Case study conducted under the guidance of Prof. Sameer Mathur during a remote internship

2. • Founded in 1989
• Manufacturer and Marketer of Refrigerated Cup
Yogurt
• Differentiators:
All Natural Ingredients
Longer Shelf Life (50 days)
Reputation for high quality and great taste
• Key Success Factors:
Strong Brand
Guerrilla Marketing
Strong Relationship and Distributors

3. With respect to organic products:
 Predicted to grow from $6.5m to $13.3m in 4 years.
 Customers preferring organic products are said to
be more educated, to be earning more, and to
belong to the senior age group.
 Supermarkets are attracting these customers by
offering more organic products.
 44% of the customers would like a wider range of
organic products.
× 67% of households consider price as a drawback
while considering the purchase of organic products.

4. With respect to yogurt
• Top 4 competitors to Natureview Farm control over 50%
of the market share
• Sales:
Supermarkets: 97% of total sales (3% annual
growth)
Natural Food Stores: 3% of total sales (20% annual
growth)

5. Factors Involved in Purchasing Decision
• Packaging
• Flavour
• Price
• Freshness (Mfg. date/Expiry date)
• Organic nature of product

6. • Product
- Organic yogurt
- 8-oz size in 12
flavours
- 32-oz size in 4
flavours
• Price
-Affordable
• Place
- Natural food
channel
- Wholesale
clubs
- National
retailer
channel
- Convenience
and drug
stores
• Promotion
- Low cost
guerrilla
marketing
- Promotion of
flavour and
taste in the
natural food
channel as
well as the
national
retailer
channel

7. To increase Natureview’s revenue to $20
million by the end of 2001

8. To expand into supermarkets or to strengthen
existing distribution and marketing strategy to earn
greater revenues ?

9. Option 1
Expand 6 SKUs of the 8oz product line into one
or two selected supermarket channel regions

10. • Pros
- 8oz cups represented
largest unit share
- High potential to increase
revenue
- First brand to move into
supermarkets would have
an added advantage
• Cons
- Highest level of marketing
expenditure
- Possible channel conflict
between natural food
channels and supermarkets
- Lack of experience at
supermarkets

12. Option 2
Expand 4 SKUs of the 32oz product line
nationally

13. • Pros
- 32oz cups generate
higher profit margin that
8oz
- Longer shelf life
- Lower promotiinal
expenses
• Cons
- Higher slotting fees due
to national distribution
- Possible channel conflict
between natural food
channels and
supermarkets
- Challenging to complete
national distribution
within 12 months

15. Option 3
Expand 2 SKUs of the children’s multi pack
into the natural food channel

16. • Pros
-Sales team confident of
achieving target
-High growth potential for
existing channels
-Perfect positioning for the
launch of the products
• Cons
-Low revenue generation
-Loss of opportunity to be
the first one to expand in
supermarkets
-Does not help in achieving
the company’s target

18. Pursue the FIRST Option

19. • Market penetration
• Higher revenue
• More confidence from the investors
• High growth rate