The document discusses options for a yogurt company, Natureview Farm, to increase revenue to $20 million by 2001. It analyzes three options: 1) expanding supermarket distribution and targeting higher-income customers, requiring $1.2 million in advertising per region; 2) increasing sales of 32-oz cups which have above average margins but higher slotting fees; 3) relying on existing retailers which has low costs but may not meet revenue goals. The document recommends option 1 or 2 as they offer higher returns, and option 1 is more likely to meet the revenue target.

2. •INTRODUCTION
TO THE CASE

4. MANAGEMENT TEAM
• BARRY LENDERS
• JIM WANGER
• CHRISTINE WALKER
• WALTER BELLIN
• GACK GOTTLIED

5. • In 10 years the firm has grown
from less than 100 thousand $ to
13 million $

6. YOGURT PRODUCTION COST

7. The firm targeted
women children

8. Natureview Farm’s yogurt’s average shelf life
(the
length of time the yogurt stayed fresh) was 50
days.

9. The company has 8-oz ,32-oz cups
of yogurt
• The company also manufactures 4-
oz cups and yogurt packed in tubes
for children

10. SALES was through two dominant
distribution channels – supermarkets and
natural food store

13. CAN THE COMPANY WANT
TO GROW NATUREVIEW
REVENUE TO 20 MILLION BY
THE 2001

14. Option -1
• Prons-
Great upside potential
For super markets hiring these products products in the
stores would attract higher-income, less price
Sensitive customers.
Cons-
High amount of risk
Advertising plan would cost $1.2 million per region per year

15. Option -2
• Prons-
32-oz. cups currently generated an above
average gross profit margin for Natureview
Less competiton
Cons-
High slotting fees
Increase SG&A cost

16. OPTION 3
• PRONS-
Strong relationship with retailers
Low sales and marketing expenses
Cons-
Potential conflicts
Revenue objectives would not be met at the
year end

17. Decision
• Either Option 1 or option 2 can be preferred
• Option 1 is more likely because of the high
returns

18. DISCLAIMER
created by,
kv yashwanth, PSG college of technology
coimbatore,during the marketing internship by
prof.Sameer Mathur ,IIM lucknow