Natureview Case Study Essay
Natureview Case Report Natureview is a thriving yoghurt production company headquartered in Vermont that is seeking to grow revenues to $20 million from $13 million before the end of the next fiscal year. Natureview’s management has decided this increase in revenues could be obtained through three courses of action; moreover, these options concern which type of retail channel—either a typical supermarket or natural foods store—Natureview should attempt to sell its product in as well as which type of product, including size and flavor, to sell to each retail channel. The first option, most strongly advocated by the vice president of sales, Walter Bellini, states that Natureview should expand six SKUs of its 8-ounce product line into one or two supermarket channel regions. The second option, supported by vice president of operations Jack Gottlieb, proposes the yoghurt company expand four SKUs of its 32-ounce yoghurt size
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Natural foods stores typically use premium pricing because they offer mostly organic, higher quality products. Additionally, customers at natural foods stores typically have more disposable income than those at supermarkets. As seen in Table 1, an 8-ounce Natureview yogurt sells for $0.74 in a supermarket while that same products costs $0.88 in a natural foods store. The manufacturer’s selling price for this type of yoghurt quite similar, and the primary price disparity arises in the natural foods store’s large margin of 35%. Natureview’s brand image also plays a large role in what kind of customer would purchase the product; that is, customers at natural foods stores may favor the yoghurt company’s exclusivity at the organic markets and would not want to buy it in a normal grocery store. The customer demographic and disparity in sales margins are the primary differences between the supermarket and natural foods
Natural foods stores typically use premium pricing because they offer mostly organic, higher quality products. Additionally, customers at natural foods stores typically have more disposable income than those at supermarkets. As seen in Table 1, an 8-ounce Natureview yogurt sells for $0.74 in a supermarket while that same products costs $0.88 in a natural foods store. The manufacturer’s selling price for this type of yoghurt quite similar, and the primary price disparity arises in the natural foods store’s large margin of 35%. Natureview’s brand image also plays a large role in what kind of customer would purchase the product; that is, customers at natural foods stores may favor the yoghurt company’s exclusivity at the organic markets and would not want to buy it in a normal grocery store. The customer demographic and disparity in sales margins are the primary differences between the supermarket and natural foods