the emerging greek yogurt market
DESCRIPTION
This presentation discusses the challenges Yoplait faced in the Greek yogurt market and potential opportunities for the brand in the future.TRANSCRIPT
The Emerging Greek Yogurt Market:How Yoplait Needs to Respond
Kyle Bank, Alex Frey, Mary Kenny, Ben Kremer &
Rita Sengupta
Background and Problem – Alex Frey
Research and Analysis – Rita Sengupta
Recommendations – Mary Kenny
Supported by Ben Kremer and Kyle Bank
Agenda and Introductions
Characteristics of Greek Yogurt
• Greek straining process
• Live bacterial cultures
• 2x the protein
• 1/2 the sugar
• 1/2 the sodium
• 1/2 the carbs
Greek Yogurt
• Unprecedented growth for premium price product in recession
• Grown over 100% in each of the last 3 years
• 2008: 2% of yogurt sales
• 2011: 19% of yogurt sales
Greek Yogurt Sales in the US
2%
19%
General Mills Market Share in US
General Mills5%
Others95%
Greek Yogurt
General Mills34%
Others66%
All Yogurt
Failed Launches for Yoplait Greek
9+ Chobani soldfor every Yoplait Greek
Chobani, 48%
Yoplait, 5%
• General Mills stock downgrade in early August
• Loss of market share after structural shift in the yogurt market
• Call to re-strategize
General Mills Stake in Yogurt
32
33
34
35
36
37
38
39
40
41
Pri
ce (
USD
)
General Mills Stock PricesMay 2011-November 2011
Primary Research
Regarding Yoplait Greek’s Poor Performance
Taste Tests
“Real” Test
Told Chobani and Yoplait Greek
Consumers ranked each product from 0-10
“Fake” Test
Told Chobani, but actually Yoplait Greek
Told Yoplait Greek, but actually Chobani
Is there a significant difference between taste, brand, or both?
Taste Test Results
TOLD / ACTUAL RATING
Yoplait / Yoplait 3.77
Chobani / Yoplait 7.36
Chobani / Chobani 8.01
Yoplait / Chobani 7.37
Analysis: Taste
*Holding brand constant while altering physical product shows that
Yoplait Greek has significantly inferior taste to Chobani*
TOLD / ACTUAL RATING
Yoplait / Yoplait 3.77
Yoplait / Chobani 7.37
TOLD / ACTUAL RATING
Chobani / Yoplait 7.36
Chobani / Chobani 8.01
P-value = 1.05E-10 P-value = .044
Analysis: Brand
*Holding physical product constant while altering brand name shows that Yoplait Greek has significantly weaker brand association than Chobani*
TOLD / ACTUAL RATING
Yoplait / Yoplait 3.77
Chobani / Yoplait 7.36
TOLD / ACTUAL RATING
Yoplait / Chobani 7.37
Chobani / Chobani 8.01
P-value = 1.23E-10 P-value = .046
Survey Results: Nutrition
Secondary Data: Nutrition
Chobani Yoplait Greek
*Both plain flavor
Although a higher end product, do consumers desire low price Greek yogurt?
• Our demand curve suggests:
Elastic demand
People are price sensitive
Survey Results: Price
So how can General Mills compete?
Core Recommendations
Re-engineerRebrand Reposition
Objective: Beat Chobani at being Chobani
Our Brand ChampionJanice
• Married middle-income 38-year-old working mother of three looking for a satisfying breakfast
• Loyal to her new-found dieting lifestyle
• Frantic schedule leaves bananas and apples as her only on-the-go choices
• Traditional Greek straining process
• Rich, creamy, smooth
• Clear packaging
Marketing Mix - Product
• MSRP: $1.19
• Current price of Yoplait Greek
• Make product affordable to drive volume
Marketing Mix - Price
Marketing Mix - Promotion
In-Store Taste Tests
In-Store Taste Tests
Female Television
DigitalCouponing
Celebrity Endorsement
Marketing Mix - Place
• Leverage General Mills’ extensive supply chain
o Sell to all major national and local grocers
Make available to all consumers because
Everyone Deserves A Little Good
Positioning
Attribute Kalos Chobani Fage
Price (6oz) $1.19 $1.59 $2.09
Consumers Low/Mid Income High/Mid Income Highest Income
Taste Creamy, rich Creamy, rich Tart, thick
Nutrition(Strawberry flavor)
Calories: 140Protein: 14gSugars: 19g
Calories: 140Protein: 14gSugars: 19g
Calories: 120Protein: 13gSugars: 16g
Flavor Diversity Strong Medium Medium
• Similar quality, taste & nutrition
• New brand to differentiate from Yoplait
• Price slightly lower than Chobani
o Leverage supply chain and GM infrastructure
o Accept lower margins if necessary
Mission: Beat Chobani at being Chobani
Questions?
Place
Product
Promotion
Price
Survey
Timeline
Alternatives
Risks
Financials
Positioning
Taste Tests
• Greek-To-Go
o Targeted at children
o Children 2-17 10% Greek yogurt consumption
35% Traditional yogurt consumption
o Only competitor = Chobani Champions
o Cannibalize Yoplait Gogurt sales
o Is there really a market for kids Greek yogurt?
Alternatives
• Yoplait Greek has 5% and is growing…• Our approach will stunt this growth with no guarantee of re-
attaining this share
• Leave Yoplait Greek on the market for 6 months & pilot Kalos
• A price-war with Chobani would be very expensive• We could win…but it might hurt other strategic objectives of
General Mills
• Greek yogurt bubble could burst…but there are no signs of this occurrence
Risks
An extra $1.6 billion in NPV over the next 4 years compared to “staying the course” with Yoplait Greek
Financials
Concept Research
Design & Production
FDA Approval
Production Release
Timeline for Implementation
• November 2011 • April 2012 • December 2012 • January 2013