Natureview Farm building Case Study Report
Natureview Farm, a Vermont-based organic and natural yogurt company with total annual revenues of 13 mln. USD and 24% of market share, is actually a major company in the normal foods route. Company's command in this route was accomplished through its emphasis on natural ingredients, strong reputation for quality and wonderful taste, innovative marketing approaches and set up relationships with leading natural foods suppliers. Company now faces economical pressure to grow earnings by over 50% prior to end of 2001 by expanding in the supermarket channel. Market
5. The organic foods marketplace, worth 6. 5 billion USD it happened in 1999 was predicted to grow to 13. 3 billion in the year 2003. * 1 ) 8 billion dollars USD total U. T. retail product sales of refrigerated yogurt and sales volume was more than 2 . 3 billion USD in 1999. Programs
* Supermarkets (97% of all fat free yogurt consumed sold), natural meals stores, additional channels (warehouse clubs, convenience stores, drug shops, mass merchandisers). * Forecasted unit volume level growth of organic and natural yogurt at supermarkets of 20% annually from 2001 to 06\ вЂ“ device growth predictions of 2% to 4% for the yogurt category. * The natural food channel was growing nearly seven times faster compared to the supermarket channel (the five-year projected product growth CAGR of yogurt was approximated to be 15%). Options
2. I - Expand six SKUs in the 8-oz. Manufacturer product line into one or maybe more selected superstore channel parts. * II - Grow 4 SKUs of the 32-oz.
* 2 - Introduce 2 SKUs of a kids multipack in to the natural foods channel. Research
Even though proposed option No . 1 sounds to be eye-catching in terms of earnings potential (6 SKUs selected were the best-selling SKUs of the 8-oz. line; various other natural foods brands got successfully widened their distribution into the supermarket and improved revenues by over 200% within 2 years; the initial brand to enter would have a first-mover advantage) it in fact threatens with high hazards and costs (highly...