Chobani Marketing Plan Final PDF

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Summary

Chobani Marketing Plan...

Description

One-Year marketing Plan in Response to the Impact of the Novell Coronavirus (COVID-19) Pandemic Chobani L.L.C.

1. Executive Summary

This one-year marketing plan was created in response to the impact of the Novell Coronavirus (COVID-19) pandemic. During this time, unemployment rates have skyrocketed, and the country is in a state of economic despair. We have a strong desire to provide aid and a social obligation to assist those in need. This marketing plan is designed to outline how the company intends to provide aid while promoting its image and protecting its bottom line. The company will launch an aggressive marketing campaign using social media, digital promotion, in-store promotion, news and traditional media, and a cross-country tour meant to enter and boost brand recognition in new and underdeveloped markets. The goal is to not only highlight its relief efforts but promote the company brand. News and traditional media outlets will also be engaged to further promote our branding and social aid endeavors. The goal of so much promotion is due to the level of aid the company shall provide to various organizations across the country in the form of manpower, monetary, and product donations. All profits from a new charity flavor offering will be donated to Feeding America as part of the relief effort. As a way of making Chobani accessible to those economically impacted, price-points on several products will be discounted to be made “more affordable” to consumers. Chobani cafes will be converted into food pantries and will collect donations of food and other basic necessities to give to local families in need. Finally, Chobani will launch CHOmobile tours in each major region of the country. Stopping in cities and towns identified as those most impacted by the pandemic. The considerable expense of these relief efforts will have a financial impact on the company as a whole, which must be recuperated in some way in order to protect profitability and profit margin for stakeholders.

The comprehensive marketing campaign will raise brand

recognition, thereby increasing the chances of repeat purchases by consumers and increasing sales and revenue. The coupon and in store demonstrations will also increase sales and revenue. Marketing promotions on social media and digital ads will do the same. The CHOmobile, mobile cafés will hand out free samples of Chobani product offerings and coupons to prospective 1

consumers, in addition to conducting giveaways and raffles, thereby, passively generating sales by raising brand awareness and company humanizing the company as a whole through face to face interactions with employees. Ultimately, the goal is to put together the image of a company that is personable and approachable. One who cares about the country they operate and prosper in, and who is not afraid to lend a helping hand despite the cost of doing so.

2. Company Description “In 2005, Hamdi took a loan from the Small Business Administration, bought an old yogurt plant, and brought a small group of passionate individuals together to make the real, wholesome yogurt that he remembered from his childhood. He called the company Chobani, “shepherd” in Turkish, to endow it with the hard-working and compassionate spirit of the mountain farmer. For the next two years, Hamdi devoted himself to the craft, carefully building his team to ensure quality from the ground up. In 2007, his dream to make delicious, nutritious, natural, and accessible yogurt finally came to fruition, when the very first cup of Chobani® Greek Yogurt hit the shelf. By 2010, Chobani had grown from one man’s dream into America’s favorite Greek Yogurt. Through your support, we were able to break ground on a new, state-of-the-art yogurt factory in Twin Falls, Idaho, and form a charitable arm for the company. In 2016, our 2014 creation, Chobani® Flip®, was recognized as a Nielsen Breakthrough Innovation Award winner. And in 2017, Chobani opened its third café, and first outside of New York City, in the Houston area. In the years between our founding and now, we’ve been recognized numerous times for being a great place to work. In 2016, we introduced Chobani Shares, an initiative to give every full-time member of the company the opportunity to share in the growth of Chobani over time. And in 2017, we implemented a new paid parental leave policy, offering 100% paid parental leave for six weeks for all full-time hourly and salaried employees.” (13)

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3. Strategic Focus and Plan

This section outlines the mission, goals, and ability of the company to bear fruition in the upcoming campaign. This will be accomplished by focusing on the company’s mission, goals, and core competencies.

Mission The mission of Chobani is, as always, to provide quality, all natural, heathy, products at a reasonable price for all consumers. We also aim to raise social cognizance, cultivate a positive image of ourselves as a company amongst our consumers, and maintain, if not transcend, profitability milestone measurements and company growth for stakeholders.

Goals In the upcoming year, Chobani seeks to achieve the following goals: 

Non-Financial Goals. 1. To provide aid to organizations that work diligently to combat hunger due to the economic impact of COVID-19. 2. To project an image of social awareness to our customer base. 3. To enter into 21 new markets by the end of the promotional period. 4. To increase the amount of customer to company interactions. 5. To launch a CHOmobile tour in each of the major regions of the continental United States.

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Financial Goals. 1. To lower pricing in order to create accessibility of all our products to members of varying socioeconomic backgrounds. 2. To maintain profitability despite the costs associated with providing extensive aid to charitable organizations. 3. To increase revenue, in order to cover the costs of increased production, charitable donations of monetary and product value, and promotional discounts. 4. To protect, if not increase profit margins for shareholders.

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Core Competency In terms of competency, Chobani seeks to achieve the ability to continue to (1) provide unique quality yogurt products to our consumers in the coming months to celebrate the change of seasons and (2) continue to expand our company image as one of ethical social standing.

4. Situation Analysis Chobani finds itself in an unusual position as the world deals with an ongoing health crisis of unprecedented proportion. With the state of the country as it currently stands, it is our responsibility as a company to do what we can to assist those that are providing relief to families impacted by COVID-19 and help communities in need. Table A illustrates a SWOT analysis of Chobani highlighting the strengths and weaknesses, as well as the opportunities and threats presented to us in the coming year.

SWOT Analysis The SWOT analysis is limited to how the company will address the actions to be taken in order to address the growing need of families and members of the community that have been affected by the coronavirus. It will also outline how we as a company will be able to turn a negative to a positive for our stakeholders. With the recent expansion of our Twin Falls manufacturing plant, we now have the capability to rollout new flavors and increase production exponentially. This, paired with the amount of social influence and increased brand recognition, will increase revenue which, subsequently, will afford us the opportunity to give back to the communities hit hardest by the pandemic, while at the same time using aggressive marketing campaigns to highlight our efforts to provide aid to communities across the nation. This will in turn broaden the brand recognition of the Chobani name and ultimately increase revenue to the benefit of our stakeholders. In contrast, there are several weaknesses and threats to our efforts to maintain profitability and growth of our brand. Not all new flavors develop a following strong enough to gain popularity amongst new consumers or in new markets, and the popularity of social media advertising limits community interaction when promoting the brand as a whole. Furthermore, an exponential increase in production, in addition to very expensive relief efforts, 4

as well as the effect of a lowered sales due to a struggling economy may also reduce profit. Despite that, as one of the largest suppliers of Greek yogurt in the world, we are confident that all actions taken to provide assistance to those most severely affected by this deadly virus, shall bear fruit in the coming year, and ultimately, not only broaden our brand recognition, but raise our social standing in the community, and secure future profitability for stakeholders.

Table A Internal factors

Strengths

Weaknesses

Offerings

New flavor offerings and varieties of uses for yogurt to highlight marketing campaign

Manufacturing

Recent expansion of manufacturing plant allows for production of more products An abundance of influence and recognition through a myriad of social media platforms.

New flavors or uses may not develop a strong enough following to warrant continued production. Costs of increased production

Social media advertising limits face to face interactions with consumers.

External Factors

Opportunities

Threats

Consumer/ social

Many opportunities to give back to the community and provide aid to those in need. Increased brand recognition will result in increase of sales across all markets.

Extensive aid may limit profit margin for stakeholders

Marketing

economic

High unemployment rates may affect spending by consumers.

Industry Analysis: Trends in the Yogurt Market The world is in a state of crisis. To date, there are 950,625 that can be attributed to the Novell Coronavirus. The United States has the highest number of deaths with 202,213 COVID19 related fatalities. (5) This has created an environment, and a developing culture, where health is of the utmost importance to consumers. “Yogurt continues to rank as one of the top 10 superfoods, right up there with ancient grains, kale, hemp, chia and olive oil.” (9). Greek yogurt has gained increased popularity amongst consumers because of its high nutritional values and the abundance of health benefits. Among the more notable characteristics of Greek yogurt, the high protein content, the removal of the majority of lactose found in traditional yogurt, and the low sugar content, makes it desirable to consumers looking to improve their eating habits as a way of promoting a healthy lifestyle. 5

Market researchers forecast a compound annual growth rate of 7.1% which alludes to growth of the yogurt industry upwards of $10 billion USD by 2024. yogurt in various flavors is also boosting the sales of Greek yogurt.

(7)

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Availability of Greek

On a global scale, the

Greek yogurt market exceeded a value of US$ 5.6 billion in 2018 and was projected to have an annual growth of 7.4% in 2019. Factors driving growth include consumer shift towards healthier living by consumers, new and exotic flavor offerings offered by various companies, and new forms of Greek yogurt, (drinks, frozen yogurt, condiments and sauces, etc.). With growing interest in healthier living coupled alongside the increase in obesity, most likely due to quarantine mandates, those that have adopted a healthy lifestyle are expected to impact the market as well, driving growth even further. “Currently, the United States yogurt market is valued at $3.7 billion USD. Chobani is the most consumed Greek yogurt in the country with a market share of 54%” (10)

Competitor Analysis “…The U.S. yogurt per capita consumption amounted to about 13.4 pounds per person in 2018.”

(11)

With a projected global market of over $10 billion USD by 2024, the industry is

extremely competitive. Broadly speaking, product offerings fall under spoonable yogurt, and yogurt drinks. All competitors in this market have a variety of flavor offerings such as strawberry, blueberry, vanilla, and plain. With the consumer view of Greek yogurt transitioning as a healthy alternative to traditional snacks and meals, manufacturers find themselves seeking ways to distinguish themselves from the rest, refocusing their efforts to come up with new and exciting flavors, developing different types of yogurts such as dried or powdered forms, create gluten free versions, and produce specialty drinks that are high in probiotics. These innovations will raise consumer awareness of Greek yogurt and spur continued market growth. Despite the growing consumer base of Greek yogurt, the increasing availability of, in addition to the emerging market for varying types of yogurt, may pose a potential threat to market growth. Given the number of those unemployed due to the effect of the coronavirus pandemic regarding non-essential workforce, a decline in economic spending can also limit market growth.

Company analysis

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When company founder Hamdi Ulukaya founded the company in 2005, he did so with a single mission in mind. His belief was that “Everybody should be able to enjoy a pure, simple cup of yogurt. And that’s what Chobani is.”

(8)

Ulukaya spent the better portion of two years

perfecting his yogurt before it hit the shelves in 2007. In five years, the company made over $1billion USD in sales. In 2012 they opened what is now the world’s largest yogurt manufacturing plant in Twin Falls, Idaho. In 2013, they expanded that plant to increase production and add the “Simply 100” light yogurt to its product line. According to Times News, the production capacity of said plant also increased from 100,000 cases a week to 1 million cases per week.

(2)

With the opening of Chobani SoHo, consumers are able to make their own yogurt

creations. This allows us to engage with our customer base on a more personal level, develop new flavors as suggested by our consumers, and get new ideas for new products, as well as, test them, all while engaging with our customer base through face to face interactions as opposed to social media which can be impersonal. Ultimately, competitors such as Danone, FAGE International, General Mills, and Nestle, offer a variety of products and flavors, what they lack, is the creativity that this company has when it comes to product development, consumer engagement, and social awareness. That is what separates the best from the rest!

Customer Analysis This section outlines the characteristics of our consumer market, as well as, describes the role Chobani plays in the shift to a healthier lifestyle, consumers are making in America today. Consumer Characteristics. Customers from all walks of life enjoy Chobani in its many forms. Primarily, Asian and Caucasian consumers, ages 25 – 44 with an average degree of higher learning, and an average income between $60,000 to over $125, 000 annually, purchase our products. (3) Because your average consumer is usually on the go and has a busy schedule, Chobani offers many of their products in a convenient to-go packaging for those that are always on the move. It is more likely to be chosen as a go-to meal replacement for those that are seeking a healthy replacement for your typical snacks in between meals, or as an alternative meal replacement when they cannot stop to eat.

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Healthier Lifestyle Choices. With the world in the midst of a pandemic, consumers are seeking ways of increasing their ability to fight potential infection of, the coronavirus. An article in Forbes magazine highlights some of the benefits of yogurt when it comes to healthy living. The article states that “The mental and physical health challenges of the COVID-19 pandemic are numerous and not limited to the virus itself.”(12) It is suggested, that following a Mediterranean diet will improve their chances of staying COVID-19-free and maintaining comprehensive health. The article goes on to say that milk products such as yogurts contain high quantities of tryptophan, which is a sleep inducing amino acid that has been known to reduce the chance of respiratory infection, which is one the major symptoms of coronavirus infection. Greek yogurt is recommended because it contains low amounts of fat and sugar, and is high in protein. (12)

5. Market-Product Focus

This section outlines the marketing and product objectives as the company addresses relief efforts to provide aid to those most impacted by COVID-19.

Marketing and Product Objectives The objective of this marketing campaign is to first, and foremost, address the issue of the need for aid by those impacted by COVID-19. Secondly, to increase market recognition through personal interactions as opposed to social media platforms in order to position the company as one that relates to the desires and needs of the average Joe. Ultimately, the intention is to increase brand recognition in order to increase revenue, so as to, defray the cost of the increase in production, as well as, to do our best to maintain, if not increase, profit margins for stakeholders while at the same time providing a helping hand to those left destitute by the pandemic. This will be accomplished in several ways: 

Donations. In response to the growing need to feed millions impacted by COVID-19, Chobani will begin to deliver truckloads of Greek yogurt, in a variety of flavors including new flavors specifically meant to address pandemic relief, to various organizations that

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service communities, food banks, and disaster relief organizations across America. In addition to that, we will also provide monetary donations to organizations that provide varying types of assistance outside of hunger relief efforts. 

CHOmobile Giveaways. A national tour will take place featuring the CHOmobile. A fleet of 10 CHOmobiles will begin making stops in various communities that are identified as those greatest in need. This will increase face to face interactions with the communities most affected by the pandemic. Chobani representatives will provide free cups of yogurt and market new flavors and products, hand out coupons, host competitions, giveaways, and raffles, create a fun and exciting atmosphere, thereby humanizing the company as a whole and increasing brand recognition.

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Food Drives. In addition to monetary and product donations, we will also begin our own food drive campaign to receive and distribute much needed relief to families within our own communities. This will be conducted at our Chobani Cafes. The cafes will be transformed into food pantries meant to service those in need on a more local level. The reasoning behind why the cafes will be used is because they are local businesses and are run by members of the communities they serve. This will further the personalization of the company as a whole, increase brand recognition, and position the company as one that is in touch w the community.

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Lower Price Points. By lowering the price of each cup of yogurt and various of our other product offerings, it will make our products more accessible to those experiencing financial hardship during these times. It will also lure new customers that may not have tried our products in the past due to the availability of lower priced competitor offerings.

Target Markets The primary target for this campaign will not be those that comprise our usual demographic. This campaign will target low to moderate income families with one to five members, who face economic crisis due COVID-19. The primary bread winners of this demographic may face financial hardship due to unemployment or underemplo...