Title: Betty Crocker
1Betty CrockersLunch Break and Mini Breakyou
Deserve it!
- Marketing strategy and two new concepts for
single-serve, shelf-stable food products - November 19, 2001
Marketing Strategy General Mills Project Team 3
(M/Th 115) Paulo Alves, Teena Cater, Erin
McCormack, Marniee Nottingham, Moni Singh, Caveni
Wong
2Executive Summary
- Objective
- Create a three year sustainable growth strategy
for General Mills for single-serve shelf-stable
food category. - Strategy
- Pursue a growth strategy for the Adult lunch
market - Target economically affluent, yet time poor
consumers - Provide a means to consumers to do something good
for themselves, even when they feel they dont
have the time
3Strategic Vision
- Take control of adult lunch market by empowering
consumers with the perception of convenient real
food preparation.
When you think of lunch, think Betty Crocker.
4Translating market knowledge for value delivery
- Market Learning
- Need for control, whole meal, taste and
convenience - Under exploited lunch market
- Value Creation
- Providing shelf-stable tasty and healthy
offerings via two new product concepts - Lunch Break
- Mini Break
- Value Delivery
- Leverage General Mills existing market based
assets such as distribution, customer and partner
relationships, and brand equity
5Agenda
- Market Learning
- Value Creation
- Value Delivery
- Criteria for Success
- Potential Threats
- Revenue Projections
- Long Term Considerations
6Agenda
- Market Learning
- Value Creation
- Value Delivery
- Criteria for Success
- Potential Threats
- Revenue Projections
- Long Term Considerations
7Market Learning
- Market Overview
- Consumer Trends
- Competitive Analysis
- Bowl Appétit Brand Equity Analysis
8Market Overview
Market Learning
- Single-serve convenience meal market is highly
fragmented - Four strategic groups within convenience meals.
(Bowl Appétit competes more closely with
ready-to-eat, ready to-heat and restaurant food) - Ready to Eat meal replacement bars, Oscar
Meyers Lunchables - Ready to Heat Bowl Appétit, Campbells soup,
frozen meals - Scratch Fast Skillet dinners like Create-a-Meal
- Restaurant Food
Source Information Resources, Inc., NCBA
9Consumer Trends
Market Learning
- Ready-to-heat category is growing while
restaurant foods are declining - Ready-to-heat category increased by 22 in sales
over the last year and by 100 over the past
three years - 45.8 of food budget is spent on food away from
home. However, - annual meals eaten in restaurant per person
declined from 66 in 1999 to 64 in 2000 - take-out meals also declined from 73 meals per
person to 70 in 2000 - There is an opportunity to capture the growth in
ready-to-heat category
Source Information Resources, Inc., NCBA
10Consumer Trends (continued)
Market Learning
- Opportunity to build a convenience lunch market
for affluent households - Consumers want
- A whole meal (meat, vegetables, and
carbohydrates) - 25 Americans skip breakfast on average
- Convenience
- Cooking is a special occasion activity
- Average Americans willingness for time spend
cooking is 15 minutes - Taste and nutritional value
- However, nutrition may be compromised for
convenience (motivation in the moment of time
53.2 eat fast food) - Control
- Control over their diet even when they are busy
Source NPD Group Inc. and customer survey
conducted by the team. See backup slides.
11Consumer Trends (continued)
Market Learning
- Consumers may associate convenient meals with
dinner - Weekday eating is considered an individual
activity - 90 consumers have access to microwave at work
- Dual-income and single-parent families are more
likely to buy prepared meals
Source NPD Group Inc. and customer survey
conducted by the team. See backup slides.
12Competitive Analysis
Market Learning
Strong retail competition for dinner, but lunch
market is undefined.
Source Company websites, store walks and taste
test conducted by team. See backup slides.
13Competitive Analysis Price vs. HealthMapping of
Single Serve, Convenient Meals
Market Learning
Consumers associate shelf stable products with
low health
Source Company websites, store walks and taste
test conducted by team. See backup slides.
14Competitive Analysis Price vs. Taste
Mapping of Single Serve, Convenient Meals
Market Learning
Consumers are willing to pay for taste
Source Company websites, store walks and taste
test conducted by team. See backup slides.
15Brand Equity Analysis Brand Report Card
Market Learning
16Brand Equity Analysis (continued)
Market Learning
- Most respondents were unaware of product
existence (Refer to Consumer Survey) - For others, Bowl Appétit identity is fragmented
- Consumer is unclear about usage
occasions/situations - Consumer doesnt differentiate from frozen food
There is a need to develop awareness for the
brand and the shelf stable category
Source Consumer survey conducted by the team
17Agenda
- Market Learning
- Value Creation
- Value Delivery
- Criteria for Success
- Potential Threats
- Revenue Projections
- Long Term Considerations
18Agenda
- Strategic Vision
- Product concepts
- Alternatives Considered
- Value Proposition
- Strategy and Target Market
19Strategic Vision
- Take control of adult lunch market by empowering
consumers with the perception of convenient real
food preparation.
When you think of lunch, think Betty Crocker.
20Strategic Vision Implementation
- Leverage Betty Crocker brand equity
- Bowl Appétit triggers an association with
mixing bowls for baking needs - We recommend discontinuation of the sub-brand
usage - Include Bowl Appétit current line of products
under the Betty Crockers Mini Break in smaller
portions - Leverage the recent Pillsburys acquisition by
co-branding with Green Giant - Frozen vegetable sales are declining,
shelf-stable vegetables is a means of
diversifying and creating a new means for
vegetable consumption. - Leverage co-branding opportunities with current
(Heinz-Starkist) or future potential partners - Exploit premium image of other companies brand
to elicit perception of freshness and healthiness
21Product Concepts
- Betty Crockers Lunch Break
- total meal complete with dessert treat
- Betty Crockers Mini Break
- a complementary addition to lunch or any time
theres a need for a break
Take a break. You deserve it!
22Alternative Options Considered
- Abort shelf-stable market
- Not within project scope
- Target anytime market (as opposed to lunch
only) - More opportunity in targeting lunch only
- Not much opportunity to differentiate
- Unfocused causing confusion for consumers
- Target kids
- Kraft already is in the market
- Adult lunch is a new market identified by an
unmet need - Ethnic Market
- Not a current GMs strength
- We propose exploring this in future
23Betty Crockers Lunch Break
- All-in-one meal
- Including a main dish and dessert
- Complete with carbohydrates and protein
- Separate pouch for meat and/or vegetables
- Vacuum packed fresh ingredients
- Convenient preparation without diminishing the
cooking experience - Mix contents before heating
- Requires involvement with minimal time commitment
- Four Varieties
- Tuna Noodle Casserole (co-brand with Star-Kist)
- Hot Veggie Pasta Salad (co-brand with Green
Giant) - Chicken with Rice and Broccoli (co-brand with
Tyson and Green Giant) - Sundried Tomatos and Pasta with Sausage Sauce
(co-brand with Green Giant
24Betty Crockers Lunch Break (Continued)
- Hot, Nutritious Meal
- Rice or Pasta
- Meat and/or Vegetable
- Cookie or Brownie
25Betty Crockers Mini Break
- Mini Break for a lunch addition or a snack
anytime - Green Giant Veggie Pack Bowls
- Potato Bowls
- The top 3 best sellers for former Bowl Appétit
(penne pasta, etc.)
26Betty Crockers Lunch BreakValue Proposition
- Regain control of your day by preparing a
quick, convenient, wholesome meal. Do something
good for yourself even when you dont think you
have the time. - Control what you eat, even when you are busy.
-
27Betty Crockers Lunch Break New Value Curve
- Low time and price investment
- High control, taste and convenience
- Total Solution for lunch carbohydrates
meat/veg dessert
28Betty Crockers Lunch Break Strategy
- Target customer
- Affluent women (35 54) who are short on time
and need quick, convenient meals - Switching logic
- Consumer surveys show willingness to pay for
improved taste and quality Lunch Break offers a
superior choice to Bowl Appétit
29Betty Crockers Mini Break Strategy
- Target customer
- Affluent consumers who want to improve their
lunch experience by adding a hot side dish or who
dont have time to take a snack break - Value proposition
- Provides control over lunch and snacks while
making the consumer feel good about herself
convenience without guilt - Switching logic
- Higher quality, more nutrition, convenience
coupled with trusted brand name
30Lunch Break and Mini Break Nutrition Goals
- Calories
- Position calories between Healthy Choice (280)
and Uncle Bens Noodle Bowl (400) less than 350
would be optimalcurrent Bowl Appétit range is
210 350 - Fat
- Position fat grams between Healthy Choice (5) and
Uncle Bens (8) 6 - 7 would be optimalcurrent
BA range is 5 8 - Sodium
- Position sodium between Healthy Choice (25)
and Uncle Bens (41) optimal would be 25 -
30--current BA range is 36 - 41 - Protein
- Position protein grams between Healthy Choice
(14) and Uncle Bens (21) optimal would be 15
20current BA range is 4 12 - Additional
- Add calcium fortification to appeal to women aged
35 54, technology available in GMs RTE cereals
31Lunch Break and Mini Break Portions
- Lunch Break
- 8 ounces of pasta plus 3 ounces of vegetables
and/or meat plus sauce pouch (depending on
variety) and have a 2-4 ounce cookie or brownie - Mini Break
- 6 to 8 ounce side serving
- All sizes are measured as eaten, not before
preparation
32Agenda
- Market Learning
- Value Creation
- Value Delivery
- Criteria for Success
- Potential Threats
- Revenue Projections
- Long Term Considerations
33Value Delivery
- Organizational Fit
- Marketing Mix Elements
- Packaging
- Brand awareness Advertising
- Placement
- Promotion
- Co-branding
- Strengthen current Bowl Appétit product
- Potential Threats
34Organizational Fit with General Mills
- Strategic vision for lunch fits with General
Mills goal of being the 1 food marketer - Opportunity to cross-sell to General Mills
current customer base for dinner - Additional revenue source by creating a new
market space that bridges the two strategic
groups Ready to Heat and Scratch-Fast
35Marketing Mix PackagingBetty Crockers Lunch
Break
- Side panels
- Nutritional information and ingredients
- Lunch Break varieties and Mini Break
Front view
Co-Branding Logos
Back view
Betty Crocker
Great for lunch, or a quick meal any time!
Daily Nutrition
Lunch Break provides you with a balanced lunch
containing healthy portions of protein,
vegetables and carbohydrates.
Lunch Break representation of the 5 food groups
Photo of prepared meal
Two see-through windows to view fresh vacuum packs
Usage scenarios to extend usage situations beyond
lunch
Bottom panel microwave directions
36Marketing Mix PackagingBetty Crockers Mini
Break
Front view
- Side panels
- Nutritional information and ingredients
- Lunch Break varieties and Mini Break
The side dish that is great with lunch or by
itself!
Usage scenarios to extend usage situations beyond
lunch
Back view
Mini Break you deserve it!
Co-Branding Logos
Honey glazed mixed vegetables
Great any time with lunch, as afternoon snack
or an any time snack!
NET WT. 6OZ (150g)
Photo of prepared dish
Mini Break helps you eat healthily by providing
the right amount of vegetables and carbohydrates.
Mini Break representation of the 5 food groups
Bottom panel microwave directions
37Marketing Mix Advertising
- Use advertising to create category and brand
awareness - Spending on advertising on National TV and print
media (at least 30 million in the first year) - Emphasize the ability to control what you eat
even when you are busy - Depict usage situations
- Take a break. You deserve it! A middle aged women
rushing through her day, feeling our of control.
Takes out a Betty Crocker Lunch Break from her
office desk, prepares it and enjoys a wholesome
break with a sense of empowerment. - Consumer taste test that highlight the freshness
of food
38Marketing Mix Placement
- Leverage existing General Mills distribution
- Bowl Appétit has achieved 89 ACV in one year
- Exploiting General Mills distribution asset, we
expect to achieve similar ACV for Betty Crocker
Lunch Break and Betty Crockers Mini Break
39Marketing Mix Placement (continued)
- Food Channel
- End of aisle displays adjacent to Lunchables
- Lunch Break - Same aisle as pasta rice mixes
- Mini Break - Same shelving area as Hamburger
Helper - Drug Channel
- Mass Channel
- Club Channel for Lunch Break only
- Convenience Store Channel
- Coffee or Café Shops that sell sandwiches
- Vending Machines in hospitals, colleges
40Marketing Mix Promotion
- Use minimal promotion budget to target affluent
consumers - This may include FSCI, Point of purchase sales
materials, end aisle displays, Direct to consumer
mailers - Emphasis will be placed on end of aisle displays
- End aisle displays facing frozen sections can tap
the majority consumers as typically they look for
convenient meals in frozen section. - End aisle displays facing Lunchables section can
tap the consumers already familiar with lunch
combination concept
41Agenda
- Market Learning
- Value Creation
- Value Delivery
- Criteria for Success
- Potential Threats
- Revenue Projections
- Long Term Considerations
42General Mills Criteria for Success
- Compelling benefit to consumer
- Lunch Break and Mini Break provide control to
consumer - Differentiated product/positioning
- No other adult complete lunch concept currently
available - Delivery on promise of concept
- Higher quality, convenient nutritious and tasty
product - Consumer is aware that product is out there
- Leverage GMs marketing strength
- Product is available (distribution channels)
- Leverage GMs supply chain management
Source Discussion Peter McDonald
43Agenda
- Market Learning
- Value Creation
- Value Delivery
- Criteria for Success
- Potential Threats
- Revenue Projections
- Long Term Considerations
44Potential Threats
- New Competition within Category
- Perdue Farms
- Subsidiary DeLuca(TM)in the process of rolling
out DeLishables(TM) (family-size entrees with a
24-day shelf life) - Kraft
- Strong brand awareness among children for lunch
- Recent Its Pasta Anytime acquisition
- Expected to launch other shelf-stable convenience
meals - History of aggressive marketing (Kraft took away
12.6 market from Hamburger Helper in just 2nd
year of launch of Stove Top Oven Classics) - Response from non-category competitors such as
restaurants
Source Refrigerated Frozen Foods magazine
45Agenda
- Market Learning
- Value Creation
- Value Delivery
- Criteria for Success
- Potential Threats
- Revenue Projections
- Long Term Considerations
46Revenue Projections Market Potential
- Market potential for target consumers (2002)
- Total female population at age 35-64 57,979
- of population who work 60
- households with income gt50K 32
- usage occasions per week 2
- work weeks per year 48
- Lunch Break (in 000s)
- Average price 3.15
- Total market potential 3,366,307
- Revenue projection (2002) as of market
potential 0.7 - Mini Break (in 000s)
- Average price 1.39
- Total market potential 1,485,450
- Revenue projection (2002) as of market
potential 0.7
Assumptions based on U.S. Census, labor
statistics, and Nielsen panel data
47Revenue Projections Lunch Break
48Revenue Projections Mini Break
49Agenda
- Market Learning
- Value Creation
- Value Delivery
- Criteria for Success
- Potential Threats
- Revenue Projections
- Long Term Considerations
50Long Term (gt 3 years) Considerations
- Continuous innovation
- To sustain first mover advantage
- Consider entering ethnic markets
- Fast growing
- Line Extension
- Target men and kids for lunch
- Global branding
- For sustained growth
51Executive Summary
- Objective
- Create a three year sustainable growth strategy
for General Mills for single-serve shelf-stable
food category. - Strategy
- Pursue a growth strategy for the Adult lunch
market - Target economically affluent, yet time poor
consumers - Provide a means to consumers to do something good
for themselves, even when they feel they dont
have the time
52Sources References
- Foods Non Alcoholic Beverages Industry Survey,
Standards Poors, June 2001 - Filling the need to feed with speed, Chicago
Tribune, September 11, 2001 - NPD Reveals Americans Eating more meals prepared
at home, Business Wire November 01, 2001 - Heinz meanz microwaveable, The Grocer, April
2001 - Funny Bagels A Serious Rival to Kraft?,
Brandweek, Aug 2001 - Drug raises the bar on meal replacement snacks,
Drug Store News, Oct 2001 - Euromonitor national statistics
- Euromonitor Meat and Poultry in the USA
- Euromonitor Frozen Food in the USA
- National Provisioner, August 2001
- Websites
- OneSource
- Euromonitor
- Company Websites
- General Mills Project Website
- Bureau of Labor Statistics
- www.foodprocessing.com
- U.S. Census
53Backup Slides
54Working Women
55Data Collection Methodology
- Secondary Research
- Consumer Survey
- Details follow
- Taste Test
- 6 consumers (team)
- Grocery Store Walks
- We include only grocery stores because most
consumers buy convenience meals from these stores - Krogers, Food Lion and Harris Teeter
56Consumer Survey
- Objective
- A preliminary survey was conducted to obtain
information on consumer behavior, and perceived
value of Bowl Appétit and competitors - Sample Size
- 47 respondents
- Methodology
- Interviews conducted at public places to have
access to diverse users of convenient meals (such
as sport stadiums, coffee shops, and
supermarkets)
57Customer Survey Form
58Survey Demographics
- Gender
- 36.2 Males, 63.8 Females
- Employment
- 42.5 Students, 34.0 Professionals, 17.0 Others
Age
Race
59Consumer Survey Results
- Alternative to cooking
- 59.6 eats out
- 53.2 uses fast food
- 25.5 uses ready-to-heat products
- 14.9 uses frozen food
- Consumers look for read-to-heat products at
- Frozen aisle 42.6
- Dry-Food (rice or pasta) aisle 42.6
- Other 14.8
- Consumer Behavior
- 46.8 of consumers eat the product by itself
- 12.8 of consumers eat with complement or as a
side dish - 68.1 consumers eats the product at home
- 21.3 consumers eats the product at work
60Consumer Survey Market Insights
- Consumer perceives Bowl Appétit as
- Lunch 31.9
- Dinner 40.4
- Snack 19.1
- Late Night 8.5
- Positioning
- At least 1/3 of consumers does not differentiate
Bowl Appétit from frozen - 34.4 associates Bowl Appétit with fast food
61Consumer Survey Market Potential
- Frequency of usage
- 29.4 consumers use products twice per week
- 6.3 consumers use products once a week
- Potential improvements
- 12.8 would like larger portion
- 10.6 is interested in healthier options
- 19.1 would like to have meat included
- 21.3 would like improvements on taste and/or
consistency of products
62Taste Test Product Samples
63Bowl Appétit Rice Bowl (AKA porridge)
64Bowl Appétit Potato Bowl
65Bowl Appétit Pasta Bowl
66Taste Test Results
67Taste Test Summary
68Taste Test Summary (continued)
69Taste Test Summary (continued)
70Taste Test Summary (continued)
71Taste Test Summary (continued)
72Brand Analysis Brand Report Card
- Excellence at delivering consumer benefits
- Taste tests reveal unfavorable results
- Unmet need of control
- Relevance
- Consumers want more nutritional value
- Pricing strategy equivalence to value perception
- Price must relate to value added from control
convenience
73Brand Analysis Brand Report Card
- Positioning
- Points of parity great
- Points of difference shelf stable but must
deliver on taste/quality - Consistency
- Merchandising is inconsistent
- Unclear messages to consumer
- Sensibility of portfolio hierarchy
- Excellent maximization of market coverage
- Must evaluate internal brand hierarchy
74Brand Analysis Brand Report Card
- Equity building
- Must maximize brand awareness
- BM understanding of consumer perception
- Must further research consumer likes/dislikes
- Proper support and sustainability of support
- Excellent advertising consumer promotions
- Monitoring sources of brand equity
- Insufficient internal data to assess this
75Bowl Appétit faces competition from other
categories
- Frozen ready meals
- 9.5B market in 2000
- 6 YTY growth primarily due to product
development in low-fat meals, premium quality
products and microwaveable alternatives - Ready-to-serve canned soups
- 8.4 increase in 2000
- Meal replacement bars/snacks
- 1.5B in sales with 13 growth
- Restaurants
- Annual meals eaten in restaurant per person
declined from 66 in 1999 to 64 in 2000 - Fewer take-out meals, down from 73 meals per
person to 70 in 2000
Source Information Resources, Inc.
76Competitive Overview