Defined Problems and Objectives

Defined Problems

Some of the problems that Chobani needs to address include the following questions:

• What are the needs and lifestyles of the target segments?

• Are Chinese consumers open to a new product like Greek Yogurt?

• What are the ways that yogurt is consumed in China?

• What are the nutritional concerns of Chinese consumers?

• How popular are the Chinese competitors already in the market?

• What is the price level that Chinese consumers will pay for healthy Greek Yogurt?

• What flavors and ingredients do Chinese consumers like in their yogurt?

• How often does the target segments eat yogurt?

• How knowledgeable are Chinese consumers about Greek Yogurt?

 

Main Objectives

The main objectives for completing this market research are:

• To find out how much Chinese consumers know about Greek Yogurt

• To evaluate the openness of Chinese consumers to Greek Yogurt

• To determine the taste preferences of Chinese customers in regard to yogurt

• To learn about the health preferences of Chinese consumers

• To acquire information about how much Chinese consumers are willing to pay for healthy Greek Yogurt

• To study the differences between geographic, gender, and age target segments within Shanghai

• To review the lifestyle orientations of the target market

• To examine the function for yogurt, or the time of day that it is consumed by Chinese consumers

• To assess who consumers are buying groceries for

• To appraise the popularity of Chobani's future competition among the target segments

 

 

Research Plan

Data Sources

Primary Data

Primary data must be collected due to the lack of credible resources on the internet. The Greek Yogurt market will be new to China and there isn't much information on how the consumers will react to this new product. Chobani will collect a mixture of Qualitative and Quantitative data to fully investigate this new market.

 

Secondary Data

Secondary data research is also necessary when creating a Market Entry Strategy. In Chobani's case, this information was most helpful when analyzing exisiting markets with Chobani's products, and when analyzing the internal marketing strategies. It also gives an overview of the Chinese Dairy industry in China and outlines possible important factors when moving into this country. 

 

A list of the sources used for secondary data is located on the SOURCES page. 

 

Research Approaches

Qualitative Research - Focus Group

Chobani has decided to go with the Focus Group approach, as it will benefit the brand's qualitative research when exploring where Chobani can create, deliver, and communicate value within the Chinese market. Focus groups allow researchers to obtain information quickly as they deal with large groups, without losing the opportunity to ask "follow-up" questions and probe more deeply into responses (Gibbs, 1997). It also enables Chobani to understand and experience the views that Chinese consumers have on healthy foods and yogurt. It will provide insights about Chinese consumer yogurt preferences and motivations when choosing a certain type of yogurt. 

 

Quantitative Research - Surveys  

Chobani will collect quantitative data with a questionnaire. This will allow Chobani to conduct research in an efficient way with a minimal cost. With only a week to complete this data collection and next to no budget provided, this is the most feasible way to complete the research. With more time and budget, Chobani could possibly analyze shopper data or review purchasing patterns through observational, behavioral, or experimental research.  

 

Survey Instruments

Focus Group

The Focus Group has been carefully selected, containing a group of 6 people currently working and living in China. They speak both Chinese and English. The participants will not only be asked to discuss the following questions below, but also to work with figures to explore consumer preferences in regards to packaging, shapes, and colors. Please see the questions below.

 

---Focus Group Questions---

1. ​If you could have any snack in the world right now, what would it be?

2. What does the healthiest person you know eat?

3. In your opinion, what are the healthiest snacks?

4. How do you feel about eating natural foods?

5. What do you consider natural foods? (list 5)

6. How do you feel about eating processed foods?

7. What do you consider processed foods? (list 5)

8. Can you share a story about dairy products in China?

9. What is your view of foreign food products?

10. What comes into your mind when you hear the word "Greek"?

11. What are your experiences with Greek Yogurt?

12. What is your "perfect yogurt"?

13. Do you believe this "perfect yogurt" is available in China?

14. What colors strike out to you? (given colors) What do you associate with these colors?

15. Which animal best represents Chobani? Which do you feel more connected to? (pictures of a Cow and a Bear)

 

Survey - Questionnaire

The Questionnaire that has been created will have a mixture of closed-end questions, specifically for quantitative data. The types of closed-end questions in this survey include dichotomous, multiple choice, rating scale, intention to buy, and ranking questions. Elimination of all possible bias has been attempted, but there is always some bias in human designed studies. The questions will be translated into Chinese by a Chinese person and will also be double checked by several people who speak Chinese. Then it will be tested on a Chinese worker in Hult International Business school before it is distributed. Please see the approved questions below.

 

---Questionnaire---

1. ​If you could describe your lifestyle in one word, what would it be?

   1. ​Health Oriented

   2. Business Oriented

   3. Sports Oriented

   4. Leisure Oriented

   5. Family Oriented

2. ​Please rank, from 1-5 (1 being very important and 5 being not at all important), which of the following nutritional products are most important to you:

   1. ​Fruits ____

   2. Grains ____

   3. Dairy ____

   4. Vegetables ____

   5. Meat ____

3. ​Please rank, from 1-5 (1 being what you are missing the most, and 5 being what you are missing the least), which of the following nutritional products you are missing out on during the day:

   1. ​Fruits ____

   2. Grains ____

   3. Dairy ____

   4. Vegetables ____

   5. Meat ____

4. ​How often do you eat yogurt?

   1. ​Every day

   2. A few times a week

   3. Occassionally 

   4. Never (Skip to Question 10)

5. ​During which part of the day do you consume yogurt?

   1. ​Breakfast

   2. Snack

   3. Dessert

   4. While cooking (ingredient)

6. ​Please rank from 1-4 (1 being least important and 4 being most important), what you consider important when buying yogurt:

   1. ​Flavor ____

   2. Type of ingredients ____

   3. Familiar Brand ____

   4. Price ____

7. ​What is your favorite flavor of yogurt?

   1. ​Strawberry

   2. Blueberry

   3. Plain

   4. Coconut

   5. Vanilla

   6. Honey

   7. Banana

   8. Chocolate

   9. Other ____________________

8. ​Please rank from 1-4 (1 being least important and 4 being most important), which ingredient attributes you find most important when choosing yogurt:

   1. ​Number of calories ____

   2. Natural ingredients ____

   3. Dairy quality ____

   4. Expiration date ____

9. ​Please rank from 1-4 (1 being your least favorite and 4 being your favorite), which of the following popular yogurt brands you like the most:

   1. ​Mengniu ____

   2. Bright Dairy ____

   3. Weiquan ____

   4. Danone ____

10. ​Have you ever heard of the health benefits from eating Greek Yogurt?

    1. ​Yes

    2. No

    • ​​​Statement: Greek Yogurt is beneficial to your digestion, helps with controlling blood pressure, helps manage weight, and provides important nutrients like calcium and magnesium for healthy bones. 

11. ​On a scale of 1-10 (1 being very uniterested and 10 being very interested), how interested would you be in purchasing healthy Greek Yogurt made with only natural ingredients?

    1. ​_____

12. ​How much are you willing to pay for a 150ml cup of Greek Yogurt made with natural ingredients?

    1. ​5 RMB - 6 RMB

    2. 6 RMB - 7 RMB

    3. 7 RMB - 8 RMB

    4. 8 RMB - 9 RMB

    5. Above 9 RMB

13. ​Please check one of the following boxes that applies most to you:

    1. ​I buy groceries for myself

    2. I buy groceries for my spouse

    3. I buy groceries for my child(ren)

    4. I buy groceries for my whole family

14. ​What is your gender?

    1. ​Female

    2. Male

15. ​How old are you?

    1. ​16-18

    2. 19-25

    3. 26-35

    4. 36-50

    5. Older than 50

 

Sampling Plan

Sampling Unit

 

Chobani has decided to survey middle to high class consumers from the age 16 and above. These consumers can be male or female. The target population of this survey due to geographic, budget, and time constraints, is the middle to high class consumers in Shanghai, China. The sampling frame within the target population will include consumers that are in middle to high class areas of Shanghai shopping on Saturday and Sunday during the midday. This creates a bias due to the fact that not every middle to high class consumer in China has the ability to be part of this sample as they aren't in those vicinities. There will be six different geographic segments that are surveyed. 

 

Sample Size

 

Due to the limited information that Chobani has about Shanghai, it was impossible to calculate a very accurate sample size. For example, the small sample size equation could not be completed without a standard deviation of the population. As a result, the General Sample Size (t) equation was used.

 

n = ( (t^2) [p(1-p)] )  / m^2

 

With an extremely low penetration rate of Greek Yogurt into China, available only in specialty import stores, it can be assumed that there is less than a 1% probability of the chosen person consuming Greek Yogurt. So 1% will be used as a default. This equation will also take into account a 95% confidence interval and a 5% margin of error. 

 

n = ( (2.06^2) [.01(1-.01)] ) / .05^2      =      ((4.2436)(.099)) / .0025     =     168.04656 

 

Because there are six different segments to be surveyed, this number will be rounded up to 180 people surveyed. This means that there will be 30 people surveyed per segment. This is still low in terms of the research community standards, but it will be sufficient with such high constraints. 

 

Sampling Procedure

Because the weights of each segment are impossible to determine with such limited data, each segment will require an equal distrubtion of the quotas with 30 people. There is a margin of error of 5% in this survey regardless, though in fact the bias of this survey will likely be much higher due to unknown information, human bias, the large range of the target population outside of the target segments, etc. 

 

Contact Method

The contact method for both the Focus Group and the Survey will be in person. This is done because as a team of foreigners, we cannot accurately navigate the Chinese social media websites, and also don't have access to telephone numbers or email addresses. In person interviewing can also cause a bias due to the interactions with the person leading the focus group or handing out the questionnaires. It could also impact who takes the surveys. For example, if they like foreigners they are more likely to take the survey from a foreigner, and vice versa. 

 

Collect Information

As mentioned, the surveys will be conducted personally. These surveys fall into the method of convenience sampling because Team 5 is only collecting data from Shanghai, and only within the more populated areas of Shanghai that are close and easy to reach. This is done because of time and money constraints, and it creates data collection that is more prone to error and bias. The focus group will take place on Friday (11.28.2014), and the surveys will be conducted on Saturday and Sunday (11.29.2014 - 11.30.2014).

 

Analyze Information

The information will then be analyzed in different segments. It will be analyzed as a whole, in the geographic location segments, in gender segments, and in age segments, to try and determine whether there are any correlations between the data. Conclusions will be drawn from this data and summarized in ways that can help define a Marketing Strategy for Chobani to use to break-in to China.

 

 

 

Present Findings 

After the data has been analyzed and conclusions have been drawn, then the conclusions will be presented to Chobani to use for their Marketing and Branding Strategy when entering China. This data will hopefully give valuable insights on which segments to enter, how to enter, and how to adjust to the Chinese consumer needs.