Natureview Farm Case Summary
Tam Minh Nguyen MKTG 6200 Summer 1 2015
Natureview Farm Summerise
Issue Identification:
Natureview Farm was founded in 1989 as a small yogurt manufacturer, after 10 years, their revenues had grown from less than $100.000 to $13 million. The issue was that Christine Walker, vice president of marketing and his team needs to find a path to grow the revenues to $20 million in the end of 2001 from Feb 2000.
Factors to Be Considered:
Yogurt used natural ingredients and a special process that made the shelf life grow up to 50 days. 86% revenue of company came from 8-oz cups of twelve refrigerated yogurt flavors. The rest came from four flavors in 32-oz cups. Yogurt was consumed by approximately 40% of the U.S. population, with women comprising the majority (over 70%) of yogurt purchases. 6 oz and 8 oz yogurt cups were the most popular product sizes, representing 74% of total category supermarket sales in US dollar (in 1999) with an increase of 3% vs. prior year. (any more information come from Ex2,3). The biggest competitors in Supermarket Channel were Dannon and Yoplait with 33% and 24% respectively. In Natural food channel, Natureview Farm dominated the market shares with 24% and Brown Cow ranked the second.
Options Available:
Option 1: Expand 6 SKU of the 8-oz. size …show more content…
However, the risk was very high with a comprehensive advertising plan (cost the company annual $1.2 million per region), the SG&A would increase by $320000 per year, $120000 would go towards additional marketing
Natureview Farm Summerise
Issue Identification:
Natureview Farm was founded in 1989 as a small yogurt manufacturer, after 10 years, their revenues had grown from less than $100.000 to $13 million. The issue was that Christine Walker, vice president of marketing and his team needs to find a path to grow the revenues to $20 million in the end of 2001 from Feb 2000.
Factors to Be Considered:
Yogurt used natural ingredients and a special process that made the shelf life grow up to 50 days. 86% revenue of company came from 8-oz cups of twelve refrigerated yogurt flavors. The rest came from four flavors in 32-oz cups. Yogurt was consumed by approximately 40% of the U.S. population, with women comprising the majority (over 70%) of yogurt purchases. 6 oz and 8 oz yogurt cups were the most popular product sizes, representing 74% of total category supermarket sales in US dollar (in 1999) with an increase of 3% vs. prior year. (any more information come from Ex2,3). The biggest competitors in Supermarket Channel were Dannon and Yoplait with 33% and 24% respectively. In Natural food channel, Natureview Farm dominated the market shares with 24% and Brown Cow ranked the second.
Options Available:
Option 1: Expand 6 SKU of the 8-oz. size …show more content…
However, the risk was very high with a comprehensive advertising plan (cost the company annual $1.2 million per region), the SG&A would increase by $320000 per year, $120000 would go towards additional marketing