The essence of the Chobani brand
The essence of the Chobani brand lies in its high-quality and affordability. People want to be able to eat healthy, but many cannot afford to do so financially. Chobani’s mission is to make high-quality and nutritious products easily accessible to more people. Our Price related objectives are to maximize our profits, increase sales volume, match competitors price, beat competitors in the market, and meet fiscal goals to keep business going. These goals help us to set the cost of our products for our existing and potential customers. With that said, here is a breakdown of our price related objectives.
By having a firm understanding about Chobani Protein powder we are able to set prices that are in line with our marketing and product objective. Our marketing objective is to provide a highly nutritious product, at an affordable cost for the average working/middle class consumer. Our competitors average price for their protein powder ranges from about $25-$60 a jar. Our prices will have a competitive advantage by using real natural fruit flavors and incorporating the greek yogurt flavor into our protein powder.
Our value based approach to pricing is that we keep our customers as the central piece in setting prices. We want to maintain our customers’ confidence that we are providing the best pierce and the healthiest choice. Our competitor based approach is to match or beat competitors prices while proving more for your money. For our cost based approach, skimming our prices would not be ideal because there are many competitors for our product. Charging higher prices and then aiming at a more price-sensitive price will hurt us. Instead, our goal is to be fair to maximize customer satisfaction while meeting our bottom line. Initially when bringing our product on the market,we plan to continually create barriers to entry by reducing our prices. This will allow us to gain customers early and maximize customer lifetime value from future sales and upsells. We believe that these price decisions will allow us to create, communicate, and deliver superior value to our target audience.
Describe a competitive Pricing Strategy that is consistent with your value proposition and product strategy, and how this compares with key competitors (Jacklyn)
GNC is one of Chobani Protein Powder’s biggest competitors, selling their GNC protein powder at $49.99. Kirklands Protein Powder is sold at a significantly lower price $42.99. Not only do we want our protein powder to be easily accessible but we want it to be affordable. It is because of this that we want to provide our consumers with a reasonably priced product. The average cost to manufacture protein powder is about 8 cents per pound. A normal container of protein powder contains 3-5lbs of product. If we sell our protein powder at $39.99 per 3 pound container we would be priced lower than both of our biggest competitors and still make a profit of $39.75 per 3 pound container sold.
Explain any adjustments (psychological or other) that you intend to make (Jacklyn)
We plan on marketing our product in the health and supplement sections of any store that chobani yogurts are sold. We plan to place our product directly next to our competitors products. This way our consumers would be more likely to chose our product when seeing our products price as compared to our competitors.
Analyze how your proposed price-related decisions (strategy/tactics) are aligned with price-related objectives and how they will create/capture/strengthen your value proposition (refer back to your positioning statement)
I NEEDD HELP WITH THESE QUESTION:
Analyze how your proposed price-related decisions (strategy/tactics) are aligned with price-related objectives and how they will create/capture/strengthen your value proposition (refer back to your positioning statement)
Explain any adjustments (psychological or other) that you intend to make (Jacklyn)
