Natureview Farm - Grade: 100 PDF

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Jordan Pettinger MKTG 4020 March 27th, 2018 Natureview Farm Success in Channel: Natureview Farm has succeeded in the Natural foods channel with its unique flavor and texture of the family recipe, developed by the company’s founder. Using natural ingredients gave the yogurt its smooth, creamy texture. Natureview also used milk from cows untreated with rGBH, and its yogurt had a longer shelf-life than competitors (50 days rather than 30), giving Natureview a strong reputation for high quality and taste. Natureview also had an advantage of emphasizing the use of natural ingredients, aided by low-cost “guerilla marketing” tactics that worked well in this channel, in gaining national distribution and shared leadership in the natural foods channel (a growing market). As a major brand in this channel, Natureview Farm developed strong relationships with food retailers such as Whole Foods and Wild Oats. Financial Comparisons: Option 1: -Revenue $25,900,000 -$35,000,000 Sales -Expenses Increased by $320,000 (Annually) -Achieve 1.5 shares of Supermarket Sales

Option 2: -Revenues $14,850,000 -$5,500,000 Sales -Expand into 64 Supermarkets -Marketing 10% Lower$120,000 Annually -Supermarket Broker costs$160,000

Option 3: -Revenues $6,030,000 -$1,800,000 Sales -37.6% Gross Profitability of the line -Cost 2.5% of the Products Line Manufacturers Sales

Action Plan: If Natureview is targeting $20 million revenue in one year, options 1 and 2 are the only viable choices. Natureview will need to move into the Supermarket channels in order to increase overall revenue. Natureview should choose option 2, because it is a realistic option to reach their $20 million target, while maintaining its brand image, and relationships with natural distributors. However, if Natureview had a slightly longer timeframe to reach its desired $20 million, I would suggest a hybrid of options 2 and 3, in order to maintain its foothold within the Natural Market (natural market growing almost seven times faster than supermarket channel). With an extended deadline, a new product could later be introduced into the supermarket channel. Natureview should employ more sales personnel, to communicate with supermarket brokers. The company should also employ a marketing team—marketing is extremely important if Natureview is going to compete with Danon.

Thoughts: Option 1: Con: Riskiest option, damages brand image, damages relationships with natural distribution channels Pro: (Potential) Revenue Increase greater than the $20 million target Option 2: Con: Selling to supermarkets could damage Natureview’s brand image, their relationships, and more competitors such as Danon in supermarkets. Pro: Less damaging than Option 1. Natureview could ease into new channel, it is less risky selling less popular item, but it is more profitable than 32oz cup. Option 3: Con: Low revenue option and is below targeted $20 million. Developing a new product could be introduced into supermarkets. Pro: Maintains premium brand image with low initial costs, also maintains strong relationships with natural distributors....