For a marketing internship under Prof.Sameer Mathur,IIM Lucknow

1. NATUREVIEW FARM

2. Background information
• Founded in 1989 at Cabot, Vermont
• Manufactured and marketed cup yoghurt with
natural ingredients

3. 1999
Retail sales reached 1.8 billion dollars and
volume over 2.3 billion units

4. • Started exploring multipack products and
different flavors.
• Started developing relations with leading
natural foods retailers

5. Promotion
• Organic,natural, great taste and high quality
• Used creative low cost guerilla marketing

6. THE GOAL
Finding a path to grow revenue by over 50%
before the end of 2001.

7. THE QUESTION
Should Natureview expand into the super market
channel to meet its goal?

8. Purchase Criteria
• Packaging
• Taste
• Flavor
• Price
• Freshness
• Ingredients
• Organic/not?

9. Yoghurt market Share

11. Length of Channel to Market
Manufacturer Manufacturer
Distributor
Retailer
Consumer
Retailer
Consumer
Natural Foods
Wholesaler
Natural Foods Distributor
Supermarket channel Natural Foods channel

12. Market share by brand

14. OPTIONS
Three options proposed by the senior
management team

15. • Expand 6 SKUs of the 8-oz product line into one or two
selected supermarket channel regions
-Walter Bellini

16. Advantages
• Significant revenue potential of 8-oz cups
• Uniquely positioned in to captialize on growing
trend of organic and natural foods
• Significant first-mover advantage

17. Disadvantages
• Higher risks.
• High advertising, sales general and other
expenses.(increases by $320000 anually)

18. To expand 4 SKUs of the 32-oz size
nationally
-
JackGottileb

19. Advantages
• 32-oz cups generated above average
gross profit margin
• Fewer competitive offerings in this size
• Lower promotional expenses

20. Disadvantages
• Higher slotting expenses
• Requires sales personnel with experience
• Increases SG&A by $160000

21. To introduce two SKUs of a children’s
multi-pack into the natural foods
channel.
-Kelly Riley

22. Advantages
• Yoghurt-important product to natural foods
retailers
• Perfect positioning for children’s
multipacks
• Attractive financial potential

23. • Rapid growing natural foods channel
• No additional SG&A costs

24. Disadvantages
• The view of the management team-
potential channel conflict shouldn’t be the
deciding factor and Natureview could
always find ways to manage it.

25. OPTION 1
2000 2001
Increment 35,000,000 42,000,000
Revenue growth 35,000,000,000*0.74=$31,
080,000
42,000,000*0.74=$31,080,
000
Total revenue $38,900,000 $44,080,000
Expenses
Slotting fee $1,200,000 0
SG&A $200,000 $200,000
Marketing $120,000 $120,000
Advertising $2,400,000 $2,400,000
Broker’s fee $714,000 $856,800

26. OPTION 2
2000 2001
Increment 5,500,000 5,500,000
Revenue growth 5,500,000*2.7=$14,850,00
0
$15,147,000
Total revenue $27,850,000 $28,147,000
Expenses
Slotting fee $2,560,000 $0
SG&A $160,000 $160,000
Marketing $480,000 $480,000
Advertising $75,000 $75,000
Broker’s fee $407,000 $407,800

27. OPTION 3
2000 2001
Increment 1,800,000 1,800,000
Revenue growth 1,800,000*2.70=$14,850,0
00
$15,147,000
Total revenue $19,030,000 $28,147,000
Expenses
Slotting fee 0 0
SG&A 0 0
Marketing $250,000 $250,000
Broker’s fee $153,360 $176,364

28. Result
• My choice would be option 1 as it provides
the maximum revenue and helps achieve
the goal.
• Will utilize the benefits of moving into
supermarket before competitors