Background Natureview Farm manufactures organic yogurt which it sells through natural food stores. Able to achieve steady profitability with the aid of strict financial controls and a VC capital infusion in the late nineties‚ the company now needs to grow revenues from $13M to $20M (54%) in less than two years to better position itself for alternative funding or possible acquisition. To solve this dilemma‚ senior management has narrowed their possible actions to three distinct options. Problem
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Natureview Farm is the brand name organic yogurt company that began manufacturing in 1989. Currently it is the leading natural yogurt brand in the market because its sales make up 24% of the natural foods channel. Natureview has been successful for a few reasons. Firstly‚ Natureview uses milk from cows that are not treated with rGBH (artificial growth hormone that increases milk production). Because of this difference along with production techniques‚ Natureview is able to create a yogurt with
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expanding its operations into the supermarket channel to reach its revenue target. The company is faced with the strategic marketing decision to increase its revenues from $13 million to $20 million‚ almost a 54% increase‚ in two years before the end of the 2001. Nature view is considering following options to expand its operations to reach its revenue target of $20 million: Option 1: Nature view expands into the supermarket channel with 6 SKUs of the8oz product size. In the supermarket channel
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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
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Natureview Farm Case Faced a challenge – Had to find a path to grow revenues by over 50% before the end of 2001. Had $13 Million in the end of 1999‚ needed $20 Million by the end of 2001. Should they stay with supermarket channel or the Nature Foods Stores? Key to the Natureview yogurt flavor and texture was the family yogurt recipe using only high quality natural ingredients (no artificial) Had a strong relationship with leading natural foods retailers Women (who are single and/or have kids)
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2013 Natureview Farm Case Study Overview Natureview Farm‚ a small yogurt manufacturer‚ has performed very well and increased its revenues by more than 130 times in one decade. Despite this growth‚ they had struggled to maintain a consistent level of profitability and in 1997 had an equity infusion from a venture capital firm to fund strategic investments. However‚ the VC firm has now (2000) needed to cash out of its investment in Natureview. As a result‚ the president of Natureview Farm
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Strategic Risk Taking Introduction Risk pervades our daily life. Without taking risk we cannot progress. Every major advance in human civilization has been made possible because someone was willing to take risk and challenge the status quo. In man’s early days‚ physical and economic risk went hand in hand. Various dangers were involved even as man tried to book gains. The development of shipping trades facilitated the separation of economic and physical risk. Then came the Renaissance and
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Strategic Management Assignment 1 Table of contents Page 1. Introduction 2 2. Advantages of Strategic Planning 2.1. Financial Advantage 2 3. Disadvantage of Strategic Planning 3.1 Distortions and Deceptions 3 4. Friedman view of business social responsibility 3 5. Having a look at Sasol’s Social contribution 5 6. References 6 1. Introduction There are a number of advantages and disadvantages of strategic
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Current Situation Natureview Farms needs to grow revenue from $13 million to $20 million before the end of 2001‚ which is 22 months away. The company must reach this goal to attract new capital investments after the venture capital firm cashes out its investment. While revenue growth is the
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Natureview Farm Case Analysis – 5 November 2013 Natureview Farm is the leading manufacturer of refrigerated cup yogurt in the natural foods channel. From its founding in 1989 through 1999‚ Natureview grew its revenues from less than $100‚000 to over $13M by selling only 8oz and 32oz yogurt cups. However‚ in 1997‚ in order to fund strategic investments‚ Natureview received an equity infusion from a venture capital firm‚ which needs to cash out of its investment‚ forcing Natureview to either
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