. What are the strategic advantages and risks of each option?
What channel management and conflict issues are involved?
Option 1. Like mentioned before, option 1 leveraged a good shelf presence, besides incurring lesser slotting expense. It also had significant revenue potential as 8 oz cups represented the largest dollar and unit share of the refrigerated yogurt market. This segment was growing at a breakneck speed and Natureview was correctly positioned to capitalize effectively on this. Last but not the least, Natureview wanted to tap the first-mover advantage as there were rumors of its leading competitor in the natural foods segment was planning to make a foray in the supermarket channel. All this indicate that upside potential of Option 1 was immense. The caveats were that the requisite quarterly trade promotions and meaty marketing budget incurred a lot of expenditure. In addition to this, sales, general, and administrative expenses(SG&A) were also a rip-off in this option 1. This could delay the break-even and could also result in lesser market share