Natureview Farm
Laura Wayman-Drummond
Marketing 5210
May 4, 2013
Natureview Farm Case Study
Overview
Natureview Farm, a small yogurt manufacturer, has performed very well and increased its revenues by more than 130 times in one decade. Despite this growth, they had struggled to maintain a consistent level of profitability and in 1997 had an equity infusion from a venture capital firm to fund strategic investments. However, the VC firm has now (2000) needed to cash out of its investment in Natureview. As a result, the president of Natureview Farm has made a goal for the company to increase revenue to $20 million by the end of 2001, up 53% from $13M end of 1999. This poses the issue of truly identifying the value and benefits of their current distribution channel, while exploring other alternatives to create value to the distribution of their product while increasing total revenue. Although its old business model was successful, the pressure to grow fast now required the company to make a decision between whether to stay in the natural foods channel or to enter selected supermarkets in selected regions.
There are several key issues that Natureview Farm faces within the distribution strategy for their yogurt. The company has traditionally focused on selling its yogurt in three different sizes, 4 ounce, 8 ounce, and 32 ounce servings, to natural foods retailers, which leaves Natureview Farm with a narrow, but growing target market. Natureview Farm holds 25% of the market share within the natural foods industry.
Target Customer
Natureview Farm’s current customers are health conscious women who earn higher incomes, are more educated, and live within the Northeastern or Western region of the United States. The women of these upper middle class to upper class families purchase the product for themselves, their children, and other members of their family. They are looking for a healthy snack or meal for themselves and their family. The segment
Marketing 5210
May 4, 2013
Natureview Farm Case Study
Overview
Natureview Farm, a small yogurt manufacturer, has performed very well and increased its revenues by more than 130 times in one decade. Despite this growth, they had struggled to maintain a consistent level of profitability and in 1997 had an equity infusion from a venture capital firm to fund strategic investments. However, the VC firm has now (2000) needed to cash out of its investment in Natureview. As a result, the president of Natureview Farm has made a goal for the company to increase revenue to $20 million by the end of 2001, up 53% from $13M end of 1999. This poses the issue of truly identifying the value and benefits of their current distribution channel, while exploring other alternatives to create value to the distribution of their product while increasing total revenue. Although its old business model was successful, the pressure to grow fast now required the company to make a decision between whether to stay in the natural foods channel or to enter selected supermarkets in selected regions.
There are several key issues that Natureview Farm faces within the distribution strategy for their yogurt. The company has traditionally focused on selling its yogurt in three different sizes, 4 ounce, 8 ounce, and 32 ounce servings, to natural foods retailers, which leaves Natureview Farm with a narrow, but growing target market. Natureview Farm holds 25% of the market share within the natural foods industry.
Target Customer
Natureview Farm’s current customers are health conscious women who earn higher incomes, are more educated, and live within the Northeastern or Western region of the United States. The women of these upper middle class to upper class families purchase the product for themselves, their children, and other members of their family. They are looking for a healthy snack or meal for themselves and their family. The segment