2. INTRODUCTION
Founded in 1989
Manufacturer and Marketer of Refrigerated Cup Yogurt
Differentiators: - All Natural Ingredients - Longer Shelf Life (50 days) -
Reputation for high quality and great taste
Key Success Factor: - Strong Brand - Guerrilla Marketing - Strong
Relationship and Distributors
3. NATURAL/ORGANIC MARKET
TRENDS
Organic Food market is predicted to grow from $6.5 Billion to $13.3
Billion over 4 years.
Generally Organic Food customers tend to be more educated,
earn higher incomes, be older and live in the Northeast and West.
67% of households consider price as a barrier to purchase organic
food products.
44% of customers would like a wider selection of organic products
in supermarket.
Supermarkets are moving toward attracting new customers by
offering more organic products.
4. YOGURT MARKET TRENDS
Top 4 Competitors control over 50% market share
Supermarkets – 97% of total sales (3% annual growth)
Natural food stores – 3% of total sales (20% annual growth)
Factors in purchasing decision: Package type/size, flavour, price,
freshness, ingredients, organic
5. CHALLENGE
Identify path to grow revenue by over 50% from $13 Million in 1999 to
$20 Million at the end of 2001
Goal: Attain highest possible valuation in order to secure new
investors or position itself for acquisition.
6. OPTION 1
Expand 6 SKUs of the 8oz product line into one or two selected
supermarket channel regions.
Pros: -8oz cups represent largest dollar and unit share of market. -
Supermarkets fear losing market share to natural food competitors. -
Other natural food brands have successfully expanded to
supermarkets.
Cons: -Highest level of competitive trade promotion and marketing
spend. -Possible channel conflict between supermarkets and
natural food stores. -Little experience in dealing with supermarket
chains.
7. OPTION 2
Expand 4 SKUs of the 32oz product line nationally
Pros: -32oz cups generate an above average gross profit margin. -
Fewer competitive offering in this size. -Lower promotional expense
than Option 1.
Cons: -Higher slotting fees due to national distribution. -National
distribution will be challenging within 12 months. -Possible channel
conflict between supermarkets and natural food stores.
8. OPTION 3
Expand 2 SKUs of the children’s multi pack into the natural food channel
Pros:
-Natureview has strong relationship with leading natural food channel
retailers.
-Financially attractive.
-More time to prepare the company for moving into supermarket channel.
Cons:
-Fast growth of natural food channel will lead to demands equal to those of
supermarkets.
-Miss opportunity to enter supermarket channel before competitors.
9. RECOMME NDATION
Pursue Option 1
Higher Revenue
Higher investor’s confidence
Accelerating growth rate
Market penetration
❖ Choose 6 best flavors that were sold from
natural food.
❖ Hire talent knowledgeable of supermarket
channel.
❖ Start to develop relationships with
supermarket distributors.
10. Disclaimer
This Case Study was made by Bliss Sinha of BIT Mesra
during a marketing internship by Prof. Sameer
Mathur, IIM Lucknow.