An exclusive case study on marketing strategy of Natureview Farm. Its about company's decision making of which strategy to choose to achieve its target goal of selling yogurt.

1. HG
A home delivery of fresh and healthy options
By Suyash Karkare
Natureview
Farm
Case Study

2. NATUREVIEW FARM
Founded in 1989, Natureview Farm
manufactured and marketed refrigerated
cup yogurt under the Nature View Farm
brand name.
HISTORY

3. NATUREVIEW FARM
1. Strong Brand
2. Low Cost
3. National distribution with natural food channels
4. Strong relationship with distributors
SUCCESS MANTRA

4. NATUREVIEW FARM
1.Natural Ingredients
2.Long Shelf Life
3.Reputation for high quality and good taste
WHAT MAKES IT
DIFFERENT

5. NATUREVIEW FARM
1989 : Founded in Cabot, Vermont with $100,000 revenue
: 8 oz. and 32 oz. in plain and vanilla flavor
1999 : Revenue grew from $100,000 to $13 million
2000 :Expand to 12 yogurt flavors and multi pack yogurt (for
children)
TIMELINE

6. NATUREVIEW FARM
1. VC need to cash out its investments so search for new investor
and possibility of acquisition
2. Need to find a path to grow revenues by over 50% before 2001
3. Whether or not expand to supermarket?
4. How to achieve highest possible valuation of the company?
ISSUES

7. THE 4PS
PRODUCT
1. Natural Yogurt
8 oz. size with 12
flavors
2. 32 oz. size with
4 flavors
Affordable according
to its channel
1.Natural Food
Channel
2.Wholesale Club
3.National Retailer
Channel
4.Drug Store
5.Convinience Store
1.Retail Level
2.Wholesale Level
3.Distributor Level
4.Low Cost Guerilla
MArketing
PRICE PLACE PROMOTION

8. Revenues 2000
*Startedexploringkidmultipack

9. S W O T A N A L Y S I S
S T R E N G T H
W E A K N E S S
T H R E A T S
O P P O R T U N I T Y
Strong brand; low cost; no artificial thickeners;
unique, smooth and creamy texture; longer
shelf life
No alternative financing available; doubt on
sales team's ability; lacks potential of taking
high risks
Strong relationships with leading natural foods
retailers
Accumulation of cash by horizon from IPO; being
dropped out of traditional channel

10. Distribution Channel

11. Market Share By Packaging Segment

12. Market Share By Region

13. Supermarket
Channel
Manufacturer
Distributor
Retailer
Consumer

14. Natural
FoodsChannel
Manufacturer
Natural Foods Wholesaler
Natural Foods Distributor
Retailer
Customer

15. Market Share By Brand
Supermarket Channel Natural Foods Channel

17. OPTIONS
AVAILABLE
OPTION 1 OPTION 2 OPTION 3
1.Expand in northeast
and west supermarket
region
2.Bring in the 6 SKUs
of the 8-oz. size
1.Expand in
supermarket
nationally
2.Bring in the 4 SKUs
of 32-oz size
1.Stay in natural food
channel
2.Introduce 2 children
multipacks

18. Option 1
PROS
8 oz have highest incremental demand
High potential to increase revenue
First mover as organic yogurt brand to
enter into super market channel
CONS
High risk & high cost marketing
Require quarterly trade promotions
Advertising plan would cost $1.2
million per region per year
SG&A expenses increase by $320000
annually
Need to pay one time slotting fee

20. Option 2
PROS
Generate higher profit margin than 8-oz. size
Strong competitive advantage; longer shelf
life
Lower promotion expenses
CONS
Doubt on claim of new users would readily
enter the brand via multi use size
Doubt on sales team ability to achieve full
national distribution in 12 months
Needs to hire sales personnel and establish
relationships with supermarket brokers
The 32-oz. expansion option would
increase SG&A expense by $160000

22. Option 3
PROS
The sales team was confident that they could
achieve distribution for 2 SKUs
Financial potential was very attractive
It would yield the strongest profit
contribution of all the strategies under
consideration
The natural foods channel was growing seven
times faster than the supermarket
CONS
Many potential conflicts and other
uncertain factors that the manager could
not determine
Can not achieve the target objective of
Natureview Farm

25. WHAT TO DO
People are accessing online
travel apps per second in
Australia alone.
250

26. Go for Option 1
Reach beyond the target revenue of $20 million by
end 2001
8-oz. yogurt is the highest demand of market
Can expose to more range of customers in
supermarket
Will have the first mover advantages of natural
product to enter supermarket
A bit risky but in long term will generate revenue of
200%

27. People are accessing online
travel apps per second in
Australia alone.
N N A T U R E V I E W F A R M
T H E
C R E A T E D B Y :
S U Y A S H K A R K A R E
I I T K
M A R K E T I N G M A N A G E M E N T
P R O F . S A M E E R M A T H U R
I I M L U C K N O W
THANK YOU