NatureView Farm started in 1989 specializing in yogurt made from natural ingredients, achieving significant revenue growth by 1999. Facing a need for further expansion and revenue growth, options were discussed including expanding into supermarkets or focusing on natural food channels. The preferred strategy is to expand in the northeastern and western supermarket regions to achieve projected revenue goals.

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

12. YOGURT DISTRIBUTION
CHANNEL
0
25
50
75
100
Supermarkets Food Stores

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