General Mills, Inc.

: Yoplait CustardStyle Yogurt (A)

Company Background
Founded in 1928
General Mills original product ; Gold Medal Flour
5 major operating groups- Consumer Foods, Restaurants,
Creative
Products, Fashion, Consumer Foods
53% of total sales
and operating profits
Product management system
Flat organizational structure
Acquisition-Sodima/ aFrench dairy cooperative

The Yogurt Market

The yogurt market comprised three product
segments:
Sundae-style (53% of yogurt volume)
Swiss-style (37%)
Plain (9%)
In 1980 the total U.S. Refrigerated yogurt market
was estimated as $425 million in retail sales.
Competitors/ differ in positioning starategies and
distribution systems

NPD Process
Idea generations sessions
First screening => Consept Test
Prototypes
Vat/Cup Fermentation
Consumers test prototypes and also R&D
team taste the prototypes in review meetings

Conducted Researchs
Yogurt Motivation Study
In-depth qualitative research/ 30 focus
group/ to identify motivations of yogurt usage
Concept Fulfillment Test
To determine which mix was the best for
Custard-Style Yogurt.
Creative Group Interviews
Conducted with yogurt users and nonusers
to aid in creative development

Management Decision
Problems

1) Marketing mix elements

a. Positioning
b. Packaging type
c. Size
d. Name

2) Market research methods

a. Test market simulation; BASES
b. Field test
i) Full-scale test market
ii) mini-market test

Marketing Mix Elements

a. Positioning
Dessert:
Differentiation
Premium Positioning
The dessert positioning will be more effective and
help to increase category usege
Snack:
Yoplait Custard-Style Yogurt will not able to compete
with other brands in the market
They cannot capture the major segments because
they are health and diet conscious (snacks are
perceived as unhealthy and high in calories)
Since the company wants to position the CustardStyle as a premium brand they cannot also position it
as a snack because its too expensive for snack
category food

b. Packaging Type
Traditional cup
Reduce cannibalization effect
It can be produced in 4-oz. size
Vercon cup
High recognition
Possiblity of cannibalization
Cup is not recappable for 4-oz.

c) Size
4-oz.
Decrease unit price
Compatible with a dessert positioning
Appropriate for children
Reduce waste
Adequate size for Custard-Style because it is very
filling
Require $75.000 in capital investment
6-oz.
Compatible with a snack positioning

d) Name
Yoplait Custard-Style Yogurt
Described the products texture
Could increase brand awareness
After a while it is become connected with Yoplait even it
is too generic because the company is the first in the
market.
Name linked with Yoplait
( Yoclaire/ Yofleur)
Individual identity
More incremental volume
Unrelated name with tag
(Crme de Yogourt/ Yogourt Classique- from the maker of
Yoplait)
Negetive effect on brand awareness
Not describes products attributes

Market Research
Methods

BASES
Low cost ($29.000)
Fast results (12 weeks)
It provides scientific sales volume estimation, therefore, more
suitable for test products in new or underdeveloped
categories
Dynamic / take into account the timing of proposed marketing
expenditures
Full-scale test
Budget constraints ($1.700.000)
Long process (approximately one year)
Yoplaits plants could not yet produce Custard-Style Yogurt so
they cannot provide required number of prototypes.
True market conditions- valid&reliable results
Mini-market test
Permit a good measure of cannibalization
True market experience
Less costly than full-scale test market ($200.000)
Limited trade area

Recommendation
The best option between the available
alternatives for marketing mix elements is;
dessert positioning, traditional cup, 4oz.
The best option for product name is;
Yoplait Custard-Style Yogurt
The best options are,
both BASES and mini-market test
These two market research can be conducted
simultaneously, effectively and efficiently.

Actions
Bruce Becker need to start to conduct BASES and
mini-market test for dessert positioning, traditional
cup, 4-oz. option.
Before he gets the evidence that indicates progress,
he should immediately start the production in
Yoplaits plants to become ready for the market.
General Mills need to allocate even more than the
estimated $18 million budget for advertising media
before and after the launching of Yoplait CustardStyle Yogurt to correct misperceptions about yogurt.
The advertisements have to emphasize its benefits
to health and its low calorie with full taste to
capture regular, traditional and new users of yogurt.

Since, custard is very famous in European countries

and used in most of their desserts, it is not hard to
persuade consumers because Yoplait offer them a
brand new experience and different from all the
yogurt brands on the shelf.

The company might consider offering recipes

including Yoplait Custard-Style Yogurt to increase
the new product usage scale. For instance, they
may put different healthy and low calorie recipes for
every flavour; low-fat strawberry cheesecake with
Yoplait Custard-Style Yogurt strawberry flavour.
Since, yogurt is refrigerated and has only a 30-day
shelf life; production could not build up inventory.
Yoplait USA should coordinate distribution & sales
effectively and make the decisions quickly in day-today operations to achieve their four 5-year goals;
national distribution, $100 million in sales, 20%
market share and of course profitability.