Week Six - Week 6 Tutorial Work PDF

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Week 6 Tutorial Work...

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WEEK SIX - CHOBANI 1. Why do you think big brands like Nestle and Dannon couldn’t compete with Chobani in the Greek-style yoghurt market? Big brands such as Nestle and Danone were not able to compete with Chobani in the greek-style yoghurt category. This is due to Chobani being able to closely develop their yoghurt brand and stay ahead of competitors like Nestle that just added this product to their mix. Furthermore, those companies that provide a variety of offerings such as Coffee, Breakfast Cereals, Chocolate & Confectionery, Snacks & Muesli Bars are not able to narrow down their Greek-style yoghurt to create a competitive edge as their products saturate most perishable items. According to a case study provided by Lumen Learning, the recipe for Chobani is thicker and creamier than regular yogurt, with twice the protein and none of the preservatives and artificial flavours found in conventional yogurt. What’s in the yogurt —five live and active cultures, including three probiotics. Therefore, it is a much healthier alternative than the Greek Yoghurt offerings provided by competitors. Additionally, Chobani has rolled out high-protein, low-sugar products that elevated Greek yogurt from niche to its mass-market status by catering to needs for men, better options for children and improved portable, drinkable or lower-sugar options. As they were one of the first brands to implement these changes, they are more recognisable than competitors.

2. How Chobani should react to the threat of smaller, organic (Craft) yogurt brands (e.g. Aria Craft Yogurt)? Some suggestions for Chobani to solve the certain threats of smaller, organic yoghurt brands that are able to do the same R&D and provide similar competitive advantages include the slight increase of their product offerings. Whilst it would not be beneficial to expand to multiple different offerings, one or two newly introduced products that provide the same nutrients of the greek yoghurt offering allows for Chobani to have a competitive edge on competition whilst still providing the same high-quality product that shoved Chobani into the spotlight and become a market leader. Additionally, Chobani could implement focus groups for new product offerings such as a vegan substitute that is still high in protein and low in sugar and provides other nutrients special to Chobani products. These focus groups will allow Chobani to test new product offerings before launching to market to test new flavours and get feedback. This will ultimately allow Chobani to target more niche groups that are currently trending to gain more market share and counteract the threat of smaller, organic craft brands.

References: https://courses.lumenlearning.com/vccs-mkt100-17fa/chapter/outcome-using-themarketing-mix-2/...