Natureview Farm Case Analysis

1. Natureview Farm
Harvard Business School Case

2. What does the
company do?
Manufacture and market refrigerated cup
yogurt

3. Success Factors

4. Success Factors
High quality and great taste
Low cost marketing tactics
National distribution within
natural foods channel
Strong relationships with
distributors

5. Differentiating Factors

6. Differentiating Factors
Natural Ingredients
Flavourful texture & great taste
Long shelf life compared to
other competitors

7. Current Market
Share (1999)
Natureview Farm Brown Cow
Horizon Organic White wave
Others
Market Leaders with
24% Market Share
Natural Foods Channel

8. Current Situation

9. TIMELINE
1989 1996 1997 2000 2001
Company founded
Revenue ~$100K
Hired Jim Wagner
as CFO
Wagner arranged
for infusion with VC
for funds
VC wants to cash
out
1999
Revenue
$13Million
Increase
revenue to
$20 million

10. Main Issue
Make strategic marketing decisions to grow
revenues to $20 Million from their current
$13 Million before the end of the 2001

11. The Protagonist
Christine Walker - Vice president of Marketing

12. Relevant Factors For
Decision Making

13. Customers
Natural Food Consumers
Women(both having and not
having kids)
High Income & More educated

14. Competitors
Natural foods channel - Horizon
Organic, Brown Cow
Supermarket channel - Dannon ,
Yoplait

15. Medium Of Distribution
Distributors
Wholesalers
Retailers

16. Other Factors
58% of yogurt consumers would
buy Organic if the price is less
expensive
Rise of Organic food consumers

17. Consider The Four P’s
Product
Size
Flavour
Natural
Price
Supermarket
channel
Natural foods
channel
Promotion
Distributor
level
Whole sale
level
Place
Retailers, Drug
store, Whole
sale stores
Supermarket

18. Important Factors
8 oz cups
Children multipack
32 oz cups
Others
Northeast Midwest
Southeast West
Market share by packing content Market share by region

19. Considering Options

20. Options
Option 1
Expand in 2
supermarket
regions - Northeast
and west
Introduce 6 SKUs
of 8oz products in
one or two
supermarkets
Option 2
Expand in
supermarket
nationally
Introduce 4
SKUs of 32oz
products
Option 3
Stay in natural
foods channel
Introduce 2
SKUs of
children’s
multipack
products

21. Deciding Strategy
Supermarket channel
8 oz cups - $0.74
4 oz multipack - $2.85
32 oz cups - $2.70
8 oz cups - $0.88
4 oz multipack - $3.35
32 oz cups - $3.19
Natural foods channel

22. Financial Analysis

23. Current Income
Statement (1999)

24. Estimated Revenues
Income statement with option 1 Income statement with option 3Income statement with option 2

25. Recommendation
Option 3
Low Risk
Wide variety of known variables
No Change In Entire Marketing
strategy

26. Thank You!