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Chobani: Competitive Media Expenditure Analysis & Non-Traditional Recommendations December 6, 2011

Filed under: Media Planning — Erica Totten @ 2:26 AM
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Back to Media Planning and the Chobani campaign.  We were asked to complete a media expenditure analysis, analyzing Chobani’s advertising expenditures as well as its competitors.  After the analysis, we had to get creative and come up with our own event that will promote Chobani.  Read the analysis below, or click the link to view it through Word document.MediaExpenditureExam3

 

 

Competitive Media Expenditure Analysis & Non -Traditional Recommendations

By Erica Totten
A1)     Chobani Yogurt increased overall spending for advertising by $12,791,000 from 2009 to 2011. To increase awareness, Chobani advertised on network, spot, syndicated, and cable TV in 2011 to keep up with competitors. Most of Chobani’s competitors reached out to these media categories.  Fage did not spend nearly as much as Chobani on advertising. In 2009 and 2010, Fage’s budget spent about a third of Chobani’s 2011 advertising budget. Activia increased its advertising spending on yogurt to $63,000,000 in 2008, which was double its budget in 2006. Activia used network, spot, and cable television advertising in 2006 but increased spending in 2008 to include magazine and syndicated television advertising in the media plan. Breyers Yogurt budget decreased by one-third from 2000 to 2003 because it no longer advertised in magazines, network TV, and cable TV.
A2)     Most yogurt companies use magazine, network, spot, and cable television advertising. “Magazine advertising offers high quality production and color, flexible scheduling, selective readership, and flexibility in format. Readers can linger over advertisements, developing a more lasting effect with potential customers. Television allows the use of demonstration and visuals, has mass coverage, has a bigger impact on consumers with the combination of sight and sound, is versatile and has a higher repetition rate” (pg. 56). In a recent study, “when asked what media boosted awareness, 43 percent of those questioned said television. Television was named by 40 percent for increasing interest and 35 percent for increasing purchase consideration. Television made 33 percent want to purchase, 32 percent visit a Web site or store and 26 percent ultimately make a purchase” (Lafayette).
Outdoor, newspaper, and network radio advertising are rarely used. Outdoor advertising requires a short message, limiting creativity and legal restrictions. Newspaper advertisements offer poor production quality and radio advertisements offer no visuals and are easily ignored. Yogurt companies want their products to look appetizing and delicious, which is not easily depicted in newspaper or radio advertising (pg. 43-47).
Chobani’s 2011 campaign entitled “Real Love Stories” included two television commercials. Digital and out-of-home (OOH) ads all ran nationally. True stories and feedback from “Chobaniacs” via social media networks like Twitter, Facebook, and Youtube fueled the campaign (Elliot).
In 2011, Fage aired its “Plain” commercial nationally. As the Greek yogurt market continues to grow, “Fage sets itself apart with a poetic and metaphoric commercial, complete with detailed computer animations” (Locaj & Briggs, 2011). Fage’s campaign also included a website redesign, coverage in social media networks like Facebook and Twitter, and a stylish print campaign in Vogue and Elle that associates their product with high fashion, appealing to the target market of young women. Ads also appeared in The New York Times, Food & Wine and The Huffington Post (Stanfield).
A3)     Expand into magazine advertising because it has the advantages of a flexible schedule, a higher quality of production, flexibility in format, and selective readership that permits segmentation (pg.44). Place ads in Yoga Journal (249, MRI), Wine Spectator (217, MRI), US Airways (153, MRI), Travel and Leisure (145, MRI). Use shopping websites such as Shopping.com (153, MRI) and Shopzilla.com (156, MRI). Use more non-traditional media like adding coupons to grocery store flyers with newspapers to get new customers to purchase product for the first time.
A4)     Implement a budget of $26,000,000. Increasing the budget by $13,000,000 is a realistic estimate considering Chobani’s rapid growth and market share increase over the past year. “And while Chobani sits atop the yogurt category, the explosive growth of the Greek-yogurt trend means an influx of competition by big marketers with hefty ad budgets — such as Dannon and Yoplait” (Morrison & Bruell, 2011). Dannon and Yoplait have had much larger budgets in the past, but Chobani continues to grow and is expected to double its advertising spending next year (Morrison & Bruell, 2011).
B) Partner the Chobani Live Kitchen Series with Farmers Markets in the top ten healthiest cities in the U.S.: San Francisco, CA; Sacramento, CA; Portland, OR; Seattle, WA; Denver, CO; Minneapolis, MN; Boston, MA; Hartford, CT; Washington, D.C. and Virginia Beach, VA (Haiken, 2011). Organic yogurt users are more likely to live on the West Coast (126) and in the North East (127, MRI). Minneapolis, Boston, Portland, Denver, San Francisco, Hartford, Washington D.C., Virginia Beach and Sacramento are the cities with the healthiest and fittest residents (Kim, 2011).
Drive the CHOmobile, from the West Coast and the East Coast, to visit these ten different Farmers Markets on the first and third Saturday of the month from April to August, the prime market months.  Hold events in April in San Francisco (Ferry Plaza Farmers Market, April 7, 8 a.m.- 2 p.m.) then Sacramento (Sunrise Mall, April 21, 8 a.m. – 12 p.m.; “Ferry,” 2005 and Milado).  In May visit Portland (Portland State University, May 5, 8 a.m. – 12 p.m.) and Seattle (University District Farmers Market, May 19, 9 a.m. -2 p.m.; “Portland” and “Neighborhood,” 2011).  In June visit Denver (Southwest Plaza Farmers Market, June 2, 8 a.m. – 9 p.m.) and Minneapolis (North Lyndale, June 16, 8 a.m. – 2 p.m.; “Metro” and “Minneapolis”).  The July events are held in Boston (Chelsea Farmers Market, July 7, 9 a.m.- 1p.m.) and Hartford (Berlin Farmers Market, July 21, 9 a.m.- 1 p.m.; Wilbur and “Connecticut”).  The series ends in August, with stops in Washington, D.C. (H Street NE, August 4, 9 a.m.- noon) and Virginia Beach (Virginia Beach Farmers Market, August 18, 9 a.m.- noon; “Freshfarm” and “City,” 2011).
Locate the Chobani promotional counter next to fruit and vegetable stands for live cooking demonstrations that incorporate both Chobani yogurt and fresh produce from the Farmers Market.  Fresh Berry Banana Smoothies made from Chobani yogurt, strawberries and bananas are the feature of the April events in California because strawberries are in season at that time (“State-Specific”).  Give out free samples to market goers to taste and witness the versatility of the product.  Chobani chefs doing live demonstrations also talk about Chobani yogurt’s health benefits.  They emphasize that is it all natural, is made with no preservatives or artificial flavors, is made with real fruit, has twice the protein of regular yogurts and includes three probiotics (“Chobani,” 2011).
For the May events, Chobani chefs cook grilled asparagus with Chobani hollandaise sauce, since asparagus is in season on the West Coast from April to June.  Chefs cook the same recipe in the June event in Minneapolis because asparagus is in season during the month of June as well.  Make cherry and Chobani yogurt parfaits at the Denver event to take advantage of the cherries that are in season in June.  Make cucumber-feta Chobani dip for Boston and Hartford events because cucumbers are in season in July and serve on pita bread.  Make roasted eggplant and tomatoes with tangy cucumbers and greek yogurt for the Washington, D.C. and Virginia Beach events because both eggplants and tomatoes are in season in August (“State-Specific” and Adler).
In addition to the Chobani Live Kitchen Demos, market goers turn in recipes for the most unique and delicious use of Chobani yogurt for a chance to add their recipe onto the Chobani website.  Choose one contest winner in each city to also record a live demonstration of their recipe to be posted on the Chobani website.  Of the ten winners from ten cities, a panel of Chobani chefs that cook for the Chobani Live Kitchen Series vote on their favorite recipe to elect a grand prize winner.  Reward a cash prize of $1,000 to the grand prize winner.
Implement kitchen demonstrations at farmers markets because people who attend these activities are concerned about their health by choosing fresh produce and participate in outdoor family activities.  The Chobani Kitchen Live Series promotes healthy eating as well as the Chobani product.  Chobani may broaden its target market because farmers markets appeal to people of all ages and incomes.  Farmers Markets have become more popular across the country, boasting 6,200 markets in 2010, showing that Americans are becoming more health conscious (“Farmers”).
Give canvas tote bags to market goers as nontraditional promotional advertising.  The totes are not only useful to market goers for gathering their produce, but also attracts people to the Chobani promotional counter.  Design totes like Chobani cups, with handles on top, as a fun and creative way to promote the brand.
In addition to this nontraditional promotional advertising idea, place advertisements in traditional media including magazine, television and internet vehicles.  Emphasize advertising through social media networks like Facebook and Twitter to provide information and pictures for followers and update them on the Chobani Live Kitchen events.  Encourage market goers to follow the Twitter or Facebook pages to post their opinions on the event or the product.  Through these social networks, Chobani users are involved in spreading the word about Chobani and the Chobani Live Kitchen Series.
Because the farmers markets agree to partner with Chobani to launch the Chobani Live Kitchen Series, donate $5,000 to the Farmers Market Coalition, a nonprofit organization.  This donation continues Chobani’s reputation as a company that gives back to the community and shows Chobani’s support for family events and healthy eating through farmers markets.

Appendix A
Recipes to use for cooking demo stalls (because they are easy to make and use fresh produce):
-Cucumber-Feta Chobani Dip: plain Chobani, cucumber, feta, garlic, oregano, onion, lemon juice
-Grilled Asparagus with Chobani Hollandaise (Hollandaise sauce will have to be prepared ahead of time and asparagus will be cooked for the live demo): plain Chobani, lemon juice, egg yolks, Dijon mustard, Tabasco, asparagus
-Berry Banana Smoothie: Chobani yogurt, strawberries, ice, frozen banana
-Chobani Cherry Parfait: Chobani yogurt, granola, cherries
-Roasted Eggplant and Tomatoes with Tangy Cucumbers and Yogurt: Chobani yogurt, eggplant, olive oil, tomatoes, rosemary, cucumbers, shallot, red wine vinegar, pine nuts
(“Chobani,” 2011 and Adler)

References
Adler, Tamar.  (n.d.).  Roasted Eggplant and Tomatoes with Tangy Cucumbers and Yogurt.  Retrieved from http://www.finecooking.com/recipes/roasted-eggplant-tomatoes-tangy-cucumbers-yogurt.aspx
Chobani Kitchen: Delicious Recipes Made Easy.  (2011).  Retrieved from http://chobanikitchen.com
City of Virginia Beach: Farmers Market Shopping.  (2011).  Retrieved from http://www.vbgov.com/government/departments/agriculture/programs-and-services/Pages/farmers-market-shopping.aspx
Connecticut Department of Agriculture: Hartford County Farmers’ Markets.  (n.d.).  Retrieved from http://ct.gov/doag/cwp/view.asp?a=3260&q=399000
Elliot, S. (n.d.). Chobani, Greek Yogurt Leader, Lets Fans Tell the Story.  Retrieved from http://www.nytimes.com/2011/02/17/business/media/17adco.html
Farmers Market Coalition.  (n.d.).  Retrieved from http://farmersmarketcoalition.org
Ferry Plaza Farmers Market.  (2005).  Retrieved from http://www.ferrybuildingmarketplace.com/farmers_market.php
Freshfarm Markets.  (n.d.).  Retrieved from http://freshfarmmarket.org/
Haiken, Melanie.  (2011, September).  America’s Top Twenty Healthiest Cities.  Retrieved from http://www.forbes.com/sites/melaniehaiken/2011/09/13/americas-top-10-healthiest-cities/
Jones, Jean.  (n.d.).  Arkansas Farmers’ Market Association: Where Markets Thrive.  Retrieved from http://www.uark.edu/afma/AFMAone-pager(2).pdf
Kelley, L., & Jugenheimer, D. (2008). Advertising Media Planning: A Brand Management Approach. (2nd ed., pp. 44-45). New York: M.E. Sharpe.
Kim, Michelle.  (2011, May).  Top Healthiest, Fittest Cities in the U.S.  Retrieved from http://www.nbcnewyork.com/blogs/go-healthy-ny/Top-Healthiest-Cities-in-the-US-122583009.html
Lafayette. (2009). Study Shows TV’s Impact on Consumer Purchasing Behavior.  Retrieved from http://www.tvweek.com/news/2009/04/study_shows_tvs_impact_on_cons.php
Locaj, Jessica, and Nicki Briggs. (2011, February 17).  Chobani Debuts First-Ever National Advertising Campaign. Retrieved from http://www.chobani.com/media/RLS_Release_2.14_FINAL.pdf
Metro Denver Farmers’ Market.  (n.d.).  Retrieved from http://www.denverfarmersmarket.com/
Milado, Rowena.  (n.d.).  Sacramento Farmer’s Markets Rundown.  Retrieved from http://sacramento.about.com/od/shopping/a/farmersmkts.htm
Minneapolis Farmers Market.  (n.d.).  Retrieved from http://www.mplsfarmersmarket.com/
Morrison, M. & Bruell, A. (2011, October 07). Login – advertising age. Advertising Agency & Marketing Industry News – Advertising Age, Retrieved from http://adage.com/article/agency-news/leo-burnett-omd-expected-home-chobani/230290/
Neighborhood Farmers Market Alliance.  (2011). Retrieved from http://www.seattlefarmersmarkets.org/
Portland Farmers Market: Bringing the Best of the Country to the Heart of the City.  (n.d.). Retrieved from http://www.portlandfarmersmarket.org/
Stanfield, Briskman. (n.d.).  FAGE Gets With the Advertising Program | Beyond Madison Avenue.  Retrieved from http://www.talentzoo.com/beyond-madison-ave/blog_news.php?articleID=8404
State-Specific Seasonal Produce Guides.  (n.d.).  Retrieved from http://localfoods.about.com/od/searchbystate/State_Seasonal_Produce_Guides.htm
Tierney, Brian.  (2011, March 2).  FAGE Yogurt Launches First Ad Campaign.  Retrieved from http://www.mullen.com/2011/03/new-work-for-fage-is-nothing-short-of-plain-extraordinary/>.
Wilbur, Eric.  (n.d.).  A Guide to Boston Farmers Markets.  Retrieved from http://boston.about.com/od/food/a/FarmersMarkets.htm

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One Response to “Chobani: Competitive Media Expenditure Analysis & Non-Traditional Recommendations”

  1. I want to to thank you for this good read!! I certainly loved every bit of it.
    I have got you book-marked to check out new things you post…


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