Chobani Case Study Analysis
Hamdi Ulukaya had been working in the kitchen for months creating a Greek yogurt that would redefine the yogurt aisle across the globe. With a thicker, richer flavor-packed with more protein, Chobani was sure to attract consumers of premium yogurt. But even with a sure-fire product, Hamdi and his team had to work hard to market themselves both domestically and abroad. What they found to be challenging while trying to compete for consumers was trying to decide how they would turn a profit in the early stages. What Hamdi and the rest of the Chobani team decided to do to compete in the yogurt industry right away was charge less than their competitor’s price per cup. This decision stunted their growth as a company at first, but they were committed to making it profitable in the long run. The key factors to success for Chobani in marketing themselves was a strong social media presence inspired by honesty, transparency, and their honest love of enjoying and selling their Greek-style yogurt. They also did a terrific job getting involved in the community launching several community-based campaigns. It was vital for Chobani to market their product so strongly because of the price. So with hard work and a tasty yogurt unlike anything else American yogurts had to offer, Chobani found much success and profited immensely.
Hamdi Ulukaya’s delicious yogurt has taken over the yogurt market. The Chobani team believes through and through that their product could be sold in massive amounts so the key was to get their name out there. Social media was their top priority. Chobani’s cups of yogurt in its eggshell white packaging with colorful fruits painted on the front was plastered on their Facebook and Twitter pages along with countless other beautiful pictures of real people enjoying their pure rich Greek yogurt. On top of their strong social media presence highlighting their yogurt, Chobani also is involved in communities and community projects such as restoring a little league field. These acts of charity don’t only reflect on their company as a whole when it comes to their morality, but also helps sell yogurt in the process.
When Hamdi and his Sales team had to make the decision on the price of the yogurt per cup they decided to charge around $1. This price was eye-opening to competition, with regular yogurt selling for around 65 cents a cup and other Greek yogurts selling for around $1.34. Chobani executives decided that this would be the best move for their company because they were confident that their product was going to have quick success and that the profit would eventually come. The decision for them to make that the price when the product first hit the market was a risky one. With a price that low they could have very well not sold enough units and had been left with extra inventory which is a waste of their yogurt and money. Yet Chobani was confident in their abilities to market their yogurt because they knew how good their product was. Chobani has had so much success in supermarkets and convinces stores across the United States, Europe, the Middle East, Australia, amongst other countries and regions. Now with over ten years as a company under their belts, they have lots of yogurt flavors and variations such as smoothies and kids yogurt. I have recently started drinking the Chobani berry smoothies individually from my local Wawa (the yogurt is not for me I prefer the less healthy American style); and even though I enjoy the smoothie and its creamy berry flavor, I find myself upset that I have spent $2.00 on seven fluid ounces of yogurt drink. I feel like I drink it in two sips. Often times I finish it even before I leave the store with my hoagie. But that just goes to show the success of Chobani as a company as well as Wawa.
When Chobani ran into marketing problems while selling their yogurt products, they were able to overcome them by firstly, believing in their product enough to make it an affordable price, and secondly, by marketing their product through social media as well as community-based events.
