Bowl Appetit Project 111901

1
Bowl Appetit Strategy Concept Development

• Jason Carlock
• Dawn Eagle
• Heather McGlone
• Dave Nagel
• Matt Shaulis
• Kevin Stephen

2
Agenda

• Overview
• Current Situation
• Recommendations Sumptuous Sides
• Recommendations Bowl Appetit for Kids
• Next Steps and Summary

3
Goal
June 2000
2003
2004
2002
Bowl Appetit Launched
Generate the maximum level of sustainable growth
in single-serve, shelf-stable food product
revenues for the next three years
4
Recommendation

• Sumptuous Sides
• Specially prepared microwaveable rice, potato,
  and vegetable side dish combinations that
  compliment any entrée.
• Projected incremental revenue 86.17 million
• Bowl Appetit for Kids
• Specially prepared microwaveable pasta bowls with
  flavors and shapes of characters your children
  love.
• Projected incremental revenue 37.93 million

5
Current Situation

• Consumer
• Food Industry
• Competition
• Bowl Appetit
• Product Performance
• Consumer Research

6
Consumer Trends
7
71 of adults believe they never have enough
time in the day to do the things they need to do
Consumer Key Learnings
Source Food Marketing Institute Trends survey,
2001 Roper reports, 12/00
8
Consumer Key Learnings

• Use of meal shortcuts and speed scratch cooking
  is rising
• Speed-scratch cooking trend consumers like to
  cook, but dont want to do extensive prep work or
  lacked cooking skills to do so
• 75 consumers prepare home-cooked meals 3
  times/week
• Less than 50 of those make meals from scratch
• Less than 1/3 of those under the age of 40 are
  scratch cooks
• Nearly ½ weekday dinners are prepared in less
  than ½ hour
• Impact of pre-prepared foods
• Fresh-cut, cleaned and packaged salads and ready
  to cook veggies are the most frequently used meal
  solution purchased in the supermarket.
• Fresh cut, marinated or pre-seasoned ready to
  cook poultry and meat are among the top 10
  supermarket products shoppers purchase for meal
  solutions

Source Food Marketing Institute Trends Survey
2001, NPD Group survey
9
Consumers are cooking less at home because they
are not confident
Consumer Key Learnings
10
Consumer Key Learning

• More than 40 of consumers do not know at 4 PM
  what they will eat that night
• 60 of late afternoon planners do not know what
  they will buy when they go to the grocery store
  that evening
• Consumers do not have top of mind sources for
  meal solutions
• The Home Meal Replacement Opportunity A
  Marketing Perspective, Working paper 98-01, Ron
  Larson, University of Minnesota, January 1998.(68
  p)

11
Consumer Key Learnings

• Adults believe they never have enough time in
  the day to do the things they need especially
  prepare a healthy meal
• Consumers like to cook, but dont want to do
  extensive prep work
• Consumers are cooking less at home because they
  are not confident
• Consumers are often unsure of what they will have
  for dinner

12
Food Industry Trends
13
Macro Trends

• Rise of dual income single-parent homes drive
  companies to address lack of free time
• Movement toward improved products with higher
  margins

Source Standard Poors Industry Surveys
Household Nondurables
14
Supermarket Trends

• Retailers continue to offer more ready-to-eat
  meals and preparation time/step solutions
• Slight decline in sales from 1999 to 2000
• Men, single shoppers, one-person households, and
  those living in the West are most likely to use
  supermarket for prepared foods

Food Marketing Institute, Meal Solutions
15
Supermarket Trends

• Food Marketing Institute Trends survey. At least
  once a month
• 62 of respondents bought pre-cut, cleaned and
  ready-to-cook vegetables
• 48 bought pre-cut, cleaned and bagged salads
• 39 bought frozen side dishes
• 37 bought main dishes
• 32 bought pre-cooked meat and other main dishes

The Partnering Group, Beyond Foodservice How
Consumers View Meals
16
Food Industry Key Learnings

• Supermarkets recognizing dual income demographic
  shifts and benefit from higher margins
• Supermarkets continue to provide more ready to
  eat meals
• Supermarket consumers are responding to these
  offerings

The Partnering Group, Beyond Foodservice How
Consumers View Meals
17
Competitor Data Analysis
18
Category Analysis

• Category is defined as Convenient Meals
• Category is divided into Frozen Meals and Shelf
  Stable
• Frozen meals are a 2 billion market
• Shelf Stable meals are a 400 million market
• Category is growing by
• Bowl meals sales up 49 to 289.6M (as of
  3/17/01, IRI)
• Frozen dinner/entrée sales up 9
• Bowls are 6 of overall frozen dinner/entrée
  category
• Dry dinner mix category up 12.4 to 470M
  (4/23/00)
• Dry side-dish category 428M (as of 10/99)

19
Traditional Competitive Set Sales Data

• Bowl Appetit is
• ranked 7th in sales for category and 4th for
  shelf stable
• priced high for shelf stable but lower than
  frozen
• heavily sold on deal (48)

20
Main Competitors

• Kraft Easy Mac
• Uncle Bens Rice Noodle Bowls
• Healthy Choice
• Chef Boyardee
• Stouffers

21
Kraft Easy Mac

• Major provider of children quick meals
• Sales volume 18,528 units
• Penetration 7.4 of households
• Strengths
• Middle income, new and maturing families
• Average family size of 3 5 members
• Caucasian, blue collar workers

22
Uncle Bens Rice Noodle Bowls

• Major bowl competitor, of the frozen variety
• Sales volume 60,161 units
• Penetration 9 of households
• Strengths
• Serving the affluent of all races
• Selling mainly to young singles and established
  families

23
Healthy Choice

• Frozen, complete meals
• Sales volume 61,704 units
• Penetration 8 of households
• Strengths
• Selling to people Living Comfortably and
  affluent
• Serving middle aged childless families
• Mostly Caucasians

24
Chef Boyardee

• Small hot meal provider
• Sales volume 58,558 units
• Penetration 5 of households
• Strengths
• Serving poor to Living comfortably, 3 member
  families
• Selling well with all races BUT Caucasians

25
Stouffers

• Divided into entrees and other offerings, each
  with its own demographic strengths
• Total sales volume 560,954 units
• Total penetration 22 of households
• Entrée strengths
• Low income, childless families
• Selling well with all races BUT Caucasian
• Other offerings strengths
• Affluent, childless families
• Serving mainly Caucasians

26
Market potential is large and growing

• Bowl meals sales up 49 to 289.6M (as of
  3/17/01, IRI)
• Frozen dinner/entrée sales up 9
• Bowls are 6 of overall frozen dinner/entrée
  category
• Dry dinner mix category up 12.4 to 470M
  (4/23/00)
• Dry side-dish category 428M (as of 10/99)

Source Advertising Age, 12/6/99 Brandweek,
6/12/00
27
Competitive Analysis Key Learnings

• Overdeveloped
• New Families
• Family size of 3-4
• Families with kids lt6
• Affluent
• Professional, White Collar

• Underdeveloped
• Families with kids 6-12
• Age 55
• Family size of 1 or 2
• Young singles
• Childless Young Couples
• Empty Nesters
• Hispanic, African-American, Other Non-Caucasian
• Income lt 20,000

Overdeveloped is defined as indexing at 120
Underdeveloped is indexing at lt80.
28
Bowl Appetit Product Performance
29
Current product line includes 10 flavors

• Cheesy Broccoli
• Sour Cream Chives
• Butter Herb

Mashed Potatoes
Bowl Appetit Categories
Rice
Pasta

• Pasta Alfredo
• Three Cheese Rotini
• Macaroni Cheese
• Tomato Parmesan Penne

• Herb Chicken Vegetable
• Cheddar Broccoli Rice
• Southwestern Rice

30
Nearly 100 of buyers and sales are through
traditional grocery channels
31
Low penetration rates and heavily
deal-dependent purchases

• Nearly ½ of all purchases made on deal and nearly
  25 made with coupon

32
Rice bowl consumers are more loyal, but not as
inclined to repeat purchase
33
Overall sales levels have declined since
introduction, but have been steady since May

• Pasta bowls represent nearly 60 of sales volume
• Potato bowl volume ramping up after mid-year
  introduction

• Seasonal bias shown in volume
• Dip in 12/00 likely due to holidays
• Decline seen in summer months and now starting to
  rise as winter approaches

34
Established products have distribution and
turnover well above average

• Pasta and Rice Bowls have high distribution
  levels and above average velocity
• Potato Bowl is a new entry and is still ramping
  up both distribution and velocity
• All three bowls are on par with feature/display
  activity

35
Bowl Appetit Current Situation Key Learnings

• Distributed through traditional grocery channels
• Low penetration rates
• Steady sales for 3rd quarter 2001
• Distribution and turnover above average

36
Bowl Appetit Customer Research
37
Rice Bowl consumer
Caucasian
Full-time, White collar
5 member households
40,000-49,999
Young Singles
13-17 yr old children
Middle Age Childless Couples
East region
38
Pasta Bowl Consumer
Caucasian
3-4 member household
35-44 and 45-54
Full time, white collar
Childless couples
70,000
Mature families
Kids 13-17 yr.
Established families
East
39
Market Research

• Product Satisfaction Survey I II
• New Product Concept Survey

40
Product Satisfaction Survey I

• The survey asked respondents (n 14) to
• Indicate your satisfaction with the following
  product attributes on a scale from 1 to 5
• Taste
• Convenience
• Size of Portion
• Variety of Flavor Offerings
• Appeal of Flavor Offerings
• Easy to Locate in Store

41
Product Satisfaction Survey I (Current Product)
42
Product Satisfaction Survey I Key Learnings

• Promote product strengths Convenience and Size
  of Portions
• Opportunity in Flavor Variety and Taste
• Not as easy to locate in store as we would like
• Product quality observation
• Our flavors are appealing, but dont deliver on
  taste expectations

43
Product Satisfaction Survey II
Do you view the product as a meal, a side, a
snack, or all three?
44
New Product Concept Survey

• Indicate the top three offerings you are most
  likely to buy
• Smaller single serving
• Sumptuous Sides - half starch, half veggies
• Co-promote with pre-cooked meat offering
• Meaty Sauce Envelope
• Ethnic flavors

45
New Product Concept Survey Results
46
New Product Concept Survey Key Learnings

• Respondents find ethnic flavored meal an
  appealing offering. Consider re-brand.
• Respondents find Sumptuous Sides an appealing
  meal supplement.

47
RecommendationsSumptuous Sides

• Customer
• Competitor
• Concept Development
• Marketing Plan
• Financials

48
Sumptuous Sides Concept Rollout
June 2000
2003
2004
2002
Bowl Appetit Launched
Phase I Sumptuous Sides Launch
Phase II Sumptuous Sides Launch

• Phase I
• Half Potatoes or Rice (Betty Crocker), Half
  Vegetable (Green Giant).
• Phase II
• Maintain Phase I products
• Introduce equal portions of
• Potatoes or Rice (Betty Crocker),
• Vegetables (Green Giant),
• Dessert, Muffin or Bread (Pillsbury).

49
Single/empty nest/divorced or childless
population is broadening and increasing

• Marriage rates have fallen and divorce rates have
  increased
• The number of marriages per thousand unmarried
  women aged 15 has fallen from 77 in 1970 to 50
  in 1996
• Average age at first marriage female 25, male 27
• In 1960, 94 of women had been married at least
  once by age 45, but if current trends continue,
  fewer than 85 of today's young adults will ever
  marry
• Couples have a 40 50 chance of divorce or
  permanent separation
• People are having fewer children, if any
• 34 of all households had at least one child
  under 18 in residence, (down from 49 in 1960)

Source American Demographics, 1999
50
Sumptuous Sides Target Market

• Working Professional
• Single, divorced, or single parent, married
  without children
• Age 18-35
• Empty nesters
• Age 50 up

51
Motivations and Moments in Time

• Had busy day
• A little impatient
• Want to start winding down
• Feeling need for square meal
• Want variety in dinner
• Dont have time to plan and prepare entire meal
• Want to complement usual solitary main course
• Want sides of veggies and potatoes
• Dont want the hassle of several individual
  preparations
• Want to minimize chore of cleaning afterwards

52
Convenience has multiple meanings for consumers
53
Competitive Landscape
Full Meal
Stouffers
Home Cooked Meal
Healthy Choice
Uncle Bens Bowls
Chef Boyardee
Time consuming to prepare
Convenient
Kraft Easy Mac
Fresh Veggies
Opportunity
Canned Veggies
Side dish
54
Concept Development

• Sumptuous Sides
• The Easy Prep, Single Serve, No Clean-up, Meal
  Completer
• When dining alone, Sumptuous Sides allows you to
  prepare a well-balanced, nutritious meal without
  the hassle of managing multiple pots and pans.
• Specially prepared microwaveable rice, potato,
  and vegetable side dish combinations that
  compliment any entrée.
• Easy to prepare Just add water to bowl contents
  and microwave for 5 minutes.
• 4 great varieties Sour Cream Chive mashed
  potatoes and green beans, Garlic mashed potatoes
  and mixed vegetables, Herb chicken rice and peas,
  Three cheese rice and mixed vegetables
• Available in your local grocers rice potato
  aisle.
• Just 1.80 per serving (includes 2 sides)

55
Fit with General Mills Betty Crocker

• Core Competencies
• Competency in dry, shelf-stable meal/snack/side
  solutions
• Providing convenience
• Providing meal ideas
• Great Distribution
• Brand Equity
• Sincere
• American-style food
• Simplified solutions that work
• Quality at affordable prices
• Betty Crocker targets women
• Product positioning
• Makes side dish offerings complete with a
  convenient option

56
Sumptuous Sides - Switching Logic

• What customers get from competition
• Ease in preparation
• Good taste
• Reasonable Price

• What customers would get from Sumptuous Sides
• Ease in preparation
• Good taste
• Reasonable Price
• What ADDITIONAL VALUE customers get from
  Sumptuous Sides
• Home cooked meal
• Sense of accomplishment

57
Marketing Plan

• Brand Equity The Easy to Prepare, No Clean-up,
  Meal Completer
• Strength / Competitive Advantage Betty Crocker
  and Green Giant quality with no hassle and no
  clean-up
• On Shelf Positioning In Food and Mass on rice
  potato aisle
• Pricing 2.5 oz SKU 1.80
• Advertising
• 10MM in advertising support with focus on
  quality and no hassle. (Money will be borrowed
  from Betty Crocker parent product for year 1.)
• Ads focus on working singles who want a complete
  meal without actually cooking a complete meal.
• Other Promotional ideas
• .50 coupons dropped 10/1, 1/29, 4/1 (FSI will
  include Green Giant products also to share cost)
• Single sku displays offered to retailers with Off
  Invoice allowance of 5
• 1.00 coupon dropped to undergraduate college
  students
• SKUs will be added to Betty Crocker cookbook in a
  special Easy Meals Section
• Betty Crocker Recipe Cards will be given away
  during 1st year promotion on selected SKUs.
• Co-promotion (Complete your meal) with Pillsbury
  (.50 off both Pillsbury and Sumptuous Sides)

58
Promotion

• LAUNCH -YEAR 1
• Place Ads
• Run Special Sales
• Issue Coupons
• Incorporate Recipe Cards
• In-Store Sampling

• YEAR 2- YEAR 3
• Launch New Varieties
• Support with Launch Promo

59
Sample Recipe Card

• Recipe cards for Betty Crocker entrees will be
  included on Sumptuous Sides
• Any given sku will include one of seven
  different entrée recipes. This will encourage
  repeat purchases in order to accumulate the
  different Betty Crocker recipes. The entrees
  will be switched annually.

LONDON BROIL 1 pound
high quality beef flank steak 1 tablespoon
margarine or butter 2 medium onions, thinly
sliced ¼ teaspoon salt 2 tablespoons vegetable
oil 1 teaspoon lemon juice ½ teaspoon salt ¼
teaspoon pepper 2 cloves garlic, crushed Cut
both sides of beef steak in diamond pattern 1/8
inch deep. Heat margarine in 10 inch skillet
over medium-high heat. Sautee onions and ¼
teaspoon salt in margarine about 4 minutes keep
warm. Mix remaining ingredients brush half of
mixture over beef. Set oven control to broil.
Broil beef with top 2 to 3 inches from heat
about 5 minutes. Turn beef brush with remaining
oil mixture. Broil 5 minutes longer. Cut beef
across grain at slanted angle.
Betty Crockers Cookbook
60
Perceived Value Pricing
Bowl Appetit
1.50
Baseline Value - Convenient, Hot Meal Option,
Easy Preparation, Grocery Availability, Low
Price, Trusted Brand
Sumptuous Sides Phase I
1.80
Added Complementary Value - Variety, Multiple
Trusted Brands
Sumptuous Sides Phase II
1.90
Added Complementary Value - Variety, Multiple
Trusted Brands
61
Sumptuous Sides Price Determination

• Phase I Assumptions
• Canned Vegetables 0.08/oz
• Frozen Vegetables 0.21/oz
• Average 0.15/oz
• Serve 2 oz vegetables as side 0.30
• Decrease in starch volume offsets increased
  manufacturing costs
• 1.50 0.30 1.80
• Phase II Assumptions
• Decrease in starch and vegetable volume offsets
  costs of third side
• 0.10 increase in manufacturing costs
• 1.80 0.10 1.90

62
Financial Assumptions

• 100 million households in U.S.
• Penetration increases 2 per year for first three
  years
• Purchase size and frequency held constant
• Price 1.80 for two sides, 1.90 for three sides
• Cannibalization
• Loss of potato flavors for Bowl Appetit
• Remaining Bowl Appetit Flavors decreases (15)
• Phase II causes Phase I sales to decrease (50)

63
Sumptuous Sides Revenue Generation
64
Recommendations Bowl Appetit for Kids

• Customer
• Competitor
• Concept Development
• Marketing Plan
• Financials

65
Bowl Appetit for Kids Concept Rollout
June 2000
2003
2004
2002
Bowl Appetit Launched
Bowl Appetit for Kids Launch
Bowl Appetit for Kids Additional Flavors / Shapes
Generate the maximum level of sustainable growth
in single-serve, shelf-stable food product
revenues for the next three years
66
Trends Indicating Families Have Less Time for
Home Cooked Meals

• Parents of both sexes are spending an average of
  ten or twelve hours less per week with their
  children than when they did in 1960. (Journal of
  the American Medical Association study, from The
  New Yorker.) http//www.pbs.org/livelyhood/working
  family/familytrends.htmls

67
Day in the Life of Working Mom

• 530 AM Get up, exercise, make grocery list,
  dress
• 630 AM Make kids breakfast and lunch
• 700 AM Walk dog, get kids up dressed fed, and
  into car
• 830 AM Take one kid to day care, other to
  school, stop at dry cleaner
• 900 AM Job
• 130 PM Meeting at daycare center with
  childcare provider
• 200 PM Back to job
• 530 PM Pick up child from school and discuss
  child homework
• 605 PM Pay late arrival fee at day care
  center, go to grocery store
• 700 PM Get home, unload groceries, make
  dinner
• 730 PM Eat dinner
• 800 PM Dishes, supervise kids chores and
  homework, laundry, feed dog, bathe kids
• 900 PM Bedtime stories
• 1000 PM Sit down, finish laundry, fall asleep
  in front news

Source http//www.dol.gov/asp/futurework/report/
chapter3/main.htm
68
Target Market

• PUSH
• Single parents with school-age children
• Dual-income families with school-age children
• On-the-go families
• PULL
• Children 9 15 years old

69
Motivations and Moments in Time

• PUSH
• You are a single parent and you are not available
  to prepare a home-cooked meal/snack for your
  children. You trust Betty Crocker to provide
  high quality nourishment. You want a hot option
  that does not involve actual cooking or
  clean-up.
• PULL
• You are hungry pre/young teen who needs a quick
  snack after school. You know mom and/or dad
  cant always provide the snack and you want
  something you can cook. You also are most
  satisfied if you enjoy the taste and your parents
  know you are eating right.

70
Competitive Landscape
Adult
Stouffers
Healthy Choice
Home-cooked Meals
Uncle Bens Bowls
Chef Boyardee
Pizza
Time consuming to prepare
Convenient
Ragu Express
Opportunity!!!
Kraft Easy Mac
Kraft Mac Cheese
Hot Dogs
Hormel Kids Kitchen
Childrens
71
Concept Development

• Bowl Appetit for Kids
• The Easy Prep, Single Serve, No Clean-up, Hot
  Snack you can trust
• You are a single parent and you are not
  available to prepare a home-cooked meal/snack for
  your children. You trust Betty Crocker to
  provide high quality nourishment. You want a hot
  option that does not involve actual cooking or
  clean-up.
• Specially prepared microwaveable pasta bowls
  with flavors and shapes of characters your
  children love.
• Easy to prepare Just add water to bowl contents
  and microwave for 5 minutes.
• 4 great varieties Macaroni Cheese, Pizza
  Pasta, Pasta and Tomato Sauce, Cheeseburger
  Noodles
• Available in your local grocers ?? aisle.
• Just 5.00 per package/4 separate servings per
  package

72
Fit with General Mills Betty Crocker

• Core Competencies
• Competency in dry, shelf-stable meal/snack
• Providing convenience
• Providing meal ideas
• Great Distribution
• Brand Equity
• Sincere
• American-style food
• Simplified solutions that work
• Quality at affordable prices
• Betty Crocker targets women/mothers/families
• Product positioning
• Extends children product offering beyond
  breakfast

73
Bowl Appetit for Kids - Switching Logic

• What customers get from competition
• Ease in preparation
• Good taste
• Reasonable Price

• What customers would get from Bowl Appetit for
  Kids
• Ease in preparation
• Good taste
• Reasonable Price
• What ADDITIONAL VALUE customers get from Bowl
  Appetit for Kids
• More complete meal
• Ease of disposal
• Variety of flavors

74
Marketing Plan

• Brand Equity The Easy to Prepare, No Clean-up,
  Hot-Snack you can trust
• Strength / Competitive Advantage Betty Crocker
  quality and trust with no hassle and no clean-up
• On Shelf Positioning In Food and Mass on Pasta
  Rice aisle
• Pricing 1.75 oz sku 1.25 (4 servings per 5
  package)
• Advertising
• 5MM in advertising support with focus on trust,
  flavors, and shapes. (Money will be borrowed from
  Bowl Appetite parent product for year 1.)
• Ads focus on busy moms, great flavors, and no
  hassle/no clean-up.
• Other Promotional ideas
• .50 coupons dropped 9/1, 3/29, 6/1 (FSI will
  include Bowl Appetite to share cost)
• Displays offered to retailers with Off Invoice
  allowance of 5
• 1.00 coupon dropped to parents of kindergarten
  children as part of national program
• Back to school mazes on back of packaging offered
  during fall quarter
• Future considerations include licensing of
  Rugrats characters

75
Promotion

• LAUNCH -YEAR 1
• Place Ads
• Run Special Sales
• Issue Coupons
• Display/Feature allowance for retailers

• YEAR 2- YEAR 3
• Launch New Varieties
• Support with Launch Promo
• License Rugrats characters

76
Perceived Value Pricing
Bowl Appetit
1.50
Baseline Value - Convenient, Hot Lunch Option,
Easy Preparation, Grocery Availability, Low
Price, Trusted Name
Bowl Appetit for Kids
1.25
Change in Complementary Value Smaller Portion
Size, Meal Solution for Kids, Discount Perception
for Multipak (4 packs for 5.00)
77
Financial Assumptions

• Competitive Set / Market size defined by Scanner
  Data
• Hormel Kids Kitchen
• Kraft Easy Mac
• Growth of category at 15 per year
• General Mills captures 20 upon entrance
• Price 1.25/unit
• No cannibalization of Bowl Appetit

78
Bowl Appetit for Kids Revenue Generation
79
Next Steps and Summary
80
Bowl Appetit Next Steps

• Potatoes to be phased out of Bowl Appetit over
  the next year
• Potatoes to be one of two anchors (rice) for
  Sumptuous sides
• Consider ethnic flavors for Bowl Appetit based on
  Market Research (see Appendix)
• Ethnic food flavors expected to have high growth
• Idea believable to survey respondents
• Opportunity to expand image of Betty Crocker
  competencies

81
Summary

• Key Learnings
• Sumptuous Sides
• Bowl Appetit For Kids
• Next Steps

82
Appendix
83
Products as Satisfaction-Generating Systems
Firms Causal Promise
Customers Causal Promise
Physical action or object
Functional, experiential, symbolic
PRODUCT Satisfaction-Generating System
Firms Objectives
Customers Objectives
Identify and understand sources of competition
gtgt for satisfying customer needs
Attain satisfaction
Only concerned with gtgtattributes that deliver
benefits
No concern for physical attributes
84
Products as Satisfaction-Generating Systems
Sumptuous Sides Satisfaction-Generating System
Convenient Sumptuous Sides make an entrée a
quality meal!
Customers function, experience, symbolism
Firms Physical action or object
Satisfaction of a square meal
Bowl is half starch, half veggies
-Betty Crocker taste quality
Goodness of Betty Crocker quality
-Potatoes, rice, or pasta
-Peas, green beans, carrots, mixed
Event of eating a real meal
Quick prep time
Convenience of quick preparation
Prepared in serving bowl, no clean-up
Convenience of quick clean-up
85
Products as Satisfaction-Generating Systems
Bowl Appetit for Kids Satisfaction-Generating
System
Bowl Appetite for Kids because you trust your
kids with Betty
Customers function, experience, symbolism
Firms Physical action or object
Satisfaction of a hot snack/meal
Bowl of character shaped pastas
-Betty Crocker taste quality
Goodness of Betty Crocker quality
-Kids portions
-Comes in multi-pack -Macaroni cheese, pizza
pasta, pasta and tomato sauce
Convenience of quick clean-up
Convenience of quick preparation
Quick prep time
Prepared in serving bowl, no clean-up
86
Detailed Financial Projections for Sumptuous
Sides
87
Distribution Value Trade-offs

• Grocery Stores
• Consumer able to capture value of accessibility
  and deals available from grocery stores. GM
  value is function of the volume of grocery
  shopping occurring at grocery stores.
• Club Stores
• Consumer able to share value derived from bulk
  purchases existing in most club stores. GM
  shares value generated from efficient purchasing
  and multi-pack/bulk quantities.
• Mass Merchandisers
• Consumer able to share value derived from buying
  power of mass merchandiser. GM shares in value
  generated from efficiencies of merchandiser and
  large volumes.

88
Typology of Marketing Strategies

• Betty Crocker
• Challenger
• single serve convenient hot meal market
• no dominant player
• category highly fragmented
• Follower
• imitating yet improving upon current offerings

Market Leader
Market Challenger
Market Follower
Market Niche
89
Food consumers can be broken into 6 distinct
segments
Healthy Family Cooks (13)
Spend time and money on quality and freshness
Gut-stuffing Indulgents (15)
Prepare food from scratch, emphasize price and
value
Thrifty Food Balancers (16)
Regularly eat fast food and restaurant dinners
On-the-go Jugglers (18)
Time-stressed and busy
Meat and Potato Cooks (18)
Prepare traditional family meals, use
ready-to-prepare meals
Strict Food Monitors (20)
Prefer healthy but fast choices
Source The Partnering Group, Beyond Foodservice
90
Opportunity Analysis
Demographics
Brands
Represents market opportunities (index lt 80)
Represents market saturation (index lt 120)
91
Bowl usage is widespread

• According to a consumer survey by Uncle Bens
• 100 had eaten bowl foods in the past year
• 65 eaten at home, in front of TV
• 43 parties/friends home
• 26 at work in the cafeteria
• 23 at work at desk
• 5 in car

Source Frozen Food Age, 11/00
92
Single/empty nest/divorced or childless
population is broadening and increasing

• Marriage rates have fallen and divorce rates have
  increased
• The number of marriages per thousand unmarried
  women aged 15 has fallen from 77 in 1970 to 50
  in 1996
• Average age at first marriage female 25, male 27
• In 1960, 94 of women had been married at least
  once by age 45, but if current trends continue,
  fewer than 85 of today's young adults will ever
  marry
• Couples have a 40 50 chance of divorce or
  permanent separation
• People are having fewer children, if any
• 34 of all households had at least one child
  under 18 in residence, (down from 49 in 1960)

Source American Demographics, 1999
93
Macro Trends - Ethnicity

• Ethnic food continued expansion opportunity for
  food suppliers
• 50 market growth over next decade
• Mainstream consumers account for 75 of ethnic
  food sales

Source Prepared Foods, November 1999
94
Betty Crockers Image EvolutionWeb Search Results

• Created in 1921 for signature, evolved since
• Image having more narrow appeal as U.S. market
  Opportunities trending toward diversified
  audiences contributing to melting pot of cultures