Pillsbury - Assignment Work

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Drew University *

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101

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Marketing

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Feb 20, 2024

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docx

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3

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Assignment 2: Matthew Duarte Read the case: Pillsbury Cookie Challenge NOTE: This is an individual assignment, not a group assignment. While you may discuss the case with your fellow students, under no circumstances are you to collaborate or copy anyone else’s paper. Assume you are an external consultant to the company, and they want your recommendation on which segment to target to achieve their growth goal. Specifically, they want to know which usage-based segments described in the case they should target – a) refrigerated cookie dough-only users (which includes current customers) b) scratch-only bakers c) cookie mix-only users d) lapsed users. We are not targeting demographic segments like moms or kids. Moms and kids are all included in the various usage-based segments. 1. What are the pros and cons of targeting each segment? (One argument for and one argument against targeting each segment). 2. If they only had resources to target one segment, which one would you recommend? 3. Which segment represents a blue ocean opportunity for Pillsbury? Response Format: Your typed response to questions 1, 2 and 3 should be no greater than 2 pages single spaced, 11-point Times New Roman or equivalent font. Focus on answering the questions directly rather than summarizing the case.
1. 1. Pros and Cons of Targeting Each Segment: a. Refrigerated Cookie Dough-Only Users: Pros: This segment is one that already includes current customers, which means there's an existing customer base to work with. It might be easier to keep these costumers coming back as well as maybe raising the price to them as well. Cons: The market for refrigerated cookie dough-only users makes the target market of consumers small which can limit potential growth. Competitors may also be targeting this segment. b. Scratch-Only Bakers: Pros: This segment can have a strong preference for baking from scratch, and Pillsbury can use this to its advantage and present their products as convenient and high-quality alternatives. Cons: Convincing scratch-only bakers to switch to Pillsbury products may be challenging, since they value the homemade nature of their baking. c. Cookie Mix-Only Users: Pros: This segment may be seen as a time saving alternative, making it easier to market Pillsbury cookie mixes as a time-saving solution. Cons: Cookie mix-only users may have concerns about the quality and taste compared to scratch baking since it is not truly homemade d) Lapsed Users: Pros: Lapsed users were once customers, so there's a chance to win them back with targeted marketing and promotions. Cons: Lapsed users may have switched to competitors or changed their preferences, which makes it harder for them to think to want to switch back. 2. If Pillsbury only had resources to target one segment, the segment I would tell Pillsbury to target is the refrigerated cookie user. The top 2 things that consumers look for when making cookies are convenience and taste, which is exactly what refrigerated cookies are made for. They are quick and easy to make, and they also are enjoyable to eat. When looking at it from a business perspective the Pillsbury cookie brand is mainly targeted towards the refrigerated cookie consumer market and is where most of the profit comes in. In the case study it states that “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.” This helps to reinforce my decision to target the refrigerated cookie consumers since the market is built upon both convenience and taste and since the refrigerated cookies reach both, it makes it a great segment to push the market in. Another aspect of why Pilsbury should target the refrigerated market is because of their preexisted market in the refrigerated cookie area. This makes it a safer market for them to target since they already know the consumer base they have as well as a guaranteed
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