Chobani's Branding Strategy
- 1. Introduction Company Competitors Customers Future by: Andrea Pan Image source: Chobani
- 2. Introduction Company Competitors Customers Future At a Glance.. Chobani’s Positioning What methods does it use to achieve this brand image? Who are they competing with? How does Chobani stand out from them? Who buys Chobani? What do these buyers value? How can Chobani improve given current trends? What do consumers value and how can Chobani better position themselves for the future?
- 3. Introduction Company Competitors Customers Future Chobani’s Brand Core Components Community & Inclusivity Universal Wellness Simplicity Chobani Foundation works with organizations that help improve various communities 30% of Chobani’s employees are refugees and immigrants Has a product that raises money for military families Posts many recipes on how to cook with Chobani as a healthy alternative. Recipes made for all age groups. Cares about wellness of environment and their workers as well Promotional videos repeatedly include the words simple and wholesome Product descriptions on website proudly showcase each item’s no frills ingredients list Chobani positions itself as a socially conscious, natural lifestyle brand that caters to all age groups. Its emphasis on health and simple ingredients furthers its image as a premium product and appeals to those with higher income.
- 4. Introduction Company Competitors Customers Future Released Nov 2018 to support ‘Operation Homefront’ Distributes Chobani to communities after disasters. Receives extensive coverage on media. Has a section on their website called “Impact” which lists all their social initiatives. Focus on Community & Inclusivity The Chobani Foundation has worked with to help children’s hunger, those with special needs, and the homeless. These activities are posted on their website and their Twitter + FB accounts.
- 5. Introduction Company Competitors Customers Future Universal Wellness Recipes tab on website and Pinterest page show how to cook with Chobani Wellness resources for all age groups Values wellness in many perspectives
- 6. Introduction Company Competitors Customers Future Simplicity “Real fruit, real flavor. Never artificial.” Introduction video on Youtube Takes pride in their simple ingredients
- 7. Introduction Company Competitors Customers Future Other branding efforts • In December, partnered with other food companies to host 3 giveaways on Instagram. • Partner companies– La Colombe Coffee, Justin’s Almond Butter, Banza Pasta– are high end & premium in their industries à strengthens Chobani’s image as a premium product Recent releases including plant-based yogurt and a sour cream alternative contributes to Chobani’s image as a healthy and inclusive brand
- 8. Introduction Company Competitors Customers Future Chobani’s Competitors • From the pie chart, it is evident that Chobani, Danone, and Yoplait are the leading yogurt brands in America. • Based on similar revenues, reports from IBIS World and Owler, Chobani’s main competitors are Danone and Yoplait. 20.23% 18.19% 13.42% Market Shares of Top Yogurt Brands in 2017 source: Gale Chobani Dannon Yoplait Activia Fage Danimals Noosa Stonyfield Farm Other
- 9. Introduction Company Competitors Customers Future Chobani vs Yoplait & Danone At the most basic level, there doesn’t seem to be a significant difference between Chobani and their competitors but trends in sales prove otherwise. Shows the importance of branding and staying current. Product Mix Distribution Channels Price All include: Standard, Children, “light” Mass produced. Can be found at all grocery stores and Costco. Mass produced. Can be found at all grocery stores and Costco. Mass produced. Can be found at all grocery stores and Costco. $$ $ $ Similarities Differences -3.4% +7.6% How much US retail sales of yogurt fell in the 52 weeks prior to Jan 26, 2019 Chobani’s growth in Jan- Feb 2019 à the only major brand to show growth that month Chobani has much stronger brand identity Chobani caters to changes in consumer preferences Source: Food Navigator USA
- 10. Introduction Company Competitors Customers Future Chobani’s Customers Chobani’s current customers are young, educated, high-end, and strongly value natural foods and social impact. Who are they? • Chobani does not limit who they target but their most common buyer is 24-35 yr old • Most common income bracket is $125k+ and the highly educated. These shoppers tend to buy healthy foods that are free from chemicals and only made from pure ingredients. • They steer clear from ”diet” foods that contain more processed and unnatural ingredients à this is one of the main reasons why Chobani was able to steal market share from Yoplait and Danone Source: Numerator, Fortune, Facebook • Values social impact. High positive feedback whenever Chobani posts about their social impact activities.
- 11. Introduction Company Competitors Customers Future Next Steps Trends in the yogurt industry Trends in the food industry Recommendations for Chobani
- 12. Introduction Company Competitors Customers Future Yogurt Trends Innovation Plant-based Overall yogurt sales fell by 3.4% (in the past yr) Icelandic skyr sales rose by 15.8% Non-diary yogurt sales rose by 39.6% Food Trends • After 3 years of losing money, Yoplait launch ‘Oui’ a French style yogurt. Due to this launch, for the first time, Yoplait was able to experience gains. • Australian-inspired yogurt also extremely popular • Regardless of scientific backing, many consumers have the perception that plant-based foods are healthier than diary Source: Food Navigator USA Source: Accenture, FoodInsight.org Transparency • 9 in 10 consumers globally rate ingredient transparency as important or very important for companies to address Social impact • 55% of consumers are willing to pay more for products and services from companies committed to positive social and environmental justice Natural • 7 in 10 consumers would be willing to give up a familiar food for one that did not contain artificial ingredients Emphasis on health • 9 in 10 millennials consider diet to be one of the pillars of wellness • Consumers are looking for functional foods that promote good health or lower risk for disease
- 13. Introduction Company Competitors Customers Future Recommendations 1 Increase Transparency In order to strengthen its image as a simple, natural, and healthy brand, Chobani should utilize its website and social media platforms to increase transparency on where it’s sourcing its ingredients as well as the process behind creating the yogurt. Noosa shows its consumers their cow farms and where they source their honey. “making skyr: a simple process” : Siggis has a video on their website the shows their yogurt making process 2 Strengthen the “healthy-lifestyle” branding Make the recipes that Chobani has into fast, short cooking tutorial videos to release on Facebook, Youtube, and Instagram. à can efficiently showcase Chobani as a healthy solution • 90% of consumers watch video through their mobile device • 91% of millennials enjoy cooking • Can reach a large audience very fast, videos online are highly shared Emphasize Chobani’s social initiatives • Currently, only promoted on Facebook and Twitter. Should also use Instagram since their Instagram page has the most engagement. • Can utilize their product packaging as well 3 Lush’s Charity Pot: the lid tells you what organization you are supporting if you buy the pot.
- 14. Introduction Company Competitors Customers FutureImage source: Chobani Thank you!