Natureview Farm Case

Analysis
SUBMITTED BY : GROUP 7
PGP10219 PRAGYA VERMA
PGP10223 PRIYA KUMARI
PGP10225 JINESH RAMBHIA
PGP10228 SANTOSH MISHRA
PGP10230 SEJAL VED
PGP10233 SIDDHARTH GAUTAM
Background
Company Customers Competitors Collaborators Context
• It was • Natural Food • Dannon • Whole Foods • The organic
founded in Stores • Yoplait • Wild Oats food market
1989 in • Supermarkets • Breyers is expected to
Cabot, • Columbo grow from
Vermont $6.5 billion in
• In 1999, its 1999 to $13.3
revenue has billion in
grown to $13 2013
million • U.S.
• It produced households
12 yogurt indicated that
flavours in 8- price was a
oz cups and 4 barrier to
flavours in their purchase
32-oz cups by of organic
2000 products
Decision Problem 3

To earn greater revenues needed to expand into the supermarket chains or to

strengthen the existing distribution or marketing strategy
Alternatives
OPTION-1:
EXPAND THE SUPERMARKET CHANNEL WITH 6 SKUS OF THE 8OZ. PRODUCT LINE.

OPTIO-2:
EXPAND INTO SUPERMARKET CHANNEL WITH 4 SKUS OF THE 32OZ. PRODUCT LINE

OPTION-3:
REMAIN WITH THE NATURAL FOODS CHANNEL, BUT INTRODUCE A NEW PRODUCT LINE,
2 SKUS OF A CHILDREN’S MULTI-PACK TARGETED TO MOTHERS
 Evaluation of Alternatives
Options Positives Negatives
Option 1-( Supermarket • Largest segment • Upset Nf partners
8oz) • Pre-empt Competition • Organizational
• Other naturals brand Requirements
entered • Large investment
Option 2- (Supermarket 32 • Longer shelf life • More expensive
oz) • Higher gross margins • Low invisibility
• Less market investments
Option 3- (Natural foods, • Supports current fast • No long term potential
children’s multipack) growing channel • Does not meet $7 k VC
• Low risk revenue growth criteria
• Lowest sales/market
investment
Quantitative Evaluation 6

Option Option1 Option2 Option3

Gross Margin 33% 41% 38%
Unit Sales 42,000,000 5,500,000 2,070,000
Revenue Projection 44,080,000 27,850,000 19,934,500
Cost $13,020,000 $5,445,000 $2,380,500
Gross Profit $31,060,000 $22,405,000 $17,554,000
SG&A $640,000 $160,000 0
Marketing $2,400,000 $480,000 $250,000

Broker’s fee (4% revenues) $772,800 $367,400 0

Complementary cases 0 0 $173,363

Net Profit $27,247,200 $21,397,600 $17,130,637

Recommendations 7

 Going for Option 1 will help the firm achieve its objective as it provides the
highest profit margin
 Also it has the first mover advantage that will help the firm gain its footing into
Supermarket channel
• 8 – oz. yoghurt is highest in demand in the market
• Will get more exposure to customers touch points with the help of
supermarkets
THANK YOU