Done under the guidance of Prof.Sameer Mathur, IIM Lucknow

1. NATUREVIEW FARM
CASE STUDY

3. Christine Walker _ Vice President of Marketing
Barry Landers _ Chief Executive officer (CEO)
Walter Bellini _ Vice President of sales
Jack Gottlieb _ Vice President of operations
Kelly Riley _ Assistant Marketing Director

5. The team faced a challenging situation_ find
a path to grow revenues by 50% by 2001
1.1
Arranged an equity infusion from venture
capital firm to fund strategic investment
1.2
Venture capital need to be cashed out in Nature View

6. It entered the market with 8oz. And 32.oz with 2
flavours ( plain , vanilla)
2.1
By 2000 it introduced 12 refrigerated yogurt
flavours in 8oz. Cups & 4 flavours in 32oz.cups
2.2
Competitors :Dannon,Yoplait,Breyers and Colombo

7. OPTION 1
•Expand 6 SKUs of 8.oz products
OPTION 2
•Expand 4 SKUs of 32.oz products
OPTION 3
•INTRODUCE 2 SKUs of children’s
multi pack into natural food channel

8. SWOT Analysis:

9.  Usage of natural ingredients
 Unique, smooth and creamy
texture of yoghurt
 No artificial thickeners used

10.  No alternative financing
available
 Lacks potential of taking
higher risks and costs as well

11.  Higher average shelf life of 50
days
 Strong relationships with leading
natural foods retailers
 High quality and great taste

12.  Accumulation of cash by
Horizon from IPO
 Being dropped out of
traditional channel

20.  Balanced Scorecard:
---The balanced scorecard is a performance
management system that keeps a check whether
there is an alignment between the large scale
objectives and the smaller scale operational
activities of a company The balanced scorecard
proposes the four general perspectives-

21.  The financial perspective keeps a check weather
the strategies implemented and applied by the
company are contributing to the bottom-line
improvement of the company. Key performance
indicators of this perspective are the cash flow
statement; return on fund invested; financial
result; return on capital employed and return on
equity. These key performance indicators would
decide weather the strategy implemented by
Natureview Farm is beneficial for the company
and is providing contribution in the financial
improvement of the company.

22.  The customer perspective measures the value that
is provided to the customer like time, quality,
performance and service, and cost by the
organization to satisfy customers to generate more
sales and revenues. It also measures the results of
this value proposition to the customer like
customer satisfaction, market share etc. the
measured results of value proposition indicates
weather the value provided to customer generated
more sales and revenues and increased customer
satisfaction and market share in the same
proportion or not.

23.  This internal process perspective deals with the
complete processes that actually create and
deliver the value proposition to the customer.
Its main focus is to provide the value to the
customers both productively and efficiently.
The key performance indicators are number of
activities; opportunity success rate; accident
ratios; overall equipment effectiveness. These
performance indicators would measure the
efficiency of strategy implemented and applied
by Natureview Farm Company

24.  The innovation and learning perspective keeps its
focus mainly on the internal skills and capabilities that
are required to support internal processes of value
creation. It deals with the human capital; information
capital and the organizational capital of the company
and provides foundation in the strategy development.
Key performance indicators of this perspective are
Investment Rate; Illness rate; Internal Promotions %;
Employee Turnover and Gender Ratios. The strategy is
developed on the basis of internal skills and
capabilities. Proposed strategy of expanding to a
supermarket channel would be judged on the basis of
investment rate and other key parameters that indicate
and lays down the base for the formulation of strategy

25.  After going through all the financial and non
financial factors of the strategic options available, I
recommend option 3, that is, to introduce two
SKUs of a children's multi-pack into the natural
foods channel. This option would be the most
favourable as it involves least extra costs to be
implemented and earns substantial revenues with
a gross profitability of 37.6%. Moreover this option
would be more feasible as the sales team and
distribution channels are quite confident about this
channel. The company had also started exploring
multipack yogurt products as a growth option.

26. 1. Understanding and analyzing customer
profitability.
2. Maintaining and increasing customer
profitability.
3. Turning unprofitable customers into profitable
ones.

27. THANK YOU