General Mills

1) Evaluate BASES results. What do they about the Custard Style concept? Ans. Following are the Snapshot of BASES test. i) Confirmed the Share of market as predicted by Mini Market test. ii) It predicted 1st year volume of 4.4 mm at maximum spending and 3.0 mm at mimimum spending iii) At 90 % ACV distribution custard style volume forecast was 110% of Original _style. iv) BASES model forecasted that total Yoplait volume would grow by 43% v) Point iii &iv are inline with the companies benchmarked performance criteria for custard style of 40% incremental volume & sales volume v olume to be 60% of original-style. vi) After Exposure of concept 40% respondent said they will definitely definitely or probably would buy and among triers it was 68%. Above points not only support the viability of Custard Style but also provides strength to marketing to go forward for its launch. 2) Examine the BASES result regarding the alternative spending plans. What can you conclude from these dates? How confident are you in your conclusion? Analysis of Alternative spending in exhibit gives a better and clear picture towards promotion promotion strategy. The alternative spending option of PLAN A MEDIA / PLAN B PROMOTION is more apt as per the budget constraints. TABLE 1 Plan A Media /Plan B Promotions Year 1

West Midwest Midwe st East 1194 315 1625

Year 2 %Change

1206 1%

812 158%

1940 19%

Remaining Remainin g Total Tota l Spending Spend ing Units/$ spent 270 3904 9.9 394 300 11%

4258 9%

6.1

698

TABLE 2 Plan A Media /Plan B Promotions Year 1

West Midwest Midwe st East 1015 880 1445

Year 2 %Change

1100 8%

855 -3%

1502 4%

Remaining Remainin g Total Tota l Spending Spend ing Units/$ spent 325 3665 6.9 531 401 23%

3858 5%

3.05

1265

TABLE 3 Plan B Media /Plan B Promotions Year 1 Year 2 %Change

West Midwest Midwe st East 940 705 1305

Remaining Remainin g Total Tota l Spending Spend ing Units/$ spent 260 3210 6 535

945

720

1530

320

3515

1%

2%

17%

23%

10%

4

879

TABLE 4 Plan A Media /Plan A Promotions Year 1

West Midwest East 1260 935 1805

Year 2

1290

940

2105

435

4770

2%

1%

17%

9%

8%

%Change

Remaining Total Spending Units/$ spent 400 4400 12.5 352 7.35

649

Depending on the spending which is approximately similar in table 3 & table 2 total units sold in table seems to be more, hence unit / $ spent is almost 1.5 times in both the year. Though there seems to be drop in no of unit sold in Midwest yet from the figures it is quite clear that no are more. Hence we are quite confident on our understanding that General Mills should go for spending as per Table 2.

3) What Roll Out Plan Should Becker follow. Ans. Following should be the Roll Out Plan. 1) The Custard Style Should be launched in Eastern region first only in 04 flavors i.e Strawberry, vanilla, Raspberry & Blueberry. a) Exhibit 6  Shows greater purchase intent among all the regions mentioned  with 42% before use and 69 % after use. b) Liking rating on 9 point scale is higher compared to other regions there by chances of  increased repeat sales. In Exhibit 6 c) Repeat sales by wave 3 have confirmed higher in Yoplait to 41%. d) Point b & C further strengthen each other. e) Net Cannibalization rate from the Competitori.eDanon, Knudson & Other are (37%) but the premium is getting 22% of Danon for which company was struggling a lot as Danon was available throughout the country. This would create brand of new product, which can be leverage later through-out the country. 2) Product should be positioned as new type as from Exhibit 6  more than 50% of the population believed this is better than the expectation there by creating an opportunity of position a new product type. 3) Price Decision of 53 cents has higher response in terms of price/value 5 point scale i.e 3.7. Though this index gives approval to current price in current market at the same time it also indicates that further price may adversely affect the sales. 4) Since the product is positioned as new product first year advertisement shall be of  Secretaries type as Exhibit 10 clearly shows that it is best for presenting its new product ranking high in is all the parameters .Most importantly it conveys message of point of different from  Advantage over other Yogurts best for the attributes of  two style/better & Thicker /Creamier. Next level of  advertisement should be of Sanford type to create better recall of the product (90%). This is also in-line with the steps of Branding exercise. 5)

Keeping the variant limited to flavors will support the fact 33% acceptors were looking for flavor and the add campaign on thickness & creamier.

6) Spending: As derived from the BASES the Volume was proportional to the spending on advertisement. Hence Becker has to rethink on the allocation of amount to various heads. More amount to be allocated to Trade promotions. In this scenario the alternative spending Plan A media/Plan B promotion seems to More near to budget constraints.