The core focus of the case for us is to look at alternative strategies for going to market, which are the issues raised in questions 1, 2, 4, and 5. It is sometimes useful to create models in excel to help evaluate one’s options which I have referenced in 3a and thru the link included below.
1. How has Natureview succeeded in the natural foods channel? Nature View has succeeded in the natural foods channel through the use of brokers who sell its product (yogurt) to natural foods retailers. Their brokers have the direct relationship with the retailers, meaning: the retailers purchase the Natureview yogurt from the brokers and not directly from Natureview itself. Using this broker distribution channel system Natureview has succeeded in capturing 25% of the natural food market. This system has also enabled an increase in sales for its 8 ounce and 32 ounce products.
Perhaps more importantly, the health food channel was successful because of its success in reaching the target market. Health conscious women were Natureview’s target market and their brokers worked with retailers that had access to that demographic. More specifically they targeted women who earned high incomes, were education, and lived in the Northeastern or Western USA
2. What are the two primary types of growth strategies under consideration by Natureview? The first strategy was to remain in the natural/healthy foods channels of distribution and make little change to their current model. The second growth strategy was to enter select supermarkets for broader exposure.
The first strategy involved increasing the market share of Natureview in the natural foods market in which they were already present. They would have focused their marketing efforts on the target audience with greater intensity. Natureview would have to modify its product to satisfy the needs of this segment by using price differentiation and it would have to launch advertisement campaigns/promotions to support...
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