CASE ANALYSIS-NATUREVIEW FARM
SUBMITTED TO DONNA GEARY | BY MAHMOUD ISSA
TABLE OF CONTENT
EXECUTIVE SUMMERY THE PROBLEM CHANNEL ANALYSES SITUATION ANALYSES FINANCIAL ANALYSES ORGANIZATIONAL OBJECTIVES ALTERNATIVES/ OPTIONS RECOMMENDATION IMPLEMENTATION PLAN BIBLIOGRAPGHY
3 4,5 6,7 7,8 9 9 10-16 17 18 19
Executive Summery 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 2001 fiscal year. Channel Analyses Supermarket channel offers more potential for sales and revenue but also is very costly due to technology and slotting fee requirements and is also risk filled due to many unknown variables. However despite the risk, this channel provides the most exposure and market base. The Nature foods channel offers less risk, but only serves niche market of organic food purchasing consumers. It is cheaper to invest and is expected to grow by 20% annually Strength Long product shelf life Reputation of high quality, taste and natural ingredients Strong relationship with nature store retailers Opportunities Organic food market expected to grow to $13.3 billion in 2003 Nature store channel sales up 20% 12.5% growth in 4oz multipack Increase in consumer interest in organic foods Threats Competition(both in regular yogurt and organic yogurt) Increasing nature store channel demands on logistics or technology Increasingly price sensitive consumers due to economical slowdown
Weaknesses Small manufacture, low funds and revenue Relies on brokers that may not be adequate for supermarket channel Current marketing strategy based only on nature store channel
Organizational Objectives Grow revenues to $20,000,000 from their current $13,000,000 before the end of the 2001 fiscal year Alternatives/Options Option 1: Expand into the supermarket channel with 6 SKUs of 8oz yogurt in two regions Option 2: Expand into the supermarket channel with 4 SKUs of 32oz yogurt in all regions Option 3: Introduce 2 SKU of children multi pack into natural foods channel Recommendation - Option 3 due to: Low risk factors Low cost Take advantage of current relationships and growth of nature foods channel Implementation Plan Approval Meet with R&D, brokers, sales, retailers Product test and approval Product and promotion launch First status report Final yearend report 1 week nd rd 2 week – 3 week th 4 week nd 2 month th 6 month th 12 month st
The Problem Natureview Farm I was established in 1989 and since then in a span of just 10 years, Natureview farms has increased their annual revenues from $100,000 to $13,000,000. This growth was largely due to creating a tasty, flavourful, organic yogurt that niche consumers crave. In fact Natureview has been known for their reputation of high quality, natural ingredients, flavourful texture and great taste. Since Natureview is a small company, they had limited cash assets. So in 1997, Natureview open their doors to venture capital firms in order to receive funds that were desperately needed. About 3 years after Natureview began being funded by venture capital, they were troubled to learn that the venture capital firm had to withdraw and cash out their investment, leaving Natureview Farms with a lack strategic funding. In order to get funded with another venture capital firm and continue marketing efforts to maintain their leading 24% market share, Natureview Farms needed to become valuated by other possible venture capital investment firms. This means that they had to raise their revenue to $20,000,000 per year or they will have no choice but to consider being part of an acquisition. 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 2001 fiscal year. This is about a 54% increase, with will seems...
Bibliography: All statistical and strategically information in this report was retrieved from the following source: Fleming, Karen. "Natureview Farm". Brief Cases. Boston : Harvard Business Publishing , 2007.
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