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Nature View Farm Case Analysis

Nature View Farm Case Analysis

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Published by Ashish Arya
Nature View
Nature View

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Categories:Topics
Published by: Ashish Arya on Aug 22, 2013
Copyright:Attribution Non-commercial

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04/05/2014

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11/16/2009
 
SUBMITTED TO DONNA GEARY | BY MAHMOUD ISSA
MRK526MT
CASE
 
ANALYSIS-NATUREVIEW
 
FARM
 
 2
TABLE OF CONTENT PAGE
EXECUTIVE SUMMERY
3
THE PROBLEM
4,5
CHANNEL ANALYSES
6,7
SITUATION ANALYSES
7,8
FINANCIAL ANALYSES
9
ORGANIZATIONAL OBJECTIVES
9
ALTERNATIVES/ OPTIONS
10-16
RECOMMENDATION
17
IMPLEMENTATION PLAN
18
BIBLIOGRAPGHY
19
 
 3
Executive SummeryThe Problem
 Natureviews main problem is that they have to make strategic marketing decisionsto grow revenues to $20,000,000 from their current $13,000,000 before the end of the 2001fiscal year.
Channel Analyses
 Supermarket channel offers more potential for sales and revenue but also is very costly due to technologyand slotting fee requirements and is also risk filled due to many unknown variables. However despite the risk, thischannel provides the most exposure and market base. The Nature foods channel offers less risk, but only servesniche market of organic food purchasing consumers. It is cheaper to invest and is expected to grow by 20% annually
Organizational Objectives
Grow revenues to $20,000,000 from their current $13,000,000 before the end of the 2001 fiscal year 
Alternatives/Options
Option 1: Expand into the supermarket channel with 6 SKUs of 8oz yogurt in two regionsOption 2: Expand into the supermarket channel with 4 SKUs of 32oz yogurt in all regionsOption 3: Introduce 2 SKU of children multi pack into natural foods channel
Recommendation - Option 3 due to:
 
Low risk factors
 
Low cost
 
Take advantage of current relationships and growth of nature foods channel
Implementation Plan
Approval 1
st
weekMeet with R&D, brokers, sales, retailers 2
nd
week
 –
3
rd
weekProduct test and approval 4
th
weekProduct and promotion launch 2
nd
monthFirst status report 6
th
monthFinal yearend report 12
th
month
Strength
 
Long product shelf life
 
Reputation of high quality, taste and naturalingredients
 
Strong relationship with nature store retailers
Opportunities
 
Organic food market expected to grow to $13.3 billion in 2003
 
 Nature store channel sales up 20%
 
12.5% growth in 4oz multipack 
 
Increase in consumer interest in organic foods
Weaknesses
 
Small manufacture, low funds and revenue
 
Relies on brokers that may not be adequate for supermarket channel
 
Current marketing strategy based only on naturestore channel
 Threats
 
Competition(both in regular yogurt and organicyogurt)
 
Increasing nature store channel demands onlogistics or technology
 
Increasingly price sensitive consumers due toeconomical slowdown

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