Chobhani Greek Yoghurt

Case Study

Victoria Alvarez
Komel Al Awami
Jared Dawson-Klein
Wednesday 16th 2015
Dr. Navjote Kharra

Summary
Chobhani Greek yoghurt is a company started by a gentle man by the name of Hamdi
Ulukaya. Where did he get the idea? He came from humble beginnings in Eastern Turkey
where he used to eat thick and tangy yoghurt from is familys dairy. After relocating to
America he claimed that the American yoghurt companies were too thin, too sweet and
too artificial. He then developed Chobhani an original Greek yoghurt company that was
thick and high in protein with little or no fat. Chobhani used a product strategy that would
make the product very appealing to the customers i.e. Bright packaging. Their pricing
strategy was to go directly to the retailer and avoid going through distributors, allowing
for reasonable returns. Their promotion strategy was based on word of mouth in the
beginning and in later years was based on social media, occasional events and tours.
Chobhani had a very good customer loyalty team that allowed them to receive feedback
whether it is negative or positive. They followed a very aggressive innovation and
positive social change system basing their product on what customers needs and wants
were. Dominating in the American market they decided they wanted to expand and were
given a one-year trial run in Canada. The restrictive Canadian market didnt allow for
Chobhani to thrive so eventually they withdrew. Chobhani is still thrives and remains
dominant in the USA.
Questions
3. What are the advantages (a) and disadvantages (b) of Chobhani customer loyalty team
that handles communications with customers from phone calls and emails to Facebook
and twitter messages?
3a. The advantages of having a customer loyalty team that deals directly with the public
is that it gives the customers a feeling of having some form of say in how the company
can grow and broaden its horizons. With happy customers they somewhat become brand
advocates, and will continuously give direct referrals to people amongst their peer
groups. Customers who are happy with how the Chobhani Company runs will become
price insensitive, regardless of how the price changes they will stay loyal to the products.
In the organization, the team will become intimate and will build a strong bond allowing
them to be able decipher on the best way to deal with the customer feedback in high
quantities.
b. The disadvantages of the Chobhani customer loyalty team that deals with the
communication directly with the public is that in some cases not all the customers
concerns will be addressed because they receive such high masses of customer feedback.
The customer feedback they receive is over many platforms and it can become
overwhelming to the customer loyalty team. Another issue is that the customer loyalty
team may not be able to satisfy the needs of all the customers only because customer
needs and wants fluctuate. Across the all the platforms the team may not have the skills
or system to categorize the customer feedback accordingly.

6. What does Chobhani withdrawal from the Canadian market say about our country in
terms of macro and micro marketing issues that global companies need to understand?
What is your position in how Chobhani was treated in Canada?
Macro-marketing the aggregate flow of a nations goods and services to benefit a
society. (Glossary, GL5, marketing 9th Canadian edition)
Micromarketing how an individual organization directs its marketing activities and
allocates its resources to benefit its customers. (Glossary, GL6, marketing 9th Canadian
edition)
Chobhanis withdrawal from the Canadian market sparks the idea that the Canadian
market is a very restrictive one. From the rules and regulations displayed the Canadian
market is very conscious and careful on what external companies they allow into the
country. All the rules and regulations allow for the Canadian government to macro
market and push products that will benefit the society as a whole instead of allowing
companies to micro market. Global companies need to understand that the rules and
regulation in Canada are in place because the government is trying to back the local
suppliers and to drive the local economy.
Chobhani was unfairly treated even though they were given the opportunity to enter the
Canadian market. Even though Chobhani was allowed to enter the market, they werent
provided with the conditions and surroundings to thrive in such a market. Canadian
competitors were hostile towards Chobhani because of how different the products and
how the company was run. A lot of the competitors began to lose market share due to
Chobhani entering.

Reference page
Crane, F., Kerin, R., Hartley, S., & Rudelius, W. (2015). Marketing (Ninth Canadian
edition ed.). McGraw-Hill Education.