If you were a chief executive of Southwest Airlines, in need of a new strategic vision, which course of action would you choose and why in terms of a "cost leadership" or a "differentiated" business strategy? Use table 5.1 in the text as a foundation for

Chapter 1: Video Case: Chobani: Making Greek Yogurt a Household Name

1. Hamdi Ulukaya is a Turkish immigrant, who is now the CEO of Chobani, Inc., has come a long way in business. In the summer of 2005, he opened his own yogurt plant by the name of Chobani; starting with five individuals. It took Ulukaya 18 months in the kitchen to create Greek yogurt to be as pure as possible for consumers. His passion for yogurt drives his product to simplicity and perfection. He maintained his focus on the taste of the yogurt to create a successful target market. Chobani comes in both single and multi-serving sizes for individuals seeking a healthy and nutritious option of Greek yogurt. The target market for this product includes all individuals; it is also available in school kitchens to be served to children.

In recent years, Ulukaya was successful in his Greek yogurt business where he could reach his target in annual sales. After Chobani was successfully introduced in the United States, the company plans to expand their products to international markets. There is a significant number of individuals around the world that are Greek yogurt fanatics and Chobani would be a great fit for the market.

Ulukaya’s initial “4Ps” elements of the marketing mix actions include product, price, place, and promotion. His team worked months on perfecting a single cup of Greek yogurt. This placed a big emphasis on his product by proving to be the best natural and pure yogurt in comparison to other brands on the market. After Chobani was launched, the promotion stage of the product began through the distribution of the yogurt to supermarkets and grocery stores in order to gain entry to the mass market of American consumers; along with advertisements and commercials. American grocery stores and supermarkets were a good promotion place for Chobani to gain product awareness. Chobani’s popularity and demand were on the rise, which helped the company to expand their product to international markets in the United Kingdom as well as Australia. Due to Chobani becoming a successful yogurt product and with it being placed in the right locations with outstanding promotions, the company decided to place a sensible price on the yogurt and give realistic margins to retailers; but, not so high that upcoming competitors could undercut its price. Today, Chobani can be found in local grocery stores at a price of about $1.29 for a single-serve cup.

3. According to the CEO of the company, Ulukaya, when asked during an interview regarding their customer loyalty team and their responses to customers’ phone calls, emails and or any social media like Facebook and or Twitter. Ulukaya stated that everything goes to their Customer Loyalty team and the members of the Executive team which receives every email. Chobani charges its Customer Loyalty team with the responsibility of being the advocate for the consumer. It is their responsibility to respond to messages and appropriate them internally. This method yields the best advantage of Chobani's customer loyalty team. Ulukaya stated that the role of Customer Loyalty isn't a customer service duty, rather, it is important to differentiate because it is not a basic customer service role but a consumer advocate. It is incredibly important to empower a group to work harder for the business. Social media emphasizes positive communication with Chobani’s customers.

I do not see any disadvantage as the company provides immediate responses to any post or query from consumers. Communication is an essential factor when dealing with consumers in regards to improvement. This will assist the company when building their products. Quick and reasonable responses help establish a long-lasting relationship between the customer and the company, Chobani.

References

Kerin, R. A., Hartley, S. W., & Rudelius, W. (2015). Marketing. New York: McGraw-Hill

Education.