- Increase its revenue by over 50% before the end of 2001
- Increase its 1999 revenue from $13 million to $20 million
before the end of 2001.
- Has to increase at least $7 million.
-Venture capital has to cash out of its investment
in Natureview, therefore the company is looking
for new investor and a possibility for acquisition
(new financial source).
- Natureview must achieve its goal in order to
attain the highest possible valuation of the
“Natureview should expand their business
into the supermarket channel or not”
- 2 main channels for Natureview to sell its
Supermarket and Natural food stores
- In the proportion of 97% to supermarket
and 3% to natural food stores.
“Even though supermarket is more attractive,
there are some reasons behind this and that
should be considered”
- Depend heavily on broker's knowledge
- Broker's fees, slotting fees, promotional
allowance bring high risk and high cost to
- Conflict (Final price)
Option 3: Introducing two SKUs of a children’s
multi-pack into the natural foods channel
• Competitive advantage
– Strong relationship with natural foods
retailers ex: Whole Foods and Wild Oats.
– Sustainable competitive advantage
– Main profit comes from natural foods
• Power and conflict
– If stays with natural foods stores, there will
be no conflict.
– Option 1 and 2 could potentially create
conflict between the firm and natural foods
• Brand Image
– Organic yogurt
– Shoppers at natural foods stores earn more
income, more educated and not price
– Natural foods store shoppers are more
concern on health issue, not price.
– If expand to supermarket, its brand image
will be doubted by current consumers.
• Financial and Risk Analysis
– No extra slotting fees and advertising expense
– Option 1 and 2 creates more expense
– Lowest risk and cost if choose option 3
– Will not have to compete with two main
competitors in supermarket channel which are
Dannon and Yoplait
Year 2000 Financial Forecast
Advertising Cost is abundance,
Natureview would have paid
4,800,000 on ads by year 2001
The slotting fee is too much, Nature
view would have to enter 64
No SG&A, Broker Fee, and Slotting