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Presented bySUSHANT KUMAR

CASE STUDY

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1989 .Founded and manufactured in cabot ,Vermont.Plain vanilla flavor 8-oz and 32-oz.Less than $100,000 revenue earned

1999Revenue reached $13million from $100,000.Fruit on bottom yogurt.

2000Introduction of multipack yogurt

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Back Bones

Christine Walker VP MarketingJiM Wahner CfoBurry landers CeoWlater Bellini VP sales

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Situation

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VC needs to cash out of its investmentAchieving 50% revenue before the end of 2001

Should NatureViewfarm expand into super market?

•Natural food channels•Wholesale club

•Low cost guerilla marketing

•Affordable•8 And 32 oz

Product price

PlacePromotion

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Marketing Mix

14%

86%

Market Share of Products

32-oz8-oz

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SWOT analysis

strength.strong brand

.low cost

oPPortunityStrongrelationship with retailers

Weakness.No alternative financing

threatsDropped out from traditional channels

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Organic

Taste/ flavorIngredient Packaging

Price

Marketing trend of yogurt PurChase

SUPERMARKET97%

NATURAL FOOD STORE3%

DISTRIBUTION CHANNELS

SUPERMARKET NATURAL FOOD STORE

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33%

24%23%

15% 5%

SUPERMARKET

DANNONYoPlaitothersprivate labelcolumbe

24%

15%7%19%

35%

Natural food channel

natureview farmbrown cowwhite wavehorizonothers

ProduCtion Cost suPerMarket Channel

Natural food channel

Supermarket food channel

Manufacturing cost

8-oz $0.88 $0.74 $0.31

32-oz $3.19 $2.70 $0.99

4-oz multipack $3.35 $2.85 $1.15

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oPtion analysis

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Option1

Option3Option2

oPtion1(to expand 6 sku’s of the 8-oz product line into one or two selected supermarket channel)pros cons

• 8-oz has highest incremental demand.

• Potential to increase revenue.• High risk(marketing)• Advertising cost $1.2 mn per

region per year.• Need to pay one time slotting

fee.

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oPtion2(Expand 4 sku’s of the 32-oz product line nationally )Pros Cons*Higher profit margin than 8-oz

*lower promotional expanses

*Doubt on sales team’s ability to achieve full national distribution in one year.*The 32-oz expansion option would increase SG&A expanse by $160,000

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oPtion3(Introduce 2 skus of a children multipack into the natural food channel)Pros Cons

• The financial potential was very attractive .

• The natural food channel wasgrowing almost 7 times faster than the supermarket.

• There were many conflict which manager could not determine.

• Can not achieve the target objective of Nature view farm.

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CoMParison of oPtions for year 2001

Option1 Option2 Option3Unit sales 42,000,000 5,500,000 27,247,200Revenue 44,080,000 27,850,000 21,397,600Net profit 27,247,200 19,934,500 17,130,637

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oPtion1(the Best)

• Long term advantages are high if properly implemented • Exposure to more range of customers.• It exceeds the revenue objective.

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ConClusion

• Reach beyond the target objective $20 million before the end of 2001

• More customer buys products from supermarket (46%)• “Guerilla marketing “ 8-oz -86% Revenue• 40%yogurt consumed by U.S. population (70% women)• Long term revenue generate around 200%.

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Sushant kumar ,IITBMarketing internship under

Prof. Sameer Mathur ,IIML