Natureview Farm is a yogurt company founded in 1989 in Cabot, Vermont that uses natural ingredients. By 1999, its revenue grew from $1,000,000 to $13 million. It currently offers 12 yogurt flavors and multipacks for children. To increase its revenues to $20 million by 2001, Natureview Farm is considering three expansion options proposed by its vice presidents of sales, operations, and assistant marketing director: 1) Expand its top 6 selling 8oz SKUs into 1-2 supermarket regions, 2) Expand 4 SKUs of its 32oz size nationally, or 3) Introduce 2 SKU children's multipacks into natural food stores. The senior management will determine which single option to pursue to most effectively

2. INTRODUCTION TO THE
CASE

3. WHAT IS NATUREVIEW FARM

4. ABOUT THE COMPANY
1989
• Founded and manufactured in Cabot , Vermont
• Use Natural Ingredients with longer average shelf life of 50 days.
1999
• Company revenue growth from $ 1,00,000 to $ 13 million
• Fruit on the bottom yogurt
2000
• Expand to 12 yogurt flavors and multipack yogurts ( for children )

5. WHO ARE THE KEY PEOPLE

6. NATUREVIEW FARM’S EARLY
YEARS AND CURRENT
SITUATION

10. WHAT IS THE PRESENT
SITUATION ?

14. HOW WILL IT INCREASE
REVENUES TO $ 20 MILLION
BY END OF 2001

15. TO INCREASE REVENUES BY 2001
1
• It needs to increase its product sale
2
• Cut down on total costs incurred
3
• Increase efficiency , product life and quality

17. THE REFRIGERATED YOGURT
CATEGORY AND THE YOGURT
CONSUMER

24. THE SALES AND
DISTRIBUTION PROCESS :
SUPERMARKET CHANNEL VS
NATURAL FOOD STORES

25. SUPERMARKET CHANNELS
• Monitor sales trends especially of new products , by region , area and store using
sophisticated scanner technology .
• Relatively streamlined distribution systems allows to maintain lower prices .
• Suppliers -> Large distribution centres -> Chain’s warehouse .
• Markup on each product by intermediates . Typical distributor margin – 15% and
retailer margin – 27% .

26. NATURAL FOOD CHANNEL
• Typically charge higher retail prices for the same product as compared to
supermarkets .
• Distributors deliver products to individual stores , sometimes stock the shelves and
track paperwork .
• Manufacturer ships products -> Wholesaler -> Distributor -> Retailer .
• Intermediates ‘break cases’ Typical natural foods Wholesaler Margin 7% , Distributor
Margin 9% , Retailer Margin 35% .

29. ANALYSIS OF THE SENIOR
MANAGEMENT

30. TEAM’S 3 OPTIONS
Option 1
• This was proposed by
Walter Bellini, Vice
President of Sales
• Expand the 6 SKUs of the
8-oz product line into one
or two selected
supermarket channel
regions
• The 6 SKUs chosen were
the best selling SKUs of
the 8-oz line .
Option 2
• This was proposed by Jack
Gottlieb , Vice President of
Operations.
• Expand 4 SKUs of the 32-
oz size nationally
Option 3
• This was proposed by
Kelly Riley , Assistant
Marketing Director .
• Introduce 2 SKUs of a
children’s multi-pack into
the natural foods channel
.

34. WHICH IS THE BEST
OPTION OF THE THREE ?

38. RECAP

40. THANK YOU

41. DISCLAIMER
• This presentation is created by Arvind Ashok , NIT Trichy , during a Marketing
Internship by Professor Sameer Mathur , IIM Lucknow .