Pillsbury Cookie Challenge

Executive Summary

Ivan Guillen, the marketing manager of the refrigerated baked goods (RBG) category at General Mills Canada Corporation (GMCC) was faced with the challenge of developing a strategy that would lead to improved business performance in the RBG category. Through cookies usage and attitude studies, GMCC discovered the differences between the Canadian and US markets that could be leveraged to unlock growth in Canada.

Pillsbury RBG’s target consumer is a mother in her mid-30s to 40s who leads an active and busy lifestyle with her family.

There are 4 alternatives to their current marketing strategy:

1. Keep the status quo

2. Focus marketing efforts on children

3. Focus marketing efforts on fathers

4. Create a marketing strategy specifically for Canadian consumers

Alternatives 2 and 3 are recommended as the marketing strategy to improve the refrigerated cookie segment’s performance. Research has indicated that children are the main drivers to Canadian cookie sales. Thus, marketing to children would help drive these sales as they influence their parents’ purchasing decisions and can be part of a long-term marketing strategy. These children will then grow into consumers with purchasing power and have positive experiences from their childhood related to the Pillsbury brand. In turn, this can help maintain sales for years to come as they become parents themselves.

If the recommendations are not successful then GMCC should revert back to leveraging marketing initiatives in the US to save on costs. More in depth studies of behaviours and attitudes will need to be undertaken if this recommendation turns out to be unsuccessful. They could promote brand awareness through other methods such as issuing coupons and using in-store sales promotions.

Problem Statements

Pillsbury’s largest product line, Pillsbury refrigerated baked goods (RBG) has not been performing well in the last two years. The volume growth in RBG has been flat at 1% between 2004 and 2006, and household penetration has fallen to 24%, a 5-year low. In addition, this division lacks a Canadian marketing plan as their market research has revealed gaps in consumer behaviour between the United States and Canada.

Company Objectives

The company’s objective is to achieve a 5-7% annual growth in the RBG category by focusing on their refrigerated cookie product line, which represents 62% of RBG unit sales and over 75% of RBG’s profits. They plan to do this by increasing purchase frequency and/or market penetration of