Naturefarm Case
CASE OVERVIEW
The case is about Natureview Farms, Inc., a small yogurt manufacturer that sold refrigerated cup yogurt developed from all natural ingredients. It has established a strong brand name known for its high quality and taste. The company produces 8-oz. cups, 32-oz. cups and multipack yogurt products in a variety of flavors. Currently it sold only through its established natural foods channel.
Now, the management team of the company wants to find a strategy to grow its revenues to $20 million by the end of 2001 from $13 million the company reported in 1999.
To fulfill this objective, the management comes up with three options that it could choose from among which two options require Natureview to enter the supermarket channel which is an unexploited area till now with potential benefits and risks and the third option was to stick to the natural foods channel with whom they have had a long term partnership with till now.
The senior management team thus evaluates the potential benefits and risks associated with each option that will help them meet the goal of revenue growth.
CASE ANALYSIS
Current Scenario:
Yogurt was consumed by approximately 40% of the U.S. population, with women comprising the majority of yogurt purchases.
The consumers mostly preferred 6-oz. and 8-oz. yogurt cups with the deciding factors of purchase being package type/size, taste, flavor, price, freshness, ingredients and whether the product was organic. The different variants are also available including multipacks.
Recently, children were also becoming the target for the fast growing multipacks. These included six-packs of 4-oz. cup servings and yogurt packaged in tubes. The yogurt industry is growing at a great pace and thus there lies a tremendous potential for various market players, also the top market player use supermarket channel for distribution and major top two players takes control of half of the market share.
Natureview Farms, Inc.
Natureview produced twelve
The case is about Natureview Farms, Inc., a small yogurt manufacturer that sold refrigerated cup yogurt developed from all natural ingredients. It has established a strong brand name known for its high quality and taste. The company produces 8-oz. cups, 32-oz. cups and multipack yogurt products in a variety of flavors. Currently it sold only through its established natural foods channel.
Now, the management team of the company wants to find a strategy to grow its revenues to $20 million by the end of 2001 from $13 million the company reported in 1999.
To fulfill this objective, the management comes up with three options that it could choose from among which two options require Natureview to enter the supermarket channel which is an unexploited area till now with potential benefits and risks and the third option was to stick to the natural foods channel with whom they have had a long term partnership with till now.
The senior management team thus evaluates the potential benefits and risks associated with each option that will help them meet the goal of revenue growth.
CASE ANALYSIS
Current Scenario:
Yogurt was consumed by approximately 40% of the U.S. population, with women comprising the majority of yogurt purchases.
The consumers mostly preferred 6-oz. and 8-oz. yogurt cups with the deciding factors of purchase being package type/size, taste, flavor, price, freshness, ingredients and whether the product was organic. The different variants are also available including multipacks.
Recently, children were also becoming the target for the fast growing multipacks. These included six-packs of 4-oz. cup servings and yogurt packaged in tubes. The yogurt industry is growing at a great pace and thus there lies a tremendous potential for various market players, also the top market player use supermarket channel for distribution and major top two players takes control of half of the market share.
Natureview Farms, Inc.
Natureview produced twelve