3. COMPANY HISTORY :
Entered the market in the year 1989
JIM WANGLER the company CFO Hired in 1996 developed financial controls which
brought steady profit to company
In 1997 company arranged funds from a VC firm to fund strategic investments
4.
5. 1.Average shelf life of 50 days compared to competitors 30 days
2.Cows untreated with RGBH and artificial and artificial growth Hormones
3.Due to larger shelf life there was less requirements of plants as larger time required to
deliver the product to shelf from a far off plant can be afforded.
6. SUPERMARKETS NATURAL FOOD
STORES
MARKET SHARE 97% 3%
GROWTH RATE 3% pa 20% pa
SHOPPER’S PROFILE
More Educated
High income group
Older
46% of organic product
market
29% of organic product
market
15. ADVISOR: Walter Bellini (VP SALES)
Expand 6 SKU (Stock Keeping Units) of 8oz
Product Line into one or two selected
Supermarkets
•6 SKUs chosen are best selling of 8oz Line
•Provides enough Balance between having
enough cups on shelf to provide good shelf
presence while not incurring high slotting
expense
•8 oz cups are the largest selling
•Same strategy has been used by
other companies with success and
NV farm is in better position to
exploit the idea
•Urgency due to rumors that
another rival is about to expand
in supermarket and there is scope
for only one expansion there.
16. •Higher Risk and cost due to high
competition
•Advertisement: $1.2 million
•SG&A for sales staff:$200000
•SG&A for Marketing: $120000
•Requirement of One time slotting
fee
•1.5% Market Share by the end
of 1st year if the broker could
exploit their contact well with
top 11 chain of North East and
top 9 of West.
18. ADVISOR: Jack Gottileb ,VP Operations
Expand 4 SKUs of 32oz size nationally
REASONS:
•Though smaller Market share but generates
above average profit for NV farm
•Few competition due to longer shelf life .It is
projected that company could sell 5.5 million
units in 1st year ,it is required to expand in 64
supermarket chain.
•People may not enter the
brand with 32oz cups
•Sales team may fail to
achieve nationwide
distribution in 12months
•SG&A increases by
$160000
•Lack of
Competition
20. Advisor: Kelly Riely (Assistant Marketing Director)
Expand 2 SKUs of Children Multipack in Natural
Food Channels
•Good relations with Natural Food Retailers could be
exploited
•There are chances of damaging these relations in case
of a supermarket expansion
•Lack of sufficient skill set to go ahead with
supermarket expansion
•Sales team was confident of achieving distribution of
2SKUs in Limited time
•Attractive financial potential
23. Go For Option 3:
Reasons:
1. Does not damage the relations with Natural Chain Partners
2. Net Profit, though lower than the other option remains a lucrative one
and completes the target
3. The other options can be implemented a few years Later after proper
consultation with partners and sufficient planning
4. Does not put undue pressure on the sales and marketing team
5. No Broker Fee involved
6. No need of employing a new sales and marketing team
7. A rather risk free option.
24. DISCLAIMER
• This presentation has been created by Nalin
Subham, IIT ISM Dhanbad during a Marketing
Internship by Prof.Sameer Mathur,IIM
Lucknow.
