General Mills Canada Corporation (GMCC) is looking to stimulate some growth into their refrigerated baked goods (RBG) division. The past few years have seen less than ideal growth and Ivan Guillen, the head of RBG, is looking for ways to increase sales volume. Guillen has noticed that a lot to the success of the RBG division comes from the refrigerated cookie product line, and hopes to increase the sales volume in that product line.
GMCC is the second largest division of General Mills Inc.’s International segment. With over 60 years’ experience in the food-product manufacturing industry, General Mills Inc. has grown to become the sixth largest food-product manufacturer in the world. General Mills owns many iconic brands like Betty Crocker, Green Giant, and Cheerios and is a well-known to consumers as a grocery staple.
The refrigerated cookie product line is the key component of the RBG division and is broken down into two formats, chubs and ready-to-bake. However, both these formats had the same appeal, a quick and easy product that can go from the refrigerator to oven within minutes. The target market for this line was mothers with busy schedules who would want an easy to make alternative to baking from scratch.
After conducting some research into the consumers perceptions of Pillsbury refrigerated cookies as well into consumer baking habits, Guillen was ready to decide on an alternative. Three different options were considered along with the idea of maintaining the status quo. These options are listed below:
Increase purchase frequency.
Increase market penetration.
Increase both purchase frequency and market penetration.
Maintain Status Quo.
Ultimately it was decided that the RBG division should seek to increase the market penetration as this would have greater impact than trying to encourage consumer to buy more often. This would be done through the use of samples and demonstrations as well as promotions such as coupons. The focus...