Bowl Appétit!

1. Bowl Appétit! Section 1 Team Number 1/2 Locker Number 87 November 19, 2001 Marketing Strategy Group: Tim Christie Ana Paula Guimaraes Andrea Heilman Fumiko Kotake Marcelo Rosenburg Raphael Yook

2. Agenda • Introduction and problem definition • Category and brand review • Bowl Appétit! consumer • Brand strategy • Concepts • Summary Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

3. Introduction and problem definition “Bowl Appétit! Microwavable pasta and rice entrées exceeded sales expectations in their first year.”* “New Bowl Appétit! single-serve entrées generated strong first-year sales…”* *Source: General Mills Annual Report, 2001 Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

4. Introduction and problem definition Bowl Appétit! is a young brand in the convenience food category • Bowl Appétit! is a single-serve, shelf stable bowl launched in June 2000. • BA is available in three varieties: pasta, rice, and mashed potatoes. • BA is currently offered in 10 different flavors (SKUs) – four pastas, three rices, and three mashed potatoes. • BA’s preparation instructions are: peel back film covering, add hot water to fill line, stir, re-cover with film, and microwave three to six minutes, stir, and let stand uncovered two minutes. • BA’s total preparation time is approximately five to ten minutes. Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

5. Introduction and problem definition Bowl Appétit! is at a critical juncture in its product life cycle • BA is in the early stages of its product life cycle and has yet to develop a sustainable growth model. • BA’s current growth is not sustainable, because it is driven by trial rather than repeat purchases. • We must develop a strategy that will enable BA to generate maximum sustainable growth in single-serve, shelf stable food products revenues for the next three years. • Repeat purchases are critical for sustainable growth. Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

6. Introduction and problem definition Many factors will determine Bowl Appétit!’s strategic success • Our recommended strategy for Bowl Appétit! must: • Generate sustainable revenue growth in the single-serve, shelf stable food products category. • Meet consumers’ needs. • Fit with relevant industry and environmental trends. • Fit with General Mills’s resources and capabilities. • Increase brand equity. Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

7. Introduction and problem definition Summary of recommendations • Strategy We recommend that General Mills refocus its overall product efforts on repeat purchasesof Bowl Appétit!. • Concepts • Improve Bowl Appétit!’s ability to meet consumer needs by including vacuum sealed vegetables to three varieties (two rice and one mashed potato SKUs); and • Improve Bowl Appétit!’s taste by adding spices or gravy to three varieties (one rice and two mashed potatoes SKUs). Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

8. Category and brand review Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

9. Category and brand review -- competition Frozen foods are part of the competitive set for shelf stable meals, but the opposite is not always true: • Based on our focus group and consumer inquiries feedback: • Buyers of shelf stable meals usually go to the frozen aisle to look for similar products (for example, frozen vegetables and meals). • Buyers of frozen food do not necessarily go to the shelf stable aisle to look for single serve meals. • Consumers who usually buy shelf stable meals are more willing to accept new concepts of shelf stable meals than the consumers of frozen food. • Consumers who want meat are unlikely to accept shelf stable offerings as a complete meal, when no meat is included. • Shelf stable meals are perceived as less healthy and high in sodium, so they do not appeal to some health conscious frozen food consumers (for example, Healthy Choice and Lean Cuisine consumers). Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

10. Category and brand review -- competition Bowl Appétit!’s shelving influences its competitive set with consumers • Bowl Appétit! is most often shelved near other shelf stable products, such as: • Noodle cups • Add water cups • Microwave cups with meat • Microwave multipacks • Pasta • Bowl Appétit! is not shelved near frozen products. • Bowl Appétit!’s consideration set in retail stores includes other shelf stable products but not frozen products. • Consumers buying frozen products may not be aware of Bowl Appétit!. Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

11. Category and brand review -- competition Bowl Appétit!’s competitive set is closer to shelf stable meals than to frozen meals. • Direct competitors include: • Shelf-stable meals: microwave cups with meat, microwave multipacks, add water cups, noodle cups, instant rice, pasta mixes, and soups. • Brands: Uncle Ben’s rice packets, Lipton rice and pasta packets, Maruchan, Campbell’s Soup to Go, Kraft Mac & Cheese, Ragu Express, Chef Boyardee, and others • Indirect competitors: • Frozen single meals: • Brands: Uncle Ben’s bowls, Healthy Choice, Marie Callender’s, Stouffers’, Lean Cuisine, and many others • Substitutes: • Power bars, snack food, fast food Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

12. Category and brand review – perception maps Bowl Appétit!’s rice and mashed potatoes SKUs have an opportunity to become more of a meal in consumers’ perceptions Meal Frozen Marie Callender’sUncle Ben’s BowlsHealth ChoiceStouffersLean Cuisine Bowl Appétit! Pasta Varieties MicrowaveCups with Meat Soup to GoChef Boyardee Noodle Cups Maruchan Add Water Cups Near East Frozen Shelf Stable MicrowaveMultipacks Mac & Cheese Ragu Express Bowl Appétit! Rice Varieties Mashed Potatoes Varieties Rice & Pasta Packets Uncle Ben’s PacketsLipton’s Packets Note: Convenience is a function of preparation time, need for additional ingredients (for example, water), and storability. Side Dish/Snack Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

13. Category and brand review – perception maps Bowl Appétit! has an opportunity to increase consumers’ perceptions of tastiness in rice and mashed potatoes varieties Healthy Frozen Health ChoiceLean Cuisine Rice & Pasta Packets Uncle Ben’s PacketsLiptons Packets Tasty Not tasty Frozen Marie Callender’sUncle Ben’s BowlStouffers Bowl Appétit! Rice Varieties Mashed Potatoes Varieties Bowl Appétit! Pasta Varieties MicrowaveCups with Meat Chef BoyardeeDinty Moore MicrowaveMultipacks Mac & Cheese Ragu Express Add Water Cups Near East Noodle Cups Maruchan Not healthy Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

14. Category and brand review – perception maps In terms of age groups, Bowl Appétit!’s closest competitors are frozen meals, add water cups, and certain microwave cups Adults Frozen Marie Callender’sUncle Ben’s BowlsHealth ChoiceStouffersLean Cuisine Rice & Pasta Packets Uncle Ben’s PacketsLipton’s Packets Add Water Cups Near East Bowl Appétit! MicrowaveCups with Meat Dinty Moore Noodle Cups Maruchan Frozen Shelf Stable MicrowaveCups with Meat Chef Boyardee Frozen Uncle Ben’s Mini Bowls MicrowaveMultipacks Mac & Cheese Ragu Express Kids Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

15. Category and brand review – perception maps Bowl Appétit! has an opportunity to increase consumers’ perceptions of its convenience by eliminating the hot water step Convenient MicrowaveCups with Meat Dinty MooreChef Boyardee MicrowaveMultipacks Mac & Cheese Ragu Express Noodle Cups Maruchan Add Water Cups Near East Bowl Appétit! Frozen Marie Callender’sUncle Ben’s BowlsHealthy ChoiceStouffersLean Cuisine Frozen Shelf Stable Rice & Pasta Packets Uncle Ben’s PacketsLipton’s Packets Note: Convenience is a function of preparation time, need for additional ingredients (for example, water), and storability. Not so convenient Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

16. Category and brand review – copy strategies BA’s current value proposition is not unique in terms of convenience and taste. BA differs from its competitors in terms of the consumer it targets. • Main competitors’ copy strategies: Marie Callender’s Chef Boyardee Brands Bowl Appétit! Uncle Ben’s Soup to Go • Busy moms, active married women • Young, active couples • Women (Bowl lovers) • Tweens and Teens • Young working women Target • Fast • Satisfying • Perfect food for the perfect moment • Good • Fresh • Lunch is a masterpiece • Taste great • Fun to eat • Help kids be popular in school • Amazing • Delicious • Convenient • Convenient • Delicious • Help busy life SMP Benefit • Easy to cook (3-5 min) • Appetizing varieties • Betty Crocker • Just minutes in the microwave • 14 delicious and sophisticated flavors • 98% fat free • Bowl • Tender chicken • Marie Callender’s • Ready in seconds • Beef ravioli image • Mom recommending • Ready when you are • Campbell’s Support • Lunch time at home • Kids taking care of mom • Lunch or dinner • Passion, hot • Lunch at home • Art • Lunch at school • Mom at home preparing lunch box • Women on the go to work Theme • Attractive, active, sexy, satisfying, sophisticated • Artistic, active • Popular, cool, comforting • Successful, fashion, active young • Caring, friendly, comforting, active Personality SMP: Single Minded Proposition Source: Latest advertisements Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

17. Category and brand review – price Bowl Appétit!’s price is well positioned within the convenience food segment • Focus group members responded positively to Bowl Appétit!’s current price. They perceived that Bowl Appétit provides better value than other shelf stable products but less value than frozen meals. Price (Average Unit Price) Source: Nielsen Panel Data ($ Price/Unit Volume) Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

18. Category and brand review – $ Volume Bowl Appetit $ Volume close to Chef Boyardee in only 1.5 years Source: Neilsen Scanner Data Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

19. Category and brand review – distribution Bowl Appétit!’s distribution is comparable to frozen and shelf stable products’ distribution • Bowl Appétit!’s rice and pasta offerings have achieved distribution similar to or better than other products. • Bowl Appétit!’s mashed potatoes offerings have achieved 11% distribution three months after launch. • We have an opportunity to increase distribution of Bowl Appétit!’s mashed potatoes offerings. Source: Nielsen Scanner Data, 52 Week Ending 8/11/01 Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

20. Category and brand review – promotional activities Bowl Appétit!’s promotional activities have been only slightly higher than Uncle Ben’s activities for its bowls Note: Weighted averages Source: Neilsen Scanner Data Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

21. Category and brand review – sales per million $ volume Bowl Appétit!’s average sales per million $ volume is lower than best-selling frozen and shelf stable products’ • Bowl Appétit!’s pasta offerings have achieved $73 in sales per million $ volume, while Bowl Appétit!’s rice and mashed potatoes offerings have an opportunity for improvement. Source: Nielsen Scanner Data, 52 Week Ending 8/11/01 Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

22. Category and brand review Key takeaways for category and brand review • While comparisons to frozen foods are necessary, Bowl Appétit!’s physical proximity to shelf stable meals causes its products to be more strongly categorized in this set. • Perceptual map analyses indicate areas of opportunities in meals, better taste, more convenience (no hot water) and adult-aged consumers. • Bowl Appétit!’s value message uniquely targets the busy, married, active moms. • The value of Bowl Appétit! lies between frozen meals and other shelf stable products as indicated by the average unit price of $1.41. • During Bowl Appétit!’s first year of launch, its performance, as measured by $ volume, was strong due to its solid distribution penetration and its moderate promotional activities. • However, Bowl Appétit! needs a viable long term strategy to increase its average sales per million $ volume and to more closely match the best-selling frozen and shelf stable products. Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

23. Category and Bowl Appétit!’s consumers Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

24. Category and Bowl Appétit!’s consumers - Category Consumers tastes are trending toward prepared meals, convenience, portability, and health • At the Food Marketing Institute conference in May, numerous new product offerings targeted “cooks with no time or inclination to prepare meals from scratch but who are willing to spend some time to produce a guilt-free nutritious satisfying meal.” • “Along with convenience and portability, consumers are increasingly looking for foods and beverages that deliver health benefits.” • With aging baby boomers, we expect this trend to continue. • Higher proportion of empty nesters • Trend towards nutritional benefits as separate from caloric/fat reduction benefits. Sources: “Food Makers Eye Convenience, Soy As Retailers Look Warily at Web.(comprehensive review of Food Marketing Institute conference)”, Brandweek, May 14, 2001. Progressive Grocer Annual Report, April 2001 Trends in the United States – Consumer Attitudes and the Supermarket, 2000 (Food Marketing Institute) Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

25. Category and Bowl Appétit!’s consumers - Category Restaurant menu trends often forecast the next trend in prepared foods: noodle bowls and ethnic foods • Consumers want to participate in their meals. • Many restaurant offerings require items to be dipped or customized. • Ethnic foods, particularly hot, spicy foods, continue to be popular. • Comfort foods, such as one-dish meals, are a growing trend. • Excitement foods, such as noodle bowls and soy-based sauces, are a growing trend. Source: “The Institutional Insight (foodservice highlight growing consumer food trends)”, Prepared Foods, October 2001. Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

26. Category and Bowl Appétit!’s consumers - Category Consumers are changing their diets to eat more fruits and vegetables How Consumers are Changing Their Diets (Top Reasons) Source: Trends in the United States – Consumer Attitudes and the Supermarket, 2000 (Food Marketing Institute) Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

27. Category and Bowl Appétit!’s consumers - Category Taste and nutrition are the most important factors for consumers Importance of Various Factors in Food Selection Source: Trends in the United States – Consumer Attitudes and the Supermarket, 2000 (Food Marketing Institute) Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

28. Category and Bowl Appétit!’s consumers - Category Microwave usage - shelf-stable products segment profile is closer to what Bowl Appétit!’s should be Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

29. Category and Bowl Appétit!’s consumers – BA! Bowl Appétit!’s target consumers are busy mothers • Bowl Appétit!’s copy strategy suggests that its target is busy mothers. • The target is consistent with the microwave usage shelf-stable subcategory of convenience meals: • 91% have high school or higher education, with higher index in college education • 58% are 25 to 44 years old, but with higher index in 25-34 • ~70% are employed part or full time • More upscale than frozen • 71% are married • 63.3% have 3 + persons HH • 90% are white Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

30. Category and Bowl Appétit!’s consumers – BA! General Mills has done a good job of generating trial purchases of Bowl Appétit! Note: Brand and Category averages are an approximation based on the weighted average of the products Source: Nielsen Panel Data Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

31. Category and Bowl Appétit!’s consumers – BA! Bowl Appétit!, however, has the lowest loyalty level among its competitors Note: Brand and Category averages are an approximation based on the weighted average of the products Source: Nielsen Panel Data Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

32. Category and Bowl Appétit!’s consumers – BA! In addition, Bowl Appétit! has a significantly lower percentage of repeat buyers than other brands in the category Note: Brand and Category averages are an approximation based on the weighted average of the products Source: Nielsen Panel Data Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

33. Category and Bowl Appétit!’s consumers – BA! Bowl Appétit! repeat buyers also shop with significantly lower frequency than its competitors 1 Note: 1. We acknowledge the fact that Bowl Appétit! has less than one year in the market, but the comparison also holds when comparing the BA! SKUs data against the other SKUs (even the new ones) Brand and Category averages are an approximation based on the weighted average of the products Source: Nielsen Panel Data (calculation discounts the effect of one-time buyers on the overall average of # of trips per buyer) Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

34. Category and Bowl Appétit!’s consumers – BA! BA’s low repeat and loyalty level of buyers, especially for rice varieties, is correlated with low taste consumer perception • Consumer quotes: • “Bowl Appétit! is mediocre!” • “I tried Bowl Appétit! Rice bowl, and it is really dry! Too expensive for taste!!I won’t buy again” • “I tried the Betty Crocker Bowl and didn’t like it at all” • “It is too salty! I wouldn’t buy it!” • “I may buy it again for my kids, not for myself!” Source: Focus Group feedback Shopper Report, The, May 2001, “The Bowl Roll” Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

35. Category and Bowl Appétit!’s consumers Key takeaways for category and Bowl Appétit! consumers • Despite the good trial rates achieved, Bowl Appétit! failed to generate appropriate loyalty and repurchased rates. • Consumer feedback suggests that the low taste perception is the most important problem affecting these low repurchase levels. • Bowl Appétit! has low penetration among the non-Caucasian groups, however these groups are not big enough to justify an ethnic-oriented campaign. The brand has other important problems before expanding to other market niches. • The target group of Bowl Appétit! brand, busy moms and busy women, is well aligned with the findings on dry meals consumers’ profile. The target group is not the main cause of repurchase problems that BA! is facing. Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

36. Bowl Appétit!’s strategy Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

37. Bowl Appétit!’s strategy BA!’s strategy will focus on generating repeat purchases. The concepts used will improve taste and make it more of a meal in the eyes of consumers • BA! has low incidence of repeat purchases compared to other brands. • Previously focused on generating trial purchase, now must focus on repeat purchase – Data indicates that BA!'s trial purchase rates are comparable to the trial purchase rates of products in BA!'s competitive set. While BA! has been successful in gaining trial purchases, the focus must shift to improving repeat purchase in order to achieve sustainable revenue growth. • Stimulate re-trial – With new concepts, people who did not initially like the original product will have a reason for re-trial. • Sustainable – Improving the quality/taste will have long-term benefits • Strategy will leverage brand equity of delicious meal. • Focus group and secondary research suggest that meal and taste perception are the key drivers. • Strategy supports brand vision of people feeling good about having BA! as a lunch anywhere. Strategy Generate repeat Concept 2 Concept 1 Improve taste Make more of a meal Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

38. Bowl Appétit!’s strategy In order to support BA! strategy we will define its source of brand equity, understand its situation, and define the brand’s vision • The brand equity is defined by the main attributes and the benefits associated with Bowl Appétit!. • In addition, it is important to analyze Bowl Appétit!’s parent brand Betty Crocker. • The SWOT analysis will show us the elements we need to investigate (weaknesses and threats). • The proposed strategy should follow the brand vision. Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

39. Bowl Appétit!’s strategy Bowl Appétit! carries the image of Betty Crocker: good taste, easy to prepare, comfort food Betty Crocker Umbrella brand Trustworthy High quality Comfort Image Shelf-stable food mixes Competence Side dishes Baking products Meals Desserts Ranges Good taste Easy to prepare Good taste Easy to prepare Good taste Convenient Good taste Convenient Benefits Baking mixes Frosting/Icing Flans/ Puddings Potato mixes Salad top-pings Helpers Bowl Appétit! Products Mashed potatoes Rice Pasta Varieties Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

40. Bowl Appétit!’s strategy Betty Crocker invests market-based assets in Bowl Appétit! • Betty Crocker brand has: • A reputational asset • Customers are willing to pay more • A relational asset • Retailers will stock odd item (non-category) • Customers trust and are more likely to try • A knowledge asset • Product knowledge, knowledge of related categories, and shelf stable products. • Primary outcomes of market asset are positive • Accelerated cash flow • Through willingness to try new products • Reduced volatility of cash flow • Through loyalty and repeat business • Enhanced residual values of cash flows • Through willingness to purchase variants • Enhanced cash flows • Through willingness to provide shelf space and pay premiums Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

41. Bowl Appétit!’s strategy Bowl Appétit! brand equity relies on convenience and good tasting meal Bowl Appétit! Umbrella brand Delicious Convenient Image Shelf-stable dry single meals Competence Shelf-stable meals in a bowl Ranges Quick and good tasting meal: Easy and fast to prepare Delicious meal Benefits Pasta Rice Mashed Potatoes Products Varieties Three Cheese Rotini Sour Cream & Chives Macaroni & Cheese Alfredo Penne Pasta Herb & Chicken Southern Broccoli & cheese Butter & Herb Broccoli & Cheese Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

42. Bowl Appétit!’s strategy Bowl Appétit!’s Strengths and Opportunities support its strategy Opportunities Strengths • Ability to charge a price premium for premium food products • Ability to target large market segments and sustain minor changes • Ability to capitalize on a growing market • Can establish a category that will modify consumers’ tastes • Mass appeal products (comfort food) means large audience outside target group (room to grow) • Technology for shelf-stable foods that meet customers taste / quality expectations makes Bowl Appétit! a stage for further products • Betty Crocker brand name • Bowl Appétit! name • General Mills resources/distribution • Large number of SKUs (variety) • Shelf-stable (easy to store) • Differentiation in terms of target and design in shelf stable segment • High penetration amongst adults • High acceptance amongst younger singles and mature couples • Packaging (bowls) is trendy Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

43. Bowl Appétit!’s strategy Bowl Appétit!’s weaknesses expose some major challenges for a new brand Threats Weaknesses • Taste in some SKUs (rice & potatoes) • Low awareness • Low repeat • Low penetration in ethnic groups • Meal vs. snack/side dish confusion • Addition of hot water mitigates convenience • Hard to read fill line on package • Poor positioning / recognition in stores – confusion • Shelf stable connotation with high sodium, lack of health and dehydrated (tasteless) food • Packaging relatively large – difficult to store • Shelf stability severely limits product expandability • Uncle Ben’s or Lipton entering shelf-stable market • Stouffer’s low firing classics (bowl) reduce value added of Bowl Appétit! compared to frozen food. • Damage Betty Crocker’s brand equity. • Unhealthy and high sodium association with dry food • Category may not really exist • Once (if) category is established, it will be easy for new entrants to copy Bowl Appétit! • Convenience food is a fad • If health becomes more important, difficult to compete • Product may be surpassed by more convenient products – less time to prepare and/or less work to “make” Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

44. Bowl Appétit!’s strategy The strategy will leverage the key brand equity elements of BA!: delicious meal No-Go Areas • Inner core: key attributes • Outer core: other meaningful attributes associated with BA! • Extension Areas: Possible line extensions or product improvement ideas • No-Go Areas: Areas to avoid working – inconsistent with core attributes Difficult to prepare Not convenient Extension Areas Aggressive Add vegetables Add spices/gravy Low quality Non-food Add cool water Outer Core Soups Bad taste Non-bowl Fast Tasteful Bowl Mini bowls for tweens Radical Inner Core Less fat Easy to store Active Frozen Convenient Delicious Meal Easy to prepare High quality @ work Vending machines Caring Shelf-stable Homy Betty Crocker Fortified Snack places Shelf-stable non-dry Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

45. Bowl Appétit!’s strategy The strategy will leverage the key brand equity elements of BA!: delicious meal • From the possible extension areas, we chose those that will add more to the core brand attributes: delicious meal • Therefore the concepts are: • Add vegetables • Add spices/gravy • The vegetables will make BA! more of a meal. • The spices/gravy will make BA! more tasty. Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

46. Bowl Appétit!’s strategy BA! will pursue growth option in the same market but adding new varieties Same Market New Market • Vending machines • Snack bars • People @ work • Fortified with vitamins • Less fat • Add cool water Same Product • Mini-Bowl Appétit! For tweens and teens • Add vegetables • Add non-dry meat (2nd phase) • Add spices/gravy • Soup • Shelf-stable non-dry New Product Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

47. Bowl Appétit!’s strategy The brand vision is to make BA! part of active mother’s good meals option everywhere Vision • For those with an active lifestyle, Bowl Appétit! is the option for a quick and delicious meal. We would see Bowl Appétit! everywhere: at home, at work, at the gym. Women would feel good about eating it and giving it to their friends, family, relatives, and work colleagues. • Actual Brand Positioning Statement: • To busy mothers, Bowl Appétit! is the brand of convenient meals that is quick and delicious and helps them live their busy lives. • Desired Brand Positioning Statement: • To active mothers, Bowl Appétit! is the brand of convenient meals that is quick and delicious and helps them live their busy lives and feel good about having a good lunch anywhere. Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

48. Bowl Appétit!’s strategy In summary, the strategy chosen will leverage BA! Brand equity, will address key weaknesses and threats and will support the brand vision • Generating repeat customers addresses key weakness and make the product sustainable. • Improving taste and making it more of a meal supports brand visions: active mothers will have Bowl Appétit! and feel good about having a good lunch anywhere. • Improving taste and making it more of a meal will also leverage brand equity of Bowl Appétit!: delicious meal Strategy Generate repeat Concept 2 Concept 1 Improving taste Make more of a meal Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

49. Strategy and concepts Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook

50. Bowl Appétit!’s concepts Implementation of the strategy • Having successfully launched Bowl Appétit! with the clear message of convenience, the next stage is to drive repurchase by improving the products and enhancing the consumer experience. • Incremental improvements cut across the whole line of Bowl Appétit! Products. • Add instructions on adding spice and meat for more meal quantity/quality • Cold/hot water – the trend is moving to Pret a Manager (ready to eat). Eliminating boiling [and hot] water is expected in the future (The Shopper Report, May 2001) • The pasta line of products has been better received, therefore, no major modifications were made. • Staging offering for potential future meat introduction – rather than moving from one extreme end of the spectrum (no meat) to the other (meat), the use of an intermediary step can move consumer perception incrementally. Strategy Concept 2 Generate repeat Concept 1 Improving taste Make more of a meal Tim Christie, Ana Paula Guimaraes, Andrea Heilman, Fumiko Kotake, Marcelo Rosenburg, Raphael Yook