Natureview Farm

Natureview Farm
Group 2
Nicole Cannon, Ina Choi, Dan Guzman, Jessica Hickey, Lyndsey Petrofsky,

Company History
1989
1996
1997
1999
2000
➔ Natureview founded
➔ Limited product offering
➔ Steady profitability achieved
➔ Equity infusion with VC firm
➔ Revenue growth
➔ Product lines expanded
➔ VC firm seeks to cash out
➔ Product lines further expanded
➔ Feb 2000 - current time of case
Company History Problems Analysis Advantage Options Recommendations Alternatives Implementation Updates

Must have revenue of $20 M by end of 2001
Strategic Decision Making
○ Expand into supermarket?
○ If not, how does Natureview reach that goal
Decide between 3 options or propose another
Problems Natureview is Facing

Issues of Channel Management
Issues on Entering into Supermarket
Unstable sales promotion and price for premium brand positioning
More demanding than natural foods channel
(Not prepared for the demands and staffing)
High cost, change, and trauma from entering
Issues on Staying in Natural market
Less profit through the limited distribution
Longer distribution process on channels than supermarkets

Natureview SWOT
Weaknesses
● Highly dependent on
brokers
● No constant financing
● Small company
● Only dominant in natural
food channel/not
supermarket
● Small share in the full
yogurt market
Opportunities
● Sales had grown 20%
per year
● Price of product could
be lower
● 12.5% growth rate
● First mover for natural
yogurt entering
Threats
● No sufficient capital
and financing options
● Might not be able to
compete in the
supermarket channel
● Being dropped out of
traditional channel
Strengths
● Strong and trusted brand
● No artificial thickeners
● Natural ingredients
● Longer shelf life
● Uses low-cost “guerilla
marketing”
● Market leader
● Strong relationships
natural foods retailers

Natureview Financials

<Yogurt Market Share by Brand>
Marketing Research & Competitors

Horizon SWOT
Strengths
● Organic and natural
ingredients
● Known as a national
brand
● Largest supplier of milk
Weaknesses
● Limited product
variation
● Shorter shelf life
Opportunities
● Target toddlers and
children
Threats
● Potential acquisitions
● Competition from
other organic brands

Danone SWOT
Strengths
● Market leadership
● Globally recognized
brand
● Innovator in dairy
industry
● Product differentiation
● Good quality and healthy
Weaknesses
● Limited market share
● Presence of many
players
Opportunities
● Product line extension
● Acquisitions and
mergers
Threats
● Emergency of grocery
brand dairy, “bargain
brand”
● Greek Yogurt
● Competition

Dannon Financials

Yoplait SWOT
Strengths
● Brand positioning
● Distribution networks
● Natural ingredients
Weaknesses
● Low shelf life
● High inventory costs
Opportunities
● Educate consumers
about health benefits
● Expand operations to
developing markets
Threats
● Highly fragmented
market
● Local brands
account for
increasing share of
sales

Yoplait Financials

Consumer Trend in Yogurt Market

Consumer Trend in Yogurt Market
“In recent years, U.S. consumers have embraced not only Greek
yogurt, but also authentic, clean-label and organic versions, as
well as yogurt drinks, which are becoming more accepted with
sales growing rapidly.”
<”Yogurt Sales Approach $9 billion,” Richard Tursik>

Recipe from Founder
Longer shelf life
Proprietary
All natural
Competitive Advantage of Natureview

Competitive Advantage of Natureview

Advantages Risks
*Option 1
“Let’s expand six SKUs of the 8-oz. Product line into one or two selected supermarket channel
especially in Northeast and West Region”
Suggested 3 Options by Senior Management Team
● Most preferred size by consumer demand
● Hugely potential revenue
● First mover advantages entering into supermarket
(ex.Silk Soymilk, Amy’s Organic Foods)
● High risks and costs
● Quarterly trade promotions
● High Advertising and marketing expenses
● Slotting fee once

*Option 2
“Let’s expand 4SKUs of the 32-oz. Size into supermarket nationally”
● High gross profit margin compared to 8-oz line
(43.6% vs. 36%)
● Fewer competitors
● Longer shelf life
● Low marketing expenses
● High slotting fees based on many retailers
● Uncertainty to be distributed nationally in a year
● Competitors having heavy users on 32-oz yogurt
Advantages Risks

*Option 3
“Let’s introduce 2SKUs of a children’s multi-pack into the natural foods channel”
● Children’s multipack connected to natural markets
● Total yearly revenue&incremental unit volume 1.8M
● Gross profitability 37.6%
● Low sales expenses and marketing expenses
● Uncertain factors that the company can’t anticipate
● Can’t attain target
Advantages Risks

Option 1
○ Expected revenue growth of $25,900,000 causing a total revenue of $38,900,000
○ 8-oz cups represent the largest dollar and unit share
○ First mover advantage
○ Fellow organic brands have experienced a 200% growth in revenue within first two years
Recommendation

Recommendation

● Add new flavors
○ Provides variety for the health conscious consumer which can increase market share
● Add Greek yogurt line
○ Healthier, aligns with brand image
● Add Gluten Free, Gelatin Free
○ Aligns with health conscious image
● If 18 month window were given, go for Option 3
Alternatives

Implementation Strategy
Contact
supermarkets in
the Northeast
and West
regions
Pay slotting fee
Start advertising
campaigns

● Natureview is not a real company, but based off of Stonyfield Organic
● In 1999, Stonyfield launched the first yogurt on the market for babies and toddlers called YoBaby. This product
was also the company’s first product that was introduced nationally in supermarkets
● In 2001, 40% of Stonyfield Organic was purchased by Groupe Danone. This was followed with additional
purchases that led to Danone owning the entire company in 2014
● In July 2017, Danone agreed to sell Stonyfield to Lactalis, the second French dairy giant
Natureview Today

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