MARKETING STRATEGY 468:
General Mills -- Project Bowl Appetit
Team 11 (Section 201)
Lillian Lilly
Jorge Tessey
Gabriel Michalup
Hide Tomita
Amrit Shergill
Zoya Trofimenko
Agenda
• Consumer Survey – the first step
• What
• Two Progresso-branded products for two market segments
• One also co-branded with Pillsbury
• Product Concept Testing
• Why
• Industry
• How
• Marketing Strategy
• Result
• Revenue Projections
• Q&A
Our Consumer Survey
52 Respondents asked about ready-to-eat meals. Result?
• Women are more concerned about nutrition than men. 50% of
Male respondents “didn’t care” vs 24% of women.
• However, nutrition is trumped by convenience in reason for
purchase ready-to-eat meals.
• Top nutritional concerns are fat, calories, with sodium distant 3d.
• Campbell’s soup is the product most frequently purchased by
women in the last 6 months (55%)
• 50% of married respondents eat ready-to-eat food for lunch while
77% of singles eat it for dinner.
• General Mills brands associated with ready-to-eat: Hamburger
Helper & Progresso
Our Two Solutions
Progresso Chili & Chips
Progresso Lunch-to-go!
Product 1: Progresso Chili & Chips
Product 1: Progresso Chili & Chips
NEED/VALUE PROPOSITION
Hearty eaters need a quick, healthy, easy-toprepare meal, all in one package.
OFFERING
15oz. Progresso Bean Chili + Tortilla Chips
(each part in self-contained bowl – snaps together
as one package)
Price: $2.89
Concept Testing - Chili
Key Results:
• The Progresso Brand preferred, followed by Hormel
• Surprising result –initial product concept was Old El Paso
branded but consumers strongly preferred Progresso
• 70% of those surveyed would try the product
• Most said it appealed to single men and kids
• Consumers overwhelmingly described it as “complete”,
“convenient” and “appealing”
• Equally associated with dinner and lunch
• 70% willing to pay between $2.49 and $2.89
• Majority preferred name “Chili & Chips”
Product 2: Progresso Lunch-to-Go
Product 2: Progresso Lunch-to-Go
NEED/VALUE PROPOSITION
Busy women need a quick, healthy, easy-to-
prepare lunch, all in one package.
OFFERING
12 oz. Progresso 99% Fat Free soup in a bowl +
2 Pillsbury breadsticks or one bread twist +
Plastic spoon and napkin already in package
Price: $2.49.
Concept Testing - Soup
Key Results:
• Progresso and Campbell’s close in recognition/ preference
• Soup with breadstick, all in one package, would appeal to
busy women
• The product was described as quick, convenient, high
quality
• Concern about sodium, fat, and presence of meat
• Consumers associated it primarily with lunch at work, with
dinner at home as second use
• 80% of them were willing to pay up to $2.49
• Majority preferred “Lunch to go” name over “Complete”
Chili Industry
• 85% of consumers surveyed in 1999 considered Chili as a
meal.
• Sales revenue growth 25% over last 3 years
• New products introduced cater to adults, oriented around
nutrition, eg chili ready meals (cans, dried in a pouch).
• Most popular type is “regular” chili with beans.
Soup Industry
• Overall 4% decline in soup market forecast,
but three segments are growing:
– “Soups away from home”
– Ready-to-serve soups (more likely to be
premium soups)
– Menu items in restaurants.
• Biggest concerns are time, convenience, and
ease of preparation
Competitors
•
•
•
•
SOUPS:
Campbell Soups, Knorr soups (Unilever), Healthy
Choice, Advantage/10 Soups (light soups from
ConAgra).
Campbell’s Soup Co ranked as the number one
manufacturer overall in 1999, with a market value
share of 54.8%.
CHILIS:
Hormel, Armour Star Chili, Wolf & Stagg.
Hormel is the leader with 14% of the market share
Marketing Strategy
a) Leverage Market-Based Assets:
• Progresso Brand Equity: Enjoys customer loyalty
and brand awareness, perceived as having
innovative new flavors
• General Mills’ Knowledge: Extensive knowledge
about customer profiles, suppliers and channels
Distribution – Chili Aisle
Placement
for our
product
Distribution – Soup Aisle
Placement
for our
product
Progresso Marketing Strategy
c) Pricing Strategy:
Quality
Price
High
Medium
High
Bear Country
Progresso Kits
Medium
Uncle Ben’s
Low
Campbell’s
Bowl Appétit!
Low
Kraft Mc Pasta
Maruchan
• High-value strategy: High-quality product at an
average price. We consider that our target customers are
price sensitive since they can easily compare the quality and
price of substitutes.
Chili Revenue Forecast
Revenues/Market Share
20.00%
$25.00
$20.00
15.00%
12.50%
$15.00
10.00%
$10.00
7.50%
5.00%
Revenues
Market Share
17.50%
$5.00
2.50%
0.00%
$2002
2003
2004
Years
Total New Product Revenues
Revenues are in US$ Million
Total New Product Market Share
Soup Revenue Forecast
1.80%
$70.00
1.60%
1.40%
$60.00
$50.00
1.20%
$40.00
1.00%
0.80%
$30.00
0.60%
$20.00
0.40%
0.20%
$10.00
0.00%
$2002
2003
2004
Years
New Line Total Revenues
Total New Market Share
Revenues are in US$ Million
Market Share from Competitors
Revenues
Market Share
Revenues/Market Share
Conclusion
• Synergies created by GM and Pillsbury
• Progresso high brand equity fits target
markets -- young, quality conscious and
growing
• Products fill unserved market needs –
healthy, quick hot food in a kit
• Make optimal use of GM production and
distribution networks
Q&A