Company - Duke University`s Fuqua School of Business

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Bowl Appetit!
New Product Strategy
Gina Forde (locker #51)
Greg Jones
Page Stull
Jennifer Steele
Alicia Tosi
Brandon Wingert
Mkting 468.202
Team #2
Agenda
Recommendations
Situation Analysis
Opportunity Assessment
New Product Strategy Implementation
New Product Concept Details
 Marketing Strategies and Execution

Competitive Response
Revenue Projections
Recommendations:
Portfolio Strategy
General Mills should build a portfolio of complementary but
incremental shelf-stable, single serve, offerings for their target market:
women needing a convenient meal for lunch.
Women Needing Convenient Lunch
At Home
Bowl Appetit!
Bowls
At Work
Niche
Mainstream
Lunch Break!
NaturaLunch
Fresh,
Mixable and
Filling
Organic and
Hearty
Recommendations:
New Product Strategy
Lunch Break! and NaturaLunch will fulfill working women’s need of a
portable lunch that is convenient to make, high quality (of ingredients
and perception), and a hearty, complete meal.
At Work
Mainstream
Lunch Break!
Fresh, Mixable and Filling
• Portable
• Separate ingredients to mix
• Green Giant brand to ensure high
quality
• e.g. Fettuccine Alfredo (with
Green Giant vegetables & chicken)
Niche
NaturaLunch
Organic and Hearty
• Portable
• All organic ingredients
• Cascadian Farm branding to
reinforce organic product
• e.g. Zesty Beans & Rice (all
natural)
Agenda
Recommendations
Situation Analysis
Opportunity Assessment
New Product Strategy Implementation
New Product Concept Details
 Marketing Strategies and Execution

Competitive Response
Revenue Projections
Situation Analysis:
Bowl Appetit! Category
Bowl Appetit! should be viewed as an emerging category because of
lack of store presence as well as its ill-defined competitive set
Single serve, shelf-stable does not have a “place”
yet in the grocery store (pasta? rice? potatoes? etc)
Wide range of potential competitors for Bowl
Appetit! in the consumers’ “consideration set”





Soups
Noodle Cups
Add Water Cups
Frozen Meals
Microwave multipacks
Situation Analysis:
Bowl Appetit! Consumer
The Bowl Appetit! consumer is found in several key lifestyle categories
– with minimal presence in the other segments
Key lifestyle segments for Bowl Appetit!:
(See Appendix for further detail)
 Young Singles

Childless Younger Couples

Establishes Families

Middle Aged Childless Couples
Source: Nielsen Panel Data
Situation Analysis:
Bowl Appetit! Competitors
The competitive set against which Bowl Appetit! competes is largely
determined by which lifestyle segment is being targeted
LIFESTYLE SEGMENT
(Where Bowl Appetite has above average index)
LS - Young Singles
LS - Childless Younger Couples
LS - Matr Fam/Liv Comf-Aff
LS - Established Families
LS - Middle Aged Childless Couples
Source: Nielsen Panel Data
Key Competitors
Fantastic; Uncle Ben's,
Healthy Choice
Fantastic; Uncle Ben's,
Healthy Choice
Kraft Easy Mac, Fantastic,
Maruchan,
Kraft Easy Mac, Maruchan,
Chef Boyardee, Uncle
Bens, Stouffers
Fantastic, Spice Hunter,
Uncle Bens, Stouffers
Situation Analysis:
Category Assessment
One potential void with no dominant player is in satisfying, pre-packaged lunch
offerings for working women – thus an incremental opportunity for General Mills.
Market Segments
Offering-Market Matrix
Kids
Working Women
At-Home Women
Various snack
brands
Manchuran Instant
Noodles
Raman Noodles
Various snack
brands
Bowl Appetit!
Ragu Express
Easy Mac
Frito-Lay (other
junk food products)
Manchuran Instant
Noodles
Raman Noodles
Easy Mac
Chef-Boyardee
Instant Noodles
NA – majority of
men believe prepackaged meals not
to be filling and are
not willing to try
them
?
Dinner Kraft Easy Mac
Hamburger Helper,
Pizza (frozen &
take-out)
Uncle Ben’s Bowls
Frozen dinners
Hamburger Helper
Uncle Ben’s Bowls
Frozen dinners
Hamburger Helper
Relatively High
Medium
Snack
Meal Occasion
Men
Lunch
Hamburger Helper
Volume Potential
Saturated
Source: Focus Groups, Store Audit (see Appendix) & Panel Data
Low
Frozen Meals
Yogurt
Bowl Appetit!
Situation Analysis:
Defining the Consumer
Several key characteristics define this customer segment of women and
make it a viable and distinct target.
60% of women are employed outside the home
Average time spent prepping for a meal has been
decreasing (currently 30 minutes and projected to
fall to 15 minutes)
Convenience is top priority for working women
Source: Food Industry Trends, Thomas Murphy, Penn State University
Situation Analysis:
Defining the Consumer
Understanding the decision-making process of the target consumer is
crucial in the development of the product concept.
Need Recognition
Triggered Internally: Stressed for time, nutrition, good taste
Triggered Externally: TV ads, shelf placement, in-store promos
Information Search
Active or Passive? Low involvement decision – many lunch alternatives,
little time/thought/$ given to lunch decision
Evaluate Alternatives
How do professional women, young mothers weigh costs and
benefits of lunch alternatives?
Purchase Decision
Which alternative provides the most value in terms of benefits
desired?
Post-purchase Decisions
Low loyalty due to many lunch choices. Taste, packaging, ease of
preparation are key to repeat purchases.
Situation Analysis:
Consumer Insights
Focus group results provide a deeper understanding into the needs of the
consumer with respect to their current lunch offerings.
KEY LEARNING
SUPPORT
Workday is busy. Little time to eat lunch.
“I like to take a break from my busy day and step outside for 20
minutes to eat my lunch.”
People eat a variety of things for lunch – from candy
bars to leftovers.
“I would never wake up and make anything that morning”
Looking for convenience – want quick lunch.
“Often, I just eat whatever I can find.”
Consumer feel that prepared foods tend to be less
healthy and not fulfilling.
“None of these items are healthy”
“I like to add a can of vegetables to make it more filling.”
Looking for nutritious alternatives for lunch.
“I am looking for more options.”
Situation Analysis:
Consumer Insights
Our focus groups also reveal that current competitive products do not fulfill
the current needs of our target consumer.
KEY LEARNING
SUPPORT
Fantastic most well received of 4 products shown.
“I like to see the organic label..that way I know its healthy”
Ranked highest for quality, convenience, taste and portability
Not satisfying for everyone
Liked creative flavor names and packaging
Uncle Ben’s had mixed reactions.
Liked packaging and brightness
Brand name recognizable and trusted
Price point too high for some
Bowl Appetit seemed more like a side dish to
consumers.
Consumers did not feel like it was enough for lunch
Its Pasta Anytime least well received
“Too bulky” to bring to work
Overall these products did not seem that different
with EXCEPTION of Fantastic.
* Shown Uncle Ben’s, Bowl Appetit, Fantastic, and Its Pasta Anytime
Situation Analysis:
Consumer Needs
In-store intercepts and focus groups reveal working women’s desire for a lunch
that is filling (complete meal) as well highly portable.
Opportunity
Higher level of portability
Chef
Boyardee
Maruchan
Noodles
Less
Filling
Kraft Easy
Mac
More
Filling
Uncle
Ben’s
Healthy
Choice
Pasta Anytime
Lower level of portability
Situation Analysis:
Consumer Needs
In-store intercepts and focus groups also reveal working women have inadequate
offerings that are both good tasting (i.e. fresh) and healthy.
Opportunity
High Level of Health
Fantastic
Healthy
Choice
Easy
Mac
Poor Taste (perception)
Good Taste (perception)
Dinty
Moore
Bowl
Appetit
Chef Boy
Cups
Low Level of Health
Maruchan/
Nissin
Its Pasta
Anytime
Uncle Ben’s
Situation Analysis:
Consumer Needs
The consumer’s perception of freshness is related to the type of
distribution (as noted in focus groups and consumer research).
PRODUCE
MOST FRESH
Dry meals are currently not
perceived as fresh – thus
creating a market
CANNED
opportunity
REFRIGERATED
It will be a hurdle to
convince the consumer that
FROZEN
a product can be both dry
LEAST FRESH
DRY
(shelf-stable) and fresh
Situation Analysis:
Consumer Needs
Research also reveals that a significant portion of working women are
concerned about having healthy offerings for the lunch occasion.
There is clearly room for improvement on
healthiness of current portable products.
Consumers are especially aware of high sodium
content in prepared foods.
PER SERVING NUTRITIONAL INFORMATION
Fat
Sodium
grams Calories
Fantastic
Healthy Choice Duos
Easy Mac
Dinty Moore Cups
Bowl Appetite
Its Pasta Anytime
Maruchan
Uncle Ben's
510
600
570
890
940
870
1190
1500
1
5
7
6
8
7
16
5
180
200
250
200
325
490
340
350
Key Consumer Insights:
Summary
Insights
Opportunities
Target market wants more filling and
complete meal option for lunch.
Offer heartier meal (including meat and
can of veggies) for lunch
Portability (bulkiness) important for
those bringing lunch to work.
Connote portability with bag handle.
Minimize package size/weight.
Perception of freshness and good taste is
low for dry (ie shelf-stable) goods.
Enhance perception of freshness and taste
with co-brands & use of canned goods.
Consumers care about eating healthy –
current products do not meet this need.
Offer organic/natural product line in shelfstable form
Consumers are wary of shelf-stable meat
Utilize a branded form of shelf-stable meat
(ie Swansons canned chicken)
Consumers like the ability to mix their
own meals due to the perceived higher
level of control
Offer separate ingredients that consumers
will combine themselves
Source: Focus Groups, Store Audit (see Appendix) & Panel Data
Situation Analysis:
Consumer/Retailer Trends
Grocery and industry trends indicate that the natural and organic
product market is an emerging growth category
• Overall grocery sales have has grown 1-2%
annually since 1990; however, …
• Natural food product segment has more than
quintupled in size from $2 billion in 1993 to $15.6
billion in 2000.
• Expected growth rate: 15.6% annually from 1999
to 2004
Source: Homegrown Natural Foods website
Situation Analysis:
Consumer/Retailer Trends
Organic/Natural Product Trends continued:
• Almost 1/3 of the U.S. population currently buys
organically grown foods (Source: Organic Trade Association)
• In 2000, consumer sales of organic products in all
retail channels was $5.6 billion (up 20% over
1999)
• Of 1000 surveyed, 54% buy natural/organic
products at least once a month
Source: Organic Trade Association website, FMI website
Situation Analysis:
Company Evaluation
General Mills has a strong portfolio of trusted brands that can be
leveraged to successfully expand this category to a new target consumer.
Strengths






Brand equities (Betty Crocker, Green Giant, Yoplait);
Betty Crocker accounts for 25% of company profits
Established distribution channels (grocery, mass)
Strong presence in multiple retail categories (cereal,
yogurt, baked goods)
Technological capabilities in dry goods can be transferred
across products and divisions
Customer knowledge
Low cost producers based on highly automated and
flexible processes
Situation Analysis:
Company Evaluation
General Mills has a few challenges that should be considered when
determining a new product strategy.
Weaknesses

Lack of strong presence in frozen category

Mainstream image; potentially difficult transition
into exotic/ethnic/innovative categories.

Recent acquisition of Pillsbury may divert some
focus and resources
Situation Analysis:
Company Evaluation
General Mills:
Internal Capability Analysis
An internal analysis reveals the capability for further growth.
Marketing
1. Reputation (of Betty Crocker)
2. Awareness (of Bowl Appetit)
3. Market Share
4. Distribution
5. Innovation
6. Category Variety (for Betty Crocker)
7. Product Variety (for Bowl Appetit)
8. Promo Capability
Finance
1. Cash Flow
2. Debt Position
3. Acquisition Ability
Operations
1. Capacity
2. Ability to accommodate innovation
3. Quality of Product
Organization
1. Employee Morale
2. Decentralized decision-making
3. Creativity
Performance
Strong
Neutral
Weak
X
X
X
X
X
X
X
X
X
High
X
X
Importance
Medium
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Low
Agenda
Recommendations
Situation Analysis
Opportunity Assessment
New Product Strategy Implementation
New Product Concept Details
 Marketing Strategies and Execution

Competitive Response
Revenue Projections
Opportunity Assessment #1:
Mainstream Market
There is an opportunity to better satisfy the mainstream market of
working women with a convenient lunch.
Provide convenient, complete lunch option for
working women
Leverage Green Giant name to signal quality and
freshness in a relatively new shelf-stable category
Opportunity Assessment #2:
Niche Market
Because the organic market is becoming more mainstream, it is an
attractive market that General Mills should pursue.
Natural/organic food industry is highly fragmented
Big players (e.g. Kraft, Kellogg’s, General Mills)
exploring organic market potential
Leverage Cascadian Farm brand. Cascadian Farm
is #1or #2 in nine different categories. Research
shows brand is expandable in other categories
because of strong credibility with natural/organic
shoppers. (Steve Sanger, CEO General Mills)
Agenda
Recommendations
Situation Analysis
Opportunity Assessment
New Product Strategy Implementation
New Product Concept Details
 Marketing Strategies and Execution

Competitive Response
Revenue Projections
Product Concept #1:
Lunch Break! by Green Giant
Product Concept Description: Lunch Break! by Green Giant.
Introducing Lunch Break! from Green Giant. Finally, a fresher, and more convenient option for lunch that
tastes great. And its portable and shelf stable so there is no need to freeze or refrigerate.
Lunch Break! includes a pasta bowl to which you add fresh Green Giant vegetables, Swanson chicken,
seasonings and chicken broth – all included in the package! You just mix together and microwave for
3-4 minutes and you have a great meal ready when you are!
We know you have busy lives and lunch is often rushed. Green Giant Lunch Break! is a great lunch
option to take to work or even to eat at home… and it is offered in a variety of flavors such as Pasta
Primavera. Now when you go to the grocery store you will know what to buy for lunch!
Lunch Break! from Green Giant
“Ready when you are”
Product Concept #1:
Lunch Break! Details
Branding:


Green Giant brand signals freshness and quality; more relevant than
Betty Crocker
Co-branding with meat manufacturer


Swanson chicken and tuna
Branded chicken reassures consumers of quality of shelf-stable meat
Packaging:





Package resembles lunch bag
Hard and durable (box vs. bag material)
Handle on package to communicate portability
Size of package must be minimized – consumers do not want to bring
bulky package to work
Clear openings allow consumers to see branded meat and can of fresh
Green Giant Vegetables
Product Concept #1:
Lunch Break! Details
Ingredients:



Pasta/rice bowl with seasonings
Swanson can of meat (chicken or tuna)
Can of Green Giant vegetables
Price:



Retail price point of $3.50
Consumers willing to pay more for complete meal (per focus group)
Higher costs relative to Bowl Appetit!
Positioning/Target:




Women at work
Fresh and portable
Satisfying – a complete lunch
Mixable ingredients
Product Concept #1:
Lunch Break! Details
4 SKUs/Flavor ideas:

Pasta Primavera

Fettuccine Alfredo with Chicken

Rice with chicken and vegetables

Mexican Rice
Product Concept #1:
Reaction to Lunch Break!
Focus group reaction to the Lunch Break! concept lends credence to the
idea that this is a viable product idea for working women
KEY LEARNING
SUPPORT
Lunch Break had positive feedback
Ability to add fresh veggies and chicken
Choose to mix or eat separately
“You can eat it separately or together.”
Packaging (bag with handle) was liked by
consumers.
“I like the handle.”
Prefer to frozen
“I forgot it was in my bag. I came back and it had melted in my
bag.”
Consumers want to see brand name associated with
it.
“Green Giant and Swanson’s mean quality to me. I know what I
am getting.”
Kit idea was less well received. The main concern
was whether or not what was included matched
their tastes. – Idea not pursued further.
“ It dictated to me what I will be eating”
Execution:
Lunch Break! Promotional Strategy
Promotional strategy addresses all three stages of the target consumer
purchase pattern.
Awareness


Catalina coupons/announcement with Green Giant purchases (prior and
during launch)
Introduction of Ms. Green Giant
Gain Trial Purchase


Smart Source coupons at point of purchase on shelf
Catalina coupon triggered off “competitive purchase” (Uncle Ben’s)
Repeat Purchase

Advertising



Magazine: Working Women, People
Television: Prime time news
Catalina coupon triggered off Lunch Break purchase
Execution:
Lunch Break! Launch Tactics
Launch tactics will reflect a product concept that is directed toward the
mainstream consumer & leverage General Mills’ distribution capabilities.
Distribution

At least 90% ACV for grocery retailers selling
>$2MM
Store Placement

Prepared Meal section (if applicable) or
Rice/Pasta aisle
Product Concept #2:
Cascadian Farm NaturaLunch
Concept Description: Cascadian Farms NaturaLunch
Introducing NaturaLunch from Cascadian Farms. Made with organic seasonings, pastas or
rice, this is a ready-to-eat shelf stable meal option that requires only a microwave.
NaturaLunch is a great lunch option for work or home. Now you can eat healthy anyplace,
anytime. Plus there is nothing processed or artificial about this product – and it has only
½ the sodium of other prepared meals! NaturaLunch also has the quality and taste you
desire. No need to freeze or refrigerate – just add water and microwave for 3-4 minutes.
“NaturaLunch – Taking care of you.”
Product Concept #2:
NaturaLunch Details
Branding:

Cascadian Farm branding – current organic equity
Packaging:



Baglike package (like Lunch Break!) with handle –
operational efficiencies from using same package
Size of package minimized to increase portability
Bowl inside – same bowl as Bowl Appetit! (leverage
operational efficiencies)
Product Concept #2:
NaturaLunch Details
Ingredients:


Bowl inside with everything included (like Bowl
Appetit!)
Sodium content minimized (no more than 600 mg)
Price: $3.25

Premium offering over similar non-organic offerings
(such as Bowl Appetit!)
Positioning/Target:

Women who work and buy organic
Product Concept #2:
NaturaLunch Details
Flavor ideas: Use current Cascadian Farms frozen entrée offerings as
starting point for SKU offerings
6 SKUS:

Zesty Beans and Rice

Passion Pasta Primavera

Tantalizing Teriyaki Rice and Vegetables

Juicy Japanese Noodles and Vegetables

Cous Cous with Tomato & Basil Sauce

Ravishing Ravioli with Lima Beans
Product Concept #2:
Reaction to NaturaLunch
Focus Groups confirm that natural/organic products are in high demand
making NaturaLunch a desirable alternative to current offerings.
KEY LEARNING
SUPPORT
The word organic is a signal of health to consumers
“If you put the word organic on it, I would be even more likely to
try it.”
Positive overall reaction to concept
“I would choose both of these [Lunch Break & NaturaLunch]
before any of these options [Fantastic!, Bowl Appetit!, Uncle Ben’s,
and Pasta Anytime]”
Liked handle/portability aspect.
Execution:
NaturaLunch Promotional Strategy
Promotional strategy addresses all three stages of the target consumer
within the niche market purchasing pattern.
Awareness

Catalina coupons/announcement with Cascadian Farm purchases
(prior and during launch)
Gain Trial Purchase



Grass Roots ad campaign
Smart Source coupons at point of purchase on shelf
Catalina coupons triggered off “competitive” product purchase
(Fantastic, Healthy Choice, Uncle Ben’s)
Repeat Purchase

Advertising



Magazine: Preventative Health, Working Women, People
Television: Prime time news
Catalina coupon triggered off NaturaLunch purchase
Execution:
NaturaLunch Launch Tactics
Tactics to launch niche product concept will leverage mass grocery
capability of General Mills and also capabilities of Cascadian Farm.
Distribution

Target natural food stores and grocery retailers
with organic/specialty food sections
Store Placement
Organic food section in major grocery stores
 In organic food stores, place near soup cups, etc

Agenda
Recommendations
Situation Analysis
Opportunity Assessment
New Product Strategy Implementation
New Product Concept Details
 Marketing Strategies and Execution

Competitive Response
Revenue Projections
Competitive Response:
Anticipating & Pre-empting
Potential early entrants may be those that have strengths in both frozen
and shelf-stable. Consumers will trust the brand (due to brand
recognition) and retailer acceptance is more likely.
ConAgra


Has technology to complete in pre-packaged meals in both frozen and
shelf stable
Dominant in healthy, frozen category (“Healthy Choice”); potential to
cross over to shelf stable
Kraft

Presence in shelf-stable under “Its Pasta Anytime” brand. This newly
acquired brand has a high potential for expansion in shelf-stable
Private Label

Fastest growing in frozen and dry grocery. As more branded players
expand shelf-stable category, technologies become easier for private
label to adopt and enter the market
Competitive Response:
Retaining and growing market share
Category success will be contingent on continuing to understand the
consumer and their evolving needs within this emerging category
Line extensions to support General Mills’ 1st mover
advantage

Rice bowl in LunchBreak!

Curry Peanut Fry in NaturaLunch
Innovation

Reduction in preservatives/sodium

Add more protein and other minerals important to target
such as calcium and folic acid
Agenda
Recommendations
Situation Analysis
Opportunity Assessment
New Product Strategy Implementation
New Product Concept Details
 Marketing Strategies and Execution

Competitive Response
Revenue Projections
Revenue Projections:
3 Year Summary
Because these two products serve different consumer markets the crossover is minimized, resulting in a projected total 3-year revenue of
approximately $250MM.
Lunch Break
New consumer Purchases of Lunch Break
Repeat Purchases of Lunch Break
Cannibalization of Bowl Appetit Revenue
Size of Total Market
Lunch Break's Market Share
TOTAL
$
$
$
Year 1
8,669,289
46,814,162
(5,453,217)
$
$
$
Year 2
7,841,372
65,867,526
(5,453,217)
Year 3
$
$
50,030,234
$
$
Year 1
2,656,518
4,781,732
$
68,255,681
$
$
Year 2
2,869,039
9,037,474
$
200,000,000
43%
86,000,000
Naturalunch
New consumer Purchases of Naturalunch
Repeat Purchases of Naturalunch
Size of Total Market
Naturalunch's's Market Share
TOTAL
Data gathered from US Census Bureau & Food Marketing Institute
Year 3
$
$
7,438,250
$
11,906,513
$
100,000,000
20%
20,000,000
Revenue Projections:
General Assumptions
Year 1

There will be no direct competition
Year 2

Competition will come into this market

Demand will be further stimulated due to category
expansion, but we will have to share this demand
Year 3

Market will be in equilibrium
Revenue Projections:
LunchBreak! Data Details
Year 1
87,551,599
58.94%
51,602,912
48%
24,769,398
10%
30%
1.5
# of women (18<AGE<65)
# of working women( AGE > 16)
# of working women
% households earning more than $45K
# households earning more than $45K
% who try Lunch Break
% that repeat purchase
Times to repeat per month
Size of Total Market
Share of Market
Price
New consumer Purchases of Lunch Break
Repeat Purchases of Lunch Break
Cannibalization of Bowl Appetit Revenue
Size of Total Market
Lunch Break's Market Share
TOTAL
Year 2
87,989,357.00
58.94%
51,860,927
48%
24,893,245
9%
35%
2.00
$3.50
$
$
$
Year 1
8,669,289
46,814,162
(5,453,217)
Year 3
88,429,303.78
58.94%
52,120,232
48%
25,017,711
200,000,000
43%
$3.50
$3.50
$
$
$
Year 2
7,841,372
65,867,526
(5,453,217)
Year 3
$
$
50,030,234
$
68,255,681
$
200,000,000
43%
86,000,000
Revenue Projections:
LunchBreak! Assumptions
Year 1



10% of our target market will try the product
30% will become repeat purchasers
Repeat purchasers will buy on average 1.5 units per month
Year 2



New competition will continue to stir demand bringing in new samplers
Smaller percentage will repeat
Now, repeat purchasers are more loyal (2units/month)
Year 3


Market is now mature and in equilibrium
Due to first mover advantage and strong brand equity, Lunch Break is #1
player in 3 player market (Market share = 44%)
Revenue Projections:
NaturaLunch Data Details
Year 1
87,551,599
58.94%
51,602,912
48%
24,769,398
33%
8,173,901
10%
20%
0.75
# of women (18<Age<65)
# of working women( AGE > 16)
# of working women
% households earning more than $45K
# households earning more than $45K
% who purchase natural/organic
# that purchase natural/organic
% who try Naturalunch
% that repeat purchase
Times to repeat per month
Size of Total Market
Share of Market
Price
New consumer Purchases of Naturalunch
Repeat Purchases of Naturalunch
Size of Total Market
Naturalunch's's Market Share
TOTAL
$
$
Year 2
87,989,357.00
58.94%
51,860,927
48%
24,893,245
Year 3
88,429,303.78
58.94%
52,120,232
48%
25,017,711
9,808,682
9%
35%
0.75
11,770,418
$3.25
$3.25
Year 1
2,656,518
4,781,732
Year 2
2,869,039
9,037,474
$
$
350,000,000
43%
$3.25
Year 3
$
$
7,438,250
$
11,906,513
$
100,000,000
20%
20,000,000
Revenue Projections:
NaturaLunch Assumptions
Year 1




33% of working women are willing to try natural/organic product
10% of these will try NaturaLunch
20% will become repeat buyers
Repeat buyers will purchase .75 units/month on average
Year 2


There will be slightly fewer new people trying NaturaLunch
A higher percentage will become repeat purchasers
Year 3

Market will be more mature

NaturaLunch can hold ~20% of a dynamically growing market
APPENDIX
Appendix:
Consumer Segment Analysis
CHART INDICATES WHERE INDEX IS >120 ONLY
LS Young
Singles
BETTY CROCKER BOWL
APPETIT! - RICE MIXES
Above
average
BETTY CROCKER BOWL
APPETIT! - DRY DIN PA
KRAFT EASY MAC - DRY DIN
PASTA
Above
average
LS Childless
Younger LS - New
Couples Families
Above
average
INSTANT MEALS
KNORR - INSTANT MEALS
Above
average
Above
average
LS Middle
Aged
Childless
Couples
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
CHEF BOYARDEE MW
MEALS - MACARONI PRODS
Above
average
Above
average
Above
average
LS Empty
Nesters
LS LS Empty
Empty
Nest/Poor- Nest/Liv LS - Older
Get By
Comf-Aff Singles
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
THE SPICE HUNTER INSTANT MEALS
HORMEL MICRO CUP - STEW
BEEF SS
CHEF BOYARDEE MW
MEALS - ENT SS
CHEF BOYARDEE MW
MEALS - STEW BEEF SS
CHEF BOYARDEE MW
MEALS - RAVIOLI CAN
CHEF BOYARDEE MW
MEALS - SPAGHETTI CAN
CHEF BOYARDEE MW
MEALS - LASAGNA CAN
UNCLE BEN'S NOODLE
BOWL - ENT MEAT 1 FD
UNCLE BEN'S RICE BOWL ENT MEAT 1 FD FR
UNCLE BEN'S NOODLE
BOWL - ENT POULTRY 1
UNCLE BEN'S RICE BOWL ENT POULTRY 1 FD
LS Middle
Aged
Singles
Above
average
Above
average
MARUCHAN INSTANT LUNCH
- INSTANT MEALS
Above
FANTASTIC - INSTANT
average
MEALS
LS LS LS - Matr LS - Matr Establish
ed
Maturing Fam/Poor- Fam/Liv
Families
Get By Comf-Aff Families
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Appendix:
Consumer Segment Analysis
UNCLE BEN'S NOODLE
BOWL - ENT ORIENTAL 1
UNCLE BEN'S RICE BOWL ENT ORIENTAL 1 F
UNCLE BEN'S PASTA BOWL ENT ITAL 1 FD F
UNCLE BEN'S MEXICAN
STYLE BOWL - ENT MEX
UNCLE BEN'S RICE BOWL ENT REM 1 FD FRZ
HEALTHY CHOICE BOWLS ENT MEAT 1 FD FRZ
HEALTHY CHOICE BOWLS ENT POULTRY 1 FD
HEALTHY CHOICE BOWLS ENT ORIENTAL 1 FD
HEALTHY CHOICE BOWLS ENT ITAL 1 FD FRZ
HEALTHY CHOICE BOWLS ENT MEX 1 FD FRZ
HEALTHY CHOICE BOWLS ENT SEAFD 1 FD FR
HEALTHY CHOICE BOWLS SOUP FRZ REF
STOUFFER'S - ENT SEAFD 2
FD FRZ
STOUFFER'S - ENT SEAFD 2
FD FRZ
STOUFFER'S - ENT MEAT 2
FD FRZ
STOUFFER'S - ENT POULTRY
2 FD FRZ
STOUFFER'S - ENT ITAL 2 FD
FRZ
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
STOUFFER'S - POT PIES FRZ
STOUFFER'S - ENT MEAT 1
FD FRZ
STOUFFER'S - ENT ITAL 1 FD
FRZ
STOUFFER'S - ENT MEX 1 FD
FRZ
STOUFFER'S - ENT REM 1 FD
FRZ
STOUFFER'S - ENT SEAFD 1
FD FRZ
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Above
average
Appendix:
Retailer Audit Results
STORE AUDIT OF SELECTED BRANDS
Category
Brand
# of
SKUS
$ Volume (52
week)
Unit Vol (52
week)
Avg
Prep Time
Price/Unit Ounces (minutes)
Other
Instructions
Aisle Detail
Shelf Location
Noodle Cups
Maruchan
6
$97,832,626
237,348,850
$0.41
14
3
Add boiling
water
With soups
middle
Add Water
Cups
Fantastic
9+ (nonsoups)
$1,075,042
861,588
$1.25
1.7
7-8
Add Boiling
water and steep Organic section
for 7-8 minutes if applicable
middle
Microwave
Multipacks
4
Add 2/3 cup
water to mac;
micro; add
cheese
Add 1/2 cup
water, micro,
add sauce.
With Mac &
Cheese
Middle to bottom
Pasta/sauce
aisle
Bottom
Kraft EZ Mac
1
$51,900,424
18,528,660
$2.80
Ragu Express
3
$7,103,858
2,339,774
$3.04
8.7
3.5
$178,776,717
$10,169,908
55,528,668
4,042,240
$3.22
$2.52
12
5
Micro for 5, let
stand 1 minute Frozen section
$3,861,818
590,523
$6.55
10
Microwave 10
min
$132,968,857
61,704,714
$2.40
Frozen
Uncle Bens (Noodle,
Pasta, Rice Bowls)
Uncle Bens Mini Bowls
Uncle Bens Super Bowls
Healthy Choice (Solos &
Bowls)
Rice 10;
Noodle 4; Pasta 5
4
3
Top to middle
Other
Bowl Appetit
It's Pasta Anytime
Chef Boyardee
10
6
6
$46,624,108
$34,713,860
$57,622,352
33,002,891
12,799,467
58,557,916
Varies; all SKUS
together in some
Add water and stores,
5 - rice; 3- microwave 3 - 5 separated by
Varies; packaged
potatoes min
type in others
dinner aisle
$1.41
$2.71
$0.98
15.25
Pour pasta into In pasta/sauce
tray, then sauce aisle. Between
2-3 minutes - microwave.
pastas/sauces
Middle to bottom
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