Nature View Farm Case Analysis Essay Example
ANALYSIS OF NATUREVIEW FARM CASE :
SUBMITTED BY: MUZAMIL QUADIR ROLL NO. PB1108
Natureview Farm, a Vermont based producer of organic Yogurt with $13 million in revenues is the leading natural Yogurt brand(24% market share) sold into natural food stores.It has achieved this through its special Yogurt manufacturing process & through cultivating personal relationships with dairy buyers in the natural food channel set in 2000, when the company faces financial pressure to grow revenues to $20 million by the end of 2001, due to a planned exit by its venture capital investors. The intermediate decision point that the protogonist, Natureviews vice president of marketing, faces is whether to achieve this revenue growyh by expanding into supermarket channel.
INCOME STATEMENT, 1999
COST OF GOODS SOLD = 890000
GROSS PROFIT = 4810000
EXPENSES = 4550000
NET INCOME = 260000 YOGURT MARKET SHARE BY PACKAGING
8oz______________________________________74%(3%growth)
children multipack__________________________9%(12.5%growth)
32oz__________________________________________8%(2%growth)
Other__________________________________________9%(NC)
AVERAGE RETAIL PRICE($) PACKAGE | ARP IN NATURAL FOOD CHANNEL | ARP IN SUPERMARKET CHANNEL | 8oz | 0.88 | 0.74 | 32oz | 3.19 | 2.7 | 4oz multipack | 3.35 | 2.85 |
GOAL:
“Uniquely positioned the product to capitalize on the growing trend in natural and organic foods in supermarket”
MARKET NEWS:
“Bellini heard rumours that one of the Natureviews major natural competitor would soon try to expand into supermarket channel”
MARKET POTENTIAL:
A)Industry expert
SUBMITTED BY: MUZAMIL QUADIR ROLL NO. PB1108
Natureview Farm, a Vermont based producer of organic Yogurt with $13 million in revenues is the leading natural Yogurt brand(24% market share) sold into natural food stores.It has achieved this through its special Yogurt manufacturing process & through cultivating personal relationships with dairy buyers in the natural food channel set in 2000, when the company faces financial pressure to grow revenues to $20 million by the end of 2001, due to a planned exit by its venture capital investors. The intermediate decision point that the protogonist, Natureviews vice president of marketing, faces is whether to achieve this revenue growyh by expanding into supermarket channel.
INCOME STATEMENT, 1999
COST OF GOODS SOLD = 890000
GROSS PROFIT = 4810000
EXPENSES = 4550000
NET INCOME = 260000 YOGURT MARKET SHARE BY PACKAGING
8oz______________________________________74%(3%growth)
children multipack__________________________9%(12.5%growth)
32oz__________________________________________8%(2%growth)
Other__________________________________________9%(NC)
AVERAGE RETAIL PRICE($) PACKAGE | ARP IN NATURAL FOOD CHANNEL | ARP IN SUPERMARKET CHANNEL | 8oz | 0.88 | 0.74 | 32oz | 3.19 | 2.7 | 4oz multipack | 3.35 | 2.85 |
GOAL:
“Uniquely positioned the product to capitalize on the growing trend in natural and organic foods in supermarket”
MARKET NEWS:
“Bellini heard rumours that one of the Natureviews major natural competitor would soon try to expand into supermarket channel”
MARKET POTENTIAL:
A)Industry expert