Nature View Farm is a small yogurt manufacturer from Vermont that has seen growth from $100,000 to $13 million in sales over 10 years. However, it now needs to jump revenue to $20 million in less than two years. It is considering three options to expand into new channels. Option 1 is to expand 6 yogurt SKUs into eastern and western supermarket regions. Option 2 is to expand 4 larger SKU sizes nationally into supermarkets. Option 3 is to introduce 2 children's multipacks into the natural foods channel. The analysis recommends Option 3. This poses less risk since Nature View already has relationships in natural foods. It also has potential for significant growth in the children's segment and allows the company to

1. FINAL
ASSIGNMENT
HBS CASE STUDY
ANALYSIS

2. CASE 2
NATURE VIEW
FARM

3. SITUATION
WHO ARE THEY?
A SMALL YOGHURT MANUFACTURER
FROM VERMONT

4. CONTD….
» Founded in 1989 in Cabot,Vermont
» Strengths: Family yoghurt recipe
» Growth: In 10 years, from 100,000 to 13
million USD
» Traditinally distribute via Natural foods

5. PRODUCTS OFFERED
8 oz
12
flavours
Multipack
Yoghurt
Products
32 oz
4 flavours

6. THE CRISIS !
» Needs to jump revenue immediately from
13 million to 20 million USD in a span
of less than 2 years.
» Otherwise risk the possibility of
acquisition !

7. WHETHER NATUREVIEW SHOULD
EXPAND INTO THE SUPERMAKET
CHANNEL IN ORDER TO MEET ITS
REVENUE GOAL ???
QUESTIONS :THE BURNING
QUESTION !

8. THREE OPTIONS AVAILABLE
VP OF SALES
Expand 6 SKUs of
8-oz size into
eastern and
western
supermarket
regions .
VP OF
OPERATIONS
Expand 4 SKUs of
the 32-oz size
nationally into
supermarket
channel
Asst. Marketing
Director
Introduce 2
children’s
multipacks into
natural foods
channel

9. OPTION 1: 8-0Z’s Supermarket
strategy
PROS:
» Largest dollar and unit-share in the
refrigerated yoghurt segment
» Other brands have shown tremendous
success taking this route.
» Wise to move to this segment before
others

10. CONS:
» Heavy onus on creating a apt marketing
plan that will launch the product
» The logistical and supply-chain strategy
changes drastically and an entirely
different approach has to be taken
» HIGH RISK HIGH REWARD APPROACH

11. OPTION 2: 32-OZ Supermarket
strategy
PROS:
» Fewer competitive offerings in this
category; longer product shelf life
» Lower promotional expenses; less
risk in marketing

12. CONS:
» Has a smaller unit and dollar share of
yoghurt market
» Slotting expenses would be higher, since
large number of retailers are involved

13. OPTION 3: Children’s multi-
pack in Natural foods channel
PROS:
» Less risky; the company already
has a good relationship with
natural foods
» Incredible financial potential
involved for growth

14. CONS:
» R&D and Operations dept. need to speed
up their effort to create a new product.
» Rivals could invade into supermarket
space meantime

15. HYPOTHESIS:
» NATUREVIEW FARM should
choose plan 3 i.e expand their
product line to include the
innovative line of products like
children's’ yoghurt .

16. » The marketing department is unprepared
to implement plan 1 from a logistical and
distribution standpoint while switching to
Super-markets.
» It is in conflict with its niche branding if it
does so.
» Marketing strategy needs to be completely
changed from step 1

17. » Comparatively in option 3 Natureview farm
already has the resources it needs to scale
up.
» It doesn’t require a radical marketing
strategy. It is not a costly process at all.

18. PROOF & ANALYSIS
1.The children’s yoghurt
segment is growing at an
enornmous scale at 12.5%
.Sufficient to drive growth
for 2 yeas to 20 million
USD.

19. Contd….
2. The sales and marketing
costs incurred which
together make up 15% of
total expenses remain
almost unchanged.

20. Contd…
3.The revenue for the upcoming
fiscal year after the
implemented change will have
an additional 6 million USD. It
can comfotably touch the 20
million mark in 2 years at
12.5% growth.

21. ALTERNATIV
ES

22. Plan A would have brought in almost 25
mills revenue in Year 1 itself, it is definitely
worth pursuing under a strong leader of
Marketing dept.

23. The current plan will also eventually face
same problems in the Natural Foods
market as far as distribution and logistical
issues are concerned. There will be more
competition

24. In the long-term it is advisable for
Natureview farm to implement Option A to
avoid being overthrown by competitors.

25. THANKS!
THE END

26. CREDITS
DONE UNDER GUIDANCE OF
OF:
Prof.Sameer Mathur,
IIM Lucknow
By,
Ms.Meera Vinod
MCE, Trivandrum