3. Company Background
1989
• Company was founded in Vermont.
• Manufactured and marketed yogurt.
1999
• Company profits grew to $13million.
• Fruit on the bottom yogurt.
2000
• Expand to multi pack yogurt(for children).
• Expand to 12 flavors for 8-oz. packing.
• Developed strong relation with natural food
retailer chains.
4. PERSON OF INTEREST
• Vice President : Christine Walker
• Chief Financial Officer : Jim Wagner
• Chief Executive Officer : Barry Landers
• Vice President, Sales : Walter Bellini
• Vice Presi., Operations : Jack Gottlieb
• Asst. Marketing Director : Kelly Riley
6. PROGRESS
Flavored yogurt
production led to
brand extension.
New equipments
were needed
eventually.
National
distribution
and shared
leadership in
natural foods
channel.
Aided by low
cost “guerilla
marketing”
tactics, they
grew int $13
million company
in 2000.
7. Strengths:
1. Strong brand
2.Low cost
3.No artificial
thickeners
4. Longer shelf
life
Weakness:
1. No alternative financing
available
2. doubts sales
team ability
Opportunity:
Strong relation
with leading nature
food retailers.
Threats:
1. Accumulation of cash
by horizon from IPO.
2. Being dropped out of
traditional channel
NatureView
Farm
ANALYSIS
8. I
S
S
U
E
VC needed to
cash out of its
investment.
Need to make
company revenue
$20 million before
2001 end.
They need another
investor or position
itself for acquisition
hence, need highest
possible valuation.
9. THE BIG QUESTION ..!!!
Should
NatureView
expand Into
SUPERMARKET
Channel?
10. THE BIG QUESTION ..!!!
How to RETAIN its
traditional channel
Retailers,
Customers and
Suppliers if it enters
Supermarket
Channel..??
13. • Increase product sale.
• Increase product line and quality.
• Adopt more efficient techniques to
maximize revenue.
• Increase shelf life further to expand market
to farther places.
HOW to reach
$20 million Mark…???
14. INCREASE MANUFACTURING
ADD MORE NUMBER OF PACKS IN A CASE
ENTER SUPERMARKET CHANNEL
EXPLORE OTHER SUCH CHANNELS
INTRODUCE MORE FLAVORS
SALES BOOSTING STRATEGIES
25. PROS
8-oz have highest incremental demand
High potential to increase revenue.
First mover as organic yogurt brand
to enter supermarket channel.
26. CONS
High risk and high cost (marketing)
Require quarterly trade promotions.
Advertising will cost $1.2 million per region per year.
SG&A expenses increase by $320,000 per annum.
Need to pay one time slotting fee.
28. PROS
Generate higher profit margins than 8-
oz. size.
Strong competitive advantage : longer
shelf life
Lower promotion expenses.
29. CONS
Doubt if new user will accept the brand via multi use
size.
Doubt on sales team capability to achieve full nation
distribution in just 12 months.
Needs to hire sales personnel and develop relations with
supermarket brokers.
The supermarket expansion will increase the SG&A
expense by $160,000.
31. PROS
Sales team was confident that they could achieve
distribution for two SKUs.
The financial potential was very attractive.
It would yield the strongest profit contribution among
all the proposal under consideration.
The natural foods channel was growing almost seven
times faster than the supermarket channel.
32. CONS
There were many potential conflicts
and other uncertain factors that the
manager could not determine.
Cannot achieve the target objective of
NatureView farm.
38. I.
• As per cost analysis , option 3 seems to be the best
option.
II.
• Taking other factors into consideration like
distributor , retailer etc, option 3 has no risk of loss.
III.
• However, sales team capabilities remain a big
question In this option.
IV.
• Still the overall risk factors are minimum in this
case.
40. • What is NatureView?
• Brief company Background and key personnel
• Early days and progress of company
• Major issues addressed in the case
• How to increase sales and revenue
• Survey exhibits & factors affecting yogurt
choice
• Supermarket Channels vs. Natural Channels
• Analysis of 3 proposed options
• Difference between options
• Inference
