Our recommendation for General Mills is threefold: to re-engineer the taste of Yoplait’s Greek-style yogurt, to rebrand in response to negative consumer sentiment to the Yoplait Greek line, and position the new line slightly below Chobani in terms or price but equivalent in terms of quality.
Introducing Kalos, which is Greek for “good, beautiful & virtuous”. General Mills should rebrand the line in order to differentiate from its Yoplait products and rejuvenate its presence in the Greek yogurt market. Lifestyle with the yogurt
We believe the name’s heritage adds to the authenticity of the brand and the slogan “Everyone deserves a little good” re-enforces our target market and the accessibility of this product.
So who is our target market? Meet Janice, a 38-year-old working mother of three searching for a satisfying breakfast.
Her frantic schedule eliminates her usual egg white omelette option, leaving bananas and apples as her only on-the-go choices. Poptarts and sugary cereals scream her name, but she remains loyal to her new-found dieting lifestyle.
She wishes she could purchase Greek yogurt, yet nearly every brand is out of her price range. So as you can see, there is a niche in the Greek yogurt market that has yet to be filled. People like Janice will become hardcore loyalists of Kalos and champion the brand to others.
Kalos is thick and smooth, made possible by the straining technique. Kalos also uses natural ingredients, real fruits, and all-natural sweeteners.
80% of buying decisions are made at the point-of-sale. Consequently, we opted for transparent packaging to trigger impulse purchases. People want to see what they are buying without opening the package and we thought that this was an innovative strategy particularly within the Greek yogurt market.
Yoplait can offset the development costs
Using Yoplait Greek’s marketing budget
The promotional campaign consists of various techniques to spread awareness of the Kalos brand and increase customer loyalty. Free samples always have been an effective form of marketing promotion. In-store taste tests will give consumers a chance to experience the deliciousness of Kalos and boost long-term sales. General Mills is the industry leader in delivering digital coupons which will further entice consumers to purchase Kalos. We would also like to air Kalos commercials during TV shows targeted toward female audiences, like Desperate Housewives or Grey’s Anatomy. We are also considering featuring actress and mom Jennifer Garner in the Kalos commercials because she has fit, down-to-earth appeal that is relevant to our target market.
And finally, place – Kalos can leverage General Mills’ extensive supply chain and distribution network by selling to major grocers nationwide, like Target and Walmart.
Just to reiterate, we want to make this product available to everyone and we feel that these national grocers are the best venue to achieve that goal.
Relative to competitor brands, Kalos will be priced below Chobani in order to be affordable for all. Lower-income consumers want the same quality products as middle-class consumers.
In terms of taste, Kalos yogurt will mimic the delicious flavor of Chobani packed with protein and without artificial sweeteners. Chobani currently offers the largest variety of flavors of fat-free Greek yogurt, but Kalos, with the R&D capabilities of General Mills behind it, can develop a multitude of flavors for this new Greek yogurt line.
Success of flavors with Yoplait lines
The Emerging Greek Yogurt Market
The Emerging Greek Yogurt Market:
How Yoplait Needs to Respond
Kyle Bank, Alex Frey, Mary Kenny, Ben Kremer &
Agenda and Introductions
Background and Problem – Alex Frey
Research and Analysis – Rita Sengupta
Recommendations – Mary Kenny
Supported by Ben Kremer and Kyle Bank
Characteristics of Greek Yogurt
• Greek straining process
• Live bacterial cultures
• 2x the protein
• 1/2 the sugar
• 1/2 the sodium
• 1/2 the carbs
Greek Yogurt Sales in the US
• Unprecedented growth for
premium price product in
• Grown over 100% in each of
the last 3 years
• 2008: 2% of yogurt sales
• 2011: 19% of yogurt sales
General Mills Market Share in US
Failed Launches for Yoplait Greek
9+ Chobani sold
for every Yoplait Greek
General Mills Stake in Yogurt
• General Mills stock
downgrade in early
• Loss of market share after
structural shift in the
• Call to re-strategize
General Mills Stock Prices
May 2011-November 2011
Regarding Yoplait Greek’s Poor Performance
Told Chobani and Yoplait Greek
Consumers ranked each product
Told Chobani, but actually
Told Yoplait Greek, but actually
Is there a significant difference between taste, brand, or both?
Rebrand Re-engineer Reposition
Objective: Beat Chobani at being Chobani
Our Brand Champion
• Married middle-income 38-year-old
working mother of three looking for a
• Loyal to her new-found dieting lifestyle
• Frantic schedule leaves bananas and
apples as her only on-the-go choices
Marketing Mix - Product
• Traditional Greek
• Rich, creamy, smooth
• Clear packaging
Marketing Mix - Price
• MSRP: $1.19
• Current price of Yoplait Greek
• Make product affordable to
Marketing Mix - Promotion
Marketing Mix - Place
• Leverage General Mills’ extensive supply chain
o Sell to all major national and local grocers
Make available to all consumers because
Everyone Deserves A Little Good
Attribute Kalos Chobani Fage
Price (6oz) $1.19 $1.59 $2.09
Consumers Low/Mid Income High/Mid Income Highest Income
Taste Creamy, rich Creamy, rich Tart, thick
Flavor Diversity Strong Medium Medium
Beat Chobani at being Chobani
• Similar quality, taste & nutrition
• New brand to differentiate from Yoplait
• Price slightly lower than Chobani
o Leverage supply chain and GM infrastructure
o Accept lower margins if necessary
o Targeted at children
o Children 2-17 10% Greek yogurt consumption
35% Traditional yogurt consumption
o Only competitor = Chobani Champions
o Cannibalize Yoplait Gogurt sales
o Is there really a market for kids Greek yogurt?
• Yoplait Greek has 5% and is growing…
• Our approach will stunt this growth with no guarantee of re-attaining
• Leave Yoplait Greek on the market for 6 months & pilot Kalos
• A price-war with Chobani would be very expensive
• We could win…but it might hurt other strategic objectives of
• Greek yogurt bubble could burst…but there are no signs of
An extra $1.6 billion in NPV over the next 4 years
compared to “staying the course” with Yoplait Greek
Timeline for Implementation
• November 2011 • April 2012 • December 2012 • January 2013