Natureview Farm Case

Topics: Marketing, Whole foods, Organic food Pages: 12 (2415 words) Published: August 1, 2013
TABLE OF CONTENT

1.INTRODUCTION 2

1.1 CASE SUMMARY 2

2.OBJECTIVE/MAIN ISSUES 4

3.MARKET TREND ANALYSIS4

3.1 ORGANIC PRODUCTS 4

3.2 YOGURT PRODUCTS5

4.SWOT ANALYSIS5

5.FINDINGS AND DISCUSSION6

6.RECOMMANDATION12

6.1 MARKETING STRATEGIES12

6.2 PROMOTIONAL SUGGESTION14

INTRODUCTION

1.1Case Summary

Natureview Farm Inc. is a small yogurt manufacturer that manufactured and marketed refrigerated cup yogurt under the Natureview Farm brand name. It was founded in 1989 in Cabot, Vermont. In 1999, it was reported that the growth of Natureview Farm is $13 million in revenues (see Table 1.1) and by 2000, Natureview Farm has becomes a leading national yogurt brand with 24% of the market share compare with the other competitors like Brown Cow, Horizon Organic, White Wave and others as shown in Figure 1.1.

Natureview Farm produces two main types of cups size; 8-oz. cup, and 32-oz. cup. The company first entered the market with only two flavors, plain and vanilla. After the success of these two flavors, the company added flavors to both size. By 2000, Natureview Farm has produced twelve refrigerated yogurt flavors in 8-oz cup and four flavors in 32-oz cups. The company also planned to produce children’s multipack yogurt with 4-oz cups. As a major brand in the natural foods channel, Natureview Farm had developed strong relationships with leading natural foods retailers, including the chains Whole Foods ($1.57 billion revenues in 1999) and Wild Oats ($721 million revenues).

The goal of Natureview Farm is to achieve its revenue to $20 million in two years before the end of 2001. It is a large jump from the $13 million the company reported in 1999. The strategy to achieve its goal is considering expanding into the supermarket channel. Natureview Farm had developed three options to expand into supermarket channel which is expand into supermarket with 8-oz cup, expand into supermarket with 32-oz cup and introduce children multipack into natural food channel with 4-oz cup and yogurt tubes.

|  |  |  |  |  | | | | | | | |Revenues | |$13,000,000 |100% Revenues | |Cost of Goods Sold | |$8,190,000 |63% | |Gross Profit |  |$4,810,000 |37% | |Expenses | | | | | |Administration/Freight |$2,210,000 |17% | |Sales | | |$1,560,000 |12% | |Marketing | |$390,000 |3% | |Research & Development |$390,000 |3% | |Net Income | |$260,000 |2% | |  |  |  |  |  | | | | | | |

Table 1.1 Natureview Farm Income Statement, 1999

[pic]

Figure 1.1 Yogurt Market Share in Natural Foods Channel, 1999

1. OBJECTIVE AND MAIN ISSUES

2.1Natureview’s Main Issue

Venture Capital firm is asking for money. In 1997, Jim Wagner, the chief financial officer (CFO) recommended that Natureview Farm arrange for an equity infusion from a venture capital (VC) firm to fund strategic investments. However, the VC firm now needed to cash out of its investment.

2.2Natureview’s Objective

1....
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