2
Overview
Intro Who is ConAgra? Role of Marketing Research
Product Price Placement Promotion The 5th P???
Kickstarting your Marketing Research Career
4
ConAgra Foods
• 2003 Sales $19.8 Billion2003 Sales $19.8 Billion
• 63,000 employees63,000 employees
• In business since In business since 18741874
• Headquartered in Headquartered in Omaha, NEOmaha, NE
• 80+ Brands80+ Brands
• 33 Brands with annual sales 33 Brands with annual sales exceeding $100 Million eachexceeding $100 Million each
• Food supplier in more than 70 Food supplier in more than 70 countries around the worldcountries around the world
• 2003 #50 in Fortune 5002003 #50 in Fortune 500
• 2003 #3 Consumer Food 2003 #3 Consumer Food Company in US and #5 in the Company in US and #5 in the worldworld
$29,
723
$25,
112
$19,
839
$17,
628
$9,4
31
$8,3
04
$7,9
49
$7,3
56
$6,1
33
$5,8
47
0
5000
10000
15000
20000
25000
30000
$ M
illio
ns
Top 10 Consumer Food Companies
#3 Consumer Food Company in the U.S.
Fortune Magazine, April, 2003
*FY 2003 Revenues
7
Role of Marketing and Market Research
Finance
Operations
Marketing/Market Research
Sales
R&D/Packaging
9
Product
What is positioning?
How do you position a brand? Strategic
A&U, Segmentation, Market Structure
Qualitative research
Quantitative research
Example:
Product Positioning:
13
Product
Product formula
Taste & texture
Ingredients
Preparation
Packaging Container type Graphics
Cost of goods
14
Price
Value = Benefits
Price
How do you determine price?
Benchmarking
Consumer testing
Price elasticity
Thresholds
15
Price
Example Base Price Elasticities
Pri
ce E
last
ic/S
ensi
tive
Price In
elastic/Insen
sitive
Cooking Oil-2.08
Dry Dog FoodDry Cat Food
-1.9
Coffee-1.5
TomatoSauce-1.25
FrozenBreakfast
-1.1
Baking MixIngredients
-1.0
Cough/ColdMedicine
-0.9
AdultToothbrushes
-0.65
NicheProducts
-0.6
Decongestants-0.4
-1Canned
Dog Food-2.0
Cat Litter-1.8
CannedTomatoes
-1.6Mustard
-1.3
BabyFood-1.2
Shampoo-1.1
InternalAnalgesic
-0.9
HouseholdCleaners
-0.8
Dry Soup-0.7
Mouthwash-0.5
Men’sFragrance
-0.3
Mid-Tier Sensitive
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Price
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
1.49 1.59 1.69 1.79 1.89 1.99 2.09 2.19
-
200
400
600
800
1,000
1,200
1,400
1,600
Profit
Vol(cases)
Price elasticity analysis helps identify the volume and profit relationship to price
17
Placement
Power shift to retailers
Outlet landscape is diverging
In-store placement is key
Shelf space – slotting
Store location
Arrangement
Out of stocks
18
Form
The “Tomato Matrix” shelf set simplifies the shopping experience
Brand-block set led by store brand, then followed by Hunt’s Horizontal form set with Whole and Diced on top, Sauce and Puree on the bottom
The Tomato Matrix Set simplifies the shopping experience bybest reflecting the category market structure
Tomato Matrix SetTomato Matrix Set
Specialty
Ro*Tel
Sauce/Puree
Paste/Crushed
Whole/Specialty
Diced
Diced/Stewed
Store Brand Hunt’sHunt’sDel Monte/Del Monte/ContadinaContadina
Bra
nd
Re
gio
na
l/B
ran
ds
Shelving
21
Promotion (continued)
Consumer promotions Coupons
Free Standing Inserts, in store
Sponsorships
Measuring ROI Event to event
Across a portfolio of products
Across geographies
22
Volume Decomposition
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
6/3/
2001
6/17
/200
1
7/1/
2001
7/15
/200
1
7/29
/200
1
8/12
/200
1
8/26
/200
1
9/9/
2001
9/23
/200
1
10/7
/200
1
10/2
1/20
01
11/4
/200
1
11/1
8/20
01
12/2
/200
1
12/1
6/20
01
12/3
0/20
01
1/13
/200
2
1/27
/200
2
2/10
/200
2
2/24
/200
2
3/10
/200
2
3/24
/200
2
4/7/
2002
4/21
/200
2
5/5/
2002
5/19
/200
2
Total Core Non ASM Trade
ASM Trade Consumer Promotion (FSI and ICM)
Total Advertising (TV and Radio)
Marketing Mix Modeling can break down incremental volume driven by different marketing activities.
Source: IRI Mix Drivers Model, Total US Food
Vo
lum
e S
ales
23
Kickstarting your Marketing Research Career
CPG companies often look for experience How do you get experience?
Start off at a research supplier Doesn’t have to be CPG focused
Or, pursue an internship Work at a research field site, even if it’s part
time while in school What qualities do they look for?
Intellectual curiosity Analytical mindset Able to challenge the status quo Action oriented Good juggler People person
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