BUS 210 - Pillsbury Cookie Challenge: Market Analysis and Strategy

This assignment analyzes the Pillsbury Cookie Challenge case study, focusing on the Canadian market for refrigerated cookie dough. It examines consumer needs, purchase drivers, and the differences in consumer behavior between Canada and the United States. The analysis explores the benefits of the Canadian market, including segment profiles and competitive analysis, while also highlighting the role of consumer insights in market research and how Guillen addressed organizational issues. The assignment also includes a financial analysis, calculating the number of additional units Pillsbury needs to sell to meet its profit growth objective. Key topics include the impact of scratch baking, convenience factors, and the role of mothers in cookie purchases. The document reveals how consumer perception, beliefs, and feelings towards the product affect marketing strategies and sales performance.

Pillsbury Cookie Challenge

Contents
Contents...........................................................................................................................................2
Explain any 3 fundamental needs of the customers that Pillsbury Refrigerated Baked Goods
provides for its customers? (2 marks – 1 for type, 1 for explanation).........................................1
Scratch baking is the dominant method of baking cookies in Canada............................................1
The top four purchase drivers are the same in both countries.........................................................1
Both users and lapsed users perceive refrigerated cookie dough as convenient.............................2
Explain the benefits of the Canadian market also define profit and competitive analysis of each
segment? (4 marks – 0.5 each for benefit segments, 0.5 each for profiles, 0.5 each for
competitive..................................................................................................................................2
analyses, 1 for analytically sound target market choice).............................................................2
How consumer insight help Guillen in market research..............................................................2
The team also suggest for conduct qualitative research in order to gain a better understanding of
consumer perception beliefs feelings towards the cokeei of the company. From the home
immersin visit and usage attitude study Gullien found the scarcth baking is dominat cooking
method in Canada most of their household use thie method. Both users and lapsed user use
perceive refrigerated cookie dough as convenient Mom’s practical ingenuity really shone
through in the kitchen......................................................................................................................3
How Guillen solve issue of their organization............................................................................4
Assume that General Mills sold $50 million dollars worth of RBG cookie dough in its............5
Last year, that it had variable costs of 30 million, and that its fixed costs were $15..................5
million, which resulted in a profit of $5 million. The average selling price per unit of..............5
cookie dough was $2 and variable costs were approximately 1.50............................................5
1...................................................................................................................................................5
All else.........................................................................................................................................5
remaining equal, and assuming that the company’s annual growth objective is based on..........5
profit rather than revenue or market share, how many more units of refrigerated cookie..........5
dough would Pillsbury have to sell in Canada to meet its minimum growth objective of..........5
5% in the current year?................................................................................................................5

BUS 210 003 Midterm Test
This test is out of 18 marks and consists of short answer questions.
The short answer questions in this section are based on the “Pillsbury Cookie Challenge”
case that
was circulated in advance and is located at the end of this test paper.
Explain any 3 fundamental needs of the customers that Pillsbury Refrigerated Baked Goods
provides for its customers? (2 marks – 1 for type, 1 for explanation)
 RBG cookies were available in multiple flavours and two formats: chub and ready-to-
bake, they need to introduce new verities for attract customers.
 There cookie will help in providing subsistence
 They need to use ingredients which includes full nutritientsas their cookie is full of made
up with calories
Write difference between consumer behaviour of Canada and United Stated? (5 marks – 1 for
relevant C,4 for explanation)
Scratch baking is the dominant method of baking cookies in Canada.
Out of the total number of households that bake cookies in Canada, 56 per cent bake only
from scratch and 33 per cent bake from scratch every month. In the United States, use of
refrigerated dough is the most popular baking method, and only 22 per cent of households
bake only from scratch (see Exhibit 6).
The top four purchase drivers are the same in both countries.
Convenience and taste rise to the top of both lists. Seventy-nine per cent of respondents agree
that RBG cookies are easy and quick to make. The largest gaps versus U.S. scores were on
quality and kid-request purchase drivers. The quality of cookie dough is not valued as highly
in Canada, and kids play a bigger role in driving purchases in this market (see Exhibit 7).
1

Both users and lapsed users perceive refrigerated cookie dough as convenient.
Lapsed users may no longer purchase the product; however, they do agree that RBG cookies
are easy and convenient. Non-users do not rate refrigerated cookie dough as convenient as the
other types of users do (see Exhibit 8).
Through the study, the team also learned that cookie dough purchases were impulsive; that the
use of refrigerated cookie dough was increasing, particularly among households with kids;
and that frequency of RBG cookie baking was similar in Canada and the United States.
Explain the benefits of the Canadian market also define profit and competitive analysis of each
segment? (4 marks – 0.5 each for benefit segments, 0.5 each for profiles, 0.5 each for
competitive
analyses, 1 for analytically sound target market choice)
Canadian cookie baking market
Benefit sought Convenient to make Fun to make with kids
Business Profile Busy individuals who have
busiy daily life schedule
thoes who like cokei but are
not good bakres
Mothers and childers for
their fun activityit will hwlp
in enhancing cooking skills
Competitive
analysis
(company vs.
competitors)
Company done less work as
compare to their rival
industries.
It is easier and convinier
then compare to baking
mix . They can done activites
which are not compusry for
kids
How consumer insight help Guillen in market research
Guillen decided to take take help from Consumer insight team for marketing research. This team
helps brand teams gain a better understanding of the preferences attitude and behaviour of the
consumer. Due to relative cost quick turnaround time the team famous for providing their
excellent serives to clinet. For RBG the team decided to conduct a usage and attitude study on
2

cookie cosumer. For this research the team focus on the frequency of product purchase and use
desirable attributes in products and sretnght and weakness of the product. Consumer are asked
about the perception they hold regarding the product and the brand and question that will help
develpop a profile of the product user. Through the anaylasis of this detail one gains insighr into
brand stranght in the marketplace potential new product ideas and ares where product can be
improved.
The team also suggest for conduct qualitative research in order to gain a better understanding of
consumer perception beliefs feelings towards the cokeei of the company. From the home
immersin visit and usage attitude study Gullien found the scarcth baking is dominat cooking
method in Canada most of their household use thie method. Both users and lapsed user use
perceive refrigerated cookie dough as convenient Mom’s practical ingenuity really shone
through in the kitchen.
When it came to feeding the family, solutions had to be relatively easy, quick, practical, and
affordable and pleasing to children, otherwise they were not worth consideration. Cookies
were particularly special because they were made for sharing and giving Brand Champions
and lapsed users had a lot in common – they were all devoted mothers that worried about their
children’s well-being. One of the few differences found was that brand champion stand to be
slightly more pragmatic, get-it-done types, while lapsed users were somewhat less secure
about decisions and products that took them away from their commitment to scratch baking
and into convenience-product territory. There were no concerns with the nutritional value of
Pillsbury cookies there existed a genuine love for Pillsbury as it could easily transform an
ordinary meal into something special. While some people felt that using a Pillsbury product
might have ‘cheating’ implications, others viewed it as ‘their little secret.’ Regardless, all
agreed that using a Pillsbury product was still far better than buying a ready-made product
because it involved effort and, therefore, represented an act of generosity. The baking
experience fed the senses and fuelled memories of happy moments.
There was an immediate sense of emotional warmth and well-being associated with baking,
and everyone in the home usually felt it. In fact, moms said that baking was the one thing that
was sure to put a smile on everyone’s face, and it made the moms feel good when they sensed
they had made a difference. All theses finding help Guillen during formulating strategies.
3

How Guillen solve issue of their organization
Guillen is a excellent manager he easily found out the problems and issues faces by company
and formulate plans to overcome the problem of slow growth rate of the company. With the
help of consumer insight team, he founded the causes of customers not attracted towards the
company and reasons of their slow growth rate, after identifying the causes and market
scanning he build policies and plans through which their company can attract customer and
increase their target market area Guillen felt confident that the studies his group had
conducted provided the team with new and insightful information that it could leverage to
develop a new marketing strategy on RBG cookies. With the presentation to the leadership
team coming up in a couple of months, Guillen knew he had a lot of work ahead of him. As he
reviewed all the new insights that were gained from the consumer studies, he wondered how
he could leverage these learning’s to increase the purchase frequency and/or market
penetration of cookies. What consumers should the team target? What should their brand
messaging be? How could they communicate this message in a relevant way to the consumers,
in a way that would translate into increased sales? He found answers of all the question and
formulates strategise through which their team can fulfilled all the set criteria.
4

Assume that General Mills sold $50 million dollars worth of RBG cookie dough in its
Last year, that it had variable costs of 30 million, and that its fixed costs were $15
million, which resulted in a profit of $5 million. The average selling price per unit of
cookie dough was $2 and variable costs were approximately 1.50
1
All else
remaining equal, and assuming that the company’s annual growth objective is based on
profit rather than revenue or market share, how many more units of refrigerated cookie
dough would Pillsbury have to sell in Canada to meet its minimum growth objective of
5% in the current year?
. (4 marks –1 for correct formulas, 2 for using correct numbers,
1 for correct answer)
Profit impact = (unit volume*unit contribution)-fixed costs
25000 50-20 *75000
225000 unit volume y2
5