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NATURE VIEW FARMS ……
fOUNDED IN 1989,entered market
with 8oz. and 32oz. packaging with
only two flavours.
revenue grew from hundred thousand
dollars to thirteen million dollar by
1999.
by 2000,had twelve flavoured yogurts
in the market.
company drivers…
Christie walker VP Marketing
Kelly Riley assistant marketing director
Walter Bellini VP Sales
Jack Gottlieb VP Operations
how to grow revenue 50% by
2001???
expansion in supermarket channel?
will traditional channels drop or replace
them with competitors?
YOGURT MADE BY NATURE
VIEW FARMS
smooth creamy texture with
no artificial thickeners as
used by other brands in US.
great taste and high
quality,strong reputation in
market.
50 days shelf life.
Geography and demography
major consumer in northeast and west
regions
40% US citizen consume yogurt out of
which 70 % are women
Packaging type and size
Taste of yogurt
Flavours of
price of
freshness
ingredients
the hierarchy of attributes.
place product price promotions
natural food stores
natural organic
yogurt
fairly priced as
customers are able
to spend that
sales broker
selling
drug stores
national retailer
store
8 oz. and 32 oz.
packaging with 12
flavours
strong reputation
for high quality
northeast and west
region of US
50 day shelf life
improves
digestion
The PPPP’s
SWOT
“strengths”
strong brand
image.
tasty yogurt.
organic natural
yogurt.
“weakness”
no alternative
finance
no potential for
higher risk
doubt sales team
ability
“opportunity”
strong relation
with market
retailers.
health conscious
market on rise .
“threats”
being dropped or
replaced by
traditional
channels.
rise of
competitors.
super market segment
super market sold 97% of the consumed
yogurt
market grew @ 3% per year.
46% organic consumption from organic
markets
44% consumer wanted more options on
super market shelfs
NATURAL food stores
sold only 3% of total yogurt consumed
market grew @ 20% per year
29% organic consumption in organic food
market
more educated ,higher income consumers
game plan…
options?
option 1
expand 6 stock keeping units
of 8 oz. into two regions
comprising of 20
supermarkets
pros
perfect balance between enough cups
on shelf and slotting expense.
8 oz.cups had largest dollar and unit
share ,providing sufficient revenue
potential .
first moves advantage
cons
highest level of competition.
additional cost associated with
advertisements,managing staff,
2000 2001
Unit sales 3,50,00,000 4,20,00,000
Revenue $25,900,000 $31,080,000
cost $10,850,000 $13,020,000
gross profit $28,050,000 $31,060,000
Expenses $4,564,000 $3,812,800
Net profit $ 23,486,000 $27,247,200
Kita paisa kamaya
option 2
expand 4 stock keeping
units of 32 oz. nation wide
in 68 supermarkets.
pros
above average gross profits.
low promotional expenses.
fewer competitors
cons
doubt sales team ability to achieve
nation wide distribution in one year .
higher expenses in the beginning .
2000 2001
unit sale 55,00,000 55,00,000
revenue $14,850,000 $27,850,000
cost $5,445,000 $5,445,000
gross profit $9,405,000 $22,405,000
expenses $3,576,400 $3,576,400
net profit $18,837,600 $21,397,600
option 3
2 stock keeping units of
children multipacks in
natural food channels
pros
already strong roots in the market.
perfect position to launch children
multipack.
financial potential was attractive.
cons
did not achieve the target revenue.
potential conflicts was not a deciding
factor.
R&D and Operations would need to
develop multipack products.
2000 2001
unit sales 18,00,000 20,70,000
revenues $6,030,000 $6,934,500
cost $2,070,000 $2,380,500
gross profit $16,960,000 $17,554,000
expenses $400,750 $423,363
net profit $16,559,250 $ 17,130,637
option1 option 2 option 3
margin 32.6% 40.7% 37.5%
unit sales 42 million 5.5 million 2.07 million
projection 4,40,80,000 2,78,50,000 1,99,34,500
costs 13 ,020, 000 5, 545, 000 2, 380, 500
expenses 3, 812, 800 863, 400 423, 363
net profit 27, 247,200 21, 397,600 17, 130,167
option 1 seems the best
alternative
in my personal opinion
option would have been four 8 oz. SKU’s
along with 2 multipack units in the super
market channels in northeast and west
region
the decision matrix seem to
counterbalance each other. little decrease
in revenue than option 1, but beneficial in
both long term and short terms .however it
adds a certain amount of uncertainty,risks
in future.
Thank you
credits……
dailypak.com
hdwallpapers.com
goodwp.com
wallpapercraft.com
123hdwallpapers.com
business_standards.com
pixabay.com
google.images.com
hbr.org
DISCLAIMER .
this presentation was created
by sanchit badodekar VNIT Nagpur under
guidance,during the internship program
marketing management by prof. Sameer
Mathur IIM Lucknow.

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Nature view farms

  • 2. fOUNDED IN 1989,entered market with 8oz. and 32oz. packaging with only two flavours. revenue grew from hundred thousand dollars to thirteen million dollar by 1999. by 2000,had twelve flavoured yogurts in the market.
  • 3. company drivers… Christie walker VP Marketing Kelly Riley assistant marketing director Walter Bellini VP Sales Jack Gottlieb VP Operations
  • 4. how to grow revenue 50% by 2001??? expansion in supermarket channel? will traditional channels drop or replace them with competitors?
  • 5. YOGURT MADE BY NATURE VIEW FARMS smooth creamy texture with no artificial thickeners as used by other brands in US. great taste and high quality,strong reputation in market. 50 days shelf life.
  • 6. Geography and demography major consumer in northeast and west regions 40% US citizen consume yogurt out of which 70 % are women
  • 7. Packaging type and size Taste of yogurt Flavours of price of freshness ingredients the hierarchy of attributes.
  • 8. place product price promotions natural food stores natural organic yogurt fairly priced as customers are able to spend that sales broker selling drug stores national retailer store 8 oz. and 32 oz. packaging with 12 flavours strong reputation for high quality northeast and west region of US 50 day shelf life improves digestion The PPPP’s
  • 9. SWOT “strengths” strong brand image. tasty yogurt. organic natural yogurt. “weakness” no alternative finance no potential for higher risk doubt sales team ability “opportunity” strong relation with market retailers. health conscious market on rise . “threats” being dropped or replaced by traditional channels. rise of competitors.
  • 10. super market segment super market sold 97% of the consumed yogurt market grew @ 3% per year. 46% organic consumption from organic markets 44% consumer wanted more options on super market shelfs
  • 11. NATURAL food stores sold only 3% of total yogurt consumed market grew @ 20% per year 29% organic consumption in organic food market more educated ,higher income consumers
  • 14. option 1 expand 6 stock keeping units of 8 oz. into two regions comprising of 20 supermarkets
  • 15. pros perfect balance between enough cups on shelf and slotting expense. 8 oz.cups had largest dollar and unit share ,providing sufficient revenue potential . first moves advantage cons highest level of competition. additional cost associated with advertisements,managing staff,
  • 16. 2000 2001 Unit sales 3,50,00,000 4,20,00,000 Revenue $25,900,000 $31,080,000 cost $10,850,000 $13,020,000 gross profit $28,050,000 $31,060,000 Expenses $4,564,000 $3,812,800 Net profit $ 23,486,000 $27,247,200 Kita paisa kamaya
  • 17. option 2 expand 4 stock keeping units of 32 oz. nation wide in 68 supermarkets.
  • 18. pros above average gross profits. low promotional expenses. fewer competitors cons doubt sales team ability to achieve nation wide distribution in one year . higher expenses in the beginning .
  • 19. 2000 2001 unit sale 55,00,000 55,00,000 revenue $14,850,000 $27,850,000 cost $5,445,000 $5,445,000 gross profit $9,405,000 $22,405,000 expenses $3,576,400 $3,576,400 net profit $18,837,600 $21,397,600
  • 20. option 3 2 stock keeping units of children multipacks in natural food channels
  • 21. pros already strong roots in the market. perfect position to launch children multipack. financial potential was attractive. cons did not achieve the target revenue. potential conflicts was not a deciding factor. R&D and Operations would need to develop multipack products.
  • 22. 2000 2001 unit sales 18,00,000 20,70,000 revenues $6,030,000 $6,934,500 cost $2,070,000 $2,380,500 gross profit $16,960,000 $17,554,000 expenses $400,750 $423,363 net profit $16,559,250 $ 17,130,637
  • 23. option1 option 2 option 3 margin 32.6% 40.7% 37.5% unit sales 42 million 5.5 million 2.07 million projection 4,40,80,000 2,78,50,000 1,99,34,500 costs 13 ,020, 000 5, 545, 000 2, 380, 500 expenses 3, 812, 800 863, 400 423, 363 net profit 27, 247,200 21, 397,600 17, 130,167
  • 24. option 1 seems the best alternative
  • 25. in my personal opinion option would have been four 8 oz. SKU’s along with 2 multipack units in the super market channels in northeast and west region
  • 26. the decision matrix seem to counterbalance each other. little decrease in revenue than option 1, but beneficial in both long term and short terms .however it adds a certain amount of uncertainty,risks in future.
  • 29. DISCLAIMER . this presentation was created by sanchit badodekar VNIT Nagpur under guidance,during the internship program marketing management by prof. Sameer Mathur IIM Lucknow.