Natureview Farm produces refrigerated cup yogurt using natural ingredients. It faces problems of needing to grow revenue to $20m by 2001 for its venture capital investor to cash out. It considers three options to expand: 1) expand its 8oz cup line into supermarkets, 2) expand its 32oz line nationally, or 3) expand its children's multipacks into natural food channels. It recommends option 1 to enter supermarkets first before competitors and take advantage of being the first organic yogurt, despite higher costs. Personnel and distributor relationships will be important to support the expansion.

1. NATUREVIEW FARM
CASE STUDY

2. AGENDA
• Introduction
• Problems faced
• Marketing trends
• Options
• Recommendations

3. Introduction
• Founded in 1989
• Manufacturer and marketer of refrigerated cup yogurt
with the help of natural ingredients.
• Shelf life of Yogurt – 50 days

4. KEY SUCCESS FACTORS
• Strong brand with natural ingredients
• Guerrilla marketing
• Strong relations with distributors

5. PROBLEMS FACED
• Venture Capital firm needs to cash out its investment
from Natureview
• It has to now find another investor
• Grow revenues from $13m to $20m by 2001 end.

6. MARKET TRENDS

7. YOGURT MARKET SHARE BY
PACKAGING SEGMENT,1999

8. YOGURT MARKET SHARE BY
BRAND,1999(Supermarket)

9. YOGURT MARKET SHARE BY
BRAND,1999(natural food)

10. YOGURT MARKET SHARE
BY REGION

11. OPTIONS
• Expand 6 SKUs of 8oz
product line into one or
two selected super
market channel regions.

12. PROS
• 8oz cups represent largest dollar and unit share of the
market
• Other natural brands have successfully expanded in
supermarket channels
• First organic yogurt to move to supermarket will be an
advantage

13. CONS
• High Competition
• Advertising cost and SG&A expenses will increase
• Low degree of experience

15. OPTION 2
• Expand 4 SKUs of 32oz product line nationally

16. PROS
• Generate above average gross profit margin.
• Competition is relatively less
• Less expenses on advertising

17. CONS
• Slotting fee would be high
• Doubts on sales team to achieve results after 12 months
• Need for more personnel.

19. OPTION 3
• Expand 2 SKUs of the children’s multipack into natural
food channel

20. PROS
• Already have strong relation with natural food channel
retailers
• Financially lucrative
• Low sales and marketing expenses.

21. CONS
• Miss opportunity to enter supermarkets before
competitors
• Prolong venturing into supermarkets
• Might not reach the targets

23. RECOMMENDATIONS
• Should go with option number 1
1. It gives higher revenue
2. Growth rate would accelerate
3. Supermarket Transitions
• First cum first serve move in supermarkets will help Natureview farms
• Personnel should be chosen with care
• Should develop good relations with supermarket distributors

24. DISCLAIMER
• Prepared by Harshit Arora under the guidance of Prof.
Sameer Mathur during marketing internship.