This document analyzes options for expanding the sales of Natureview Farm yogurt. It provides background on the company's founding and growth from $100,000 to $13 million in revenue between 1989 and 2000. It then evaluates 3 options: 1) Expanding the 8oz product line into supermarket channels, 2) Expanding the 32oz size nationally, or 3) Introducing a children's multipack into natural food channels. Option 1 is projected to generate the highest revenue and net profit of $44 million and $27 million respectively. The regional supermarket expansion is advocated as the best option as it presents an opportunity to gain market share before competitors and exposes the brand to more customers long-term, exceeding the revenue objective.

1. HAPPY MOO HAPPY YOU!
CASE ANALYSIS:
NATUREVIEW FARM

2. • Founded and manufactured in Cabot, Vermont
• Plain vanilla flavor of 8-oz and 32-oz packaging initially
• Less than $100,000 revenue earned
• Revenue of the company grew from $100,000 to $13 million
• FRUIT AT THE BOTTOM developed in productive size of 8-oz
• Introduced various flavours in different sizes
• Multipack yogurt products for children
1989
1999
2000

3. The FOUR P’s
• PRODUCT
• PRICE
• PLACE
• PROMOTION

4. PRODUCT
• RECEPIE USED ARE NATURAL INGREDIENTS
• AVERAGE SHELF LIFE OF NATUREVIEW FARM’S YOGURT IS 50 DAYS
• SPEICAL PROCESS GAVE YOGURT A SMOOTH TEXTURE
• USED MILK FROM COW UNTREATED WITH ARTIFICIAL GROWTH
HORMONE

5. PRICE
NATURAL FOOD
CHANNELS
MANUFACTUR
ING COST
AVERAGE RETAIL
PRICE
TOTAL COST
8-oz CUP $0.31 $0.88 $1.19
32-oz CUP $0.99 $3.19 $4.18
4-oz CUP MULTIPACK $1.15 $3.35 $4.50
SUPERMARKET
CHANNEL
MANUFACTU
RING COST
AVERAGE RETAIL
PRICE
TOTAL COST
8-oz CUP $0.31 $0.74 $1.05
32-oz CUP $0.99 $2.70 $3.69
4-oz CUP MULTIPACK $1.15 $2.85 $4.00
A f f o r d a b l e A c c o r d i n g T o I t ’ s C h a n n e l

6. PLACE
SUPERMARKET
CHANNELS
MARGIN
MANUFACTURER -
DISTRIBUTOR 15%
RETAILER 27%
CONSUMER -
NATURAL FOOD CHANNELS MARGIN
MANUFACTURER -
NATURAL FOOD WHOLESALER 7%
NATURAL FOOD DISTRIBUTOR 9%
RETAILER 35%
CONSUMER -
PLACE

7. PROMOTION
• It’s natural flavor with high quality and great taste growth in the national distribution and
natural food channels
• Low cost guerilla marketing

8. MANUFACTURER
NATURAL FOOD WHOLESALER
NATURAL FOOD DISTRIBUTOR
RETAILER
CONSUMER
NATURAL FOOD CHANNEL
Typical natural food wholesaler margin was 7%,distributor margin was 9%,and retailer margin
was 35%

9. SUPERMARKET CHANNEL
MANUFACTURER
DISTRIBUTOR
RETAILER
CUSTOMER
A typical distributor margin in this channel was 15% and typical retailer margin was 27%.Hence with
respect to the natural food stores, prices tended to be lower here.

10. 1
2 3

11. WITH MOST IMPORATANT OBJECTIVE BEING TO MEET THE DESIRED REVENUE
GENERATION, FOLLOWING MARKET SURVEY RESULTS ARE TO BE CONSIDERED:
SUPERMARKET SOLD 97% OF ALL THE YOGURT CONSUMED AND
NATURAL FOOD STORE SOLD THE BALANCE.
AMONG 100% OF THE U.S. POPULATION,
 ORAGNIC PRODUCT WAS CONSUMED BY 40 % OF THE POPULATION
 AMONG ORGANIC PRODUCT USERS,70% ARE YOGURT CONSUMERS
 SIXTY-SEVEN PERCENT OF U.S. HOUSEHOLDS INDICATED THAT PRICE WAS A
BARRIER TO THEIR PURCHASE OF ORGANIC PRODUCTS
 58% EXPRESSED THAT THEY WOULD BUY MORE ORGANIC PRODUCT IF THEY
WERE LESS EXPENSIVE.
 FORTY-SIX PERCENT OF ORGANIC FOOD CONSUMERS BOUGHT ORGANIC
PRODUCTS AT A SUPERMARKET, 25% AT A SMALL HEALTH FOODS STORE,
AND 29% AT A NATURAL FOODS SUPERMARKET
MARKET SURVEY

12. OPTION 1
(MOST STRONGLY ADVOCATED BY WALTER BELLINI,PRESIDENT OF SALES)
TO EXPAND 6 SKU’s OF THE 8-oz PRODUCT LINE INTO ONE OR
TWO SELECTED SUPERMARKET CHANNEL REGION
 Supermarket retailer would likely authorize only one organic product brand. The
first brand to enter the channel would have a significant advantage.
 8 ounce cup represented the largest dollar and unit share of refrigerated yogurt
market.
 Other natural food brand had successfully expanded their distribution into the
supermarket channel out of which two of them have increased revenue by over
200% within two years of entering supermarket.

13. OPTION 2
TO EXPAND 4 SKU’S OF THE 32-oz SIZE
NATIONALLY
 32-OZ CUPS CURRENTLY GENERATED AN ABOVE AVERAGE GROSS PROFIT
MARGIN FOR NATUREVIEW(43.6% VS 36% FOR 8-oz PRODUCT LINE)
 NATUREVIEW FARM HAD A STRONG COMPETITIVE ADVANTAGE BECAUSE
OF THE PRODUCTS LONGER SHELF LIFE
 32-OZ. SIZE WAS PROMOTED ONLY TWICE A YEAR,HENCE LESSER PROMOTIONA
EXPENSES
(ADVOCATED BY JACK GOTTLIEB, VICE PRESIDENT OF OPERATIONS)

14. OPTION 3
TO INTRODUCE TWO SKUS OF A CHILDREN’S MULTI-PACK INTO THE NATURAL FOODS CHANNEL
 EXPANSION INTO THE SUPERMARKET CHANNEL COULD POTENTIALLY AFFECT STRONG RELATIONSHIPS WITH
THE LEADING NATURAL FOODS CHANNEL RETAILERS RELATIONSHIPS.
 NATUREVIEW FARM’S ALL-NATURAL INGREDIENTS WOULD PROVIDE THE PERFECT POSITIONING FROM WHICH
TO LAUNCH ITS OWN CHILDREN’S MULTI-PACK PRODUCT OFFERING INTO THEIR CORE SALES CHANNEL
 THE FINANCIAL POTENTIAL WAS VERY ATTRACTIVE. THE PROJECTED TOTAL YEARLY REVENUE FOR THE TWO
MULTIPACK SKUS WOULD BE APPROXIMATELY 10% OF THE NATURAL FOODS CHANNEL CATEGORY DOLLAR
SALES, AND THE ESTIMATED POTENTIAL INCREMENTAL UNIT VOLUME AT 1.8 MILLION.
 THE NATURAL FOODS CHANNEL WAS GROWING ALMOST SEVEN TIMES FASTER THAN THE SUPERMARKET
CHANNEL, AND NATUREVIEW WAS DEVELOPING SEVERAL NEW PRODUCTS THAT COULD FURTHER BOOST
SALES PERFORMANCE IN THIS HIGHLY SUCCESSFUL CHANNEL.
( advocated by Walker’s colleague Kelly Riley, the assistant marketing director)

16. CONSIDERING THE UNIT SALES AND HENCE FINDING THE REVENUE
PROJECTION, WE CAN SEE THAT REVENUE FOR THE OPTIONS ARE(YEAR
2001)
OPTION UNIT SALES
OPTION 1 42,000,000
OPTION 2 5,500,000
OPTION 3 2,070,000
REVENUE
44,080,000
27,850,000
19,934,500
NET PROFIT
27,247,200
21,397,600
17,130,637

17. OPTION 1 IS THE BEST OPTION!
 EASIER IMPLEMENTION AS IT’S A REGIONAL DISTRIBUTION
 WITH MORE COMPETITORS MOVING INTO THE SUPERMARKET,THIS RISK IS NECESSARY ELSE A HUGE
OPPORTUNITY MIGHT BE MISSED
 ITS LONG TERM ADVANTAGES ARE HIGH IF PROPERLY IMPLEMENTED AND SUCCESSFUL.
 EXPOSURE TO MORE RANGE OF CUSTOMERS
 IT EXCEEDS THE REVENUE OBJECTIVE

18. CREATED BY PUJYA PANDEY,JSS NOIDA
During a marketing internship under
Prof. SAMEER MATHUR,IIM LUCKNOW.