ISAG – Instituto Superior de Administração e Gestão

MARKETING PLAN

CHOBANI

Denisa Isaic
Ivona Perić
Georgian Postica
Eszter Szeghalmi
Larisa Švec
Monika Vugrinec
Contents
1. Introduction ............................................................................................................................ 3
2. Situation Analysis .................................................................................................................. 4
2.1. Market Summary ............................................................................................................. 4
2.1.1. Market Demographics .............................................................................................. 4
2.1.2. Market Needs ............................................................................................................ 5
2.1.3. Market Trends........................................................................................................... 5
2.1.4. Market Growth ......................................................................................................... 6
2.2. SWOT Analysis............................................................................................................... 6
2.2.1. Strengths ................................................................................................................... 6
2.2.2. Weaknesses ............................................................................................................... 6
2.2.3. Opportunities ............................................................................................................ 7
2.2.4. Threats ...................................................................................................................... 7
2.3. Competition ..................................................................................................................... 7
2.4. Product offering range ..................................................................................................... 7
2.5. Keys to success................................................................................................................ 7
2.6. Critical issues .................................................................................................................. 8
3. Marketing Strategy................................................................................................................. 9
3.1. Mission ............................................................................................................................ 9
3.2. Marketing Objectives ...................................................................................................... 9
3.3. Financial Objectives ...................................................................................................... 10
3.4. Target Markets .............................................................................................................. 10
3.5. Positioning..................................................................................................................... 10
4. Marketing Tactics ................................................................................................................ 12
4.1. Product .......................................................................................................................... 12
4.2. Pricing ........................................................................................................................... 12
4.3. Distribution.................................................................................................................... 13
4.4. Communications............................................................................................................ 13
4.5. Marketing Research....................................................................................................... 14
5. Financials ............................................................................................................................. 15
5.1. Break-Even Analysis ..................................................................................................... 15
5.2. Sales Forecast ................................................................................................................ 15
5.3. Revenue Forecast .......................................................................................................... 16
6. Controls ................................................................................................................................ 17
6.1. Implementation.............................................................................................................. 17
6.2. Marketing Organization ................................................................................................ 17
6.3. Contingency Planning ................................................................................................... 18
1. Introduction

Based on an evaluation of the yogurt market and the company's opportunities and strengths,
Chobani will introduce its brand and products in the Portugal market.
Chobani’s core business is strained yogurt. Launched in 2007, Chobani sells thick, Greek-style
yogurt with a higher protein content than traditional yogurt. Its product line has evolved to also
include a variety of drinks, shakes, snacks and coffee creamers, as well as plant-based products
such as dairy-free vegan blends and oat milk. 1
Chobani’s mission since day one is to provide better food for more people.
This one-year marketing plan was created with the goal of introducing a new brand in
Portugal market, taking into consideration best price strategy, extensive advertising, and
expanded distribution in order to increase the company’s revenues and growth rate.
The main objective is penetrating the Portuguese market, reaching up to 40% of the population
through marketing communication in the first two years of operation.

The main scope of this marketing plan is to build awareness and credibility for the new product
and the company in Portugal.
The objective will be accomplished by setting appropriate marketing campaigns using social
media, digital promotion, in-store promotion, news and traditional media. Accomplishing this
goal will result in brand recognition, sales of the products and a hold of at least 15% of the
yogurt market in Portugal in the following 12 months.
The first step is to conduct market research during the first half of Q2 and the following step
to develop an appropriate messaging strategy by the end of Q2.

1
“ Greek-style yogurt products” n.d. retrieved on 24 Jan from
https://business.instagram.com/success/chobani

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2. Situation Analysis
Chobani is the number 1 selling Greek Yogurt brand and the second largest yogurt
manufacturer in the U.S.

Even if the company is a successful organization, and is able to predict market trends better
than others, provide resources to develop products and services to leverage those trends, able
to counter competitors’ threats, and meet customers’ expected value proposition - still can
have weaknesses.

The greatest weakness Chobani faces is the buying power of its customers that can dictate a
lowe price for the product, change to a competing brand or lose interest if tastes evolve and if
Chobani fails to meet and understand these emerging trends.

2.1. Market Summary

According to Statista, revenue in the Yogurt segment in Portugal amounts to €399m in 2022.
The market is expected to grow annually by 1.95% (CAGR 2022-2026). 2

2.1.1. Market Demographics

The target audience of the brand “We aimed at people who never liked yogurt”.
Chobani uses a differentiated segmentation strategy, which targets different segments in the
yogurt market with its four main types of yogurts: regular low-fat Greek yogurt, Flip,
Champions, and Bite.
- Regular Greek yogurt is marketed to generally Greek yogurt fans.
- Chobani Flip is marketed to those users enjoying tasty mix-ins with their yogurt.
- Chobani Champions is marketed to kids through yogurt tubes and fun flavors.
- Chobani Bite is marketed to those consumers who enjoy a small dessert of Greek yogurt
offered it sweet flavors.

The company utilizes several different segmentation variables to reach its target market. The
product is segmented demographically primarily by age, and income. Chobani is targeted at
incomes ranging from middle to upper-middle class and has many products geared for different
age segments.

2
Statista n.d, retrieved on 24 Jan from https://www.statista.com/outlook/cmo/food/dairy-products-
eggs/yogurt/portugal?currency=EUR#revenue

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It is trying to break into new markets with their recently new “Champions” Greek yogurt
directed towards kids.
A psychographic variable that it targets is through lifestyle. They target a healthy and active
lifestyle towards businessmen and women on the go; however, it targets a variant of different
lifestyles.
A behavioristic variable, which markets according to benefits that customer want, is that the
brand targets through benefit expectations. Customers want a healthy, Greek yogurt made with
all natural ingredients that does not include preservatives and Chobani provides just that. 3

2.1.2. Market Needs

The trends in fermented milk products have pointed to a generation looking for products that
deliver the ultimate in convenience, health benefits (to both people and planet) and (of course)
a delightful eating experience. 4

2.1.3. Market Trends

Yogurt Market Overview

- The demand for yogurt is fueled by the availability of numerous flavors, and growing
consumer indulgence for exotic flavors
- Drinking yogurt is able to ideally meet consumer's three key product demands: health,
mobility, and convenience. As a practical alternative to yogurt cups and spoons, yogurt drinks
come in reclose carton packs or are provided with a convenient drinking straw.5
- Growing trend of veganism globally, the demand for non-dairy-based yogurt products
is anticipated to grow at a faster rate.
- Consumers are increasingly preferring food sources that are gluten-free, chemical-free
and produced with natural methods

3
Course Hero n.d, Chobani uses a differentiated segmentation strategy retrieved on 24 Jan from
https://www.coursehero.com/file/p63jrml/Chobani-uses-a-differentiated-segmentation-strategy-which-
targets-different/
4
Karoline Kjaerulff (2021), Covid-19: 5 key yogurt trends you need to know, retrieved on 24 Jan from
https://www.dsm.com/food-beverage/en_US/insights/insights/dairy/covid-19-5-key-yoghurt-trends-
you-need-to-know.html
5
Mordor Intelligence n.d, Yogurt Maket - Growth, Trends, Covid-19 Impact and Forecasts (2022-
2027) Retrieved on 24 Jan from https://www.mordorintelligence.com/industry-reports/yogurt-market

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 2.1.4. Market Growth

The Yogurt Market Market is expected to grow as:

- the product becomes a healthy alternative for the persons opting for a healthy snack
option
- despite the obvious challenges of a global pandemic, the global yogurt is consumed for
its immunity boosting health benefits
- during the pandemic, many millions of people have been more sedentary, and the
population is expected to reduce the sugar intake (so the yogurt is ideal to meet the consumers’
needs)
- increased demand of plant-based alternatives.

2.2. SWOT Analysis

The SWOT analysis about Chobani gives us a view into the brand’s strengths and weaknesses
as well as to opportunities and threats.

2.2.1. Strengths

● experienced management team

● high quality and nutritious products
● wide product range portfolio
● sustainable packaging and sourcing
● reliable suppliers
● thriving for innovation
● strong online presence, diversity and impact (refugees, black lives matter, LGBTQ
equality)
● workplace diversity with better chances in the international market

2.2.2. Weaknesses

● low brand awareness in Portugal

● only a few distributing stores (buy online: Instacart, Walmart, Target, Dillon’s food
stores)
● high price

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 2.2.3. Opportunities

● expand of borders
● more distributing stores
● more effective and cost minimizing production
● more focus on plant-based products
● raise awareness of health benefits

2.2.4. Threats

● competitors with experience

● health regulations

2.3. Competition

Chobani’s competitors that are already present in the Portuguese market are Danone, Oikos,
Pastoret and Alpro with its plant-based products.

2.4. Product offering range

Chobani offers milk, yogurt, creamers, cold brew coffee and fermented plant-based drinks.

Their milk is made of oats and they offer zero sugar and barista versions as well. Amongst the
yogurts, Greek yogurt is the most famous, because of its perfect creamy texture and high
protein and many flavor options. Customers can also choose from zero sugar, lactose-free and
oat-based versions. Amongst creamers and coffees, we can also find oat-and other plant-based
products. They also offer limited, special flavors such as pumpkin spice, peppermint or
chocolate orange. Furthermore, they sell peanut snacks which profit goes to support the fight
against malnutrition worldwide.

2.5. Keys to success

In order to be successful in Portugal, Chobani has to adapt and build up a product range that
meets with the Portuguese customers taste that satisfies the current market gaps in order to
meet the market demand. Since there is a lack of lactose-free and plant-based yogurts and other
products in the Portuguese market Chobani should consider taking their next steps that way.

They also have to build up an effective supply chain in order to be efficient and deliver on time.

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 2.6. Critical issues

When entering the Portuguese market as a new foreign market Chobani have to face issues in
connection with tax and legal issues, language barriers, logistics, packaging and labeling and
they also have to face competitors that are already present in the Portuguese market and have
many years of experience.

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3. Marketing Strategy
The main goals of the marketing strategy is to focus on high quality and nutritious food, health,
and socially responsible business. Chobani can cover a large market, as their intention is to
make the products available to more people. The products are available in North America,
Australia and other markets. The goal is to expand into the Portuguese market. Looking ahead,
Greek yogurt will continue to be the main focus for Chobani - and this is a growing category.
Although the category has been challenged for several years, it started growing again in late
2019. When the pandemic set in, yogurt sales accelerated even more. Then yogurt grew 2%,
3%, and Greek grew 6% to 7%. So, Greek yogurt was the driver of most growth category.6 The
mission, marketing and financial objectives, target markets and positioning will be defined
below.

3.1. Mission
Chobani is a food producer, whose mission is to provide better food for more people. „Chobani
is a food maker with a mission of making high-quality and nutritious food accessible to more
people, while elevating our communities and making the world a healthier place.“ 7 In support
of this mission, the company is driven by values - people come first and is focused on food and
health. Chobani yogurt is the No. 1 American yogurt brand, made only from natural ingredients
without artificial preservatives. To make the world a better place, the priority is to return to our
communities and beyond: work to eradicate child hunger, support immigrants and refugees and
underrepresented people, honor veterans and protect the planet.

3.2. Marketing Objectives

Marketing motto is: the more successful a company is, the more good it can do in the world.
Marketing objectives are:

● Penetrating the Portuguese market, reaching up to 40% of the population through

marketing communication in the first two years of operation.
● Reduce customer acquisition costs by 40% after the first two years of business in
Portugal.

6
Canning Kathie, Dairy Foods Magazine, “2020 Processor of the Year: Chobani is doing all the right
things”, December 4, 2020, https://www.dairyfoods.com/articles/94719-processor-of-the-year-
chobani-is-doing-all-the-right-things (24.01.2022.)
7
Chobani, https://www.chobani.com/about/ (24.01.2022.)

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 ● Adjust the price of the product to the standard of living in Portugal and with regard to
competitive prices.
● Continue to expand in the future in Portugal according to possibilities.

3.3. Financial Objectives

Financial objectives are:

● Increase profits by 5% in the next year through the geographical expansion of sales and
reaching more people.
● Set aside at least 7% of profits from the current year for innovation and socially
responsible business.
● Increase the liquidity of its stock through expanding its investor base.

3.4. Target Markets

Chobani wants to make its products available to everyone, so target groups are all those within
the geographical area where the sale takes place. The products are available throughout North
America, Australia, and the goal is to expand into the Portuguese market.
Chobani believes in continuous innovation that results in nutritious food, accessible to
all. The company goal has always been to monitor changing consumer behavior and move
beyond yogurt. Chobani recently expanded its innovation and brand into five categories:
yogurt, creamers, non dairy oatmilks, plant-based probiotic drinks, and ready-to-drink coffee.8
In 2021, Fast Company named Chobani the most innovative company in North America.

3.5. Positioning
In 2005 (17 years ago), Hamdi founded the company with the goal of producing real, nutritious
yogurt that he remembered from his childhood. The company has remained consistent with its
initial goal - and still produces delicious and nutritious yogurt today. Chobani wants to position
itself as a brand that offers high quality and nutritious food available to more people. Through
continuous innovation and the creation of new products in line with changes in customer
behavior, Chobani has remained successful in the market and a recognizable brand has been
created.

8
Chobani, https://www.chobani.com/innovation/ (24.01.2022.)

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The company is positioning itself as a company that they also want to see in the world. They
stand up for what is right: providing paid parental leave, supporting the Equality Act, speaking
out against separating families at the border, committing to living wages and great benefits,
employing immigrants and refugees, fighting child hunger and supporting farmers and military
veterinarians. The company has been repeatedly recognized as a great place to work. In 2020,
they increased the minimum hourly wage to at least $15 per hour. They also offer 100% paid
parental leave of six weeks for all full-time employees. Due to high salaries and many benefits,
the company has satisfied employees and proves to be a socially responsible company in public.

Chobani has already positioned itself as a company that offers a quality product, and as a
company that has a human side and cares about the community. The goals are to continue with
the same strategy and strengthen the brand, continuously introduce innovations and adapt to
market demands.

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4. Marketing Tactics

The objective of the marketing program is to position Chobani company products as

remarkable healthy products on the Portuguese market. Because of its high protein content,
Chobani Greek yogurt wants to provide future consumers with a more “filling” experience,
unlike other yogurts. That is the reason why Chobani will seek to build a brand awareness in
Portuguese consumers and then expand on the Portuguese market. Chobani’s marketing
program will seek to create a positive recognition on the market through products, prices,
distribution and communication tools.

4.1. Product

Chobani has a set of products that are very popular in particular countries where it operates.
Although there are products on the Portuguese market that represent competition, observing
and researching the same leads to the conclusion that there is still a possibility that Chobani
products will become a priority in the consumer's mind. Chobani’s objective is to achieve fast
market penetration with products to make potential consumers aware that Chobani products
are of exceptional quality, healthy and adaptable to all their preferences and needs. With its
product range, Chobani's goal is to cover every category of consumers for whom its products
would be important. The current range it offers, such as various types of Greek yogurt,
probiotics, gluten-free products, zero sugar milk, oat milk, coffee creamer and so on, has
enough range to enter the Portuguese market to take a very strong position.

4.2. Pricing

Chobani's product prices are almost double higher than the others because its products have
higher cost of ingredients. That is because he is a different producer of dairy products from
others because it uses more milk for its products to make them as rich in protein as possible.
Some are also gluten free and with a reduced percentage of sugar which actually gives him the
right to value his products at that level. By entering the Portuguese market, Chobani will adjust
the prices of their products to the living standard of the target market, but again leave them at
a level where they still leave a picture of quality.

The price to be offered will be based on a cost analysis. It will include an assessment of the
direct and indirect costs leading to the final price of the product or service. Once the costs have

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been identified, there is the possibility of small price negotiations to make them affordable and
attractive to consumers, but again to reflect the desired value of the product.

4.3. Distribution

Some of the Portuguese online sites where Chobani already sells its products are Ubuy and
DesertCart. In this way, Chobani is already slowly entering the minds of consumers and
creating a relationship with them. In addition to existing online websites, its goal is to expand
its online sales to other well-known online websites such as Continente.pt, ElCorteInglés
Supermercado and Auchan which were the most popular online stores in the food segment in
Portugal in 2020. In addition to online sales, Chobani would also develop relationships with
stores such as Continente, Pingo Doce and Minipreço, which are the most famous sales chains
in Portugal. The products will initially be available only in their largest stores, and later the
goal is to expand the range to their smaller stores (for example Continente Bom Dia). Also,
because of Chobani’s gluten free products, the objective is to launch products in health food
shops such as Celeiro who also offer gluten free products.

4.4. Communications

Upon entering the market, Chobani's idea is to start communicating with potential consumers
through teaser ads on billboards. With its slogans, such as: "To love this life is to live it
naturally." ; "Love this life." ; “Nothing but good” will strive to show the “soul” of the brand,
not just the quality.

He also aims to reach his consumers through social media, mostly through Instagram where he
would re-conduct an interactive ad via Instagram Stories where he invited viewers to tap and
play along to solve the nutrition puzzle. It will also create a website where all the information
about the brand, product composition, price and availability in stores where they will be
available.

To establish communication with consumers and create product awareness, Chobani will also
use advertising through television commercials, pop-up ads on online sites and incentives.
They will promote their brand using incentives. The first 1000 people who sign up for their
website will receive free Chobani products as a symbol of appreciation. In this way, Chobani
wants to create a circle of consumers who will spread the news further and make others aware
of its existence.

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 4.5. Marketing Research

Chobani has decided to go with the Focus Group approach as a part of qualitative research, as
it will explore where Chobani can create, deliver, and communicate value within the
Portuguese market. Focus group also enables Chobani to understand and experience the views
that Portuguese consumers have on healthy foods and yogurt. It will provide insights about
Portuguese consumer yogurt preferences and motivations when choosing a certain type of
yogurt.

Chobani will collect quantitative data with a questionnaire which will allow Chobani to conduct
research in an efficient way with a minimal cost. With more time and budget, Chobani will also
analyze Portuguese shopper data or and review ways and preferences when purchasing through
additional observational, behavioral, or experimental researches.

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5. Financials
Chobani will examine break-even analysis, sales estimates, and revenue forecasts. Before
implementing the plan, we must predict the probable outcomes of the Chobani Yogurt launch
in Portugal, and examinate the break-even analysis, sales estimates, and revenue forecasts. The
projections made for a time interval of 3 years after the launch.

5.1. Break-Even Analysis

The break-even analysis (Table 2.5) shows that a minimum of 92.860 EUR in monthly sales
income is necessary to achieve the break-even point.

Table 1 Break Even Analysis

Break Even Year 1 Year 2 Year 3

Analysis

Fixed Costs (EUR) 1.120.039 1.226.088 1.058.601

Contribution 95% 95% 95%

Margin

Variable Costs 47.257 59.963 76.063

(EUR)

Break Even Sales 1.178.989 1.290.619 1.114.317

(EUR)

Monthly Fixed 93.337 102.174 88.217

Cost (EUR)

Minimum 98.249 107.552 92.860

Monthly Break
Down (EUR)

Revenue (EUR) 945.143 1.199.254 1.521.265

5.2. Sales Forecast

Chobani believes that the sales projections are promising in Portugal. As the advertising budget
allows, it will rapidly boost sales. Although the target market prediction classified all possible
consumers into different groups, the sales forecast divides them into two categories:
recreational and competitive.

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 5.3. Revenue Forecast
The current Chobani’s health yogurts turnover is €15 million at retail price. According to the
product’s goals, it is expected that market share will be 8%, 10% and 12% in the first three
years, thus assuming that the market will continue to grow at 18% per year, we will reach €17.7,
€20 and €25 million respectively at retail prices. Discounting an average trade margin of about
27.2%, we obtained the net sales value assumed to be 50% of net sales.
TV advertising is the heaviest investment in the Advertising & Promotional budget, and was
based on the relative TV investment in the category (as % of sales). The remaining funds from
the A&P budget were dedicated to magazines ads, outdoors, point-of-purchase materials and
trade and consumer promotions. Given these estimates, the Net Present Value of this project,
at a discount rate of 9%, is expected to be about €37,3 million.

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6. Controls
The aim of this marketing plan is to outline strategies, tactics and programs to create positive
market visibility through products, prices, distribution and communication tools in Portugal.
Obstacles we have to face:
● Justify the price of existing products
● Create awareness that our products are high quality products
● Strong existing and well-received competitors currently operating in Portugal
● Create strong brand awareness to achieve marketing performance goals, increase
chances of generating conversions and dominate the market
We need to meet milestones and sales goals. It will be crucial to use this marketing plan as a
living / working document. We cannot allow this plan to sit in a drawer. It must be used as a
ticket to Chobanya’s future success.

6.1. Implementation
The following milestones (Figure 1) identify key marketing programs. It is important to
accomplish each one on time and on budget.

Figure 1 Milestones

6.2. Marketing Organization

The founder of Chobani, CEO and President is Hamdi Ulukaya. Below his head position are
Director of Operations, General Marketing Manager, Director of Finance and Administration
and Director of Sales. Cobani’s current hierarchy of the marketing department is shown in
Figure 2. The department heads are Damian Young and have 23 employees.

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Figure 2 Cobani’s current hierarchy of the marketing department

6.3. Contingency Planning

These examples are an overview of possible difficulties and worst-case scenarios that need to
be considered and worked out well in contingency planning.
Difficulties and risks:
● Problems in creating visibility and awareness of Chobani products in Portugal
● Inadmissibility of Chobani products due to above-average product prices
● Entering the market of an already established market competitors
● Price justification for value and quality
● Ensuring food safety
● Supply chain disorder
Risks in the worst case may include:
● Determining that the Chobani organization cannot be sustained due to poor feedback
from consumers
● Liquidation of invested equipment to cover liabilities

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