Natureview Farm produces yogurt and has seen revenue grow from $100,000 to $13 million in 10 years. It must now choose how to increase revenues by at least 50% to $20 million by the end of 2001. Three options are presented: 1) Expanding the popular 8 oz cups into supermarkets, requiring substantial marketing spending; 2) Expanding the 32 oz size nationally with lower costs; or 3) Introducing a children's multipack into natural food stores to build relations without extra expenses. Each option is analyzed in terms of expenses, potential revenues, and strategy to determine the best approach to significant growth.

1. Natureview Farm
(Case study)
Harvard Business school case

2. Natureview Farm early years
Founded in 1989 in Cabot,Vermont Natureview
farm manufactures refrigerated cup yoghurt.
Earlier it only had 8-ounce(oz) and 32-ounce(oz)
cup sizes of yoghurt in only two flavours-Plain and
vanilla.
But in 10 years,it's revenue has grown from
$100,000 to $13million.
But HOW???

4. Emphasis on natural ingredients and it's strong
reputation for high quality and great taste

5. What is Natureview Farm
Who is Christine Walker

6. Who are the players?
Christine Walker:Vice president of marketing
Jim Wagner: Chief financial officer
Barry Landers:Chief Executive Officer
Walter Bellini:Vice president of sales
Jack Gottilieb:Vice president of operations
Kelly Riley:Assistant marketing director

7. Finding a path to grow revenues to $20 million
before the end of 2001.
But why do they need to do so?

8. To attain the highest possible valuation for the
company

9. To analyse all the options suggested and choose
the most optimal option for increasing the
revenues by atleast 50% by the end of 2001.

10. “......We owe it to our customers, our suppliers
and our distribution partners to make the right
strategic choices regarding the revenue
growth objective.”
-Barry Landers

11. What makes it better than major
other U.S yogurt brands?
1)All natural ingredients.
2)Average self life is 50 days compared to other
brands which have 30 days.

12. GREAT!!!!
How it benefits the firm?

13. It reduces the shipping time and saves money by
using Guerilla marketing

14. Let's see it's present situation
It serves 12 flavours in 80-oz (86% revenue)
It serves 4 flavours in 32-oz (14% revenue)

15. How would Natural foods channel react on
seeing Natureview's yoghurt at the
supermarket down the street at prices at least
15% lower?Would price concessions follow?

16. Let's study the three options
(1/3)By Walter Bellini:expanding six SKUs of the
8 oz product line(th ebest ones) into one or two
selected supermarket regions

17. Key points based on his
arguments:
By 2000,86% revenue was generated by 8-oz
cups.8-oz and 6-oz cups were most popular
presenting 74% total category.
Profit of many firms increased by 200% by
expanding into supermarket channel.
There were rumors that one of it's competitor in
natureview farm wants to expand into
supermarket channel.

18. High level of competitive trade promotion and
marketing spending.
Slotting fee:$ 60,000 per retail chain.

19. Comprehensive advertising :$1.2 billion
per region
administrative expenses (inc) :$320,000
SG &A (inc) :$200,000
additional marketing staff :$120,000

20. Let's study the three options
(2/3)By Jack Gottlieb:expanding four SKUs of
the 32 oz size nationally

21. Key points based on his
arguments:
32-oz cups generates an above average gross
profit margin .
45% share of this size.
Low marketing expenses.

22. Would lauching 32-oz be less noticed by the
competitors?Could it acquaint supermarket
customers with the brand before Natureview
pursued the 8-oz size in the supermarket
channel?

23. Marketing expenses : $12,000 per
region per year
SG & A (increase): $160000

24. Let's study the three options
(3/3)By Kelly Riley :introducing 2 SKUs of
children's multipack into Natural foods channel

25. Key points based on his
arguments:
1)Build stronger relations with Natural foods
channel
2)Effective selling
3)Perfect positioning
4)Attractive financial potential
5)Will incur no additional SG &A cost

26. 1)Less dollar share
2)High demand of retailers

27. Marketing expenses: $250,000
Complimentary cases: $5,00,000(2.5% 0f
product line manufacture sale)
Estimated gross profit: 37.6%

28. Disclaimer
This presentation is made by Sonali Rawat from
J.S.S Noida under my marketing internship by
prof.Sameer Mathur.