Natureview Farm
Natureview Farm
Analyze the Case
Natureview Farm manufactures and markets refrigerated cup yogurt. Unlike most yogurts on the market, the company specializes in organic yogurt. The company uses natural ingredients without adding the artificial thickeners that are used by most yogurt brands. Furthermore, they use milk from cows that were not treated with rGBH, which increased the average shelf life to 50 days. All of these allowed Natureview Farm to succeed in the natural foods channel. Due to these natural ingredients, along with a strong reputation, the Natureview brand quickly grew in the natural foods channel. Furthermore, this growth was aided by their “guerilla marketing” technique, which was creative but low in cost. …show more content…
The first step in the analysis was to determine the total amount of costs associated with each option (See Appendix 3). After this step, we the total revenue and total profit was calculated (See Appendix 4). From this analysis it is evident that option three will not generate enough revenue to meet the desired $20 million. Therefore our options become limited to options one and two. Although we can see that option one generates the most revenue, the costs are extremely high, and therefore very risky. Due to this, the profit potential for option one and two become very close. The last financial analysis implemented was a pro forma analysis, looking at the projected growth of each of the options (See Appendix 5). As we can see with the expected growth of 12.5% option three will be the best option in the future, but it does not meet the time constraint the company is currently …show more content…
Furthermore, the financial analysis needs to be shown as well, in which it can easily be seen that option three is not viable. Also, it needs to be clearly explained that the large upfront investment of option one makes it not worth while. If integration into the supermarket chain is not a success, the investment lost would be $700,000 compared to $3 million. Marketing these products takes an entire different approach. For option two the company needs to capitalize on the fact that it is organic, and has a longer shelf life. With the larger product size of 32 ounces, the longer shelf life should add much value to the consumers. If the plan is a success, the company can then take the revenue that is generated from pursuing option two and venture into option three. When analyzing the pro forma, it is evident that option three is the best choice for the future. Therefore, the company can generate revenue from the supermarket chain, as well as increase their revenue and become a leader in the natural foods market. Finally, after the company has stabilized itself financially from these ventures, it can afford to take the risk associated with pursuing option one. This plan will allow the company to grow substantially, while not being too
Analyze the Case
Natureview Farm manufactures and markets refrigerated cup yogurt. Unlike most yogurts on the market, the company specializes in organic yogurt. The company uses natural ingredients without adding the artificial thickeners that are used by most yogurt brands. Furthermore, they use milk from cows that were not treated with rGBH, which increased the average shelf life to 50 days. All of these allowed Natureview Farm to succeed in the natural foods channel. Due to these natural ingredients, along with a strong reputation, the Natureview brand quickly grew in the natural foods channel. Furthermore, this growth was aided by their “guerilla marketing” technique, which was creative but low in cost. …show more content…
The first step in the analysis was to determine the total amount of costs associated with each option (See Appendix 3). After this step, we the total revenue and total profit was calculated (See Appendix 4). From this analysis it is evident that option three will not generate enough revenue to meet the desired $20 million. Therefore our options become limited to options one and two. Although we can see that option one generates the most revenue, the costs are extremely high, and therefore very risky. Due to this, the profit potential for option one and two become very close. The last financial analysis implemented was a pro forma analysis, looking at the projected growth of each of the options (See Appendix 5). As we can see with the expected growth of 12.5% option three will be the best option in the future, but it does not meet the time constraint the company is currently …show more content…
Furthermore, the financial analysis needs to be shown as well, in which it can easily be seen that option three is not viable. Also, it needs to be clearly explained that the large upfront investment of option one makes it not worth while. If integration into the supermarket chain is not a success, the investment lost would be $700,000 compared to $3 million. Marketing these products takes an entire different approach. For option two the company needs to capitalize on the fact that it is organic, and has a longer shelf life. With the larger product size of 32 ounces, the longer shelf life should add much value to the consumers. If the plan is a success, the company can then take the revenue that is generated from pursuing option two and venture into option three. When analyzing the pro forma, it is evident that option three is the best choice for the future. Therefore, the company can generate revenue from the supermarket chain, as well as increase their revenue and become a leader in the natural foods market. Finally, after the company has stabilized itself financially from these ventures, it can afford to take the risk associated with pursuing option one. This plan will allow the company to grow substantially, while not being too