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Case Analysis of
General Mills Yoplait Custard Style Yogurt
Submitted to Prof. Patrali Chakrabarty
Indian Institute of Management, Bangalore
Leela Bharath G (1011032) Ashok Katta (1011159) Priya Mouli (1011190) Teja Ande (1011290) Syed Hussain (1011365)
PART A BASES: Advantages: Disadvantages Mini Market: Advantages Disadvantages Full Scale test Advantages Disadvantages Analysis and Recommendations Marketing issues Final product specs: PART B Situational Analysis Consumer Dynamics study: Need for the BASES test: BASES Tests Comparison of Mini-Market test and BASES Volume predictions (% of Original-style yogurt) Comparison of Mini-Market test and BASES Market Share predictions (Total U.S) Copy testing: Recommendations 3 3 3 3 3 3 4 4 4 4 4 5 5 6 6 6 7 7 8 8 8 9 .
Can be considered to a full market test as the test obtains info on a large no. . 2. it wants to decide whether it has to go in for a test market simulation such as BASES. We need to help them decide whether they should do a mini test or a full test. of parameters like media interest. Cost significantly high compared to bases test (around 10 times more) but significantly less compared to full market (around 8 times less). Logistics of transport and storage are not considered. before a field test market or go directly into the field test market. 2 yoghurt brand in the US. Full time production of the product is not required as the test samples can be produced with the present pilot plant. Effect of distributive network can t be found out as the product is distributed directly to selected consumers 4. it will not be attached to other products of the company. 5. Also. Fast results(20 weeks) 3. This market test will give the experience of a full market test. cannibalization of other products etc. currently the no. 5. 7. Yoplait should go in for BASES before field test market. Low investment 2.PART A Yoplait. The pros and cons of various tests in the present situation are explained below. 6. because of advantages listed below. Validity of BASES test for this product was not substantiated as this is an entirely new product category (consumables having a product life of 30 days) Mini Market: Advantages 1. BASES: Advantages: 1. Actual media exposure can t be found . 3. If the product receives a negative image. weight of the can. Finished commercials and packaging are not required. Disadvantages 1. 4. Can t measure price sensitivity of the consumer 2. Provide sales estimate for the first 2 years of the product with 66% confidence with an error range of max 10%. has decided to go in for a market test before launching its Custard Style yoghurt product.
The company prepared to go for BASES test.Based on the feedback from the consumers if . During mini market test it should be priced . High probability for the competitors to plagiarize the idea 4.S market because of the presence of regional differences in the Yogurt market. Many attributes of buying like price sensitivity. 4. The chance of leakage of ideas to competitors is very less. Very high investment(both for test and to improve the production facility) 2. Full Scale test Advantages 1. commercials and packaging.The distribution network may not be excessively tested as the present original style product is a similar one.Due these factors we propose the following plan of action. 2. Price sensitivity of the customer can be measured. ip safety (the product formulation is new and must be kept secret from competitors) and finding various attributes of product are important to findout. The efficiency of the logistics and sales people can be measured clearly 4. Less completion time around 20 weeks 5. The effect of cannibalization can be measured more accurately 6. For the initial market test the product concept of snack and 6 oz pack must be used. Disadvantages 1. product packaging. The test results can t be up scaled to the entire U. Long completion time (54 weeks) 3. The distribution channels and sales support of the company can t be measured perfectly. then must go for a mini market test in 1 or 2 markets which contains population similar to target consumers (metropolitan areas of east and west where the literacy rate is high). The future investments required can be predicted in much accordance to the actual release Disadvantages 1. The logistics and additional investment are not required now as they are clearly found out from any of the tests (as the distribution network used in test is the marketing company s distribution network). 2. 3.045$ and packed in Vernon pack. pricing. If the results are satisfactory the company can go for a direct launch. After receiving feedback from the customers must prepare the product. media selection etc can be found out. Failure losses after using this test are rocket high Analysis and Recommendations According to our view in the present situation the factors of investment. Here care should be taken to do at least one mini market test after BASES test.3. The results obtained will correctly predict the sales.
plastic cup) Pricing: It could be priced same as that of the regular 6 oz. (pg.045$ or .coz full test meant marketin in 2 to 4 nationally representative markets through normal distribution channels with the General Mills sales force selling the test product to the trade. (not 4 or 8 oz. In regards to the product name Crème de Yogurt must be used for the tests. The reason is many people did not remember Yoplait name Product Name: Crème de Yogurt (This name change is primarily because many consumers did not remember the name YOPLAIT. they would be too little and too much resply) (since itssnack and concept test result was good for this) What kind of food lunch/snack/dessert: Snack. 7. However dessert could also be targeted later. Yoplait Final product specs: Product formulation: Full fat (since itssnack and concept test result was good for this) Package size: 6 oz. since the more available yoghurt is the more it is consumed. Crème de Yogourt sounds French and hence can clearly indicate that Yoplait s yoghurt is made in the French and not American way . 2nd para. This initial formulation is decided based on the results found during concept fulfillment test and creative group interviews. ful test should be done which costs 1700 K rather than mini test (200K) . Lunch is ruled out coz its full-fat and many people prefer fewer calories in the US! Product Name: Crème de Yogurt (This name change is primarily because many consumers did not rember the name YOPLAIT! (Pg 9 3rd para).they are willing to spend . Crème de Yogurt sounds French and hence can clearly indicate that Yoplait s yoghurt is made in the French and not American way Also for field test market. tho it costs higher.30$ then the packaging options must be found out using mini market test. 2nd line) we can t rule out its importance (wich is the case with mini test) Marketing issues Positioning: Custard Style should be positioned for its smooth texture and its unique Vercon packaging (conical. Since DISTRIBUTION is key to Custard Style s margin target.
Advantages of Mini-Market test: The test can be easily managed due to the small size of the market and its proximity to the location of General Mills headquarters. comparing it with the estimates from BASES test. User classification of Custard-style yogurt Type of user Exclusive Custard-style Exclusive Original-style Bothe Custard and Original style Percentage of total users 20 20 60 y The study also indicated that Custard-style users were primarily past buyers of Original-style (38% for trial and 41% for repeat) and Dannon (33% for trial and 27% for repeat). The study indicated strong consumer satisfaction of the Custard-style product.PART B Situational Analysis After two years of development and numerous consumer tests consistently proving the high potential of the product. The market share and volume estimates will be presented at the end of the report. Radio was used instead of television to control costs and minimize wasted impressions. dislikes and usage. a consumer dynamics study of yogurt was also conducted during the test during which respondents were asked questions on products likes. product sampling and trade deals were used as marketing support for Custard-style product. time has come for the test market confirmation of Custard-style yogurt. Newspaper advertising. Product sampling was a major consumer promotion tactic used for generating trial. This saves a lot of time and effort for the market research department to conduct the test and overcome the limitations like unavailability of refrigerated warehouse. Bruce Becker decided to go for a Mini-Market test in Wisconsin market instead of a full-scale market. Consumer Dynamics study: In addition to the weekly store audit. lack of production experience and capacity. . Three trade deals each lasting 6 weeks were offered during the test and the average Custardstyle volume in stores that accepted one or more deals was 52% higher than those that accepted none. Limitations of Mini-Market test: The results of a limited test market in Wisconsin could not be projected nationally because the U. But. Marketing variable for the Mini-Market test: y y y y Radio. given the budget & time constraints and also production capacity limitations.S yogurt market was highly regional.
Overall. a BASES simulated test market was conducted. the mini-market test results were encouraging for the management. Need for the BASES test: Though the mini-market test results were encouraging and estimated the total Yoplait volume to be doubled by the addition of Custard-style. Overall. The test was conducted across 12 dispersed cities distributed equally among the three regions i. concept statement and the price and were then asked various questions regarding the product. The other significant losers would be Dannon (22%) and Knudsen (6%) . Plan B (50%) and Plan C (40%) Summary of Results y y y y Under plan B. In addition to these results. a few other inputs such as volume estimation model. target markets. Marketing Variables: Three Spending plans were simulated. Custard-Style would cannibalize on Original-Style and would gain 22% of the share. To address these concerns. consumption indexes of each city. So. The target respondents were all women above 18 who were principal household shoppers.e. West and Mid-West. Custard-Style was estimated to grow by 43% with 3. year one distribution and out-of-stock estimates and marketing expenditure for each quarter were provided. Custard-Style volume was sensitive to spending with volumes under Plan A 34% higher than Plan B in Year 2 Sales varied across regions. Sales were highest in West and sales in East were higher than Original Style.5MM cases sold in year 2. Both custard users and non-users were included. Acceptors indicated that they would ear Custard-style on the same occasions as other yogurts. East. the management wanted to get national and regional estimates of the product volume potential and its impact on Original-Style s volume before they make any decision on the introduction of Custard-style yogurt. some Yoplait executives were skeptical that the test results could not be used to project the product performance to other regions in US as the test was too localized. Respondents were shown a color print advertisements with a picture of Custard style product. Plan A (100%). BASES Tests The BASES test was more comprehensive than the tests earlier done. However there was no variation in % of sales per flavor. The plans were based on the spending proportionate to Original Style yogurt s spending.y y y y Market share predictions indicate that the market share gain by Custard-style is mostly from Dannon and that it does not cannibalize Original-style (Ref to Exhibit 2) Other insights from the study indicate that Custard-style buyers were mainstream yogurt consumers and that Custard-style would not be merely a secondary brand among its consumers.
At the same time taste followed by price were the most disliked attributes. Comparison of Mini-Market test and BASES Volume predictions (% of Original-style yogurt) ACV assumed\Type of test Mini-Market test BASES test 80% 90% 109% 97% 110% Comparison of Mini-Market test and BASES Market Share predictions (Total U. a copy test was planned with four television commercials.S) Type of test Custard-style Total Yoplait Mini-Market test 23. who tried the product. The Sanford copy scored highest overall across all geographies.0% BASES (Sanford commercial) 21. were willing to buy it again. Four copies were used in the test 1) 2) 3) 4) Custard Style with Yoplait tag and no celebrities (Police execution) Custard Style with Yoplait tag and a celebrity (Sanford execution) Integrated Custard and Original Style without celebrities (Secretary execution) Integrated Custard and Original Style with celebrity (Lasorda/Brothers execution) The target respondents were females over 18 who had bought yogurt two or more times in the previous three months.7% Copy testing: After the BASES test. However after the test. Incremental consumer promotion was more efficient in increasing sales than incremental media spending Overall the test indicated that Custard-Style had potential for high volume sales. All the reported figures were approximately on par with industry norms Before use. The copies were then scored based on the responses.y y y 40% of respondents said they were definitely or probably willing to buy Custard-Style. The test involved 300 respondents from 9 locations.1% 48. .8% 43. taste was reported as major attribute. health/nutrition was the major attribute that respondents liked in the product. Also 68% of people. The respondents were shown the video and later asked about their likelihood of buying the product.
Also. . this copy should be rolled out for promotion. 2) The tests indicate that Custard Style would steal an insignificant share from Dannon (15%) and more than Original Style (22%). Also the sales for Custard style were very high in West compared to other regions. Hence the product should be launched in the West first.Recommendations Based on our analysis of the case we suggest the following recommendations 1) Since Price was an attribute that many disliked (2nd after taste). charging the same price would not significantly affect the sales. 3) Since the Sanford execution scored highest overall across geographies. Custard Style yogurt should be sold at the same price as Original Style yogurt. since the tests indicate little cannibalization on Original Style.
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