Natureview Yogurt
Natureview Farm
Natureview Farm has a few basic goals in this case. Goal 1: Natureview needs to increase its revenues to $20 million before the end of 2001. Goal 2: Natureview must maintain its strong brand image. Goal 3: Natureview must not turn its back on its loyal customers, suppliers, and distributors.
Strengths
* Natureview produces yogurt with a family recipe that uses completely natural ingredients and is also organic. Natureview does not use milk from cows that are artificially enhanced with hormones. * Natureview yogurt has an average shelf life of 50 days, which is significantly higher than the competition’s shelf life. * Natureview deploys low-cost guerilla marketing. * Natureview is the leader in market share for yogurt in the Natural Foods Channel, holding 24% of the market share. * Strong brand image.
Weaknesses
* Natureview’s retail prices are significantly higher than the yogurt options in supermarkets. * Natureview currently only offers single 8-ounce cups and 32-ounce cups of yogurt. Natureview does not offer multipack yogurt products. * Natureview sells in a niche market of consumers who want organic yogurt. * Natureview must deal with a longer distribution channel compared with companies who operate in the supermarkets.
Opportunities
* Natureview operates in the organic foods market, which was predicted to grow from $6.5 billion in 1999 to $13.3 billion in 2003. * Organic yogurt was predicted to grow 20 percent per year from 2001 to 2006. * One product Natureview does not produce, multipacks, represented 9 percent of total yogurt sales in supermarkets, and was growing by 12.5 percent per year. * Natureview does not sell in supermarkets, but 97 percent of all yogurt consumed is bought in supermarkets. Furthermore, 46 percent of organic food customers bought organic products at supermarkets, compared to 29 percent who bought organic products at natural foods
Natureview Farm has a few basic goals in this case. Goal 1: Natureview needs to increase its revenues to $20 million before the end of 2001. Goal 2: Natureview must maintain its strong brand image. Goal 3: Natureview must not turn its back on its loyal customers, suppliers, and distributors.
Strengths
* Natureview produces yogurt with a family recipe that uses completely natural ingredients and is also organic. Natureview does not use milk from cows that are artificially enhanced with hormones. * Natureview yogurt has an average shelf life of 50 days, which is significantly higher than the competition’s shelf life. * Natureview deploys low-cost guerilla marketing. * Natureview is the leader in market share for yogurt in the Natural Foods Channel, holding 24% of the market share. * Strong brand image.
Weaknesses
* Natureview’s retail prices are significantly higher than the yogurt options in supermarkets. * Natureview currently only offers single 8-ounce cups and 32-ounce cups of yogurt. Natureview does not offer multipack yogurt products. * Natureview sells in a niche market of consumers who want organic yogurt. * Natureview must deal with a longer distribution channel compared with companies who operate in the supermarkets.
Opportunities
* Natureview operates in the organic foods market, which was predicted to grow from $6.5 billion in 1999 to $13.3 billion in 2003. * Organic yogurt was predicted to grow 20 percent per year from 2001 to 2006. * One product Natureview does not produce, multipacks, represented 9 percent of total yogurt sales in supermarkets, and was growing by 12.5 percent per year. * Natureview does not sell in supermarkets, but 97 percent of all yogurt consumed is bought in supermarkets. Furthermore, 46 percent of organic food customers bought organic products at supermarkets, compared to 29 percent who bought organic products at natural foods