Friday, September 13, 2013

Danone reacts in Greek yogurt in the u.s.

Just two years after launching its first product, in 2007, Chobani became the largest seller of Greek yogurt in the United States, a product that has greater consistency and more pronounced flavor than the traditional. It's not the kind of success that goes unnoticed by Danone, the world's largest yoghurt maker.
After being taken by surprise by the company beginner, the French multinational responded with its own brand, Dannon Oikos. An intense marketing campaign included a television commercial during the Super Bowl, the championship game of American football, and the free distribution of samples in supermarkets.
The success of the late effort of Danone for "hold" the Chobani is a demonstration of how the aggressive marketing of a rival established can prevail over the initial advantage of a rookie.
Danone has put the design of a Greek column packing and hired Greek-American actor John Stamos to the commercial aired at the Super Bowl, to give more authenticity to the product.
Sales of the Oikos grew 165% in the 12 months until may 2013, according to research firm Mintel Group. Chobani's sales increased more than 20% over the same period-she still leads the segment-, but Sanford c. Bersntein says the company has been losing market share for nearly 18 months.
Since the advancement of Oikos began in 2011, the slice of Chobani Greek yogurt on the market fell almost by half, to 39%, while that of Danone rose from 18% to 29%, according to Bernstein. The hallmark of Fage Daiury Industry of Athens is right behind, with 8.5%.
To win in the American market of yoghurts, which moves $ 7.6 billion a year, it takes winning in the Greek segment, which in six months should account for more than half of sales of yogurt in the u.s., according to Bernstein. To extend the reach of the brand Danone launched the Oikos in flavors like cucumber and Dill "and tests a frozen yogurt.
In 2007, Chobani included a mix of fruits in your Greek yogurt. Since then, conquered consumers with flavors like coffee with chocolate and figs with orange peel. Among the attractions are the fact that the Greek version has more protein than regular yogurt, which raises the feeling of satiety, and has little fat.
The Greek yogurt can cost up to twice as much as the common, in part by requiring three times more milk, which gives the consistency characteristic. Even so, in 2011 the Chobani had 15% of the u.s. market of yoghurts, according to Euromonitor. And most importantly: Chobani conquered nearly half of sales of the Greek yogurt segment, which grows quickly. Already the participation of Danone yogurt in the u.s. market fell from 40% in 2010 to 35% a year later.
This is where comes into play Sergio Fuster, who in June 2011 became Director of marketing at Dannon, a unit of Danone in the USA. In September, Fuster had re-released the Dannon Greek as Oikos and took money from other brands of the group to support the sales effort. Danone has distributed samples in supermarkets and published ads in magazines geared toward good physical shape, whose readers could be attracted to the highest degree of protein products.
Danone will begin selling "parfaits" (dessert that can take fruit and cereals) Greek yogurt in Starbucks cafes in the next year, before starting sales in supermarkets in 2015. Take the product of Danone for new categories makes sense as a means of limiting the expansion of Chobani, says Bill Chidley, Deputy Chairman of Interbrand Design Forum.
The Chobani is moving beyond its main line. "At the moment, our major focus is in yogurt," says spokeswoman Nicki Briggs. This comes meaning cutting prices to keep customers. The Bernstein estimates that 43% of sales of Chobani this year, so far, have been made with discounts, against one third in the case of Danone.
Valor Econômico - 13/09/2013
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