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New Product Pitch
Chobani
SoHo
Light and healthy, yogurt is a staple in diets around
the world, and while Greek yogurt has been
available in Europe since the 1980s, it has only
gained traction in the United States since 2009.
Exploding into a $1B company in a very short
amount of time, Chobani’s understanding of the
market in which it dominates is relatively shallow
given the size of its brand. Any nugget of actionable
wisdom that our agency provides to Chobani is of
immediate value, and this report is a goldmine.
Over the last five years, the yogurt category has been heating up with no risk of
curdling. Retail sales of yogurt category grew 7.5% in 2011 and the category is
forecasted to grow an additional 9% in 2012 (Mintel’s Yogurt and Yogurt Drinks,
2012). Growth in the category is driven primarily by demand for Greek yogurts, of
which Chobani is the clear market leader, holding 50% of the market share in the
Greek category and 17% of the overall yogurt segment, more than double its
closest competitor, Yoplait (Chobani Takes Gold in the Yogurt Aisle, 2012).
Growing with no plateau in sight, Greek-style yogurt’s sales are expected to
double in 2012. To meet this demand, Chobani’s 80,000 square foot facility
produces 1.2 million cases of Greek yogurt each week, with 32 SKUs in a variety
of flavors and sizes, operating multiple production lines running around the clock,
and staffing 670 employees in three full-time shifts (Small Business Administration,
2012).
The recipe for Chobani is thicker, creamer, higher in protein, and lower in fat than
normal yogurt. It includes no preservatives or artificial flavors. These attributes are
common among other competitors in the Greek yogurt space due to the
manufacturing process (strained in cheesecloth) of Greek-style yogurt, and
Chobani is pre-dated in the Greek yogurt category by Fage, a yogurt manufacturer
founded in 1926 and headquartered in Athens, Greece. Fage yogurt has been
popular in Europe since 1981, but Chobani was the first Greek yogurt to seek
EXECUTIVE SUMMARY
1. The yogurt category has grown for five
years straight and is expected to grow
another 9% in 2012.
2. Greek yogurt is fueling category growth,
with sales expected to double in 2012.
3. Chobani holds 50% of the market share in
the Greek yogurt category.
4. Threats are numerous in the highly-
competitive category which is receiving
widespread attention from iconic brands in
the category.
5. Chobani is the highest-priced product in
the highest-priced niche of the yogurt
category, but is it just a fad?
Situation Analysis
1
mass distribution channels via the yogurt section in grocery
stores and supermarkets. This placement allowed the Chobani
brand to be marketed to a wider consumer base. Since the
explosion of Chobani, all competitors’ Greek yogurts have
received facings in major supermarkets alongside Chobani, and
stores like Wegmans have begun introducing store-brand Greek
yogurt at a lower price point than Chobani, creating an extremely
competitive yogurt marketplace.
The price point of Chobani varies widely between stores, with a 6
oz. single-serving cup ranging from $0.99 to $1.49 depending on
the supermarket. Other brands of Greek yogurt are priced
similarly. Typically, store brands of Greek yogurt are priced at
about $0.10 lower than Chobani.
The entire category of Greek yogurt is priced slightly higher than
non-Greek yogurts. During qualitative research, a number of
respondents classified Greek yogurt as a meal replacement while
identifying non-Greek yogurt as a snack, due to Greek’s more
substantial, more filling formulation. Coupled with its status as a
Better-For-You (BFY) food, consumers are willing to pay up to
twice as much for Greek yogurt.
Within the Greek category, price points vary as well, with Chobani
priced in most locations as the most expensive Greek yogurt,
even though most competitors offer the same health benefits.
What competitors lack, however, is Chobani’s positioning as a
designer-label yogurt, which justifies its higher price compared to
similar products in the category. During qualitative research, we
uncovered a number of insights regarding the social status
attached to the consumption of Chobani.
As the highest-priced product in the highest-priced niche of the
yogurt category, Chobani’s newfound position as the market
leader is anything but unassailable.
• Market-dominant position
• Designer-label status
• Healthier than non-Greek
• Great mid-afternoon snack
• High rate of fanaticism
• Strong desire to innovate
• Potentially a fad
• Higher price
• Not made in Greece
• High in sugar
• Hard to eat on-the-go
• Yogurt category growth
• Greek category growth
• Healthy eating trend
• Intense competition
• Low category brand loyalty
2
S W
O T
To identify the primary motivations behind Chobani purchase decisions, we
conducted twelve focus group sessions with a total of 48 participants. All
respondents were self-selected, yogurt-consuming Newhouse Advertising
undergraduates between the ages of 18 and 22. In exchange for participating in
the focus groups, participants were given extra credit in either ADV 206 or ADV
307.
During the focus group, participants engaged in a variety of tasks, including
surveys, direct questions, taste testing, creation of collages, word associations,
picture sorts, packaging design, and ad creation.
Analysis of the results focused on product usage and consumption habits,
attitudes toward the brand and category, brand associations, product-specific
pros and cons, packaging improvements, pricing strategy, and purchase behavior.
Attitudes Toward Yogurt
Yogurt is primarily consumed as an early or mid-morning snack expected to
provide fuel and stave off hunger between one and two hours. Taste is a leading
driver of brand preference. The majority of respondents were moderate yogurt
eaters with moderate brand preference and low brand loyalty. Because our
respondents were not brand-loyalists, accessibility was the most important
consideration; most were okay eating whichever brand was readily available.
EXECUTIVE SUMMARY
1. We conducted twelve focus groups deeply
analyzing the preferences and attitudes of
undergraduates at Syracuse University.
2. Key insights were uncovered in the
following areas:
1. Product usage
2. Purchase behavior
3. Packaging considerations
3. Research-driven problems were identified
and actionable solutions recommended.
Primary Research
3
Attitudes Toward Chobani
Chobani was regularly referred to as a healthier, more natural, and
more upscale version of traditional yogurt. Many respondents
identified Chobani as a regular part of a balanced breakfast,
providing vitamins and aiding in digestion.
Brand Associations
Awareness of Yoplait and Dannon were at 100%, with a number
of respondents preferring either brand over Chobani, of which
about three-fourths of participants were aware. Of the brands
compared, Fage had the lowest level of consumer awareness,
often with less than one-fourth of participants recognizing the
brand. No participants were able to associate a clear brand
identity with Fage. Yoplait was seen primarily as female-targeted
dieting food, and Dannon was strongly associated with children.
Product-Specific Analysis
Plain yogurt was rejected by most participants, citing the fact that
the flavor was unpalatable. One respondent suggested adding
artificial sweetener to the Plain variety to make it a healthier snack
than fruit flavors, which health-conscious respondents regularly
rejected. Texture was a polarizing issue for respondents, with an
equal number of participants responding positively and negatively
to the thicker, chunkier texture. All participants vigorously stirred
Chobani before consumption, and most cited the inert separation
of liquids in the product from factory-to-table as the biggest
hurdle to having the perfect yogurt.
Packaging Analysis
Respondents were most concerned with the packaging as a
hinderance to consumption on-the-go. One respondent stated
that he was uncomfortable throwing the yogurt in his bag for fear
that the thin fail would be ruptured by other objects in the bag.
Others cited the odd shape and size of the single-serving cups as
negatives, since the required vigorous stirring forces the
consumer to be seated to avoid spilling the product.
Pricing Strategy
We determined that the price a yogurt eater would be willing to
pay for Chobani differed depending on whether or not they
intended to eat Chobani often. The average price willing to be
paid by light eaters was higher than that willing to be paid by
heavy eaters, by a factor of almost 2:1. Heavy eaters demand
Chobani at costs under $2, while light eaters would pay an
average of $3.50 for a single serving of Chobani.
Purchase Behavior Analysis
Respondents exceedingly reported that their purchase decision
was made in the yogurt aisle. Very few reported specifically
writing any brand name on a shopping list, instead preferring to
approach the decision with several brands in mind and make the
final selection after comparing availability and price at the store.
4
Insight #1: Product Usage
Most people eat Chobani for breakfast. It’s typically eaten alone
or mixed with a cereal or granola. When a consumer is actively
dieting, Chobani is often substituted for a meal, but for non-
dieters, this is rarely the case. Health fanatics and heavy yogurt
eaters often prefer plain Chobani over fruity Chobani due to the
high sugar content of the fruits, but the vast majority of
respondents had issues with the flavor of plain Chobani, calling it
too tart. One dieting respondent adds artificial sweetener to plain
Chobani for a tasty, healthy treat. A sugar-free flavored yogurt
would be very popular among dieters.
Insight #2: Purchase Behavior
The vast majority of the purchase decision is made at the store
shelves. Most respondents do not list their brand name when
making a grocery list, instead writing “yogurt.” An interesting
behavior emerges among a sizable segment of the health-
conscious population. Many individuals pick up two different
kinds of yogurt and simultaneously flip them around to read and
compare the nutrition labels on the products. Currently, the rear of
the Chobani package lacks clear brand cues. Adding immediate
calls to action including a see-through section of the container
that allows the user to see the yogurt and a bolder statement of
the company’s commitment to charity would sway many
purchasers at the point of decision.
Insight #3: Packaging Considerations
Chobani could increase purchase intent among a certain segment
of the population by creating a more portable variety, taller and
thinner, sold in six or eight packs, with a thick spoon attached.
The majority of respondents wish that single-serving Chobani was
packaged with a spoon and thicker lid. There seems to be an
opportunity to build a plastic lid with a break-away spoon to
make Chobani more backpack-friendly by reducing the risk of
spills and increasing convenience.
5
Based on our research, what Chobani needs is not another yogurt: its sales are
already growing exponentially, and any new product introduced into the yogurt
category would be competing primarily with Chobani’s other products. What
Chobani really needs is to disrupt another industry while the success of the last is
so fresh on the minds of consumers.
In the course of our research, we discovered an insight:
“I eat Greek yogurt as a meal replacement, but the only
problem is, it’s not enough to fill me up.”
Even though many respondents reported that Chobani was more filling than other
yogurts, when pressed, they admitted that they were often still hungry afterwards.
Chobani SoHo is an attempt to create a new category of yogurt: a meal
replacement yogurt, the existence of which, by juxtaposition, clearly positions
traditional Chobani yogurt as an important part of a meal, not the entire meal itself.
If any company should have the mettle to create a new category of yogurt, it
should be the company that completely disrupted the yogurt category just three
years ago.
EXECUTIVE SUMMARY
1. Chobani should introduce a line of savory
yogurts modeled after the offerings at
Chobani SoHo.
2. Chobani SoHo will be positioned as an
upscale meal replacement for lunch.
3. Chobani SoHo will be priced at $5.99.
4. The offerings should be made available
both in the grocery store (packaged meal
section) as well as at kiosks or specialized
vending machines in major metros.
New Product Plan
6
Product
We have added a number of new things to the Chobani SoHo
product to make it ready for distribution on store shelves.
Chobani SoHo’s line currently includes a number of sweet yogurts
and two savory yogurt dishes (Sea Salt + Cracked Pepper,
Cucumber + Olive Oil), so our initial release would focus only on
the savory yogurt lines as a better-for-you lunch option.
Additionally, the product will be served in glass-bottom bowls,
etched with the Chobani logo, with a twist-off plastic top which
contains a matte-finish, thick plastic spoon (all recommendations
taken directly from qualitative research). All parts of the bowl
should be recyclable, but we expect that many customers will
wash the bowls for reuse.
Finally, we intend to include about 10oz of yogurt and added
ingredients in each package rather than the 6oz provided at
Chobani SoHo or in Chobani’s existing product line.
Price
Chobani SoHo is positioned as a lunch, not a snack. Since the
Chobani name already conveys designer-brand status and
commands a higher price, we position the Chobani to-go meal
replacement lunch slightly higher than other pre-made lunches at
$5.99. We contend that it is NOT simply an expensive version of
the $0.99 single serving meal, but an independently branded
product with a different function than the single serve yogurt.
Place
Since Chobani SoHo’s primary promise is a convenient lunch,
placement should aim to make purchasing the product as
convenient as possible.
Located in the packaged meal section of the grocery store, the
Chobani SoHo product represents more than just a single-serve
yogurt, it’s a true meal replacement.
Franchised kiosks also provide a unique opportunity for both
placement and promotion. Additional retail outlets like the
flagship store in NYC could crop up in major metropolitan areas
and business districts across the United States.
Custom-made vending machines featuring Chobani SoHo
products, placed in office buildings around the world, could offer
a healthy lunch to busy professionals who are not willing to
sacrifice their health for a fast meal.
Promotion
The SoHo NYC neighborhood provides for a unique promotional
medium. Essentially, it’s a brand in itself, and Chobani can attach
itself to the image of SoHo in an honest fashion because of its
flagship store located there. Because SoHo hosts a number of
artists in residence, Chobani would pair with a new artist each
month to redesign the Chobani SoHo lid in their own unique style
to further add to the brand’s designer-label equity.
7
Objective
To persuade urban females to replace a meal with Chobani
SoHo, our new savory yogurt meals.
Target Audience
Danielle is a 28 year old from the suburbs of Chicago. After
attending Indiana University and graduating with a degree in
Communications in 2006, she got a job as the Marketing Director
at a Web Development firm, where she works between fifty and
sixty hours a week. Her office culture is relatively laid back, so
she often goes out for lunch, but when it gets busy, it gets really
busy. In times like this, she needs a lunch she can bring and
leave in her fridge at work to eat at her desk without worrying
about leaving the office for lunch or hitting the break room for
unhealthy snacks.
What do they currently believe?
Yogurt is a very healthy snack, but by itself, it only provides two
hours of energy, so it’s not substantial enough to be a meal.
What do we want them to believe?
Chobani SoHo is a substantial, healthy meal that won’t leave you
feeling heavy.
Single Minded Proposition
Chobani SoHo is a true meal replacement, not just a snack.
Reason to Believe
The larger size of Chobani SoHo and the extra, healthy
ingredients will fill you up, add important antioxidants to your
diet, and help you manage your weight. The savory flavors add
depth to the dish that makes it feel more like a meal than a
single-serve Chobani.
Creative Brief
8
Ad #1: Online (Banner Ad, 8:30a-10:30a) Ad #2: TVC (Morning TV News/Weather Integration)
Advertisements
9
The plan to introduce Chobani SoHo is the next logical step in the brand
development plan for Chobani. Their SoHo store serves as an excellent test
market for new products, but they still position the SoHo line as a snack.
During our research, we found that many people are consuming Greek yogurt for
lunch, but it’s not really a satisfying lunch. It’s only a 6 oz portion. It’s really a better
snack than it is a meal replacement. Let’s help people understand this and
reposition Greek yogurt where it belongs, as a snack.
Chobani SoHo provides a convenient, healthy lunch, a huge motivator for food
choice behaviors among our target audience. We believe that Chobani’s
consumers would absolutely buy Chobani SoHo while on the go, and many would
even stock their mini-fridge at work with the product.
If you would argue that this plan brings nothing new to Chobani, ask yourself
whether they are serving 3.5oz of Chobani yogurt at the SoHo store as a snack or
as a meal replacement. In fact, the idea that the SoHo line will be disruptive in the
prepackaged meal category is of extraordinary value to Chobani. It would create a
new category for yogurt as a meal replacement, something that has never been
created before.
EXECUTIVE SUMMARY
1. They’re already in a position to launch.
2. Position Chobani SoHo as a meal
replacement.
3. Reposition Greek yogurt as a snack.
4. Provide the most convenient healthy lunch.
5. Create a new category for yogurt.
Rationale
10

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Chobani New Product Development | Newhouse Advertising Graduate Program

  • 1.
  • 2. New Product Pitch Chobani SoHo Light and healthy, yogurt is a staple in diets around the world, and while Greek yogurt has been available in Europe since the 1980s, it has only gained traction in the United States since 2009. Exploding into a $1B company in a very short amount of time, Chobani’s understanding of the market in which it dominates is relatively shallow given the size of its brand. Any nugget of actionable wisdom that our agency provides to Chobani is of immediate value, and this report is a goldmine.
  • 3. Over the last five years, the yogurt category has been heating up with no risk of curdling. Retail sales of yogurt category grew 7.5% in 2011 and the category is forecasted to grow an additional 9% in 2012 (Mintel’s Yogurt and Yogurt Drinks, 2012). Growth in the category is driven primarily by demand for Greek yogurts, of which Chobani is the clear market leader, holding 50% of the market share in the Greek category and 17% of the overall yogurt segment, more than double its closest competitor, Yoplait (Chobani Takes Gold in the Yogurt Aisle, 2012). Growing with no plateau in sight, Greek-style yogurt’s sales are expected to double in 2012. To meet this demand, Chobani’s 80,000 square foot facility produces 1.2 million cases of Greek yogurt each week, with 32 SKUs in a variety of flavors and sizes, operating multiple production lines running around the clock, and staffing 670 employees in three full-time shifts (Small Business Administration, 2012). The recipe for Chobani is thicker, creamer, higher in protein, and lower in fat than normal yogurt. It includes no preservatives or artificial flavors. These attributes are common among other competitors in the Greek yogurt space due to the manufacturing process (strained in cheesecloth) of Greek-style yogurt, and Chobani is pre-dated in the Greek yogurt category by Fage, a yogurt manufacturer founded in 1926 and headquartered in Athens, Greece. Fage yogurt has been popular in Europe since 1981, but Chobani was the first Greek yogurt to seek EXECUTIVE SUMMARY 1. The yogurt category has grown for five years straight and is expected to grow another 9% in 2012. 2. Greek yogurt is fueling category growth, with sales expected to double in 2012. 3. Chobani holds 50% of the market share in the Greek yogurt category. 4. Threats are numerous in the highly- competitive category which is receiving widespread attention from iconic brands in the category. 5. Chobani is the highest-priced product in the highest-priced niche of the yogurt category, but is it just a fad? Situation Analysis 1
  • 4. mass distribution channels via the yogurt section in grocery stores and supermarkets. This placement allowed the Chobani brand to be marketed to a wider consumer base. Since the explosion of Chobani, all competitors’ Greek yogurts have received facings in major supermarkets alongside Chobani, and stores like Wegmans have begun introducing store-brand Greek yogurt at a lower price point than Chobani, creating an extremely competitive yogurt marketplace. The price point of Chobani varies widely between stores, with a 6 oz. single-serving cup ranging from $0.99 to $1.49 depending on the supermarket. Other brands of Greek yogurt are priced similarly. Typically, store brands of Greek yogurt are priced at about $0.10 lower than Chobani. The entire category of Greek yogurt is priced slightly higher than non-Greek yogurts. During qualitative research, a number of respondents classified Greek yogurt as a meal replacement while identifying non-Greek yogurt as a snack, due to Greek’s more substantial, more filling formulation. Coupled with its status as a Better-For-You (BFY) food, consumers are willing to pay up to twice as much for Greek yogurt. Within the Greek category, price points vary as well, with Chobani priced in most locations as the most expensive Greek yogurt, even though most competitors offer the same health benefits. What competitors lack, however, is Chobani’s positioning as a designer-label yogurt, which justifies its higher price compared to similar products in the category. During qualitative research, we uncovered a number of insights regarding the social status attached to the consumption of Chobani. As the highest-priced product in the highest-priced niche of the yogurt category, Chobani’s newfound position as the market leader is anything but unassailable. • Market-dominant position • Designer-label status • Healthier than non-Greek • Great mid-afternoon snack • High rate of fanaticism • Strong desire to innovate • Potentially a fad • Higher price • Not made in Greece • High in sugar • Hard to eat on-the-go • Yogurt category growth • Greek category growth • Healthy eating trend • Intense competition • Low category brand loyalty 2 S W O T
  • 5. To identify the primary motivations behind Chobani purchase decisions, we conducted twelve focus group sessions with a total of 48 participants. All respondents were self-selected, yogurt-consuming Newhouse Advertising undergraduates between the ages of 18 and 22. In exchange for participating in the focus groups, participants were given extra credit in either ADV 206 or ADV 307. During the focus group, participants engaged in a variety of tasks, including surveys, direct questions, taste testing, creation of collages, word associations, picture sorts, packaging design, and ad creation. Analysis of the results focused on product usage and consumption habits, attitudes toward the brand and category, brand associations, product-specific pros and cons, packaging improvements, pricing strategy, and purchase behavior. Attitudes Toward Yogurt Yogurt is primarily consumed as an early or mid-morning snack expected to provide fuel and stave off hunger between one and two hours. Taste is a leading driver of brand preference. The majority of respondents were moderate yogurt eaters with moderate brand preference and low brand loyalty. Because our respondents were not brand-loyalists, accessibility was the most important consideration; most were okay eating whichever brand was readily available. EXECUTIVE SUMMARY 1. We conducted twelve focus groups deeply analyzing the preferences and attitudes of undergraduates at Syracuse University. 2. Key insights were uncovered in the following areas: 1. Product usage 2. Purchase behavior 3. Packaging considerations 3. Research-driven problems were identified and actionable solutions recommended. Primary Research 3
  • 6. Attitudes Toward Chobani Chobani was regularly referred to as a healthier, more natural, and more upscale version of traditional yogurt. Many respondents identified Chobani as a regular part of a balanced breakfast, providing vitamins and aiding in digestion. Brand Associations Awareness of Yoplait and Dannon were at 100%, with a number of respondents preferring either brand over Chobani, of which about three-fourths of participants were aware. Of the brands compared, Fage had the lowest level of consumer awareness, often with less than one-fourth of participants recognizing the brand. No participants were able to associate a clear brand identity with Fage. Yoplait was seen primarily as female-targeted dieting food, and Dannon was strongly associated with children. Product-Specific Analysis Plain yogurt was rejected by most participants, citing the fact that the flavor was unpalatable. One respondent suggested adding artificial sweetener to the Plain variety to make it a healthier snack than fruit flavors, which health-conscious respondents regularly rejected. Texture was a polarizing issue for respondents, with an equal number of participants responding positively and negatively to the thicker, chunkier texture. All participants vigorously stirred Chobani before consumption, and most cited the inert separation of liquids in the product from factory-to-table as the biggest hurdle to having the perfect yogurt. Packaging Analysis Respondents were most concerned with the packaging as a hinderance to consumption on-the-go. One respondent stated that he was uncomfortable throwing the yogurt in his bag for fear that the thin fail would be ruptured by other objects in the bag. Others cited the odd shape and size of the single-serving cups as negatives, since the required vigorous stirring forces the consumer to be seated to avoid spilling the product. Pricing Strategy We determined that the price a yogurt eater would be willing to pay for Chobani differed depending on whether or not they intended to eat Chobani often. The average price willing to be paid by light eaters was higher than that willing to be paid by heavy eaters, by a factor of almost 2:1. Heavy eaters demand Chobani at costs under $2, while light eaters would pay an average of $3.50 for a single serving of Chobani. Purchase Behavior Analysis Respondents exceedingly reported that their purchase decision was made in the yogurt aisle. Very few reported specifically writing any brand name on a shopping list, instead preferring to approach the decision with several brands in mind and make the final selection after comparing availability and price at the store. 4
  • 7. Insight #1: Product Usage Most people eat Chobani for breakfast. It’s typically eaten alone or mixed with a cereal or granola. When a consumer is actively dieting, Chobani is often substituted for a meal, but for non- dieters, this is rarely the case. Health fanatics and heavy yogurt eaters often prefer plain Chobani over fruity Chobani due to the high sugar content of the fruits, but the vast majority of respondents had issues with the flavor of plain Chobani, calling it too tart. One dieting respondent adds artificial sweetener to plain Chobani for a tasty, healthy treat. A sugar-free flavored yogurt would be very popular among dieters. Insight #2: Purchase Behavior The vast majority of the purchase decision is made at the store shelves. Most respondents do not list their brand name when making a grocery list, instead writing “yogurt.” An interesting behavior emerges among a sizable segment of the health- conscious population. Many individuals pick up two different kinds of yogurt and simultaneously flip them around to read and compare the nutrition labels on the products. Currently, the rear of the Chobani package lacks clear brand cues. Adding immediate calls to action including a see-through section of the container that allows the user to see the yogurt and a bolder statement of the company’s commitment to charity would sway many purchasers at the point of decision. Insight #3: Packaging Considerations Chobani could increase purchase intent among a certain segment of the population by creating a more portable variety, taller and thinner, sold in six or eight packs, with a thick spoon attached. The majority of respondents wish that single-serving Chobani was packaged with a spoon and thicker lid. There seems to be an opportunity to build a plastic lid with a break-away spoon to make Chobani more backpack-friendly by reducing the risk of spills and increasing convenience. 5
  • 8. Based on our research, what Chobani needs is not another yogurt: its sales are already growing exponentially, and any new product introduced into the yogurt category would be competing primarily with Chobani’s other products. What Chobani really needs is to disrupt another industry while the success of the last is so fresh on the minds of consumers. In the course of our research, we discovered an insight: “I eat Greek yogurt as a meal replacement, but the only problem is, it’s not enough to fill me up.” Even though many respondents reported that Chobani was more filling than other yogurts, when pressed, they admitted that they were often still hungry afterwards. Chobani SoHo is an attempt to create a new category of yogurt: a meal replacement yogurt, the existence of which, by juxtaposition, clearly positions traditional Chobani yogurt as an important part of a meal, not the entire meal itself. If any company should have the mettle to create a new category of yogurt, it should be the company that completely disrupted the yogurt category just three years ago. EXECUTIVE SUMMARY 1. Chobani should introduce a line of savory yogurts modeled after the offerings at Chobani SoHo. 2. Chobani SoHo will be positioned as an upscale meal replacement for lunch. 3. Chobani SoHo will be priced at $5.99. 4. The offerings should be made available both in the grocery store (packaged meal section) as well as at kiosks or specialized vending machines in major metros. New Product Plan 6
  • 9. Product We have added a number of new things to the Chobani SoHo product to make it ready for distribution on store shelves. Chobani SoHo’s line currently includes a number of sweet yogurts and two savory yogurt dishes (Sea Salt + Cracked Pepper, Cucumber + Olive Oil), so our initial release would focus only on the savory yogurt lines as a better-for-you lunch option. Additionally, the product will be served in glass-bottom bowls, etched with the Chobani logo, with a twist-off plastic top which contains a matte-finish, thick plastic spoon (all recommendations taken directly from qualitative research). All parts of the bowl should be recyclable, but we expect that many customers will wash the bowls for reuse. Finally, we intend to include about 10oz of yogurt and added ingredients in each package rather than the 6oz provided at Chobani SoHo or in Chobani’s existing product line. Price Chobani SoHo is positioned as a lunch, not a snack. Since the Chobani name already conveys designer-brand status and commands a higher price, we position the Chobani to-go meal replacement lunch slightly higher than other pre-made lunches at $5.99. We contend that it is NOT simply an expensive version of the $0.99 single serving meal, but an independently branded product with a different function than the single serve yogurt. Place Since Chobani SoHo’s primary promise is a convenient lunch, placement should aim to make purchasing the product as convenient as possible. Located in the packaged meal section of the grocery store, the Chobani SoHo product represents more than just a single-serve yogurt, it’s a true meal replacement. Franchised kiosks also provide a unique opportunity for both placement and promotion. Additional retail outlets like the flagship store in NYC could crop up in major metropolitan areas and business districts across the United States. Custom-made vending machines featuring Chobani SoHo products, placed in office buildings around the world, could offer a healthy lunch to busy professionals who are not willing to sacrifice their health for a fast meal. Promotion The SoHo NYC neighborhood provides for a unique promotional medium. Essentially, it’s a brand in itself, and Chobani can attach itself to the image of SoHo in an honest fashion because of its flagship store located there. Because SoHo hosts a number of artists in residence, Chobani would pair with a new artist each month to redesign the Chobani SoHo lid in their own unique style to further add to the brand’s designer-label equity. 7
  • 10. Objective To persuade urban females to replace a meal with Chobani SoHo, our new savory yogurt meals. Target Audience Danielle is a 28 year old from the suburbs of Chicago. After attending Indiana University and graduating with a degree in Communications in 2006, she got a job as the Marketing Director at a Web Development firm, where she works between fifty and sixty hours a week. Her office culture is relatively laid back, so she often goes out for lunch, but when it gets busy, it gets really busy. In times like this, she needs a lunch she can bring and leave in her fridge at work to eat at her desk without worrying about leaving the office for lunch or hitting the break room for unhealthy snacks. What do they currently believe? Yogurt is a very healthy snack, but by itself, it only provides two hours of energy, so it’s not substantial enough to be a meal. What do we want them to believe? Chobani SoHo is a substantial, healthy meal that won’t leave you feeling heavy. Single Minded Proposition Chobani SoHo is a true meal replacement, not just a snack. Reason to Believe The larger size of Chobani SoHo and the extra, healthy ingredients will fill you up, add important antioxidants to your diet, and help you manage your weight. The savory flavors add depth to the dish that makes it feel more like a meal than a single-serve Chobani. Creative Brief 8
  • 11. Ad #1: Online (Banner Ad, 8:30a-10:30a) Ad #2: TVC (Morning TV News/Weather Integration) Advertisements 9
  • 12. The plan to introduce Chobani SoHo is the next logical step in the brand development plan for Chobani. Their SoHo store serves as an excellent test market for new products, but they still position the SoHo line as a snack. During our research, we found that many people are consuming Greek yogurt for lunch, but it’s not really a satisfying lunch. It’s only a 6 oz portion. It’s really a better snack than it is a meal replacement. Let’s help people understand this and reposition Greek yogurt where it belongs, as a snack. Chobani SoHo provides a convenient, healthy lunch, a huge motivator for food choice behaviors among our target audience. We believe that Chobani’s consumers would absolutely buy Chobani SoHo while on the go, and many would even stock their mini-fridge at work with the product. If you would argue that this plan brings nothing new to Chobani, ask yourself whether they are serving 3.5oz of Chobani yogurt at the SoHo store as a snack or as a meal replacement. In fact, the idea that the SoHo line will be disruptive in the prepackaged meal category is of extraordinary value to Chobani. It would create a new category for yogurt as a meal replacement, something that has never been created before. EXECUTIVE SUMMARY 1. They’re already in a position to launch. 2. Position Chobani SoHo as a meal replacement. 3. Reposition Greek yogurt as a snack. 4. Provide the most convenient healthy lunch. 5. Create a new category for yogurt. Rationale 10