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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 committed organic food buyers who have a notion of being highly educated, older, and having a higher income than the status quo supermarket customer.
Natureview’s marketing team developed three strategic alternatives to accomplish the goal to double the revenue within the next year. The first option is to expand 6 SKU’s of the eight oz. cup into one or two supermarket channel regions.

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