Financial Analysis
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 Increasingly price sensitive consumers due to economical slowdown
Weaknesses Small manufacture, low funds and revenue Relies on brokers that may not be adequate for supermarket channel Current marketing strategy based only on nature store channel
Organizational Objectives Grow revenues to $20,000,000 from their current $13,000,000 before the end of the 2001 fiscal year Alternatives/Options Option 1: Expand into the supermarket channel with 6 SKUs of 8oz yogurt in two
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 Increasingly price sensitive consumers due to economical slowdown
Weaknesses Small manufacture, low funds and revenue Relies on brokers that may not be adequate for supermarket channel Current marketing strategy based only on nature store channel
Organizational Objectives Grow revenues to $20,000,000 from their current $13,000,000 before the end of the 2001 fiscal year Alternatives/Options Option 1: Expand into the supermarket channel with 6 SKUs of 8oz yogurt in two
Bibliography: All statistical and strategically information in this report was retrieved from the following source: Fleming, Karen. "Natureview Farm". Brief Cases. Boston : Harvard Business Publishing , 2007. 19