

Barriers to Entry:Short Term: HighLong Term: Low

Buyer Power:Short Term: Low Long Term: High

Industry Rivalry: Short Term: LowLong Term: High

Supplier Power:Short Term: Big Long Term: Low


Competitor Reaction

Substitutes- Many forms of lunch or snacks are substitutes for Personal Chef, however our survey and interviews indicates that for Hunters/ Fishermen substitutes are ‘cold’ meals (e.g.., sandwiches), pre-packaged snack products (e.g.., granola bars), or foods that require a stove or fire to cook (e.g.., soups and hotdogs).

Barriers to Entry-Patents-Alternative technology to heat meals needs to be developed and manufactured-Distribution networks-Quality of food

Buyers- Depth interviews indicate that the initial thought of self-cooking may be thought to be unsafe, however when the consumer is assured of products safety, they believe the product would be extremely useful.

Rivals- when the Fireside Feast and Personal Chef hit the market, we anticipate that other competitors will enter the market – see next slide

SuppliersUnless General Mills chooses to purchase and manufacture the heating technology – there is the possibility of being ‘held-up’ by the supplier. In the long run, General Mills will need to vertically integrate to acquire the manufacturing of the technology.

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