General Mills
New Product Introduction
Marketing Plan
Locker Number 632
Section 202 Team 4
Jay Curran
James Gaskin
G.T. Hollett
Steve Holley
Kurt Knaub
Marty Wick
Process Outline
Concept
Gap
Creation
Analysis
Phase II
Concept
Concept
Creation
Evaluation
and
Phase III
Positioning
Positioning
Phase IV
Sales
Projections
}
• New Segments
• Brainstorming
• Consumer Feedback
• Potential Buyers
• Existing Concepts
• Concept Selection
• Consumer Focus
• Market Analysis
}
}
Evaluation
}
Phase I
•Attribute Importance
– Psychographics
• Packaging
• Market Influencers
• New Market Space
– Asset Compatibility
• Price
•Purchase Estimation
– Gap Analysis
• Marketing
• Revenue Projection
– Profitability
Successful
Product
Launch
Sales Projection Methodology
Summary View
Identification
and analysis of
comparable
launches
External
Factors
Review of
existing
markets and
market shares
Projections
Year 1
Anticipation
of competitor
and market
dynamics
Internal
Factors
Evaluation of
GM marketing
and
distribution
Year 2
Year 3
Sales Projections
Detailed View
Identification
of Potential
Buyer Segments
Identification
Of Direct
Competitors
(Market Analysis)
Market
Influencers
Revenues
(Units & Pricing)
Price
REVENUES
Brand
Strength
Total Potential Buyers
Competitors
Relative
Product
Type
Distribution
Power
“Correction Factors”
Competitor
and Market
Dynamics
Concept 1
Old El Paso: Fiesta Ench-a-lottas
• Mexican Food
• Convenience
• Kids Market
• “Fun” Food
Concept
Your kids will love these delicious
bites of flour tortillas, filled with meats
and cheeses and surrounded by Old
El Paso’s rich enchilada sauce.
These single-serve meals bring the
flavors of Mexico to your school or
home with the great taste you’ve
come to expect from Old El Paso.
Just pop them in the microwave and
enjoy your meal.
Product Positioning
Fiesta Ench-a-lottas
Ench-a-lotta’s packaging is similar to Chef
Boyardee’s. It will be microwave- ready after
the metal pop-top is removed.
Ench-a-lotta’s are targeted at children and
teens. The product will be placed in the
supermarket where microwave-ready kid’s
single-serving segments are found.
Old El Paso branding will be prominently
displayed to leverage the significant brand equity
already enjoyed in the Mexican food category.
Competitors include: Chef Boyardee, Kid’s
Kitchen, Ragu Express
Ench-a-lotta’s will be offered in a 7.5 oz size.
Placement
Packaging
Price
Ench-a-lottas will be priced
competitively with single serving Chef
Boyardee offerings, at $1.29 for a 7.5
oz. container.
Mktg.
Segment
The target market segment for Ench-a-lottas will be children
from the age of 5 to 15. Research and surveys show that
Mexican food is popular with kids.
The marketing campaign for Ench-alottas will use Old El Paso’s established
brand equity.
Advertising through print will
communicate the authentic Mexican
flavor as well as the ease of preparation.
Ench-a-lottas will be shown as fun and
tasty way to eat lunch at home or at
school.
Sales Projections
Fiesta Ench-a-lottas – Sales (Year 1)
Buyer
Segments
Market Share
Analysis
BASE SEGMENT
MARKET SHARE
Kids: 40,000,000
EZ Macaroni: 10 %
Kid Households: 20,000,000
Lunchables: 55%
Purchase
Calculation
675,000 HH
24,300,000
X
Chef Boyardee: 15%
Spaghettio’s: 5%
Percentage of Homes
Who Buy “Mexican”
(6 month time-frame)
45%
OLD EL PASO
17% Market Share of All
Mexican Foods
CONSUMPTION (monthly)
Repeat+
Repeat
Single
(0.34)
(0.34)
(0.34)
4+
2–4
0-2
TOTAL SEGMENT
MARKET SIZES
(0.45) x (20,000,000)
$ 50,000,000 - $150,000,000
3 Per Household / Month
7.5%
24,300,000 Bought
9,000,000 HH
Source: “Meat & prepared meals report, Mediamark Research Inc., 1994
“Meat & prepared meals report, Mediamark Research Inc., 1997
Revenue
(Year 1)
$1.29
$31,347,330
Sales Projections
Fiesta Ench-a-lottas – Sales (Year 2 and Year 3)
Buyer
Segments
Growth
9,000,000 HH
Market Share
Growth
(Responses)
Purchase
Calculation
(Sensitivity)
7.5%
Revenue
Growth
Year 2
675,000 HH
Growth (Year 2): 1.03 – 1.10
$34,000,000
Growth (Year 3): 1.03 – 1.10
CONSUMPTION (monthly)
• Growing Ethnic Influence
• Growing Cultural Influence
• Population Growth
4% - 10%
• Growth in Market (No response)
Repeat+
Repeat
Single
(0.20 – 0.40) (0.20–0.40) (0.20–0.40)
4+
2–4
0-2
$35,000,000
• Growth in Market (New Segment)
• Market Contraction (Price War)
• Market Contraction (Product Into)
Source: “Meat & prepared meals report, Mediamark Research Inc., 1994
“Meat & prepared meals report, Mediamark Research Inc., 1997
Year 3
2.6 – 3.4 Purchases
Sales Projections
Fiesta Ench-a-lottas – Sensitivity Analysis
80%
20%
Baseline
50%
$15,000
$10,000
$5,000
$0
20%
$25,000
$20,000
80%
$50,000
$45,000
$40,000
$35,000
$30,000
50%
Sales (Thousands)
Sales Projections – Sensitivity Analysis (Monte Carlo Simulation)
20%
1
Year
1
2
Year
2
Year3 3
Expected Case – Baseline Projection (mean – 50th percentile – projected sales)
Market Contraction Case – Pessimistic Growth Projection (20th percentile projection)
Growth Case – Optimistic Growth Projection (80th percentile projection)
Concept 2
Betty Crocker Single Bakes
•Cake Snack
•Convenience
•Indulgent
•Quality
Concept
Now it’s easier than ever to enjoy
fresh-baked Betty Crocker cakes.
Betty Crocker introduces Single
Cakes – quick bake treats that offer
you a wholesome reward with
minimum effort. Just pop a cake in
the microwave, watch it rise, then
spread on Betty Crocker’s delicious
icing or spread. It’s just like made
from scratch – but its ready
whenever and wherever you are!
Product Positioning
Betty Crocker Single Bakes
Betty Crocker Single Bakes will be offered in 3
packs. The product will contain a topping, a
utensil and a single serving cake. It will be
microwave ready after the top is taken off, and
the plastic cover for the bowl is pulled back.
Betty Crocker Single Bakes will be placed in the
snack aisle in the supermarket. Competitors include:
Sara Lee, Hostess, Otis Spunkemeyer
The Betty Crocker branding will be prominently
displayed to leverage it’s significant brand
equity.
Placement
Packaging
Price
Betty’s Single Bakes will be priced
competitively with snack alternatives
such as candy bars. The suggested
price point is $2.69 for the 3 pack
offering.
Mktg.
Segment
The marketing campaign for Single Bakes
will emphasize the wholesome quality and
flavor of the Betty Crocker products.
Single Bakes will provide the tastiness of
Betty’s best offerings with the ease and
convenience of a prepared food.
The target market for Betty Crocker’s Single Bakes is
working women who are looking for a better solution than a
candy bar between meals. Market research has shown that
this segment is seeking an alternative to “junk food” for
snacking.
Sales Projections
Betty Crocker Single Bakes – Sales (Year 1)
Buyer
Segments
Market Share
Analysis
BASE SEGMENT
MARKET SHARE
Workforce: 190,000,000
Nothing: 25 %
% Workforce (Women): 88,350,000
Candy: 40%
Purchase
Calculation
441,750 HH
19,613,700
X
Pretzels: 8%
Chips: 7%
Bring Lunch From Home
Popcorn: 5%
Average: 50%
Revenue
(Year 1)
CONSUMPTION (monthly)
Repeat+
Repeat
Single
(0.50)
(0.35)
(0.15)
4+
2–4
0-2
$ 0.90
TOTAL SEGMENT
(0.50) x (88,350,000)
44,175,000 HH
3.70 Per Household / Month
1%
19,613,700 Bought
$17,652,330
Sales Projections
Betty Crocker Single Bakes–Sales (Year 2-3)
Buyer
Segments
Growth
44,175,000 HH
Purchase
Calculation
(Sensitivity)
Market Share
Growth - Response
1%
Revenue
Growth
Year 2
441,175 HH
Growth (Year 2): 1.00 – 1.20
$25,000,000
Growth (Year 3): 1.00 – 1.20
CONSUMPTION (monthly)
• Growing Women Workforce
• Use as Dinner Dessert
1% - 3%
Repeat+
Repeat
Single
Year 3
(0.20–0.55) (0.15–0.35) (0.10–0.20)
• Growth in Market (No response)
4+
2–4
0-2
$35,000,000
•Market Contraction (Product Into)
1.55 – 4.00 Purchases
Sales Projections
Single Bakes – Sensitivity Analysis
Sales Projections – Sensitivity Analysis (Monte Carlo Simulation)
$50,000
$45,000
$35,000
$30,000
Baseline
$5,000
80%
50%
20%
$10,000
20%
$15,000
80%
$20,000
50%
$25,000
50%
Sales (Thousands)
$40,000
$0
1
Year
1
Year 22
Year 3
Expected Case – Baseline Projection (mean – 50th percentile – projected sales)
Market Contraction Case – Pessimistic Growth Projection (20th percentile projection)
Growth Case – Optimistic Growth Projection (80th percentile projection)
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