Preview

Nature View Case Study

Satisfactory Essays
Open Document
Open Document
270 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Nature View Case Study
Unlike the major players in the US yogurt selling brands-Dannon, Yoplait, and Beyers, Natureview used natural ingredients in its recipe for yogurt manufacturing, which became its USP in the natural yogurt foods market. As a best practice, it prepared yogurt from milk of cows untreated with rGBH , an artificial growth harmone misused by the major US brands talked above to increase milk production unnaturally. This best practice used by Natureview increased its shelf life to 50 days vis-à-vis 30 days of the top brands, enabling it to cut significantly on building multiple production plants. However, Natureview did not go for a trade-off with high quality and wow taste.
Therefore, Natureview’s yogurt became a big hit in the natural foods segment and facilitated it to liaise with big revenue churning natural food retailers like Whole Foods and Wild Oats, who also found its high quality and tasty natural yogurt immensely good as it was also based on creative, low-cost ‘guerilla marketing’ strategy. It offered higher margins over other dairy products. Over a period of time the natural food retailers became the niche and loyal customers of Natureview. The consumers were also loyal to Natureview’s yogurt as it was more health-supplementary. Besides, for more than a whopping 58% of US households, organic foods if lesser priced were in the highest priority. Natureview’s yogurt consumers rose in numbers majorly by dint of its excellent relationship and marketing activities synergistically with natural food retailers. By the year 1999 Natureview Farm captured 24% in the Natural Foods Channel and became the market leader in this

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Yogurt used natural ingredients and a special process that made the shelf life grow up to 50 days. 86% revenue of company came from 8-oz cups of twelve refrigerated yogurt flavors. The rest came from four flavors in 32-oz cups. Yogurt was consumed by approximately 40% of the U.S. population, with women comprising the majority (over 70%) of yogurt purchases. 6 oz and 8 oz yogurt cups were the most popular product sizes, representing 74% of total category supermarket sales in US dollar (in 1999) with an increase of 3% vs. prior year. (any more information come from Ex2,3). The biggest competitors in Supermarket Channel were Dannon and Yoplait with 33% and 24% respectively. In Natural food channel, Natureview Farm dominated the market shares with 24% and Brown Cow ranked the second.…

    • 599 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    week6final proposal

    • 927 Words
    • 4 Pages

    Taking into consideration the characteristics of a market including the quantity and strength of buyers and sellers, levels of competitiveness, product differentiation and the ability to enter and exit the market, the market structure of the dairy industry is a monopolistic competition. In fact Centennial produces some of its competitors’ products on site. The dairy industry is characterized by high product differentiation. While our private label does not capitalize on the market, our ability to acquire Sprouts will allow us to potentially become a monopoly of private label organics. With the established brand image of the company’s private label we will be able to enter into a new market.…

    • 927 Words
    • 4 Pages
    Better Essays
  • Best Essays

    Team Risky Business’s strategic recommendations for the Health & Wellness sector include expanding initiatives and educational programs associated with organic and gluten free lifestyles. Target already has brand exclusive organic lines and our team recommends making consumers more aware of the products offered as well as benefits their guests can reap from changing their lifestyles. We suggest increasing advertising in order to promote these product lines to a market that is increasingly more health conscious than ever before. As with any strategic option, there are fall out risks associated to this plan that include increased costs and a potential lack of interest or demands. The full analysis gives a more…

    • 9723 Words
    • 39 Pages
    Best Essays
  • Satisfactory Essays

    Whole Food Market has become the largest retailer of natural foods in the United States. The company's fundamental values are the commitment to promoting sustainable food production practices and social responsibility; meanwhile, they also generate significant profits to satisfy the requirements of the traditional bottom…

    • 243 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Whole foods has been a major natural and organic supermarket player since it was founded in 1980. It’s success can be linked to number of different factors, arguably the most valuable of which was the development of their “Whole Foods, Whole People, Whole Planet” slogan in the late 90’s. This was a key factor in their success, it outlines Whole foods most basic mission and has been the mantra in which all value, vision, and growth decisions are derived. The whole foods part of the slogan refers to their niche product lines. Whole Foods has a passion for organic and all natural inventory. In the United States there has been an increasing concern with health, healthy eating, and health sustainability, the consumption of organic…

    • 1414 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Grocery shopping in today’s society can be extremely confusing for most consumers; I have often pondered over which product to feed my children and if organic food is actually better than processed food. Although I have heard many people say organic food is a gimmick to get more of today’s consumer’s money, or that they just can not afford it; I argue that eating organic is a more healthy choice. “Organic food consumption is one of the fastest growing segments of U.S. domestic foodstuffs” (Crinnion 4).…

    • 1351 Words
    • 4 Pages
    Better Essays
  • Better Essays

    Dannon Case Analysis

    • 2112 Words
    • 9 Pages

    In 2007 and 2008, Dannon, the #2 yogurt provider, was losing valuable market share to its top competitor Yoplait. Despite the growth opportunity in the domestic U.S. yogurt market, Dannon’s growth had surprisingly slowed. At the end of 2008 Yoplait was the U.S. yogurt market leader with 35.4% of the market dollar share while Dannon only held 28.9% of the market. Yoplait held a competitive advantage over Dannon that gave it a huge leg-up.…

    • 2112 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    Price of substitutes plays a role in determining a company’s profitability. Organic food is priced at a premium to conventional food reflecting the high labor costs in cultivating the product. The price premium may be one reason why organic food has not become mainstream. Another reason is that consumers either lack education about its benefits (or don’t care) so that the price premium does not appear to be justified. However, when comparing upscale organic and prepared foods to competitors such as restaurants, the benefit/cost ratio appears more justified. Market research conducted shows that “20 percent of shoppers as dedicated to healthy eating”.(PRNEWSWIRE, 2013) These shoppers tend to be better educated, more affluent, couples or singles without children, and…

    • 1861 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Whole Foods Market Case 2

    • 874 Words
    • 3 Pages

    In my own words I would describe ‘natural foods’ as foods that are literally by definition, natural. Not processed, no chemicals, additives, and any other elements to produce the food. The natural foods market as a whole includes “natural” products, including “sustainably developed,” “grown under fair trade,” and “green friendly, which all form the definition of ‘natural foods’. When interpreting ‘natural foods’ with the above definition, I would conclude it to be a very good business definition. The opportunity offered by natural foods is endless in terms of business. Based on a market research, there is great motivation in purchases of natural products including: 66% health/nutrition, 38% taste, 30% food safety, 26% environment, and 16% availability. For organic food producers, their acreage grew significantly due to the high demand of these organic products and to take advantage of higher margins. Natural product producers benefitted versus a convention chemical-intensive system because of the price premiums and greater profits. Manufacturers and distributers of natural products need to develop specific and distinctive pipelines in order to maintain organic integrity through the distribution chain. Organic foods are more perishable than conventional foods so they require faster and more careful handling. The competition is slight in this regard, due to the specifics of organic product distribution offering more to the distributer. Retailers are offered the opportunity to sell these natural products which provides them with something people want. With organic foods increasing in popularity and consumption, retailers are benefiting tremendously with the sale of these goods.…

    • 874 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Natureview Case Analysis

    • 1242 Words
    • 5 Pages

    Natureview Farm is the leading manufacturer of refrigerated cup yogurt in the natural foods channel. From its founding in 1989 through 1999, Natureview grew its revenues from less than $100,000 to over $13M by selling only 8oz and 32oz yogurt cups. However, in 1997, in order to fund strategic investments, Natureview received an equity infusion from a venture capital firm, which needs to cash out of its investment, forcing Natureview to either find a new investor or position itself for acquisition. In either case, growth is needed, and revenues need to be increased from $13M to $20M by the end of 2001. The question is how. As such, the core problem facing Natureview is whether or not to expand beyond the natural foods stores channel and into the supermarket channel and how such a decision will impact its supply chain operations.…

    • 1242 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Gnc Holdings

    • 3403 Words
    • 14 Pages

    GNC was founded by David Shakarian in 1960s, and specialized in yogurt and other healthy food such as honey, grains, and “healthy sandwiches”. Due to increasing demand, GNC expanded stores throughout the United States during the 1970s. However, the emergence of other competitors in the external environment and poor management internally lead to a difficult period of time for GNC during the 80s. After Jerry Horn took over as President and implemented major changes in 1985, GNC had a fresh start and continued to grow. GNC is now the largest global specialty retailer of nutritional products: vitamin, mineral, herbal, and other specialty supplements as well as sports nutrition, diet, and energy products.…

    • 3403 Words
    • 14 Pages
    Good Essays
  • Powerful Essays

    Whole Foods

    • 1021 Words
    • 5 Pages

    * Whole Foods Market was founded in 1980 working with natural and healthy foods in Austin, Texas; it’s one of the world’s largest of natural and organic foods supermarkets. In 2009, the sales total $8 billion and had 289 stores in the U.S. The Whole Foods Market plans to come up with strategies to help improve the company but to do so understanding the core values plays a major role in the company’s planning. The strategies they want to improve the growth strategy, store location strategy, product line strategy, pricing, control expenses, and merchandising strategy. This company values keeping all its products natural meaning minimally processed, largely or completely free of artificial ingredients, preservatives, and other non-naturally occurring chemicals, and as near to their whole, natural state as possible.…

    • 1021 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    Whole Foods Market has received recognition as recent as January 27th 2011 when CNBC aired Supermarkets Inc: Inside a 500 Billion Money Machine. “Whole Foods is arguably the most influential, and by some measures, the most successful supermarket chain in the world. The specialty gourmet store has grown into a Fortune-300 company offering specialty foods and locally grown organic produce.1” CNBC goes on to state that even “Established brands like Safeway, Giant Eagle and Kroger are cultural icons as familiar as our own street names, but they are under constant attack from brilliant upstarts like Whole Foods…1” From the general supermarket industry Whole Foods Market breaks down into even a smaller specific industry which is the natural and organic foods industry. This industry focused on proving customers with natural foods which is defined as “foods that are minimally processed, largely or complexly free of artificial ingredients, preservatives and other non natural occurring ingredients; and near to their whole, natural state as possible.7.” Also “organic foods were a special subset of the natural foods category; to be labeled as organic, foods had to be grown and processed without the use of pesticides, antibiotics, hormones, synthetic chemicals, artificial fertilizers, preservatives, dyes or additives or generic engenerring.7” Also from the text book CEO John Mackey believes Whole Foods Market has been highly selective for finding the highest quality, least processed, most favorable and naturally preserved foods available.…

    • 1672 Words
    • 7 Pages
    Better Essays
  • Better Essays

    Gmos

    • 1379 Words
    • 6 Pages

    Currently in our country, there are endless amounts of issues surrounding the debate between organic and conventional foods. Organic and conventional foods differ in many ways; the substance, cost, appearance, health benefits and government interaction of these two types of foods differ from one another greatly, but also are considered extremely similar in the eyes of the average American consumer. Is organic food healthier for the human body? What is the actual difference between the two? Is organic food worth the cost? These are all questions American consumers are asking. In this essay, the similarities and differences of organic and non-organic food will be looked at in detail.…

    • 1379 Words
    • 6 Pages
    Better Essays
  • Good Essays

    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.…

    • 900 Words
    • 4 Pages
    Good Essays