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Yoplait
General Mills was considering launching a new custard-style yogurt under their Yoplait brand. Research showed the key appeal was a smooth, creamy, thick texture. Concept tests of low vs full fat, dessert vs snack positioning, and package/size options found the highest profit potential was a full-fat snack-positioned product in a 6oz Vercon cup. Focus groups found non-users may be difficult to convert and saw the product as less "yogurty". The recommendation was to use the proven BASES test for initial market evaluation, followed by a smaller "mini market" test, position it as a snack, and launch both package options without changing price.
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Yoplait
- 1. General Mills, Inc:Yoplait Custard Style Yogurt
- 2. The Company-General Mills •5 operating groups- – Consumer Foods • Largest group • Sales=2.2 billion dollars • Operating profits=210.5 million dollars(53% of company sales and operating profits) – Restaurants – Fashion – Speciality Retailing
- 3. Yoplait USA • GeneralMills acquired rights from Sodima(French Diary Co-operative) – Sodima licenses its technology around the world • General Mills sells Yoplait Yogurt Original Style in 5 flavours • Annual sales 10 million dollars
- 4. • Yoplait had30 days shelf life-production could not build up inventory • Yoplait hence required co-ordination with distribution
- 5. • 3 stylesprevalent – Sundae style (53% of yogurt volume) • Thick Consistency • Eg Dannon- fruit at the bottom of the cup – Swiss style (37% of yogurt volume) • Thick Consistency • Fruit mixed and blended throughout the yogurt – Plain style(9 % of yogurt volume) • Thick consistency
- 6. Yoplait Original Style •All natural, fruit mix throughout • French Style • Unique packaging- reverse cone, plastic package, wax paper cup, smooth texture,less tart
- 7. Market • Fragmented, regional • No national distribution brand • Private labels take up 26% of national volume • Category development varied across regions – Highest in Southern California- 252 PCI – Lowest in Virginia 40 PCI
- 8. Brand Parent Company % coverage in USA Positioning Strategy Yoplait General Mills 60% All natural premium quality, creamy French yogurt Dannon Beatrice Foods 66% Nutrition/value reassurance Breyers Kraft 54% Superior tasting, natural Light and lively Kraft 48% Good taste, Natural reassurance Borden Borden USA 45% Good taste, all natural- American yogurt Knudsen Knudsen and Co 14% Nutrition, taste,leadership Colombo Colombo USA 21% Production,reassurance,all natural Yogurt Johanna NA Superior taste, French Recipe natural
- 9. Customer attitudes andusage • Yogurt market is in its maturity stage • Market has stopped growing 1977 1978 1979 Have eaten 28% 32% 32% yogurt in past four weeks Expect to eat 32 36 38 yogurt in next four weeks
- 10. Reasons for use 1977 1978 1979 Like taste 51% 57% 54% Nutritious 21 17 21 Non fattening/ 20 14 13 dierary Eat for 12 5 4 lunch/meal Have eaten 1977 1978 1979 yogurt Lunchtime 62% 56% 51% Evening snack 32% 30% 36% Between meals 31 34 34 Dessert 18 14 14 With Dinner 12 14 12
- 11. Unaided Brand Awareness-1979 US Midwest West Yoplait 12% 28% 13% total in west+midwest=41% Dannon 47% 68% 2% total in west+midwest=70% Light n Lively 13% 11% 0% Knudsen 6% 0% 28% Breyers 8% 3% 1% Brand eaten most often US Midwest West Yoplait 4% 8% 6% Dannon 41% 51% 0% Light n Lively 3% 1% 0% Knudsen 5% 0% 21% Breyers 3% 1% 1% Lucerne 3% 2% 8%
- 12. Yoplait Dannon Overall quality 17% 31% Overall taste 17% 35$ Fruit flavour 17% 37% Texture 14% 28% Amount of fruit 13% 23% Overall appearance 16% 27% Appeal to entire family 8% 21% Container 11% 18% Value 10% 18%
- 13. Demographic Analysis ofYoplait • Educated, female, young(18-34 years), or old (63+ years) • In metros, concerned about weight and diet • Children usage declined, family usage declined • Children used it as between meal and after school snack(56%) and as an evening snack(46%)
- 14. Results of YogurtMotivation Study • Yogurt moved from meal to snack – High calories – Not filling – Treat and not staple by health and diet conscious – Flavor improvement might increase sales in children – Price could play a role in purchase behaviour • New competition in snack role – Competition from more shelf-stable items,easy to keep, cheaper
- 15. • Total yogurtconsumption low – Volume accounted by new users did not make up for lost volume from traditional users • Long term yogurt volume expected to corode substancially • Yogurt perceived as high quality, premium priced brand, people didn’t like the thin texture
- 16. Custard Style • Focusgroup research indicated that key appeal of the concept was its custard like texture. Concept conveyed smooth,creamy,thick,rich tasting yogurt.
- 17. Concept test • Productformulation – Low fat vs Full fat • Positioning – Dessert vs Snack • Package – Vercon vs Traditional • Size – 4 oz vs 6 oz
- 18. • Result- – Desert/full fat/traditional/4 oz • Profit margin- 50.3 – Snack/full fat/Vercon/6 oz • High profit margin- 60.4 – Improve prototype • More fruit • Colour • Flavour • Natural
- 19. • Creative GroupInterviews – Indicated non users would be difficult to convert – Non users felt product was bitter, sour,tangy – Custard Style sounded “less yogurty”
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- 21. • We recommend the BASES test because of the following reasons: – It had proved successful and accurate in predicting the sales numbers of their previous products. – The test was cost effective and delivered results in short span. – It could also give an estimate of the marketing expenditure because of its dynamic structure. • Due to lack of any marketplace exposure in the BASES test we suggest a “mini market” test as a follow up measure to complement the findings of the BASES test. The test has the advantage of utilizing less investments and providing results in a short time. It also estimates the extent of the cannibalization. • We recommend the company to position the product as a snack option since the customer perception is invariably shifting towards the indulgence snack item. Also the concept fulfillment test gave favorable results for the following combination: fat based/Vercon cup/ 6oz. We believe the company should launch the product in both the package options so that it may attract the customers looking for a dessert. • There is no need for any price modification for the new product, as the cost structure associated with the new variety is expected to be the same