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Case Details

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: -
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Chobani: Reinventing to Re-disrupt the Yogurt Market?

 

ABSTRACT

 
This case discusses Norwich, New York-based leading Greek yogurt manufacturer Chobani LLC (Chobani) and its reinvention strategy. In November 2017, the company unveiled a new look for its logo and redesigned packaging and announced several new additions to its product lines. The company also tried to morph into a “food-focused wellness company”with emphasis on Nutritional wellness, Social wellness, and Environmental wellness. Industry experts, however, felt that the brand was trying to disrupt the market again and secure its position amid dwindling sales. Founded in 2007 by Hamdi Ulukaya, Chobani tasted success soon after its inception. Its authentic Greek yogurt became an instant hit with Americans. Demand for the Chobani yogurt skyrocketed, making it a leading brand in the US within a very short span of time. The company managed to increase its revenues and customer base with attractive ad campaigns and new products. In 2012, to increase capacity, it set up a massive new manufacturing plant at Twin Falls, Idaho. While the company enjoyed a lot of success, it also faced several challenges in the form of contaminated cups, opposition to its use of genetically modified organisms, lawsuits, and many more. However, under Ulukaya’s able leadership, Chobani was able to bounce back and capture the market. In 2017, Chobani surpassed Yoplait, its biggest competitor. Keeping in view the changing customer preferences and the predicted downfall in demand, Chobani adopted the strategy of reinvention to spark interest in yogurt again. But industry experts viewed this as a move to protect its place in the yogurt market. The competition among the players in the yogurt market had intensified over the years and they were eating into each other’s market share. Moreover, a shift in consumer preference was also noticed with the increasing sales of yogurt smoothies and other drinks. This was an indication that the Greek yogurt was losing its luster and Chobani had no option than to reinvent itself.
 
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Issues

The case is structured to achieve the following teaching objectives:
  • To analyze the need for an established brand to reposition itself.
  • To evaluatethe role of brand reinvention for brand sustainability.
  • To explore the challenges associated with repositioning.
Contents
INTRODUCTION
BACKGROUND
DISRUPTING THE YOGURT MARKET
MAJOR SET BACKS
SPEARHEADING WITH CAMPAIGNS
REINVENTION: TAKING THE DISRUPTION FURTHER?
FUTURE PLANS
EXHIBITS

Keywords

Chobani; Brand repositioning; Brand reinvention; Brand sustainability; Brand management; Brand reinvention; Product positioning; Product reposition; Branding; Rejuvenation; Disruption

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