Nature View Farms Case Study

Topics: Organic food, Whole foods, Revenue Pages: 4 (1312 words) Published: November 15, 2010
Graham Keeley and Alex Haimson
Option 1
After analyzing real and projected data and environmental factors (competition, technology, economics) we found that moving into Supermarkets could have both positive and negative repercussions. Refraining to expand into supermarkets could put Natureview at a competitive disadvantage, considering there have been rumors of Natureview’s competitors expanding from Natural Food Stores to supermarkets. Supermarkets are potentially a huge market for organic yogurt, considering 97% of all yogurts were purchased through this channel and 46% of organic food consumers shop at supermarkets. Two natural food companies have already entered supermarkets and in doing so have increased their revenues by over 200%. Executing a first mover strategy would be crucial if this plan were to be implemented in order to gain brand equity from new consumers who are transitioning into the organic food market. Furthermore, because price inhibits 58% of consumers from buying organic products, Natureview would have to execute a competitive pricing strategy against non-organic yogurts. We recommend a neutral-positive strategy, because consumers identify price with quality and we want them to know our product is differentiated, yet reasonably priced for apprehensive consumers. By solely selling the top six selling 8oz yogurt, Natureview looks to target the largest market, considering 6oz and 8oz cups represented 74% of yogurt sales. Moving six product offerings into Supermarkets, would most certainly give Natureview a significant amount of touch points and recognition, but it is risky and expensive. If Natureview were to move their products into supermarkets, they would have to initially appease their current retailers (Wild Oats & Whole Foods), who would potentially be troubled by the fact they were selling their product for more than supermarkets would. Yogurt Sales have grown 20% a year over the past 5 years (supermarkets...
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