This Presentation was created by Aashna Jalan – ICT Mumbai for a marketing internship under Prof. Sameer Mathur IIM Lucknow

1. Natureview
Farm
- Case
Analysis

2. Question
How to increase the
company’s revenue by
50% by the end of the
year ?

3. Why was the
increase needed ?

4. In 1997 Natureview got an equity infusion
from a venture capital (VC)
Now the VCs needed to cash out
Natureview had to find another investor or
position itself for acquisition
Increasing capital was necessary for highest
possible evaluation

5. Let’s rewind a little…

6. What is Natureview Farm ?

7. Point of Difference
•Cows Untreated with rGBH-
artificial growth hormone
•Natural Ingredients used
•Shelf life is almost a month
longer than other products
•Low Cost ‘Guerilla Marketing‘

8. Who’s Who ?
•CEO – Barry Landers
•CFO – Jim Wagner
•VP of Marketing – Christine
Walker

9. PRODUCTS !!
Sales
8-oz cups ( 12
flavours)
32-oz cups ( 4
flavours)
Childrens's
multipack
exploring

10. Factors
influencing
yogurt
purchase
Size
Taste
Flavor
Freshness
PRICE
Ingredients

14. Since Natural Food
Channels had more
intermediates as compared
to Supermarkets the pricing
was consequently affected

15. Average Retail Prices
Supermarket
8-oz $0.74
32-oz $2.70
4-oz Multipack
$2.85
Natural Food
• 8-oz $0.88
• 32-oz $3.19
• 4-oz Multipack $3.35

16. Coming back
to the
Question …..

17. Question
How to increase the
company’s revenue by
50% by the end of the
year ?

19. OPTION 1
By
Walter Bellini
VP of Sales

20. Expand six stock
keeping units(SKUs) of
8-oz product line into
one or two selected
supermarket channel
regions

21. •Why 6 SKUs ?
•Why 8-oz ?

22. Six SKUs struck the right balance between
having enough cups on the shelf to provide a
good shelf presence, while not incurring too
large a slotting expense
8-oz cause they
produce 86% of
the revenue

23. Strength
Two other brands had increased
revenue by 200% by entering
supermarkets
can achieve 1.5% share of
supermarket yogurt sales in a
year
Weakness
Competition for major brands
Large Marketing Budget
Opportunities
First Mover Advantage
Growth Prediction of organic
food in supermarkets by 20 %
Threat
Reaction of long term partners
Need for price concessions for
traditional channel stores
OPTION 1

24. Marketing Expences
Launch Advertising –
television, radio, outdoor,
print
$1.2
Million
Sales, general and
administrative expenses
$320,000
Sales Staff to mange
supermarket brokers
$200,000
Additional Marketing Staff $120,000

25. OPTION 2
By
Jack Gottlieb
VP of Operations

26. Expand four stock
keeping units(SKUs) of
32-oz size nationally

27. Strength
Gross Profit Margin for 32-oz was 7.6%
higher than 8-oz
Lower Market expenditure – 10 % of that
proposed for option1.
Weakness
Higher slotting expense
National Distribution in 12 months was
difficult
Need to higher additional personnel to
establish relations with supermarkets
Opportunities
Less Competition due to Natureview’s
higher shelf life
Less likely to appear as a threat to
competition
Threat
New users were unlikely to enter the
brand via multi-use size
May ruin the brand’s opportunity to
enter the supermarket channel properly
OPTION 2

28. OPTION 3
By
Kelly Rilley
Assistant Marketing Dir

29. Introduce two stock
keeping units(SKUs) of a
children’s multipack into
natural food channel

30. Strength
Protects the relationship between
company and Natural foods channel
The company was best equipped to
handle the sales and marketing of option
3 and expenses would be lower
Distribution was easy
Weakness
R&D needed to develop a multipack
product
Opportunities
Natural food channel was growing seven
times faster than the supermarket
channel
Threat
OPTION 3

31. Option Anticipated Incremental Unit Sales
1 35,000,000
2 5,500,000
3 1,800,000

32. The best option would
be option 1

33. WHY ?

34. 1)If you want to stay on top
get there FIRST
• Be the first organic food brand
to available at supermarkets
•Attract crowds with their
natural ingredients and long
shelf life

35. Organic Food Sales
Supermarket
Natural Food
Supermarkets
Small Health Food
Stores
2) Much Larger Target Audience

36. 3) Bridge the gap
Dollar Share No. of retailers in
the region
Northeast 26% 25
Midwest 22% 30
Southeast 25% 33
West 27% 17
Brokers could take advantage of their relationship
with the top 9 chains in West and 11 in the Northeast
– Regions with the highest dollar share of yogurt
sales

37. 4) Higher Revenue
•Riskier but increases revenue by 200 % (
looking at other two companies)
•Natureview will have 1.5% share of
supermarket yogurt sales in 1 year
•Unit Sales 636.3% higher than option 2
and 1944.4% higher than option 3

40. DISCLAIMER
This Presentation was created by Aashna Jalan – ICT Mumbai
for a marketing internship under Prof. Sameer Mathur IIM
Lucknow