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Nature view farm
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- 2. NatureView-A small Yogurt Manufacturer Foundedin 1989 Produced Organic Yogurt with longer shelf life Natural foods industry
- 3. Increase revenues from $13Millionin 1999 to $20Million in 2001 to position for acquisition
- 4. 32 Oz 8Oz 4 Oz • 4 Flavours • 14% revenue • 8 Flavours • 96% revenue • Children’s Multipack
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- 6. Supermarkets, 46% Health Food Stores, 25% NaturalFood Stores, 29% WHERE CONSUMERS BOUGHT THEIR YOGURT?
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- 8. 0 10 20 30 40 50 60 70 80 8 Oz Cups32 Oz Cups 4 Oz Multipacks % OF SALES GROWTH RATE OF SEGMENT
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- 12. 97% of Sales Largerdisplay section Lesser Prices 4% Broker’s Fee High Slotting Fee- $10000/chain/SKU Regular Trade Promotions Expenditure
- 13. 32 Oz Cup$2.70 4 Oz Cup $2.85 8 Oz Cup $0.74
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- 15. 7% Margin 9% Margin 35%Margin
- 16. Allows to “breakcases” Accounted for 24% of Natureview’s sales Only one time product introduction fee Higher Prices Smaller Display
- 17. 32 Oz Cup$3.19 4 Oz Cup $3.35 8 Oz Cup $0.88
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- 20. Largest Revenue Pot Successfulfor companies in the past First Mover’s advantage over competitors High Risks Intense Competition Arousal of Channel Conflict
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- 23. Largest Profit Margin LesserCompetition; strong brand position Lower promotion costs Doubt on Ability to achieve target in 12 months management team doubted that new users would “readily “enter the brand” Arousal of Channel Conflict Need to develop relations with supermarket retailers
- 24. ANTICIPATED SALES 5.5 Million Units Marketing Expenses (in64 Chains) $0.12 Mil/region/year SG&A increase $ 0.16 Mil
- 26. Already Established relationshipswith Natural food outlets Confident sales team of achieving targets all-natural ingredients would provide the perfect positioning High growth in this channel Increase in R&D expenditure Potential channel conflict is deciding factor
- 27. ANTICIPATED SALES 1.8 Million Units Marketing Expenses $0.25Mil Cost of Complementary cases 2.5%of sales SG&A increase $ 0
- 29. Sales Units 35Million Units Sales $25.9 Million Distributor Margin $2.83 Million Retailer Margin $6.9 Million Income To Company $16.07 Million
- 30. Manufacturing Cost $10.85Million Broker’s Fee $1.036 Million Slotting Fee $2.52 Million Trade Promotions $1.77 Million Marketing Expenses $1.2 Million SG&A Costs $0.32 Million Net Profit -$1.62 Million
- 31. Sales Units 5.5Million units Sales $14.85Million Distributor Margin $1.62 Million Retailer $4 Million Income To Company $9.21 Million
- 32. Manufacturing Cost $5.4Million Broker’s Fee $0.59 Million Slotting Fee $4.2 Million Trade Promotions $8.68 Million Marketing Expenses $0.12 Million SG&A Increments $0.16 Million Net Profit -$9.98 Million
- 33. Sales Units 1.8Million Sales $6.03 Million Wholesaler Margin $0.25 Million Distributor Margin $0.35 Million Retailer Margin $2.11 Million Income To Company $3.32 Million
- 34. Manufacturing Costs $2.07Million Free Cases Fee $0.15 Million Marketing Expenses $0.25 Million SG&A Increase $0 Net Profit $0.85 Million
- 41. DISCLAIMER Created by NeelanshKamboj, IIT Jodhpur, during a marketing internship under Prof. Sameer Mathur, IIM Lucknow