Natureview farm case analysis
Company background
1989: founded – revenue $100 K – yogurt products. Introduced 2 flavors
1996: Jim Wagner hired to steady profits
1997: CFO Jim Wagner got VC capital infused capital in 1999
Today February 2000: annual revenue is $13M in 1999. Total 12 flavors in 8 Oz and 4 flavors in 32 Oz.
VC to cash out at the end of 2001. Revenue needs to grow to $20M.
Product profile
Emphasis on natural ingredients and its strong reputation for quality and great taste
No artificial thickeners and rGBH mixed mil
Comparing to the other products’ 30 days shelf life, Natureview’s yogurt will remain fresh for 50 days
8 Oz has 12 flavors and 32 Oz 4 flavors.
Customer and competition Customer
Brand sensitive
Natural foods customer
Taste savvy
Less price sensitive
Woman (single and with kids) take 74% market share
Customer loves Natureview yogurt
Competition
Main competitor
Recent IPO
Flush with Cash
Bigger than Natureview
Already uses supermarket channel
SWOT
Strengths
Major and trusted brand in natural foods
Product quality
Strong relationships in natural food market
Channel leader
Relatively rapid revenue growth
Longer product shelf life
Weaknesses
Owns small portion of the yogurt market
Not ventured into supermarket channel
High dependence on brokers for distribution and promotion
Inefficient nature foods distribution channel
Opportunities
Supermarket channel provides significant potential of growth
Natural food’s sales expected to grow by 20%
Opportunity for lowering customer cost
Threats
Lack of capital
Main competitor (Horizon) is getting stronger
No expertise in supermarket channel
Company may have to reposition
Risk Inter Product cannibalization
Problem definition
Its problem is that they have to make strategic marketing decisions to grow revenues to $20M from their current $13M before the end of the 2001 fiscal year.
Market Topology The Yogurt Market
8 Oz cups and smaller : 74%
Children’s
1989: founded – revenue $100 K – yogurt products. Introduced 2 flavors
1996: Jim Wagner hired to steady profits
1997: CFO Jim Wagner got VC capital infused capital in 1999
Today February 2000: annual revenue is $13M in 1999. Total 12 flavors in 8 Oz and 4 flavors in 32 Oz.
VC to cash out at the end of 2001. Revenue needs to grow to $20M.
Product profile
Emphasis on natural ingredients and its strong reputation for quality and great taste
No artificial thickeners and rGBH mixed mil
Comparing to the other products’ 30 days shelf life, Natureview’s yogurt will remain fresh for 50 days
8 Oz has 12 flavors and 32 Oz 4 flavors.
Customer and competition Customer
Brand sensitive
Natural foods customer
Taste savvy
Less price sensitive
Woman (single and with kids) take 74% market share
Customer loves Natureview yogurt
Competition
Main competitor
Recent IPO
Flush with Cash
Bigger than Natureview
Already uses supermarket channel
SWOT
Strengths
Major and trusted brand in natural foods
Product quality
Strong relationships in natural food market
Channel leader
Relatively rapid revenue growth
Longer product shelf life
Weaknesses
Owns small portion of the yogurt market
Not ventured into supermarket channel
High dependence on brokers for distribution and promotion
Inefficient nature foods distribution channel
Opportunities
Supermarket channel provides significant potential of growth
Natural food’s sales expected to grow by 20%
Opportunity for lowering customer cost
Threats
Lack of capital
Main competitor (Horizon) is getting stronger
No expertise in supermarket channel
Company may have to reposition
Risk Inter Product cannibalization
Problem definition
Its problem is that they have to make strategic marketing decisions to grow revenues to $20M from their current $13M before the end of the 2001 fiscal year.
Market Topology The Yogurt Market
8 Oz cups and smaller : 74%
Children’s