Internal Marketing Strategy

 

As previously stated, Chobani has been very successful. The amount of growth in such a short amount of time makes it seem like it is in the wrong industry, and should be a software company (Adamson, 2014). Chobani operates under the mission and principle of ‘How Matters’ and brings new dedication to being transparent in how the product is made, and following through on claims of natural and healthy ingredients. They use fresh milk from small farms and humanely treated cows, they locally source all possible ingredients to support their local communities, and they quickly and honestly address any mistakes made to promote trust in their brand (Adamson, 2014).

 

How Matters

The ‘How Matters’ Principle in Chobani religiously follows four rules; Local Sourcing, Authentic Straining, Natural Ingredients, and Responsible Manufacturing.  When Chobani moves into a community, they support existing and new jobs. They try to support their community and in turn, the communities support them. By sourcing from regional farms they can provide consumers with very fresh and healthy goods, while at the same time supporting local jobs. They can make sure that the raw products they add into the final good are fresh and free of harmful chemicals. The farms they source from do not treat their cows with growth added hormones like rBST, and Chobani is actively trying to create enough supply of milk that is made without cows fed hay treated with GMO’s. Chobani implemented an Authentic Straining process that has been used historically to make the yogurt extra thick and also includes twice the amount of protein. They never add preservatives and only use real fruit and natural sweeteners. Chobani also takes ‘Responsible Manufacturing’ to heart and they implement sustainability practices to support the environment as well as their community. For example, whey byproducts are recycled as supplemental feed or fertilizer to local farms (Chobani, 2014).

 

Charitable and Sustainable = Goodwill

As mentioned, Chobani gives 10% of its profit to the ‘Chobani Foundation’. This foundation focuses on making good food more accessible to youth and underserved communities (Chobani, 2014). Chobani was chosen by the USDA to supply their Greek Yogurt Pilot Program, “which will provide millions of children across the United States with protein-rich Greek Yogurt under the United States National School Lunch Program” (Dairy Report, 2013). They also “support and celebrate makers who embody the ‘How Matters’ philosophy”. This is on top of Chobani supporting young entrepreneurs working on new sustainable and all-natural products for everyone with the ‘Chobani Foundation’. In their communities, they not only provide support by creating jobs and buying products, but they also support them in ways like building a state of the art youth baseball stadium and a community center (Chobani, 2014).

 

The social and environmental sustainability for Chobani will likely continue to be a very profitable process. This is a responsible company that will take ownership of its actions, and wants to make a better product for people. As the founder and CEO of Chobani, Hamdi Ulukaya, always says, “if we can’t do it better, we don’t do it at all” (Chobani, 2014). This dedication to their community and the environment turns into natural goodwill from their consumers. The consumers feel socially responsible when buying this yogurt, not to mention that they can trust that this product is good for their bodies. Chobani has a very sustainable marketing strategy and will generate loyal customers for years to come.

 

Target Customers

Chobani is trying to market to a wide range of consumers, from midrange to high end consumers. They market to people who want to eat healthy, and have slightly more income to dispose of. Chobani takes pride in being available to everyone, regardless of place or income (Chobani, 2014), but in reality, consumers willing to pay a little more to eat healthy tend to be middle class and above in the United States. This brand has been wildly popular with women, as they have been driving the Greek Yogurt trend, and Chobani has created products just to capture these women and give them what they want (Badkar, 2011). Chobani targets dieters and calorie conscious consumers with their Simply 100 line. They target consumers who like to snack with their Chobani Flips products and for those who have a sweet tooth, they offer the Chobani Indulgent line which has premium dark chocolate mixed into the yogurt (Schultz, 2014).

 

Chobani Kids is the latest in a long line of marketing strategies designed to get children to eat healthier and higher quality yogurt. It’s a product that parents will feel good about buying for their kids. The style of the product is similar to GoGurt, though it’s much healthier (Target, 2014). A likely strategy for Chobani is thinking long-term and creating a need for this product at an early age, and as consumers tend to be loyal to their favorite brands, this will create a demand later in their life. There are also plans to provide a line for babies that will be rolled out in January. This will expand their target market to the entire household, from babies to Grandparents (Schultz, 2014).

 

Expanding Beyond Borders

Peter McGuinness, Chobani’s chief marketing and brand officer claims that the United States Greek Yogurt industry is becoming harder to maintain a leading market share, though United States household penetration of Greek Yogurt is still only 37%. While there is still some growth to be had in the United States, they have more opportunity to pursue new geographies with opportunity for growth in new regions and are currently pursuing new options worldwide (Schultz, 2014).

 

Conclusion

Overall, Chobani has a very successful internal marketing strategy that has made them the best-selling yogurt brand in the United States. They take healthy and responsible to a new level, and they are supplying markets who demand their product. Their target market ranges from health conscious consumers, to calorie counting women, to children who tend to be middle class or above. As the United States market is already saturated with Greek Yogurt, further expansion into additional new markets is the next move for this company.