The marketing plan summarizes research that found Canadians have different baking preferences than Americans. It recommends developing a Canadian-specific marketing campaign (Alternative 2) to address these differences and position Pillsbury cookies as a fun family baking experience. The campaign would include new TV ads showing Canadian families baking together. It also considers increasing purchase frequency among existing customers (Alternative 1) and introducing new flavors/products (Alternative 3) if needed. The objectives are to increase annual category growth to 5-7% by focusing on the profitable cookie segment.

1. Pillsbury Cookie Challenge
Marketing Plan
Date 2017-09-27
Presented by:
Tang, Si (Recorder)
Carstensen, Micheal
Knelsen, Brenda
Pratheeharan, Dushyanthy
Schmitz, Nicholas
Ghorbani, Negin

2. Executive Summary
Ivan Guillen had worked as the marketing manager for RBG (refrigerated baked goods) at GMCC
for two years and had witnessed stagnant growth and fallinghousehold penetration,which
Guillen wanted to change. To find out the cause,Guillen conducted consumer insights that
involved qualitativeresearch (in-depth studies conducted at consumers’home or with large
groups of people) and quantitativeresearch (measurement and analytic based to discover
different variables,e.g. questionnaire).
The resultprovided some strikingdifferences which was previously thought to be almostthe
same. Significantdifferences were: prevalence of scratch bakingin Canada (61%Canadian vs
49%), Canadian mothers’ view of having fun with kids,and Canadian kids’viewof a fun activity.
As for bakingmethod,
RBG plays such an importantrole at GMCC. 75% of RBG profitcame from cookiesales.Almost
half (43%) of GMCC’s 2006 salecamefrom RBG category. Generally,when cookie sales
performed well, other products in RBG tended to perform well.
There are four alternatives thatare discovered for Guillen:
1. Market existingcustomers to increasepurchasefrequency
2. Development a marketing campaign specifically for Canadian market
3. Introduce Canadian specific newflavours and products
4. Status quo
We have recommended developing a Canadian specific marketingcampaign (Alternative2) to
address the findings of consumer insightin order to offer a better bakingexperience to scratch
bakingusers:a better way to have fun with kids and sharetime with family usingless timeand
effort, which existingadvertisement did not address based on Canadian climateand consumer
preference.
Meanwhile, Alternative 1 is used to address customer retention and migratingexistingnon-
frequent users to brand champion,ensuring,first,GMCC does not looseexistingcustomer base
to outsidecompetitors, and, second, pavinganother way of generating more profit.
Should the alternatives don’t work as intended, we would followAlternative 3 after studies with
focus group, concept tests, evaluator’s tests, and creative testing done prior to launchinga new
product designed for Canadian market.

3. Company Name
11/23/2017 Marketing Plan page 3
ProblemStatements
Main problem: How to increasein productsales under the circumstancethat the sales had been stagnant
in the pasttwo years, and increasehousehold penetration?
Other problem
 Current marketing plan,borrowed directly from its USA counterpart, did not seem to work.
Company Objectives
GMCC intended to achieve annual category growth of 5% to 7%. Historically,when cookies performed
well, the entire category tended to perform well. Among the category of refrigerated baked goods (RBG),
cookies was the most profitable.Therefore, GMCC wants to focus on the growth in cookiesales.
Company Background
General Mills in Minneapolis, MN,which had three operating segments: U.S. retail,International,and
food service,owns General Mills CanadaCorporation (GMCC) that operates completely autonomously
from its parent company. GMCC had four business units:breakfast,baked goods, meals,and snacks,in
which these units were divided to 12 categories. Each category had a dedicated marketing team (headed
by managers likeIvan Guillen),and all the teams worked with cross-functional partners.Baked goods
were further divided into “categories” such as RBG, pizza snacks,mixes and frozen breakfastfoods.
The category of RBG’s most profitablestock keeping unit(SKU) was cookies.It represented 62% of RBG’s
total unit volume and 75% of RBG’s profit. GMCC held No. 1 or No. 2 in virtually all thecategories it
competed in. Its Pillsbury brand was widely accepted in Canada and had been in presence for more than
40 years.The Pillsbury Doughboy still played a key rolein brand advertising.
SituationAnalysis
Strengths
 Brand name recognition
 Cute Pillsbury Doughboy
 RBG products are easy to make
 Strong distribution channels
 Good productplacement in stores
 6th largestfood manufacturer
 GMCC is a leader in the Canadian packaged foods
 85% Market sharein refrigerated baked goods category
 Pillsbury products areknown for convenience and family appeal
Weaknesses
 Focus on cookie performance
 US ads adapted to Canadian marketrather than created for Canadian market
 Household penetration in Canada only 24%
 Lack of understandingof Canadian market
 Focus on TV ads instead of other forms of media

4. Company Name
11/23/2017 Marketing Plan page 4
 Volume growth at 1% in the pastthree years,nearly flat
 Cookie commercial “Kisses”campaign worked fine in the U.S. but not Canada
Opportunities
 Focus on cookie performance
 US ads adapted to Canadian marketrather than created for Canadian market
 Household penetration in Canada only 24%
 Lack of understandingof Canadian market
 Focus on TV ads instead of other forms of media
Threats
 Focus on cookie performance
 US ads adapted to Canadian marketrather than created for Canadian market
 Household penetration in Canada only 24%
 Lack of understandingof Canadian market
 Focus on TV ads instead of other forms of media
Market Analysis
Accordingto Agricultureand Agr-Food Canada,“the bakery market in Canada,includingfrozen bakery and
desserts,registered total valuesales of C$8.6 billion and total volumesales of 1.2 million tonnes in 2011.
The bakery category was the second-largestsegment in the total packaged food market in Canada,
representing 17.6% of valuesales in 2011.However, the proportional sales of this category,relativeto
other sub-categories,experienced a slightdeclinein each year over the 2006-2011 period.”(International
Markets Bureau, 2013).
GMCC had been performing poorly between 2006 and 2011 when it sawits market sharedeclined
gradually from3.5% to 2.8%. Top players in descendingorder in Canadian bakery market were George
Weston, KelloggCanada,MapleLeaf Foods, KraftFoods, General Mills,and Saputo. Due to its highly
fragmented nature in food categories, top 10 companies only represented 28% of new product launches
whilethe rest 72% was shared by the rest 938 companies duringthe 2006-2012 period (International
Markets Bureau, 2013).
Marketing 4P
Product Chub Ready-to-bake Seasonal
Price $3 $5 Sold for a premium
Place All major grocery retailer All major grocery retailer All major grocery retailer
Promotion Buy 2 for less,family limit Buy 2 for less,family limit Halloween, Easter, Valentine,
Christmas
Segmentation
**Based on behavioural segmentation
Segment # 1 2 3
Name Users Lapsed Users Non-users
Qualifying
dimensions
Who? Purchased refrigerated cookie
dough in the past12 months
Purchased refrigerated cookie
dough over 12 months ago
Never purchased refrigerated
cookiedough

5. Company Name
11/23/2017 Marketing Plan page 5
What? Refrigerated baked goods Bakingmixed Scratch
When? Often Occasionally Never
Where? Grocery stores; food service
operators
Grocery stores; food service
operators
Grocery stores; food service
operators
Why? easy and quick to make; tasty,
create happy memories
easy and quick to make; tasty Users are heath conscious
Segment
size
24% 16% 61%
Trends Increasingin households with
kids
Beginning to focus on
nutrition
Natural organic baking
Other Family enjoyment Purchaseatrandom Purchasetheir goods from
raw, not ready made
Determining
dimensions
Benefits
sought
Convenience and taste, create
memories with kids
Convenience and east to
clean
Easy to make at the spur of
the moment and kept on
hand when needed
Usage rate Often Seldom Never
What is the targeted market?
Scratch users arebeing targeted as MarketTools indicates that56% of the entire Canadian marketbakes
from scratch and 33% do it every month. This is a highly valuableuntapped market, instead of keeping
focus on frequent users who were already usePillsbury brand often.
What is their current market?
Target market is mothers in the 30-40s who lead an activeand busy lifestyle.She is lookingfor time
servingand convenient product that she can enjoy and crate happy memories with her family.
What is their potential market?
The potential market should includelapsed users and non-users whom don’t purchasefrequently due to
healthy concern for their family. RBG can come up with new product possiblewith organic ingredients.
Competitive Analysis
What is the status of their directand indirectcompetitors?
Manufacturer General Mills Canada Nestle Walmart/Others
Product Big Delux oatmeal raisin cookies,
Sugar Cookies, ChocolateChip
Cookie, Seasonal features and chub
and ready to bake
Tollhouse,Chocolate
chip,Sugar cookiedough,
Seasonal and ready to
bake
Great valuechocolate
chips
Promotion Use of Pillsbury dough boy Discounts,Coupons Ready to bake, low cost
Market size 85%
Direct competitors
Pillsbury RBGis controlling85%of the Canadian marketsharein the refrigerated baked goods categories.
Direct competitors areNestle and Walmart.Nestle is activein both Canadian and US markets. Nestle

6. Company Name
11/23/2017 Marketing Plan page 6
product is well known to families and considered to be good quality and pricingissimilarto General mills
and offer seasonal features.Furthermore, Walmartis operatingthroughout North America and itadopts
low costpricingstrategy.
Indirect competitors
Scratch bakers and local bakeries would be considered as indirectcompetitors.Accordingto the market
research,there is 61%bake from scratch in Canada. Scratch bakers know what ingredients they are
usingfor the product. They followfamily bakingexperience and carries down recipes as family tradition.
Local bakeries aremostly owned by local residents and they use natural ingredients and may not be
availablein all areas.
Financial Analysis
The current refrigerated baked goods market (RBG) in Canada is $291.6 million per year.Pillsbury is the
largestmanufacturer and holds an 85% market share, which represents $247.86 million in sales.Themain
products drivingthis strongmarket shareare their cookieSKUs. The cookieSKUs are responsiblefor 75%
of the RBG profitfor Pillsbury.If we assumethat General MillsCanada Corporation (GMCC) enjoys the
same 9% net profit margin on total sales as their consolidated parentcompany, the total sales valueof
the cookie SKUs for Pillsbury would be approximately $193.4 million or 78%of the overall RBG sales for
GMCC combined with their 62% of unit sales in this category (International Markets Bureau,2013).
Although Pillsbury isenjoyinga largemarket shareand achievinggood net profits,the growth of the RBG
market has been flat.The market penetration for the cookieSKUs in Canada is only 24%.Of the 24% of
individuals thatuseRBG products 68% of them also bakefrom scratch and 37% also usebakingmix.This
low market penetration presents an opportunity for GMCC to reposition their cookie products in Canada
to better compete with scratch users and bakingmix users.This repositioningrequires the development
and implementation of a tailor made Canadian marketingcampaign.
Positioning
Local Bakeries
Scratch
Taste/Quality
General Mills/RBG
Nestle/Toll house
Walmart/Great Value
Price/Cost

7. Company Name
11/23/2017 Marketing Plan page 7
This tailor mademarketing campaign will includea new advertisingspot,concept tests, evaluators,focus
groups, producttests, and creative testing. The new advertisingspotwill bemade for TV and also adapted
for social media platforms.The exact total cost of this marketing campaign will rangefrom $300,000 to
$740,000 with the mid of the range being $550,000.
A break even analysiswas completed usingthree scenarioswith estimated marketing costs of $300,000,
$550,000,and $740,000.In order to calculatea breakeven point we have used an average retail sales
priceof $3.99 and assumed that the retail salespriceincludes markups of 40%by the retai lors and 30%by
the distributors,as well as a costof sales of 59.8%. This would result in a contribution margin of $1.54 per
unit. In order to break even we would have to sell 240,416 units (low),360,624 (mid), or 480,832 (high).
If these new marketing efforts are successful in helpingus to increaseour market penetration resultingin
achievingand maintaining5%growth in sales for the cookiesegment of the RBG category for this year
and the followingtwo years,we would see total sales increases of $203 million in year 1,$213.2 in year 2,
and $223.9 million in year 3.The marketing expenses required to reposition our products in Canada and
achievea 5% growth rate in both cookiesales and RBG segment would resultin a net return on
investment ranging from 4940% to 2470% on the cookie SKUs (International Markets Bureau,2013).
Key Factors
Key Opportunities
 Canadian marketpenetration
 Explore family-oriented baking
Key SuccessFactors
 Re-package the product
 Advertise and promote the productto the target audience
 Awareness
Key Uncertainties
 Competitive Reaction
 Consumer Acceptance
 Effectiveness of marketing message
 Product that suits local market
Alternatives
1 – Market to Increase Frequencyof Purchase
The refrigerated cookie market already has loyal consumers thatPillsbury callstheir Brand Champions.
These consumers are familiar and comfortablewith the product so there isn’tthe challengeof trying to
move a consumer in a new direction. If these consumers purchased more often, sales could increasethe
desired five to seven percent.
Increasingthefrequency of existingtelevision ads will increasesales through repetition of the suggestion
to buy. The advertisingshould beexpanded to includeinternet banners and Fa cebook ads that
demonstrate new preparation methods or recipes that includethe refrigerated cookie dough, but create
different things. New ideas and suggestions giveexistingcustomers a new reason to buy.
Expandingthe in store marketing and promotional material would remind existingcustomer to pick up
the product whileshopping,and coupons that offer savings for purchasinglarger quantities could be
availableas a shelf talker.

8. Company Name
11/23/2017 Marketing Plan page 8
Pros:
 Usingexistingads is costeffective
 Customers are already familiarwith the product
 New recipes usingcookiedough may also bringback the lapsed users
Cons:
 Does not expand the pool of consumers
 Brand awareness will notincreasequickly
 Market may already ator near capacity,no room for growth
2 – Developa MarketingCampaign for Canadians
The cookies usageand attitude study revealed that Canadian customers aremore different from the
American customers than originally thought. Canadians scored higher on purchasedrivers thatrelate to
fun with kids and children’s wants than those in the US. A new marketing plan should bedeveloped that
focuses on these aspects of Canadian families.
New television ads thatshow families havingwarmcookies together after skiing,skatingor making
snowmen in the winter, and at the cottage or as an activity to do with kids on summer vacation would
make customers see cookies as a special partof Canadian culture.
The packagingwould be redesigned to depict scenes and activities with a Canadian flavor.
Pros:
 Customers startto identify the brand as partof Canadian culture
 Promotes family values and the image of the brand
 Address the gap between US and Canadian consumers
Cons:
 Additional research mightbe required to narrowtarget market
 Development of custom advertisements will bemore expensive
 Advertisingdesigned for one country is not as useablein other countries or markets
 Risk of loss of profits if investment in new ads and marketing materials arenot successful
3 –NewFlavors and Products
The refrigerated cookie product lineis limited to justthree flavors,ChocolateChip,ChocolateChunk and
Peanut Butter, plus the seasonal,gingerbread and sugar cookies. It’s not a lotof selection. The
addition of Oatmeal or Oatmeal Raisin,WhiteChocolateMacadamia Nut,Chewy ChocolateBrownie and
Shortbread could be offered in chubs.
Sugar cookie kits in a ready to bake packagethat have larger cookies for decorating,without the need to
roll outthe dough, and includingicingand decorationscould beoffered in themes likeBirthday Cake,
Christmas Shapes,Valentine’s Day, and Mother’s Day would be fun activities for kids to bake, decorate
and give as gifts.
Pros:
 Expand selection to appeal to different tastes
 Decoratingwith the kids conceptis in linewith the purchasedrivers in Canada
 Expand product offerings that use existingtechnology and processes is less expensivethan all new
products
 Kits and premium flavors may be sold athigher pricepoints and increased profitability
 Larger selection may give consumers an incentiveto buy more quantities ata time

9. Company Name
11/23/2017 Marketing Plan page 9
Cons:
 Development of new recipes will bean additional expense
 Kits would require new packagingto be designed and produced at a cost
 Additional SKUs would require more inventory to be maintained
4 - Status Quo
The refrigerated cookie product lineis already 62%of the refrigerated baked goods category, and 75% of
the category’s profit,which could be considered acceptableand not worth the risk of change. However,
growth has been flatfor the pastfew years,and household penetration has fallen to 24%. If this trend
continues,growth will startto declineand revenues will be affected. With refrigerated cookies being
the anchor and most profitableproductline,even a slightdecreasewill havea negative impact on the
whole category.
Pros:
 Cost efficient
 Effortless to maintain current marketing plan
 No requirement for additional research or productdevelopment
Cons:
 Fallingmarketpenetration will likely continue
 Revenues and profits will startto fall
 Brand awareness could decrease
Recommendations
Alternative 1 and 2 are recommended here.
In Alternative 2, GMCC did implemented numerous Canadian-specific marketinginitiatives,with all
advertisingwere directly from GM, but none of itshowed any positiveresult. Pillsbury doughboy image
had received wide consumer acceptancein the past40 years. The “kisses”commercial was indeed
successful in thatitappealed mothers and kids (which were their potential customers), but itfocused on
the product whilenot addressingcustomer’s potential concern: time saving.The “kisses”commercial
even surpassed Milward-Brown measurement in “likely to buy”, “brand recognition”, and “relevance”.
Based on the consumer difference (“fun thing to bake with the kids”, “kids liketo make them”, “fun
activity with kids”, and “kids liketo eat them”), the new commercial will featurea time-starved mother
busy preparingcookies after their kids finished their outdoor activities,starvingand lookingfor fresh
cookies to munch. The commercial ends with mother spendingtime with her children sittingata warm
place(couch or dinningtable).
Alternative 2, meanwhile, helps consolidatethe consumer basein Alternative 1 which is intended to
defend and grow GMCC’s existingcustomer base.Existing customers, upon recognizingnew benefits, are
more likely to use cookie dough in other occasionsas thebenefit of the product is “savingtime and less
effort”.
We have not found any reasons to go ahead with status quo, for obvious reasons thatthe growth had
been stagnant and fallinghousehold penetration rate. If we don’t do anything about it, Pillsbury
Doughboy is viewed as famous and popular,but nobody buys the product. It is of Guillen’s and GMCC’s
interest to change status quo.

10. Company Name
11/23/2017 Marketing Plan page 10
We also do not recommend Alternative 3 of launchingnewproduct yet, when we haven’t evaluated the
outcome of Alternative 1 and 2. In addition,launchingnew productconsumes more time and money.
ActionPlan
The idea should be discussed between managers to reach consensus as soon as possible
Date Item Description
Immediately Discuss with GMCC
marketing manager
Ian Guillen should meet with GMCC marketing manager to
discussthe issue
7 days from
today
Discuss with GMCC
marketing manager
Ian Guillen should obtain GMCC’s marketing manager’s support
and reach agreement on the current situation
14 days from
today
Getting category managers
on board
Draw diversity and expertise to develop ideas about new
commercial
21 days from
today
Either invite MarketTool or
develop survey
measurement internally
Develop surveys and measuringmatrix for GMCC-wide
discussion
28 days from
today
Survey employees Invite employees to complete survey and discuss thenew
commercial ideas. Leave a section where employees of GMCC
can express freely about how the new commercial should be
35 days from
today
Apply for advertisement
funding
Discuss with marketingmanager of GMCC to ensure fundingwill
be availablefor makingnew commercial.GMCC is fully
autonomous from its parent company and have the ability to
develop new product, brand strategies,and consumer branding
42 days from
today
Make commercials Develop new commercials usingexistingresourceor contact
outsideagency for making commercial
70 days from
today
GMCC internal evaluation Category managers and employees will submitideas based on
MarketTool measurement
84 days from
today
Consumer insight Invite Ipsos to conduct market research on behalf of GMCC by
choosingselectiveCanadian audiencefor review
112 days
from today
Mass commercial broadcast Allownew commercial to go on air
Contingency
Should the sales remain stagnant,we choose to go with Alternative 3: launch new product with new
flavours.Addingnew flavours involvingmaplesyrup products compliments GMCC’s existing products such
as Oatmeal Crisp MapleNut cereal.The act also corresponds to currentmarket practises which saw51.8%
of frozen bakery products as new and 39.1% were new variety (International Markets Bureau, 2013).
It was the competition’s requirement that launchingnewproducts and/or retiringold products were the
common industry practises.However, prior to launchinga new product, a thorough consumer insight
must be conducted to confirmthe demand, product design, and cons umer acceptance.

11. Company Name
11/23/2017 Marketing Plan page 11
Appendix
Exhibit1 – Brief details aboutnumbers
Low High
Target Growth 5% 7%
TV AdCost 200,000 500,000
Cookie RegularPrice 2.99 4.99
Cookie Sale Price 1.99 2.99
Market Penetration 24%
Total Sales $ 11,600,000,000.00
US Sales $ 8,004,000,000.00
International $ 1,856,000,000.00
FoodService $ 1,740,000,000.00
Canada 566,000,000 30%
Total BakeryMarket2006 $ 7,332,100,000
Total RBG Sales2006 $ 291,600,000
% CanadianBakeryMarket 4%
Total RBG salesat 85% $ 247,860,000

12. Exhibit 2 – GMCC cookie sales percentage and numbers
Actual 2006 Results
Entity General Mills Consolidated General Mills Canada RBG Sales
Fiscal Year Ended 28-May-06 28-May-06 28-May-0
NetSales $ 11,640,000 100% $ 566,000,000 100% $ 247,860,000
Costs& Expenses
Cost of Sales $ 6,966,000 60% $ 338,724,742 60% $ 148,332,711
Selling, general,andadministrative $ 2,678,000 23% $ 130,218,900 23% $ 57,024,835
Interest,net $ 399,000 3% $ 19,401,546 3% $ 8,496,232
Restructuringandotherexitcosts $ 30,000 0% $ 1,458,763 0% $ 638,81
Divestitures(gain) $ - 0% $ - 0% $
DebtRepurchase Cost $ - 0% $ - 0% $
Total Costsand Expenses $ 10,073,000 87% $ 489,803,952 87% $ 214,492,593
Earningsbefore Income Taxes&AfterTax E $ 1,567,000 13% $ 76,196,048 13% $ 33,367,407
Income Taxes $ 541,000 5% $ 26,306,357 5% $ 11,519,954
After-tax EarningsfromJointVentures $ 64,000 1% $ 3,112,027 1% $ 1,362,804
NetEarnings $ 1,090,000 9% $ 53,001,718 9% $ 23,210,258
Earningsper Share - Basic $ 3.05
Earningsper Share - Diluted $ 2.90
DividendsperShare $ 1.34

13. Company Name
11/23/2017 Marketing Plan page 13
Exhibit 3 – Projected Income Statement for the year ending 2007-05-28
Assume 5% Increase Assume 5% Increase Assume 5% Increase
Entity Cookies Sales Cookie Sales Cookie Sales
Fiscal Year Ended 28-May-07 28-May-08 28-May-09
NetSales $ 203,089,755
100
% $ 213,244,242
100
% $ 223,906,455
100
%
Costs& Expenses
Cost of Sales $ 121,539,796 60% $ 127,616,786 60% $ 133,997,626 60%
Selling, general,and
administrative $ 46,724,602 23% $ 49,060,832 23% $ 51,513,873 23%
Interest,net $ 6,961,582 3% $ 7,309,661 3% $ 7,675,144 3%
Restructuringandotherexit
costs $ 523,427 0% $ 549,599 0% $ 577,078 0%
Divestitures(gain)
$
- 0%
$
- 0%
$
- 0%
DebtRepurchase Cost
$
- 0%
$
- 0%
$
- 0%
Total Costsand Expenses $ 175,749,407 87% $ 184,536,877 87% $ 193,763,721 87%
Earningsbefore Income Taxes&
AfterTax E $ 27,340,348 13% $ 28,707,365 13% $ 30,142,733 13%
Income Taxes $ 9,439,137 5% $ 9,911,094 5% $ 10,406,649 5%
After-tax EarningsfromJoint
Ventures $ 1,116,645 1% $ 1,172,477 1% $ 1,231,101 1%
NetEarnings $ 18,278,078 9% $ 19,191,982 9% $ 20,151,581 9%
Netincrease insales $ 9,670,941 $ 10,154,488 $ 10,662,212
Netincrease inprofit $ 870,385 $ 913,904 $ 959,599

14. Company Name
11/23/2017 Marketing Plan page 14
Exhibit 4 – Estimate of Advertising Expenses
AdvertisingExpenses: Low Mid High
AdvertisingCampaign
$ 20
0,000.00
$ 350,
000.00
$ 500,
000.00
ConceptTests(One PerProvince)
$
20,000.00
$ 3
0,000.00
$
40,000.00
Evaluator
$ 10
0,000.00
$ 100,
000.00
$ 100,
000.00
FocusGroups / ProductsTests/ Creative Testing
$
50,000.00
$ 7
5,000.00
$ 100,
000.00
Total
$ 37
0,000.00
$ 555,
000.00
$ 740,
000.00

15. Exhibit 5 – Break even analysis and ROI
CurrentCookie SalesbasedonProfitMargin
Analysis
Total RBG Sales
$ 247,8
60,000
Total RBG Profit
$ 23
,210,258
Profitsattributable to
Cookies(75%) $ 17
,407,693
RBG ProfitMargin 9%
Total Cookie Sales
(Assumingsame
margin)
$ 193,4
18,814
BreakevenAnalysis:
Average RSP 3.99
DSP (Assume 40%
markup)
2.85
MSP (Assume 30%
markup)
2.19
Cost of Sales(59.8%) 1.31
ContributionMargin
($)
1.54
Low Mid High
Break-even(units) 240,416 360,624
480,832
Break-even(Dollars) 370,000.00 555,000
740,000
Returnon Investment
Total Costof
MarketingCampaign 370,000 555,000 740,000
Sales(Estimated5%
Growth) $ 203,0
89,755
$ 203,089,7
55
$ 203,089,
755
NetProfit
$ 18
,278,078
$ 18,27
8,078
$ 18,27
8,078
Returnon Investment
Year 1
4940% 3293% 2470%

16. References
References
International Markets Bureau. (2013). Consumer Trends - Bakery Products in Canada. Ottawa: Her Majesty the
Queen in Right of Canada. Retrieved from Agriculture and Agri-Food Canada:
http://www.agr.gc.ca/eng/industry-markets-and-trade/foreign-market-information-by-
region/canada/consumer-trends-bakery-products-in-canada/?id=1410083148462