NatureView Farm
NatureView Farm
Problem statement
In the beginning of 2000, Natureview Farm is challenged to grow its revenues by over 50% by end of 2001, from 13 to 20 million USD. To achieve the target, Natureview has to take the strategic decision whether to enter the supermarket channel, which would impact every aspect of its business or to stay with its traditional distributors - the natural food retailers. A major consequence of Natureview’s decision to enter the supermarket channel would be its influence on the existing market in the natural food stores, where the company is a leader with 24% market share.
Company information
Company was founded in 1989. They manufactured and marketed refrigerated cup yogurt under the Natureview Farm brand name. They built strong brand and became leader in the natural food stores (24% market share). During the past years they were developing good relationship with customers, suppliers and distribution partners. Main product characteristics are:
Family yogurt recipe developed by the company founder
Natural ingredients (they are using milk from cows untreated with rGBH)
Reputation for high quality and great taste
Longer shelf life, 50 days
First entered the market with 8-oz. and 32-oz. cup size of yogurt in two flavors – plan and vanilla and after early success added flavors to both sizes (the 8-oz flavor were developed by putting fruit puree into the button of the cup and adding plain yogurt on top).
Options
Option 1: Expand 6 SKUs of 8-oz. product line into one or two selected supermarket channel regions (proposed by Walter Bellini, vice president of sales)
Option 2: Expand 4 SKUs of 32-oz. product nationally (proposed by Jack Gottlieb, vice president of operations)
Option 3: Introduce 2 SKUs of a children multi-pack into the natural foods channel (proposed by Kelly Riley, assistant marketing director)
Option 1
Option 2
Option 3
Pros
Cons
Pros
Cons
Pros
Cons
- 8-oz. cups represent the largest
Problem statement
In the beginning of 2000, Natureview Farm is challenged to grow its revenues by over 50% by end of 2001, from 13 to 20 million USD. To achieve the target, Natureview has to take the strategic decision whether to enter the supermarket channel, which would impact every aspect of its business or to stay with its traditional distributors - the natural food retailers. A major consequence of Natureview’s decision to enter the supermarket channel would be its influence on the existing market in the natural food stores, where the company is a leader with 24% market share.
Company information
Company was founded in 1989. They manufactured and marketed refrigerated cup yogurt under the Natureview Farm brand name. They built strong brand and became leader in the natural food stores (24% market share). During the past years they were developing good relationship with customers, suppliers and distribution partners. Main product characteristics are:
Family yogurt recipe developed by the company founder
Natural ingredients (they are using milk from cows untreated with rGBH)
Reputation for high quality and great taste
Longer shelf life, 50 days
First entered the market with 8-oz. and 32-oz. cup size of yogurt in two flavors – plan and vanilla and after early success added flavors to both sizes (the 8-oz flavor were developed by putting fruit puree into the button of the cup and adding plain yogurt on top).
Options
Option 1: Expand 6 SKUs of 8-oz. product line into one or two selected supermarket channel regions (proposed by Walter Bellini, vice president of sales)
Option 2: Expand 4 SKUs of 32-oz. product nationally (proposed by Jack Gottlieb, vice president of operations)
Option 3: Introduce 2 SKUs of a children multi-pack into the natural foods channel (proposed by Kelly Riley, assistant marketing director)
Option 1
Option 2
Option 3
Pros
Cons
Pros
Cons
Pros
Cons
- 8-oz. cups represent the largest