A detailed analysis of the Natureview Farm Inc, in taking a major business decision by using case method.

1. HARVARD BUSINESS CASE

2. HISTORY
1989 Founded
Natureview Farm
Inc., a small yogurt
manufacturer, in
Cabot, Vermont.
Entered the market
with 8 oz. and 32-
oz. cup sizes of
yogurt.
1999
Natureview Farm’s
revenues had
grown from less
than $100,000 to
$13 million.
Expanded its
product offerings
by producing “fruit
on the bottom”
yogurt.
2000
Natureview Farm
produced 12
refrigerated yogurt
flavors in 8-oz. cups
and 4 flavors in 32-
oz. cups.
The company had
also started
exploring multipack
yogurt products
(children’s 4-oz.
cups and yogurt
packaged in tubes)

3. THE PEOPLE INVOLVED

4. JIM
WAGNER,
CFO
KELLY RILEY,
Asst.
Marketing
Director
BARRY
LANDERS,
CEO
WALTER
BELLINI,
VP-Sales
JACK
GOTTLIEB,
VP-
Operations
CHRISTINE
WALKER,
VP-
Marketing
TOP
MANAGEMENT

5. YOGURT – THEIR PRODUCT

6. PRODUCT MIX
8-ounce (oz.)
• 12refrigerated
yogurt flavors
• Contributes
86% revenues
32-ounce (oz.)
• 4 refrigerated
yogurt flavors
• Contributes
14% revenues
Children’s 4-
ounce (oz.)
• Multi-pack
yogurt
packaged in
tubes

7. SWOT ANALYSIS
• Usage of natural ingredients
• Unique smooth, creamy texture without artificial thickeners
• Average shelf life for 50 days
• Strong reputation for high quality and great taste
• Major brand in the natural foods channel, offering low prices
STRENGTHS
• Lack of alternative financing after VC firm cashed out
• Not developed enough to generate the consumer demand
necessary to meet volume requirements
• Doubt on Sale’s teams ability
WEAKNESSES

8. SWOT ANALYSIS
• Expand its product offerings to help increase revenues
• Strong relationships with leading natural foods retailers
• Build a strong brand equity in the supermarket channel
OPPORTUNITIES
• Increasing revenues being critical in order to attain the highest
possible valuation
• Heavy dependence on broker’s knowledge of promotional and
merchandising requirements
• Risk of being dropped from the traditional channel
THREATS

9. TASK AHEAD - TO GROW
NATUREVIEW’S
REVENUES TO $20 MILLION BEFORE
THE END OF 2001

10. QUESTIONS TO BE ASKED?
1. Has the Natureview management found
another investor after the VC firm cashed out?
2. Can Natureview find a path to grow its
revenues by over 50% ($20 million) before the
end of 2001?
3. Should Natureview expand into Supermarket
channel?

11. DECISION

12. MARKET SHARE BASED ON PACKAGING
74%
9%
8%
9%
PACKAGING
8 ounce (oz.)
32 ounce (oz.)
Children’s 4-ounce (oz.)
Others

13. LENGTH OF CHANNEL TO MARKET

14. DISTRIBUTION BASED ON CHANNELS
97%
3%
CHANNEL
Supermarket
Natural Food Store

15. MARKET SHARE BASED ON BRANDS
33%
24%
15%
5%
23%
SUPERMARKET
Danon
Yoplait
Private Label
Columb
Others

16. MARKET SHARE BASED ON BRANDS
24%
19%
15%
7%
35%
NATURAL FOODS CHANNEL
Natureview Farm
Horizon Organic
Brown Cow
White Wave
Others

17. PRODUCTION COSTS & RETAIL PRICES BY CHANNEL
p

18. OPTIONS & DECISIONS

19. •EXPAND 6 SKUs OF
THE 8OZ PRODUCT
LINE INTO ONE OR
TWO
SUPERMARKET
CHANNEL REGIONS

20. PROS CONS

23. •EXPAND 4 SKU’S
OF THE 32 OZ.
PRODUCT LINE
NATIONALLY INTO
SUPERMARKET
REGIONS

24. PROS CONS
Very challenging to
distribute nationally.
Higher slotting fees
due to national
distribution.
Fewer competitive
offering in this size
and lesser
promotional
expenses.
32oz cups generate
an above average
gross margin.

27. •EXPAND 2 SKUs OF
CHILDREN’S
MULTIPACK INTO
NATURAL FOOD
CHANNEL

28. PROS CONS

31. WHICH
ONE TO
CHOOSE?

32. DECISION?

33. OPTION 1
I CONSIDER OPTION 1 AS
THE BEST CHOICE DUE TO
THE FOLLOWING
REASONS

34. HIGH

35. HIGH INVESTOR CONFIDENCE

37. SUSTAINABLE GROWTH

38. DISCLAIMER
CREATED BY ABHINAV.S (SSN CHENNAI), DURING A
MARKETING INTERNSHIP UNDER THE SUPERVISION OF
PROF.SAMEER MATHUR (IIM LUCKNOW).