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Natuerview farm case study

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Natureview farm

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Natuerview farm case study

  1. 1. 7/6/2016Sushant kumar 1 p Presented by SUSHANT KUMAR CASE STUDY
  2. 2.  . 7/6/2016Sushant Kumar 2 1989 .Founded and manufactured in cabot ,Vermont .Plain vanilla flavor 8-oz and 32-oz .Less than $100,000 revenue earned 1999 Revenue reached $13million from $100,000 .Fruit on bottom yogurt. 2000 Introduction of multipack yogurt
  3. 3. 7/6/2016Sushant Kumar 3 Back Bones Christine Walker VP Marketing Jim wahner cfo Burry landers ceo Wlater bellini vp sales
  4. 4. 7/6/2016Sushant Kumar 4
  5. 5. Situation 7/6/2016Sushant Kumar 5 VC needs to cash out of its investment Achieving 50% revenue before the end of 2001 Should NatureView farm expand into super market?
  6. 6. •Natural food channels •Wholesale club •Low cost guerilla marketing •Affordable•8 And 32 oz Product price PlacePromotion 7/6/2016Sushant Kumar 6 Marketing Mix
  7. 7. 14% 86% Market Share of Products 32-oz 8-oz 7/6/2016Sushant Kumar 7
  8. 8. SWOT analysis Strength .strong brand .low cost Opportunity Strong relationship with retailers WEAKNESS .No alternative financing THREATS Dropped out from traditional channels 7/6/2016Sushant Kumar 8
  9. 9. 7/6/2016Sushant Kumar 9 Organic Taste/ flavor Ingredient Packaging Price Marketing Trend of yogurt purchase
  10. 10. SUPERMARKET 97% NATURAL FOOD STORE 3% DISTRIBUTION CHANNELS SUPERMARKET NATURAL FOOD STORE 7/6/2016Sushant Kumar 10
  11. 11. 7/6/2016Sushant Kumar 11 33% 24% 23% 15% 5% SUPERMARKET DANNON YoPlait others private label columbe 24% 15% 7%19% 35% Natural food channel natureview farm brown cow white wave horizon others
  12. 12. Production cost supermarket channel Natural food channel Supermarket food channel Manufacturing cost 8-oz $0.88 $0.74 $0.31 32-oz $3.19 $2.70 $0.99 4-oz multipack $3.35 $2.85 $1.15 7/6/2016Sushant Kumar 12
  13. 13. Option Analysis 7/6/2016Sushant Kumar 13 Option1 Option3Option2
  14. 14. Option1(to expand 6 sku’s of the 8-oz product line into one or two selected supermarket channel) pros cons • 8-oz has highest incremental demand. • Potential to increase revenue. • High risk(marketing) • Advertising cost $1.2 mn per region per year. • Need to pay one time slotting fee. 7/6/2016Sushant Kumar 14
  15. 15. Option2(Expand 4 sku’s of the 32-oz product line nationally ) Pros Cons *Higher profit margin than 8-oz *lower promotional expanses *Doubt on sales team’s ability to achieve full national distribution in one year. *The 32-oz expansion option would increase SG&A expanse by $160,000 7/6/2016Sushant Kumar 15
  16. 16. Option3(Introduce 2 skus of a children multipack into the natural food channel) Pros Cons • The financial potential was very attractive . • The natural food channel was growing almost 7 times faster than the supermarket. • There were many conflict which manager could not determine. • Can not achieve the target objective of Nature view farm. 7/6/2016Sushant Kumar 16
  17. 17. Comparison of options for year 2001 Option1 Option2 Option3 Unit sales 42,000,000 5,500,000 27,247,200 Revenue 44,080,000 27,850,000 21,397,600 Net profit 27,247,200 19,934,500 17,130,637 7/6/2016Sushant KUmar 17
  18. 18. 7/6/2016Sushant Kumar 18
  19. 19. Option1(The Best) • Long term advantages are high if properly implemented • Exposure to more range of customers. • It exceeds the revenue objective. 7/6/2016Sushant Kumar 19
  20. 20. Conclusion • Reach beyond the target objective $20 million before the end of 2001 • More customer buys products from supermarket (46%) • “Guerilla marketing “ 8-oz -86% Revenue • 40%yogurt consumed by U.S. population (70% women) • Long term revenue generate around 200%. 7/6/2016Sushant Kumar 20
  21. 21. 7/6/2016Sushant Kumar 21
  22. 22. 7/6/2016Sushant Kumar 22 Sushant kumar ,IITB Marketing internship under Prof. Sameer Mathur ,IIML

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