Pillsbury Cookie Challenge: Case Study Analysis

Ashwin Bist (6401459)

Matthew Cancilla (6679039)

Pearl Valdez (6706212)

Jianmin Zhu (5917562)

MKTG 2P52

01/28/2021
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I. INTRODUCTION

The Pillsbury Cookie Challenge study talks through the hurdles faced by Canadian

Pillsbury Refrigerated Baked Goods (RBG). Ivan Guillen, the marketing manager of the RBG

category at General Mills Canada Corporation (GMCC), was in charge of developing strategic

decisions on how to improve the RBG category’s business performance. To create a strategy,

Guillen planned to work in particular on the refrigerated cookie segment and improve its

performance because it was the most profit-making segment in the RBG category. Guillen also

worked with the consumer insights team to acquire a greater understanding of the attitudes,

behaviours, and preferences of the consumers of RBG’s cookies.

In the next sections of the case study analysis, the challenges that Ivan Guillen faced as

the marketing manager of the RBG business were identified. In the third section, the benefits of

the consumer insights in regards to the challenges faced by Guillen were explained. In the fourth

section, the learnings, implications, and actions in the case were illustrated. In the fifth section,

the use of in-home immersions and discovery workshops for the study were discussed. Finally,

the recommendations for the actions that Guillen and his team could do for the case were listed.

II. THE PROBLEM STATEMENT

During Guillen’s time as marketing manager for the RBG brand, he was faced with a

multitude of problems that were centred around Pillsbury’s iconic frozen cookies. The make-at-

home pastry company was having a difficult time maintaining revenue growth for its most

popular products. The company’s refrigerated cookie line was, at one time, synonymous with

various holiday seasons and wholesome family moments. Yet in the mid-2000s the fan-favourite

snack for kids around the nation saw little market growth and the product’s reach to consumers

was at the lowest it had been since the turn of the millennia. Guillen had a vast amount of
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pressure on his shoulders as he attempted to solve these problems, the refrigerated cookie

products made up more than half of the brand’s sales and over three-quarters of the profits for

Refrigerated Baked Goods. Guillen was tasked with analysing the approach that RBG’s

marketing was taking and had to further assess why the once-beloved product was no longer

resonating with the target market. It was clear that access to the product was not a problem for

RBG, Pillsbury products were available at every major grocer in the country. Pillsbury also led

the market within the realm of refrigerated cookies, making up over 80% of the pastry’s total

sales. Guillen needed to figure out why fewer products were moving off of the shelves and into

the hands of families across the nation.

III. CONSUMER INSIGHTS

Consumers play an important role in the success of a business. To achieve success, a

company must recognize the needs and wants of its consumers. Businesses use consumer

insights to better understand their consumers’ attitudes, behaviours, and preferences. The

consumer insights toward a product or a brand are collected and analyzed to assist businesses in

aligning their marketing strategies with consumer needs. In the Pillsbury Cookie case study,

Guillen planned to focus on generating new insights from current and potential consumers to

improve the cookie segment’s performance.

Consumer Insights Benefit To Business Challenges

The business industry faces many challenges such as financial management, cash

keeping up with the marketing trends, ensuring customer loyalty and satisfaction, and

competitions. Consumer insights allow businesses to overcome these challenges. An increase in

sales volume and financial growth of a particular business segment is an example of a business

challenge that can benefit from consumer insights. In the case study, Guillen needed to create a
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plan that would help enhance the performance of the refrigerated cookie segment. Guillen and

his team planned to profitably grow the RBG business by focusing on the growth of the

refrigerated cookie segment as it was the highest unit sales of RBG with 62% and over 75% of

the category’s profit. Guillen used the consumer insight approach to analyze and understand their

consumers' wants and needs, preferences, behaviours, and attitudes towards the RBG cookie

product of the company. As a result of consumer insights, businesses can make effective

strategic marketing decisions on their target market, product development, brand messaging, and

promotional campaigns that align with the needs of the consumers.

The Collection of Consumer Insights

Consumer insights are obtained through the data or information gathered from research.

There are many ways to collect consumer insights as there are many types of research that

businesses can use, but they must choose the most effective and beneficial that suits the industry.

The two main types of research are qualitative and quantitative. Quantitative research such as

questionnaires and surveys focuses on the analysis and measurement of relationships between

variables which makes it best to use for confirmation and clarification. Qualitative research such

as focus groups and ethnographies is the best use for exploration, perception, and revelation as it

seeks to collect a thorough understanding of behaviour. Once the research is done, results are

examined, and suggestions will be administered to the brand teams of a company, which will

assist the team to orient their marketing strategies with consumer needs. In the case study, the

General Mills Corporation Canada (GMCC) conducted numerous sorts of consumer research to

collect consumer insights. The company used the focus group research the most, whereby

selected individuals take part in a discussion about a specific area of interests. Concept tests were

another research type used at GMCC for new development of products and to help develop brand
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messaging. In the end, Lou Pasato, the consumer insights manager of RBG, proposed to Guillen

that they should perform a Canadian-specific usage and attitude study research on the cookie

consumers to understand the insights consumers hold about the brand and the product.

IV. LEARNINGS, IMPLICATIONS, AND ACTIONS

Key learnings:

1. When examining the households in Canada that bake cookies, more than half reported

that their primary means of making cookies is through scratch baking

2. The most impactful purchase drivers are the same in both Canada and the United States,

with the most impactful element being the convenience factor that is provided through

the cookie making process.

3. Both users and lapsed users perceive refrigerated cookie dough as convenient.

4. Lapsed users and conventional users alike agree that Pillsbury’s refrigerated cookies

greatly benefit from the aforementioned convenience factor

Implications:

1. The lack of influence that the refrigerated cookies have on the Canadian market can be

understood as a result from two separate issues; the target audience is not being reached

therefore they are not aware of the product, or the general public simply does not prefer

the product.

2. The two elements that contribute to the product’s sales are; the convenience of making

the cookies as well as the cookies overall taste. Yet, the Canadian market was not seeing

the value of the product. Children also have a massive influence on the decision to

purchase the product.

3. Though simplistic for the avid user to bake and consume, non-users failed to see the

conveniences being offered by the product in comparison to other cookie brands.

Actions:

1. Additional research should be conducted by Guillen and his team to better understand the

issues that are impacting the product. Revised ads and promotional campaigns could

potentially provide increased interest within the Canadian market. Further research would

be able to indicate what market segment requires additional focus.

2. Potential changes to the product itself could warrant a significant increase in sales. If

Guillen and his team campaigned to have the quality of the refrigerated cookies

improved, and this change was appropriately marketed, sales would most likely see an

increase. Advertisements and packaging that appeal to a younger audience could also

help revitalize the product, this can be achieved by increased use of the brand’s mascot.

3. If Guillen and his team target non-users and potential future consumers, sales and overall

interest in the product would increase dramatically. Non-users currently see the product

as inconvenient, if Ivan’s team were able to remedy this reputation it would breathe new

life into the iconic pastries.

V. IN-HOME IMMERSIONS AND DISCOVERY WORKSHOPS

In addition to the insights that were provided through the study, Guillen and his team

conducted both in-home and discovery workshops. These workshops brought increased attention

to the differences between the American and Canadian markets. These workshops were

conducted through Pillsbury with the assistance of TerraNova Market Strategies Inc. Both

studies were conducted for the purposes of discovering a better understanding of the consumer’s

perceptions, beliefs and feelings regarding the product and Refrigerated Baked Goods (RBG).
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In-home Immersions

Ethnographic studies, such as in-home immersions, act as a metaphorical window for

researchers and marketers to look into the life of the average consumer. The team conducted in-

home visits with two lapsed users and two brand champions. The participants were asked to

acquire the product before the study and to prepare them during the study. The study aimed to

better understand the dynamic the consumers had with the product as well as the efficiency of the

product within its intended environment. This study also allowed for the researchers to see the

impact of other external influences that arise when making the refrigerated cookies, such as

kitchen layout and internal family activities.

Discovery Workshop

The overall goal of the discovery workshop was similar in nature to that of the

aforementioned ethnographic study, that being the goal of acquiring an intimate understanding of

the relationship that customers have with the product after the point of sale as well as any

additional actions or motivations the customers have regarding the product. While the in-home

immersion took the researchers into the kitchens of the standard consumer, the discovery

workshop brought together 18-27 individuals for a workshop. Here consumers mapped out their

experiences and various methods such as role-playing were used to better express the consumer’s

thoughts and feelings on Pillsbury’s products. This helped researchers develop a further

understanding of the brand’s relationship with its target market.

Key Findings

TerraNova Market Strategies Inc. summarized recently acquired findings of the

ethnographic studies into the following six points:

● Mom’s practical ingenuity shone through in the kitchen.

○ This point relates to the parent’s ability to provide their children with a fun,

festive treat that is easy to make and cheap to buy. Demonstrating the overall

value of the product.

● The baking experience fed the senses and fuelled memories of happy moments.

○ This point acknowledges the fond memories that are created through the intimate

family moments of baking and enjoying festive cookies, as well as providing

parents with a sense of ease and enjoyment. Providing the product with a rare

sense of sentimentality and joy.

● Cookies were particularly special because they were made for sharing and giving.

○ One could argue that the enjoyment that is created through the shared moments

and pleasantness of making cookies is a secondary product that consumers

purchase when they choose to buy Pillsbury cookies. With the iconography of a

simple cookie becoming synonyms with happiness and family values.

● Brand Champions and lapsed users were similar but not in all ways.

○ This point outlines that the different segments of consumers have both similar and

separate needs, both of which need to be adhered to if the product wishes to

maintain relevancy among its base.

● There were no concerns with the nutritional value of Pillsbury cookies.

○ This point bluntly outlines that customers' primary concern is not the nutritional

value of the product as initially thought.

● Pillsbury had an integral sense of magic and was considered to be “a shared secret.”

○ This point articulates that Pillsbury’s success hindered on the company's special

ability to turn their basic cookie into something more. The invisible ‘it-factor’ that
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separated RBG from the competition is of great importance in getting customers

to purchase the product.

VI. RECOMMENDATION

The following are the actions we recommend:

1. Target Market - The brand’s target market consumer should be revised. Pillsbury RBG

products’ current target market is mothers in their mid-30s to 40s. Guillen’s team can

continue to prioritize targeting mothers and their families as their primary consumers.

However, they should also expand their target markets to younger people such as kids

and teenagers. Expanding the brand’s target market, especially to kids, who play a huge

role in driving purchases in the market, will improve RBG’s category performance.

2. Promotional Campaigns - Through their future marketing endeavours to promote their

refrigerated cookies, RBG should focus on increasing the impact of some of their mid-tier

purchase drivers. In Canada, the fact that the cookies are both easy to make and taste

good are the primary drivers of consumers' purchase. Looking at the comparisons

between the United States and Canada, it becomes clear that the biggest difference

between the countries' purchase drivers is the appeal that the cookies have to children.

The fact that the cookies can be made by both children and families alike allows for the

possibility for fun and wholesome family moments, an element that has been at the heart

of the Pillsbury brand. If the company were to redirect its efforts to marketing that family

or children appeal to the Canadian market, it is possible that a substantial amount of

growth would happen concerning sales and in-home penetration.

3. Brand Messaging - Based on the results and the data collected from the sessions, Guillen

and his team should look to change their branding message and give it more of a
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“sharing,” “family-friendly,” and “feel-good” type message for their baked cookie

products, which could help increase the purchase frequency and increased sales. The

advertisements and message should also emphasize how “simple” the product is to

prepare and how it does not require a lot of time.

4. Product Development - On products, the company can provide more flavours to attract

the tastes of children because they have a great impact on the purchase of biscuits. To

improve the quality of the product the company can provide dietary options to its

consumers, such as gluten-free, low-calorie or low-carb cookies. Create quick and easy

packaging, thereby reducing the time to prepare biscuits. Increase the viability of recipes

printed packaging. On the prices, they can maintain the same cost level as consumers

who have no complaints about high prices. On promotion, they can content designed to

attract children in the promotional plan. Place advertisements in prominent locations or

conduct marketing activities in schools. Convey the message that refrigerated biscuits are

both convenient and of high value. They can ask celebrities to introduce the usefulness of

the product, and they can use the recipes in the commercial package to attract the

attention of consumers.