Guillen is faced with a declining product performance and he is required to come up with a presentation showing the problem and solution. He is required to develop a marketing strategy that will improve the performance of Pillsbury refrigerated baked goods. The performance of the RBG category is driven by the performance of the refrigerated cookies. The key issues involve the effectiveness of the marketing methods and messaging. The research results indicate that the marketing manager should reconsider the target market, brand messaging, and effective communication channel.
Analysis
Guillen is faced with a problem of declining product profitability. Here is a SWOT analysis of the case facing this marketing manager.
Strengths
- RBG is the fourth largest category at GMCC
- Refrigerated cookies are relatively easy, quick, practical, affordable, and pleasing to children
- Pillsbury cookies are nutritional
- Pillsbury Doughboy among the top ten advertising icon
- Market leader in packaged foods in Canada
Weakness
- New advertising spot are expensive to acquire
- Scratch baking is the dominant method of baking cookies in Canada
- Over-reliance on US-made marketing material and new products
Opportunities
- Mothers in Canada value baking and think Pillsbury cookies as their “secret” ingredient
- There is little quality concern
- Kids driven purchases are prevalent
- Sharing and eating cookies are the most valued aspects
- Cheaper and effective online marketing
Threats
- Competition from other companies. GMCC holds number one or two in most food categories in Canada.
- Technology: The increasing number of internet users
- Reducing market penetration
- Reducing unit sales
Here is an overview of political, economic, social, environmental, and technology related issues that faced the company.
Political
The political landscape in Canada is stable hence no abrupt political changes are expected.
Economic
The number of stable income earners in Canada is high. The target market is a mother in their mid-30s to 40s leading an active and busy lifestyle with the family. She would be time-starved and looking for easy and convenient product solutions that the can enjoy together.
Social
The family is an important aspect of the target market. The kids have a higher influence on purchases than in the US. Baking, sharing and eating cookies are considerations made when purchasing.
Environmental
The plastic wrap on the Pillsbury cookie represent an environmental issue to be considered in a country looking forward to going green.
Technology
Technological advancements such as the increased use of the internet are aspect to explore for cheaper marketing and advertising.
Alternatives
The study results provided presents different option for Guillen. The first option would be to develop a Canadian specific marketing campaign that will emphasize on values shared by the target market. The advertisements would concentrate on baking, sharing and eating the cookies together as a family. This would resonate with the target market.
The other option would be to look at how to improve other RBG products. Despite, refrigerated cookies being the driving force in the RBG category, the Guillen should commission a research study to establish preferences and habits that might improve the performance of other products in the RBG category. The differences established between the US and Canadian market in the refrigerated cookies category should act as a sign that the markets could have significant differences that could change product performance.
The third option third option would be to change the target market. The research study established that kids are an influencing factor in purchasing decision. In addition, they do not like being involved in baking the cookies but like eating them. This could be an opportunity to leverage.
Recommendation
Out of the three alternatives, I recommend the first option. Since the study has shown significant differences in the two markets. Guillen should leverage the attitudes of the mother and kids to increase frequency of purchase as well as home penetration.
