This option seems to be taking a differentiation approach.

If this option is chosen byNatureview, they would be one of only a few companies to offer the 32oz size of organic yogurtin the supermarket chain. That fact that there is not many competitors is a huge advantage.However this option is also very risky and has many unknown such as whether it is plausible todistribute nationally within one year. For this option to be acceptable the risk and unknownsmust be dealt with. Option 3: Introduce 2 SKU of children multi pack into natural foods channel In this option, Natureview will not expand into the supermarket channel. InsteadNatureview will introduce a new line of products for children in the nature foods channel. Theywill introduce 2 SKUs of 4oz multipacks. The multipack market was identified earlier in thisanalyses because of its annual growth rate of 12.5%. Even thought multipacks are only 9% of total organic yogurt sales, the tremendous growth rate give this market a huge amount of potential without much risk. This is a huge reason why this option is valuable. Another reasons isthat cost will be done since SKU slotting fees will no longer be changed.There will be a required allocation of one complementary case of product for every newSKU in the first year. This would usually equate to being less than the supermarket channelslotting fee. This option will also require a broker fee of 4%. Total revenues with this option willbe about 6 million with 1.8 million units sold at a price $3.35 per unit. These figures are less thanthe other options but are based on a low risk plan