Natureview Farm Case
Natureview Farm Case
Faced a challenge – Had to find a path to grow revenues by over 50% before the end of 2001. Had $13 Million in the end of 1999, needed $20 Million by the end of 2001. Should they stay with supermarket channel or the Nature Foods Stores?
Key to the Natureview yogurt flavor and texture was the family yogurt recipe using only high quality natural ingredients (no artificial)
Had a strong relationship with leading natural foods retailers
Women (who are single and/or have kids) are taking up 74% of natureview market share
The market is fairly concentrated with the top four competitors being Dannon, Yoplait, Breyers, and Columbo.
Shoppers at natural foods stores tended to be more educated, earn higher incomes, and be older than the typical supermarket shopper
Natureview only owns a small portion of the yogurt market and is not ventured into the supermarket channel
It depends highly on the brokers who are a part distribution and promotion
They lack capital and their main competitor is Horizon who is getting stronger
In the Yogurt Market: 8oz Cups own the most (74%) of share and the 32oz cups (largest cups own 8%) Children multipacks are a little higher at 9%
Have two options (Stay with the natural foods channel) or go with the Supermakret channel
Natural Foods Store Channel: Manufacturer Wholesaler Distributors Retailers Customer
Supermarket Channel: Manufacturer Wholesaler Retailer Customer
Selling at Supermarkets will cost a one-time Slotting fee for each SKU in the first year (for example ($80,000 slotting fee expense if you introduce 8 different flavors in 8oz size -- $10,000 per SKU per retail chain)
Options to make the $20 Million:
Option 1 – Expand the 6 SKU’s of the 8oz product one into one or two selected SUPERMARKET channel regions
Great upside potential, Supermarket attracts higher-income less price sensitive customers
Highest incremental demand
Would require LOTS of promotions needing a big marketing budget
Can create
Faced a challenge – Had to find a path to grow revenues by over 50% before the end of 2001. Had $13 Million in the end of 1999, needed $20 Million by the end of 2001. Should they stay with supermarket channel or the Nature Foods Stores?
Key to the Natureview yogurt flavor and texture was the family yogurt recipe using only high quality natural ingredients (no artificial)
Had a strong relationship with leading natural foods retailers
Women (who are single and/or have kids) are taking up 74% of natureview market share
The market is fairly concentrated with the top four competitors being Dannon, Yoplait, Breyers, and Columbo.
Shoppers at natural foods stores tended to be more educated, earn higher incomes, and be older than the typical supermarket shopper
Natureview only owns a small portion of the yogurt market and is not ventured into the supermarket channel
It depends highly on the brokers who are a part distribution and promotion
They lack capital and their main competitor is Horizon who is getting stronger
In the Yogurt Market: 8oz Cups own the most (74%) of share and the 32oz cups (largest cups own 8%) Children multipacks are a little higher at 9%
Have two options (Stay with the natural foods channel) or go with the Supermakret channel
Natural Foods Store Channel: Manufacturer Wholesaler Distributors Retailers Customer
Supermarket Channel: Manufacturer Wholesaler Retailer Customer
Selling at Supermarkets will cost a one-time Slotting fee for each SKU in the first year (for example ($80,000 slotting fee expense if you introduce 8 different flavors in 8oz size -- $10,000 per SKU per retail chain)
Options to make the $20 Million:
Option 1 – Expand the 6 SKU’s of the 8oz product one into one or two selected SUPERMARKET channel regions
Great upside potential, Supermarket attracts higher-income less price sensitive customers
Highest incremental demand
Would require LOTS of promotions needing a big marketing budget
Can create