The Pillsbury Rbg Case Study

03/12/2017

MK 445 B1

Jiajie (Christine) Fang

Case Analysis 2: Pillsbury Cookie Challenge

The Pillsbury RBG business had lackluster performance and volume growth between 2004 and 2006. In particular, the refrigerated cookie product line’s annual volume growth was only one percent over the past three years. This is very concerning because the refrigerated-cookies product line represented over 75 percent of RBD’s category profit. Pillsbury’s main problem lies in its marketing initiatives, as the Canadian division often leveraged advertising from the United States – which fails to target the Canadian market. Therefore, Pillsbury is faced with the challenge of improving the segment’s performance and unlock growth in Canada.

Action plan

First, Pillsbury RBG cookies should recognize that its value proposition is its convenience and family appeal. Insights from the consumer research undertaken by the General Mills Consumer Insights team shows that shows that Canadian “Users” and “Lapsed Users” focus on RBG cookie’s quickness to make, spontaneity and the easiness to clean-up. The brand should target both “users” and “lapsed users” because they perceive refrigerated cookie dough as convenient. Pillsbury should not focus on targeting “non users” because this segment does not view refrigerated cookie dough as convenient. The ad should also address lapsed user’s insecurity about using products that took them away from their commitment to scratch baking. Therefore, Pillsbury should create an online ad that focuses on the utilitarian dimension by providing information on “how” RBG cookies are convenient and easy to use. The endorser should be a mother in her mid-30s to 40s with active and busy lifestyle. Exhibit 6 shows that Canada has a much higher number of scratch users. Therefore, the marketing message should focus on the “baking from scratch” experience and “easy to make” aspect that resonates with Canadian consumers.

Moreover, Pillsbury should produce a television ad that depicts a nostalgic and homey scene of a mother baking cookies with her children. This will create an emotional appeal and elicit an emotional response from Canadian consumers. Key findings from the in-home sessions and the workshop shows that the baking experience fuelled memories of happy moments. Therefore, the ad should focus the consumer’s attention on the emotional experience of Pillsbury’s product usage. Exhibit 7 shows that the purchase drivers of RBG products in Canada is based on how fun it is to bake with the kids, whether the kids like to make them and if it will be a fun activity with the kids. Therefore, Pillsbury should produce a TV ad that has emotional contagion – to induce consumers to vicariously experience a depicted emotion. Since cognitively based attitude are influenced by the communication source, the ad should feature a mother in her mid 30s-40s because ordinary people and women endorsers are perceived as credible sources.