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HG
A home delivery of fresh and healthy options
B y S u y a s h K a r k a r e
NatureviewFarmCase Study
NATUREV IEW FARM
Founded in 1989, Natureview Farmmanufactured and marketed refrigeratedcup yogurt under the Nature View Farmbrand name.
HISTORY
NATUREV IEW FARM
1. Strong Brand2. Low Cost3. National distribution with natural food channels4. Strong relationship with distributors
SUCCESS MANTRA
NATUREV IEW FARM
1.Natural Ingredients
2.Long Shelf Life
3.Reputation for high quality and good taste
WHAT MAKES ITDIFFERENT
NATUREV IEW FARM
1989 : Founded in Cabot, Vermont with $100,000 revenue : 8 oz. and 32 oz. in plain and vanilla flavor
1999 : Revenue grew from $100,000 to $13 million
2000 :Expand to 12 yogurt flavors and multi pack yogurt (for children)
TIMELINE
NATUREV IEW FARM
1. VC need to cash out its investments so search for new investorand possibility of acquisition
2. Need to find a path to grow revenues by over 50% before 2001
3. Whether or not expand to supermarket?
4. How to achieve highest possible valuation of the company?
ISSUES
THE 4PS
PRODUCT
1. Natural Yogurt8 oz. size with 12
flavors 2. 32 oz. size with
4 flavors
Affordable accordingto its channel
1.Natural FoodChannel
2.Wholesale Club3.National Retailer
Channel4.Drug Store
5.Convinience Store
1.Retail Level2.Wholesale Level3.Distributor Level4.Low Cost Guerilla
MArketing
PRICE PLACE PROMOTION
Revenues 2000*Started exploring kid multipack
S W O T A N A L Y S I S
S T R E N G T H
W E A K N E S S
T H R E A T S
O P P O R T U N I T Y
Strong brand; low cost; no artificial thickeners;unique, smooth and creamy texture; longershelf life
No alternative financing available; doubt onsales team's ability; lacks potential of takinghigh risks
Strong relationships with leading natural foodsretailers
Accumulation of cash by horizon from IPO; beingdropped out of traditional channel
Distribution Channel
Market Share By Packaging Segment
Market Share By Region
SupermarketChannel
Manufacturer
Distributor
Retailer
Consumer
NaturalFoods Channel
Manufacturer
Natural Foods Wholesaler
Natural Foods Distributor
Retailer
Customer
Market Share By Brand
Supermarket Channel Natural Foods Channel
OPTIONSAVAILABLE
OPTION 1 OPTION 2 OPTION 31.Expand in northeastand west supermarket
region2.Bring in the 6 SKUs
of the 8-oz. size
1.Expand insupermarket
nationally2.Bring in the 4 SKUs
of 32-oz size
1.Stay in natural foodchannel
2.Introduce 2 childrenmultipacks
Option 1
PROS 8 oz have highest incremental demandHigh potential to increase revenueFirst mover as organic yogurt brand toenter into super market channel
CONS High risk & high cost marketingRequire quarterly trade promotionsAdvertising plan would cost $1.2million per region per yearSG&A expenses increase by $320000annuallyNeed to pay one time slotting fee
Option 2
PROS Generate higher profit margin than 8-oz. sizeStrong competitive advantage; longer shelflifeLower promotion expenses
CONS Doubt on claim of new users would readilyenter the brand via multi use sizeDoubt on sales team ability to achieve fullnational distribution in 12 monthsNeeds to hire sales personnel and establishrelationships with supermarket brokersThe 32-oz. expansion option wouldincrease SG&A expense by $160000
Option 3
PROS The sales team was confident that they couldachieve distribution for 2 SKUsFinancial potential was very attractiveIt would yield the strongest profitcontribution of all the strategies underconsideration The natural foods channel was growing seventimes faster than the supermarket
CONS Many potential conflicts and otheruncertain factors that the manager couldnot determineCan not achieve the target objective ofNatureview Farm
WHAT TO DO
People are accessing onlinetravel apps per second in
Australia alone.
250
Go for Option 1
Reach beyond the target revenue of $20 million by
end 2001
8-oz. yogurt is the highest demand of market
Can expose to more range of customers in
supermarket
Will have the first mover advantages of natural
product to enter supermarket
A bit risky but in long term will generate revenue of
200%
People are accessing onlinetravel apps per second in
Australia alone.
N N A T U R E V I E W F A R MT H E
C R E A T E D B Y :
S U Y A S H K A R K A R E
I I T K
M A R K E T I N G M A N A G E M E N T
P R O F . S A M E E R M A T H U R
I I M L U C K N O W
THANK YOU