SITUATION ANALYSIS ············································································································ 3 HISTORYMARKET SITUATIONMARKETING MIX

COMPETITION ····························································································································· 7 Oikos (Dannon)Marzetti Dip

STRATEGY ······································································································································ 12 TARGET MARKETRESEARCH OBJECTIVESPOSITIONING

CREATIVE ······································································································································ 17 CREATIVE BRIEFCREATIVE EXECUTIONS

SITUATION ANALYSIS

History: Yogurt was first introduced into many European countries. The word yogurt comes from Turkish roots, meaning to curdle or to thicken. “There are traces of yogurt that date back as far 2000BCE” Records have been noted the combination of yogurt and honey is the “food of gods”. In the 1900’s yogurt was seen as a health benefit, similar to how yogurt is used today. A man by the name of Isaac Carusso invented to production of yogurt in 1919, he started a small business in Barcelona, Spain. The business was called Danone, Dannon as many consumers know today.

Yogurt eventually became Americanized and made its way to the United States. Elie Metchnikoff introduced yogurt in a tablet form in the early twentieth century. Later Sarkis and Rose Colombosian, owner of “Colombo and Sons creamery” further invented the spread of yogurt to Massachusetts in 1929. At this time yogurt was referred to as, “Mazdoon” by its diverse ethnic consumers. The name eventually originated to the Turkish name, yogurt.

Finally by the 1950’s and 1960’s the United States was blessed with the “health food” known as yogurt. By the late twentieth century yogurt has become a popular American brand that has branched out to many different brand names and flavors. Colombo yogurt was sold to General Mills in 1993. Yogurt is known in many countries to be a ritual food. Its unique style consumption in other countries like the Middle East is very different in the United States. Yogurt is often mixed with fruit, honey or sugar before being mass marketed around the world. The delicious savory taste is something only in the United States culture.

In recent history a new yogurt “buzz” has soared through the United States, Greek Yogurt. The first Greek yogurt, Fage was introduced in 1998. In 2007, Greek yogurt became enormously popular when two competitors came head to head, Fage and Chobani. American consumers love the rich, thick creamy taste of Greek yogurt. Now, five years later, Greek yogurt takes over 35 percent of the total United States yogurt market.

Market SituationGreek Yogurt is not a fad it is here to stay and will continue to grow. Thanks to American Greek yogurt is flourishing from a niche market to a six billion dollar market. Forecasters from the daily ticker believe Greek yogurt could double in the next two years. The United States has just begun encouraging more and more companies to enter the booming market. “New York Governor Andrew Cuomo hosted the state’s first “Yogurt Summit” in August to help ensure New York’s place as the yogurt industry’s premier destination. According to the governor’s office, the number of yogurt processing plants in New York State has increased from 14 in 2000 to 29 in 2012”. From 2005 to 2011 New York States yogurt plants have seen double in their production. The yogurt industries have added $8.9 billion dollar revenue to New Yorks economy. Chobani and Fage both have their main production plants in Central New York.

Two top competitors Chobani and Fage entered the yogurt market in 2007. The Greek yogurt was a new topic to Americans that has continued to grow. Greek Yogurt is up 35% right now in total U.S. market shares. That is an enormous jump from just 4% back in 2008. With this growth it has gotten pretty cozy with competition in the Greek yogurt world. In 2010, Dannon launched its Greek yogurt line Oikos, which holds 20% stake in the market. Whole foods introduced their five varieties of the line 365 Greek yogurts along with Ben and Jerry’s frozen Greek yogurt treats. According to analyst specialists at Bernstein research, the U.S. yogurt market is a “revolution” that is booming from the popular Greek yogurt. Their forecasters are predicting the Greek yogurt market will reach up to if not over 50% of the market.

“Chobani recently invested $250 million in its Central New York yogurt manufacturing plant and will start production at its brand new $128 million, 900,000-square-foot facility in Twin Falls, Idaho this fall. The company will hire 400 workers at the plant, increasing its total U.S. workforce to 1,600 employees” (Daily Ticker, 2012). Greek yogurt is being referred to as the “hottest growing food categories”of all time.

Marketing Mix

PRODUCT

When looking at the overall yogurt market, Greek yogurt is dominating the entire market. Greek yogurt is growing at a fast rate. According to NPR, U.S sales of Greek yogurt has risen from $60 million a year to a whopping $1.5 billion. “That means that in just half a decade, one of the worst economic periods of the 20th century, sales of Greek yogurt grew 2500%”.

PRICE

Greek yogurt tends to be on the more expensive side compared to regular yogurts. The amount of yogurt in a Greek yogurt container is much more then a regular sized container. Greek yogurt contains 12-24 grams of protein. The yogurt itself is much more concentrated. Both of these factors are why Greek yogurt is more expensive in comparison to regular yogurt. You are likely to spend twice as much on Greek yogurt, because of consumer demand, the great taste, and that healthy nutritional benefits it provides the consumer. Many Greek yogurts have come out with their standard containers and they have added bonus features to their brands, variety packs. The price of regular yogurt, and Greek yogurt brands average to be the following according to consumer reports and CBS news (averages taken by finding top competitors and sifting through their averages according to different brands):

Greek yogurts are more expensive because of the high quality ingredients that are in it like the large amount of protein it contains.Yoplait still owns the yogurt market without the Greek yogurt market. As for now the Greek race is between Chobani and Dannon which own Oikos Greek yogurt. “Though often pricier, Greek yogurt is increasingly becoming a refrigerator staple as consumers seek healthy, “authentic” foods (Consumer report, 2012). Our economy has been in crisis for several years and believe it or not Greek yogurt is helping towards seeing better days for our economy. Chobani and Fage plants in upstate NY are already producing 1240 full time jobs, which helps the economy.

STANDARD YOGURTS $.66-$1.00

GREEK YOGURTS $1.15-$2.10

CHOBANI YOGURTS $1.29/6oz, $3.29/16oz, $5.99/32oz, and $3.99/Champions 4-pack.

OIKOS $5.99/32oz, and 3.99/4 pack

PLACE

Greek yogurt is available in almost all local grocery stores and in many health food stores. Greek yogurt can be purchased just about everywhere from traditional stores like gas stations, convenient stores, wholesale department (Sams Club, Bj’s), Super centers, and even online retailers. Many grocery stores sell their Greek yogurt in the yogurt and cheese section and the organic section. Even some sports retail department stores sell Greek yogurts. What is unique about Greek yogurt is they are expanding their market even more. Instead of pop up ice cream shops there is a healthier way to introduce products. They are now opening yogurt bars in popular metropolitan cities, like New York City. Thinking back to 2007 when there were just two popular Greek yogurt brands competing for shelf space, now there is the Greek revolution. There is a correlation between healthy food and yogurt. This provides opportunities for all stores to help promote health benefits towards their consumers.

PROMOTION

Chobani and Dannon are the top shareholders within the yogurt industry. Chobani commands a 47 percent share of the Greek U.S. yogurt market, according Bernstein Research’s data. Chobani stole the thunder from Fage because they believed Greek yogurt was in a niche market. Its competitors Dannon and General Mills threaten Chobani’s leading sales. The competitors have realized Greek yogurt is not just a phase. Health food and exercise promotions are a huge factor in the yogurt sales right now because Greek yogurt helps people lose weight and promote a healthy lifestyle. Organic marketing in health food stores is focusing on the health benefits. The yogurt bars and shops offer both traditional and Greek yogurt varieties to yogurt lovers along with a small selection of baked goods, salads and sandwiches. The majority of consumers that shop is the yogurt stores prefer Greek yogurt over traditional yogurt, mainly because it is better for the consumer. Both Chobani and Dannon provide online websites about their products and promotions. Both Greek yogurt websites have gone digital with Facebook, twitter, foursqaure and blog sites. These social media sites help consumers feel apart of the brand. For Chobani the social

media was free and focused on the word of mouth about the product then the competition. Dannon used a logistical approach to their most recent campaign from “Dannon Greek” to “Dannon Oikos Greek” which was launched in a super bowl ad featuring Greek-American actor John Stamos as their spokesperson for “the tease”. Chobani took a different approach by signing on as the official Olympic games sponsor at the 2012 Olympics. Chobani is consistent with their healthy way of life.

• Social media evens the playing field a lot more for smaller competitors – provided they have a superior product (Chobani is only five years old)• Chobani’s use of social media is very effective – using mostly fantastic photographs on Facebook, Instagram, and community engaging and oriented blogging.• Social media metrics can tell you a lot more about the competition quite quickly. Chobani’s competitors have cause for concern when they are losing share of mind in a category that is growing – Greek yogurt.

COMPETITION

Chobani History The founder and CEO Hamdi Ulukaya introduced Chobani in 2005. In 2005, Hamdi stumbled upon a forsale-ad for a yogurt plant that had been recently closed down by Kraft Foods. He bought the plant that day. He hired four employees who had lost their jobs when Kraft closed its doors, and later that year brought family friend and Master Yogurt Maker, Mustafa Dogan, to Central New York from Turkey to help craft the recipe for Chobani. The recipe for Chobani is based on his belief that everyone, regardless of income or location, deserved access to delicious, high-quality yogurt. In October 2007, the first cup of Chobani finally hit the shelves. Sales were slow at first, major retailors were targeting Chobani as a niche product. Chobani stayed true to their belief that everyone-regardless of income or geographic location—deserved access to high-quality yogurt. In 2009 Chobani signed on one of the largest stores in the Northeastern US. Other retailers soon followed suit. As Chobani made its way to the store shelves, consumers took notice. The company began receiving love notes from fans across the country; Blogs, online forums and Facebook soon buzzed with Chobani love. Chobani is company that strains their own yogurt, which is why it’s so thick, creamy, protein-packed and filled with health benefits.

Product and Packaging Product includes:

The #1 yogurt brand in America. 1. Only natural ingredients 2. 5 live and active cultures 3. Twice the protein 4. 17 delicious flavors

Price:

Chobani retails for MSRP $1.29/6oz, $3.29/16oz, $5.99/32oz, and $3.99/Champions 4-pack. Chobani products are available nationwide.

In 2010, Chobani launched their CHOmobile tour, with a 16-foot bright, blue truck delivering over 106,000 cups of yogurt to consumers in 32 markets across the US. Soon after, Chobani rose to the ranks as America’s #1 Greek yogurt.

The momentum continued, and in April 2011—less than four years since the brand’s launch—Chobani took top spot as the leading yogurt brand in the US, knocking out long time category leaders. Despite this rapid growth, Chobani has stayed true to it roots. The company remains committed to its people, which have expanded from four to over 900 and is committed to its nothing but good philosophy. The company gives 10% of its profits to individuals working towards positive, long lasting change through its Shepherd’s Gift Foundation, Chobani’s charitable arm. Chobani also actively supports local farmers and its local community because they firmly believe that, as a business, you can do well while doing good. (chobani.com)

Oikos History The Dannon Company introduced Oikos Greek yogurt in 2010. They hold a 20% stake in the yogurt market. Oikos offers fat free free, traditional, and organic Greek yogurt. Oikos is derived from the Greek word “house”. It also means ecology. Dannon and Stonyfield worked together to produce Greek Oikos yogurt so it could be mass produced to more stores for the consumers.

Product and Packaging

Stonyfield Organic Oikos packaging remains the same. It will have the logo on the front of the cup and the USDA Organic seal to the upper left of the logo. Dannon Oikos will feature the Oikos logo and the familiar Greek columns.

Promotion

2011 commercial TV commercial with Stamos“possible the best Greek yogurt in the world” 2012 Super bowl Spot “the tease”

featuring Greek-American actor John Stamos

“Every day, Marzetti's quality products are found on the dinner tables of millions of consumers, as well as in well-known restaurant chains across the country. America’s love for Marzetti products is a fitting tribute to Teresa Marzetti's pioneering Columbus restaurant”.-Marzetti Website

Product and Packaging

The Marzetti dipping family is infamous for their variety of dipping sauces, cole slaw sauce, croutons, and salad dressing. The dipping sauces are great for any veggie tray or snack on the go.

Marzetti® 90 Calorie Packs

The 1.5 oz container makes it easier for people to enjoy veggies on the go. The Marzetti 90 calorie Light Ranch dip helps you eat healthy and still enjoy what you are tasting.

PromotionMarzetti chooses to promote their products with coupons so their customers return for more. Eahc container will have a sticky coupon for the customer on their next purchase.

Brand Loyalty

Promotion

STRATEGY

TARGET MARKET The target market for Chobani “tzatzki” from the roots consist of females, ages 22-39. These women are best described as athletes, health conscious, and business professionals. They are ready to explore any new exercise routine whether it be at the gym, yoga, zumba, pilates and they are willing to pay for healthy organic foods. Primetime television between 8 pm and 10 pm is their main source of entertainment. These females are magazine readers who read women’s health and fitness, SELF, Cosmopolitan, US Weekly, and the NY times. When it comes to advertising they are most likely to look at print ads in magazines or online advertisements while online shopping. They look quick and easy way to eat healthy and still maintain their professional lives.produce Greek Oikos yogurt so it could be mass produced to more stores for the consumers.

Katie is young adult fresh out of college. She works the all American 9 am-5pm job for a printing company. They often have food days at work and she likes to bring a healthy snack that is more appropri-ate within her standards for dieting She is an avid runner everyday after work because she was on the track team in college. It is important to her to eat the right foods and maintain a healthy weight.

Molly is a sales representative for a business consulting firm. She is constantly on the go in the morning until the late evening. She always manages to hit the Gym at least 5 days out of the 7 day week. Molly always has a yogurt in her refrigerator at home because it is a fast and easy snack to bring on the go with her whether it be in the morning or afternoon

Lauren is a junior buyer at a financial institution in NYC. She works late hours brings healthy snacks for in between her 3 daily meals. With her crazy schedule Lauren rarely has time to make a four-course meal. She still likes to eat well but was in search for a healthy alternative. She is willing to pay for healthy snack but they should be proportion sized so she does not over eat.

Sarah is a fitness instructor at Salt City Xfit. She spends her time teaching intense exercise classes and lifting weights. Sarah is health conscious of her body and she needs a lot of protein to maintain her healthy physique. Sarah enjoys fher job because she teaches people how to eat the proper foods. Sarah only eats foods that have a lot of protein in order to fuel her work outs.

Marissa is a graphic designer of her own business. Marissa recently has ran 3 half marathons and is in the process of training for a tri-Athlon. Marissa works all sorts of hours but her schedule permits her to train. She is looking for ways to introduce more protein in her diet... who has time to make eggs every morning?

Research Objectives

Understand the consumers attitude toward greek yogurt and yogurt in general.

Greek yogurt is the healthier choice and people are willing to pay that

extra dollar.

While conducting a survey on Greek yogurt, most participants said they have tried Greek yogurt and more than half have made the switch. Even though the yogurt is a little more expensive than your traditional yogurt it leaves the stomach feeling satisfied. The different savory flavors that Greek yogurt has expanded to are great. The Greek yogurt comes in a larger container than most yogurt brands which in reality makes up for the increase in price. You are getting more for you dollar. The convenience is everything about the yogurt brands. The insight behind the is to develop more ways than one to make Greek yogurt accessible to the Consumer.

I don’t often have time to prepare/ eat healthy meals.

If it’s convenient, those surveyed said they would be willing to pay anything if it concerned the health of their diet. Since most don’t have the time during their busy lifestyles, they usually choose a junk food. The insight = the consumer will purchase the product no matter what the price as long it in convenient and good for the body.

Determine the difference between Greek yogurt brands:

I eat Greek yogurt because it gives me energy and leaves me feeling satisfied during my busy work week.

One Respondent said, “1 Chobani = a full lunch meal” When purchasing regular yogurt respondents identified that they opted for the healthiest brand of yogurt, so they could maintain a healthy weight and still have the juices to exercise after a long work day. However, when purchasing yogurt for more active people, high protein Greek yogurt, they revealed they would pay for the high packed protein yogurt which is usually more expensive. The psychology behind this suggests that Greek yogurt can supplement as a small meal and can still give the person a convenient snack. The insight = Greek yogurt brand are delicious high quality brands and people will pay for high priced food.

I don’t have time to make a full course meal to start my day.

People believe that convenience is everything. All of the participants said when you have a busy life five days a week its impossible to make yourself a nutritious breakfast like eggs, bacon, and toast and still get the daily servings of fruits and veggies.

Is there a difference between greek yogurt and regular yogurt?

When surveying a local grocery store one participant shopper said she always goes for the Greek. When purchasing yogurt there used to be little selection to choose from. Yes, regular yogurts there still are a wide variety of flavors but they are packed full of sugar. When you have a lot of sugar the body tends to get hungrier and the body can crash more easily. Greek yogurt is a new way to get a lot of protein and help the body maintain a good hunger level. Although regular yogurt tend to be less expensive, Greek yogurt still offers more in the end. The body receives a exponential amount of protein and is still non fat! The higher priced yogurt Greek yogurt is the new health brand that keeps people coming back for more. You can substitute the yogurt for a small meal and it becomes inexpensive. The insight= people like things that are going to keep them healthier longer and they like products that still taste great.

What happens when greek yogurt isnt in the fridge???People will do anything for their health foods. Freak out time.People have become so loyal to the Greek yogurt that when they run out, it becomes a top priority on their grocery list. All participants stated in some way or another that their weeks would be thrown off without their Greek yogurt, especially Chobani, because of all the unique tastes it brings to the table. For many of the participants it became a mental block for when work out time arrived at the end of the day. The feelings were sad, upset, hungry, mixed emotions, and definitely determined to go the store soon.

I wish chobani expanded their brand

When Chobani comes to mind it singlehandedly the healthiest snack/meal on the market. ”I wish Chobani came out with more flavors.” Insight= People think of Chobani they automatically associate it with a healthy meal.”

Positioning

PRICING RECOMMENDATION

The new line of Chobani is better then ever. It is not just a yogurt it also a dip that can be used as a meal or with crackers, pretzels, veggies or any of your choice! The pricing for this new snack will be slightly higher than the basic Greek yogurt. It will be similar to the pricing of the big containers of Chobani. Since the majority of consumers are willing to pay anything for healthy supplements, pricing shouldn’t be an issue. The container will be slightly bigger than normal Chobani. It is still yogurt but now it is a dipping yogurt.

NAMING & PACKAGING

When people think of healthy food they think of all natural, not processed. Respondents said things like organic, green, grown outdoors. That’s when we changed Chobani specialty line as “Chobani from the roots”, its all natural.

“To the athletes, health geeks, and business professionals Chobani from the roots will satisfy all your junk

food cravings but with a healthy kick.”

Chobani Greek Yogurt $1.59-$1.99Chobani from the roots $2.99Chobani from the roots Dill $2.99Chobani from the roots Taziki $2.99Oikos Greek yogurt $1.99Danon Oikos $1.29Yoplait Greek $1.29-$1.39Fage Greek yogurt $2.00

Qualitative research revealed that consumers are very particular when it comes their yogurt brands. However, when asked about shopping for yogurts women said they take careful consideration when choosing a brand of yogurt based on the different packaging. They also take careful consideration on how much or little the yogurt container holds. They think of not only the ingredients but also how convenient the packaging it. For instance, can I take it on the subway with me on the way to work?” When asked about the most influential factor when buying yogurt they all said convenience and how long it would hold them over in between meals. The packaging for “Chobani from the roots” spread is large enough to eat as a snack or a small meal and it will leave you feeling full. It will not tempt people to snack on unhealthy foods. The Chobani from the roots can be utilized as a spread, dip, yogurt and for many different recipes. No spoon is necessary unless it is based on preference. The Chobani from the roots will leave Greek yogurt eaters everywhere feeling satisfied with that extra convenience.DISTRIBUTION RECOMMENDATION

For distribution in grocery stores I would place the new dip in both the yogurt and product area. the produce is a new way to get the added benefits of vegetables to go along with the dip. If the dip is placed in the veggie section it lets consumers know the dip is good for them and it is fresh. The “Chobani from the roots” will be introduced during prime running season. The Cho mobile will go around the country supporting local marathons. They will distribute the Chobani form the roots as a pick me up from for the pre or post racing events. Marathons are a great way to get the word out to a lot of athletic people who probably exercise in a variety of ways then just running and they are most likely working in some industry.

The New York City marathon is a great way to start the trend. Over 10,000 runners participate in this race and over 315 million viewers watch the race through a worldwide network.If Chobani got more than one Cho mobile and redesigned as a Chobani “tree” they would get a lot of publicity. The reason I say New York City is because Chobani already has their yogurt bar in Soho. People can get touristy and wander down to the Chobani bar for a treat.If there is one place to get the new spread of Chobani roots started its New York City. There is so much hype and news that is bound to spread through word of mouth and especially all the local talk shows right in time square. The majority of young college grads and a lot of business professionals live close by the big apple and would love to be the first to be introduced to a new line of Chobani.Athleta is an athletic workout company that sponsors many yoga events, and other athletic gear. Why cant Chobani team up with a thriving business that could increase their profits and get their name even better known than it already is. Chobani should connect with a company like athlete and the two companies could sponsor certain events together and starting big time promotions. Young females in general would love to get involved. A perfect idea would be a yoga session in the middle of times square, at the end of your session leave with a new yoga mat wrapped in unlimited Chobani coupons for the new Chobani from the roots. This idea doesn’t have to be just in big cities the word of mouth can spread from this great initiative. Also when it comes to decorating around the house or when be traveling for the holiday spirit. Chobani can advertise their new line in a very different way. They can reuse recycled cups of chobani and you can personalize yours to be hung in rockafella center for the Christmas tree lighting as an ornament! .

CREATIVE

Objective

Target Audiance

What does the target currently believe

What do we want them to believe

Single minded proposition

Reason to believe

Tone

Executional Mandatories

To increase sales of Chobani Greek yogurt by more than 50% with their new healthy and convenient “dipping” snack.

Female athletes, health nuts, and business professionals ages 22-39 who care a lot about what they are eating and maintaining a healthy lifestyle.

The target currently believes that trying to be healthy is often difficult to maintain when you are constantly living a busy life. They find it difficult to snack during the day because they are worried about getting out of shape.

We want them to believe that Chobani from the roots sustains the life of their sports/activites/busy professional lives because of it’s enriched protein,con-venience, and lasting fullness. Most importantly we want them to know that a snack can finally be good and healthy for them.

Chobani from the roots will sustain the life of sports/activity/business profes-sionals because of its special nutrients and easy access convenience.

Chobani has created a dipping snack that is convenient and can be used for any desirable snack and you will still feel healthy! Chobani cares about the customers health satisfaction and constant convenience.

A shocking tone because you can finally indulge in a snack and not feel guilty. It is a surprise in every dip.

Listed on the next page

Creative Execution

Chobani from the roots can make a snack like this to goWhat is the “root” you want to choose?

This print advertisement will run in Fitness magazine and the Marathon magazine. This can be full page ad with a story about Chobanis new dip line.

Creative Execution

The root you will always want to climb

COMMERCIAL

Mom gives kid a bag of carrots and child looks in fridge. Two things stare back; a pack of hidden valley ranch and a carton of Chobani from the roots. Little girl scoops the carrot in the tzatziki cuplet of Chobani from the roots. This commercial will take the strategic approach of showing how this new Chobani dip will be used on everything from cooking to dipping. Instead of buying that hidden valley ranch that has additive sugar and fat consumers will choose a Greek yogurt base dip!

Event Promotion:A sponsor of NYC marathon and also a sponsor from Chobani will hand out promotional gifts at certain expositions and other events throughout marathon month. Some items that will be given out are pictured below.

-Ch-yoga” yoga matts that have the chobani from the roots logo on them

-The unique holiday decoration depending on which holiday is around the time of the event.“hint ornament”

-Create your favorite flavor of chobani t-shirt contest

-Personalized Chobani spoon giveaway

RationalChobani “from the roots” is a cucumber based Greek yogurt dip that makes life easier. When consumers get a hold of a snack that tastes good and is still healthy for the body they will not be able to say no. Greek yogurt and traditional yogurt have always been about being the next best thing. Chobani has already proved to be the best. Back when Chobani was first introduced the company focused on their true belief that everyone regardless of income or geographic location deserved high quality yogurt. We are sticking with that philosophy but now Chobani is moving towards the convenience for the consumer. The consumer deserves more which is why Chobani is expanding their line to Greek yogurt and Greek yogurt snack packs that can be consumed with other foods. The tzatziki, staple Greek yogurt snack, sauce, spread whatever you choose can be used for how the consumer chooses to use the product. By capturing our consumers on a emotional level knowing that we are thinking of their wants and needs is very influential. Chobani “from the roots” can position itself as the “convenient” on the go healthy snack against other Greek yogurt brands like Oikos and Yoplait that does not have a snack size alternative.