2. Founded in 1989
Yogurt manufacturer
Strong brand
Differentiators
1. Long shelf life
2. Natural ingredients
3. Reputation for high
quality and good taste
3. SUCCESS STORIES
Natural yogurt (organic) and special
process
Affordable according to it’s channel
Average shelf life 50 days
Added flavors to both 8-ounce (oz.) and
32-oz. cup sizes of yogurt
Developed strong relationships with
leading natural foods retailers
4. Raise revenue to $20
million by the end of 2001.
Whether or not to expand
into supermarkets?
Ultimate goal is to maintain
brand image.
GOALS
5. OPTION 1
Bring in the 6 SKUs
of the 8-oz. size
Expand in Northeast
and West
supermarket region
RISKS
Advertising plan
costs $1.2 million per
region per year
Direct competition
with national yogurt
brands
SG&A expenses
would increase
7. OPTION 2
Expand
supermarket with 4
SKUs of 32oz yogurt
Strong competitive
advantage: longer
shelf life
Promotional
expenses will be
lower
RISKS
It would increase
SG&A expense by
$160,000
New users may
won’t purchase
large 32oz quantity
of product
Hiring salesperson
with experience for
sophisticated
supermarket
channel
9. OPTION 3
To introduce two SKUs of a
children’s multi-pack into
the channel
It would yield the strongest
profit contribution of all the
strategies
Financially attractive and
high margins
RISKS
Ignores the opportunity in
the growing supermarket
channel
Can not achieve the target
objective
12. Option 1 Recommended
8 –oz yogurt is the highest demand and
have the largest dollar share
Reach beyond the target objective of 20
million revenue by end of 2001
A bit risky but in a long term will generate
revenues of 200%
Creates a strong long term financial
situation
Will have the first mover advantages of
natural product to enter supermarket
13. Hope you liked it!
Feel free to shoot me a text with suggestions or well,
just say hello :P
Rishav Kar
www.linkedin.com/in/rishav-kar-703b15112?trk=hp-identity-name
Special thanks to Prof. Sameer Mathur, IIML for his guidance.
www.linkedin.com/in/sameermathur