General Mills New Product Growth Strategy and Concepts

Presentation Transcript

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

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

Consumer: Ready Meal Trends * Key Learnings Convenience No longer adequate to maintain development Ease and speed of planning Facilitates readiness of single part suppers which is enter with the ascent in single individual families Indulgence Key driver of item advancement Attempt to reproduce the foodservice and takeaway involvement with home Health Least vital driver of prepared feast development Perceived as relinquishing taste and surface as an end-result of low fat or lessened salt Category Ready dinner item development urges shoppers to exchange up *Source: Reuters; Growth Strategies in Meal Solutions: Targeting the in-home buyer. October 2000

New Product Growth Strategy To expand after existing brand values claimed by General Mills through the making of premium quality items that convey answers for shoppers' neglected needs Drive incremental volume development for General Mills

Existing Brand Equities Brand values distinguished to expand upon: ALL brands are solid in their individual supper classifications Single-serve openings exist for ALL of them

Launch Timeline

Existing Brand Equities Brand values recognized to expand upon:

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 speedy and lighter lunch offering

Consumer Insights People love their pasta! $1.3B of pasta is expended/year* 63% of US homes have at least 3 boxes of pasta in their organizers ~ of these individuals 62% cook pasta once a week** Classic mid year dinner or side dish Essence , Seventeen , and Redbook all gave formulas to their perusers the previous summer #1 line for Bowl Appetit Sources: * Princeton Survey Research Associates, July 1999 **National Pasta Association, 1992.

Opportunities Growing single-serve classification by concentrating on the Bowl Appetit off-season Pasta plate of mixed greens deals top in summer Delivering a speedy to plan, yet lighter lunch Capitalizing on prevalence of pasta Building on set up brand value of General Mills' Suddenly Salad

Introducing… New Single Serve Suddenly Salad

Suddenly Salad: Product Flavors*-Ranch and Bacon Caesar Classic Package-White bowl to pass on light, invigorating, coolness, and cleanliness Cardboard slip on bundle will use Suddenly Salad's green bundling Positioning-Light, reviving feast for ladies in a hurry Women > 21 Source: Suddenly Salad Website

Suddenly Salad: Place Located in staple close Bowl Appetit Will be seen as a light option among Chef Boyardee and Dinty Moore choices Other channels incorporate mass, club and medication Not comfort stores since it requires refrigeration before utilization

Revenue Projections Assume dominant part of offers will be incremental because of the spring/summer regularity Assume rivalry will enter the field after introductory achievement Continued showcasing support with FSIs and occasional advancements in year 2 and 3 to look after share

Existing Brand Equities Brand values recognized to expand upon:

Soup Category: Overview $2.4B retail advertise 10B dishes of soup are expended every year Most prevalent flavors, Chicken Noodle and Tomato soup, are among the main TEN sustenance things sold in markets 40% of the U.S. populace conveys a feast or nibble from home at any rate once amid a 2 week time frame * 40% of working ladies bring a cocoa pack lunch at any rate twice per week ** Source: *Campbell's Annual Report 2001; **"Campbell's new Soup to Go advertisements are coordinated at working ladies", WSJ, November 18, 1999.

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 speedy planning soup item

Opportunities Opportunity for premium, snappy readiness soup item Lunch event gives chance to new advancement Given flow social condition, shopper's may progressively look for solace sustenance… soup!

Du Jour Chicken Noodle Soup Introducing… Progresso Du Jour

Progresso Du Jour: Product Flavors*-Chicken Noodle, Beef & Vegetable, Minestrone, Roasted Chicken Italiano, Creamy Tomato & Basil Package-further bowl with a littler boundary to impersonate a soup vessel Positioning-Adults > 21 *Source: Progresso Website Flavor challenge, Campbell's Website

Progresso Du Jour: Positioning Value Proposition "Progresso Soups are prepared to serve and abandon you feeling fulfilled and great to go." "Progresso picks the finest fixings, deliberately taking care of flavor, surface and shading, and utilize them liberally, with more greater bits of vegetables, pasta and meats." Source: www.progessosoup.com

Revenue Projections Initial cannibalization from Progresso $265,000 Assumed expanded rivalry in year 2 Assumed new flavor dispatch in year 3 Category development and proceeded with support with FSIs and occasional advancements in years 2 and 3

Summary Total income projection from repositioning and new items: Built after existing brand values possessed by General Mills through the formation of premium quality items that convey answers for purchasers' neglected needs Positioned for long haul feasible development * Revenue Projections incorporate Bowl Appetit repositioned

Back Up

Revenue Projections: Bowl Appetit

Seasonal Implications $ Volume – Aug '00 – Aug '01 Bowl Appetit's change in $ volume amongst Fall and Summer: - 30% Remainder of class' distinction: - 4% *Data does exclude Ragu Express, propelled Summer of 2001

Tested Concept Introducing single serve Suddenly Salad Pasta Salad "The new snappy light feast for individuals in a hurry" When you're eager, the simple thing to do is to get some overwhelming, greasy fast food. This abstains from managing readiness and cleaning required in making a supper, however gives so little of the nourishment expected to get you as the day progressed. Presently Betty Crocker brings you single serve Suddenly Salad Pasta Salads. These delicious servings of mixed greens come in their own bowl and are easy to plan. Essentially, pop them in the microwave for five minutes, and abandon them in the refrigerator for an additional five minutes to chill. In ten minutes, you will have a light pasta serving of mixed greens with slashed vegetables and a bundle of Paul Newman's lite Italian dressing to shower over. Betty Crocker's single serve Suddenly Salad Pasta Salads offers a great, light, and brisk dinner with no tidy up. Single serving-$1.75

Market Research Results Purchase goal: 40% - Definitely would purchase and Probably would purchase. Females < 30, 56% - Definitely would purchase and Probably would purchase. "I'm continually searching for reviving option at lunchtime!" "Incredible thought… when will it be on the rack?"

Suddenly Salad: Price-$1.75 Acceptance from tried respondents Offer exchange rebates to energize retail acknowledgment Current Suddenly Salad valued at $2.29 per bundle = 4 little servings Individual size estimated at a premium because of bowl comfort

Suddenly Salad: Place Located in basic supply close Bowl Appetit Will be seen as a light option among Chef Boyardee and Dinty Moore alternatives Other channels incorporate mass, club and medication Not accommodation stores since it requires refrigeration before utilization

Suddenly Salad: Promotion Placement in Self , Oprah , Rosie and New Woman magazines Sampling program through shopping center visits Cross-couponing with boxed Suddenly Salad FSI to create trial in April 2002 Targeted Catalina coupons off buyers' buys of yogurt and filtered water Coupons offered at Bally's exercise centers

Media Flow Awareness FSI and Catalina. Trial and selection driven with print, cross advancements and examining.

Competitors Reaction Kraft Pasta Salad is the other significant player in boxed pasta plate of mixed greens Have comprehension and innovation of rack stable single serve class with Easy Mac May move into classification after our underlying occasional take off

Revenue Projections: Suddenly Salad

Soup Category: SWOT Strengths 5% development of U.S soup utilization in 2001 b Comfort sustenance warming smell and flavors that invoke recollections of Mom's kitchen 96% U.S. family infiltration a 10 billion dishes devoured in U.S. every year * Soup offers high benefit per foot in retail Weaknesses Sodium level high Price expands most recent 5 years-potential value/esteem issue Some shoppers don't care for new formula flavors Has not kept up on pattern with comfort Seasonal Opportunities Premium prepared to eat in single-serve bundling Ethnic flavors (Cajun, Asian, and so on) New events Premium with fantastic vegetables, meat and pastas Restaurant association Threats Private mark Soup-particular eateries Single-serve dinner substitutes Global warming 4.5% soup utilization decrease in soup in 2000 ** Source: *Campbell's Annual Report 2001 ** "S&P brings down ratin