YoYo’s Yogurt Café Market Analysis

Subject: Business
Type: Analytical Essay
Pages: 2
Word count: 612
Topics: International Business, Food, Management, Marketing

YoYo’s Yogurt Café is the first of its kind in the entire Canada and it has set the standard in self-service frozen yogurt. It provides a hip and healthy environment with a mission of creating the ultimate in the frozen yogurt (YoYo’s Yogurt Café, 2017). 

The three major processors of yogurt, Parmalat Canada, ultima Foods and Danone, have a combined market share of 73.5% in the yogurt market; therefore, the private labels like YoYo’s Yogurt café have very limited share of only 3.3%. However, the demand for YoYo’s frozen Yogurt is likely to increase because yogurt is mostly consumed in spoonable form, 91.5 percent (Datamonitor, 2016). 

Regional Market Importance and Trends

The store designers for YoYo’s look for traditional and unique sites in strip plazas and mall location (YoYo’s Yogurt Café, 2017). These markets are very important to the business because they have large population. Such markets are likely to contribute to high revenue for the business. Healthier eating has been the dominant trend in the food industry of Canada with emphasis being on lower calorie and lower fat products with nutritional benefits. Therefore, Canadians seek foods having health benefits that are tasting good; demands that are continually capitalized on by yogurt which has shown a strong growth since 2010. Frozen yogurt consumption has increased steadily; from 2005 to 2010, its average consumption grew by 22% (Datamonitor, 2016). 

Market Segment Analysis

The market segment is large enough to justify YoYo’s Yogurt Café investment. The consumers are willing to pay a premium because of the business is delivering a premium healthy product which has a great taste. They offer fresh yogurt full of probiotic features and health benefits (YoYo’s Yogurt Café, 2017). The market segment is becoming larger and larger every day because of the increase in yogurt consumption. The business targets mostly adult female because of their high demand for yogurt. This market segment is sustainable because estimates indicate that women make up over 70 percent of the industry revenue, a trend that is likely to continue (Datamonitor, 2016). 

Seasonal Analysis

Weather plays a key role in the demand pattern for frozen yogurt in Canada which could potentially impact the business (Chollet et al. 2013). Since the franchise is summer and warm weather friendly, frozen dessert’s consumption is more evenly distributed currently than it was some decades ago. The decrease in the seasonal demand is due to the increase in health-consciousness among people; yogurt has been perceived by consumers as a healthy food and therefore its demand continues to rise irrespective of the weather (Datamonitor, 2016)

Consumer Data

The average consumer of YoYo’s froxen yogurt is a young adult female. Over 42% of the company’s sales are likely to come from consumers aged 18 to 35; however, approximately 7 percent is likely to come from those over 51 years according to the Canadian frozen yogurt data (Datamonitor, 2016). In addition, some estimates shows that woman consumption represents over 70% of the industry revenue. The demand for frozen yogurt grew 7% between 2013 and 2014 and the trend is likely to continue because of the power in healthier alternatives because more and more Canadians are interested in healthier living. Frozen yogurt has probiotics that are useful for boosting the immune system as well as help in digestion (Chollet et al. 2013). 

Consumer Behaviour

The consumers are driven into YoYo’s frozen yogurt year round by the health benefits of the natural probiotic yogurt that tend to speak for themselves (YoYo’s Yogurt Café, 2017). The yogurt is of the best taste and quality in the market currently. In addition, more consumers are shifting towards the self-service offerings. 

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  1. Chollet, M., Gille, D., Schmid, A., Walther, B., & Piccinali, P. (2013). Acceptance of sugar reduction in flavored yogurt. Journal of Dairy Science, 96(9), 5501–11. https://doi.org/10.3168/jds.2013-6610
  2. Datamonitor. (2016). Canada Yogurt. Yogurt Industry Profile: Canada. Retrieved from http://ra.ocls.ca/ra/login.aspx?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=11512988&site=bsi-live
  3. YoYo’s Yogurt Cafe (2017).  YoYo’s. Yoyosyogurtcafe.com. Retrieved 12 February 2017, from http://www.yoyosyogurtcafe.com/yoyos
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