The above power point presentation is created by Harsh Kumar during a Marketing Management internship under Professor Sameer Mathur of IIM,Lucknow

2. 1989
• Founded at Cabot, Vermont.
• First entered the 8-oz and 32-oz market with plain and vanilla flavor.
• Used natural ingredients with longer average shelf-life of 50 day.
1999
• Registered a revenue growth from $ 100,000 to $13 million.
• Applied low-cost “guerilla marketing” tactic.
2000
• Expanded to 12 yogurt flavors in 8-oz & 4 flavors in 32-oz.
• Introduced multipack yogurt products and product lines for children.

3. Yogurt is consumed by 40% of the US population. Among those 70% are
women. Organic dairy products are bought by 74% of heavy organic
buyers and 29% of light organic buyers.
For natural food buyers, factors to see when buying yogurt are
ingredients and whether it is organic or not. Factors to check when
deciding which yogurt to purchase are package, size, price, flavor,
freshness, ingredients and whether it was organic or not.
Shoppers at Natural Food Stores are older, educated and have higher
incomes. 46% of organic food consumers bought at supermarkets. 25%
bought at a small health store. 29% at natural foods supermarket

4. 14%
86%
32-oz 8-oz

5. 8%
9%
74%
9%
1. By packaging segment
32-oz cups
children's
multipack
8-oz cups
others
26%
22%25%
27%
2. By region
North-west
Mid-west
South-west
West
15%
33%
24%
23%
5%
3. By brand (super-market
channel)
Private lab
Dannon
Yoplait
Others
Columbo

6. Goal: To attain highest possible valuation in order
to secure new investors or position itself for
acquisition.
Choices for Christine Walker, VP of marketing :
• Option 1: Expansion of 6 SKUs of the 8-oz product line into one or two selected
supermarket channel region(s) as proposed by Walter Bellini, Vice President of
sales.
• Option 2: Expansion of 4 SKUs of the 32-oz size, nationally as proposed by Jack
Gottlieb, Vice President of operations.
• Option 3: Introduction of 2 SKUs of a Children’s Multi-Pack into the Natural Foods
Channel.

7. 1. Great upside potential.
2. Addition of these products
by supermarkets would attract
higher-income customers.
3. Unit volume growth of
organic yogurt at supermarkets
@20% per annum from 2001
to 2006.
4. Offers the highest
incremental demand.
1. Supporting 8-oz cup size
would require quarterly trade
promotions and a meaningful
marketing budget.
2. Advertising plans would cost
~$1.2 million/annum.
3. SG&A expenses would
increase by $320,000 annually.
4. This option creates direct
competition with national
yogurt brands
Expansion of 6 SKU’s of the 8-oz product line into one or two
selected supermarket channel region

8. 1. Higher average gross profit
margin than 8-oz size.
2. Stronger competitive
advantage such as longer shelf
life, lower marketing expenses
etc.
1. Doubt in the sales team’s
ability to achieve full national
distribution in a time frame of
12 months.
2. Need to hire sales personnel
and establishment of
relationships with supermarket
brokers.
3. Increase of SG&A expense
by ~$160,000.
Expansion of 4 SKUs of the 32-oz size, nationally

9. 1. Presence of established
leaders in this channel.
2. Perfect positioning for new
multi-pack products.
3. Attractive long term the
financial potential.
1. Potential conflicts and other
uncertain factors that the
managers find difficult to
determine.
Introduction of 2 SKUs of a Children’s Multi-Pack into the Natural
Foods Channel

12. If we really press hard to answer the $20 million question,
then it’s fairly simple answer. Go with option 1.
I firmly believe that Nature view must expand it’s multi pack
into supermarket channel of North-east and West.
Additionally, option 1 has the same benefits as already
mentioned

13. Created by Harsh Kumar during the
Marketing Management internship
under Professor Sameer Mathur