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Natureview Farm is facing three options to increase its revenues by 50% before the end of 2001: 1. Expand six SKUs of 8 oz yogurt into eastern and western supermarkets, with an anticipated value of $35 million but requiring a revamp of marketing and operations. 2. Expand four SKUs of 32 oz yogurt nationally into supermarkets, with an anticipated value of $5.5 million. 3. Introduce two children's multipacks into natural food channels, with an anticipated value of $1.8 million. The options must be evaluated based on their ability to meet the revenue goal and financial implications for Natureview Farm.

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Shambhavi Khandolkar Amonkar
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54 views2 pages

Assignment

Natureview Farm is facing three options to increase its revenues by 50% before the end of 2001: 1. Expand six SKUs of 8 oz yogurt into eastern and western supermarkets, with an anticipated value of $35 million but requiring a revamp of marketing and operations. 2. Expand four SKUs of 32 oz yogurt nationally into supermarkets, with an anticipated value of $5.5 million. 3. Introduce two children's multipacks into natural food channels, with an anticipated value of $1.8 million. The options must be evaluated based on their ability to meet the revenue goal and financial implications for Natureview Farm.

Uploaded by

Shambhavi Khandolkar Amonkar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Q1: How do the 3 options compare ?

Also give the financial implications

Q2: Which option would you choose and why?

Submission in a word doc, not more than a total of 4 page

ISSUES

 VC needed to cash out of its investment


 Need to find a path to grow revenues by over 50% before the end of 2001 ($20 mil)
 Should Nature view Farm expand into supermarket channel?

Its manufacturing process including the special recipe, longer shelf-life, no artificial ingredients,
and product variety differentiated the brand and positioned it distinctively.
Q1 : How do the 3 options compare ? Also give the financial implications

Answer: Natureview farm, founded in 1989, manufacturer of refrigerated cup yogurts was a
industry leader with facilities in Cabot, Vermont. The yogurt was made using a special recipe,
having longer shelf-life (50 days) with no artificial ingredients. The company was the market
leader with 24% Market share selling the product via Natural Foods Channel.

The current plight was to increase its revenues by 50% ($20 million) by FY 2001 in order to meet
its Revenue Goal. Adding to the unfortunate situation was the withdrawal done by Venture
Capitalist firm.

Natureview had three options to solve the above problem. The options are being sated below:

Option Description
No Anticipated
Value
1 Expand 6 SKU’s of the 8 oz. size into eastern and western 35,000,000
supermarkets
2 Expand 4 SKU’s of 32 oz. size nationally into super market 5,500,000
channel
3 Introduce 2 Children multipacks into natural food channels 1,800,000

Comparison to the above options are as follows:

OPTION 1:

This option seems high revenue generating but involves a higher risk as the company has never
tried or operated using the stated operating channels. A revamp would be needed to the
existing marketing and operating procedures to adapt to this option. The

Guerrilla marketing is an advertisement strategy in which a company uses surprise


and/or unconventional interactions in order to promote a product or service. It is a type of
publicity.

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