HG

A home delivery of fresh and healthy options

B y S u y a s h K a r k a r e

NatureviewFarmCase Study

NATUREV IEW FARM

Founded in 1989, Natureview Farmmanufactured and marketed refrigeratedcup yogurt under the Nature View Farmbrand name.

HISTORY

NATUREV IEW FARM

1. Strong Brand2. Low Cost3. National distribution with natural food channels4. Strong relationship with distributors

SUCCESS MANTRA

NATUREV IEW FARM

1.Natural Ingredients

2.Long Shelf Life

3.Reputation for high quality and good taste

WHAT MAKES ITDIFFERENT

NATUREV IEW FARM

1989 : Founded in Cabot, Vermont with $100,000 revenue : 8 oz. and 32 oz. in plain and vanilla flavor

1999 : Revenue grew from $100,000 to $13 million

2000 :Expand to 12 yogurt flavors and multi pack yogurt (for children)

TIMELINE

NATUREV IEW FARM

1. VC need to cash out its investments so search for new investorand possibility of acquisition

2. Need to find a path to grow revenues by over 50% before 2001

3. Whether or not expand to supermarket?

4. How to achieve highest possible valuation of the company?

ISSUES

THE 4PS

PRODUCT

1. Natural Yogurt8 oz. size with 12

flavors 2. 32 oz. size with

4 flavors

Affordable accordingto its channel

1.Natural FoodChannel

2.Wholesale Club3.National Retailer

Channel4.Drug Store

5.Convinience Store

1.Retail Level2.Wholesale Level3.Distributor Level4.Low Cost Guerilla

MArketing

PRICE PLACE PROMOTION

Revenues 2000*Started exploring kid multipack

S W O T A N A L Y S I S

S T R E N G T H

W E A K N E S S

T H R E A T S

O P P O R T U N I T Y

Strong brand; low cost; no artificial thickeners;unique, smooth and creamy texture; longershelf life

No alternative financing available; doubt onsales team's ability; lacks potential of takinghigh risks

Strong relationships with leading natural foodsretailers

Accumulation of cash by horizon from IPO; beingdropped out of traditional channel

Distribution Channel

Market Share By Packaging Segment

Market Share By Region

SupermarketChannel

Manufacturer

Distributor

Retailer

Consumer

NaturalFoods Channel

Manufacturer

Natural Foods Wholesaler

Natural Foods Distributor

Retailer

Customer

Market Share By Brand

Supermarket Channel Natural Foods Channel

OPTIONSAVAILABLE

OPTION 1 OPTION 2 OPTION 31.Expand in northeastand west supermarket

region2.Bring in the 6 SKUs

of the 8-oz. size

1.Expand insupermarket

nationally2.Bring in the 4 SKUs

of 32-oz size

1.Stay in natural foodchannel

2.Introduce 2 childrenmultipacks

Option 1

PROS 8 oz have highest incremental demandHigh potential to increase revenueFirst mover as organic yogurt brand toenter into super market channel

CONS High risk & high cost marketingRequire quarterly trade promotionsAdvertising plan would cost $1.2million per region per yearSG&A expenses increase by $320000annuallyNeed to pay one time slotting fee

Option 2

PROS Generate higher profit margin than 8-oz. sizeStrong competitive advantage; longer shelflifeLower promotion expenses

CONS Doubt on claim of new users would readilyenter the brand via multi use sizeDoubt on sales team ability to achieve fullnational distribution in 12 monthsNeeds to hire sales personnel and establishrelationships with supermarket brokersThe 32-oz. expansion option wouldincrease SG&A expense by $160000

Option 3

PROS The sales team was confident that they couldachieve distribution for 2 SKUsFinancial potential was very attractiveIt would yield the strongest profitcontribution of all the strategies underconsideration The natural foods channel was growing seventimes faster than the supermarket

CONS Many potential conflicts and otheruncertain factors that the manager couldnot determineCan not achieve the target objective ofNatureview Farm

WHAT TO DO

People are accessing onlinetravel apps per second in

Australia alone.

250

Go for Option 1

Reach beyond the target revenue of $20 million by

end 2001

8-oz. yogurt is the highest demand of market

Can expose to more range of customers in

supermarket

Will have the first mover advantages of natural

product to enter supermarket

A bit risky but in long term will generate revenue of

200%

People are accessing onlinetravel apps per second in

Australia alone.

N N A T U R E V I E W F A R MT H E

C R E A T E D B Y :

S U Y A S H K A R K A R E

I I T K

M A R K E T I N G M A N A G E M E N T

P R O F . S A M E E R M A T H U R

I I M L U C K N O W

THANK YOU