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Natureview farm
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- 2. INTRODUCTION • Natureview Inc.is a small yogurt manufacturing company that was started in 1989.
- 3. HISTORY 1989 • Founded inVermont • Manufactured Yogurts 1999 • Profits rise up to $13 Million • Fruit on the bottom yogurt 2000 • Develop strong relations with natural food retailers • Introduce 12 new flavors.
- 4. PROGRESS Flavored yogurt production ledto brand expansion. Need of new Equipments arise. National Distribution and shared leadership in natural food channels. Aided by low cost “guerilla marketing” techniques it grew into a $13 million company.
- 5. ANALYSIS Strengths Strong Brand Low Cost NaturalProduct Weakness No alternative finances Poor sales team Threats Accumulation of cash by horizon from IPO Being dropped our of traditional channel Oppurtunities Strong relation with leading nature food retaileres
- 6. PROBLEMS VC needed to cashout of its investment. Goal was to make company a $20 million before 2001. Need of new Investors or alternative source of finances.
- 7. Question of thehour •Should Natureview expand to Supermarke t channels?
- 8. Nature View IncomeStatement in 1999
- 9. Problems to focus on. How toreach $20 million by 2001? Supermarkets or natural food stores? Analysis of senior management team 3 ways.
- 10. How to reach$20 million ? Increase Product sale Varied product line. Further increase shelf life to expand globally.
- 11. Yogurt Sales DistributionChannel •Supermarkets •Natural food retailorsMajor •Warehouse clubs •Drug storesMinor
- 12. Yogurt Market sharein 1999
- 13. Natural Food RetailorChannel Manufacturer Natural Food wholesaler(7%) Natural Food Distributor(9%) Natural Food retailor(35%) Consumer
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- 15. Yogurt Cost viaDiff Channels
- 16. 3 Ways Proposedby Marketing team First • Expand in Northeast and west supermarkets. • Introduce 6 SKU’s of 8oz Second • Expand in supermarkets nationally • Introduce 4 SKU’s of 32oz. Third • Stay in natural food channel. • Introduce 2 Children’s Multipack.
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- 19. COST ANALYSIS Total FixedCost for all three options remain same. Total cost= Total fixed cost + Advertising cost +Promotion cost + SKU cost.
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- 23. DISCLAIMER • Created byRishabh Gugnani, a student at MIT Manipal during an internship in Marketing Management under Prof Sameer Mathur (Marketing Profesor IIM Lucknow).