4. Goals and issues
• Need to find a path to grow its revenue by 50% by
the end of 2001.
• Should it expand into a supermarket channel?
• Vc needed to cash out its investment.
22. Benefits
1. Great Upside Potential
2. For supermarket adding these products would attract higher-income less
price-sensitive customers
3. Unit volume growth of organic yogurt at supermarkets of 20% per year
from 2001 to 2006
4. This option also has the highest incremental demand
Risks
1. Supporting 8-oz cup size would require quarterly trade promotions and a
meaningful marketing budget
2. Advertising plan would cost $1.2 million per region per year in addition to
the promotional ads expenses
3. SG&A expenses would increase by $320,000 annually
4. This option creates direct competition with national yogurt brands
24. Benefits
1. Potentially give higher average gross profit margin than 8-oz size
2. It also has stronger competitive advantage like longer shelf life and
lower marketing expenses
Risks
1. Doubt on claim of new users would readily “enter the brand” via a
multi-use size
2. Doubt on sales team’s ability to achieve full national distribution in
12 months
3. Needs to hire sales personnel and establish relationships with
supermarket brokers
4. The 32-oz. expansion option would increase SG&A expense by
$160,000
26. Benefits
1. Established leader in this channel
2. Perfect positioning for new multi-pack product
3. Long term the financial potential was very attractive
Risks
1. Established leader in this channel
2. Perfect positioning for new multi-pack product
3. Long term the financial potential was very attractive
27.
28.
29. We recommend Nature view to expand the
multi pack into supermarket channel in
Northeast and West The benefits would
include the follow:
• High growth (more than 12% from last year)
Minimized channel conflicts.
• Through this expansion, Nature view can
make it’s revenue goal by 2001.
• Supermarket will be selling these multi
packs relatively cheap which will increase
the sales.
• Higher expected annual demand.
30. A presentation made
by simran Tapia BIMTECH ,Greater Noida
for an internship done under Prof. Sameer
mathur , IIM lucknow.
