Consumer Behaviour:

The Pillsbury Cookie

Challenge
Section C Group 3
19P187 Ankit Panda
19P205 Nithin Kothapalli
19P223 Shreya Jain
19P226 Sirsha Mukherjee
19P228 Sudarshan Mall
19P238 Yashvardhan Chamoli
September 2020
1
 Company Brief History
• GMCC was the market leader in the Canadian
Market with annual sales of US$ 566 Million
• Established in the year 1954 and was the
second largest division of General Mills
• The Canadian division was split into 4 units
which are , breakfast, baked goods, meals
and snacks which was further sub divided
into 12 other categories
• Ready baked goods included cookies , breads
and sweet goods . RBG’s were chilled dough-
based products that could go straight from
the fridge to the oven
• The RBG category was dominated by
Pillsbury with an 85% market share
• Pillsbury was known for their convenience
and family appeal
• Cookies were most profitable in the RBG
category
• Represented 62 % of total category
• The Pillsbury Doughboy was a hit in the
advertising sector which had a major role in
brand advertising and messaging
• Pillsbury was known for their convenience
and family appeal
September 2020
2
 Problem Statement

How to increase the purchase frequency and/ or market penetration of refrigerated cookies?

The subpar performance (below 5-7% annual category growth) of the Pillsbury refrigerated baked
goods (RBG) category which is heavily dependent on refrigerated cookies segment (75% of
category’s profitability)

Refrigerated Cookies Segment

1% growth rate of refrigerated cookie segment over past 3 years
Household penetration fallen to 24%
This segment was missing an effective Canadian-specific marketing plan

Chub Ready-to-bake
Cookie Formats
September 2020
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 GMCC External & Internal Environment Analysis

S W O T

STRENGTHS WEAKNESSES OPPORTUNITIE THREATS

Market leader in Canadian Weak household S of cookie
Increasing usage Competitors-Private labels
packaged food market penetration in Canada dough in households with and regional brands
High retailer/ distributor Leveraged advertising and kids Decreasing brand
bargaining power product from the US Impulsive purchase recognition and relevance
Pillsbury Brand product– retail network
advertising match

September 2020
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Consumer Insights

September 2020
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 Comparison between U.S. and Canada markets

SIMILARITIES

• The consumer demographics and family structure are similar in both US as well
as Canada
• There is an increasing use of refrigerated cookie dough particularly the
households with kids
• Frequency of RBG Cookie baking was similar in US and Canada

DIFFERENCES

• The consumers in Canada like to do their baking from scratch and hence it makes
the target market a bit different compared to that of the United states.
• Quality of cookie dough was not as highly valued in US as it was in Canada
• Kids played a bigger role in driving purchases as is evident from the chart.
• RBG purchases were impulsive and were increasing with households with kids.

September 2020
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 Target Market: Canada

Purchase Drivers in
Mothers
between ages
Canada vs U.S.
of 30 - 40
Family Negatives
orientated • 7% less like the brand
• 9% less like the flavors offered
• 12% less perceive as high quality
An attractive • 10% less makes the right amount
Canada busy lifestyle

Market Positives
• 10% more kids like to eat them
Associate baking • 8% more special treat for kids
with happy
family moments • 13% more fun thing to bake with kids
• 12% more kids like to make them
Time- • 13% more fun activity with the kids
starved • 8% more my children request them

September 2020
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 Possible Approaches

To continue To create Modify

banking on a Canada product to
the U.S. specific appeal to
marketing marketing Canadian
initiatives message consumers

September 2020
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 Chosen Approach
Parameters : Modify Product :
• Modify product to appeal to Canadian consumers
• Create Canadian specific marketing message Create flavors that better appeal to Canadian consumers

Utilize specific purchase drivers  Create products & create a "home-style" RBG product line  Mimicking quality
message that appeals to Canadian consumers scratch baking
Packaging  Emphasis on home-style
Focus groups  Test the modifications

Utilize Canadian purchase drivers

Recommendations
More scratch-like products:
• Other flavors
• Home-style recipes
• Emphasize children's enjoyment
• Easier than scratch
• Extend the experience

September 2020
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Messaging
• Good as Home Style Product
• Quick Bite – Children Love It!
• Convenience – Less Messy
• More Family Time – More Fun
• Altering Consumption Pattern
• Design Ideas
• DIY for Kids
• Cookie Challenge
Variation
Communication and Budget
Packaging
• Reinvent Communication
• Premium Feel Factors
• Goodness and Value
• Intuitive Designs
• Excite and Evoke Emotions
• Addressed to Moms and Kids
• Short and Unambiguous
• Adapt US TVCs
TV Ads
Budget:
1) TVCs – $200k - $500k (Target Repurposing)
2) Product Line Changes - $500k (Assumed)
3) Focus Group Tests - $20k (Assumed)
4) Packaging design - $5k (Assumed)
Contribution per cookie Sold towards Profit - $1
Expected Break Even Period < 1yr (Based on
Past Sales and Income Statement Trend)
Target:
1) Increase Household penetration from
current 24% to 33%
2) Category Growth Rate between 5-7%
3) Increase product mix in favour of
Refrigerated Cookies for highest margins
contribution under RBG category
September 2020
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Thank you

September 2020
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