This is a case analysis of a Harvard Business Review. The slide was made during a marketing internship under the guidance of Prof. Sameer Mathur, IIM Lucknow.

1. Natureview Farm inc.
Case Analysis.

2. Milestones
1989 1999 2000
1989
The company was
established.
1989
First yogurt product was in
two product size. 8 oz and
32 oz with vanilla and plain
flavour.
1989-1999
High shelf life with a pure
natural and organic background.
1999
New taste techniques were
introduced and increased revenue by
cool, low-cost guerilla technique.
Revenue grew from
$100,000 to $13m
New packs and new flavours with
strong bond with natural goods
retailers.
2000

3. Quality That Attracts.
Natural Taste
Packaging
style
Natural
Ingredients
Organic
Flavour
High
Shelf life
Quality

4. Some Stats from
last journey

5. 100% organic.
Natural ingredients and
process.
Great Taste.
Anything Else?

6. Yogurt Market
share by Region
Limited Edition - $189

7. Yogurt Market Share By
Packaging Segment

8. Revenues 2000
In this year.
Added new packages
and new flavours.

9. Yogurt Market
Share by Brand

10. Yogurt Distribution
Channel

11. Issues?
The company should expand its
branches in supermarket
channel or not?

12. Future of their core structure?

13. Channel Transition from manufacturer to
Customer 15%
27%
7%
9%
15%

14. Income Statement of 1999

15. Production cost and retail price through different channels
Natural Food
Channel
Supermarket
Channel
Manufacturing Cost
8 oz. pack $0.88 $0.74 $0.31
32 oz. pack $3.19 $2.70 $0.99
4 oz. multipacks $3.35 $2.85 $1.15

16. Sales Projection For Natureview’s Strategic Options

17. SWOT Analysis

18. Options available for next
desicion
Option 1
Expand in northeast and west
Supermarket region and introduce
the 6 SKUs of the 8 oz. size
Option 2
Expand the supermarket channel on
the national stage and introduce 4
SKUs of the 32 oz. size
Option 3
Maintain the main track of natural
food chain and introduce 2
children’s multipack.

19. Option 1
Expand 6 SKUs of the 8 oz. in the western and
northeastern region in supermarket channel
● High demand for 8 oz
pack
● First organic yogurt
brand to move to
supermarket channel
● Highly profitable.
● One time slotting fee
● More cost in
advertising, $1.2m
per year per region
● Trade promotions.
● High marketing cost
and risk, SG&A
expenses are added
$320,000 annually
Pros. Cons.

20. Probable
Income
Statement
$o.74*35,000,000
$0.31*35,000,000

21. Option 2
Expand 4 SKUs of the 32 oz. in the national supermarket
channel.
● Lower promotion
expenses
● Longer shelf life, so
strong competitive
advantage.
● Higher profit margin
than 8 oz. pack
● Lack of support
provided by retailers.
● Hiring of sales
personnel will increase
the expenses and
trouble for the national
distribution of product
● The 32 oz expansion
option would increase
SG&A expense by
$160,000
Pros. Cons.

22. Probable
Income
Statement
$2.70 * 5,500,000
$0.99 * 5,500,000

23. Option 2
Introduce 2 SKUs of a children multipack into the natural
foods channel
● It is easy to achieve a goal
of 2 SKUs distribution.
● The growth rate is higher
for the case of natural
foods channel.than
supermarket.
● Can result in strong profit
contribution without
sffectiong its previous
startegies
● This strategy may not
achieve the goal of
$20m in the end of
2001.
● Other uncertain factor
may be present.
Pros. Cons.

24. Probable
Income
statement
$3.35 * 1,800,000
$1.15 * 1,800,000

25. Which Option to choose?
What is the future of the
company?

26. In my opinion,
option 3 is best as a
strategy after
looking into its past
record.

27. Why Option 3?
● It has strong
relationship with the
natural food retailers
as their main profit
comes from this channel
only.
● Natural food stores are
more concerned about
the material, they are
not price sensitive,
and they are more
concerned about health
issues thus brand image
is also maintained.

28. Why option 3?
● The company is the king
of business in natural
food channel and can
maintain the lead
without any worry but
they can experience a
burly competition from
well- known yogurt
company.
● They will not face
financial risk in this
option. Other two can
lead to a huge expenses
cost.

29. Production cost and retail price through different channels
Natural Food
Channel
Supermarket
Channel
Manufacturing Cost
Revenue $25,900,000 $14,850,000 $6,030,000
Unit Sales 35,000,000 5,500,000 1,800,000
COGS $10,850,000 $5,445,000 $2,070,000
Gross Profit $15,050,000 $9,405,000 $3,960,000
Expenses $9,116,000 $7,530,000 $641,950
Total Income $5,934,000 $1,875,000 $3,318,050
Total Revenue $(13,000,000+
25,900,000+
5,934,000) =
$44,834,000
$(13,000,000 +
$14,850,000 +
$1,875,000) =
$29,725,000
$(13,000,000+
$6,030,000+
$3,318,050)=
$22,348,050

30. Some Other Criteria to look upon

31. Thus, it can be said
to play safe with
steady growth and
According to your
special area of Lead
So, by option 3, the company is acquiring low risk with a revenue
above the goal $22,348,050 with a steady growth and also
maintaining the brand image and travelling along its leading path.

32. Disclaimer
Created by Tanumoy Ghosh, IIEST Shibpur
During a marketing internship under the guidance of
Prof. Sameer Mathur, IIM Lucknow