Natureview Farm
Natureview Farm is the brand name organic yogurt company that began manufacturing in 1989. Currently it is the leading natural yogurt brand in the market because its sales make up 24% of the natural foods channel. Natureview has been successful for a few reasons. Firstly, Natureview uses milk from cows that are not treated with rGBH (artificial growth hormone that increases milk production). Because of this difference along with production techniques, Natureview is able to create a yogurt with the shelf life of 50 days. This is 20 days longer than their larger competitors. Also, due to the longer shelf life they are able to have fewer production plants allowing them to save on cost.
Secondly, because Natureviews emphasis is on natural …show more content…
The benefit of this option is the fact that many of Natureviews competitors do not offer the 32oz option. Because Natureview has a longer shelf life it believes it can sell about 5.5 million units in 64 supermarket retail chains across the USA. Also because their distribution would be across a larger number of retailers, total marketing fees would equal $120,000 a year per region which is 10% of option 1’s marketing costs. Yet, Natureview is concerned that it will be difficult to enter a new market with a multi-use size. Also Natureview believes that in order to reach the number of supermarkets intended it would need to increase it SG&A by …show more content…
It would look at introducing 2 children’s multi-pack products to the current channel. Natureview believes that this would be beneficial because it already has a strong relationship with the leading natural food channel retailers. They believe that entering the supermarket channel may harm these relationships. Also natural food channels are growing 7 times as fast as the supermarket channels are and Natureview is developing several new products that can boost their sales in this thriving channel. The financial potential for the 2 multi-pack children’s packages are believed to grow the gross profitability of the line to 37.6%. Also the marketing and sales expenses are much lower at about $250,000. Finally, the current functions and resources of Natureview were able to create the multi-pack products without any SG&A costs. However, Natureview is not convinced that the deciding factor should be the loss of potential relationships with current natural food channels. They believe that they can manage the channel conflicts even thought they are unsure if their distribution and marketing departments could handle the demands the supermarket channel would create upon staffing and
Secondly, because Natureviews emphasis is on natural …show more content…
The benefit of this option is the fact that many of Natureviews competitors do not offer the 32oz option. Because Natureview has a longer shelf life it believes it can sell about 5.5 million units in 64 supermarket retail chains across the USA. Also because their distribution would be across a larger number of retailers, total marketing fees would equal $120,000 a year per region which is 10% of option 1’s marketing costs. Yet, Natureview is concerned that it will be difficult to enter a new market with a multi-use size. Also Natureview believes that in order to reach the number of supermarkets intended it would need to increase it SG&A by …show more content…
It would look at introducing 2 children’s multi-pack products to the current channel. Natureview believes that this would be beneficial because it already has a strong relationship with the leading natural food channel retailers. They believe that entering the supermarket channel may harm these relationships. Also natural food channels are growing 7 times as fast as the supermarket channels are and Natureview is developing several new products that can boost their sales in this thriving channel. The financial potential for the 2 multi-pack children’s packages are believed to grow the gross profitability of the line to 37.6%. Also the marketing and sales expenses are much lower at about $250,000. Finally, the current functions and resources of Natureview were able to create the multi-pack products without any SG&A costs. However, Natureview is not convinced that the deciding factor should be the loss of potential relationships with current natural food channels. They believe that they can manage the channel conflicts even thought they are unsure if their distribution and marketing departments could handle the demands the supermarket channel would create upon staffing and