Natureview Farm is considering expanding their sales of yogurt from local stores into supermarkets. They analyze two options - option 1 focuses on selling in supermarkets while maintaining existing store sales, and option 2 focuses only on store sales. Natureview Farm ultimately pursues option 1, expanding into supermarkets, but faces challenges with distribution and shelf space that reduce profits below projections in the first year. They learn important lessons about distribution, shelf space, and promotion strategies in large supermarkets.

1. Natureview Farm
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2. Marketing Management
Framework

4. Key Discussion Points
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5. Example: Supermarket, 8
oz.
$ Selling Price - $ Cost
% Margin =
$ Selling Price

6. Selling Prices and Margins by
Product / Channel

7. Steps:
Revenue and Profit under
Each Option

8. Two Promotion Strategies:
Push vs. Pull

9. Year 1 Incremental Profits:
Option 1

10. Revenue and Profit Projections:
Option 1

11. Summary of Financial Calculations (in 1000s)

12. Which Option
to Pursue?

14. Expanding into Supermarkets

15. What Happened?
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16. What Happened? (cont.)
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17. Lessons
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18. Disclaimer