Recommended
More Related Content
What's hot
What's hot (19)
Similar to Natureview farm
Similar to Natureview farm (20)
Recently uploaded
Recently uploaded (20)
Natureview farm
- 1. NATUREVIEW FARM Analysis of the Harvard Business ReviewCase
- 3. What is Natureview farm? Diary Company Founded in the year 1989 which manufactures yogurt under the name of “Natureview Farm”. TheYogurt recipe uses natural ingredients and a special process which gives the yoghurt its smooth and creamy texture. Current Revenue (as of 1999) is $13,000,000
- 4. KEY PLAYERS
- 5. CHRISTINEWALKER Vice President of Marketing JIMWAGNER CFO BARRY LANDERS CEO WALTER BELLINI Vice President of Sales JACK GOTTILEB Vice President of Operations KELLY RILEY Assistant Marketing Director
- 7. ■ 1997: Natureview arranges for an equity infusion from a venture capital. ■ 1999:The venture capital firm now needed to cash out its investments from Natureview. Natureview management have to find another investor or position itself for acquisition. Increasing revenues is critical to attain the highest possible valuation.
- 8. TASK AT HAND
- 9. To increase the revenue from $13million to $20million by the end of 2001 $13 million $20 million
- 10. Natureview’s Product Line ■ 8 oz. yogurt cup ■ 32 oz. yogurt pack ■ 4 oz. yogurt cups
- 12. SALES DISTRIBUTION POSSIBILITIES SUPERMARKET CHANNEL NATURAL FOOD STORE CHANNELOR
- 14. THE NATURAL FOOD STORE CHANNEL
- 16. OPTION 1 Suggested by Walter Bellini
- 17. To expand six SKUs of the 8-oz. product line into one or two supermarket regions.
- 18. To remember…… ■ 8-ounce cups- largest dollar and unit share ■ Other Natural food brands have expanded their distribution to the supermarket channel and have increased revenues ■ None of the major natural yogurt brands have entered the supermarket channel . ■ Supermarkets only authorize one organic yogurt brand.
- 19. OPTION 2 Suggested by: Jack Gottileb
- 20. To expand four SKUs of the 32-oz size nationally in the supermarket channel
- 21. To remember…… ■ 32-oz cups generated an above-average gross profit margin. ■ Fewer competitive offerings in this size.( 45% share) ■ Although slotting expenses will be higher, marketing expenses will be lower.
- 22. OPTION 3 Suggested by: Kelly Riley
- 23. To introduce two SKU’s of a children’s multipack unit into the natural foods channel
- 24. To remember…… ■ The company has strong relationships with leading natural foods channel retailers ■ Riley feels that the company does not have the resources to sell to and through supermarkets ■ Attractive financial potential ■ Natural foods channel is growing almost seven times faster than the supermarket channel.
- 26. From Exhibit 1, we can infer: The net income is $260,000 Therefore proceeding with option 1 would not be wise since the advertising investment required is not feasible by the company.
- 27. The retail prices in the natural foods channel is higher compared to the supermarket channel, especially the 4-oz. multipack. Keeping in mind the manufacturing costs, Natural food channels can provide more revenue to the company.
- 28. It can be observed from exhibit 5 that Natureview farm does not have a market share in the Supermarket channel but has a 24% marketshare in the Natural foods division. It is risky to enter the supermarket channel as it is a herculean task to create a market share in a short span and increase sales.
- 29. THE BEST OPTION INTHE CURRENT SCENARIO WOULD BE: OPTION #3
- 30. REASON??
- 31. 1. The company has a strong Brand Equity in the Natural Foods Channel.
- 32. Entering a new channel may be risky since it involves creating a market share.
- 33. 2. Investment is less.
- 34. Natureview will not incur any additional SG&A costs to introduce the multipack. Cost of Advertising is also less.
- 35. 3. Higher retail Price
- 36. Retail prices are higher in the natural foods channel. Therefore it does not affect the Brand Positioning.
- 37. Current situation of Natureview Farms. Options it has to proceed The best possible option. LET’S SUMMARIZE
- 39. DISCLAIMER This presentation was created by Bharath Ravindranath, MIT Manipal during the Marketing Internship under Prof.Sameer Mathur, IIM Lucknow.