NATURE VIEW FARM

Introduction: -

Natureview Farm is a notable yogurt brand in the normal food sources industry established
in 1989 that fabricated and promoted refrigerated cup yogurt under the Natureview Ranch
brand name. Natureview produces three different size cups - 8 oz. cup, 32 oz. furthermore, 4
oz. cup multipack. Natureview Farm procured areas of strength for a because of its
accentuation on natural fixings, utilization of excellent milk from cows untreated with
development chemicals and no fake thickeners. This standing made Natureview Ranch a
house-hold name for natural yogurt experts. Natureview Farm developed rapidly throughout
the 10 years to turn into a public brand in natural yogurt in normal food sources channels.
Natureview's imaginative, minimal expense 'guerilla advertising' strategies functioned
admirably in normal food varieties channel and added to showcase position. Natureview
Farms' yogurt had an 'normal timeframe of realistic usability' of 50 days (20 days more than
contender's items) because of its one of a kind creation cycle and natural fixings. Natureview
Farm's incomes developed from under $100,000 in 1989 to $13,000,000 in 1999. SWOT
examination of Natureview Farm can be tracked down in Exhibit 2.

Existing Situation & Problem Statement: -

Natureview is a little organization with restricted cash resources. To extend and develop its
tasks Natureview offered its stock value to investment firms to get reserves. Following 3
years of funding, the investment firm needed to pull out and trade out their speculation out of
Natureview leaving Natureview Homesteads with no essential hotspot for subsidizing. To get
financing from one more funding firm, NatureviewFarms expected to become valued by
banks/funding venture companies. In this present circumstance Natureview ranch needed to
raise their income to $20,000,000 each year to increment its valuation or they will have no
real option except to consider being essential for obtaining. Natureview Ranch should find
key subsidizing to proceed with its tasks and advertising endeavors to keep up with their
driving 24% piece of the pie and further develop.

Objective/Goal: -

Natureviews Farm should settle on essential promoting choices to develop its incomes to
$20,000,000 from their current $13,000,000 before the finish of the 2001 financial year.This
is a 54% expansion from its ongoing income and an extreme objective to accomplish
thinking about that Natureview Homesteads just has a year's course of events. Senior
administration ought to conclude whether Natureview Ranch ought to extend their item's
dispersion to as of now 'yogurt concentrated' general store channel inside the upper east,
southeast, Midwest and west districts of the US OR stay in the nature food stores channel
where Natureview is a pioneer with 24% piece of the pie and acquaint new item
contributions with brace its situation and accomplish income objective. To settle on an
educated advertising choice, Natureview should investigate both general store and nature
food stores channels. 

Exhibit 1 makes sense of the channel examination and piece of the pie investigation.

Based on the Channel analysis, Christine Walker is contemplating 3 options to achieve the
revenue goal.

Option 1: Expand into the supermarket channel with 6 SKUs of 8 oz yogurt cups in two
regions (Northeast and West in 20 retailers).
Option 2: Expand nationally into the supermarket channel with 4 SKUs of 32 oz yogurt cups.

Option 3: Introduce new 2 SKU of 4oz multipacks for children in the natural foods channel.

Exploring Option 1:- Natureview Farm will make debut into the grocery store channel with 6
SKU of 8 oz yogurt cups and will principally sell in the west and the upper east areas of USA
.West locale will incorporate 9 corporate stores and upper east district will incorporate 11
corporate stores . Benefits/burdens of this choice are made sense of in Exhibit 4. This choice
offers most prominent potential as 8 oz item is a favored yogurt class in west and
northeastern locales. Natureview Farm can be the 'principal mover' in the natural yogurt
market inside the grocery store channel and catch critical 'rack space' before the contest
shows up. With an unexpected offer of 35,000,000 units in the first year, this choice is
generally aggressive of the multitude of choices and would bring about an income of
$25,090,000 million and a gradual income of $ $38,900,000 in one year, well more than the
$20,000,000 objective see Exhibit 6. Anyway, there are high dangers and related costs in
this choice thinking that Natureview Farm is entering the general store channel that can
cause essential changes to the brand position, showcasing system and spending plan
assignment.

Exploring Option 2: Natureview Farm will likewise make a presentation into the grocery
store channel with 4 SKUs of 32oz of yogurt cups in 64 corporate stores broadly with this
choice. Note there is less contest in the 32 oz yogurt class than the more famous 8 oz yogurt
classification and the net revenues for 32oz choice is 63% contrasted with 51% in the 8 oz
yogurt classification see Show 3. Show 8 makes sense of the benefits/hindrances with this
choice. With a normal offer of 5500000 units in the main year, Natureview Farm will acquire
income of $14,850,000 and a gradual income of $27,850,000 in one year see Exhibit 9 and
10. Natureview Homestead can accomplish its income objective with this choice. Anyway,
from the Exhibit 2 monetary data we see that the opening charges for this choice is
$2,560,000, which is higher than in Exhibit 1 and is because of the way that Natureview
needs to circulate in 64 chains broadly. In any case, Exchange advancement cost is a lot
lower in this choice as 32 oz size will be advanced two times per year, as opposed to the
four times each year as the 8 oz yogurt cup. In the event that Natureview proceeds this
choice, Natureview will be one of few organizations to offer the 32oz size of natural yogurt in
the general store chain subsequently a tremendous benefit from ' Self Space' and 'first
mover’. Large quandary with this choice is senior administration is dicey whether Natureview
Homestead can increase its activities and promoting endeavours to disseminate 32 oz. cups
broadly with-in given a year.

Exploring Option 3: Natureview Farm with this choice will stay in the normal food varieties
channel. Natureview is a forerunner in natural yogurt in regular food varieties channel with
24% of the overall industry and has strong ties with regular food retailers. To sustain its
administrative role in the regular food sources channel, Natureview Farm will present 2
SKUs of 4 oz multipacks for youngsters. There is a colossal development potential in
youngster’s yogurt portion despite the fact that the multipack fragment is just 9% of the all-
out yogurt deals. See Exhibit 1. With this choice there is no publicizing cost, no exchange
advancement costs nor opening expenses which is a gigantic reserve funds from choice 1
and choice 2 see Display 13 and 14. Anyway this is a necessary portion of one
corresponding instance of item for each new SKU in the main year that will cost Natureview
$150,750. With an expected offer of 1800000 units in the first year, Natureview Homestead
will acquire a normal income of $6,030,000 and a gradual income of $19,030,000 in one
year. This is shy of the income objective of $20,000,000 yet less gamble inclined than choice
1 and choice 2. Advantages /detriments with this choice are in Exhibit 2.

Recommendation, Promotion Mix and Implementation Plan for Product launch:

Based on the comparative analysis of all the 3 options see Exhibit 16 and 17, I strongly
recommend Option 3. The reason is Natureview Farm is currently strapped for cash and
cannot take the risk of entering a completely new channel with high risks and associated
costs. Both Option 1 and Exhibit 2 will hurt Natureview Farm in the long-term and will lose
the niche it is known for. Exhibit 3 is well –suited as Natureview is an established leader in
natural foods channel and can leverage existing strong ties with retails to introduce new 2
SKUs of 4oz multipacks for children. Yogurt segment is growing at 9 % annually. Natureview
Farm will earn an incremental revenue of $19,03,0000 which is below of the goal but
considering this timeline and situation and no advertising and slotting expense, option 3
looks most promising and less risky. Based on the option 3, promotional mix see Exhibit 18
and implementation plan see Exhibit 19.