8. Concentrated: 4 competitors control over
50% share.
Supermarkets: 97% of total sales (3% annual
growth).
Natural Food Stores: 97% of total sales (20%
annual growth).
Factors in purchasing decision: Package
9.
10.
11.
12.
13.
14.
15.
16. Concentrated: 8 –oz
cups represent largest
dollar & unit share of
market.
Supermarkets fear
losing market share to
natural food competitors.
First-mover advantage.
They may authorize
only 1 organic yogurt
manufacturer.
Highest level of
marketing expenditure.
Possible channel
conflict
Promotion of lower
price at supermarkets
may hurt the brand.
No experience in
supermarket chain.
Balance between shelf
presence & slotting
17.
18. 32-oz cup generate
above average gross
profit margin.
Fewer competition in
this size.
Long shelf life of
product.
Lower promotional
expense.
Higher slotting fees.
National distribution
challenging within 12
hours.
No guarantee of
growth.
Possible channel
conflict.
Promotion & lower
price may hurt the brand.
19.
20. Strong relation with
leading natural food
chain retailers.
More time to prepare the
company to move into
supermarkets.
Company’s positioning
ideal for given proposal.
Financially attractive.
Low sales & marketing
expenses.
Fast growth of natural
foods channel will lead
demands equal to those
of supermarkets.
Miss opportunity to
enter supermarkets
before competitors.
21.
22.
23.
24. Financials
Only a regional distribution instead
of national, which makes it easier to
implement.
Higher slotting fee but more
visibility of the product.
Competitors moving into
supermarkets, te first mover