1 3 Long

Marketing 468: Marketing Strategy Term Project
Marketing 468
Marketing Strategy Term Project
Section 1 Team 3
Dhananjay Agarwal
Nancy Dennis
John Pang
Peter Woodson
Hiro Yamabe
November 19, 2001
Project Overview
Phase 1
Market Analysis
Strategy
&
Concept
Development
Concept
Testing
(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/ Chris
and Peter
-Market Survey
- Posted on BBS
- 16 samples
- Usage
- Price
-Sampled HeaterMeals
Surveys
1
st
Web Survey
Purpose: Better understand market needs and perceptions.
Process: Emailed message with URL to friends and family.
See http://survey.fuqua.duke.edu/cgi-bin/ssvws?surveysaid/course/marketng_361/team02/survey.htm
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.
2
nd
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/
1
st
Web Survey
First web survey helped to understand
current market needs and perceptions.
What, when, how, why, where people ate lunch
or otherwise used RTE meals.
What was missing?
Results tabulated to indicated greatest needs in
RTE space.
Web survey to capture user needs
http://survey.fuqua.duke.edu/cgi-bin/ssvws?surveysaid/course/marketng_361/team02/survey.htm
Most Important Needs
0.0 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
Lean Cuisine 4.91
Healthy Choice 4.75
Weight Watchers 4.67
Stouffers 4.59
Kraft Mac & Cheese 4.53
Ragu 4.53
Campbells Soup-To-Go 4.47
Uncle Ben's Rice Bowl 4.29
Betty Crocker Bowl Appetit 4.15
Chef Boyardee 4.12
Maruchan 4.12
Nissin Cup-O-Noodles 4.06
Budget Gourmet 4.00
Michelina's 4.00
Brand Ranking
Aware % Awareness
Weight Watchers 39 98%
Healthy Choice 38 95%
Uncle Ben's Rice Bowl 38 95%
Campbells Soup-To-Go 38 95%
Nissin Cup-O-Noodles 38 95%
Kraft Mac & Cheese 37 93%
Stouffers 37 93%
Maruchan 37 93%
Chef Boyardee 34 85%
Ragu 28 70%
Lean Cuisine 27 68%
Betty Crocker Bowl Appetit 24 60%
Budget Gourmet 17 43%
Michelina's 17 43%
Brand Awareness
N = 40
Scale: 1 = low, 7 = high
Web survey analysis
Bowl Appetit has 70% Awareness Not much differentiation in
overall brand perception
N = 40
Ranking on Attributes
Soup 6.11
Italian 6.00
Thai 5.82
Chicken 5.72
Chinese 5.63
Indian 5.37
Japanese 5.29
Shrimp 5.27
Mexican 5.21
Tuna/Fish 5.06
Vegetarian Dishes 4.97
Cajun 4.97
Beef 4.97
Greek 4.82
Beans 4.47
Pork 4.00
Preferences for the following
Web survey analysis
Italian and ethnic choices high
Taste 6.28
Overall Quality 6.26
Convenience 5.44
Price 5.33
Nutritional Content 5.28
Portion Size 4.95
Fat Level 4.74
Thouroughness of cooking 4.31
Transportability 3.77
Heating Time 3.72
Sodium Level 3.56
Taste, Overall Quality, Convenience
are most important
N = 40 Scale: 1 = low, 7 = high
Healthy Choice 5.17
Stouffers 5.09
Lean Cuisine 4.89
Ragu 4.51
Michelina's 4.06
Chef Boyardee 3.97
Budget Gourmet 3.91
Maruchan 3.75
Brand Name impact on taste
Healthy Choice 5.26
Lean Cuisine 5.11
Stouffers 4.89
Ragu 4.39
Michelina's 4.00
Chef Boyardee 3.83
Maruchan 3.67
Budget Gourmet 3.64
Brand Name impact on quality
Web survey analysis
Good name such as Healthy Choice and Lean Cuisine perceived high on quality and taste
Budget Gourmet perceived low on both taste and quality
Brand name impacts perception
Price rankings
Healthy Choice 5.63
Lean Cuisine 5.50
Stouffers 5.45
Ragu 5.35
Chef Boyardee 5.10
Budget Gourmet 3.00
Michelina's 2.25
Maruchan 2.18
Web survey analysis
Healthy Choice 5.44
Lean Cuisine 5.35
Stouffers 5.09
Chef Boyardee 5.00
Budget Gourmet 4.66
Ragu 4.64
Maruchan 4.58
Michelina's 4.48
Ranking on Convenience
Opportunity for differentiation
Web survey analysis
TV 30.00
First Saw it on the Shelf 23.00
WordofMouth 16.00
InStoreTrail 9.00
Radio 1.00
Number of respondents who find
the vehicle influential
OnlineOrder 1.82
People willing to order online
1= yes, 2=no
N = 40
Current Offerings
Mapped current offerings for top needs.
Used taste instead of quality as axis since they
are very similar but taste is less amorphous than
quality (i.e., it is easier to develop plans to
address taste than overall quality).
Added price to analysis since it was 4
th
most
important attribute.
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
T
a
s
t
e
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?
Strategic Options
Better taste than best of class?
Frozen entrees dominate best of class.
Not likely that shelf stable product will surpass frozen on taste.
Greater convenience than best of class?
Much easier to achieve. Add water, remove microwave.
Existing products not well differentiated on convenience,
so great opportunity for GM to take leadership position.
Range of perceptions of taste much broader than range of
perceptions of convenience.
However, taste must be addressed since it was #1
attribute.
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
T
a
s
t
e
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 water
1
Convenience incr. with self heat
2
Taste perception incr. with food enhancement
3
Taste perception incr. with marketing
4
4 Steps to Strategic Position
1. Add water to packaging
In-depth interviews indicated that access to water was often a hassle.
Additionally, do you really want to fill your lunch from bathroom faucet?
Adding water takes product to, or beyond, convenience level of frozen,since
frozen do not require additional water.
2. Remove need for microwave
Surveys, observations and in-depth interviews indicated that microwaves not
always available or queue for microwave use.
Removing microwave takes product well beyond convenience of frozen.
3. Add taste perception through GM food expertise.
Sampled HeaterMeals (small company that makes self-heating meals), and taste
not great, but also not bad. Clearly GMs expertise could improve taste.
Surveys indicated that new flavors, addition of more dehydrated veggies, etc
could improve taste. Level of Kraft Mac&Cheese is certainly attainable.
4. Add taste perception through marketing
Survey found that name had large impact on perception of taste (i.e., Budget
Gourmet ranked very low). Personal Chef and Fireside Feast better names.
Add clear image of vibrant food to film cover of package, so consumer must look
through tasty image to see product inside. Immediate reaction to viewing Bowl
Appetit through clear film was, thats my lunch?
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
Strategic Fit with GM
Important to see how new product concept
can be extended across many product lines
within GM.
Self-warmed Progresso Soup & Green Giant
Veggies.
Self-warmed crescent rolls from Pillsbury
Self-warmed cookies from Pillsbury or Betty
Crocker.
Etc
In-depth Interviews
A series of In-depth interviews were conducted with a sample of young
professionals and hunters/fishermen.
The interviews were used primarily to gauge the reaction and feedback to the
Personal Chef and Fireside Feast product concepts.
The format of the interviews was free flowing but was structured to focus on
image and taste perception, technical/safety concerns, willingness to pay, usability,
and the willingness to initiate trial.
Some sample comments from 5 depth interviews are included on the following 2
slides.
Please note: In Sample In-Depth Interview 4, there are some interesting comments relevant to marketing
Personal Chef to parents with children. Since children were not our target market, the comments were not
utilized, but included for completeness.
Comments From Sample In-depth Interview 1
Rebecca is a 32 year old Asian female, who worked in the accounting department of at a large consumer
packaging company in the downtown area of a large metropolitan city. She occasionally ate lunch at her desk
but more frequently ate dinner in the office alone when she needed to complete an urgent request from the
corporate headquarters or at the months/years end when the books needed to be reconciled.
Price
The price should be more expensive than cup of noodles, or other instant products, but not more expensive
than a store-bought sandwich. If it was more expensive, I dont know whether I would buy it often
Usage
The product would be very good when I am doing overtime, we work very late and there is not much to eat at
that time. And if we are working overtime, things are very urgent and there is no time to go out and buy food
or leave your desk
I probably would not use the product that much during lunch because I like to go out and get some fresh air
and take a break.
There should be a spoon/fork included
I would not wait more than 15 minutes from the time I start to the time I eat.
If the product was really good (taste) and safe, I would use the product 5-10 times a month.
Safety
The product raises some concerns for me. It needs to be made very clear how the heating is accomplished. I
dont want any chemicals mixing near my food. The bowl should be removable so you dont have to worry
about the chemicals getting on your food while you are eating.
I would label the water, pure spring water, or co-brand it with Evian
On the package, there obviously needs to be directions as well as an explanation of how the chemical
reaction works. This would make me feel better/safer.
The divider would be kind of gross, pulling it out of my food. It would be even worse if it melted or was
absorbed.
To break/snap the heating element is more appealing than pulling a string but I would have to see it
Contents
Meat would be okay, but there needs to be a lot of varieties with vegetables, beans, and carrots. If I were to
choose a meat, it would be chicken.. There should be completely vegetarian dishes as well.
If there was water and dry contents in the product, then I would a clear top if it was prepared food, then I
probably would not care if I saw it or not. If it is dry noodles, I want to see that the water is separate from the
noodles it seems more sterile if they are separate.
A complete meal is more appealing than just rice/noodles or pasta I would pay more for it as well
Overall
This would be an excellent product, if it tasted good and I knew it was safe
A flight attendant of a major airline company:
Short distance flight
The product would be good because we would not need ovens and heating panels.
We need to know our passengers benefit (hot food vs. ticket price)
Long distance flight
Most of new planes have carts that have oven function. So the product would not be attractive
The product would be beneficial in the future because we would not need to buy that expensive carts with oven
function
A 32 year female who used to work for a major bank. Her office is in a 35 story building. She used to go to
buy a lunch in a convenience store and have a lunch with her colleagues.
Advantage/Disadvantage
The biggest merit is that I would not have to buy a lunch! Restaurants are always crowed at lunch time
Convenience stores are always crowed.
The product would be very attractive if the taste was good(The product does not seem that the taste is
good)
Hot foods sound better quality than cold foods
It would be no problem when I brought the product to cafeteria.
If the products taste was really good, I would use the product 2-3 times a week.
Price
I would pay $4.
Heating time
5 minutes would be acceptable
Overall
This would be an attractive product, if the taste was good
Sample In-depth Interviews
Female professional, mid-30s, Fuqua Secretary
Safety
Concerned about what happens to the product molecularly
Prefers not to use microwave because she learned it changes food molecularly; she is especially concerned
about this because she has a baby who needs enzymes for digestion and microwave kills some needed enzymes
Concerned that solution & food would accidentally mix
Wants to know what is in solution in case kid got into solution & would want to know what to do in case of an
emergency; otherwise, wouldnt care about this if she didnt have kids
Usage
Views going out to lunch for work as a treat
Brings in lunch almost every day, primarily to save money
Assuming the product tasted good, she would purchase it approximately 4 times/month
Likes the fact that she would not need to get up while working to prepare her meal
Desires a balanced meal for work with all major food groups represented
Views lunch as biggest & most important meal of the day
Brings hot lunches (vs.. cold) about 70% of time
Price
She would expect to pay slightly more that she does for a frozen meal
Would expect to pay $4, but willing to pay $6
Contents
Likes low sodium, and nutrition is important
Wants clear film covering food to know if food is overcooking
Likes different flavors of Stouffers & good nutrition and taste of their products
Would prefer food separated so she could, for example, put sauce on noodles
Overall
Personal Chef name reminds her of cooking shows, but that isnt a bad thing
Ideal prep time would be 5 minutes
Prefer slightly bigger size likes Hungry Man portions
Wants freedom to stop cooking process early
Wondered how heat time would change as altitude changes (because oven cooking time or temperature needed
changes with altitude changes)
Likes to try new products
Likes product for its self-heating technology & uniqueness
Likes message hot & good-tasting
Really interested in product & would definitely purchase
Sees product as great on the road could pack & use for camping
Comments of Regarding Childrens Market
Product great for kids and her because she could easily pack in a diaper bag & go
Always looking for portable snacks for kids
She prefers warm food for her child because he is coming out of the infant phase
Thinks product has a lot of potential for kids since most of current kid products have too much sodium. Great
for kids because easy to eat, fast
Used to buy Chef Boyardee, but doesnt anymore because too salty
Mid 30s female professional, Fuqua Secretary
Safety
Really hesitant to try because wouldnt trust taste
Worried about chemical manipulation
Usage
Hearing about previous military use would help, but she has also heard her military friends complain a lot
about the type of food they eat
Very rarely brings her lunch to work
Tiny refrigerator that she must use at the office
When she does bring her lunch to work, it is to save money
Doesnt view lunch as social thing, but uses lunchtime to do personal work, like personal emails
Would buy for camping to initially try out product
If tasted good, would purchase 2-4 times/month, in addition to occasional camping trips
Prefers hot meal to cold meal for lunch; eats hot 75% of time
Contents
She would only initially try a flavor that company couldnt screw up like macaroni and cheese or something
simple like that
Wants smaller portion more like a side dish
In general, wants decent calorie count and good nutrition without too much sodium
Willing to eat more bland flavors if healthier
Prefers clear seal so she can see food
Doesnt care about separation of food
Only concerned about shelf-stable meat because of taste concerns (worried it would be dried out), but no
health or safety concerns
Likes sealed pouch concept seems more fresh than box
Price
Would be willing to pay $7, but would expect to pay $5???
Would not pay more than $5, because then she could just go out to eat
Overall
Personal Chef name is ummm- ok
When you have to keep going message is very appealing
Thinks convenience is most influential attribute, since she wouldnt believe claims for good tasting anyway.
Sample In-depth Interviews
Two Product Concepts
Self heat technology GM food expertise
Personal Chef
Heating Time
Fireside Feast
Target 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 Mills Betty Crocker
Naming: Why these names?
Personal Chef
Qualities it should
capture
Taste
Convenient
Quality
Prepared just for you
Bowl Appetit
emphasizes physical
attribute that is not as
important as qualities.
Fireside Feast
Qualities it should
capture
Hot
Hearty
Convenience
Taste
Very consistent with
outdoor perception.
Survey showed name has great impact
on consumer perception
Target Market: Why these targets?
Personal Chef
Professional Workers
63 million workers
Access to water and
microwave not always
possible
Busy, so appreciate hyper-
convenience
Irregular or unforgiving
schedules make for
unexpected meals at desk.
Fireside Feast
Hunters, Anglers and other
outdoorsmen
77 million participants
~ 900 million days per
year spent hunting and
fishing in U.S.
$101 billion annual
expenditures.
Not Family Campers
They want social activity
around campfire
Source: 1996 National Survey of Fishing, Hunting, and
Wildlife-Associated Recreation, Nov. 1997
Source: Bureau of Labor Statistics,
www.bls.gov
Heating Time: Why these times?
Personal Chef (7min)
Busy professionals
more concerned about
time.
Ingredients within
bowl more conducive
to quick times
Smaller portions
Less hearty
Fireside Feast (15min)
Outdoorsmen more
willing to wait.
Ingredients require
more time
Larger portions
Hearty fare
Portion Size: Why these sizes?
Personal Chef (8-10oz)
Less active situation.
Cannot be slowed by
excessively heavy
lunch.
Comparable to existing
products.
Fireside Feast (10-12oz)
Outdoorsmen more
active.
Harsher environments
so hearty meal.
Health: Why choices?
Personal Chef
Calories
Less active situation
Cannot be slowed by
excessively heavy lunch
More weight conscience
Nutrition
Eaten frequently
More health conscience
people
Fireside Feast
Calories
More active situation.
Less weight conscience
Nutrition
Eaten infrequently
Less health conscience
situation
Price: Why $4?
Personal Chef
Surveys indicated $4.
Eaten frequently so
might think priced less
than Fireside Feast, but
eaten by higher income
bracket
Comparable to hot
meals prepared for you
Fireside Feast
Surveys indicated $4.
Eaten infrequently so
might think priced
more than Personal
Chef, but eaten by
lower income bracket
Comparable to hot
meals prepared for you
Branding: Why BC or GM?
Personal Chef
Betty Crocker
Sense of safety to
overcome spooky
heating.
Ties nicely with
Personal Chef concept.
Fireside Feast
General Mills
Male dominated
outdoorsmen would be
turned off by Betty
Crocker name and
image.
General Mills instills
quality without
offending manly ego.
Mills ties nicely with
outdoors.
Fresh Water
Food Mix
Salt
Water
Magnesium Chip
147F 147F
One Step to
Hot Food
in Under 7
Minutes.
Top View Cutaway View
Personal Chef
Protein & Carb
Veggies
Salt
Water
Magnesium Chip
147F 147F
One Step to
Hot Food
in Under 15
Minutes.
Top View Cutaway View
Fireside Feast
Items of Interest in Product
Personal Chef initially uses water and mix
design, but could be adjusted in the future to
add tuna or other meats.
Fireside Feast uses hearty, meat & potatoes-
type foods.
Both can be adjusted easily to add cookies
or bread compartment.
Its like having your personal-chef prepare a high-quality
tasty meal and bring it right to you, where ever you are!
Product Positioning
Personal Chef
The hyper-convenient ready to eat meal
No need for a microwave
No need for water for cooking
Working at odd hours
Office in remote location
No Restaurant line
Its like having a feast next to the fireside outdoors.
Product Positioning
Fireside Feast
The hyper-convenient ready to eat meal
No need for a microwave
No need for water for cooking
Hearty, high calorie, tasty meal
Tactics for Both Products
Issue Action Plan
Promotion
Need to show hyper-convenience
Need to show good tasting meal
TV ads, Magazines
Branding
In store trial, TV ads
Process description on packaging
Need to show safety
In store trials
Co-branding with Green Giant & Evian
water
Need to build awareness
Give away free at high traffic office areas
Place in end aisle
Distribution
Use existing channels: grocery, mass
merch and c-stores
Easily accessible
Take home out of equation
Distribute via internet orders for delivery
to office desk. Sale of multipacks.
Detailed Marketing Tactics
Ads: targeted in magazines, such as Field &
Stream for Fireside Feast and Working Women
for Personal Chef
For Personal Chef, the message When you have
to keep going appealed to consumers in in-depth
interviews and promoted the most differentiating
quality of the product
Event sponsorship: sponsor fishing shows to
promote switching strategy for hunters/fishermen
Use coupons to stimulate trial, as there was some
skepticism that such products could taste good
Detailed Distribution Tactics
Why did not choose special outdoor / sports
stores?
No expertise in this distribution channel
Why did we choose mass merchandisers?
They already have hunting and fishing sections
How to solve seasonal issues?
Shelf stable product reduces seasonality because we manufacture it
regularly and have inventory
Both Fireside Feast and Personal Chef share many common
components allowing products run throughout year by just
changing allocation of run to fit season. (Postponement)
Outsourcing
Safety Concerns
Demonstrate through packaging description how meal
& heating unit are separate, that heat unit is self-
contained, and that heat unit is nontoxic. TV ad will
demonstrate how food is not chemically altered, but
merely heated up through heating instrument
Remind consumers what a treat a warm meal is, as
consumers viewed a preference for a warm meal in in-
depth interviews
Fireside Feast will be placed next to hunting & fishing
gear in stores to most effectively attract target audience
of hunters & fishermen
Waterproof and firmly seal Fireside Feast to make
product suitable for fishing & rafting needs
Source of Sales
Bowl Appetit
Use at home
and work
Personal Chef
Use at work
Fireside Feast
Use outdoors
Processed
Meats
Bowl
Appetit
Other
Shelf Stable
Frozen
Sandwiches
Other
Shelf Stable
Restaurants
Current Market
1) Low Cannibalization of Bowl Appetit 2) Switching Tactics
Switching logic:
1) Our products are very different from relevant competitors (see strategic positioning slide)
2) After we make customers understand our benefits, they switch from competitors.
For example, Personal Chef will get customers who prefer hyper-convenience but are currently
eating frozen, other shelf stable or at restaurants
Sales Forecast Methodology
Estimated sales at Year 3 based on
demographic data, market survey (see next
slide for sample), and in-depth interview
Discounted back to Year 1 using estimated
growth rate
Due to uncertain assumptions, we used
Monte Carlo Simulation (Triangular
distribution)
http://survey.fuqua.duke.edu/cgi-bin/ssvws?surveysaid/course/marketng_361/team02/psurvey.htm
Survey sent to professionals for product concept testing
% meals that would be Personal Chef
10%
Average price willing to pay for
Personal Chef
$3.80
The survey was emailed to professionals and
a web image of the product along with the survey was shown.
www.duke.edu/~psw2/personalchef
Personal Chef Concept Survey
Results
Key Assumption of Personal Chef
Min Most likely Max Reference
Total # of Professionals(million) 56.5 62.75 69 Bureau of Labor Statistics
Awareness 50% 70% 90% We took Bowl Appetit as our bench mark
%Usage of Personal Chef 4% 10% 15% In-depth interview
Purchase cycle 25 30.00 35 Panel Data
# of purchase in a year 12.17
Price 3.80
Sales Growth Rate (Yr 1 vs Yr 2) 100% We took a product in MRI data as our bench mark
Sales Growth Rate (Yr 2 vs Yr 3) 50% We took a product in MRI data as our bench mark
Year 3:
Why price is going to be decreased?
Competitors will launch similar products in Year 2
Personal Chef Sales Forecast
Certainties Centered on Means
0.00
100.00
200.00
300.00
400.00
Y
e
a
r

1

Y
e
a
r

2
Y
e
a
r

3
90%
50%
25%
10%
Trend Chart
Year 1 Year 2 Year 3
PC Revenues (MM) $69 $134 $196
Price $4.00 $3.90 $3.80
Units (MM) 17 34 52
Unit Growth Rate 100% 50%
Survey posted to Hunting.com for product concept test
http://survey.fuqua.duke.edu/cgi-bin/ssvws?surveysaid/course/marketng_361/team02/hfsurvey.htm
What do hunters and fishermen usually eat?
Q4 - Eat A1 Q4 - Eat A2 Q4 - Eat A3
granola bars hot dogs sandwiches
apples granola bars water
crackers canned stuff jerky
Chips Crackers
meals on the go
that do not have to
be cooked
Grilled Game meat Soups fried fish, etc
PBJ Coke Nabs
bee anie wienies
% meals that would be Fireside Feast
63.3%
Average price willing to pay for
Fireside Feast
$3.20
The survey was posted to Hunting.com and
a web image of the product along with the survey was shown.
www.duke.edu/~psw2/soloheat (SoloHeat was our original name)
Fireside Feast Concept Survey Result
Key Assumption of Fireside Feast
Hunters
Fishermen
Hunters Reference
Min Most likelyMax
Days(Mil) / year 231 257 283
1996 National Survey of Fishing, Hunting, and
Meal / day 0 0.5 1 In-depth interview
% Aware 50% 70% 90% We took Bowl Appetit as our bench mark
Times % Usage of Fireside Feast 0% 17% 47% Survey
Price 3.8
Fresh water Seawater Reference
Min Most likely Max Min Most likely Max
Days(Mil) / year 464 515 567 92 103 113
1996 National Survey of Fishing, Hunting, and
Meal / day 0 0.5 1 0 0.5 1 In-depth interview
% Aware 50% 70% 90% 50% 70% 90% We took Bowl Appetit as our bench mark
Times % Usage of Fireside Feast 0% 17% 47% 1% 2% 5% Survey, In-depth interview
Price 3.8 3.8
Why did we divide two market segments in fishermen
market?
In-depth interview showed that seawater fishermen can access to
hot foods more easily because they may have bigger boats with
cooking facilities onboard.
Fireside Feast Sales Forecast
Certainties Centered on Means
0.00
150.00
300.00
450.00
600.00
Y
e
a
r

1

Y
e
a
r

2
Y
e
a
r

3
90%
50%
25%
10%
Trend Chart
FF Revenues (MM) $62 $120 $176
Price $4.00 $3.90 $3.80
Units (MM) 15 31 46
Unit Growth Rate 100% 50%
Revenue Forecast of 3 products
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
FF Revenues (MM)
PC Revenues (MM)
BA Revenues (MM)
- Most likely case
Sales growth of Bowl Appetit = 5%
10% if we do not launch the two new products
Cannibalization with Personal Chef = 5%
Cannibalization with Fireside Feast = 0%
Bowl Appetit sales growth 5% = 10% - 5%
$MM
Unit Forecast of 3 products
- Most likely case
MM
9
?9
49
9
89
199
1?9
149
Y=v 1 Y=v ? Y=v `
ll lu1f M M )
l lu1f M M )
^ lu1f M M )
Analysis of revenue forecast
The forecasts look aggressive but we wanted to
use the survey data verbatim without adjusting for
the small and non-representative sample.
43% Asian for 1
st
survey
8 samples for forecasting hunting and fishermen sales
(product concept survey)
8 samples for forecasting professional sales (product
concept survey)
RTE Meal Competitive Landscape
Substitutes:
Short Term: High
Long Term: High
Barriers to Entry:
Short Term: High
Long Term: Low
Buyer Power:
Short Term: High
Long Term: High
Industry Rivalry:
Short Term: Low
Long Term: High
Supplier Power:
Short Term: High
Long Term: Low
Supplier Power
Short Term: High
Unless General Mills chooses to immediately purchase and manufacture the heating technology
there is the possibility of being held-up by the supplier.
Long Term: Low
In the long run, General Mills will need to vertically integrate to acquire the manufacturing of the
technology.
Buyer Power:
Short Term and Long Term: High
Depth interviews indicate that the initial thought of self-cooking may be thought to be unsafe, however
when the consumer is assured of the products safety, they believe the product would be extremely
useful and would regularly purchase the products.
Barriers to Entry:
Short Term: High
Initially, patent protection and General Mills perceived quality, along with its distribution channels
will prove to be effective barriers to entry.
Long Term: Low
In the long term, self-heating technology will advance and the barriers to entry will diminish
Substitutes:
Short Term and Long Term: High
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).
Industry Rivalry:
Short Term: Low
When the Fireside Feast and Personal Chef hit the market, we anticipate that other competitors will
immediately begin to enter the self-heating, ready to eat market, however the barriers to entry will
General Mills to sustain a short-term competitive advantage.
Long Term: High
In the long run, the market will approach perfect competition as other firms enter the market to extract
the profits. General Mills must continually innovate to differentiate itself from these competitors.
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.
Quotes from Real People
Dont you think thats 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 dont 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 its 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.
Summary
Create hyper-convenient product that
leverages GMs 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)

1 3 Long

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

1 3 Long

Hochgeladen von

Copyright:

Verfügbare Formate

Marketing 468: Marketing Strategy Term Project

Das könnte Ihnen auch gefallen