His price marketing plan was to approach retailers directly, avoiding distributors. That way he was able to be “closer” to his product and maintain a firm relationship with the retailers. He also kept the price of a single yogurt high enough to offset the production costs but not so high that would let competitors to reduce their prices to the point where Chobani would be out of competition. His place strategy was very smart. By making Chobani yogurt available on the conventional yogurt aisle of supermarkets, he achieved a wide consumer demand.
Price - $1.29, considered affordable Place – Grocery stores Promotions – Hand written notes sent back to people contacting 2a. What marketing actions would you expect the companies selling Yoplait, Dannon and PepsiCo yogurts to take in response to Chobani’s appearance? They can lower the price of their yogurts by offering coupons. 2b. How might Chobani respond?
One of the biggest areas that have seen a great change in consumer spending is grocery stores. More and more people are switching from name brand products to off brand and store brand products. People are also opting for discount food stores, such as ALDI, for cheap variations of the food they love. Lastly, one of the biggest new trends is using coupons. With the use of coupons people can reduce their final bill, and save money.
Frozen yogurt is the closest dessert to ice cream in terms of taste and build. It’s impractical to completely replace ice cream with frozen yogurt at this point. Instead, a gradual increase in frozen yogurt choices and ice cream-frozen yogurt mixtures will encourage customers to purchase the healthier options without dramatic profit losses. Another solution is to increase the existing menu options of frozen yogurt to match those of ice cream, thereby giving customers a fair alternative to existing ice cream options. This report will compare the health benefits of frozen yogurt and ice cream.
There is currently one major competitor in the specialty foods business is the chain Whole Foods. The foot print of Whole Foods is so large and has a larger market share than Kudler, they would be able to cut into Kudler’s competitive advantage of being the only specialty food store within their operating locations. There are more super chains such as Wal-Mart are starting to carry organic foods at their notoriously low prices. Wal-Mart is not only starting to offer organic items, but they are saving money by doing it. “By distributing locally, [Wal-Mart] said it saved 112,000 gallons of diesel and total freight expense of more than $1.4 million” (Hoffman, 2008, p. 1).
Threat of new entrants: The threat of new entrants is high. The major barriers for a startup to enter the industry are the economies of scale and the distribution channels necessary to be profitable. Due to the relatively little differentiation among companies in the industry, customers tend to visit the closest and most convenient store instead of sticking to a particular one, which makes wide distribution of the business quite essential for the fast food restaurants. Threat of substitutes: The threat of substitutes is also high. Firms in the fast food industry and home meal replacements have to continuously innovate to maintain various product differentiations and high quality of food and service in order to stand out against competitors.
For example Tesco or ASDA. Median sized supermarkets can be sited near town centres or large ones can be sited near the edge of housing estates. They choose to open here as people need food and drink every day so having a convenience store near a housing estate is profitable. Supermarkets sell a lot items in one place it makes shopping very easy so the need to go to different stores lessened so because of this small town centre stores are getting less and less business this is causing more and more of these stores to close down. Some superstores for example ASDA have a clothing section and in this case a large part of that is for school uniform.
Moreover, the articles tells us that, “Yum’s U.S. business notched a 6% increase in same-store in the third quarter ended Sept. 8, driven by Taco Bell”(Jargon).This proves that 13% gain in same-store sales. This is significant because the new Cantina Bowl products and tacos made with Doritos shells were behind the growth. Therefore, fast food restaurants are up scaling which contribute with America’s obesity problem. In conclusion, the reason for America’s obesity epidemic is that the fast food restaurants are giving the customers foods that are supersized. The articles above state the reason why and what caused the obesity problem.
* Meets the desire of Paul Livoria * Additional revenue source ( appendix 4) * Increasing franchising trend, 70% of restaurants in Dawkins are franchises * Takes advantage of population growth and high family disposal income in Dawkins * A strong motive for franchise managers to make their restaurants as profitable as possible * An opportunity to improve menu base on local demand, shared innovative ideas and success stories among franchisees that can help strengthened growth Cons * Risk of losing sandwich quality as managers might not comply to standard procedures or invest in people or maintenance * Additional cost of finding and monitoring company managers * In case of failure to comply to franchise agreement, terminating the contract can be costly and difficult * Increasing strict quality heath control in Dawkins and risk of losing franchises that do not adhere to these quality
The main reason it is here is because they want us to buy, buy, buy and for them to sell, sell, sell 8) A balanced diet is very important, without one you might not get all the nutrients you need and there for have a shorter life span. An example of an unhealthy diet is, mountain dew, cookies, cake, candy, milk, frosted flakes. While the milk is good for you, there really is only the dairy section of the food pyramid in there. A good balanced diet is steak, beans, broccoli, milk, bread, pasta, tomato sauce, and even an apple. Here you have protein, carbs, fats, dairy, vegetables, and fruits, now just include some water and you have the perfect meal.