Natureview Anaysis

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Natureview Farm is the brand name organic yogurt company that began manufacturing in 1989. Currently it is the leading natural yogurt brand in the market because its sales make up 24% of the natural foods channel. Natureview has been successful for a few reasons. Firstly, Natureview uses milk from cows that are not treated with rGBH (artificial growth hormone that increases milk production). Because of this difference along with production techniques, Natureview is able to create a yogurt with the shelf life of 50 days. This is 20 days longer than their larger competitors. Also, due to the longer shelf life they are able to have fewer production plants allowing them to save on cost. Secondly, because Natureviews emphasis is on natural ingredients they have built a strong reputation for high quality and great taste. Natureview also used “Guerilla Marketing” or innovative unconventional, and low cost ways to get their brand name to natural food stores like Whole foods and Wild Oats. This has allowed them to build strong relationships with natural food channels and increase their revenues from $100,000 to $13 million over the past 10 years. Finally, Natureview has been able to cover all segments of the market. For example, they offer a 32oz size package for the heavy user (8% of the market with 2% growth), 8oz package for the users who primarily are looking for a healthy snack or lunch alternative (74% of the market with 3% growth), and the 4oz and 2oz packages that target children and parents who wanted a healthy (less messy) snack for their children (9% of the market with 12.5% growth). Natureview is faced with a difficult decision. They need to grow their revenue to $20 million by the end of 2001. They have three options which all offer great benefits as well as risks. Option 1 is to choose six of the top selling yogurts from their brand and integrate the 8oz line into the traditional supermarket channel in one or two channel regions. The benefits to...
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