1. What is the competitive set of desserts in which Warm Delights is located?
The competitive set of desserts that Warm Delights is located in is baking mix products such as cake mixes, brownies, cookie mixes, etc. Indulgence treat desserts would also be a competitive set such as Little Debbie or Hostess snack cakes, ice cream or chocolate.
2. A. Who is the target market?
The target market is Women on the go with no children who want a small personal treat. The data revealed that this target market were the heaviest buyers of premium treats, this focused the team to advertise towards “her” and “What does she want?”
B. What is the point of difference in regard to the positioning for Warm Delights?
Point of difference regarding the positioning of Warm Delights is the convenience of it coming in a bowl, with no clean up required besides throwing the bowl away and maybe washing the fork. The $2.00 slightly cheaper price tag is also a point of difference comparing favorably against other single serving treats.
C. What are the potential opportunities and hindrances of the target market and positioning?
Potential opportunities of the target market and positioning of Warm Delights are that it’s affordable, convenient and eye catching to its target market. Some hindrances of the target market and positioning are that women on the go with no children as a market is extremely limited, branching out the target market towards kids and teens would help with the hindrance.
3. A. What marketing research did Vivian Callaway execute?
The marketing research that Vivian Callaway executed was collecting Primary Data in the process using an external approach of in store product test studies. They put Warm Delights on the shelf in real (different) stores and studied the sales. This gave them feedback from consumers on how they perceive the product and if they would use it.
B. What were the critical questions for which she sought research and expert advice?
The critical questions Vivian Callaway sought research and expert advice for were, who the indulgent treat customers were, and when the data revealed that the heaviest buyers were women without children, this focused them on the question “What does she want?” She also sought research and advice on shelving the product, where is the best spot to shelve this product? Is the cake isle ideal for this product because the average cake-aisle shopper is probably not browsing for an indulgent, single serve treat.
C. How did this affect the product’s marketing mix price, promotion, packaging and distribution decisions?
Price: When compared to other single-serve indulgent treats, Warm Delights price of
$2.00 closed matched competitors.
Promotion: The team used televised and store advertising.
Distribution: The team executed the shelving issue by using eye catching product
Displays outside the cake aisle to draw customers towards it to see Warm Delights many options.
Product: Created a smaller portion size to appeal to calorie conscious women. The name “Warm Delights” beat out “Desert Bowls”. The original desert bowl included nuts, after the study sales it was found that a desert bowl with nuts was not easy to prepare so they were removed.
Packaging: The packaging with the recyclable disposable bowl beat out the typical cake- mix packaging involving using your own bowl, making it more convenient for the consumer.
4. A. What initial promotional plan directed to consumers in the target market did Callaway use?
The initial promotional plan Callaway used was creating a product that was small, fast and microwavable and to place it in the cake aisle.
B. Why did this make sense to Callaway and her team when Warm Delights was launched?
Callaway and her team though this would resonate well with brand loyal customers since the product fit well with the family friendly Betty Crocker brand.
5. If you were a consultant to Vivian Callaway, what product changes would you recommend to increase sales of Warm Delights?
As a consultant to Vivian Callaway, the product changes I would recommend to increase sales of “Warm Delights” would be maybe trying a different target market, the younger consumer, change the packing to a more kid-friendly view, possibly create and add more flavors. Another great target market would be college students who stay in dorms, selling the product in college stores and cafeterias.