The document analyzes the yoghurt market and options for Natureview Farm yoghurt brand. It finds that 8 oz cups have the largest market share at 74% and highest incremental demand. The strengths of Natureview are its use of natural ingredients and unique creamy texture. Weaknesses include lack of alternative financing. An opportunity is its relationships with natural food retailers which are growing 7 times faster than supermarkets. Two expansion options are considered: launching 8 oz cups in supermarkets or 32 oz multi-use sizes, but the 32 oz option faces more risks and uncertainties.

6. 74%
9%
8%
9%
YOGHURT MARKET SHARE
BY PACKAGING SEGMENT
8 oz. cups
Others
32 oz. cups
Children's
multipack

7. Northwest
Midwest
Southwest
Westt
26%
22%
25%
27%
Yogurt Market Share by
Region,1999

11.  Usage of natural ingredients
 Longer shelf life and low cost
 Strong brand
 No artificial thickeners used
Unique,smooth and creamy texture
of yogurt

12. WEAKNESSES
 No alternative financing available
 Lacks potential of taking higher risks and costs
 Doubt on sales team’s ability

13. Opportunity
Strong relationships with leading natural
foods retailers

14.  Accumulation of cash by Horizon from
IPO.
 Being dropped out of traditional channel.

19. • First mover as organic yogurt brand to
enter supermarket channel
• High potential to increase revenue
• 8-oz have highest incremental
demand

20. • First mover as organic yogurt brand
to enter supermarket channel
• High potential to increase revenue
• 8-oz have highest incremental demand

25. • Generate higher profit
margin than 8-oz size
• Strong competitive advantage:
longer shelf life
• Lower promotion expenses

26. • Doubt on claim of new users would readily
“enter the brand” via a multi-use size
• Doubt on sales team’s ability to achieve full
national distribution in 12 months
• The 32-oz. expansion option would increase
SG&A expense by $160,000

31. • The sales team was confident that they
could achieve distribution for the two SKUs.
• The financial potential was very attractive.
• The natural foods channel was growing
almost seven times faster than the
supermarket.

32. • There were many potential conflicts and
other uncertain factors that the manager
could not determine
• Can not achieve the target objective
of Natureview farm

36. .
OPTION 2!!!
• Natureview could not risk itself losing the trust of
the
natural food stores as they were expected to
grow 7 times faster than the supermarket stores.
• Natureview could not risk losing a significant
portion of market segment
• The revenue generation objective is fulfilled.
• The natural foods stores ,on the other hand, will
have a reason less to feel detered and violated as
the 32 oz occupied a smaller portion of market