22–39
4. Suppose your Great States lawnmower company has the market-product concentration
situation shown in Figure 22-4A. What are both the synergies and potential pitfalls of
following expansion strategies of (a) market specialization and (b) product
specialization?
Answer: Figure 22-4A depicts a market-product concentration strategy. The synergies and
potential pitfalls of the two strategies are summarized below:
BASIS OF
COMPARISON
(a) MARKET
SPECIALIZATION
(b) PRODUCT
SPECIALIZATION
Specializing in the city
market segment, the firm
R&D and manufacturing
costs can be expected to
5. The first Domino’s Pizza restaurant was near a college campus. What
implementation problems are (a) similar and (b) different for restaurants near a
college campus versus a military base?
Answer: Founder Tom Monaghan located his first pizza restaurant near a college campus
because he felt students would welcome an alternative to dormitory food. Military bases
may represent a similar opportunity because soldiers would welcome some variety as well.
Chapter 22 – Pulling It All Together: The Strategic Marketing Process
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6. A common theme among managers who succeed repeatedly in program
implementation is fostering open communication. Why is this so important?
7. In regard to implementing a marketing program, what are the advantages of (a) a
time-based agenda over a traditional agenda and (b) an action-item list over
traditional meeting minutes?
Answers:
8. In the organizational chart for the consumer packaged goods firm in Figure 22-6,
where do product line, functional, and geographical groupings occur?
9. Why are quantified goals in the planning phase of the strategic marketing process
important for the evaluation phase?
Chapter 22 – Pulling It All Together: The Strategic Marketing Process
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BUILDING YOUR MARKETING PLAN
Do the following activities to complete your marketing plan:
1. Draw a simple organizational chart for your organization.
3. In terms of the evaluation, list (a) the four or five critical factors (such as revenues,
4. Finalize your marketing plan based on the outline presented in Appendix A.
Answer: There are really wrap-up elements of the student marketing plans, two being
essential, and two being optional:
Helping with Common Student Problems
Our experience is that students are often overwhelmed with the thought of preparing a
marketing plan in the time frame instructors allot. Also, instructors are wary of grading these
Chapter 22 – Pulling It All Together: The Strategic Marketing Process
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TEACHING NOTE FOR VIDEO CASE VC-22
General Mills Warm DelightsTM: Indulgent, Delicious, and Gooey!
Synopsis
A new product, direct from Research & Development, isn’t a product until it is
marketed. In this video case Vivian Callaway, Vice President for the Center for Learning and
Experimentation at General Mills, explains how the marketing plan evolved for the “indulgent,
delicious, and gooey” Warm Delights™.
The first issue is the market environment of the cake category and dessert aisle. The cake
mix category is in decline, and the target market for cake mixes consists of women with kids
who prepare treats for groups of kids. But Vivian Callaway’s research showed that a single–
serve product priced at $2.00 was not a fit with this trend or target market. So targeting women
with kids would have been the conservative approach to building the marketing plan, and it
probably would have been less successful than what Callaway and her team decided to do.
Picking a target market requires looking at what the product benefits are and where likely
customers will be. Research revealed women (both with and without kids) were big consumers
of ice cream and chocolate—good proxies for a possible new product.
The marketing plan used very sensual TV advertising featuring women enjoying a quiet
snack, in-store displays, and packaging that emphasized the convenient microwave bowl to
reach this target market. Finally, the name Warm Delights brought the whole package
together, giving consumers the consistent message that this was a special treat.
Teaching Suggestions
This video case brings together the many elements that play a role in a successful product
launch. What should be emphasized is that a target market can be selected either (1) expediently
(moms with kids) or (2) through research and testing (women without kids). The latter is a new,
more risky target market for General Mills, but one that can experience potentially great success
in new product launch. All the elements of marketing are then brought together: product (and
packaging), price, promotion, and place (distribution).
Warm Delights is available at most grocery stores and supermarkets in the dessert aisle.
It is easy to microwave and prepare a Warm Delights dessert. Bringing the package to class, and
even taking a few minutes to prepare a sample, emphasizes the delicious, gooey characteristics of
Warm Delights.
With or without a hot Warm Delights dessert for a few class members, instructors might
ask these questions and keep track of the responses by women versus men:
1. Before reading Chapter 22 and the video case, how many of you have heard of Warm
Delights microwavable desserts?
Chapter 22 – Pulling It All Together: The Strategic Marketing Process
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2. How many of you have actually eaten one of these desserts?
• Among those of you who have eaten Warm Delights dessert, what did you think of
its: (1) convenience in preparation and (2) taste?
• Of those of you who have not eaten a Warm Delights dessert, what do you think
about its likely (1) convenience and (2) taste?
3. Looking at the snippets of TV ads in the video, what is the reaction of (a) women and
(b) men in the class to the product?
Surprisingly, a short time after Warm Delights was introduced, Guiltless Gourmet
launched a competing product named—ready for this?—“Dessert Bowls.” This was the second
name General Mills tested. Instructors might purchase one of each product from a local
supermarket and ask the class to compare the strengths and weaknesses of both products and
packages.
Answers to Questions
1. What is the competitive set of desserts in which Warm Delights is located?
2. (a) Who is the target market? (b) What is the point of difference on the positioning
for Warm Delights? (c) What are the potential opportunities and hindrances of the
target market and positioning?
Answers:
22–44
3. (a) What marketing research did Vivian Callaway execute? (b) What were the critical
questions that led her to conduct research and seek expert advice? (c) How did this
affect the product’s marketing mix (price, promotion, packaging, and distribution)
decisions?
4. (a) What initial promotional plan directed to consumers in the target market did
Callaway use? (b) Why did this make sense to Callaway and her team when Warm
Delights was launched?
5. If you were a consultant to Vivian Callaway, what product changes would you
recommend to increase sales of Warm Delights?
Chapter 22 – Pulling It All Together: The Strategic Marketing Process
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Epilogue
Chapter 22 – Pulling It All Together: The Strategic Marketing Process
22–46
TEACHING NOTE FOR APPENDIX D CASE D-22
Naked® Juice: Strategy for Growth1
Synopsis
Naked® Juice has earned a top spot in the fast growing, super premium juice category.
This is a category that has not escaped the notice of Pepsi, which recently acquired Naked®
Juice, as well as a number of other noncarbonated beverage companies in an attempt to
diversify its holdings from the declining carbonated and cola categories.
Teaching Suggestions
This case provides an opportunity to discuss strategy within a brand and across a
portfolio of brands and categories. It’s helpful to review material from Chapter 2, terminology
for portfolio analysis and strategy types, and the strategic marketing process, especially the role
of evaluation.
To get the discussion going, ask students what types of beverages they typically drink
and if that varies by season or time of day. See if anyone is familiar with Naked® Juice and
consumes the product. If the product is available locally, you might want to bring in a sample or
The second question below is a good point to introduce questions about what potential
synergy may exist for Pepsi and Naked® as a consequence of the acquisition. Is the deal better
for Pepsi or Naked® or will both benefit equally? Why are Coke and Pepsi growing through
acquisition rather than internal product development? Is this about expediency or an inability to
successfully innovate in noncarbonated categories?
Answers to Questions
1. What strategy(ies) has Naked Juice taken to reach its current market position?
Answer:
1 Case and teaching note was prepared by Linda Rochford, Associate Professor of Marketing at the University of Minnesota
Duluth.
22–47
2. Consider PepsiCo’s strategy(ies) in its beverage business. What are the implications
for Naked Juice in this portfolio?
Answers:
3. What key marketing metrics do you think PepsiCo should use to evaluate the
performance of Naked Juice? Would these measures be different for its traditional
carbonated soft drinks, and if so, how?
Chapter 22 – Pulling It All Together: The Strategic Marketing Process
22–48
b. Different for carbonated soft drinks. It’s important to remember that the basis for
Chapter 22 – Pulling It All Together: The Strategic Marketing Process
22–49
ICA 22-1: IN-CLASS ACTIVITY
How Far Can General Mills Go with Line and Brand Extensions?2
Learning Objectives. To have students (1) suggest some line and brand extensions and
(2) develop some generalizations about when a line or brand extension is or is not likely to work.
Definitions. The following marketing terms are referred to in this in-class activity (ICA):
• Line extension: A new product sold in the same product class or category but
consisting of a new flavor, size, model, application, etc. This an incremental
improvement of a product or line a firm already sells.3
• Brand extension: A marketing strategy in which an organization uses the same brand
name in a different product class or category in an unfamiliar market.
Nature of the Activity. To have students: (1) suggest new products to extend the
Cheerios® brand, (2) assess which line and brand extension ideas make sense and which ones
don’t, and (3) suggest some guidelines for developing line and brand extensions.
Estimated Class Time and Teaching Suggestions. About 15 minutes, taught in class in
two aggregate class teams.
Materials Needed.
• OPTIONAL: Buy boxes of Cheerios®, and 2 to 3 other varieties (Fruity, Chocolate,
Multigrain, etc.) as well as a Honey Nut Cheerios® Milk ‘n Cereal bar.
• Copies for each student of the:
a. Finding Line and Brand Extensions for Cheerios handout.
b. Finding Line and Brand Extensions for Cheerios Answers handout.
Steps to Teach this ICA.
2 The authors wish to thank Muffie Taggett and Denise Bosch of General Mills who assisted in the development of this ICA. Cheerios® and
Honey Nut Cheerios® are registered trademarks of General Mills and used by permission.
3 Abridged from the American Marketing Association Dictionary: Line Extension. See
http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=L#line+extension.
Chapter 22 – Pulling It All Together: The Strategic Marketing Process
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4. Click on the Internet icon “Cheerios TV Ad” to play a recent TV ad on Facebook for
Cheerios. [TRT = 0:31] Next, give students this background mini-lecture on General
Mills and the ready-to-eat (RTE) cereal market:
“In 1941, General Mills launched perhaps the most successful ready–to-eat (RTE),
cold cereal product—Cheerioats, whose name was changed in 1945 to the more
familiar Cheerios. For over 70 years, Cheerios had been a staple in the American
breakfast diet. Today, there are over a dozen varieties of Cheerios to satisfy the
palates of consumers that range from toddlers (it’s their first solid food) to seniors
(who are looking for the fiber inherent in the oat bran).
Why has Big G added these extensions to the Cheerios product line? According to
5. Divide the class roughly in half and assign students to one of two sets of teams—the
7. Have students from the Cheerios “Line Extension” and the “Brand Extension” teams
8. Ask representatives of both the Cheerios “Line Extension” and the “Brand Extension”
teams for their respective extension ideas and write them on the board.
9. Give each student from the opposite team two votes to show which ideas from the
other team’s list they like best and poll the students from that opposite team.
4 Ibid, pp. 7-13.
22–51
10. Ask students to explain why the top two ideas from each list are considered “best”
and their reasons.
11. Some key takeaways about what works and what doesn’t work:
a. Guidelines for line or brand extensions that do work:
• Consumer credibility with the new brand/product under the old brand name.
• Potential for significant new incremental sales and profits.
• Sales don’t steal or “cannibalize” those from the original brand.
• A perception of high quality for the new brand/product that retains the high
consumer regard for the original brand.
• Others as identified.
13. Here are some possible ideas, showing those Cheerios line extensions that are
currently offered.
14. Here are some possible ideas. Click on the Internet icon to show some of the
Cheerios brand extensions that are currently offered.
Chapter 22 – Pulling It All Together: The Strategic Marketing Process
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FINDING LINE AND BRAND EXTENSIONS
FOR CHEERIOS® ANSWERS HANDOUT
Brand
Kind of Extension
Line Extension
Brand Extension
• Cheerios (1941)
• Cinnamon Nut Cheerios* (1976)
• Honey Nut Cheerios (1979)
• Apple Cinnamon Cheerios (1988)
• MultiGrain Cheerios (1992)
• Cheerios and X’s (1993)
• Frosted Cheerios (1995)
• Team Cheerios* (1996)
• Millennios* (2000)
(2003)
(2003)
(2004)
• Strawberry Banana Berry Burst
(2008)
• Banana Nut Cheerios (2009)
• Chocolate Cheerios (2010)
• Big G Milk ‘n Cereal Bar: Honey
Nut Cheerios
• Original Cheerios Snacks Mix
(2008)
• Cheddar Cheese Cheerios Snacks
Mix (2008)
• Cheerios Animal Playbook (1999)
• Cheerios Cookbook (2005)
• Hot Cereal (?)
• Private Label Cereal (?)
(1997)
* Discontinued
Chapter 22 – Pulling It All Together: The Strategic Marketing Process
22–53
FINDING LINE AND BRAND EXTENSIONS FOR CHEERIOS® HANDOUT
BRAND
TYPE OF
EXTENSION
IDEA FOR EXTENSION OF
BASIC CHEERIOS BRAND
DOES
EXTENSION
WORK?
YES
NO
Cheerios
LINE
•
•
•
•
•
•
•
•
•
•
BRAND
•
•
•
•
•
•
•
•
•
•
Chapter 22 – Pulling It All Together: The Strategic Marketing Process
22–54
Connect Application Exercises
Application Exercise 1: Geely – Porter’s Generic Business Strategies
Activity Summary: In this case analysis activity, students first read an overview of Porter’s
generic business strategies. The overview is followed by a mini-case which discusses the
background and strategy of the largest privately-owned automobile manufacturer in China,
Geely. At the time of the case, Geely was making plans to enter the U.S. automotive market.
After reading the case, students answer four multiple choice questions which helps the student
choose one of Porter’s generic business strategies.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Strategic Marketing Planning
Learning Objective: LO 22-02 Describe Porter’s generic business strategies and synergy
analysis planning frameworks.
AACSB: Knowledge Application
Blooms: Analyze
Difficulty Level: 1 Easy
Follow-Up Activity: Instructors could ask students to evaluate the automobile industry using
Porter’s generic business strategies (cost leadership focus, differentiation strategy, cost focus
strategy, and differentiation focus strategy). Students can use their existing personal knowledge
Application Exercise 2: Synergy Analysis
Activity Summary: In this click and drag activity, students analyze ten companies (Ryka Shoes,
Dockers, Redken, Eukanuba, Clark Shoes, Burton, Asus, Alpina, Reebok, and Rollerblade) to
identify the company’s synergy effect. Students drag the company name to the proper synergy
effect drop zone (market-product concentration, market specialization, product specialization,
selective specialization, or full coverage). When students mouse over the company’s name, they
receive a hint which describes the company’s strategy.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Strategic Marketing Planning
Learning Objective: LO 22-02 Describe Porter’s generic business strategies and synergy
analysis planning frameworks.
AACSB: Analytical Thinking
Blooms: Analyze
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could begin by asking the students to draw the five market-
product grids which represent the alternate R&D and marketing strategies on the board as
Chapter 22 – Pulling It All Together: The Strategic Marketing Process
22–55
Application Exercise 3: Strategic Marketing Helps General Mills Adapt to New Tastes!
Activity Summary: In this 9-minute video case, students learn about the new-product
development process at General Mills using the strategic marketing process framework. General
Mills introduced Warm Delights in response to the target market’s changing tastes. Students
learn how General Mills used careful planning, implementation, and evaluation of its strategy to
satisfy its target market’s changing needs and wants.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Strategic Marketing Planning
Learning Objective: LO 22-01: Explain how marketing managers allocate resources.
LO 22-02 Describe Porter’s generic business strategies and synergy
analysis planning frameworks.
LO 22-3: Explain what makes an effective marketing plan.
AACSB: Analytical Thinking
Blooms: Analyze
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could ask students to investigate the current food trends in the