1) What are the challenges that Ivan Guillen faces in his role as marketing manager of the RBG business?
As marketing manager of the RBG business, Ivan Guillen must propose a solution to repair Pillsbury refrigerated baked goods (RGB)’s business performance. Since the refrigerated-cookie product line consisted of 62% of RBG’s unit sales and over 75% of the company’s profits, Guillen found it appropriate to alter this segment in the market. Proposing this idea to GMCC would require Guillen to consider all the challenges he faces. Guillen will have to discover a strategy to increase household penetration since it has fallen to 24% in the past few years. The lack in market penetration has caused a miniscule growth of only one percent in the past three years. In order for Guillen to increase the penetration percent, he will need to reevaluate the “Kisses” commercial. The assessment of this advertisement revealed the lack of effectiveness for brand recognition and relevance. Introducing. Also, when reviewing the “Purchase Drivers In Canada As Compared To The US” it is apparent that consumers are concerned with the quality of the dough, the flavors offered, and the amount of cookies offered. Either Guillen is going to need to draw up a marketing plan that addresses these issues are alter the cookie in some way. Lastly, Guillen will have to conduct marketing research to understand the difference between Canadian and US markets. The “Kisses” commercial was adopted from the US and slightly changed for the Canadian market. Seeing as it failed to generate the projected annual growth of five to seven percent, there is a clear difference between the Canadian and US advertising markets.
2) What are consumer insights (in general)? What types of business challenges can benefit from consumer insights? How are these insights obtained?
Consumer insight is when a marketer researches unidentified/unmet needs in the marketplace or a new/better way to satisfy an existing need. The job of the marketer is to analyze the information and capitalize on the identified need. There are two main types of research, quantitative and qualitative. Quantitative research revolves around the measurement and analysis of relationships between variables. Random sampling techniques, like questionnaires and surveys, provide marketers with results that can be generalized to a larger population. Qualitative research, on the other hand, takes on a more understanding and conceptual approach. Through focus groups, marketers can gather an in-depth understanding of consumer behavior. The most common type of research used at GMCC are the focus groups. Focus groups are where a small group of people have a moderated discussion about a marketing-oriented issue. The group then summarizes its opinions and eventually comes to a solution they find fit. Summarizing all of the opinions of the focus groups can aid in new product development, brand messaging, and promotional campaigns.
Another type of marketing research GMCC uses are concept tests. Concept tests are commonly used to improve new product development and develop brand messaging. Concept tests provide an image of the product, pricing information, instructions, and key benefits to a consumer in verbal or visual form. The consumer then quantitatively evaluates the product by stating their degree of purchase intent. Lastly, GMCC also performs creative testing in order to evaluate the effectiveness of ads. When an add is put through the creative test, they are being judged on their purchase intent, relevance, and brand linkage scores. Having a powerful add that influences the consumer can significantly increase brand recognition. This “Kisses” commercial that Pillsbury had launched in Canada did not meet its expectations due to the lack of creative testing.
3) Given the key learnings from the usage and attitude study on pp 6-7 of the case, what are the...