This presentation was created during an internship under Prof. Sameer Mathur, IIM Lucknow

1. NatureView Farm, Inc.

2. About

3. • Yogurt manufacturer.
• Founded in 1989 in Cabot, Vermont.
• Product has a long shelf life.

4. Objective:
• Make decisions to grow revenues to $20,000,000 from current $13,000,000
before the end of the 2001.
• Increasing revenues was critical in order to attain the highest possible
valuation for the company.

5. Key Team:
• Christine Walker, vice president of marketing
• Jim Wagner, chief financial officer (CFO)
• (CEO) Barry Lander
• Walter Bellini, vice president of sales.
• Jack Gottlieb, vice president of operations
• Kelly Riley, the assistant marketing director

6. Competitors:
• Dannon
• Yoplait
• Columbo
• Breyers
• Horizon Organic
• Brown Cow

7. In numbers

11. In numbers..

12. ISSUES..
• VC firm now needed to cash out of its investment in Natureview
• Natureview management had to find another investor or position itself for
acquisition.
• Analyse the step to enter Supermarkets, its effect on natural foods
stores.
• Analysis of the 3 options

24. Analysing 3 Options..
Option 1 Option 2 Option 3
By Walter Bellini By Jack Gottlieb By Kelly Riley
Expand the top 6 SKUs out of
the 8 SKUs in the 8 Oz. line
Expand 4 SKUs of the 32 oz.
size.
Expand via 2 children’s multipack
Expand in top 1 or 2
Supermarkets
Expand nationally in large
number of Supermarkets
Stay in natural food channel.

27. 8 oz. Size represents the largest dollar.
High Revenue Potential

29. Higher risks and costs
SG&A expenses - increase -
$320,000 /year ($200,000 +
sales staff managing
supermarket brokers in the 2
regions; $120,000 - towards
additional marketing staff

32. 32-oz. cups - smaller unit & dollar share of
the yogurt market but generate above-
average gross profit margin for Natureview
(43.6% vs. 36.0% for the 8-oz. line)
For a 32-oz. expansion,
marketing expenses
significantly lower —only
10% of cost for 8-oz. size in
each region i.e. $120,000 /
region per year

34. Risk whether new users would readily
“enter the brand” via a multi- use size
Will need to hire sales
personnel – should have
experience selling to the
more sophisticated
supermarket channel

37. Introduce 2 SKUs of a children’s multi-pack
into the natural foods channel
Natural foods channel growing
almost 7 X faster than
supermarket channel

42. SKU costs
Option 1: YES
Option 2: YES
Option 3: NO
Advertising Costs:
Option 1 > Option 3 > Option 2
By analysing the 3 options we see that the safest option is OPTION 3
because:
It has less risk associated
The brand remains true to its original channels
Is more coherent with CEO’s admonition
Will meet the target of > $20,000,000 in time.

43. This Presentation was created by ANA
AGRAWAL , IIT Bombay during an inte
under Prof. Sameer Mathur, IIM Luckno