TO: Barry Landers, CEO
FROM: Marlena McWilliams & Randolph Scrapper
DATE: February 21, 2000
SUBJECT: Natureview Farm
Key Issues or Problems
Natureview is a natural organic Brand Name for yogurt. Since its inception it has relied on its uniqueness of taste, texture, long shelf life, and low cost marketing to grow to a 13 million dollar company. Currently it sells yogurt products only in the natural/organic food channels like Whole foods and Wild Oats, which in 1999 controlled only 3% of the yogurt sales in the US, but has a rapid growth rate of 20% per year. Going into the new age Natureview has had to undergo some financial changes; they must switch their investor profile and style to continue operations. However, in order to attract the right investor Natureview has to increase total revenues by 7 million dollars to 20 million dollars in a 12 month period. This increase in revenues will flow down to the profitability of the company as long as they pick the best option to help increase revenues and profits at the same time.
Christine Walker the Chief Marketing Officer must consider all three options qualitatively and quantitatively to ensure that the new strategy of either entering the supermarket industry or expanding into the children’s multipack will provide profitably for the company. Even more importantly this strategy must be transferable to their current business model without jeopardizing the relationships with the current customers, suppliers and distribution partners. Christine does not have an easy decision on her hands but she has analyzed the different options from her executive staff to determine the best result for the company moving forward.
Natureview lost an investor and needs to raise sales to entice a new investor. They are faced with three options to meet their need of total revenues equaling $20M.
Evaluation of Strategic Alternatives
|1 |Expand 6 SKUs of the 8-oz. size into eastern and western...