Case study nature view farm

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p
Presented by
SUSHANT KUMAR
CASE STUDY

2.  .
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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

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Back Bones
Christine Walker VP Marketing
JiM Wahner Cfo
Burry landers Ceo
Wlater Bellini VP sales

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5. Situation
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VC needs to cash
out of its
investment
Achieving 50%
revenue before
the end of 2001
Should
NatureView
farm expand into
super market?

6. •Natural food
channels
•Wholesale
club
•Low cost
guerilla
marketing
•Affordable•8 And 32 oz
Product price
PlacePromotion
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Marketing Mix

7. 14%
86%
Market Share of Products
32-oz
8-oz
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8. SWOT
analysis
strength
.strong brand
.low cost
oPPortunity
Strong
relationship
with retailers
Weakness
.No
alternative
financing
threats
Dropped out
from
traditional
channels
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Organic
Taste/
flavor
Ingredient
Packaging
Price
Marketing trend of yogurt PurChase

10. SUPERMARKET
97%
NATURAL FOOD STORE
3%
DISTRIBUTION CHANNELS
SUPERMARKET NATURAL FOOD STORE
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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. 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
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13. oPtion analysis
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Option1
Option3Option2

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.
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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
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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.
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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
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19. oPtion1(the Best)
• Long term advantages are high if properly
implemented
• Exposure to more range of customers.
• It exceeds the revenue objective.
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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%.
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Sushant kumar ,IITB
Marketing internship under
Prof. Sameer Mathur ,IIML