Pillsbury Cookie Challenge - Case Study Example

Case Study Analysis of Pillsbury Cookie Challenge THESIS STATEMENT The purpose of this thesis statement is to analyze the case study i.e. ‘Pillsbury Cookie Challenge’ and recommended marketing strategies essential for improving its performance. 1. THE KEY CHALLENGES THAT IVAN GUILLEN FACES IN HIS ROLE AS THE MARKETING MANAGER OF THE RBG BUSINESS Ivan Guillen in his role as the marketing manager of RBG faced significant challenges. Primarily he faced the challenges of developing a strategy that would lead to the ultimate improvement in the business performance of his category. The key challenges further included the poor performance of RBG over the past few years. Correspondingly, the volume growth rate of the company has dramatically fallen and at the same time household penetration has also dropped to five year low. It is crucial for Ivan to understand these challenges carefully and find out possible solution for profitable growth of the business. Moreover, it would be vital for Ivan to conduct marketing research for ascertaining the likely variables affecting the overall performance of the business. The identification of variables affecting the business performance will facilitate Ivan to address the areas that would be requiring more concentrated effort (Johnson and Mauro, “Pillsbury Cookie Challenge”). 2. THE KEY CONSUMER INSIGHTS AVAILABLE TO THE MARKETING TEAM AND BUSINESS CHALLENGES THAT CAN BE ADDRESSED BASED ON THE CONSUMER INSIGHTS AVAILABLE The key consumer’s insights available to the marketing team postulate that consumers were familiar with Pillsbury brands and products but did not understand how they were relevant in the present busy and hectic life. Consumers were changing their buying behavior due the economic conditions as well as due to the growing craze related to health. Moreover, it has been ascertained that consumers were becoming more sensitive and were spending less money on their purchase. Such changes occurring amid the customers has dramatically influence the growth prospects of RBG. At the same time, lapsed consumers were reluctant to go out in the market instead they were currently engaged in cooking more rather than having ready baked cookies. At the same time, nutritional values of the Pillsbury cookies were perceived to have less significant factor. The key finding was that the consumers were reluctant to use convenience products rather they were more inclined towards baking from scratch. Business can be benefitted from the customers’ insights by prudently analyzing results obtained from the research and aligning these results with the marketing strategies with consumer needs. It has also been observed that mothers in Canada liked the RBG products for its price, its convenience and the happiness it succeeded to deliver through its fun experience when baked at home (Johnson and Mauro, “Pillsbury Cookie Challenge” ; Simona, 726-731). 3. THE KEY LEARNINGS FROM THE USAGE AND ATTITUDE STUDY ON P. 6 OF THE CASE, AND KEY IMPLICATIONS ALONG WITH ACTIONS THAT SHOULD BE TAKEM BY MARKETING TEAM The research offered significant understanding regarding Pillsbury’ brand users as well as lapsed users behaviors towards cookies baking experience. The key learning from the usages and attitude study was that scratch baking is the dominant method off cooking in Canada. It also provided a vital understanding regarding the market differences between the two market of USA and Canada. It was observed that customers of scratch users in Canada were far bigger than in USA. The research also demonstrated that the major purchase drivers were convenience and the entertaining feature of baking with kids. It is essential for the team to gather more precise understanding of consumer’s beliefs, perceptions, preferences and feelings towards Pillsbury RBG. Moreover, it is essential that data obtained from the research are used determining the future course of action (Johnson and Mauro, “Pillsbury Cookie Challenge”). 4. REASONS BEHIND IVAN GUILLEN AND HIS TEAM CONDUCTING THE IN-HOME DISCOVERY WORKSHOPS AND THE PURPOSED SERVED Ivan Guillen and his team conducted the in-home discovery workshops in order to determine the aspects of Pillsbury baking experience that has the significant influence on the consumers. The in-home discovery workshop facilitated in providing valuable understanding regarding the consumer behavior and life style. It is essential that the information collected by Ivan and his teams are analyzed and utilized towards increasing its volume of sale and meets the organizational objectives by satisfying the needs for its customers. It is essential to frame market strategies based on the information obtained and select the best ways to penetrate the new market segment (Johnson and Mauro, “Pillsbury Cookie Challenge”) . 5. DEVELOPING PERCEPTUAL MAPS FOR THE POTENTIAL TARGET SEGMENTS – USERS, LAPSED-USERS AND NON-USERS AS WELL AS THE INTERPRETATIONS AND IMPLICATIONS FROM THESE MAPS Perceptual Map for the Potential Target Segments – Users Interpretation and Implication According to the above represented perceptual map, it can be ascertained that users are largely concerned with its product quality as well as the price of its products. The users are engaged in purchasing its products due to its high quality and reasonable price. The findings have broad implication on the marketing strategies of Pillsbury. Accordingly it is essential that marketing strategies of Pillsbury concerning with quality and pricing are firmly integrated. Pillsbury should re-arrange its existing users and it should lie emphasizes on adapting new demands of its existing customers (Hunt and Arnett, 7-25). Perceptual Maps for the Potential Target Segments – Lapsed-Users Interpretation and Implication The perceptual map presented above reveals that users are reluctant to purchase Pillsbury products as they find its products to be costly. As a result, Pillsbury is losing its market share. Thus, it is essential for Pillsbury to develop confidence amid the lapsed users to engage in the purchase of its products (Johnson and Mauro, “Pillsbury Cookie Challenge”). Perceptual Maps for the Potential Target Segments –Non-Users Interpretation and Implication The perceptual map illustrated above reveals that non-users are significantly influenced by the high price and its product quality. It is thus paramount for Pillsbury to frame marketing strategies that would facilitate Pillsbury to convert non-users into users of its products. It is essential for Pillsbury to alter the perception of consumers towards its products in the minds of its customers (Johnson and Mauro, “Pillsbury Cookie Challenge”). 6. ACTION/S THAT SHOULD IVAN GUILLEN AND HIS TEAM TAKE It is essential Ivan Guillen and his team to formulate strategies aligned with food segment such as food network or the other food networks that are prevailing in Canada to demonstrate the happy experience people feel from baking food from scratch. It is essential for Ivan Guillen and his team to use the information and insights obtained from the research for framing new marketing strategies. The strategies formulated need to address the needs of all the categories of customers. They should set target customers for directing their marketing strategies; it will ensure the success of the new marketing strategies. At the same time no compromise should be made in terms of the quality of products offered for sale to the customers. Price factor should be reasonable so that all categorizes of customers are attracted towards the purchase of its products and experiencing the happiness offered by Pillsbury (Johnson and Mauro, “Pillsbury Cookie Challenge”). As the customers are becoming more price sensitive and health conscious, it is essential that ingredients use by Pillsbury are of high quality. It would be vital for Pillsbury to adopt effective promotion in order to attract new customers and retain existing customers. Branding is also perceived to be an important factor that has significant impact on the customer decision to purchase. Thus, continues effort should be made for strengthening its brand image amid its customers (Chaneta, 19-30). Works Cited Chaneta, I. “Marketing: Packaging and Branding”. Journal of Comprehensive Research 8 (n.d.): 19-30. Print. Hunt, Shelby D. and Dennis B. Arnett. “Market Segmentation Strategy, Competitive Advantage, and Public Policy: Grounding Segmentation Strategy in Resource-Advantage Theory.” Australasian Marketing Journal 12.1 (2004): 7-25. Johnson, Allison and Natalie Mauro. Pillsbury Cookie Challenge. Ivey Publishing (2011). Print. Simona, Balasescu. “The Role and Importance of Marketing Research in Retail”. Retail Marketing Research (2008): 726-731. Print. Read More