This document summarizes information about NatureView Farm, a yogurt manufacturer founded in 1989 in Cabot, Vermont. It discusses the company's objective to increase revenues to $20 million by the end of 2001 from $13 million currently. It also outlines the key team members and competitors. The issues section notes that the VC firm needs to cash out its investment and three options for growth are analyzed: expanding top SKUs into supermarkets, expanding 32 oz sizes, or introducing children's multi-packs into natural food stores. The analysis concludes that introducing multi-packs into natural food stores has the least risk and is the safest option to meet revenue targets while remaining true to the brand.

1. NatureView Farm, Inc.

2. About

3. • Yogurt manufacturer.
• Founded in 1989 in Cabot, Vermont.
• Product has a long shelf life.

4. Objective:
• Make decisions to grow revenues to $20,000,000 from current $13,000,000
before the end of the 2001.
• Increasing revenues was critical in order to attain the highest possible
valuation for the company.

5. Key Team:
• Christine Walker, vice president of marketing
• Jim Wagner, chief financial officer (CFO)
• (CEO) Barry Lander
• Walter Bellini, vice president of sales.
• Jack Gottlieb, vice president of operations
• Kelly Riley, the assistant marketing director

6. Competitors:
• Dannon
• Yoplait
• Columbo
• Breyers
• Horizon Organic
• Brown Cow

7. In numbers

11. In numbers..

12. ISSUES..
• VC firm now needed to cash out of its investment in Natureview
• Natureview management had to find another investor or position itself for
acquisition.
• Analyse the step to enter Supermarkets, its effect on natural foods
stores.
• Analysis of the 3 options

24. Analysing 3 Options..
Option 1 Option 2 Option 3
By Walter Bellini By Jack Gottlieb By Kelly Riley
Expand the top 6 SKUs out of
the 8 SKUs in the 8 Oz. line
Expand 4 SKUs of the 32 oz.
size.
Expand via 2 children’s multipack
Expand in top 1 or 2
Supermarkets
Expand nationally in large
number of Supermarkets
Stay in natural food channel.

27. 8 oz. Size represents the largest dollar.
High Revenue Potential

29. Higher risks and costs
SG&A expenses - increase -
$320,000 /year ($200,000 +
sales staff managing
supermarket brokers in the 2
regions; $120,000 - towards
additional marketing staff

32. 32-oz. cups - smaller unit & dollar share of
the yogurt market but generate above-
average gross profit margin for Natureview
(43.6% vs. 36.0% for the 8-oz. line)
For a 32-oz. expansion,
marketing expenses
significantly lower —only
10% of cost for 8-oz. size in
each region i.e. $120,000 /
region per year

34. Risk whether new users would readily
“enter the brand” via a multi- use size
Will need to hire sales
personnel – should have
experience selling to the
more sophisticated
supermarket channel

37. Introduce 2 SKUs of a children’s multi-pack
into the natural foods channel
Natural foods channel growing
almost 7 X faster than
supermarket channel

42. SKU costs
Option 1: YES
Option 2: YES
Option 3: NO
Advertising Costs:
Option 1 > Option 3 > Option 2
By analysing the 3 options we see that the safest option is OPTION 3
because:
It has less risk associated
The brand remains true to its original channels
Is more coherent with CEO’s admonition
Will meet the target of > $20,000,000 in time.

43. This Presentation was created by ANA
AGRAWAL , IIT Bombay during an inte
under Prof. Sameer Mathur, IIM Luckno