9. The company has 8-oz ,32-oz cups
of yogurt
• The company also manufactures 4-
oz cups and yogurt packed in tubes
for children
10. SALES was through two dominant
distribution channels – supermarkets and
natural food store
11.
12.
13. CAN THE COMPANY WANT
TO GROW NATUREVIEW
REVENUE TO 20 MILLION BY
THE 2001
14. Option -1
• Prons-
Great upside potential
For super markets hiring these products products in the
stores would attract higher-income, less price
Sensitive customers.
Cons-
High amount of risk
Advertising plan would cost $1.2 million per region per year
15. Option -2
• Prons-
32-oz. cups currently generated an above
average gross profit margin for Natureview
Less competiton
Cons-
High slotting fees
Increase SG&A cost
16. OPTION 3
• PRONS-
Strong relationship with retailers
Low sales and marketing expenses
Cons-
Potential conflicts
Revenue objectives would not be met at the
year end
17. Decision
• Either Option 1 or option 2 can be preferred
• Option 1 is more likely because of the high
returns