The Future of Natureview Farm|
Natureview Farm and its management are at a juncture where growth is a must. The strategy and decisions used during this important juncture can have lasting effects on Natureview. This article will examine how Natureview succeeded in the natural foods channel, what the strategic advantages and risks of the three options presented along with management and conflict issues and finally making an informed decision on how Natureview should proceed.
Natureview Farms further penetration into the natural foods channel occurred when Jim Wagner, hired in 1996 recommended that Natureview needed an infusion of cash to fund strategic investments through a venture capital firm. Natureview used this opportunity along with the family yogurt recipe of all natural ingredients and special process and help from its brokers to boost the company’s growth. Natureview’s management aligned the company in a niche market where the product sold itself among natural food shoppers. The products health-promoting qualities were usually more important to consumers than the price in the purchasing decision.
Natureview was able to grow their business from less than $100,000 to $13 million by diversifying their 8oz yogurt to twelve refrigerated flavors and four flavors in the 32oz cups accounting for 86% and 14% revenue respectively. Natureview has enjoyed great success in the natural foods channel because they built a reputation of providing high quality products with higher shelf life (50 days of freshness compared to 30 days from their competitors) and strong relationships with leading natural foods retailers such as Whole Foods and Wild Oats. Christine Walker, vice president of marketing had in her arsenal three options displayed in chart below she would need to analyze and choose one to present to management for approval. | Strategic Advantages| Risk|
Option I| * Good shelf presence with variety| * Highest level of...