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Company Background
Financial History
Challenges
Quantitative and Qualitative Analysis
Alternative Solutions
Recommendation
Q&A

   

r CC is the second largest of the eneral

ills international divisions
r CC is a leader in the Canadian packaged
foods market

   

r RB is the fourth largest category in CC
r Pillsbury dominates 85% of RB
s market
share
r Pillsbury refrigerated cookie product line
generates 75% of the category
s profit

  
 
r ero volume growth for RB between 2004 &
2006
r 1% annual volume growth for RB for the last
3 years

 
 




r
r
r
r

Promotional
Product
Price
Place

c 





r Prior arket campaigns developed in US and
adapted to Canadian market failed to generate
the desired 5 7% annual growth for the RB
category

c




r Household penetration reduced to 24%
r ONLY 15% of Canadian customers surveyed
believed that the cookies were sized
appropriately

c 





r Average retail price is 63% higher than feature
price
r Only 32% of customers perceive value for the
price of the Pillsbury refrigerated cookie
product

c






r No challenges related to Place
Channels
Coverage
Assortment
Inventory
Transport
Locations

   

 



Canada

US

Difference

They are easy to make



4%

They are quick to make



4%

Can make them at the spur of the moment





0%

Easier than baking cookies from scratch





7%

ood Value for the Price

32%

31%

1%

For my own indulgence

30%

39%

-9%

   

 
i


Canada

US

Difference

The kids like to eat them

47%

37%

10%

As a special treat for the kids

42%

34%

8%

Fun thing to bake with the kids

42%

29%



The kids like to make them

42%

30%



Fun activity with the kids

41%

28%



28%

20%

8%

19%

15%

4%

y child(ren) requests them

Is an opportunity to teach the kids how to bake

   

 

  

Canada

US

Difference

Easier than baking cookies from scratch

59%

52%

7%

It's similar to homemade cookie dough

31%

36%

-5%

Is a high-quality cookie dough

29%

41%



Is like homemade cookie dough

28%

35%

-7%


 

 
r Easy, Quick, Practical, Affordable, and Pleasing
to Children
r Brings Smile, Feels ood to ake Difference
r Special: Sharing, Eating Cookie not Baking
r All Devoted others
r Love for Pillsbury : Little Secret



 
!
c


 
" 
 

 
Reasoning: Eye Level placement is ideal for the impulse buy.
c



akes Product ore

Accessible
r
ore noticeable for impulse
buy

ay Cost ore for Premium

Eye-Level Shelf-placement



 
!
  

cc



Reasoning: Cookie dough purchase is impulsive.
c
r Increases the opportunity
for impulse buy
r reater exposure to scratch
buyers


r Additional expense required
associated with location
r
ay not be feasible for
some retailers
r Increased inventory
expense for retailers



 
!


 #$  


Reasoning: Establishes a new channel for marketing brand while
maintaining the target involvement of children.
c
r Increase goodwill (CSR)
r Expands arket (Day-Care,
etc.)


r Additional Expense to
promote to schools
r Possible Push-back from
parents/teachers (nonhealthy product)



 
!
 
 
c   " 
%

Reasoning: To focus more on quality for mothers and attractive
packaging for kids.
c
r Appeals to the scratch users
on quality of the product
r Appeals to the kids to
associate Pillsbury as a fun
product


r Expense to License the
Characters, e.g. Tigger
r Possible Increase in unit
Price, Lower Sales



 
!



 &$

"



Reasoning: Use Stickers/Tokens/Codes to increase the
awareness, brand loyalty and attract customers with children
c
r Increase brand loyalty
r Use influence of children to
increase sales


r Additional expenses to run
the program



 
!



'
c" 
Reasoning: Kids play a larger role as purchase driver in
Canada than US.
c



r Potential higher volume of

sales due to influence of
children
r Establish brand loyalty

r Possibility of missing the

segment of target market
which is scratch users
r Negative media exposure
regarding childhood obesity
r Specialized product
development costs for
Canadian market alone



 
!



 '
 
c
Reasoning: To target scratch users.
c
r Quality ingredients are
more in line with made
from scratch cookies
r Higher profit margin
opportunity


r Higher price point
r Cannot replicate the user
experience of making a
cookie from scratch
r Development costs for
premium product for
Canadian market alone



 
!



 
   
Reasoning: To target scratch users.
c
r Increased customer value
perception
r Refrigerated cookie is just
like homemade
r Reduced time and effort
involved in baking
r Increased market share


r Large expense of the
advertisement development
r Cannot compete with
freshness or experience
of scratch cookies



  
r
r
r
r

Create Target arket Campaign

Restructure Product Placement
Restructure Packaging
Create a Rewards Program

M 
 
(  
r Television Ad Campaign
r Aimed at Untapped Scratch-Users Segment
61% of the Canadian arket
Scratch Taste= RB Taste




)#

"'
*

 



*
  )#


200,000  500,000





c 

2.99  4.99 per package


+ 
, 

"-$

66,890  100,200 packages

.


/

cc



r Eye Level Product Placement
r Easy Access for Impulse Buyer

c   
r Influential essage
r Cater to Target arket
Kids(Biggest rowth Opportunity)
others


 c 
r Catered to Children
r Creates Brand Awareness
r Sticky Customer

%
Thank you for your time!

e would like to welcome your

questions at this time.