NatureView Farm Harvard case review

2. INTRODUCTION TO THE
CASE

3. WHAT IS NATUREVIEW FARM

4. ABOUT THE COMPANY
1989
• Founded and manufactured in Cabot , Vermont
• Use Natural Ingredients with longer average shelf life of 50 days.
1999
• Company revenue growth from $ 1,00,000 to $ 13 million
• Fruit on the bottom yogurt
2000
• Expand to 12 yogurt flavors and multipack yogurts ( for children )

5. WHO ARE THE KEY PEOPLE

6. NATUREVIEW FARM’S EARLY
YEARS AND CURRENT
SITUATION

10. WHAT IS THE PRESENT
SITUATION ?

14. HOW WILL IT INCREASE
REVENUES TO $ 20 MILLION
BY END OF 2001

15. TO INCREASE REVENUES BY 2001
1
• It needs to increase its product sale
2
• Cut down on total costs incurred
3
• Increase efficiency , product life and quality

17. THE REFRIGERATED YOGURT
CATEGORY AND THE YOGURT
CONSUMER

24. THE SALES AND
DISTRIBUTION PROCESS :
SUPERMARKET CHANNEL VS
NATURAL FOOD STORES

25. SUPERMARKET CHANNELS
• Monitor sales trends especially of new products , by region , area and store using
sophisticated scanner technology .
• Relatively streamlined distribution systems allows to maintain lower prices .
• Suppliers -> Large distribution centres -> Chain’s warehouse .
• Markup on each product by intermediates . Typical distributor margin – 15% and
retailer margin – 27% .

26. NATURAL FOOD CHANNEL
• Typically charge higher retail prices for the same product as compared to
supermarkets .
• Distributors deliver products to individual stores , sometimes stock the shelves and
track paperwork .
• Manufacturer ships products -> Wholesaler -> Distributor -> Retailer .
• Intermediates ‘break cases’ Typical natural foods Wholesaler Margin 7% , Distributor
Margin 9% , Retailer Margin 35% .

29. ANALYSIS OF THE SENIOR
MANAGEMENT

30. TEAM’S 3 OPTIONS
Option 1
• This was proposed by
Walter Bellini, Vice
President of Sales
• Expand the 6 SKUs of the
8-oz product line into one
or two selected
supermarket channel
regions
• The 6 SKUs chosen were
the best selling SKUs of
the 8-oz line .
Option 2
• This was proposed by Jack
Gottlieb , Vice President of
Operations.
• Expand 4 SKUs of the 32-
oz size nationally
Option 3
• This was proposed by
Kelly Riley , Assistant
Marketing Director .
• Introduce 2 SKUs of a
children’s multi-pack into
the natural foods channel
.

34. WHICH IS THE BEST
OPTION OF THE THREE ?

38. RECAP

40. THANK YOU

41. DISCLAIMER
• This presentation is created by Arvind Ashok , NIT Trichy , during a Marketing
Internship by Professor Sameer Mathur , IIM Lucknow .