Post on 17-Dec-2015
Marketing 468: Marketing Strategy Term Project
Marketing 468
Marketing Strategy Term Project
Section 1 Team 3Dhananjay Agarwal
Nancy DennisJohn Pang
Peter WoodsonHiro Yamabe
November 19, 2001
Marketing 468: Marketing Strategy Term Project
Project OverviewPhase 1
Market Analysis
Strategy&
ConceptDevelopment
ConceptTesting
(Sales Forecast)
Phase 2 Phase 3
-Market Survey- Created web survey- 40 samples- Obtained customer needs and perceptions
-Sampled Products-Reviewed Nielsen Data-Reviewed Current Positioning
-In depth interview- 2 target segments- 10 samples- Refined our strategy and product concepts
-Strategy Meetings w/ C&P
-Market Survey- Posted on BBS- 16 samples- Usage- Price
-Sampled HeaterMeals
Marketing 468: Marketing Strategy Term Project
Most Important Needs0. 0 1. 0 2. 0 3. 0 4. 0 5. 0 6. 0 7. 0
Taste
Overall Quality
Convenience
Price
Nutritional Content
Portion Size
Fat Level
Thouroughness of cooking
Transportability
Heating Time
Sodium Level
N=40
Marketing 468: Marketing Strategy Term Project
Current Market Positioning
3.00
3.50
4.00
4.50
5.00
5.50
6.00
6.50
7.00
3.00 3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00
Convenience
Tas
te
Betty Crocker Bowl Appetit
Budget Gourmet
Campbells Soup-To-Go
Chef Boyardee
Healthy Choice
Kraft Mac & Cheese
Lean Cuisine
Maruchan
Michelina's
Nissin Cup-O-Noodles
Ragu
Stouffers
Uncle Ben's Rice Bowl
Weight Watchers
Bowl Appetit
Size = Price Perception
Can we make it tastier than
best of class?
Can we do both?
Can we make it more
convenient than best of
class?
Marketing 468: Marketing Strategy Term Project
Our Strategic Positioning
3.00
3.50
4.00
4.50
5.00
5.50
6.00
6.50
7.00
3.00 3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00
Convenience
Tas
te
Betty Crocker Bowl Appetit
Budget Gourmet
Campbells Soup-To-Go
Chef Boyardee
Healthy Choice
Kraft Mac & Cheese
Lean Cuisine
Maruchan
Michelina's
Nissin Cup-O-Noodles
Ragu
Stouffers
Uncle Ben's Rice Bowl
Weight Watchers
Bowl Appetit
EST.
New Product
3
4
1
Size = Price Perception
2
Convenience incr. with water1Convenience incr. with self heat2Taste perception incr. with food enhancement3Taste perception incr. with marketing4
Marketing 468: Marketing Strategy Term Project
Strategy
Strategic fit to GM• Prego Bake Sauce -- success of hyper-convenience, great taste & heat
• Progresso Soups – great tasting, hot, shelf-stable food
• Green Giant – great tasting, shelf-stable vegetables
Hyper-convenient great tasting, hot meals
Marketing 468: Marketing Strategy Term Project
Two Product Concepts
Self heat technology GM food expertise
Personal Chef
Heating Time
Fireside FeastTarget Customer
Size
Healthy
Price
Professional
$4
7 min
8-10 oz
Calories - med
Nutrition – med to high
$4
15 min
10-12 oz
Calories - high
Nutrition – med to low
Outdoor(Hunters/Fishermen)
Brand Family General MillsBetty Crocker
Fresh WaterFood Mix
Salt WaterMagnesium Chip
147°F 147°F
One Step to Hot Food in
Under 7 Minutes.
Top View Cutaway View
Personal Chef
Protein & CarbVeggies
Salt WaterMagnesium Chip
147°F 147°F
One Step to Hot Food in
Under 15 Minutes.
Top View Cutaway View
Fireside Feast
Marketing 468: Marketing Strategy Term Project
Tactics for Both ProductsIssue Action PlanPromotion
Need to show hyper-convenience
Need to show good tasting meal
TV ads, Magazines
BrandingIn store trial, TV ads
Process description on packagingNeed to show safety
In store trialsCo-branding with Green Giant & Evian
water
Need to build awareness Give away free at high traffic office areasPlace in end aisle
Distribution
Use existing channels: grocery, mass merch and c-storesEasily accessible
Take home out of equationDistribute via internet orders for delivery
to office desk. Sale of multipacks.
Marketing 468: Marketing Strategy Term Project
Source of Sales
Bowl Appetit• Use at home and work
Personal Chef• Use at work
Fireside Feast• Use outdoors
Hot Dogs
Bowl Appetit
Other Shelf Stable
FrozenSandwiches
Other Shelf Stable
Restaurants
Current Market
1) Low Cannibalization of Bowl Appetit 2) Switching Tactics
Marketing 468: Marketing Strategy Term Project
Personal Chef Sales Forecast
Certainties Centered on Means
0.00
100.00
200.00
300.00
400.00
Year 1
Year 2
Year 3
90%
50%
25%
10%
Trend Chart
Year 1 Year 2 Year 3PC Revenues (MM) $69 $134 $196Price $4.00 $3.90 $3.80Units (MM) 17 34 52Unit Growth Rate 100% 50%
Marketing 468: Marketing Strategy Term Project
Fireside Feast Sales Forecast
Certainties Centered on Means
0.00
150.00
300.00
450.00
600.00
Year 1
Year 2
Year 3
90%
50%
25%
10%
Trend Chart
Year 1 Year 2 Year 3FF Revenues (MM) $62 $120 $176Price $4.00 $3.90 $3.80Units (MM) 15 31 46Unit Growth Rate 100% 50%
Marketing 468: Marketing Strategy Term Project
Action Plan for Sustainability
• Enhanced food product:– New Flavors– Heatability
• Innovation in self-heating technology– Design patents
• Continued brand building• Market to new audiences
– construction, landscaping, agriculture, trucking, airlines
Continuous differentiation necessary to counter market forces.
Marketing 468: Marketing Strategy Term Project
Quotes from Real People“Don’t you think that’s the neatest thing – I could see using that a lot.”
(overheard speaking to other in-depth interviewee secretary after they both had completed their individual interviews)
“I would definitely try it!”
“This would be an attractive product, if the taste were good.”
“The biggest merit is that I would not have to buy a lunch! Restaurants and convenience stores are always crowded at lunch time.”
“Good because I don’t need to get up at work.”
“It would be great on the road.”
“I have to go to the kiosk to use the microwave at work, so I end up not using it (the microwave) that much.”
“I would buy it for camping to try it out, and if it’s good, then I would buy it a few times a month and keep bringing it for camping.”
“Right. I can just throw it in my pack quickly for a hot meal while fishing.”
Marketing 468: Marketing Strategy Term Project
Summary
• Create hyper-convenient product that leverages GM’s expertise with quality foods
• Introduce Personal Chef to working professional market
• Introduce Fireside Feast to outdoor market
• Grow total revenues by 50% per year.($420MM)
Marketing 468: Marketing Strategy Term Project
Surveys• 1st Web Survey
– Purpose: Better understand market needs and perceptions.– Process: Emailed message with URL to friends and family.
• Clearly not a fully representative sample, but this is a class exercise!– See http://survey.fuqua.duke.edu/cgi-bin/ssvws?surveysaid/course/marketng_361/team02/survey.htm
– See Appendix Q for survey results.
• In-Depth Interviews– Purpose: Better understand specifics of concept design and positioning.– Process: Sit down interviews with Fuqua secretaries and professional and hunting/fishing
friends.– See Appendix W for sample interview.
• 2nd Web Survey– Purpose: Get pricing and usage data for target market– Process: Posted messages on hunting/fishing bulletin boards, and emailed professionals.– See posting at http://www.huntingbbs.com/forum/topic.asp?TOPIC_ID=49015&FORUM_ID=18&CAT_ID=2&Topic_Title=Academic+Project&Forum_Title=Off+Season
– See survey at http://www.duke.edu/~psw2/personalchef/ or http://www.duke.edu/~psw2/soloheat/
– See Appendix Z for survey results.
Marketing 468: Marketing Strategy Term Project
Naming: Why these names?
• Personal Chef– Taste
– Quality
– Convenient
– Prepared for you
• Fireside Feast– Hot
– Hearty
– Convenience
– Taste
Marketing 468: Marketing Strategy Term Project
Revenue Forecast
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
Year 1 Year 2 Year 3
FF Revenues (MM)
PC Revenues (MM)
BA Revenues (MM)
Marketing 468: Marketing Strategy Term Project
RTE Meal Competitive Landscape
Substitutes:Short term: HighLong term: High
Barriers to Entry:Short Term: HighLong Term: Low
Buyer Power:Short Term: Low Long Term: High
Industry Rivalry: Short Term: LowLong Term: High
Supplier Power:Short Term: Big Long Term: Low
Marketing 468: Marketing Strategy Term Project
Competitor Reaction
Substitutes- Many forms of lunch or snacks are substitutes for Personal Chef, however our survey and interviews indicates that for Hunters/ Fishermen substitutes are ‘cold’ meals (e.g.., sandwiches), pre-packaged snack products (e.g.., granola bars), or foods that require a stove or fire to cook (e.g.., soups and hotdogs).
Barriers to Entry-Patents-Alternative technology to heat meals needs to be developed and manufactured-Distribution networks-Quality of food
Buyers- Depth interviews indicate that the initial thought of self-cooking may be thought to be unsafe, however when the consumer is assured of products safety, they believe the product would be extremely useful.
Rivals- when the Fireside Feast and Personal Chef hit the market, we anticipate that other competitors will enter the market – see next slide
SuppliersUnless General Mills chooses to purchase and manufacture the heating technology – there is the possibility of being ‘held-up’ by the supplier. In the long run, General Mills will need to vertically integrate to acquire the manufacturing of the technology.