refrigerated yogurt flavors in 8-oz cup and four flavors in 32-oz cups. The company also planned to produce children’s multipack yogurt with 4-oz cups. As a major brand in the natural foods channel‚ Natureview Farm had developed strong relationships with leading natural foods retailers‚ including the chains Whole Foods ($1.57 billion revenues in 1999) and Wild Oats ($721 million revenues). The goal of Natureview Farm is to achieve its revenue to $20 million in two years before the end of 2001
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by a husband and wife team‚ Lee and Mas Ling. They had a dream of setting up a café where customers could experience organically grown food in regular dishes. They wanted to give local diners the opportunity to enjoy some western dishes and for tourists to sample some traditional dishes from Singapore. They did their own market research and found that food outlets offering organic
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established natural foods channel. Now‚ the management team of the company wants to find a strategy to grow its revenues to $20 million by the end of 2001 from $13 million the company reported in 1999. To fulfill this objective‚ the management comes up with three options that it could choose from among which two options require Natureview to enter the supermarket channel which is an unexploited area till now with potential benefits and risks and the third option was to stick to the natural foods channel with
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important juncture can have lasting effects on Natureview. This article will examine how Natureview succeeded in the natural foods channel‚ what the strategic advantages and risks of the three options presented along with management and conflict issues and finally making an informed decision on how Natureview should proceed. Natureview Farms further penetration into the natural foods channel occurred when Jim Wagner‚ hired in 1996 recommended that Natureview needed an infusion of cash to fund strategic
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vitamins‚ B1‚ B2 and niacin. OMG Active Cereal is especially added omega-3 and zinc which improve the teenager immunity. Current Market Economic factors The CS Company is a leader in the natural products industry. We are a market leader in all natural food products including a variety of cereals‚ shakes‚ crackers‚ and snack bars. We had an estimated industry income of $4.78 million last year. The life cycle stage for this industry sector is the Growth phase‚ as individual rates and employment rates.
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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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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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Currently‚ 97% of all yogurt consumed is distributed through supermarkets ‚ representing a large consumer base and revenue generation opportunities. Research shows that 46% of organic food consumers purchase organic products at a supermarket . As consumers are increasingly interested in purchasing organic foods‚ supermarket chains will continue to look for ways to offer more organic products to avoid losing market share to other retail channels. Industry experts predict that supermarkets will grow
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increase its annual revenue to $20 million in two years. With a solid relationship with its current‚ successful strategy in the natural foods channel it is considering expanding into the supermarket channel. Conversely‚ it does not want to hurt the company brand it has created as a premium yogurt brand in the natural foods market and betray those loyal‚ natural foods customers who made their business what it is today. In the case‚ Natureview is considering three options to expand its operations to
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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
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