How Chobani Dominates the U.S. Yogurt Category by Attracting Customers on Both Sides of the Differentiation Marketing Methodology



Since becoming a FIU graduate student, my old ways of eating (traditional breakfast, lunch, and dinner) have been disrupted. I now prefer to eat mini meals (snacks) throughout the day so today I visited my local Publix to stock up on one of my favorite foods: Greek yogurt. With fresh eyes as a Marketer, what would have once taken me a few minutes to decide my purchase turned into a 15-minute exploration of the many Greek yogurt brands and their packaging. I ended up selecting Chobani products. During today’s grocery run, price didn’t dictate my selection, instead it was my positive brand equity associated with the company.

Once home, I visited Chobani’s website. Scrolling through their landing page, I was amazed at how masterful their marketing strategies are by selling to audiences using both “Undifferentiated” and “Differentiated” marketing methodologies.

Undifferentiated marketing, more commonly known as “mass marketing”, sells a single product using a universal message meant to appeal to as many prospective customers as possible. Here the business goes to market by casting a wide net. This “one size fits all” mentality does have its benefits, primarily in cost savings since only one marketing strategy is being used and the product and its messaging require minimal (or zero) customization to reach specific market segments. On the flip side, by not customizing a product or message a brand risks being overlooked due to consumer apathy.  If a product and message is too generic it will get lost amongst a seemingly endless range of competitors.

In Differentiated marketing, however, a business will use data to determine which segments of the total market they wish to focus their sales efforts towards. There are multiple methods a marketer can use to segment the market, including market research & segmentation analysis, existing customer data analysis, cost/benefit analysis, and competitive analysis (among others).  A few of the many tools used to gather data for analysis include surveys, CRM systems, analytics platforms, and more. The list of pros for a business deciding on differentiated marketing includes securing a larger market share, stronger revenues, and more highly satisfied customers. Alternatively (as one would expect) deploying a differentiated strategy means higher costs and increased complexity in message and product delivery.

Drilling down into Chobani’s use of undifferentiated and differentiated marketing, I saw the following examples on their website:

UNDIFFERENTIATED:

1 – They are one brand of many selling Greek yogurt within the: a) all yogurts category, b) all strained yogurts sub-category, and c) Greek yogurt group.

2 – They acknowledge the common stereotype that Greek yogurt is only eaten at breakfast (“Breakfast is served” messaging).

DIFFERENTIATED:


1 – They sell their Greek yogurt to multiple audience segments, which are currently prominently marketed to on their website as:

     a) Pumpkin spice lovers (“It’s back: pumpkin spice season!” messaging).

     b) Busy People on the go (“Busy schedules, simple snacks” messaging).

     c) Health-conscious people (“Super power. Natural protein” messaging).

     d) Halloween lovers (“Happy Halloween” messaging). 

     e) People who love “rags to riches” and “the American dream” stories
              i. Chobani origin story through its Founder, Chairman, CEO, Hamdi Ulukaya 

              ii. Chobani timeline “Once upon a time there was a shepherd…”

     f) Socially conscious people (via “Read more” buttons):

              i. Community wellness

              ii. Inclusivity

              iii. Child hunger

              iv. Sustainability

     g) People who buy from businesses with similar values (via “Read more” buttons):

              i. Giving back

              ii. Innovation

              iii. People

     h) “Hero Batch” branded yogurts

              i. Marketed towards veterans, families and loved ones of veterans, patriotic Americans.

              ii. “Developed by Chobani Veterans, our partnership supports Operation Homefront – a
                   non-profit building strong, stable, and secure military families that can thrive in the
                   communities veterans have worked so hard to protect.”

During my scrolling through their website, I realized that I identify with several of their target segments and that while in the grocery store, I ultimately chose to buy their brand over others because I remembered an old Chobani ad that stated (in part) that the company was founded by an immigrant (I fall under the category “e” above). I had an affinity with his story because both of my parents are immigrants. Moving forward I can’t promise to always be loyal to Chobani simply due to its origin story, but today that marketing strategy succeeded in earning my purchase.