Adv. 459 group 3 situation analysis


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Adv. 459 group 3 situation analysis

  1. 1. Chobani: Situation Analysis
  2. 2. Market Comparison <ul><li>Main yogurt market </li></ul><ul><ul><ul><li>Mature - little growth but remains strong </li></ul></ul></ul><ul><ul><ul><li>Heavily saturated – many brands and consumer options </li></ul></ul></ul><ul><li>Greek yogurt market </li></ul><ul><ul><ul><li>Currently a niche market within the broader yogurt market in the U.S. </li></ul></ul></ul><ul><ul><ul><li>Growth phase, gaining larger sales and more popularity </li></ul></ul></ul><ul><ul><ul><li>Gaining competition, but relatively low </li></ul></ul></ul>
  3. 3. Differentiation <ul><li>Why Greek? </li></ul><ul><ul><ul><li>It is higher in protein. </li></ul></ul></ul><ul><ul><ul><ul><li>Contains almost double the protein content of standard brands. </li></ul></ul></ul></ul><ul><ul><ul><li>It is lower in carbohydrates. </li></ul></ul></ul><ul><ul><ul><li>It is creamier and thicker. </li></ul></ul></ul><ul><ul><ul><ul><li>Strained more to remove more of the whey. </li></ul></ul></ul></ul><ul><ul><ul><li>It is lower in sodium. </li></ul></ul></ul><ul><ul><ul><ul><li>Contains almost half of the sodium in standard brands. </li></ul></ul></ul></ul>
  4. 4. Currently Trending: Organic <ul><li>What is Organic? </li></ul><ul><ul><li>Grown without pesticides, synthetic fertilizers, or genetically modified organisms </li></ul></ul><ul><ul><li>Animals are not given growth hormones or antibiotics </li></ul></ul><ul><li>Why Organic? </li></ul><ul><ul><li>Concern for planet’s and personal well-being </li></ul></ul><ul><ul><ul><li>Pesticides are a major factor in pollution </li></ul></ul></ul><ul><ul><ul><li>Hormones can have negative effects on the body </li></ul></ul></ul><ul><li>Demand for Organic </li></ul><ul><ul><li>Constantly growing </li></ul></ul><ul><ul><li>Emphasis on healthier alternative for the body and the earth </li></ul></ul><ul><ul><li>More companies offer more varieties, offering more choices to consumers </li></ul></ul><ul><ul><ul><li>More choices and accessibility increases the popularity and growth </li></ul></ul></ul>
  5. 5. Introducing: Chobani Greek <ul><ul><li>Created in 2007 under the Greek word for “Shepherd,” it surrounds itself with all-natural, local and certified organic ingredients, striving to provide consumers with great taste and great natural quality. </li></ul></ul><ul><ul><li>Unique Greek yogurt which is not only healthy, but also full of flavor. </li></ul></ul><ul><ul><li>New “Chobani Champions” specifically for children. </li></ul></ul><ul><li>*MRI 2009 </li></ul>Region Total ‘000 Proj ‘000 Index North East 26,119 485 217 South 51,416 324 74 Midwest 31,527 156 58 West 32,084 243 89
  6. 6. Why Chobani? <ul><li>Health </li></ul><ul><ul><ul><li>Certified organic and locally grown ingredients </li></ul></ul></ul><ul><ul><ul><li>Gluten free </li></ul></ul></ul><ul><ul><ul><li>Kosher-certified </li></ul></ul></ul><ul><ul><ul><li>5 active cultures, including 3 strains of probiotics </li></ul></ul></ul><ul><ul><ul><ul><li>Reduces effects of poor nutrition, surgery, alcohol, smoking, and pollution on the body. </li></ul></ul></ul></ul><ul><ul><ul><li>Real fruit </li></ul></ul></ul><ul><ul><ul><li>Two times more protein, 34% of daily value </li></ul></ul></ul><ul><ul><ul><li>50% less sodium </li></ul></ul></ul><ul><ul><ul><li>Lower in carbohydrates </li></ul></ul></ul><ul><li>Versatility </li></ul><ul><ul><ul><li>Various flavors can be used in smoothies, dips, casseroles, etc. </li></ul></ul></ul>
  7. 7. Current Status <ul><li>Greek yogurt accounts for 15% of the $4 billion yogurt market in the U.S.* </li></ul><ul><li>“ Nothing but good,” it seeks to provide great flavor with all-natural ingredients, high protein, and multi-functionality. </li></ul><ul><li>Fast growing in the entire yogurt market </li></ul><ul><ul><ul><li>Self-growing, lack of advertising </li></ul></ul></ul><ul><ul><ul><li>No. 1 brand in the Northeast. ** </li></ul></ul></ul><ul><ul><ul><li>Owns 33% of Greek yogurt sales in 2010.* </li></ul></ul></ul><ul><li>**Information retrieved from </li></ul><ul><li>*Information retrieved from </li></ul>
  8. 8. Status Continued <ul><li>October 31, 2010 – 5.1% Market Share of the </li></ul><ul><li>entire yogurt market, raised from 1.9% in 2009**. </li></ul><ul><ul><ul><li>Increase due to growth in organic and health trend </li></ul></ul></ul><ul><ul><ul><li>Social media sparking more attention </li></ul></ul></ul><ul><li>**Information retrieved from </li></ul>
  9. 9. Advertising History <ul><li>Summer of 2010, Chobani created buzz with its “Chomobile” truck that was used in various sporting events like the Utica Boilermaker Road Race. </li></ul><ul><ul><ul><ul><li>Using promotional tactic instead of advertising campaign did not present the same potential to increase awareness and sales. </li></ul></ul></ul></ul><ul><li>Past media and advertising spending has been very low. In the first nine months of 2009, spending totaled around $30,000. </li></ul><ul><ul><ul><ul><li>The budget did not allow for enough advertising to raise awareness for the brand across the country. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Needs to be increased in order to reach more people. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Current advertising is just not enough to keep the No. 1 spot in the market. </li></ul></ul></ul></ul>
  10. 10. Advertising History Continued <ul><li>With the recent launch of its new children’s product, it has </li></ul><ul><li>started using more online engagement. </li></ul><ul><ul><ul><ul><li>Consumers can upload photos to a gallery for a chance to win “Champ of the Month.” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Interaction can create excitement among consumers. </li></ul></ul></ul></ul><ul><li>Another advertising venture used billboards in eight regional markets, featuring health benefits with “Nothing but Good.” </li></ul><ul><ul><ul><ul><li>Could reach more consumers if the focus is changed to coincide with the natural/organic trend. </li></ul></ul></ul></ul>
  11. 11. Chobani Entering Social <ul><li>Maintains a steady, and slowly growing social life. </li></ul><ul><ul><ul><li>Facebook: 25,940 Likes </li></ul></ul></ul><ul><ul><ul><li>Twitter: 2,328 Followers </li></ul></ul></ul><ul><ul><ul><li>Official Chobani Dietician Twitter: 3,815 Followers </li></ul></ul></ul><ul><li>Chobani’s growing social interactions are opening </li></ul><ul><li>doors for new targets. </li></ul><ul><ul><ul><li>Social can make it easier for the brand to form relationships with more consumers. </li></ul></ul></ul><ul><li>*Numbers as of 2/2011 </li></ul>
  12. 12. Competition <ul><li>Fage – First established Greek yogurt in the U.S. </li></ul><ul><ul><ul><ul><li>Owns 20.5% of Greek yogurt sales* </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Recent campaign featured stylish ads in Vogue and Elle as well as banner ads and interactive websites. </li></ul></ul></ul></ul><ul><li>Fage is direct competition as sales steadily increase and their brand continues to gain consumer awareness. </li></ul><ul><li>Choices: Chobani vs. Fage </li></ul><ul><ul><ul><ul><li>Chobani uses local and organic ingredients and draws focus to Kosher-certified, gluten free, protein content, lower carbohydrates, low sodium, and 5 active cultures with probiotics. </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Located in regular yogurt section, could be seen by more shoppers. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Fage separates fruit toppings from yogurt and draws focus to Gluten free, vegetarian, low calories, diabetic friendly, and pregnancy friendly. </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Located in Organic section, could be seen by less shoppers because organic is viewed as being more expensive. </li></ul></ul></ul></ul></ul><ul><li>*Information retrieved from </li></ul>
  13. 13. Competition Continued <ul><li>Dannon, Yoplait, and Kraft </li></ul><ul><ul><ul><ul><li>Entered niche market in 2010 with their own versions of Greek yogurt. </li></ul></ul></ul></ul><ul><li>These yogurt giants could raise a potential threat due to their already well-known brand names. </li></ul><ul><li>Although these brands entered the niche market late, their established names could eventually place them ahead in the Greek market. </li></ul><ul><ul><ul><ul><li>Could be a positive </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Potential to increase size of Greek market due to higher advertising budgets. </li></ul></ul></ul></ul></ul>
  14. 14. Typical Greek Consumer <ul><li>Frequent Greek Consumers: </li></ul><ul><ul><li>Women, 18-34 </li></ul></ul><ul><ul><li>College educated, Post Graduate </li></ul></ul><ul><ul><li>Health Conscious </li></ul></ul><ul><ul><li>Higher income, above $75,000 </li></ul></ul><ul><ul><li>Heavy users of magazines and newspapers </li></ul></ul><ul><ul><ul><ul><li>Health, Fashion, Travel </li></ul></ul></ul></ul><ul><li>*Information retrieved from MRI 2009 </li></ul>
  15. 15. Problems <ul><li>Major yogurt brands entering Greek niche market. </li></ul><ul><ul><li>Could present new, fast growing competition with already large market shares of regular yogurt market. </li></ul></ul><ul><ul><li>Although it will expand market, there will be a challenge to stay ahead of competition. </li></ul></ul><ul><ul><ul><li>Need a consistent and strong brand message across more media. </li></ul></ul></ul><ul><li>Lack of advertising </li></ul><ul><ul><li>Low budget does not allow enough funds to raise awareness and popularity for the brand. </li></ul></ul><ul><ul><li>Use of social media – even though positive, there are too many inconsistent messages. </li></ul></ul><ul><ul><li>Need to expand to main/mass media with a consistent brand message to achieve more awareness and consumer loyalty. </li></ul></ul>
  16. 16. Opportunities <ul><li>Increasing trend – “Greek yogurt, the business’s hottest niche.” </li></ul><ul><ul><li>With the new organic/natural trend aspect, consumers are becoming younger. </li></ul></ul><ul><ul><li>Trend could make Chobani the “must have” of yogurt. </li></ul></ul><ul><li>Multi-functionality/Versatility </li></ul><ul><ul><li>Multiple uses: incorporate various recipes in campaign. </li></ul></ul><ul><ul><ul><li>Breakfast, Appetizers, Lunch, Main Courses, Sides, Desserts, etc. </li></ul></ul></ul><ul><ul><li>Provides more reasons to purchase above other brands. </li></ul></ul><ul><ul><ul><li>Recipes call for specific brand. </li></ul></ul></ul>
  17. 17. Strategic Directions <ul><li>Greek Living: </li></ul><ul><ul><li>Increase of younger consumers + trend factor = younger professional targeted campaign. </li></ul></ul><ul><ul><ul><li>Heavy focus on “must have” </li></ul></ul></ul><ul><ul><ul><li>Focus also on multi-use – freeze, blend, dip, etc. </li></ul></ul></ul><ul><ul><ul><li>Heavy use of fashion magazines. </li></ul></ul></ul><ul><ul><ul><li>Heavy social media usage. </li></ul></ul></ul><ul><ul><ul><li>Creation of mobile application for Chobani recipes. </li></ul></ul></ul><ul><ul><li>Younger professional – active lifestyle, use for versatility, follower of organic and health trend. </li></ul></ul>
  18. 18. Information From: