& Randolph Scrapper DATE: February 21‚ 2000 SUBJECT: Natureview Farm Key Issues or Problems Natureview is a natural organic Brand Name for yogurt. Since its inception it has relied on its uniqueness of taste‚ texture‚ long shelf life‚ and low cost marketing to grow to a 13 million dollar company. Currently it sells yogurt products only in the natural/organic food channels like Whole foods and Wild Oats‚ which in 1999 controlled only 3% of the yogurt sales in the US‚ but has a rapid growth rate
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Natureview Farm Case Team 9 (Raf‚ Sarah‚ Lynn‚ Jake‚ Emily) Objective • Natureview Farm wants to increase their revenue by to $20 million by end of 2001‚ but they are not wanting do not want to drastically change the company’s vision with this the new sale’s strategy. Recommendation • Our team is choosing recommends option one #1 for Natureview Farm to proceed with. This option will expand distribution into supermarkets with the 6 SKUs of the 8-oz. product line. Strengths • By choosing this option
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Natureview Farm Case Study Report Background Natureview Farm‚ a Vermont-based organic yogurt manufacturer with annual revenues of 13 mln. USD and 24% of market share‚ is a major brand in the natural foods channel. Company’s leadership in this channel was achieved through its emphasis on natural ingredients‚ strong reputation for quality and great taste‚ creative marketing techniques and established relationships with leading natural foods retailers. Company now faces financial pressure to grow
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HOW DO THE THREE OPTIONS COMPARE FINANCIALLY? YEARLY REVENUE‚ GROSS MARGIN‚ REQUIRED INVESTMENT AND PROFIT POTENTIAL. WHAT ARE THE STRATEGIC ADVANTAGES AND RISKS OF EACH OPTION? CHANNEL MANAGEMENT‚ CONFLICT ISSUES INVOLVED. The Problem Natureviews main problem is that they have to make strategic marketing decisions to grow revenues to $20‚000‚000 from their current $13‚000‚000 before the end of the 2001fiscal year. Channel Analyses Supermarket channel offers more potential for sales and revenue
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Netbook to cop up demand two options are available: First option: Increasing Shift. FOR: Production will increase and also time of one shift is reduce to 8 hours. Cost of installing new line will saved. Optimum utilization of capacity of plant. Fixed cost will not increase much. On regular interval expense is to be incurred. AGAINST: Training expense will increase. Variable cost will increase. Management is not ready to start third shift. Second option: Increasing a new line
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Natureview Farm Case Eric Ice Mktg 600 Nov 10th‚ 2013 Background Analysis Founded in 1989‚ Natureview Farm manufacturers and markets refrigerated cup yogurt under the Natureview Farm brand name. It just over 10 years‚ the company’s revenues have growth from $100‚000 in 1989 to over $13 million in 1999. In 1989‚ they entered the market with two 8oz flavors – vanilla and plain. Based on early success‚ they continued to launch new 8oz flavors with fruit on the bottom and by the year 2000
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organic yogurt is predicted to grow 20% per year from 2001 to 2006 at supermarkets and unit growth projections of 2% to 4% for the yogurt category. The natural foods channel was growing almost seven times faster than the supermarket channel. Natureview Farm‚ a Vermont-based organic yogurt manufacturer with annual revenues of 13 mln. USD and 24% of market share‚ is a major brand in the natural foods channel. Company’s leadership in this channel was achieved through its emphasis on natural ingredients
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Natureview case wrap -up At the core of the case is the question of whether Natureview should stay loyal to its current channel partners and accept the risk that the company might be limiting its long-term revenue potential. Alternatively‚ should Natureview enter a new channel that offers greater dollar revenue and profit potential‚ thus potentially alienating its current partners who helped get them where they are today‚ while stretching the organization beyond its current capabilities? In this
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Background Natureview Farm manufactures organic yogurt which it sells through natural food stores. Able to achieve steady profitability with the aid of strict financial controls and a VC capital infusion in the late nineties‚ the company now needs to grow revenues from $13M to $20M (54%) in less than two years to better position itself for alternative funding or possible acquisition. To solve this dilemma‚ senior management has narrowed their possible actions to three distinct options. Problem
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Natureview Farm Natureview Farm has a few basic goals in this case. Goal 1: Natureview needs to increase its revenues to $20 million before the end of 2001. Goal 2: Natureview must maintain its strong brand image. Goal 3: Natureview must not turn its back on its loyal customers‚ suppliers‚ and distributors. Strengths * Natureview produces yogurt with a family recipe that uses completely natural ingredients and is also organic. Natureview does not use milk from cows that are artificially
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