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1. Progressing Progresso:5 Year Consumer-Focused Strategy for Market LeadershipTeam C6:Margaret GentileSatoko HiraiChristopher PowersMatthew RedmondAlex SirkinSteven Wang

2. 2Agenda

3. 3Agenda

4. 4Executive SummaryImplementation of our recommendations will increase our Net Present Value 19% to $2.7 billion

5. 5Implementation ProcessShared Values1Creating a Vision2Customer-centric thinking and actionInstitutionalizing New Approaches2Co-branding work with other GIS brandsStructure1Forming a Powerful Guiding Coalition2 Executive buy-in to vision and opportunityEmpowering Others to Act on the Vision2 Two-way communication with customersSystems1Communicating the vision2Use of online communityImprovements and Producing More Change2Enhancements to online communityStrategy1Establish a Sense of Urgency2Opportunity to gain market share and connect with consumersPlanning for and Creating Short-term Wins2Implementation of Balanced Scorecard1 Johnson, Leonard. “A Note on the 7-S Model”2 Kotter, John P. “Leading Change: Why Transformation Efforts Fail”

6. 6Industry OverviewProgresso is a strong #2 competitor in $1.6 B Ready-to-Serve (RTS) wet soup industry12Progresso Soup Sales byProduct Line34 weeks ending 12/01/07RTS Sales by Brand21 Calculated with equivalent unit data from AC Nielsen 2 Mintel Report: Soups – US – 20083 JP Morgan Analyst Report from Jan 08, 2008

7. 7The Road Behind, The Road AheadStrengthsWeaknessesPartnerships/first mover on trends

8. Product innovation

9. Good turn-over on booked sales1

10. Brand indifference of consumer

11. Customers purchase based on:TasteHealthPriceBrandOpportunitiesThreatsBuild brand preference

12. Continue exploring healthy eating options targeted towards women

13. Targeted ethnic-based marketing programs

14. Campbell’s push into healthy offerings through Select Harvest brand (Healthy Request line)2

15. Private label growth

16. Commodities prices and effects on inventory1 AC710 Presentation by Six Sigmas on General Mills; GIS: Financial Ratios. investing.businessweek.com2 Campbell’s Select Harvest Website URL: http://www.campbellsoup.com/select.aspx

17. 8Agenda

18. 9What Are Our Touch Points?“Each branding campaign should seek to identify ‘touch points’ — the media or location where it makes the most sense to locate and contact the target consumer.” Mark Addicks CMO, General Mills11 Knowledge@Wharton, November 20, 2008, http://knowledge.wharton.upenn.edu/article.cfm?articleid=2097Emphasis added

19. 10Online Community PlanGoal: Engage Progresso consumers in two-way communication via the launch of an online communityAction:Introduce integrated marketingProvide a space for promoters to celebrate the brandExpectation:Increase Net Promoter ScoreBuild brand preference

20. 11Importance of Women on RTS PurchasesDiet ProgramsGeneration ZDeciderApproverBuyerBaby BoomersGeneration XGeneration YGeneration Z

21. 12Integrated MarketingOpen BrandEngage consumersTwo-way communicationPRODUCTPACKAGINGDISTRIBUTIONCRMADVERTISINGCONSUMERChart from Professor Melvyn Menezes‘s Course Materials

22. 13Engage PromotersSmall groups of enthusiasts dominate online conversations1New community website will include:Recipe forum for including Progresso as part of a home-cooked mealWeight-loss communityCustomer feedback on new product introductions1 Marketing VOX Magazine

23. 14Agenda

24. 15Progresso Light: Opportunity“The sharp increase in those claiming to be watching their weight suggests a cultural shift to more awareness of food and relationship to overall health. There is a great opportunity for marketers, food retailers, and restaurants to focus on healthy eating—for the sake of overall health.”1 Mintel – Marketing Health to Women1 Mintel – Marketing Health to Women – US July 2007Emphasis Added

25. 16Light Product PlanGoal: Expand into the women’s Weight Watchers and self-designed diet marketsAction:Increase number of SKUs by 10 each in 2010 and 2011Expectation:Gain 42% market share by 2013Win over early adopters and early majorityNew product lines account for $342 million per year in additional retail sales

26. 17Current Diet Demographic ShareProgresso Light Adoption CurveCurrent4InnovatorsEarly MajorityEarly Adopters1 & 2 Estimated through “Interest in Dieting Slims Down; More Accepting the Extra Pounds,” The Boston Globe & http://factfinder.census.gov/servlet/STTable?_bm=y&-geo_id=01000US&-3 Estimated through Mintel - Soup - US – September 2008 , and 1 & 2 4 Estimated through http://www.quickmba.com/marketing/product/diffusion/

27. 18Entrance into Early MajorityProgresso Light Adoption CurveProjected 20133InnovatorsEarly MajorityEarly Adopters1 http://www.progressofoods.com2 Findings through primary survey data3 Estimated through http://www.quickmba.com/marketing/product/diffusion/

28. 19Agenda

29. 20Which Do You Prefer?Images: Margaret Gentile

30. 21SoupServer PlanGoal: Improve relationships with both retailers and consumersAction:Introduce SoupServers to 500 stores per year Expectation:Increase in sales of 5% in each store that installs the SoupServers11 Campbell’s Comes Out, http://www.strategymag.com/articles/magazine/20060701/biz.html

31. 22Campbell’s IQ MaximizerRepresents a shift in advertising philosophyMakes it easier to keep product organized on shelves1Improves shoppers’ perception of the brand79% of consumers say it makes shopping for soup easier2Reduces shopping time from 58 seconds to 8 seconds3Improves soup sales by 3.5 - 7% in any store in which it is installed451 Supermarket Displays '05, http://www.creativemag.com/supermktdisp1105.html2 Forum for Consumer Products and Retail Leadership, Vol. 7, No. 4, http://www.gmabrands.com/awardssurvey/campbellcpgaward.pdf3 Supermarket Displays '05, http://www.creativemag.com/supermktdisp1105.html4 Campbell’s Comes Out, http://www.strategymag.com/articles/magazine/20060701/biz.html5 Image Source Campbell’s Soup Display, http://www.retailpowerhouse.com/gallery/main.php?g2_itemId=673

32. 23How Progresso Can CompeteContract with outside firm to produce our own plan-o-gram, the SoupServerIntroduce SoupServers at a rate of 500 stores per year1The CanSolidator: http://www.shelfreliance.com/product/view/p79#Image: Margaret Gentile

33. 24SoupServer in ActionImages: Margaret Gentile

34. 25Agenda

35. 26Advertising PlanGoal: Persuade customers to buy on brandAction:Increase 2009 advertising budget to $50 million (20% over 2007) 1Annual 10% increases to budget (2010 – 2013)Balance advertising mixExpectation:Estimated 2009 sales increase $80.3 million1 Facenda, Vanessa L.�� "General Mills Outlook 'Healthy' with New Products, Increased Ad Spend."�� Brandweek, 2/22/2008Primary research by Team Six Sigmas, soup survey conducted October 17 – 25 Soups – US – September 2008, via Mintel

36. 27Getting Customers to Buy on BrandMagazine advertisements are more effective at:Building brand favorabilityIncreasing purchase intentionsEffect of Medium on CPG Brand Metrics – Average Percentage Point Increase (Exposed/Controlled)11MPA “Accountability II: How the Media Drive Results and Impact Online Success,” p. 24.

37. 28Advertising Mix ReallocationWe will rebalance our mix to emphasizeMagazine advertisingOnline advertising11Estimated from data by TNSMI Multi-Media Service andFacenda, Vanessa L.�� "General Mills Outlook 'Healthy' with New Products, Increased Ad Spend."�� Brandweek, 2/22/2008MPA “Accountability II: How the Media Drive Results and Impact Online Success,” p. 24.

38. 29Expected Return on Investment1The DMA 2004 Response Report, p. 256.2Estimated using data fromThe DMA 2004 Response Report, p. 256 andMPA “Accountability II: How the Media Drive Results and Impact Online Success,” p. 24.3Estimated using data from TNSMI Multi-Media Service andFacenda, Vanessa L.�� "General Mills Outlook 'Healthy' with New Products, Increased Ad Spend."�� Brandweek, 2/22/2008

39. 30Marketing Mix1 “Chef Michael Chiarello,” http://progressofoods.com/?View=CelebrityChef/ChefMichael2 “Semi-homemade Cooking with Sandra Lee,” http://www.foodnetwork.com/3 Websites of respective magazines4 MRI database5 Soup – US -- September 2008, via Mintel6 Commercial Weight Loss Programs – US – November 2005,‖ via Mintel

40. 31“All in Good Taste” CampaignTaste1,2Health1 http://www.students.sbc.edu/kitchin04/artandexpression/contemporary%20art.html2 http://avline.abacusline.co.uk/pictures/jpeg/pics/mona.jpgProgresso logos: General Mills website

41. 32Agenda

42. 33Progresso Light: Opportunity“CPG manufacturers and retailers will at worst successfully weather today’s difficult economic environment. At best, these companies will both reinforce their relationships with shoppers as well as implement price increase strategies that stick.” - Thom BlischokPresident, Consulting and Innovation Information Resources, Inc. (IRI)11 Blischok, “Successful Pricing Strategies: A Strategic Look Through the Affordability Lens”Emphasis added

43. 34Pricing PlanGoal: Build on success of recommendations to achieve a net increase in prices in a flat-growth industryAction:2009: Lower average retail price to $1.70/can2010-2011: 6% total increase to $1.80/canExpectation:Increase contribution 3X in conjunction with other recommendations

44. 352009 PlanRealize $20.6 million – 15.4% – increase in profits through strategic pricing1Price: $1.70Volume: 49 million cansMargin: $20.6 million1 Data from AC Nielsen used to conduct sensitivity analysis

45. 36Going-Forward PlanLeverage success of other initiatives to increase prices 6% total to $1.80 and maximize contribution1 Data from AC Nielsen used to estimate volume responsiveness

46. 37Agenda

47. 38Timeframe for Execution

48. 39Implementation ProcessShared Values1Creating a Vision2Customer-centric thinking and actionInstitutionalizing New Approaches2Co-branding work with other GIS brandsStructure1Forming a Powerful Guiding Coalition2 Executive buy-in to vision and opportunityEmpowering Others to Act on the Vision2 Two-way communication with customersSystems1Communicating the vision2Use of online communityImprovements and Producing More Change2Enhancements to online communityStrategy1Establish a Sense of Urgency2Opportunity to gain market share and connect with consumersPlanning for and Creating Short-term Wins2Implementation of Balanced Scorecard1 Johnson, Leonard. “A Note on the 7-S Model”2 Kotter, John P. “Leading Change: Why Transformation Efforts Fail”

49. 40Measuring with the Balanced Scorecard11 Kaplan and Norton, “Using the Balanced Scorecard as a Strategic Management System”

50. 41Competitive Responses

51. 42Agenda

52. 43ConclusionNPV of Progresso soup brand: $2.7 billionIncrease of $454 million, or 19%Recommendations are within the capabilities of both General Mills and Progresso to execute successfullyPerformance will be measured regularly using the Balanced Scorecard

53. Appendix

54. 45NPV Analysis

55. 46Corporate Social Responsibility121 http://www.yoplait.com2 http://www.progressofoods.com

56. 47Works Cited and ReferencedAC Nielsen Database - Soup��AP Digital, “General Mills finds winning recipe for stock gains,” BusinessWeek, October 17, 2008, http://investing.businessweek.com/research/stocks/news/article.asp?docKey=600-200810171647APDIGITLFINANCE__General_Mills_Gainers-1LLC76J4A2RLTJP6O0AHLJ9LQ5&params=timestamp||10/17/2008%204:47%20PM%20ET||headline||General%20Mills%20finds%20winning%20recipe%20for%20stock%20gains||docSource||AP%20Digital||provider||ACQUIREMEDIA||realtedsyms||%7CUS%3BGIS%7CUS%3BKFT%7CUS%3BHNZ&symbol=GIS, accessed December 2008��Barletta, Marti, “The Real Story Behind the Success of Dove’s Campaign for Real Beauty,” MarketingProfs, http://www.marketingprofs.com/7/dove-pro-age-primetime-women-barletta.asp, accessed December 2008.��Betty Crocker Website, http://www.bettycrocker.com/products/progresso/progresso-low-sodium.htm, accessed October 2008��Blischok, Tom, “Successful Pricing Strategies: A Strategic Look Through the Affordability Lens,” Information Resources Inc (Chicago, IL: 2008).��Burrit, Chris, “Campbell’s Soup savors Wal-mart Deal,” Edmonton Jounal, December, 5 2007, http://www.canada.com/edmontonjournal/news/business/story.html?id=736315f6-4723-4b4c-a284-fbf49732f629, accessed October 2008��Campbell’s Soup Company, “Campbell’s Welcome – Campbell’s Select Harvest”, Campbell’s Soup Company Website, http://www.campbellsoup.com/select.aspx, accessed October 2008.��Campbell’s Soup Company, “Campbell’s Chunky Soup – Soup that Eats Like a Meal.” Chunky Soup Website, http://www.chunky.com/, accessed October 2008.Campbell’s Soup Company, “Campbell’s Welcome – Campbell’s Smart Solutions: Homepage,” Campbell’s Soup Company Website, http://www.campbellsoup.com/starttasting.aspx, accessed October 2008.��Conant, Douglas, R., Campbell’s Soup Company, “Campbell’s Soup Company 2008 Annual Review: Letter to Shareholders 1,” Campbell’s Soup Company, http://www.campbellsoupcompany.com/annualreport2008/letter.asp, accessed October 2008.��CPG Grand Award Winner: Campbell Soup Company – Center Store Category Turnaround (2005), FORUM for Consumer Products and Retail Leadership, Vol 7, No 4 (Q3 2005): p. 84,Creative, the Magazine of Promotion and Advertising “Supermarket Displays ’05,” http://www.creativemag.com/supermktdisp1105.html, accessed October 2008D’Innocenzon, Lisa, “Campbell’s Comes Out,” Strategy Magazine, July 2006 http://www.strategymag.com/articles/magazine/20060701/biz.html, accessed October 2008

57. 48Works Cited and ReferencedFacenda, Vanessa L. “General Mills Outlook ‘Healthy’ with New Products, Increased Ad Spend.” Brandweek, February 22, 2008, http://www.brandweek.com/bw/esearch/article_display.jsp?vnu_content_id=1003712829, accessed October 2008.��Fredrix, Emily, “General Mills to Keep Expanding International Unit” WTOP.com, Associated Press, September 22, 2008, http://www.wtopnews.com/?nid=111&sid=1483005, accessed October 2008.��General Mills, “General Mills: Technology Submission” General Mills Website, http://www.generalmills.com/corporate/open_innovation/index.aspx, accessed October 2008.��General Mills, “CMO and His Imaginary Friends,” Knowledge@Wharton, November 20, 2008, http://knowledge.wharton.upenn.edu/article.cfm?articleid=2097��General Mills, “General Mills: Values,” General Mills Corporate Website. http:://www.generalmills.com/corporate/commitment/values.aspx, accessed November 2008��General Mills, Inc. May 25, 2008 Form 10-K (Filed July 11, 2008), via SEC EDGAR Database, accessed October 2008��General Mills Company, “Light”, Betty Crocker Website, http://www.bettycrocker.com/products/progresso/Progresso-light-landing-page.htm, accessed October 2008��General Mills Company, “100 Calorie”, Betty Crocker Website, http://www.bettycrocker.com/products/progresso/progresso-low-calorie-soups.htm, accessed October 2008Johnson, Leonard. “A Note on the 7-S Model.” BU SMG No. 97-03 (Boston University School of Management, 1997).Kaplan and Norton, “Using the Balanced Scorecard as a Strategic Management System”Kotter, John P, “Leading Change: Why Transformation Efforts Fail.” Harvard Business Review (March – April 1995): 3 – 10.��Learned, Andrea, “The Six Costliest Mistakes You Can Make in Marketing to Women,” Inc Magazine, January 2003, http://www.inc.com/articles/2003/01/25019.html, accessed October 2008.��Magazine Publishers of America, “Accountability II: How the Media Drive Results and Impact Online Success”, Magazine Publishers of America website, http://www.magazine.org/content/Files/AccountabilityII.pdf, p. 24, accessed December 2008.

58. 49Works Cited and ReferencedMahoney, Sarah, “As Supercenters Gain, Wal-mart Still Attracts the Affluent,” Marketing Daily, August 13, 2008 http://www.mediapost.com/publications/?fa=Articles.showArticleHomePage&art_aid=88412, accessed October 2008.��Mediamark Reporter, Fall 2007 Product, Household Products – Food Products, Category: Canned or Jarred Soup/Broth, Base: Principal Shoppers, Target, Used in Last 6 Months, via MRI database.��Mediamark Reporter, Fall 2008, Household Products – Food Products, Category: Canned or Jarred Soup/Broth, Base: Principle Shoppers, Target: Used in Last 6 Months, Progresso, Homemakers via MRI, accessed November 2008.��Michman, Ronald D., et al., The Food Industry: Marketing Triumphs and Blunders, (Westport, CT: Greenwood Publishing Group, 1998), p. 97-100.��Mintel - Soup – US – September 2008. Accessed October 2008.��Mintel – Attitudes of Women - Age 18-34 July 2008. Accessed October 2008.��Mintel - Commercial Weight Loss Programs – US – November 2005, via Mintel. Accessed October 2008.Mintel – Marketing Healthy to Women – US – July 2007, via Mintel. Accessed November 2008.��Progressive Grocer, “Center Store” Nov. 2006 Progressive Grocer Issue: 10, via LexisNexis, accessed October 2008.��Rolls,B.J., Bel, E,A,, Thorwart ML, American Journal of Clinical Nutrition, 1999, 70, 448-55.��Simpson, Steven, “Campbell Soup on the Simmer (CPB),” Investopedia Community, September 16, 2008, community.investopedia.com/news/ia/2008/campbell_soup_on_simmer_cpb.aspx, accessed November 2008.��Super Market News , “G-Win Forges Hundreds of Ideas for Innovation,” Supermarket News, May 20 , 2008, http://supermarketnews.com/news/g_win_0520/, accessed October 2008.

59. 50Works Cited and ReferencedSusan G. Komen for the Cure websiteSusan G. Komen for the Cure, “Susan G. Komen for the Cure | Partners & Sponsors | General Mills’ Pink Together”, Susan G. Komen for the Cure website, http://ww5.komen.org/Content.aspx?id=14302, accessed October 2008.��The DMA 2004 Response Report, The Direct Marketing Association (New York: 2004): 256��Tietell, Beth, “Interest in Dieting Slims Down; More Accepting the Extra Pounds,” The Boston Globe, September 21, 2008, http://www.boston.com/news/nation/articles/2008/09/21/interest_in_dieting_slims_down/, accessed October 2008.��TNSMI Multi-Media Service, Company/Brand $. Ad $ Summary, 2007, TNS-MI and Magazine Publishers of America, New York, NY��US Census Bureau, “Projections of the Population by Sex, Race, and Hispanic Origin for the United States: 2010 to 2050”, US Census Bureau website, http://www.census.gov/population/www/projections/files/nation/summary/np2008-t4.xls, accessed October 2008.��Team Six Sigmas, Primary soup survey conducted October 17 – 25.��Wong, Elaine, Brandweek “Soup War Continues, Progresso Strikes Back” October 8, 2008 http://www.brandweek.com/bw/content_display/esearch/e3i7e19cce243eb21aaa2048c8982be98f9?pn=1, accessed October 2008��Zuniac, Pablo, “US Food: A Review of the Latest RTS Soup Trends,” JP Morgan, January 8, 2008, p. 1, via Infotrac/Investext Plus, accessed October 2008

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