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Case Code: MKTG388
Case Length: 14 Pages 
Period: 2017-2018   
Pub Date: 2019
Teaching Note: Available
Price:Rs.350
Organization : Chobani LLC
Industry : Food Processing
Countries : US
Themes: -
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
Technology
Operations
Economics
Leadership & Entrepreneurship

Chobani: Reinventing to Re-disrupt the Yogurt Market?

 
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EXCERPTS

DISRUPTING THE YOGURT MARKET

To cater to the growing demand for the Chobani yogurt, Ulukaya increased production by building new production lines that would make it possible for it to handle 100,000 cases a week. He, however, decided against outsourcing anything as he wanted to keep a control over the product right from its production stage till it reached the shelves. By 2008, impressed with Chobani’s growth, many investors expressed their interest in buying a stake in it. Big yogurt companies like Dannon also approached Ulukaya to ask him to sell it to them. Ulukaya, however, did not allow outside investors and also turned down the offer by big companies. By 2009, Chobani was getting orders of 200,000 cases a week.

 
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MAJOR SET BACKS

In 2013, Chobani faced a major setback when customers complained that they had fallen ill after consuming Chobani yogurt. The yogurt, allegedly contaminated by a mold associated with dairy products, caused nausea and cramps. ..

SPEARHEADING WITH CAMPAIGNS

In May 2015, Chobani launched a multi-media campaign developed by ad agency Opperman Weiss called ‘Love This Life’ with the tagline ‘To love this life is to live it naturally’. The campaign was an attempt to celebrate the brand’s relationship with consumers and the significant role healthy food played in their lives. The 90-second anthem also featured the new packaging of Chobani which highlighted core attributes such as ‘Only Natural, Non-GMO Ingredients’ and less sugar content..

REINVENTION: TAKING THE DISRUPTION FURTHER?

With yogurt drinks becoming increasingly popular among the US consumers, Chobani made an attempt to stay on top with innovation amidst competition. In June 2017, the brand introduced its first ever non-Greek traditional low-fat yogurt called Chobani Smooth. Ulukaya said, “As a food maker, it’s important to me that we’re giving families across America better options that are delicious and accessible. ..

FUTURE PLANS

The company was gearing up to expand its product portfolio, as a first step of which it launched Chobani “a Hint Of”. This was a blended Greek yogurt made with only natural ingredients and a hand-selected variety of real fruits and spices for delicious flavor with less sweetness, which was expected to roll out by December 2017...
 

EXHIBITS

Exhibit I: Chobani Products
Exhibit II: Sales of Chobani (Year 2012-2016)
Exhibit III: Chobani’s Competitors and their Revenues (As of July 2018)
Exhibit IV: Yogurt Market Share
Exhibit V: Chobani’s New Look