Question: Based on this case, can you help me answer these questions? cheese for restaurants. He built it into a successful operation and accumulated some savings.

Based on this case, can you help me answer these questions?

Based on this case, can you help me answer these questions? cheesefor restaurants. He built it into a successful operation and accumulated some

cheese for restaurants. He built it into a successful operation and accumulated some savings. One day in 2004, Ulukaya read an article about an old yogurt plant that Kraft Foods was closing. As he thought about the old yogurt factory being shuttered and his own disdain for local yogurt products, an idea began to take shape. The next day, he drove to upstate New York, inspected the plant, and quickly decided to buy it. He used a combination of personal savings and a loan from the U.S. Small Business Association to buy the plant at a bargain price (he declined to disclose the amount). He also hired four of the former Kraft employees who had worked at the plant plus a skilled yogurt maker he knew by reputation from Turkey. Next, he needed to set up equipment and develop a production system. The old Kraft plant had all of the basic yogurt-making equipment he needed. However, because he wanted to extract the whey, he also needed some additional machinery. After a brief search he found a used machine called a separator in Wisconsin and bought it for $50,000. In addition, he bought a few other pieces of specialized equipment-mostly used-and was ready to start testing recipes and production processes. He also wanted to create some unique packaging for his new line of yogurt. Ulukaya didn't feel that he could afford traditional advertising for his start-up operation but concluded that he could attract consumer attention. He created a model of his yogurt containers that was squatter and fatter than what other manufacturers were using. This would both attract attention and make the containers look a bit larger. In addition, he decided that he wanted the labels to be shrunken-on plastic sleeves instead of being printed directly on the yogurt containers-this would result in sharper and brighter colors, attracting further attention. But these decisions resulted in some temporary roadblocks for Ulukaya. The first step in making the yogurt containers would be to create a mold. The lowest bid he could get from a U.S. supplier for this job was $250,000-half of his working capital. Eventually, though, he found a company in Colombia that would do the job for half that amount. So, now he had a plant, equipment, workers, and packing. But he still needed a product. Finally, after a couple of years of trying and testing recipes and getting his business plan finalized, Ulukaya launched his new yogurt in 2007. He named it Chobani-Turkish for shepherd. To keep control over the product, as well as its pricing and placement, Ulukaya and his first marketing representative approached retailers directly rather than going through distributors. It was important to Ulukaya, for example, that his yogurt be sold with all of the other yogurts rather than in the organic section. Their first order was for 300 cases for a grocer on Long Island. A week later, the grocer called Ulukaya, told him the product was flying off the shelf, and ordered another 300 cases. To say Chobani has been successful would be an understatement. For example, Ulukaya's business plan called for achieving a sell rate of 20,000 cases of Chobani a week within 36 months. If the new start-up could not reach that level, Ulukaya knew he would need to close the operation. As it turned out, his target was way too low-by a year and a zero. By mid-2009, 200,000 cases a week were going out the door. Now Ulukaya is a billionaire. Chobani has become a market leader and is also being made and sold in Europe and Australia.It is no surprise, of course, that his bigger competitors have taken note of Ulukaya's success and attempted to thwart his efforts. Both Dannon and Yoplait have aggressively introduced their own versions of Greek yogurt and are gaining market share. But for the time being, at least, Chobani still hasn't found its ceiling. Indeed, the firm is now shipping 1.2 million cases a week, and sales are still growing. Not bad for a Turkish immigrant just looking to learn a foreign language!'

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