One could say that the market for Greek yoghurt and Skyr is the same as
the market for yoghurt, but in doing so, one would be incorrect. Both are tasty
snacks and desserts, they are produced fairly similarly and they both consists of
mostly the same ingredients. The key word to the Greek yoghurt the group believes to be “better”. It
is more expensive, it is more nutritious and it is lower in fat. The more
delicately flavoured Greek yoghurt—strained to remove the whey and thus packed
with protein—was first available at speciality stores in New York City. The
popularity however rose quickly in the late 2000s.
It simply gives all the “right signals”. The market will be people who
actively search for these attributes, but also all the people who could buy the
product if presented to them (even if they didn’t think about it). The extra protein
appeal to health-conscious people. Danone have been giving
out supermarket samples and advertised in men’s fitness magazines. They also put Greek
columns on their plastic containers, and used a Greek-American actor to promote
Greek yoghurt during the superbowl 1. This has later shown to increase Oikos sales
A way to get a larger market share and get more customers is to cut
prices, and this is what both Danone and
Chobani has been forced to do in attempt to get more customers. The ones who
can cut the prices the most is usually the biggest producer. This means that it
is not room for too many producers if people go for the cheapest Greek-yoghurt/Skyr alternative. Sanford Bernstein Senior Analyst Andrew Wood said the
market is big enough for at least two Greek yogurt gods, which seems a
reasonable expectation. Ulukaya expects industry sales to double
in five years, saying, “If all the manufacturers start making really good
yogurt, there’s room for everybody.” 2. Joe Pawlak says “Chobani is the leader and Danone has the
marketing muscle.” 3. Maybe
Yoplait and Fage is done for in the U.S?
It seems everyone want this products and everyone is an potential
purchaser or influencer to the purchase. Americans are eating fewer sit-down meals and
favor hearty snacks on the go instead. Yogurt is portable, high in protein and
consumers often perceive it as healthier than other sweet snacks. Over half of
U.S. households bought Greek over the last 12 months, according to data from
retail research firm IRI, provided by Stonyfield, the largest organic yogurt
brand in the U.S 4. However, it isvery few households who buy
exclusively Greek. The majority of people purchase traditional or a mix of
traditional and Greek.
There is not a lot of risk in buying a pot of yoghurt. Either you like
to taste and texture or you do not. Promotional samples in supermarkets will
reduce uncertainties the consumer may have to the product. Everyone can
potentially involve themselves in the purchasing process. It can be a mother
who has heard about the product or seen an advertisement of it. It can be a
father who have read about it, or perhaps a youngster who seek a healthy snack
to school or training practice. The frequency of purchasing can be different.
The product can be for instance be offered in big packs in a supermarket, or
they can be served in cantinas or vending machines.
The product can be twice as expensive as a normal yoghurt, so packaging and presenting the product is important to illustrate the difference: “high performance, taste, nutrition and texture”. The associations from the product are likely to be positive, and there are many possible rituals of usage. Here I mean every time someone is a little hungry but do not have the time to sit down for a meal. This can be in between classes at school, it can be in work, it can be in sports, etc. This is especially applicable because of todays world where it seems we have less and less time to actually sit down and eat.
Patrice Geffroy
The product can be twice as expensive as a normal yoghurt, so packaging and presenting the product is important to illustrate the difference: “high performance, taste, nutrition and texture”. The associations from the product are likely to be positive, and there are many possible rituals of usage. Here I mean every time someone is a little hungry but do not have the time to sit down for a meal. This can be in between classes at school, it can be in work, it can be in sports, etc. This is especially applicable because of todays world where it seems we have less and less time to actually sit down and eat.
Patrice Geffroy
1. http://www.businessweek.com/articles/2013-09-05/greek-yogurt-latecomer-danone-eats-chobanis-lunch
2. http://www.businessweek.com/articles/2013-08-27/yogurt-nemesis-danones-battle-plan-agaist-chobani
http://www.bloomberg.com/news/2013-08-26/danone-finds-yogurt-s-all-greek-as-oikos-chases-chobani.html
http://www.bloomberg.com/news/2013-08-26/danone-finds-yogurt-s-all-greek-as-oikos-chases-chobani.html
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