{"id":303,"date":"2015-08-30T16:01:09","date_gmt":"2015-08-30T16:01:09","guid":{"rendered":"https:\/\/courses.candelalearning.com\/waymakerintromarketing1xmaster\/?post_type=chapter&p=303"},"modified":"2016-02-25T17:52:32","modified_gmt":"2016-02-25T17:52:32","slug":"outcome-using-the-marketing-mix-2","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/clinton-marketing\/chapter\/outcome-using-the-marketing-mix-2\/","title":{"raw":"Case Study: Chobani","rendered":"Case Study: Chobani"},"content":{"raw":"

Introduction<\/h2>\r\nIn 2005, Turkish immigrant Hamdi Ulukaya bought a yogurt plant from Kraft Foods in Johnston, New York. Ulukaya had a vision of a better product: the thick, rich yogurt he had enjoyed in Turkey but couldn't find in the United States.\r\n\r\nhttps:\/\/youtu.be\/7TY6JxR15og?t=1s\r\n

The Target Customer<\/h2>\r\nChobani started out making private-label regular yogurts for other large companies, but Ulukaya believed he could make a better yogurt than the competition. And, he had a good idea of the customers he wanted to target:\r\n
We aimed at people who never liked yogurt. We couldn\u2019t blame them, because what was available was not what the rest of the world was eating.<\/blockquote>\r\nFurther, the company chose not to target only women, a favorite target segment for the U.S. yogurt industry. Ulukaya believed that both men and women would appreciate the fresh ingredients and high protein that Chobani offered.\r\n\r\nThe Chobani Product\r\n\r\n\"Photo<\/a>\r\n\r\nThe recipe for Chobani is thicker and creamier than regular yogurt, with twice the protein and none of the preservatives and artificial flavors found in conventional yogurt. What\u2019s in the yogurt\u2014five live and active cultures, including three probiotics\u2014is as important as what\u2019s not, and Chobani turned this competitive advantage into the yogurt\u2019s slogan: \u201cNothing but Good.\u201d Ulukaya described the philosophy behind the product:\r\n
We look at our yogurt as pure, healthy, simple, and something that you enjoy tasting. That is very, very important for us.[footnote]https:\/\/www.sba.gov\/offices\/district\/ny\/syracuse\/success-stories\/chobani-selected-sbas-2012-national-entrepreneurial-success-year[\/footnote]<\/blockquote>\r\n

The Chobani Place<\/h2>\r\nExisting Greek yogurt lines were most often sold in expensive specialty stores. Ulukaya hoped to sell his yogurt brand to a wider customer base through mass-distribution channels of grocery store chains. After more than a year developing Chobani\u2019s trademark taste, in October 2007 Chobani\u2019s first shipment included five different flavors\u2014blueberry, peach, strawberry, vanilla, and plain\u2014which were sold to a single Long Island grocery store. From there the company expanded regionally and then nationally to grocery store chains. The demand for broader distribution was fueled by the promotion campaign.\r\n

The Chobani Promotion<\/h2>\r\nChobani worked to develop a two-way dialogue with happy customers.\r\n
We\u2019re on all the major social media platforms. The growth of Chobani really started virally, where one person would try it, tell five friends who each told five friends, and it really became a brand people loved to discover on their own and tell other people about. In the online landscape, we just had really great success at being able to talk to our fans. I think one of the great things about our company is our relationship with consumers; it\u2019s really a lot of fun to hear what they have to say and take it to heart.[footnote]http:\/\/usbusinessexecutive.com\/food-drink\/case-studies\/chobani-yogurt-healthy-products-nourishing-growth[\/footnote] \u2014Nicki Briggs, a registered dietitian and head of the company's communications team<\/blockquote>\r\nUlakaya also became a darling of the business press, which was persuaded\u00a0by his philosophy\u00a0that anything is possible with hard work. He was a frequent guest on national investment news programs and speaker at business conferences.\r\n\r\nThe company capitalized on the healthy and ambitious aspects of its brand, and in 2012 Chobani became the official yogurt of the U.S. Olympic Team. As a sponsor, Chobani \u00a0followed athletes from\u00a0U.S. Olympic training centers to the London Olympic Games.\r\n\r\nSince then Chobani has also visibly\u00a0committed to supporting local farmers and strengthening economic growth in the communities where it is located, which contributes to its reputation\u00a0as a healthy brand.\r\n\r\nhttps:\/\/youtu.be\/jjurtKY13bc?t=2s\r\n

The Chobani Price<\/h2>\r\nWhen Chobani entered the market, prices for the traditional offerings in the market clustered around 65 cents per cup. Premium Greek yogurt cost $1.34 per cup. [footnote]http:\/\/minnesota.cbslocal.com\/2012\/04\/26\/behind-the-hype-costs-and-benefits-of-greek-yogurt\/[\/footnote]\r\n\r\nChobani priced its product at roughly $1 per cup. This decision was based on the expectation\u00a0that the product\u00a0would be\u00a0successful. Ulakaya set the price assuming economies of scale\u2014that the company would gain efficiencies as sales increased\u2014instead of trying to recover the early costs. The price factored in\u00a0the higher cost of premium ingredients, which also supported the product and promotion goals. [footnote]http:\/\/www.businessinsider.com\/the-success-story-of-chobani-yogurt-2013-5#ixzz3l6bHLWtN[\/footnote]\r\n

Check Your Understanding<\/strong><\/h2>\r\nAnswer the question(s) below to see how well you understand the topics covered in this outcome. This short quiz does\u00a0not<\/strong>\u00a0count toward your grade in the class, and you can retake it an unlimited number of times.\r\n\r\nUse this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.\r\n\r\nhttps:\/\/assessments.lumenlearning.com\/assessments\/736","rendered":"

Introduction<\/h2>\n

In 2005, Turkish immigrant Hamdi Ulukaya bought a yogurt plant from Kraft Foods in Johnston, New York. Ulukaya had a vision of a better product: the thick, rich yogurt he had enjoyed in Turkey but couldn’t find in the United States.<\/p>\n