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PILLSBURY

COOKIE
CHALLENGE WAC
By Abdul Rauf Jamro

PILLSBURY COOKIE CHALLENGE

Statement of the Problem:


Ivan Guillen, the marketing manager, at Pillsbury refrigerated baked goods (RBG) at General
Mills Canada Corporation has to formulate and execute a marketing strategy with a view to
improve the performance of this category. Pillsbury refrigerated baked goods (RBG) is facing the
stagnation of sales coupled with numerous problems. Some of the major problems are mentioned
as under.

Poor performance of the category since last two years.


Sales have turned stagnant since last two years (between 2004 and 2006).
Annual growth volume has remained low at approx 1% for past three years
Household penetration has significantly declined.
Despite being the most profitable segment in the past, contributing to 62% of RBGs unit
sales and 75% of the categories profits, its deteriorating performance currently, worries
Guillen the most.

Objective:
Given the importance of category for General Mills Canada Corporation (GMCC), Guillen needs
to understand the issues facing that category and he further needs to outline the way forward to
gain the same position.
Research Methodology used to identify the causes of the problems:

Various types of consumer research was conducted by the GMCC aimed at identifying the basic
differences between the US and Canada markets and to obtain the consumer insights of both the
markets.
Demographics, Attitudes, preferences
The research types are mentioned below:
1.
2.
3.
4.
5.
6.

Product trials with employees


Focus group
Concept tests
Evaluators
Creative testing
Packaging tests

Causes of the Problem:


The findings of the research suggested that research findings lead to certain consumer insights
which according to him are the basic causes of the problems that GMCC is experiencing.
Findings:
The different research methods executed by the GMCC as mentioned above lead to following
findings. These findings and the consumer insights will be used by the top management for
decision making process to arrive at some logical conclusions keeping in view the Marketing and
management research problem.
Key leanings:

Despite being the most profitable segment in the past, contributing to 62% of RBGs unit
sales and 75% of the categories profits, its current sales have turned stagnant and growth
rate remained just 1 % for last three years.
3

Scratch baking is dominant in Canada while refrigerated dough is dominant is US.


Convenience and taste are valued in both the US & Canada.
Canadian Kids have greater say in making purchase decisions.

Implications:

Marketing program was not effective mainly because it was not aligned with the

consumer insights.
The RBG product line was focusing mainly on busy mothers however their insight may

have changed by now.


US mothers prefer more quality than Canadians do.
Lapsed users also call RBG cookies more convenient.
Mothers enjoy backing however children prefer eating the cookies.
Pillsbury products are preferred on readymade products.

Actions:

Marketing mix need to revisit keeping in view the importance of consumer preferences.
Marketing program should be designed after doing extensive research.
RBG should improve the convenience and taste of the products.
Lapsed users should be targeted and should be retained those insights can be obtained

from research.
Product visibility, distribution, and display should be improved.

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