Natureview

Farm
AJAY RANA BHAT
162166219
MKM805 ZSS- Strategic Marketing
Management
PROF. Rob Persiko
 Defining the Market

´ According to the assessment, the

Organic Yogurt Natural Foods Northeast and West market definition for Natureview Farm
Criteria
Market Channel Regions
is largely the "Organic Yoghurt Market"
Natural and organic Natural and organic
under the "Natural Foods Channel."
Product Focus Organic yogurt The business should concentrate on
food products food products
catering to people that are interested
Target Health-conscious Health-conscious Health-conscious in natural and organic dairy products.
Consumer consumers consumers consumers Geographically speaking, Natureview
Farm should keep functioning and
Ingredients Natural, organic Natural, organic Natural, organic
grow its presence in the Northeast and
Channel Natural foods Natural foods
West, relying on its current connections
Supermarkets and client preferences in these
Focus retailers retailers
regions.
Geographical Northeast and West
Nationwide Nationwide
Scope regions
Nurturing Nature: Natureview Farm's Success Story
in the Natural Foods Market

Unique Product •Refrigerated cup yogurt with a smooth, creamy texture and natural ingredients
•No artificial thickeners or milk from cows treated with rGBH
Offering: •Longer shelf life and made from milk from cows untreated with artificial growth hormones

Emphasis on Natural •Capitalized on consumer interest in natural and organic foods

•Positioned as a provider of high-quality, natural yogurt
and Organic: •Catered to consumers valuing organic products and health-promoting qualities

Strong Brand •Established a reputation for high quality and great taste
•Commitment to natural ingredients and unique flavors
Reputation: •Use of family yogurt recipes to build trust and loyalty among consumers

Effective Marketing •Utilized creative and low-cost "guerrilla marketing" tactics

•Promoted brand in the natural foods channel
Strategies: •Gained national distribution and shared leadership in the natural foods market

Relationships with •Developed strong partnerships with leading natural foods retailers
•Examples include Whole Foods and Wild Oats
Retailers: •Access to a large customer base and increased sales
Current Target Audience and Positioning:

´ The majority of the people

who make up Natureview
Farm's target market
nowadays are consumers of
natural foods who are
interested in buying organic
and natural goods. These
customers are more likely to
be older, more educated,
and to make higher earnings
than the average supermarket
buyer. The core of
Natureview's positioning is the
provision of premium, all-
natural yoghurt with distinctive
flavours and health benefits.
Distinctive and
Defensible
Positioning:
´ The positioning of Natureview
Farm is distinctive and tenable.
The business is known for its
dedication to using natural
ingredients, distinctive flavors,
and a unique yogurt-making
process. It sets itself apart from
other yoghurt companies that
employ artificial additives
thanks to its concentration on
organic and natural products.
Natureview's market posture is
defendable due to its strong
brand reputation and devoted
customer base.
 Economic: The market for organic foods, especially
yoghurt, is expanding. The market for organic foods
was estimated to be worth $6.5 billion in 1999 and
$13.3 billion in 2003. This suggests that the organic
yoghurt products from Natureview are operating in a
favorable economic climate.

Social: Interest in natural and organic foods is rising

among consumers. Retailers of natural foods are
prospering as more consumers look for healthier and
more sustainable options. Compared to supermarket
patrons, customers at natural food stores tend to be
older, more educated, and have higher incomes.
PESTLE
Environmental: The use of natural ingredients, a
Analysis unique procedure, and milk from cows not given
synthetic growth hormones are some of Natureview
Farm's primary differentiators. These elements support
the expanding customer demand for ecologically
friendly and organic goods.

Ethical: Consumers that place a high value on natural

products, organic agricultural methods, and
sustainability will be ethically satisfied with Natureview
Farm's concentration on these factors.
 Stakeholders

Consumers: Women make up the bulk Customers: Supermarkets, natural Competitors: In the refrigerated
of yoghurt buyers, and health-
food stores, and maybe additional yoghurt market, the leading rivals are Channels: Supermarkets and natural
conscious persons in general are the
distribution channels like warehouse Columbo, Yoplait, Breyers, and food stores are Natureview Farm's
main customers of Natureview Farm's clubs, convenience stores, drug stores, Dannon. The top two rivals own more main distribution channels for
yoghurt. Their purchasing decisions
and mass merchandisers are among than 50% of the market share, yoghurt. Yoghurt is primarily sold in
are influenced by a variety of factors,
Natureview Farm's clients. The demonstrating the dominance of these supermarkets; however natural food
such as the style and size of the majority of yoghurt sales are made at businesses. Both conventional yoghurt shops also cater to shoppers looking
container, taste, flavour, price,
supermarkets, followed by natural brands and other organic/natural for organic and natural goods.
freshness, ingredients, and organic
food stores. yoghurt brands could be competitors.
certification.

Venture Capital Firms: A venture

capital company previously invested
equity in Natureview Farm, and the
VC company now needs to recoup its
investment. This has an impact on
Natureview's financial status and the
requirement to boost revenues in order
to obtain a higher valuation.
 ´ Utilizing its focus on natural ingredients, organic farming methods, and excellent product
quality, Natureview Farm has established itself as a premium brand in the natural foods sector.
´ The market for organic foods is expanding as consumers' interest in natural and organic
products rises.
´ To attract higher-income, less price-sensitive customers, supermarkets are thinking about
increasing their selection of organic products. Natureview Farm now has the chance to
penetrate the supermarket channel.
´ Yoghurt is a significant revenue and profit-generating product, and natural food stores have
strong partnerships with Natureview Farm. By launching new goods, Natureview can further
solidify its position in the natural foods channel.
´ Both established conventional yoghurt producers and possible new entrants, like Dannon's
Seizing Bright Vista line and private-label organic yoghurts sold by supermarkets, compete with
Natureview Farm.
Opportunities: ´ The 32-oz cup size gives better gross profitability and a longer shelf life, giving it a
Natureview Farm competitive edge whereas the 8-oz cup size is Natureview Farm's signature product.
Explores Expansion ´ The possible dangers, expenses, and resources needed for expanding into the supermarket
channel must all be carefully taken into account by Natureview Farm. This covers sales
into Supermarkets representatives, marketing costs, trade promotions, and connections with supermarket brokers.
while Nurturing ´ Natureview has the chance to use its solid connections and launch new items to boost sales in
Natural Foods the natural foods channel, which is expanding faster than the supermarket channel.

Channel
Push vs. Pull Business

´ Through its brand positioning, high-quality products,

and marketing initiatives, Natureview Farm largely
conducts business as a pull business. Health-conscious
customers who actively seek out Natureview's
products are drawn to the company's emphasis on
natural ingredients, organic certification, and product
quality. Consumer preferences in the natural foods
and grocery channels are in line with this pull strategy.
 Expansion into the Supermarket Channel: In order to achieve considerable
revenue growth, Natureview should consider the possibility of extending
into the Supermarket Channel. This action may enable the business to reach
a wider consumer base and grow its market share. Maintaining the brand's
premium positioning and addressing any issues with trade promotions and

Insights and marketing costs, however, should get careful consideration.

Future National Expansion of 32-oz. Cups: A different strategy to consider is the

Marketing
nationwide expansion of 32-ounce cups, which would take advantage of the
product's longer shelf life and better profit margin. This could provide
Natureview a competitive edge in a market area that is less crowded. To
have a successful national distribution, the corporation should concentrate

Strategies
on establishing trusting connections with grocery retailers and hiring
qualified sales staff.

Children's Multi-pack: Natureview is able to launch a new product line of

yoghurt in children's multi-packs for the natural foods market. This can
take advantage of the company's already solid connections with sellers of
natural goods and meet the rising demand among health-conscious parents
for organic and natural items. To increase sales and profitability, the
business should concentrate on doing a good job of marketing and
promoting the new product range.
Channel Power
Analysis Channel
Member Reward Coercive Expert Informational Legitimate Referent
Overall
Power

´Big Box Retailers (such as Walmart, Natureview Farms M L H M H H Moderate (M)

Target, and Costco) are the channel

members with the most clout. They
have strong influence across all six Supermarkets H M H H H M High (H)
power pillars, including referent power,
expert knowledge, access to important
information, and legitimate influence.
They have considerable control and Natural Foods
Retailers
M M H H H H High (H)

influence over producers like

Natureview Farms thanks to their
dominant market position and wide-
ranging reach. Distributors H M H H H M High (H)

Big Box Retailers H H H H H H High (H)

Natureview Farm's Dilemma: Navigating Conflicts
and Challenges in Expanding into Supermarket

Brand Positioning Conflict: The premium

Conflict with Natural Foods Retailers:
brand positioning of Natureview Farm,
Natureview Farm's important partners may
which places an emphasis on high quality
become irate if their products are
and natural ingredients, may be at odds
introduced to the supermarket channel. The
with supermarkets' emphasis on sales
concept can be opposed by natural food
promotion and price. Supermarkets might
shops who see it as a challenge to their
press for price reductions that could
monopoly on Natureview Farm's products.
compromise the reputation of the brand.

Conflict between Resources and

Capabilities: Entering the supermarket
market would involve the addition of
resources, such as salespeople with
experience selling to supermarkets and
connections to supermarket brokers. The
current operational, sales, and marketing
capacities of Natureview Farm might be
put to the test by this.
Conflict in Logistics and Distribution:
Natureview may have difficulties when
dealing with supermarket distributors and
satisfying their technology and logistical
requirements, which could result in issues
with distribution and fulfilment
management.
 Points of Organic Yogurt: Natureview Farm, along with its competitors, offers organic yogurt products.

Parity:
Different Flavors: Natureview Farm, like its competitors, provides a variety of flavors in its yogurt products.

Dairy-based Yogurt: Natureview Farm's yogurt products, similar to its competitors, are made from dairy
ingredients.

Shelf Life: Natureview Farm's yogurt has a longer average shelf life of 50 days compared to its competitors,
whose products typically have a 30-day shelf life.

Competitors'
Natural Ingredients: Natureview Farm uses natural ingredients and avoids artificial thickeners, setting it apart
Points of from some major U.S. yogurt brands.

Difference: Manufacturing Process: Natureview Farm uses a special process in the production of its yogurt, resulting in a
unique smooth and creamy texture, which differentiates it from competitors.

Natureview Unique Recipe: Natureview Farm possesses a family yogurt recipe that gives its yogurt a distinct flavor and
texture, which can be highlighted as a unique selling point.

Farm's
Quality and Taste: Natureview Farm's emphasis on high quality and great taste, along with its use of natural
Potential ingredients, can differentiate its products from competitors.

Points of
3 Circles
Strong Brand: Natureview Farm has built a strong brand with a reputation for excellence in the natural foods
Difference: channel, which can be leveraged as a competitive advantage.

Insights Customer Children's Multi-Pack: Natureview Farm can explore the introduction of a children's multi-pack yogurt
product, targeting the natural foods channel. This addresses the need for a wider selection of organic

Need "White products in supermarkets and provides an opportunity for growth in the natural foods channel.

Expansion into Supermarket Channel: By entering the supermarket channel, Natureview Farm can tap into
Space" that the increasing consumer interest in natural and organic foods, providing a premium brand option for
higher-income, less price-sensitive customers.
is Not Yet Continued Innovation: Natureview Farm can focus on developing new products that cater to the evolving
Served: preferences and demands of consumers in both the natural foods and supermarket channels.
Learnings from the Analysis

´ Natureview Farm distinguishes itself from rivals by the use of natural

components, a distinctive manufacturing procedure, and a longer shelf life.
´ For Natureview Farm, the natural foods channel has been a lucrative industry,
and it is essential to sustain solid bonds with natural foods merchants.
´ The grocery channel has the potential to expand due to consumer demand for
natural and organic items, but this comes with a higher cost and risk.
´ In order to suit changing consumer expectations, Natureview Farm should take
into account releasing a kids' multi-pack product.
´ Potential channel conflicts should be managed carefully, and it should be
ensured that marketing and distribution capabilities match the selected
methods.
Segmentation Option 1: Expand Option 2:
Option 3:
Introduce
Base Decision Criteria
8-oz. cup yogurt Expand 32-oz.
in supermarket cup yogurt
children's multi-
pack in natural
channel nationally
foods channel
Potential for
Supermarkets offer Natural foods channel
Market growth with
significant growth growing rapidly, offering
Potential competitive
potential opportunities
advantage
High competition, but Less competition,
Competitive Strong relationships with
unique recipe and leverage brand
Landscape natural foods retailers
brand advantage strength
Higher trade Attractive revenue and
Financial Lower marketing
promotion and profit potential, lower
Viability expenses
marketing expenses costs
Potential to
Aligns with increasing Aligns with brand
Channel acquaint
demand for organic positioning, natural
Compatibility customers with the
products foods channel growth
brand
Development of
Additional investments Additional sales
Resource multipack product,
in trade promotions, personnel,
Requirements leverage existing
staff, etc. relationships
resources
6 Forces
Analysis
Strength of Impact on
Force Force Rationale Profitability

The yogurt industry is highly competitive with

Competitive Rivalry High High
dominant players and intense competition.

Bargaining Power of Consumers have some bargaining power, but

´Overall Market Attractiveness: Buyers
Medium
willingness to pay for natural/organic products.
Moderate
Moderate to high overall market
attractiveness, with room for expansion Bargaining Power of
Medium
Supermarkets have bargaining power, but
Moderate
Channels Natureview's differentiation can provide leverage.
in the natural foods channel and the
market for organic foods. However, Bargaining Power of Unique requirements, strong relationships, but
Medium Moderate
entering the grocery channel requires Suppliers smaller size may limit bargaining power.
significant strategic preparation. Force of
Complementary Low No significant impact on profitability identified. N/A
Goods

Force of Natural foods channel and strong retailer

Medium Moderate
Complementors relationships can positively impact profitability.

Unique taste and natural/organic ingredients

Threat of Substitutes Low Low
reduce the threat of substitutes.

Established brand, reputation, and unique recipes

Threat of New Entrants Medium Moderate
make it difficult for new entrants.
Resource or Hard / Costly to
Valuable? Rare? Organized to Exploit? Competitive Advantage?
Capability Imitate?
Yes, it provides a Yes, the unique recipe
Yes, it would be difficult Yes, Natureview Farm has
Unique Recipe and competitive edge in and process are not Yes, it differentiates Natureview
and costly for the necessary resources to
Process terms of taste and easily found among Farm's yogurt from competitors.
competitors to replicate. leverage this advantage.
quality. competitors.
Yes, it contributes to Natureview
Yes, it appeals to No, other competitors No, the use of natural Yes, Natureview Farm
Natural Ingredients Farm's overall product appeal, but it
health-conscious can also use natural ingredients is not a effectively manages its
and Shelf Life is not a sustainable competitive
consumers. ingredients. unique advantage. supply chain.
advantage.
Yes, it attracts No, other competitors Yes, building a strong Yes, Natureview Farm has Yes, it sets Natureview Farm apart
Strong Brand and
customers and builds can also build strong brand requires significant the capability to maintain from competitors and influences
Reputation
loyalty. brands. investment and time. and enhance its brand. consumer choice.
Yes, it provides access Yes, Natureview Farm has Yes, it gives Natureview Farm an
Strong Relationships Yes, building strong Yes, competitors would
to distribution channels successfully developed advantage in terms of distribution
with Natural Foods relationships takes time need to invest in
and enhances market and leveraged these and market presence within the
Retailers and effort. relationship-building.
presence. relationships. natural foods channel.
Yes, it represents a No, competitors can No, Natureview Farm does
Educated and Yes, competitors would
target market with also target educated not have a specific No, it does not provide a sustained
Higher-Income need to develop similar
higher purchasing and higher-income organizational advantage competitive advantage on its own.
Consumer Base positioning.
power. consumers. in this aspect.

VRIO Analysis
 Channel H-M-L
Power Bases Rationale
Member Rating
Natureview Farms has expert power due
to its knowledge and expertise in
Expert Power, Referent manufacturing and marketing
Power, Coercive refrigerated yogurt. It also has referent
Natureview Farms M
Power, Informational power as a recognized and respected
Power brand. However, its coercive power is
limited, and informational power may
vary depending on the situation.

Supermarkets hold reward power as they

control access to a large customer base
Reward Power, and have significant buying power. They
Supermarkets H
Informational Power also have informational power as they
possess valuable market insights and
data.

Natural foods retailers have expert

power in the organic and natural foods
Expert Power, Referent
market. They often have a loyal
Natural Foods Retailers Power, Informational M
customer base and can influence
Power
purchasing decisions. They also possess
valuable market information.

Appendix
Distributors to supermarkets hold reward
Distributors to power as they control access to
Reward Power M
Supermarkets distribution channels and can provide or
withhold access to the desired market.

Natural food distributors and wholesalers

Natural Food also hold reward power as they control
Distributors & Reward Power M access to distribution channels and can
Wholesalers provide or withhold access to the desired
market.

Big box retailers have significant market

Big Box Retailers (e.g., power and hold reward power due to
Walmart, Target, Reward Power H their large customer base, strong
Costco) bargaining position, and ability to drive
sales volume.
Summary of Key Insights, Implications,
and Learnings:

´ Due to their control over a vast client base and enormous purchasing power, supermarkets
and big box merchants have the most total power.
´ Due to its reputation as a trusted brand and its proficiency in producing and marketing
chilled yoghurt, Natureview Farms has a moderate amount of influence.
´ Retailers of natural foods, distributors to supermarkets, and distributors and wholesalers of
natural foods all have comparable power levels, which is mostly driven by their incentive
power to grant access to distribution channels.
´ For Natureview Farms, natural food merchants, and distributors in the organic and natural
foods sector, expert authority and referent power are significant sources of power.
´ Supermarkets, natural food stores, and Natureview Farms all have a lot of informational
power since they have access to insightful market information.
´ The channel members under study all have relatively modest coercive power.