Naturalview Farms

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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
 most
 important
 goal,
 the
 directive
 from
 CEO
 Barry
  Landers
 is
 to
 make
 the
 right
 strategic
 choices
 to
 achieve
 that
 growth.
 
  Natureview
 departments
 have
 come
 up
 with
 3
 strategies
 to
 achieve
 at
 least
 54%
 revenue
 growth.
 
 
  1. Expand
 6
 SKUs
 of
 the
 8-­‐oz.
 product
 line
 into
 select
 regional
 supermarket
 channel
 regions
  2. Expand
 4
 SKUs
 of
 the
 32-­‐oz.
 size
 nationally
  3. Introduce
 2
 SKUs
 of
 a
 children’s
 multi-­‐pack
 into
 the
 natural
 foods
 channel
  We
 believe
 the
 best
 strategy
 for
 future
 growth
 is
 to
 expand
 into
 the
 supermarket
 channel
 starting
 with
 the
 top
  sellers
 in
 our
 8-­‐oz.
 product
 line.
 
 With
 the
 goal
 of
 optimum
 revenue
 growth
 to
 attract
 new
 capital
 to
  Natureview
 in
 less
 than
 two
 years,
 we
 cannot
 afford
 a
 slow
 growth
 strategy.
 
  Option
 1
 Analysis
 
  Advantages
  By
 expanding
 6
 SKUs
 of
 the
 8-­‐oz.
 product
 line
 into
 regional
 supermarket
 channels
 we
 will
 take
 advantage
 of
  the
 largest
 market
 for
 yogurt
 purchasers.
 
 Supermarkets
 are
 eager
 to
 expand
 their
 organic
 offerings.
 
 As
 one
  broker
 told
 VP
 of
 Sales
 Walter
 Bellini,
 chains
 are
 afraid
 of
 losing
 market
 share
 to
 other
 channels,
 and
 believe
  that
 offering
 more
 organic
 products
 will
 attract
 higher-­‐income
 customers.
 
 The
 supermarket
 channel
 offers
  Natureview
 the
 greatest
 growth
 potential.
  • • • Supermarkets
 sold
 97%
 of
 all
 yogurt
 consumed
 last
 year
  6
 &
 8-­‐oz.
 cup
 sales
 account
 for
 74%
 of
 category
 sales
  Experts
 predict
 organic
 yogurt
 sales
 at
 supermarkets
 to
 grow
 20%
 

Natureview
 Farms
 Case
 Study
 

Entering
 the
 supermarket
 channel
 with
 the
 associated
 increase
 in
 advertising
 support
 we
 could
 achieve
 a
 1.5%
  share
 of
 the
 supermarket
 channel
 with
 in
 the
 year
 (1999
 supermarket
 channel
 sales
 were
 over
 $1.74
 billion).
 
  That
 incremental
 increase
 in
 sales
 could
 be
 worth
 $26
 million
 in
 new
 revenue
 for
 the
 company,
 and
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