NatureView Farm, founded in 1989, rapidly grew its revenue from $100,000 to $13 million by offering unique, natural yogurt products without artificial thickeners. By 1999, the company faced challenges including the need for significant revenue growth and decisions on expanding into supermarket channels. The recommended strategic option is to expand its 8-oz yogurt offerings into supermarkets, capitalizing on high demand and gaining first mover advantage in the natural product market.

1. BY:-
VISHAL AGARWAL
IIIT BHUBANESWAR

2. BRIEF HISTORY
1989
Founded and manufactured in
Cabot,Vermont
1999
Company Revenue growth from
$100,000 to $ 13 million
2000
Expanded to different flavors in
different sizes

3. Natural Special
processes giveYoghurt
its uniqueness, no
artificial thickeners
Uses Milk from Cows
untreated with rGBH.
The company grew
quickly to national
distribution.
It has a larger shell life.
Aided by ‘Guerilla
Marketing’

4. ISSUES AND GOALS
• VC needed to cash out its investment.
• Needed to find a path to grow revenues
by over 50% before the end of 2001.
• Should Natureview Farm expand into
supermarket channel.

6. PRODUCT
- 12Yogurt flavours in 8-oz.
- 4Yogurt flavours in 32-0z
86%
14%
8-oz
32-oz
Started exploring kid multipack
yogurt product (4-oz).

7. 74%
9%
8%
9%
8-oz smaller cup
childrens multipack
32-oz cups
others
Yogurt Market share by packaging segment

8. Factors considered by Consumers when buyingYogurt products
TastePackaging
type/ size
Flavor Price
Organic
or not
Freshness

9. Yogurt Distribution
Channel , 1999
DOMINANT CHANNELS OTHER CHANNELS
97%
3%
Distribution Channel
Supermarkets
Natural Food
Stores
Warehouse
Clubs Convenience
Stores
Drug
Stores
Mass
Merchandisers

10. Yogurt Market share by Region, 1999
26%
22%
25%
27%
Northwest
Midwest
Southwest
West

11. Natureview Farm Income Statement, 1999

12. Yogurt Production Costs and Retail Prices by Channel

13. CONSUMER DISTRIBUTION
6,8 oz. pack Kid Pack 32 oz. pack
Targeted at Women
All flavours available
All Flavours available
Contains 6-4 oz., 8-2
oz. cups
Targeted Kids and
Moms
Plain andVanilla
favorable
Used for various
Dish preparations
For Heavy Consumer

14. Market Share by Brand, 1999

15. Length of channels to the market

16. STRENGTH
-Strong Brand
-Low Cost
-No Artificial thickeners used
-Longer shelf life
WEAKNESS
-No alternative financing available
-Lacks potential of taking higher risks
and costs
-Doubt on sales teams ability
OPPORTUNITY
Strong relationships with leading
natural food retailers
THREATS
Accumulation of Cash by Horizon from
IPO
Being dropped out of traditional
channel
SWOT

17. 3 OPTIONS

18. OPTIONS AND DILEMMA

19. OPTION 1:
Expand 6 SKUs of the 8-oz into eastern and western supermarket regions

20. OPTION 2:
Expand 4 SKUs of the 32-oz. size nationally into supermarket channel

21. OPTION 3:
Expand 2 SKUs of children multi-pack into the natural foods channel

22. Sales Projections for Natureviews Strategic options

28. Comparison of Options for the year 2001

29. DECISION
GO FOR OPTION 1
- In supermarket can expose to more range of customers.
- 8-oz Yogurt is the highest demand.
- Will have the first mover advantage of natural products to enter the
supermarkets.
- A bit risky but in long term will generate revenues upto 200%.

30. Created By: Vishal Agarwal , IIIT Bhubaneswar during a marketing
internship by Prof. Sameer Mathur, IIM Lucknow