This report delves deeper into Dennis Spector's presentation on marketing strategies employed by General Mills to successfully launch Nature Valley granola bars into the candy vending machine market.

Understanding the Opportunity and Challenge

General Mills, a leader in the cereal market, identified a potential avenue for growth: healthy snack options in the candy vending machine space. This presented a unique challenge. They were a cereal giant entering a market dominated by sugary treats.

Crafting a Winning Marketing Mix

Spector emphasizes the critical role of the marketing mix in this venture. Here's a breakdown of key adjustments made:

• Product: Nature Valley bars were repackaged in smaller sizes (suited for vending machines) and offered in various count configurations to cater to price points. Maintaining the brand's core identity of healthy and convenient snacking was crucial.
• Place (Distribution): General Mills lacked existing relationships with candy vending machine distributors. The presentation details their process of selecting qualified brokers specializing in candy sales. Building this network was vital for reaching their target audience.
• Price: Pricing strategies considered production costs, competitor pricing within the vending machine channels, and maintaining a competitive edge over candy bars. Trade promotions (discounts for distributors) were likely implemented to incentivize purchase.
• Promotion: While the presentation doesn't delve into specific details, it mentions consumer promotions like coupons as a potential tool for driving brand awareness and trial within the new market.

Sales Force & Relationship Building

The presentation highlights the importance of a trained and well-supported sales force, in this case, the network of brokers. General Mills likely provided them with:

• Selling Materials: Brochures, product information, and visuals showcasing the benefits of Nature Valley bars for vending machines.
• Target Audience Insights: Data and demographics about the ideal customers buying from vending machines (adults grabbing snacks for themselves or others).
• Sales Training: Techniques on how to approach potential vending machine operators and convince them to stock Nature Valley bars.

Connecting with Potential Buyers

Historically, General Mills might have used tactics like sending product samples and information packages directly to grocery store procurement teams. Adapting this approach for vending machine operators could have been a strategy to build initial interest and secure distribution deals.

Measuring Success

While the presentation doesn't explicitly mention success metrics, some key performance indicators (KPIs) General Mills might have tracked could be:

• Sales Volume: Number of Nature Valley bars sold through vending machines.
• Market Share: Percentage of healthy snack options within candy vending machines compared to competitors.
• Brand Awareness: Surveys to gauge consumer recognition of Nature Valley bars as a vending machine option.

Conclusion: Lessons Learned

General Mills' successful launch of Nature Valley granola bars in candy vending machines demonstrates the power of adapting marketing strategies to new markets. It highlights the importance of:

• Understanding the market: Identifying target customers and distribution channels.
• Building relationships: Cultivating partnerships with brokers and distributors.
• Adapting the product: Tailoring packaging and offerings to fit the new environment.
• Employing a strategic marketing mix: Optimizing product, price, promotion, and place for success.

This case study serves as a valuable example for businesses considering venturing into new markets. By carefully analyzing needs, adjusting their approaches, and building strong partnerships, companies can effectively expand their reach and achieve their marketing goals.