How to Disrupt a Crowded Market: Chobani’s CMO Makes the Argument for Good Food and Doing Good

How do you get customers to focus solely on you when they have so many options? Staying authentic and structured.

AMA
3 min readOct 4, 2018

Why authenticity matters

“Little things go a long way, and good deeds don’t go unnoticed,” says Chobani CMO and Commercial Officer Peter McGuinness. In a food world driven by profits and poor ingredients, McGuinness says they’re pushed to be a truly modern CPG company that has spirit and soul. Although Chobani makes business, he says the company wants to be in the business of wellness.

The company’s vision is to make universal wellness happen sooner, and McGuinness expects more small companies will come in and disrupt the big CPGs. For Chobani, their missions include nutritional wellness, social wellness and environmental wellness — all of which come together in their brand strategy: A food-focused wellness company that uses food as a force of good.

“Modern consumers expect brands to have a point of view on things well beyond what they make,” he says. Purpose begins with the product: Consumers won’t listen to any good a company does in the world unless the product itself is great. This great product gives the company the permission to wade into other social good areas, as long as those efforts remain true to the brand’s ideals, values and beliefs.

“You want to create authentic programs that drive authentic attention that gets authentic affinity,” he says. “But that is easier said than done, but you’ve got to get there. It’s what modern consumers expect.”

For example, Chobani gave away “Chobani Shares” to every full-time employee. The giveaway was aired on NBC and became one of the most-shared clips on the network. McGuinness said he was originally hesitant about the filming, concerned it would come across as a company taking advantage of a feel-good story — but it worked because it felt like a natural move for Chobani. They’ve also made it into the news cycle for their more polarizing social stances.

“Never market in the middle,” McGuinness says. “It’s lame and you’ll never be remembered for anything. The fringe people who don’t like us? I don’t think they’re pounding yogurt every day. When you have a point of view, you’re going to piss people off. if you don’t have a point of view, well you’re irrelevant anyhow.”

Chobani CEO Hamdi Ulukaya on the cover of Fast Company. Story here.

Authenticity takeaways:

  1. Stay true to your ideals, values and beliefs no matter how big you get.
  2. Always stand for more than what you make, people want to hear from your brand.
  3. Do the right thing — regardless of short-term impact.

Why structure matters

Even with great products and purpose, McGuinness says that if companies want to grow — especially CPGs with their slow growth — need structure, and that doesn’t mean silos. Chobani created a “demand department” that placed the communicators, sales people, PR, packaging, creative and others under the same umbrella. This ensures the teams work together early and often so everyone knows the good, the bad and the ugly of projects. Everyone feels they have a hand in each step of the process, and that ownership makes for improved results. This structure also creates one team with one budget and clear goals to fight for good, create growth and win the future.

Part of this included bringing creative in-house for a more nimble, aligned and cost-effective result, McGuinness says. These in-house moves and broad departments sparked more employee pride.

Structure takeaways

  1. Not everyone’s solution, just ours.
  2. Opportunity abounds with fewer walls, more integration and a lot of speed.
  3. Find friction points — and get creative.
  4. Turn competitiveness and control into comradely.
  5. You’ll e surprised by what you find and what you do.

“Above and beyond, please stand for more than what you make,” McGuinness says.

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