General Mills, Inc. Yoplait Custard-Style Yogurt (a)

General Mills, Inc.: Yoplait Custard-Style Yogurt (A) Submitted by Sharat Sushil 1301040 Reetika Rajawat 1301088 Vineeth S 1301107 1. What are the most salient aspects of the yogurt category bearing on a new product introduction? a. Positioning (Snack/Dessert/meals):- Positioning of the products as one of snack, dessert, and meals can optimise profits. Positioned as snacks it can be sold at 6 oz. , but as dessert it will be sold at 4 oz. From the study it was found that most preferred yogurt as a snack over meals. Positioning as a dessert can also eliminate competition in the initial stages because of a vacuum. b. Unique Selling Point The USP of yogurts depends on three factors namely texture, taste and flavour. Although the texture of yogurt was unique it was disliked by many. Therefore taste supersedes the other two attributes for a better product c. Name Poor conversion rates of non-users coupled with the problem of damaging the reputation of the brand if the product fails necessitated the need of selling the yogurt under a different independent name as ‘ from the makers of Yoplait’. d. Packaging In order to maximise brand recall, Yoplait has the option of selling it in two different packages. Positioning Custard Style Yogurt as a dessert enabled it to be sold in smaller packages of 4 oz. eliminating the use of cap. e. Price Since Yoplait’s yogurt was perceived as a snack rather than a meal among customers, it was considered highly priced at 53 cents. Yoplait had to compete with snacks which are cheaper than them. Ideal solution will be to introduce the new product in the desserts category and give it a competitive price for desserts. 2. Evaluate the NPD process for Yoplait Custard-Style to this point. How would you as the heads of Yoplait usa RATE Becker’s performance as Director of New Business Development? We think Becker did an excellent job in building a new product line and introducing Custard –Style Yoplait. Yoplait had started with clear goals in mind such as national distribution, $100 million in sales, 20% market share and profitability. Secondly, there were stringent procedures in place to for concept testing. For example, Custard style was able to be the top quartile in anticipated unit purchases for line and it was in the top 50% in anticipated retail dollar sales or both total Yoplait line and the new line. Completely newly flavouring system was developed to meet US consumer taste. Market research studies were conducted to position the Custard-Style Yoplait which helped them identify that position as a dessert helped them gain more sales and earn more profit by minimising costs through eliminating the need of caps. The NPD process adopted by Becker was in contrast to

the traditional methods of launching a new product without research, but these steps will enable Yoplait to successfully compete with Dannon. What are the key questions facing Becker at this time? a) To capitalise on Dannon’s inability to satisfy the distribution system in the western part by getting rid of store door delivery, b) Positioning of Custard Style Yoplait as either snack/dessert/meal c) Naming of the Custard Style Yoplait d) Whether to focus on taste, flavour or texture. e) The packaging of Yoplait. f) Price of the Yoplait. g) Which test he should undertake to get more feasible results under cost constraints. What are the pros and cons of each of the research alternatives being considered by Becker? Which of Which combination of research producers would you recommend? Simulated Test Market (BASES) Pros Low cost ($29,000) Fast results ( <12 weeks)

Cons Unsure whether results applicable in refrigerated yogurt. Large number of shoppers needed for intercepts in different geographical areas Secondary model inputs are dependent on the clients.

No requirement of finished commercial and packaging Can evaluate alternative market scenario by varying different elements Forecast sales volume rather than market share Dynamic model helps consider the timing of proposed marketing expenditure Only 5 % error in predicted forecast sales Full Scale Field Test Pros Cons Test results replicate actual roll out conditions Complexity Costly Time consuming( 1 Year) Leak information to competitors Mini- Market Test Pros Cons Better accuracy than BASES Accuracy dependent on the market sample chosen Costs less than full-scale test markets Could not provide national Sales estimates of Custard-style or cannibalisation. Time consuming ( 20 weeks) By analysing the pros and cons given above it is better for Yoplait to do Simulated Market Test (Bases) considering limited time, and capital available.