W hy Kore a i s The Ne xt M arke t f or Chobani

THE PROBLEM

is evidentKorean consumers need better yogurt. For the past 30

years, Koreans have been enjoying the wrong yogurt! Binggrae, a Korean food-products conglomerate, first introduced spoonable yogurts to Korean consumers in 1983 through

Yoplait. Since then, Yoplait brand has become the number one selling spoonable yogurt,
with over a million cups sold everyday, and a household brand name for it in Korea.

SPOONABLE YOGURT

market has been a booming consumer food sector in

recent years, growing 25 percent per annum since 2008, from $210 million to $350 million. The market is expected to grow more than $370 million in 2012.

SpoonableYogurt: TotalSales 400

USDMillions 290 210 330 350 370

SpoonableYogurt: TotalMarketShare
8% 2% 20% 30% 40%

300 200 100 0

Binggrae Yakult Maeil Namyang Danone

2008 2009 2010 2011 2012 (est)

(Source : Hankook Ilbo, Consumer News, Seoul Milk Cooperative)

WE FIND

that the drastic increase in the sales of yogurt is due to the changing nature

of the Korean consumer society - one that is seeking healthier life-style with the rise of income. Here, I have to make a cultural food note of the word "yogurt" because in Korea yogurt actually refers to Yakult, a super-sweet drinkable liquid yogurt brand that was introduced to Korea by the Japanese dairy company Yakult in 1969.

Accordingly, as consumers have become more health-conscious in their food selections, many have eschewed away from these sugar concentrated liquid yogurts to a more nutritiously produced spoonable yogurt, which the Yoplait brand has domineered and has become the synonym word for it in the Korean consumer lexicon.

HistoryofYogurtBrandConsumerLexicon

DrinkableYogurt=Yakult

SpoonableYogurt=Yoplait

HealthiestYogurt=Chobani

THE IRONY

is that Korean consumers think that they are getting a good, healthy

nutritious yogurt (given the available brands), when in reality they are not. The best, the healthiest, and the most nutritious yogurt that is available today is Chobani, which most Koreans never heard about. But more importantly, they are

not aware of the

CHOxperience that makes Chobani s brand stand out from the pedestrian yogurt brands.

CHOXPERIENCE

occurs when consumers not only buy a cup of great strained

yogurt, but also pay for a healthy lifestyle that he or she chooses to live for. It says something about who they are as individuals, not just as mass consumers. CHOxperience also entails the Shepherd philosophy on social entrepreneurism aimed at promoting a

fairer society by helping the underprivileged and needy. Thus, the buying experience of Chobani is about engaging and acting as anonymous participants in making the world a more positive place with the company.

WE BELIEVE

that Chobani is the yogurt product and brand that consumers have been

searching for. With its strong emphasis on wellbeing lifestyle and corporate social responsibility, Chobani can potentially become the next household name for yogurt in Korea.

ThisreporthasbeenpreparedbyPayPerFreeNation,LLCandmaynotberedistributedforanycommercialpurposeswithoutthepermissionofthe author.PayPerFreeNation,LLCisanAmericanstartupestablishedin2011bytwograduatesofJohnsHopkinsUniversity.WithofficesinbothSeoul and New York, its mission is to find and sell experiences, not products, in the world that can make tomorrows life more fulfilling than todays. MembersofPayperFreeNationproudlycallthemselvesasGlobalExplorersandCulturalVisionariesoftwentiethfirstcentury.