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Yeo Valley and Rachel's Organic Case Study: Capitalizing on the Mainstreaming of Organics

Description: This case study focuses on how the leading companies of the UK organic yogurt market, Yeo Valley and Rachels Organic, aim to retain their leading shares, by emphasizing health and provenance in their marketing and new product development This report on Yeo Valley and Rachels Organic forms part of the case studies series, which explores business practices across a variety of disciplines and business sectors. It looks at how these two companies aim to retain their leading shares, and also compete better against mainstream dairy companies, by emphasizing health and provenance in their marketing and new product development. Key reasons to purchase this title

- Gain insight into the methods used by important industry players to give them a competitive edge - Identify specific areas for operational improvements - Capitalize on the knowledge of experienced companies when entering a new niche or market


CATALYST 1 SUMMARY 1 ANALYSIS 2 Emphasizing health and provenance has helped organic yogurts gain an increasing market share in the UK dairy sector 2 Yeo Valley: the British countryside is at the heart of its marketing 2 Yeo Valley, an independent company, is the leading UK organic yogurt brand 2 Yeo Valley remains an independent company, unencumbered by corporate owners 2 Yeo Valley holds a majority share of the UK adult organic yogurt sector 2 A brand relaunch in 2008 was designed to help Yeo Valley compete more effectively with mainstream dairy players 3 Yeos packaging has been modernized, with a more coherent "umbrella structure" for its ranges 3 The relaunch is supported by a £3.6m marketing campaign that emphasizes the brands British countryside provenance 3 The company hopes the relaunch will help it to compete more strongly with mainstream dairy companies 4 Recent Yeo Valley promotions have focused on younger consumers, building brand share in this lucrative consumer segment 5 Young consumers make up a significant segment of the UK yogurt sector 5 The company was the first to launch organic yogurt tubes in the childrens yogurt market, in 2007 5 Yeo sponsors Glastonbury, aiming to attract the young audience with its ethical and locally-made products 5 The company continues to focus on a wider consumer spectrum with national sampling tours 5 Rachels Organic: focusing on "urban chic" products 6 Rachels Organic is the second leading adult yogurt brand in the UK 6 Rachels trails only Yeo Valley in the UK adult organic yogurt sector 6 The company is owned by Dean Foods, whose funds Rachels has utilized to finance new product launches and marketing campaigns 6 Rachels Organic successfully relaunched its product range in 2007 7 Its first product redesign in 10 years was issued in 2007, featuring distinctive black and white graphics 7 The company achieved 25% sales growth for the year, partly due to the relaunch 8 The company targets middle income adults and their kids with a range of health-focused products and related marketing 8

The company targets "sophisticated" customers with "urban chic" products and campaigns 8 The Mood yogurts range was launched in 2007, encouraging consumers to view yogurt as offering more than just sustenance 8 Rachels introduced its first digital marketing campaign in 2008, encouraging consumers to lead more naturally stylish lifestyles 9 The company is a main sponsor at the Hampton Court Palace Flower Show, where it aims to attract customers 9 A new kids range is set to launch in 2008, with separate products for toddlers and older children 9 APPENDIX 11 Case study series 11 Methodology 11 Secondary sources 11 Further reading 11 Ask the analyst 11 Disclaimer 12 List of Figures Figure 1: Yeo Valleys 2008 campaign emphasized its British provenance 4 Figure 2: Yeo Valley targets younger consumer with Yeos tubes and Glastonbury sponsorship 6 Figure 3: Rachels Organic 2007 adverts focused on the ranges distinctive black and white packaging 7 Figure 4: Rachels Organic targets "sophisticated" customers with "urban chic" products and campaigns, such as the Rachels website, Hampton Court Palace Flower Show sponsorship and relaxing branded yogurt, tapping into the functional food trend 10


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