...Case: Natureview Farm It is recommended that Natureview should accept Option 1 and breaks into supermarket channel. First, by doing so, the company will be able to get higher revenue and meet the requirement more easily. Second, it will help Natureview to target new customers. Third, launch Option 3 can help Natureview to increase its brand value. Because Option 1 will expand six SKUs of 8-oz, it will bring the largest dollar and unit share of the refrigerated yogurt, which provide a great potential revenue in the future among three options. [Exhibit 1] Since most of yogurt is sold in supermarket, it would be the best place to promote the sales for Natureview. According to the previous companies’ experience, entering supermarket to sale yogurt can bring over 200% of revenue within two year. Therefore, with first mover advantage and our products premium quality, Natureview have strong success possibility following in the footsteps of successful companies. Choosing Option 1 can provide a great chance for Natureview to earn more new customers and build trust with them in a long-term. Because Natureview will expand its market area into a new market channel and meet more various customers in the future. [Exhibit 2] Since 46% of people prefer to purchase dairy products in supermarket and 97% of people will purchase yogurt in supermarket, expanding the market into supermarket will help Natureview have more chance to earn customers than before. If Natureview release multiple...
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...bought at a small health store • 29% at natural foods supermarket • 67% of US households said price was a barrier to their purchase of organic products • 58% said they will buy more organic products if price was less • 44% consumers said there was need for wider selection of organic products Option 1: • Expand SIX Stock Keeping Units (SKUs) of 8 oz. cups into one or two selected supermarkets because: 8 oz. cup has the largest dollar and unit share of the refrigerated yogurt market Has Revenue potential Other brands have also expanded into Supermarkets Growing trend in natural and organic foods in Supermarket A competitor is also considering expansion into Supermarket and only one brand can do it so if NatureView does...
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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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...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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...PROBLEM FORMULATION NATUREVIEW FARM CASE SUBMITTED BY: UNNIKRISHNAN V 1. Organization: Natureview farm, Inc. Protagonist : Walter Bellini, Vice president of sales. Jack Gottlieb, vice president of operations Kelly Riley, the assistant marketing director 2. The strategic marketing dimensions to the company’s situation : * Growing revenue of the firm from current value by the end of 2001 fiscal year to avoid cash out. * Expanding the market share. 3. What is the significance of the problem to the subject? * Strengths: Major and trusted brand in natural foods, Product Quality, Strong relationships in natural food market, Channel leader, Relatively Rapid revenue growth, longer product shelf Life. * Weakness: Owns Small portion of the yogurt market, not ventured into supermarket channel, High dependence on brokers for distribution and promotion, inefficient nature foods distribution channel. * Opportunities: Supermarket channel provides significant potential of growth, Natural food’s sales expected to grow by 20%, Opportunity for lowering customer cost. * Threats: Lack of Capital, Main competitor (Horizon) is getting stronger, No expertise in supermarket channel, Company may have to reposition, Risk Inter Product cannibalization. 4. What are the decision options? * To expand six SKUs of 8-oz product line into one or two selected supermarket channel regions. * Expand 4 SKUs of the...
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...Natureview case Natureview is in front of a key decision. Let’s make a pro’s/con’s analysis of the three proposed options: Option 1: Introducing 8oz. product line in two sjpermarket regions: PRO - taking advantage of a trend - first-mover advantage - strong revenue potential - growing market for organic products esteemed 20% growth - new type of customer CON - explotion of costs, distribution, administrative, marketing - slotting expenses - insufficient ressources - time pressure - brand equity damaged Option 2: expand 32 oz. nationwide PRO - higher gross profit margin - high market share - lower marketing investment as being niche product - nationwide coverage - possible first step for further expanding actions in the future CON - high slotting expenses - large investment in human ressources (sales forcé) - investment in distribution logistic - investment in manufacturing increase - possible conflicto with cannel partners Option 3: introducing children’s multipack in natural foods cannel PRO - high gross profitability - low investment in additional marketing and sales - enforce current distribution lines - excellent positioning for the new product - higher growing rates of this cannel - no additional functional ressources needed - reinforce brand equity CON - insufficient potential revenues - dependence on one channel - “missing the right moment” - increasing competition Recommendations: I would...
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...Based on the research, we recommend that NatureView expand two SKUs of children’s multipack into the natural solutions foods channel. Option 3 unlocks the most profitability for the firm while maintaining good relations with natural food relations. Although Options 1 and Option 2 represent a higher incremental net profit than Option 3, they also offer a significantly less profit margin than Option 3. Option 3, though doesn’t generate the same top-line as other options, represents the right strategy that NatureView should follow. Instead of entering a new channel, NatureView should use its strategic assets to develop a new product that matches the current market’s needs. By choosing Option 3, NatureView first solidifies its relationship in the natural foods channel. As 24% of total yogurt...
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...Instituto Tecnológico y de Estudios Superiores de Monterrey Campus Ciudad de México. Estrategia de Operaciones Benjamín Casar 971389 Angélica Hernández 1490033 Natureview Farm Tabla de Contenido Introducción ………………………………………………………………………………………………………………..2 Modelo de Negocio: 2 Identifica las razones por las que la red de abasto de Tamiflu fue incierta despues de haber cumplido con las backorders. 3 Valore los elementos a considerar en el manejo de reservas para una pandemia global. 3 Determine los retos para construir una cadena de suministro coordinada para el manejo de la estrategia antiviral global. 3 Actualización del Caso 4 Bibliografía…………………………………………………………………………………………………………………4 Introducción: El problema principal de Naturview es que tienen que realizar decisiones estratégicas de mercadotecnia para tener un crecimiento de $13,000,000.00 a $20,000,000.00 antes de llegar al final del 2001 Análisis FODA: Reconozca los factores de éxito de Natureview en términos de producto y canal comercial. En términos de producto: * El tiempo de vida en anaquel que es de 50 días contra los 30 días de los productos competidores. * Un producto totalmente natural y orgánico por completo, desde la leche utilizada de vacas que no han sido tratadas con rGBH, que es una hormona para incrementar la producción de leche, hasta los ingredientes adicionales con el que es preparado. * La fuerte reputación que tiene el producto por ser de gran calidad...
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...AIC Netbooks: Optimizing Product Assembly Diyora Hitesh V Regd No. PA1110 Abstract AIC Systems is a producer of printed circuit boards, focusing on motherboards and graphics cards for the personal computer industry. The company is involved in Original design manufacturer and so the company took an active role in innovating and designing each new generation of components. The firm decides to diversify its portfolio to include consumer electronics with a particular focus on mobile technology. The new netbook market provides an opportunity for AIC Systems to design and manufacture a branded product in the mobile electronics industry. The production manager has created an assembly line for producing the new netbooks. PROBLEM Now to meet the demand employees are working for 10 to 12 hours which is not sustainable for long time. The Chief Strategy Officer is expecting the demand of Netbook over 130,000 units in next one or two months. The problem faced by company is to meet the demand of Netbooks by improving the assembly method and by managing production activity. And also problem faced by company is of Labour efficiency Variance. ANALYSIS For increasing production of Netbook to cop up demand two options are available: First option: Increasing Shift. FOR: * Production will increase and also time of one shift is reduce to 8 hours. * Cost of installing new line will saved. * Optimum utilization of capacity...
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...Founded in 1989, Natureview Farm manufacturers and markets refrigerated cup yogurt under the Natureview Farm brand name. Natureview grew the company revenue from $100,000 in 1989 to over $13 million in 1999. In 1989 Natureview entered the market with two 8oz flavors including vanilla and plain. Based on early success, they continued to launch new 8oz flavors with fruit on the bottom and by the year 2000, they had twelve 8oz flavors representing 86% revenues and four flavors in 32-oz cups representing 14% revenues. Natureview has strong relationships with leading natural foods retailers, including Whole Foods and Wild Oats. Natureview Yogurt uses a family recipe that uses natural ingredients and a special process that gives the yogurt a smooth and creamy texture, without using the artificial thickeners that many major yogurt brands use. In addition, Natureview Farms has significantly higher shelf life of 50 days while many of its largest competitors are at 30 days. The business objective for Natureview is to reach $20 million in revenue by the end of 2001. To achieve this goal Natureview needs consider expanding into the supermarket channel Currently 97% of all yogurt consumed is distributed through the supermarket channel. 46% of organic food consumers purchase organic products at a supermarket. Supermarket chains continue to look for ways to offer more organic products to entice a growing consumer demand and minimize lost market share to other retail stores in the organic...
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...11/16/2009 MRK526MT CASE ANALYSIS-NATUREVIEW FARM SUBMITTED TO DONNA GEARY | BY MAHMOUD ISSA TABLE OF CONTENT EXECUTIVE SUMMERY THE PROBLEM CHANNEL ANALYSES SITUATION ANALYSES FINANCIAL ANALYSES ORGANIZATIONAL OBJECTIVES ALTERNATIVES/ OPTIONS RECOMMENDATION IMPLEMENTATION PLAN BIBLIOGRAPGHY PAGE 3 4,5 6,7 7,8 9 9 10-16 17 18 19 2 Executive Summery The Problem Natureviews main problem is that they have to make strategic marketing decisions to grow revenues to $20,000,000 from their current $13,000,000 before the end of the 2001 fiscal year. Channel Analyses Supermarket channel offers more potential for sales and revenue but also is very costly due to technology and slotting fee requirements and is also risk filled due to many unknown variables. However despite the risk, this channel provides the most exposure and market base. The Nature foods channel offers less risk, but only serves niche market of organic food purchasing consumers. It is cheaper to invest and is expected to grow by 20% annually Strength Long product shelf life Reputation of high quality, taste and natural ingredients Strong relationship with nature store retailers Opportunities Organic food market expected to grow to $13.3 billion in 2003 Nature store channel sales up 20% 12.5% growth in 4oz multipack Increase in consumer interest in organic foods Threats Competition(both in regular yogurt and organic yogurt) Increasing nature store channel demands on logistics or technology...
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...Greg Murtland Case 3 * The main issue in this case that Natureview Farm is that despite the fact that company has been able to remain profitable, they have been able to have a consistent level of profitability. Barry Landers, the CEO, wanted to move his company in a more positive direction. He wanted by 2001 to make sure the company could make $20 million in revenues, and asked his mangers to develop a strategy on how this would need to be done. So then the second problem had arisen of how the organization would be able to accomplish this audacious goal, causing the mangers to be divided on strategies on how to solve the problem. So the two main problems that Natureview is facing how can they generate an extra $20 million in revenue and what strategy would work best for them in order to reach this goal. * So Natureview is a yogurt company that was recently founded in 1989. The company in ten years was able to grow from $100,000 in revenues to $13 million. In 2000 Natureview produced 12 different flavored yogurts in their 8oz cups, which account for 86% of their revenues, and four 32oz cups, which make up the remaining 14%. The demographics of the people of typically purchase their products are found on the North Eastern and Western Coast. There average shopper are usually more educated and have higher earning incomes that allows them to purchase Natureview’s organic yogurts. Also of these people the majority (over 70%) of them our women who purchasing the products...
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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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