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Natureview Case Study
- 1. Natureview Farm Case Study CHITRAN ROYCHOWDHURY, KIIT BHUBANESHWAR
- 2. How it all started! 1989 • FOUNDED AND MANUFACTURED IN CABOT, VERMONT • FIRST ENTER MARKET 8-OZ AND 32-OZ WITH PLAIN AND VANILLA FLAVOR • USE NATURAL INGREDIENT WITH LONGER AVERAGE SHELF-LIFE OF 50 DAYS 1999 • COMPANY REVENUE GROWTH FROM $ 100,000 TO $13 MILLION • FRUIT ON THE BOTTOM YOGURT 2000 • EXPAND TO 12 YOGURT FLAVORS & MULTIPACK YOGURT (FOR CHILDREN)
- 3. Hurdles VC NEEDED TO CASH OUT OF ITS INVESTMENT NEED TO FIND A PATH TO GROW REVENUES BY OVER 50% BEFORE THE END OF 2001 ($20 MIL) SHOULD NATUREVIEW FARM EXPAND INTO SUPERMARKET CHANNEL?
- 4. 86% outreach till 2000s The P4s PRODUCT PLACE PROMOTION PRICE PRODUCT 0 30 60 90 1980 1985 1990 1995 2000
- 5. SWOT Analysis STRENGTH � STRONG BRAND � LOW COST � NO ARTIFICIAL THICKENERS USED � UNIQUE, SMOOTH AND CREAMY TEXTURE OF YOGURT � USAGE OF NATURAL INGREDIENTS � LONGER SHELF LIFE
- 6. SWOT Analysis WEAKNESS � NO ALTERNATIVE FINANCING AVAILABLE � LACKS POTENTIAL OF TAKING HIGHER RISKS AND COSTS � DOUBT ON SALES TEAM’S ABILITY
- 7. SWOT Analysis OPPORTUNITY � STRONG RELATIONSHIPS WITH LEADING NATURAL FOODS RETAILERS
- 8. SWOT Analysis THREATS � ACCUMULATION OF CASH BY HORIZON FROM IPO � BEING DROPPED OUT OF TRADITIONAL CHANNEL
- 9. What to do, to sell ORGANIC OR NOT PROBIOTIC OR NOT TASTE FLAVOUR PRICE FRESHNESS INGREDIENTS PACKAGING TYPE/SIZE
- 10. YOGURT MARKET SHARE BY PACKAGING SEGMENTS 0 20 40 60 80 8 oz. cups 32 oz. cups Child Packs Others
- 11. REGIONALISED MARKET SHARE 0 10 20 30 NorthWest MidWest SouthWest West
- 13. Supermarket Channel MANUFACTURER DISTRIBUTOR 15% RETAILER 27% CUSTOMER LENGTH OF CHANNEL TO MARKET
- 14. Natural Food Channel MANUFACTURER NATURAL FOOD WHOLESALER 7% NATURAL FOOD DISTRIBUTOR 9% RETAILER 35% CUSTOMER LENGTH OF CHANNEL TO MARKET
- 15. Production Costs by Channel 8 oz. Cup $ 0 $ 0.22 $ 0.44 $ 0.66 $ 0.88 Natural Food Supermarket Manufacturing
- 16. Production Costs by Channel 32 oz. Cup $ 0 $ 0.798 $ 1.595 $ 2.393 $ 3.19 Natural Food Supermarket Manufacturing
- 17. Production Costs by Channel 4 oz. Cup Multipack $ 0 $ 0.838 $ 1.675 $ 2.513 $ 3.35 Natural Food Supermarket Manufacturing
- 18. OPTIONS & DILEMMA OPTION 1 • EXPAND IN NORTHEAST AND WEST SUPERMARKET REGION • BRING IN THE 6 SKUS OF THE 8-OZ. SIZE OPTION 2 • EXPAND IN SUPERMARKET NATIONALLY • BRING IN THE 4 SKUS OF THE 32-OZ. SIZE OPTION 3 • STAY IN NATURAL FOOD CHANNEL • INTRODUCE 2 CHILDREN’S MULTIPACK
- 29. THE DECISION We look forward to be working with OPTION 1. It is because :- �Reach beyond the target objective of 20 million revenue by end of 2001 with projected of � $31 060 000 �8 –oz yogurt is the highest demand � In supermarket, can expose to more range of customers �Will have the first mover advantages of natural product to enter supermarket �A bit risky but in a long term will generate revenues of 200% (as looking at two other competitors)
- 30. disclaimer ! ! ! P R O F . S A M E E R M A T H U R IIM Lucknow, Marketing Professor 2013 - McGill University Marketing Professor 2009 – 2013 Carnegie Mellon Ph.D and M.S (Marketing) 2003 - 2009 C H I T R A N R O Y C H O W D H U R Y KIIT Bhubaneshwar, 2014 - 2019 Marketing Management Intern WINTER 2017