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 Yoplaits 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 Beckers 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 Dannons 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 Cons
Low cost ($29,000) Unsure whether results applicable in
refrigerated yogurt.
Fast results ( <12 weeks) Large number of shoppers needed for
intercepts in different geographical areas
No requirement of finished commercial and
packaging
Secondary model inputs are dependent on the
clients.
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.