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NIKKI DAVIS

JOUR 332

I N T E R NA L

- Fage was the first Greek-style


yogurt in America since 1998.

- Fage Total 2% was top rated plain Greek


yogurt compared to competitors.
- Fage is expected to be the leading producer
of plain yogurt in the US, accounting for
$230 million by the end of 2015.
- Fage has successfully used celebrity chef,
Bobby Flay, to show diversity of product use.

PPORTUNITIES
- Yogurt consumption in US grown
over 400% in the past three decades.

- Industry revenue will increase an average


annual rate of 2.9% in the next five years to
2020 reaching $5.6 billion.
- Growing health awareness has contributer
to an increase in yogurt profit margins due
to consumers willing to pay premium prices
forhealthier yogurt options
- Greek yogurt has grown from 1% retail
sales (2007) to account for 35% of total
yogurt sales (2014).

EAKNESSES

- Fage has branding issues due to its


packaging. People mistake the brand
name as Total.

- In 2014 Fage faced a lawsuit because


customers claimed the 0% labeling was
misleading.
- Fages largest advertising effort to date was
purchasing $4 million in ads in 2010.
- Fages has not launched a full-scale marketing
attack.

H R E AT S

- Industry operators anticipated to


increase 3.6% annually to 87 total
companies.

- Private-label manufacturers that offer similar


products at lower prices will drive down prices
of premium yogurt products through 2020.
- Fage owns 4.6% market share, whereas
Chobani, their direct competitor, owns 28.6%.

A N A LY S I S

E X T E R NA L

TRENGTHS

HARMFUL

SWOT

HELPFUL

P RO D U C T S
BEST MEDIA
I N D U S T RY

18

%
$SHARE

OF GREEK

YOGURT

Four subsidiary Greek yogurt brands,


with the lowest calorie options.

Official 2012 U.S. Olympic sponsor

First ever Super Bowl yogurt ad spot


Finding John Stamos

57

% OPENED
$SHARE CHOBANI

OF GREEK

YOGURT

SOHO

YOGURT SHOP

%
2.8
$SHARE YOGURT
OPENED

CULTURE
Y O G U R T COMPANY

OF GREEK
(OIKOS)

MERCH STORE

A N A LY S I S

Award winning 45 sec. national TV spot


Plain Extraordinary

Eight different products marketed to


a variety of demographics.

COMPETITOR

Six products and highest protein


compare to competitors.

2010
2011
2012

2007
TV

Fages first TV campaign in North America. The award winning, Plain Extraordinary campaign featured a 45-second
spots with voiceover from actor, Williem
Dafoe, and it was followed by serveral15-second spots.

Partnernship with Bobby Flay. Plain Kitchen was a website where visitors could
view recipes and cooking demos using
Fage. Fage also had a contest where
customers could submit recipes in hopes of
winning an all-expenses-paid trip to New
York with Flay in November 2012.

OUTDOORS

SOCIAL

ENDORSEMENTS

HISTORY

DIGITAL

Fage did creative online advertisements


on websites such as Epicurious.com and
Wired.com. They also highlighted their two
percent split yogurt on websites such as
The New York Times, Food & Wine and
The Huffington Post. They created different interactive activites depending on the
viewer base.

C R E AT I V E

PRINT

Fage featured two-page ads showcasing


the thick consistency of their yogurt in
their ridiculously thick yogurt campaign.

KEY
Fages largest competitors, Chobani and
Dannon, offer the same
type of products, flavors and packaging as
Fage, but they excel in
purchasing highly effective media that
reaches a larger audience. The major consumers of Fage, Chobani, Dannon and the
entire yogurt industry
are the same.

INSIGHTS

Fage has a strong history as the most authentic


Greek-style yogurt. They have successfully
pushed the versatile uses of Greek yogurt in
cooking through recipe features from various
chefs. Fage fails to compete against leading industry competitor, Chobani, because of little advertising, marketing, and customer connection. Fage
faces brand equity, brand recognition and brand
identity issues. The Greek yogurt market is projected to increase in both sales and value due to
health concious consumers and trends. This also
allows small, private-label companies to easily
steal market shares and sales.

+ MEDIA

MIX

TA M M Y, 2 9
Lives in New York City
Household Income: $150,000
Education: M.A. in Business Management
Relationship Status: Single, never married
Interests: Pilates, yoga and juicing
Favorite Reads: New York Times, Yoga
Journal, Food & Wine, Self and Bon Appetit

Media Objective: The goal for this campaign is to


increase awareness of the health benefits Fage
provides by 20% among Vegetarians and health
concious women in the Northeastern region by the
end of 2016.
Media Strategies: April 2016 will be the start of this
summer long campaign. Fage will team up with
Under Armours fitness app, MyFitnessPal, and
create a weight loss/healthy eating challenge as a
countdown to bikini season. The winner will win a
year supply of Fage products and a gift card to
Whole Foods. Fage will advertise their key health
benefits and capitalize their protein content compared to their competitors. This will be paired with
user-generated content of healthy alternatives using
Fage as a main ingredient. Print advertisements will
run in womens health and cooking magazines
including Shape, Womens Health, Oxygen, Muscle
& Fitness Hers, Yoga Journal, Food & Wine, Food
Network Magazine, Cooking Light, Vegetarian,
Womens Day and Bon Appetit. Fage will have
30-second TV spots during the Biggest Loser
season on NBC. Fage will sponsor Food Networks
Top Chef summer cook-off tournament with sponsored content, product placement and TV spots.

OBJECTIVES

The most common consumers of Fage, and yogurt in


general, are Asian women between the ages of 25-34
who live in the Northeastern region. They prefer plain,
Greek-style yogurt because of the percieved health
benefits. They identify themselves as calorie concious and have the highest reported Vegetarians.
They are described as heavy magazine and newspaper readers.

MEDIA

TARGET AUDIENCE

FREQUENCY
Media Objective: Achieve a constant reach of 60%
with average frequency of 5 and 80% reach at the
challenge/tournament finales.

SCHEDULING
TIMING +
Media Objective: The campaign will maximize
viewers by using a pulsing schedule that will pulse
during the highest participation periods of the campaign.
Media Strategies: The campaign will begin in April
and pulse through the months of April, May June,
July and August or summer season. The campaign
will lightly advertise as the sponsored activities
progress and flight at the ending of the Biggest
Loser season finale, which will be the end of the
MyFitnessPal digital challenge. The campaign will
flight for the finals week of the Top Chef tournament.

BU D G E T

Media Objective: Fage will have a budget of $25


million for the fiscal year and will be distributed
toward non-traditional sponsorships and traditional
media.
Media Strategies:
- $15 million on sponsored content/TV sponsorships
(includes all advertising and prizes during)
- $8 million in general advertising
(mostly print and TV ads during down periods)
- $1.5 million in digital media activities
(advertisements, prize packages and MyFitness
Pal partnership)
- $500,000 contingency

GEOGRAPHY
Media Objective: Increase TV advertisement viewship in the Northeast region of the US and expand the
brand so it is nationally recognized.
Media Strategies: TV show sponsorships will be
national TV buys that run during the show and on
the specified TV stations. Regular TV ads will be
spot buys in the Northeast region which includes
New York, Pennsylvania, Massachusetts, Rhode
Island, Connecticut, Maine, New Hampshire, Vermont, Delaware and Maryland.

OBJECTIVES

Media Strategies: Print advertisements will begin


the campaign of the summer challenge and the Top
Chef tournament. TV spots will run on Food Network
building anticipation for the tournament. The heaviest media will be the week before the premiere of
Top Chef and during the final countdown of the
non-traditional online challenge. The second heaviest media usage will be after the winner is chosen
and creating advertisements of them endorsing the
product and showing how they use the product.

$ MEDIA

MEDIA

R E AC H +

SOURCES
http://academic.mintel.com.ezproxy.library.unlv.edu/search/?q=fage&go=
http://academic.marketresearch.com.ezproxy.library.unlv.edu/product/display.asp?productid=7206794&curl=&surl=%2Fsearch%2Fresults%2
Easp%3Fprid%3D865247739%26query%3Dfage%26cmdgo%3DGo&prid=865
247739
http://www.adweek.com/news/advertising-branding/fage-yogurt-brand-makes-splash-online-107832
http://www.huffingtonpost.com/2014/06/23/greek-yogurt-lawsuit_n_5521670.html
http://usa.fage.eu
http://adage.com/article/al-ries/fage-lost-greek-yogurt-war/237558/

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