Target Markets

 

The results of the questionnaire identified 4 different types of segments within the middle to high class consumers in China:

 

Caretaker

The first identified segment, the ‘caretaker’, is formed out of 24 participants both male and female, who are family oriented. This segment is has an age range of 19-50, and the majority, 54%, are doing grocery shopping for the whole family.

The survey revealed that 83% of this segment likes to eat yogurt as a breakfast and as a snack, 46% like it as breakfast while 37% like to eat it as a snack. Conversely only 13% like yogurt as a dessert. The ‘caretaker’ isn’t very price sensitive, 8% of the respondents within this segment are only willing to pay 5-6 CNY, 29% are willing to pay 6-7 CNY, while 21% are willing to pay 7-8 CNY, 25% are willing to pay 8-9 CNY, and 17% are willing to pay more than 9 CNY for a Chobani Greek Yogurt that is healthy and fresh.  The survey also revealed that this segment values the quality of the ingredients as the most important factor, with 50% of the segment choosing this as the most important attribute. The expiration date was the next most important factor with 29% of the segment ranking this as the top priority when purchasing yogurt. The segment can be marketed to by focusing on a medium price, high quality ingredients, and meeting the need for breakfast and snack foods.  

 

Businessman

The second relevant segment, the ‘businessman’, is formed out of 28 Chinese business oriented males and females from 19-35 years old. 71% of them buy groceries for themselves. 46% of them buy yogurt for a snack because it is quick and convenient, and 36% buy it as a dessert. When they look for a quick snack, they are willing to pay a bit more with 61% of the people buying Chobani Greek Yogurt as a snack willing to pay 7-9 CNY.  When buying it as a dessert they were pretty spread out on the price they were willing to pay, so it can be concluded that this segment is very price insensitive. An overwhelming 71% of these consumers thought that the expiration date was the most important factor when buying yogurt. 25% thought that the calorie count of the yogurt was the most important factor.  This segment can be reached with advertising that promotes trust in the quality of Chobani products and low calorie products that are also sweet for dessert.

 

Shopping Ladies

The third identified segment, the ‘shopping ladies’, consists of 23 females aged from 19-35 years old that are leisure oriented. 70% of this group does grocery shopping for themselves. Moreover, 65% of the ‘shopping ladies’ eat yogurt as a snack and 22% as breakfast. These women were pretty spread out about what they thought was the most important factor when purchasing yogurt. 39% thought that the quality of the ingredients was most important, 30% thought that the expiration date was the most important, and 22% cared most about the calorie count in the yogurt. This segment is very price sensitive as 61% of them will not pay more than 7 CNY for Chobani Greek Yogurt. However 17% of this segment was willing to pay 8-9 CNY and 13% was willing to pay more than 9 CNY for Chobani Greek Yogurt, so there is some variation. To market to this segment, Chobani must offer a cheap product that is quick to grab for a snack and is high quality as well as low quality.

 

*Healthy Adults*

The last identified segment, the ‘healthy adults’ is identified segment as 45 individuals aged between 19-35 years old and identify their lifestyle as health oriented. 49% of the ‘healthy adults’ go shopping for themselves and 49% go grocery shopping for the whole family. 51% of these consumers eat yogurt for breakfast, 20% eat is as a snack, and 27% eat it as a dessert. 56% of this segment considers the expiration date to be the most important factor when purchasing yogurt, while 22% care more about the calorie count. ‘Healthy adults’ are pretty price insensitive as 22% will pay 5-6 CNY for a Chobani Greek Yogurt, while 18% will pay 6-7 CNY, 31% will pay 7-8 CNY, 18% will pay 8-9 CNY, and 11% would be willing to pay more than 9 CNY per Chobani Greek Yogurt. 40% of this segment values flavor the most, while 27% care about the price, 16% care about brand recognition, and 16% care about natural ingredients.

 

Because this segment shares common values with Chobani like healthy living, natural ingredients, family, and a need for trust in the company. Chobani offers the attributes these consumers are looking for and this will be the selected target market in order to break in to the Chinese market. Targeting the middle to high class and health oriented people in an emerging market is also justifiable from a long-term perspective, because these are the people that are shaping the future of their country and can therefore be seen as opinion leaders.

 

Target Market Calculations

The population of China is currently 1,354,040,000 people (World Population Review). Chobani will target the high to middle class population. 14% of China’s population is considered middle class, defined as having an annual income of 106,000-229,000 CNY, and 3% of the population is considered high class, defined as having an annual income of more than 229,000 CNY. Chobani will first target the Shanghai population, which consists of 23,900,000 people, with 13.2% considered middle class and an estimated 5% considered high class (McKinsey). They will then move onto targeting Tier 1 cities in China, which also includes Beijing, Guangzhou, and ShenZhen. Overall, Tier 1 cities have a population of 74,900,000 people with an estimated 14.3% middle class and 4.2% high class. When considering the factors of the age range of 19-35, Chobani must multiply the applicable target market by 24.6% (The World Factbook). Then it must be taken into account that only 32% of the population surveyed was health oriented. This leaves Chobani with a target market of 18,115,200 consumers in China, 342,320 consumers in Shanghai, and 1,092,153 consumers in Tier 1 cities.