Analyze and address the marketing case below.

Your answer should include a short introduction, the main issue to be addressed, an analysis of the situation, available optional courses of action, recommended action(s) justified by a strong argument, while highlighting potential risks if any associated with the implementation of such action(s), and how to mitigate such risk.

Case 2: Pillsbury Cookie Dough

You are employed by General Mills Canada and are the brand manager for Pillsbury chocolate chip refrigerated cookie dough. The product is available in three flavours: chocolate chip, chocolatey chunk, and milk chocolatey chip. The brand is in an enviable position in the market: it is a dominant leader with a 65% market share. There is little doubt that the Pillsbury brand name has an excellent image and reputation among consumers for its various product lines in the baking products category. Nestl Toll House ranks second in market share in the refrigerated cookie dough category, and there are some private-label brands to contend with.

Refrigerated cookie dough has been a good profit contributor for the company. Just recently, however, the costs associated with producing the product have increased to the point where a price increase may be necessary. In addition, some other external forces are having negative impact on sales volume. Market growth for all baking products household penetration and cookie segment growth are all flat. With costs rising and sales projections for the brand in the upcoming year being flat, the profitability of the brand will decline. Your job is to protect the profitability of the brand.

You are evaluating whether to increase the wholesale price to distributors, who will pass the increase on to the consumers. The price increase is expected to be in the area of 10%. You dont know how consumers will react to the price increase. Might it negatively affect sales? Another option is to consider ways of reducing the cost of the product in order to avoid a price increase or to keep an increase to an absolute minimum. This may be difficult to do since raw material costs are firm for the next year. You could reduce the size and weight of the package but dont know how consumers would react to such a change. What recommendations do you have to protect the profitability of the product?