ON
NATUREVIEW FARM
By:
Natureview Farm, a Vermont-based producer of organic yogurt with $13 million in revenues,
is the leading national yogurt brand (24% market share) sold into natural foods stores. It has
achieved this through its special yogurt manufacturing process and through cultivating
personal relationships with dairy buyers in the natural foods channel. Set in 2000, when the
company faces financial pressure to grow revenues to $20 million by the end of 2001 due to a
planned exit by its venture capital investors. The immediate decision point that the
3.5 3.35
3.19
3 2.85
2.7
2.5
0.5
0
8-oz. cup 32-oz. cup 4-oz. cup
multipack
GOAL:
“Uniquely positioned the product to capitalized on the growing trend in natural and
organic foods in supermarket”
MARKET NEWS:
“Bellini heard rumours that one of the Natureview’s major natural competitors would
soon try to expand into the supermarket channel.”
MARKET POTENTIAL :
17
25
Northeast
Midwest
Southeast
33 West
30
COMPETITOR ANALYSIS:
27% 26%
Northeast
25% 22% Midwest
Southeast
West
RECOMMENDATION STRATEGY:
Natureview Farm should expand its already successful organic yogurt product line to include
two versions of a yogurt multi-pack priced at $3.35 each. This strategy will allow the
company to reach their set revenue goal the quickest due to the fact that the annual growth
rate of sales of yogurt multi-packs is 12.5%, versus only 3% for the 6 oz. size and 2% for 8%.
The profit margins from multi-packs are also significantly higher than those of single
servings. Flavors will be chosen from the line‟s most successful flavors but will be given
creative names that will appeal to kids. The multi-packs will be positioned as the healthy
snack alternative for kids.
PROMOTIONAL IDEAS: