...consumer market base is growing as sales had grown at 3% through supermarket and 20% through natural food stores. • High future growth expected in Children multipacks market segment as it is growing at 12.5%. Threats: • Yogurt market is very concentrated as top two controlling over 50% of the market. • Yogurt market has a limited revenue generation potential through channels other than supermarkets. • It has high S, G & A and marketing expenses. INTERNAL ANALYSIS Strengths: • Natureview needless number of distribution centers as its yogurt has longer shelf life 50 days. • It has a Strong branding in market. • Natureview product is more attractive to consumers because its recipe uses natural ingredient and no artificial thickeners. • Company has creative low cost guerilla marketing. • Strong relationship with brokers. Weaknesses: • Natureview has a limited marketing budget. • Natureview depends heavily on brokers for its product promotion and distribution. • Company has limited resources and staff. KEY MARKETING ISSUE Natureview needs to attain highest possible valuation to find a new VC or position itself for acquisition. To achieve that company has to increase revenue by over 50% before end of 2001 while maintaining premium brand positioning in marketplace. OBJECTIVES • Achieve short-term growth and increase sale volume to take revenues to 20 million by end of 2001. • Increase market share...
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...Case write-up: Natureview Farms Natureview´s Success Natureview Farms was founded in 1989 and is a small yogurt manufacturer selling refrigerated yogurt cups. Natureview has gained its success by differentiating from competitors with its all-natural recipes and long shelf life (50 days compared to competitors’ average of 30 days). It has grown its revenue from less than $100,000 to $13 million in 10 years. Because of their high quality products, great taste, natural ingredients, strong reputation and established channel strategy selling only in natural foods stores, they have developed into national distribution and shared leadership in this channel. Their marketing strategy is creative, low-cost “guerilla marketing” which has proven successful with the targeted channel. Part of Natureview’s success is also due to the building of strong relationships with the leading natural food retailers. Growth Strategies Despite its success and growth Natureview Farm has struggled to maintain a consistent level of profitability. In 1997 William Wagner, financial officer (CFO), arranged for an equity infusion from a Venture Capital (VC) company, and now the VC needs to cash out of its investment leaving Natureview management with two options: either find a new investor, or prepare for acquisition. For both options an increase in revenue is critical in order to gain the highest valuation of the company. The Natureview management therefore needs a plan to grow their revenue with over...
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...Natureview Farm- Case Analysis By 2001, Natureview Farm has to grow revenue by 50%. The marketing team at Nature View farm was tasked to make this formidable decision, which led them to consider three options. The glaring reality among these options is the consideration of entering the supermarket channel. However, the dilemma they face is the risk of ruining their relationships with the natural foods retailers and loyal natural foods customers because of the presumed betrayal of expanding into the supermarket channel. Natureview Farm accredits the natural foods retailers and customers to the tremendous success of what the company is today. Natural foods consumers value natural ingredients, high quality and taste. The unique way that Natureview creates its yogurt makes it extremely successful within the natural foods channels in a number of ways. It is simply made as organic and natural, using cows untreated with growth hormones, which leads to a higher shelf life than most of its competitors by 67%. Natureview is considered a major brand in the supermarket channel that attracted retailers like Whole Foods and Wild Oats. Yogurt also dominates the dairy portfolio in stores since it yielded the highest margins over the other dairy products overall. The organics foods market is expected to double in 2013, so as consumers become more interested in organic food, the natural foods retailers will reap in great benefits. Essentially 74% of organics products are bought by truly...
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...Natureview Farm Founded in 1989, Natureview Farm is the leading manufacturer of refrigerated cup yogurt in the natural foods channel with 24% market share. In the last 10 years, Natureview was able to grow its revenues from less than $100,000 to $13 million in 1999 by selling only 8 Oz and 32 Oz cups. In 1997 an equity infusion from a venture capital firm was needed in order to fund strategic investments. The deal was arranged and completed by Natureview’s CFO, Mr. Wagner. However the VC firm now needed to cash out of its investment, which forces Natureview to find another investor or position itself for acquisition. In order to achieve this though strategic and important goal the company needs to increase its revenues by more than 50%, from $ 13 Mio. to $ 20 Mio., by the end of 2001. For this reason, members of the management team have decided that the best way to achieve the revenue goal is either to expand into the supermarket channel or to increase their product line in the current channel of natural foods stores. Three options are being considered, two of which involve the supermarket channel and one remaining solely in the natural foods channel. Uncertainties exist with all options and many questions arose, such as how will natural foods stores and Naturview long-time partners react when placing the brand into supermarkets? Would natural foods stores replace Naturviews’ products with competitors’ lines? What potential conflicts could arise? Etc. There are many more important...
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...Natureview Farm success, growth strategy and financial analysis of the three options under consideration Natureview Farm yogurt originated in 1989 and was based on the family recipe that used only natural ingredients, and no artificial flavors or thickeners. That was one of the main points of differentiation from bigger competitors such as Dannon, Yoplait, and Breyers, and gave the Natureview farm yogurt the privilege of a niche producer. Moreover, Natureview Farm’s yogurt’s average shelf life was 50 days, 20 days longer than that of competitors. That way special production process and ingredients helped Natureview Farm to save on efficient supply chain that competitors needed to reduce shipping time to their distributors. Strong reputation for high quality and great taste, as well as high perception of natural ingredients helped the company to grow quickly to national distribution. The Natureview brand occupied the organic & natural segment that was not served adequately through the normal retailing chains at that time. Natureview Farm was considering two growth strategies: through Supermarket Channel and through Natural Foods Channel. Supermarket Channel usually dominated by large manufactures such as Dannon and Yoplait. The product takes just four steps before it gets to final consumer. In this channel an 8oz cup sells for $0.74. However, in order to sell its yogurt in the supermarket channel, Natureview farm has to pay a “slotting fee” for each flavor of...
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...MBA 6050 Marketing Management and Strategy College of Business Administration Bowling Green State University Spring 2014 Instructor: Dr. David A. Reid Phone: (419) 372-3410 Office: 285 Business Administration Building Fax: (419) 372-8062 E-Mail: dreid@bgsu.edu Class Hours: MW 1:30 - 2:45 p.m. (in BA116) Office Hours: MW 12:30 - 1:15 p.m.; 3:00 – 4:15 p.m., and other times by appointment “Marketing…is the whole business seen from the point of view of its final result, that is, from the customer’s point of view. Concern and responsibility for marketing must, therefore, permeate all areas of the enterprise.” - Peter F. Drucker, People and Performance, 1977 Required Textbook • Managing Marketing in the 21st Century: Developing and Implementing the Market Strategy, 3rd ed., by Noel Capon (www.axcesscapon.com, 2012). Available through www.axcesscapon.com (as a PDF file or in paperback), as well as Amazon.com or BN.com in either paperback or electronic format and in paperback through the University Bookstore. Required Cases • Harvard Business School Cases: listed in course outline. Cases are available for purchase online through Harvard Business School Press (Coursepack Link for purchasing cases listed below with list of cases). Introduction and Overview In their never-ending search for the ultimate secret to business success, many businesses continue to overlook the most fundamental premise of all business. While their search for...
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...MARKETING COURSE Articles Books & Chapters Cases Course Modules Online Courses Simulations 2012 MATERIALS Harvard Business Publishing serves the finest learning institutions worldwide with a comprehensive catalog of case studies, journal articles, books, and eLearning programs, including online courses and simulations. In addition to material from Harvard Business School and Harvard Business Review, we also offer course material from these renowned institutions and publications: Babson College Business Enterprise Trust Business Expert Press Business Horizons Magazine California Management Review Darden School of Business Design Management Institute HEC Montréal Centre for Case Studies Ivey School of Business International Institute for Management Development (IMD) IESE Business School INSEAD John F. Kennedy School of Government Kellogg School of Management Perseus Books Princeton University Press Rotman Magazine Stanford Graduate School of Business Sloan Management Review Social Enterprise Knowledge Network Thunderbird School of Global Management Tsinghua University University of Hong Kong Customer service is available 8 am to 6 pm ET, Monday through Friday. Phone: 1-800-545-7685 (1-617-783-7600 outside the U.S. and Canada) Tech support is available 8 am to 8 pm ET, Monday through Thursday, 8 am to 7 pm ET Friday. Phone: 1-800-810-8858 (1-617-783-7700 outside the U.S...
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