Natureview farm

1. 7/6/2016Sushant kumar 1
p
Presented by
SUSHANT KUMAR
CASE STUDY

2.  .
7/6/2016Sushant Kumar 2
1989 .Founded and manufactured in cabot ,Vermont
.Plain vanilla flavor 8-oz and 32-oz
.Less than $100,000 revenue earned
1999
Revenue reached $13million from $100,000
.Fruit on bottom yogurt.
2000
Introduction of multipack yogurt

3. 7/6/2016Sushant Kumar 3
Back Bones
Christine Walker VP Marketing
Jim wahner cfo
Burry landers ceo
Wlater bellini vp sales

4. 7/6/2016Sushant Kumar 4

5. Situation
7/6/2016Sushant Kumar 5
VC needs to cash
out of its
investment
Achieving 50%
revenue before
the end of 2001
Should
NatureView
farm expand into
super market?

6. •Natural food
channels
•Wholesale
club
•Low cost
guerilla
marketing
•Affordable•8 And 32 oz
Product price
PlacePromotion
7/6/2016Sushant Kumar 6
Marketing Mix

7. 14%
86%
Market Share of Products
32-oz
8-oz
7/6/2016Sushant Kumar 7

8. SWOT
analysis
Strength
.strong brand
.low cost
Opportunity
Strong
relationship
with retailers
WEAKNESS
.No
alternative
financing
THREATS
Dropped out
from
traditional
channels
7/6/2016Sushant Kumar 8

9. 7/6/2016Sushant Kumar 9
Organic
Taste/
flavor
Ingredient
Packaging
Price
Marketing Trend of yogurt purchase

10. SUPERMARKET
97%
NATURAL FOOD STORE
3%
DISTRIBUTION CHANNELS
SUPERMARKET NATURAL FOOD STORE
7/6/2016Sushant Kumar 10

11. 7/6/2016Sushant Kumar 11
33%
24%
23%
15%
5%
SUPERMARKET
DANNON
YoPlait
others
private label
columbe
24%
15%
7%19%
35%
Natural food channel
natureview farm
brown cow
white wave
horizon
others

12. Production cost supermarket channel
Natural food
channel
Supermarket food
channel
Manufacturing
cost
8-oz $0.88 $0.74 $0.31
32-oz $3.19 $2.70 $0.99
4-oz multipack $3.35 $2.85 $1.15
7/6/2016Sushant Kumar 12

13. Option Analysis
7/6/2016Sushant Kumar 13
Option1
Option3Option2

14. Option1(to expand 6 sku’s of the 8-oz product line into one or two
selected supermarket channel)
pros cons
• 8-oz has highest incremental
demand.
• Potential to increase revenue.
• High risk(marketing)
• Advertising cost $1.2 mn per
region per year.
• Need to pay one time slotting
fee.
7/6/2016Sushant Kumar 14

15. Option2(Expand 4 sku’s of the 32-oz product line nationally )
Pros Cons
*Higher profit margin than 8-oz
*lower promotional expanses
*Doubt on sales team’s ability to
achieve full national distribution in one
year.
*The 32-oz expansion option would
increase SG&A expanse by $160,000
7/6/2016Sushant Kumar 15

16. Option3(Introduce 2 skus of a children multipack into the
natural food channel)
Pros Cons
• The financial potential was very
attractive .
• The natural food channel was
growing almost 7 times faster than
the supermarket.
• There were many conflict which
manager could not determine.
• Can not achieve the target objective
of Nature view farm.
7/6/2016Sushant Kumar 16

17. Comparison of options for year 2001
Option1 Option2 Option3
Unit sales 42,000,000 5,500,000 27,247,200
Revenue 44,080,000 27,850,000 21,397,600
Net profit 27,247,200 19,934,500 17,130,637
7/6/2016Sushant KUmar 17

18. 7/6/2016Sushant Kumar 18

19. Option1(The Best)
• Long term advantages are high if properly implemented
• Exposure to more range of customers.
• It exceeds the revenue objective.
7/6/2016Sushant Kumar 19

20. Conclusion
• Reach beyond the target objective $20 million before the
end of 2001
• More customer buys products from supermarket (46%)
• “Guerilla marketing “ 8-oz -86% Revenue
• 40%yogurt consumed by U.S. population (70% women)
• Long term revenue generate around 200%.
7/6/2016Sushant Kumar 20

21. 7/6/2016Sushant Kumar 21

22. 7/6/2016Sushant Kumar 22
Sushant kumar ,IITB
Marketing internship under
Prof. Sameer Mathur ,IIML