2. Company Background
• Founded in 1928
• General Mill’s 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
3. 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
4. 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
5. 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
6. 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
7. 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 Custard-Style as a
premium brand they cannot also position it as a snack because it’s
too expensive for snack category food
8. 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.
9. 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
10. d) Name
Yoplait Custard-Style Yogurt
• Described the product’s 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
(Créme de Yogourt/ Yogourt Classique- from the maker of Yoplait)
• Negetive effect on brand awareness
• Not describes product’s attributes
11. 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)
• Yoplait’s 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
12. Recommendation
The best option between the available
alternatives for marketing mix elements is;
dessert positioning, traditional cup, 4-oz.
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.
13. 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 Yoplait’s plants
to become ready for the market.
• General Mill’s need to allocate even more than the
estimated $18 million budget for advertising media before
and after the launching of Yoplait Custard-Style Yogurt to
correct misperceptions about yogurt.
• The advertisements have to emphasize it’s benefits to
health and it’s low calorie with full taste to capture regular,
traditional and new users of yogurt.
14. • 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-to-day operations to achieve
their four 5-year goals; national distribution, $100 million in
sales, 20% market share and of course profitability.
