2. Natureview Farms
• Small scale Yogurt manufacturer
• Annual Revenue: $13 MILLION
• Completely Natural Ingredients (USP)
3.
4. Barry Landers: CEO
Christine Walker:
VP, Marketing
Kelly Riley,
Asst. Marketing
Director
Jack Gottlieb
VP,Operations
Walter
Bellini:VP,
Sales
5.
6. • Natureview seeks to increase their revenue
from $13 Million(as of 1999) to $20 Million,
by the end of 2001
• Their VC backers now needed to cash out
of its investment in Natureview.
• The Natureview Management is faced with
the task of MAXIMISING REVENUE, so as
to attain the highest possible evaluation,
when FINDING a NEW INVESTOR
13. HOW DO WE ACHIEVE THIS INCREASE
IN REVENUE? WILL MOVING INTO THE
SUPERMARKET CHANNELS HELP US?
14. SWOT ANALYSIS
• Strengths • Weaknesses
• Long product shelf life
• Reputation of high quality, taste and
natural ingredients
• Strong relationship with nature
store retailers
• Small manufacture, low funds and
revenue
• Relies on brokers that may not be
adequate for supermarket channel
• Current marketing strategy based
only on natural foods channel
• Opportunities • Threats
• Organic food market expected to
grow to $13.3
• billion in 2003
• Nature store channel sales up 20%
• 12.5% growth in 4oz multipack
• Increase in consumer interest in
organic foods
• Accumulation of funds by Horizon,
from their IPO
• Losing sales via their traditional
channels
• Souring of relationship with natural
foods distributors/retailers
16. Pricing Comparison by Channel
Product Manufacturing
Costs
Supermarket
Retail price
Natural Foods
Retail Price
8 oz cup $0.31 $0.74 $0.88
32 oz cup $0.99 $2.70 $3.19
4 oz cup
multipack
$1.15 $2.85 $3.35
18. OPTION
1
Expand into
the Northeast
and West
markets
Introduce 6
SKUs of 80z
yogurt
OPTION
2
Expand
NATIONALLY
Intoduce 4
SKUs of 32
oz Yogurt
OPTION
3
Stay in
Natural
Foods
Channel
Introduce 2
SKUs of
Children’s
multipack
19. Option 1: Expanding into the
Supermarket Channel via 6 8oz
SKUs
Positives
• Feasible, 8-oz is the best
selling cup size
• Open to MUCH LARGER
MARKET
• Revenue Increase is
Certain
• First Mover advantages
Negatives
• High risk, high costs
• Huge marketing expense
• Quarterly promotions needed
• Broker relationship in new
channel may not sufficient
• Growth might be to quick, to be
sustainable
• Highly noticeable by
competition
20. Option 2: Introduce 4 SKUs of
32oz. Nationally
Positives
• Above avg Gross Profit
Margin(43.6%)
• Less competition
• Long shelf life =advantage
• Fewer promotions
• Less noticed by competition
Negatives
• Still needs sizable marketing
budget
• National distribution setup is
difficult in 1 year
• Hiring employees,SG&A costs
• Possible competition with
Dannon
21. Option 3:2 SKUs of Multi-pack into
Natural Foods channel
Positives
• No negative effect on
relationship with Natural
foods retailers
• Distribution is DEFINITELY
achievable
• Leverage ALL-Natural
ingredients as a
USP(healthy food for kids)
• Decent gross profit
margin:37.6%
• Low sales and marketing
costs
• Remains true to brand
Negatives
• R&D, Operations must
develop the product
25. I WOULD RECOMMEND OPTION 3
Why, You ask?
Target Achieved! (Approximately)
Minimum risk
No detrimental effect on current partners
Strong foothold in the market, which can be
leveraged later
As the CEO wanted, we remain TRUE to our
BRAND, and what it represents.
26. What other factors influenced this
recommendation?
• Natureview does not have the necessary
resources or skill-set to sell effectively to
and through supermarkets.
• Involves least extra costs and earns
substantial revenues with a gross
profitability of 37.6%.
• Sales team and distribution channels are
quite confident about this channel.