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Natureview ppt done

  1. 1. Bhirakarn 5180372 Patdanai 5180676 Taveechai 5280388 Nuttanun 5280514 Thanawat 5280542
  2. 2. - 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.
  3. 3. Goal defense -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 company.
  4. 4. “Natureview should expand their business into the supermarket channel or not”
  5. 5. Current situation - 2 main channels for Natureview to sell its products Supermarket and Natural food stores - In the proportion of 97% to supermarket and 3% to natural food stores. Problem Defense
  6. 6. “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 Natureview. - Conflict (Final price) Problem Defense
  7. 7. Option 3: Introducing two SKUs of a children’s multi-pack into the natural foods channel
  8. 8. Solution Defense • Competitive advantage – Strong relationship with natural foods retailers ex: Whole Foods and Wild Oats. – Sustainable competitive advantage – Main profit comes from natural foods channel.
  9. 9. • 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 channel. Solution Defense
  10. 10. • Brand Image – Organic yogurt – Shoppers at natural foods stores earn more income, more educated and not price sensitive. – 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. Solution Defense
  11. 11. • 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 Solution Defense
  12. 12. Financial Statement Year 2000 Financial Forecast
  13. 13. Option 1 Advertising Cost is abundance, Natureview would have paid 4,800,000 on ads by year 2001
  14. 14. Option 2 The slotting fee is too much, Nature view would have to enter 64 supermarkets
  15. 15. Option 3 No SG&A, Broker Fee, and Slotting Fee 
  16. 16. Solution Financial Forecast 2001

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