Natureview Farms Case Study Essay



Get big, or go home! This is certainly a saying that is observed in all diverse fields. Its meaning is than the five words it includes. Go big, as in whatever you do, take action to the most of your potential. Go home, signifies that you are throwing in the towel when ever things get tough, more or less, just quitting. My dad said those words to me while i was as well afraid to get on stage at my 1st ballet concierto, and he'd say those self same words towards the management team at Natureview Farm following reading to their current predicament. History and Company Status

For more than two decades, Natureview Farm's yogurt has been known for its one of a kind and creamy texture. The texture was created through a completely organic process. You’re able to send founder created the formula using only 100 % natural ingredients, as well as, cows that have certainly not been afflicted with any kind of growth hormones. This special process allowed for the shelf life with the product to get elongated form 30 days, that of the competitor, to an amazing 50 times. Natureview Plantation currently offers eight oz cups in twelve tastes, and thirty-two ounce cups in four flavors. The corporation is currently taking into consideration a children's multipack product that contains 4 ounce cups of.

Natureview Farm revenues have grown considerably in the past ten years. The company strives to succeed in the natural food channel depending on good relationships with their retailers. Natureview Farm building is viewed as a significant brand in such retailers as Entire Foods and Wild Oats. Annual income in the previous year, 1999, came to the conclusion at $13 million. Strategic Concerns

Much of Natureview Farm's success was accomplished because of an equity infusion via a endeavor capitalist firm. Unfortunately, the venture capitalist firm is definitely soon cashing out, leaving Natureview Plantation with a key decision to generate. The company will need to examine growth approaches that will business lead them to their objective. In Feb . of 2150, Chief monetary officer, Rick Wagner, made the decision that it will always be crucial to boost revenues from $13 mil to $20 million before the end of 2001. With this target in mind a team met up to discuss three very well thought out options. Summary of Options

Option one, and option two, involve a strategy to grow product lines in the supermarket funnel. Option 3, on the other hand, maintains the company faithful to its consumers simply by staying exclusively in the natural foods funnel. The initial option is to expand 6 stock keeping units (SKU's) of the eight ounce cup size in to 20 northeastern and european supermarkets. The other option will be to expand four SKU's of the 32 ounces product into 64 grocery stores nationwide. The next option will be to introduce two SKU's of your children's several ounce glass multipack in to natural meals stores that already promote Natureview Farm products. Stations

A huge portion of the decision that is being confronted is the decision whether or not to the supermarket channel. This kind of opportunity to be used to highlight a number of the pros and cons of each and every channel separately, as well as fairly. The following list displays the pros with a check mark plus the cons with an former mate.

Superstore Channel

2. Distributes to 97% coming from all yogurt consumers

* Reduces the cost to the buyers

2. Increases the gross annual market progress

* Upsurges the brand name awareness

5. Allows for an initial to market opportunity

5. Introduces slotting fees

5. Mandates quarterly or semi-annually advertising deals * Raises demand, which usually increases production and labor costs 2. Creates a need for need staff with familiarity with the market

Natural Foods Route

* Shows category regarding 20% yearly

2. Consists of consumers that are less selling price sensitive

5. Contains recently established interactions with stores * Holds consumers that are actually loyal towards the brand

* Charges a one-time free of charge case allotment per slot machine, per...

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