This document summarizes the history and growth of an organic yogurt company from 1989 to 2001. It was founded in Vermont in 1989 with plain and vanilla yogurts. By 1999, revenue had grown to $13 million and they expanded flavors. Market analysis showed the organic market was predicted to grow significantly. The company needed to choose an option to grow revenue to $20 million by 2001. Their strengths included their brand and use of natural ingredients. They chose to expand their highest demand 8oz yogurt line nationally to exceed their $20 million goal and generate 200% revenue growth.

2. 1989
• Founded in Cabot, Vermont.
• Entered the market with 8-oz Plain and 32-oz vanilla
flavour.
• Uses organic ingredients with longer shelf life of 50 days.
1999
• Company’s revenue growth from $100,000 to $13 Million.
• Started including fruit on the bottom yogurt.
2000
• Expanded to 12 flavours and multipack yogurt.

3.  Organic foods market predicted to grow from $6.5
Billion to 13.3 Billion in 4 years.
 Generally organic products customers tend to be
more educated and live in the Northeast and west.
 67% of households consider price as a barrier to
purchase these products.
 44% of consumers would like a wider selection of
organic products in supermarkets.
 Supermarkets are moving towards attracting new
customers by offering more organic products.

4.  Concentrated market, Only 4 competitors
control over 50% of the share.
 Supermarkets produce 97% of the total
sales with 3% annual growth.
 Natural food stores include 3% sales with
a 20% annual growth rate.
 Factors in purchasing decisions: Package
Type, flavour , freshness , ingredients.

5.  They have to make strategic marketing decisions to
grow revenues to $20 Million from their current $13
Million before the end of 2001.
 Target Market: Yogurt is consumed by 40% of the US
population. Among those 70% are women. Organic
dairy products are bought by 74% of heavy organic
buyers and 29% of light organic buyers.
 Attain highest possible valuation in order to secure new
investors or position itself for acquisition.

6. Strengths:
1.Strong Brand
2.Cost efficient
3.Usage of natural
ingredients.
4.Longer Shelf Life
Weakness:
1.No alternative financing
available.
2.Lacks potential of taking
higher risks and costs.
Opportunity:
-Strong Relationships with
leading natural foods
retailers.
Threats:
1.Accumulation of cash by
horizon from IPO
2.Being dropped out of
traditional channel.

14. Expand 4 SKU’s of the
32-oz product line
nationally.

18. Expand 2 SKU’s of a
children’s multipack into the
natural foods channel.

22.  Go with Option 1-
 Reach beyond the target objective of $20
Million revenue by the end of 2001with a
forecast of more than $31 Million.
 8-oz yogurt is the highest demand.
 Supermarkets can expose to more range of
customers.
 A bit risky but in the long term will generate
revenues of 200%

23. This case study was compiled in marketing
management Internship course under the
guidance of Prof. Sameer Mathur (IIM Lucknow)
 By – Simarpreet Singh Chawla
 Thapar University(2nd Year)