Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

The Emerging Greek Yogurt Market

4,447 views

Published on

This presentation discusses the challenges Yoplait faced in the Greek yogurt market and potential opportunities for the brand in the future.

Published in: Marketing
  • Be the first to comment

  • Be the first to like this

The Emerging Greek Yogurt Market

  1. 1. The Emerging Greek Yogurt Market: How Yoplait Needs to Respond Kyle Bank, Alex Frey, Mary Kenny, Ben Kremer & Rita Sengupta
  2. 2. Agenda and Introductions  Background and Problem – Alex Frey  Research and Analysis – Rita Sengupta  Recommendations – Mary Kenny Supported by Ben Kremer and Kyle Bank
  3. 3. Greek Yogurt 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
  4. 4. Greek Yogurt Sales in the US • Unprecedented growth for premium price product in recession • Grown over 100% in each of the last 3 years • 2008: 2% of yogurt sales • 2011: 19% of yogurt sales 19% 2%
  5. 5. General Mills Market Share in US General Mills 5% Greek Yogurt Others 95% General Mills 34% All Yogurt Others 66%
  6. 6. Failed Launches for Yoplait Greek 9+ Chobani sold for every Yoplait Greek Chobani, 48% Yoplait, 5%
  7. 7. General Mills Stake in Yogurt • General Mills stock downgrade in early August • Loss of market share after structural shift in the yogurt market • Call to re-strategize 41 40 39 38 37 36 35 34 33 32 Price (USD) General Mills Stock Prices May 2011-November 2011
  8. 8. Primary Research Regarding Yoplait Greek’s Poor Performance
  9. 9. Taste Tests “Real” Test  Told Chobani and Yoplait Greek  Consumers ranked each product from 0-10 “Fake” Test  Told Chobani, but actually Yoplait Greek  Told Yoplait Greek, but actually Chobani Is there a significant difference between taste, brand, or both?
  10. 10. Taste Test Results TOLD / ACTUAL RATING Yoplait / Yoplait 3.77 Chobani / Yoplait 7.36 Chobani / Chobani 8.01 Yoplait / Chobani 7.37
  11. 11. Analysis: Taste TOLD / ACTUAL RATING Yoplait / Yoplait 3.77 Yoplait / Chobani 7.37 TOLD / ACTUAL RATING Chobani / Yoplait 7.36 Chobani / Chobani 8.01 P-value = 1.05E-10 P-value = .044 *Holding brand constant while altering physical product shows that Yoplait Greek has significantly inferior taste to Chobani*
  12. 12. Analysis: Brand TOLD / ACTUAL RATING Yoplait / Yoplait 3.77 Chobani / Yoplait 7.36 TOLD / ACTUAL RATING Yoplait / Chobani 7.37 Chobani / Chobani 8.01 P-value = 1.23E-10 P-value = .046 *Holding physical product constant while altering brand name shows that Yoplait Greek has significantly weaker brand association than Chobani*
  13. 13. Survey Results: Nutrition
  14. 14. Secondary Data: Nutrition Chobani Yoplait Greek *Both plain flavor
  15. 15. Survey Results: Price Although a higher end product, do consumers desire low price Greek yogurt? • Our demand curve suggests:  Elastic demand  People are price sensitive
  16. 16. So how can General Mills compete?
  17. 17. Core Recommendations Rebrand Re-engineer Reposition Objective: Beat Chobani at being Chobani
  18. 18. Our Brand Champion Janice • Married middle-income 38-year-old working mother of three looking for a satisfying breakfast • Loyal to her new-found dieting lifestyle • Frantic schedule leaves bananas and apples as her only on-the-go choices
  19. 19. Marketing Mix - Product • Traditional Greek straining process • Rich, creamy, smooth • Clear packaging
  20. 20. Marketing Mix - Price • MSRP: $1.19 • Current price of Yoplait Greek • Make product affordable to drive volume
  21. 21. Marketing Mix - Promotion In-Store Taste Tests In-Store Taste Tests Female Television Digital Couponing Celebrity Endorsement
  22. 22. 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
  23. 23. Positioning 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 Nutrition (Strawberry flavor) Calories: 140 Protein: 14g Sugars: 19g Calories: 140 Protein: 14g Sugars: 19g Calories: 120 Protein: 13g Sugars: 16g Flavor Diversity Strong Medium Medium
  24. 24. Mission: 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
  25. 25. Questions? Place Product Promotion Price Survey Timeline Alternatives Risks Financials Positioning Taste Tests
  26. 26. • Greek-To-Go Alternatives 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?
  27. 27. Risks • Yoplait Greek has 5% and is growing… • Our approach will stunt this growth with no guarantee of re-attaining this share • 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 General Mills • Greek yogurt bubble could burst…but there are no signs of this occurrence
  28. 28. Financials An extra $1.6 billion in NPV over the next 4 years compared to “staying the course” with Yoplait Greek
  29. 29. Timeline for Implementation Concept Research Design & Production FDA Approval Production Release • November 2011 • April 2012 • December 2012 • January 2013

×