Bowl Appetit

1. Bowl Appetit Monica Gaddy Rahul Gupte Amy Haller Matt Klein John LaBarca Amy Leyh

2. Table of Contents • Objective • Data Analysis • Problem Definition • Strategy Development • Concept Development • Appendices

3. Our goal is to achieve sustainable revenue growth Generate maximum level of sustainable growth in single-serve, shelf-stable food product revenues for the next three years How? • Create increased awareness and trial of product • Create a relevant connection of brand with consumers • Increase repurchase rate

4. Table of Contents • Objective • Data Analysis • Problem Definition • Strategy Development • Concept Development • Appendices

5. We conducted research to assess the current environment • Used Nielsen panel data to assess performance of shelf-stable category and individual Bowl Appetit product • Conducted competitive positioning research to determine how Bowl Appetit compares with core competition and substitutes • Conducted consumer research to determine current product perception and evaluate consumer needs and value sought within shelf-stable category

6. General Mills is attempting to serve an unmet need in a niche market • Bowl Appetit positioned as a single-serve hot lunch alternative • Targeted at women and at-home moms • Value proposition based on delivering a tasty, easy meal at an affordable price

7. Numerous focus groups identified existing product strengths 1 • Product viewed as a more convenient alternative than frozen foods due to storage issues • Ready-to-eat bowl perceived as a benefit • Consumers identified potential usage occasions as a lunch alternative to be taken out of the home • Low price-point of under $2 perceived to be benefit 1 See Appendix A for complete summary of Focus Group findings

8. The focus groups also identified several product weaknesses 1 • Product did not deliver on expectations of quality and taste • Product was not satisfying as a full meal • Preparation not as easy as competitive alternatives such as Instant Noodles and Chef Boyardee • Product perceived as unhealthy • Bowl Appetit name was not relevant to consumers • Betty Crocker core competency perceived as baked goods • Consumers do not make a connection between brand and shelf-stable meals 1 See Appendix A for complete summary of Focus Group findings

9. We identified five major competitive groupings • Noodle cups • Add water cups • Microwave cups with meat • Microwave multi-packs • Frozen

10. The competition has several advantages over Bowl Appetit 1 • Consumers more apt to try competitors’ products • Major competitors such as Kraft and Ragu have leveraged existing products to create line extensions with which consumers are familiar (i.e. Easy Mac and Ragu Express) • Promotions are needed to induce trial of Bowl Appetit • Higher percentage of Bowl Appetit bought on deal versus competition 1 See Appendix B for complete competitive analysis

11. In-store positioning is inconsistent1 • Bowl Appetit is positioned in varying areas depending on the retailer • Shelf-stable products found in Pasta, Soup, and/or Beans/Rice aisles • Products are positioned on different shelves across stores (sometimes eye level, other times floor level) • Causes customer confusion and makes the products difficult to find 1 See Appendix C for storewalk data

12. Table of Contents • Objective • Data Analysis • Problem Definition • Strategy Development • Concept Development • Appendices

13. Bowl Appetit is not meeting sales targets • Target household penetration benchmark of 10% not met1 • Current rates are 4.61% for rice and 5.46% for pasta2 • Target repeat purchase benchmark of 40% not met1 • Current rates are 19.23% for rice and 28.58% for pasta2 1 Steve Audette, Director of Consumer Insights, Meals Division, General Mills 2 Nielsen Panel Data

14. Through focus groups we identified attributes valued by consumers 1 • Convenience • Easy preparation • Taste • Low cost • A connection to the brand 1 See Appendix A for complete summary of Focus Group findings and Appendix D for SWOT analysis

15. Bowl Appetit is underdelivering on most attributes which consumers value

16. Focus groups also indicate Bowl Appetit targeted at the wrong consumer segment • Current target of women and at-home mom’s did not find the product to be a viable lunch alternative • Men found Bowl Appetit much more appealing than women • Men value convenience over taste, which can be an area of opportunity for current product

17. We also uncovered problems with the current distribution • Focus group findings indicate that consumers do not plan ahead for purchase of this product • Product found exclusively in grocery/club stores, where purchases are based on planned future consumption • Inconsistent placement within stores leads to consumer confusion

18. Table of Contents • Objective • Data Analysis • Problem Definition • Strategy Development • Concept Development • Appendices

19. We identified areas of opportunity to improve the value proposition 1 1 See Appendix D for SWOT analysis

20. General Mills needs to revise its strategy to meet sales objectives • Reposition Bowl Appetit as a convenient hot food alternative for anytime of day • Redefine target market • Rebrand to connect name with product • Expand distribution channels beyond the retail food chain

21. Reposition Bowl Appetit as a convenient hot food alternative for anytime of day • Emphasize convenience • Meal or snack on the go • Quick and easy alternative for dinner • Under 5 minute preparation time • Single-serve bowl included • Differentiate on quality and taste • Position as a better alternative to other shelf-stable products (not as an alternative to a home-cooked meal) • Expectations of taste must be met • Variety in product offerings • Offers more flavor than simple pasta or plain rice

22. Redefine Target • Target consumers who value convenience over the taste of a home cooked meal • Psychographic market segment: • Value convenience and taste at an affordable cost • Busy lives - do not have time to pack lunch, go out to eat, or spend time cooking a meal • At work • At school • Demographic market segment: • Single adults, skewing male • Middle-income

23. Rebrand product to connect name with product • General Mills needs to establish a relevant connection between the brand and the target consumer • Currently Bowl Appetit has no equity or relevance with consumers • Trial and awareness low • Repurchase rate low

24. Rebrand product to connect name with product • Need to ensure that product name resonates with target market • Need to ensure that product name describes the experience • Name should symbolize convenience, taste and quality • Name should present a filling food alternative • Name should not position as an alternative to home-cooked meal • General Mills has resources available to reintroduce product under new brand

25. Expand distribution channels beyond the retail food chain • Current distribution only in supermarkets and club warehouses – requires advance purchase decision • Gain distribution of product through alternative channels – make purchase occasion more convenient • Convenience stores • Delis • Corporate lunch kiosks • Catering services • Utilize sales force expertise to forge new partnerships

26. General Mills has the capabilities to be successful with this strategy • Marketing expertise • Segmenting consumers and developing a marketing plan to reach selected target • Well-known brands associated with quality and premium taste • Core competency in launching packaged foods • R&D expertise • Strong sales force, experienced in negotiations, developing relationships and forging into new territories

27. Table of Contents • Objective • Data Analysis • Problem Definition • Strategy Development • Concept Development • Appendices

28. Two new concepts will leverage opportunities to improve value, emphasizing convenience & size • Larger sized full meal • Single serving side dish

29. The two new product concepts provide offerings for anytime of day Morning Noon Evening Meal Preference Breakfast Lunch Dinner 1. Snack/Side Dish 2. Lunch and Dinner needs will be addressed by the Full Meal offering Snacking and smaller dish needs will be addressed by the ‘On the Side’ offering

30. Meals made Easy Spaghetti and Tomato Sauce 5.2 oz. ‘Meals made Easy’ offers a full meal as well as convenience Ingredients: • 5.2 ounces of Pasta or Rice • Potato will be dropped for this line Flavors: • Pastas include current selection plus protein offerings such as tuna in a vacuumed-sealed pouch • Rice offering will include protein such as ‘red beans and rice’ Preparation: • One step preparation: add hot or cold water, microwave and eat! • Consistent preparation throughout line Packaging: • Deep bowl • Visible fill-line

31. The value proposition offers full meal satisfaction with convenient preparation • Formulated to offer taste and quality expected of the Betty Crocker brand • Many great flavors including Red Beans and Rice and Fettuccini Alfredo • Packaged in a large bowl for convenient one-step preparation • Just add water to dry pasta or rice and heat in bowl • Filled with hearty single-serve portions

32. The full meal offering can target consumers from many competitive groupings • Frozen Main Courses • Frozen Complete Dinners • Frozen Pizza • Lunch Combos/Kits • Canned/Jarred Spaghetti and Macaroni • Complete Packaged

33. Competitive Groupings – Frozen Main Courses • Brands include Budget Gourmet, Croissant Pockets, Healthy Choice, Hormel Foods, Lean Cuisine, Stouffers, Swanson • Switching Logic • Freezer storage less convenient • Price • Switching “Risks” • Health factors • Taste • Market Size • $6.403 billion1 1 See Appendix F for Market sizing

34. Competitive Groupings – Frozen Complete Dinners • Brands include Healthy Choice Dinners, Le Menu Healthy Dinners, Stouffers Dinner Supreme, Swanson’s Hungry Man • Switching Logic • Freezer storage less convenient • Preparation time • Switching “Risks” • No side dish/less variety • Portion size • Market Size1 • $4.724 billion 1 See Appendix F for Market sizing

35. Competitive Groupings – Frozen Pizza • Brands include DiGiorno, Jeno’s, Red Baron, Tombstone, and Totino’s • Switching Logic • Freezer storage less convenient • Preparation more convenient • Healthier offering • Switching “Risks” • Taste • Its PIZZA! • Market Size1 • $6.558 billion 1 See Appendix F for Market sizing

36. Competitive Groupings – Lunch Combos/Kits • Brands include Charlie’s Lunch Kit (Starkist), Hormel Lunch Kit, Lunchables (Oscar Meyer), and Tastefuls (Jimmy Dean) • Switching Logic • Longer “shelf life” • Premium taste • Variety • Switching “Risks” • Preparation time • Convenience away from home • Market Size1 • $1.419 billion 1 See Appendix F for Market sizing

37. Competitive Groupings – Canned Spaghetti & Macaroni • Brands include Chef Boy-ar-dee, Franco American, Hormel Micro Cup, and Ragu Pasta Meals • Switching Logic • Premium taste • Healthier offering • Portion size/heartiness • Variety • Switching “Risks” • Cost • Preparation convenience • Market Size1 • $1.169 billion 1 See Appendix F for Market sizing

38. Competitive Groupings – Packaged Prepared Dishes & Dinner Mixes • Brands include Hormel/Dinty Moore Microwavable Meals, It’s Pasta Anytime, Kraft Macaroni & Cheese, Lipton’s Noodles & Sauce, Ramen • Switching Logic • Portion size • Premium taste • Preparation time • Healthier offering • Switching “Risks” • Variety • Market Size1 • $4.402 billion 1 See Appendix F for Market sizing

39. ‘Meals made Easy’ will complement General Mills’ resources and capabilities By successfully addressing the need for a full meal offering, Meals made Easy will fulfill General Mills’ goal having market-leading products.

40. Distribution channels are the key to the success of the large size offering • Grocery stores: • Available at all major chains and local grocers • Place consistently in the pasta aisle • Catering services/Vending: • Partner with catering companies to penetrate corporate and educational institution cafeterias • Use vending channels to place product in kiosks and machines • Convenience stores • Place in major chains and drug stores • Target those individual stores positioned in heavy commuter routes • Club stores • Variety and multi-pack offerings

41. Pricing and promotional strategies will drive sales • Pricing of the full meal offering should reflect its quality and size, while being mindful of the cost-conscious consumer • Suggested retail price $3.29 per 5.2 oz. bowl • Small price premium above competition works to communication product’s distinct value proposition • Promotions should occur at the beginning of the lifecycle to bring awareness to the new products • Co-promotions with complementary products like the side-dish offering should occur to continually encourage trial

42. Sides made Easy Southwestern Style Rice 1.25 oz. The second concept is a side dish providing a complement to main dishes or as a snack food product Ingredients: • 1.25 ounces of Pasta, Rice, Vegetables, Potatoes Flavors: • Pastas include tomato and cream based offerings • Rice will include current offering as well as new flavors • Mixed Vegetables, Corn, Green Beans, etc. • Mashed Potatoes, Potatoes Au Gratin, etc. Preparation: • One step preparation: add hot or cold water, microwave and eat! • Consistent preparation throughout line Packaging: • Deep bowl • Visible fill-line

43. ‘Sides made Easy’ will provide significant value to its customers • Formulated to offer taste and quality expected of the Betty Crocker brand • Many great flavors including Potatoes Au Gratin • Packaged in a small bowl for convenient one-step preparation • Just add water and heat in bowl • Ideal complement to single-serve portion meals • Single serve size eliminates wasted leftovers

44. The side dish offering targets consumers from many competitive groupings • Canned Vegetables • Instant Rice/Potatoes • Fresh Produce • Frozen Vegetables

45. Competitive Groupings – Canned Vegetables/Beans • Brands include Dole, Del Monte, Bush Beans, Campbell’s, and Van Kamps • Switching Logic • Convenient • Taste • Variety • Switching “Risks” • Health • Market Size1 • $4.4 billion 1 See Appendix F for Market sizing

46. Competitive Groupings – Instant Rice/Potatoes • Brands include Uncle Bens, Zatarain, Minute Rice, Success • Switching Logic • Convenience • Portion size • Taste • Switching “Risks” • Price • Market Size1 • $5.7 billion 1 See Appendix F for Market sizing

47. Competitive Groupings – Fresh Produce • Products include fruits and vegetables • Switching Logic • Non-perishable • Portion size • Convenience/storage • Switching “Risks” • Health • Price • Taste

48. Competitive Groupings – Frozen Vegetables • Brands include Green Giant and Birds Eye • Switching Logic • Portion size • Storage convenience • Switching “Risks” • Taste • Price • Market Size1 • $4.1 billion 1 See Appendix F for Market sizing

49. Distribution channels are the key to the success of the small side offering • Grocery stores: • Available at all major chains and local grocers • Place consistently in the pasta aisle • Vending: • Use vending channels to place product in kiosks and machines • Club stores • Variety and multi-pack offerings

50. Pricing and promotional strategies will drive sales • Pricing of the side dish offering should reflect its quality and convenience, while being mindful of the cost-conscious consumer • Suggested retail price $0.79 per 1.25 oz. Bowl • Priced such that a consumer can buy two sides and still keep the price of a full meal under $5. • Promotions should occur at the beginning of the lifecycle to bring awareness to the new products • Co-promotions with complementary General Mills products such as Hamburger Helper and Progresso should occur to continually encourage trial