Presentation of case analysis on Natureview Farm - Harvard Business school

1. CASE STUDY
NATUREVIEW FARM

2. Natureview - overview
 Founded and manufactured in 1989 at Cabot,
Vermont
 Manufacturers and marketers of refrigerated cup
yogurt
 Expanded to 12 yogurt flavours and multipack yogurt
for children

3. UniqueSelling Point
• Natural Ingredients
• Special process
• High quality and taste
• 50 days longer shelf life
SuccessFactors
• Strong brand
• Effective low cost guerrilla
marketing
• National Distribution in
natural food channels
• Strong relationship with
distributors

4. Current Situation
To employ measures to increase the
revenue from $13 Million (2000) to
$20 Million (2001)

5. Distribution CHANNEL

6. QUESTIONS

7. DECISION CRITERIA
• Meet the objectives of revenue generation
• Maintain the existing relationships
• Evaluate additional costs

8. DECISION OPTIONS

9. OPTION 1
Expand 6 SKUs of 8 oz cups into 1
or 2 selected supermarkets

10. Option 1 - benefits
• Great upside potential
• 8 oz cups were largest source of revenue
generation
• Modest growth rate of 3%

11. Option 1 - risks
• Higher slotting costs
• Higher competition in 8 oz cup segment (74%)
• Existing sales team inefficient for supermarket
channel
• Fear of trust loss in natural food stores
• High advertising trade promotions

12. OPTION 2
Expand 4 SKUs of 32 oz cups
nationally in supermarkets

13. Option 2 - benefits
• Competitive advantage because of longer shelf life
• Lower marketing, advertising, SG&A cost increments
• Trade promotions only twice a year
• Higher profit margin than 8 oz cups

14. Option 2 - risks
• Inefficiency of existing sales team
• Increased costs for advertising, marketing and trade
promotions (But less than option 1)
• Need to hire additional sales personnel

15. OPTION 3
Introduce 2 SKUs of children’s multi-
pack in the natural foods channel

16. Option 3 - benefits
• Effective sales team for natural foods channel
• Established leader in the market
• Existing channel relationships strengthens
• No additional SG&A costs
• 7 times faster growth than in supermarket channel

17. Option 3 - risks
• Lower revenue generation (compared to option 1
and 2)
• Prediction of increasing demand of natural food
retailers in par with super market retailers
• Fear of losing opportunity for expansion and revenue
increase

18. DECISION TO BE TAKEN
OPTION 2

19. ANALYSIS FOR DECISION
• Revenue generation objective of $20 million i.e. $7
million increase from $13 million is achieved
• Generates $1.613 million higher than expected
increase in revenue
• Natural food stores will be less deterred as 32 oz
occupied a smaller market share

20. SUMMARY
Overview
USP Success Factors
Current Situation
Distribution Channel
Decision Criteria
Decision Options
Benefits and Risks
Analysis

21. THANK YOU

22. DISCLAIMER
Created by Dheepika C,
ResPro Labs Chennai
during Marketing
Internship under Prof.
Sameer Mathur, IIM
Lucknow