Analysis of Natureview farm case study as a part of Marketing Management internship under Prof. Sameer Mathur, IIM Lucknow

1. NATUREVIEW FARM-Case study
Keep Healthy-
Love yogurt

2. A small yogurt
Manufacturer since 1989
1989

3. • Founded and manufactured in
Cabot, Vermont.
• First entered Market 8-oz and
32-oz.
• Uses Natural ingredients with
longer average shell life of 50
years.
1989
• Revenue growth from $ 100K to
$13M
• Fruit on the bottom yogurts
1999
• Expanded to 12 flavours
• Multipack yogurt2000

5. Natural yogurt(Organic).
8-oz size with 12 flavours.
32-oz size with 4 flavours.
Affordable according to its channel.
Natural food channel, Wholesale club
National retailer channel, Convergence and drug stores
It’s natural flavour with high quality increased growth in the national
distribution and natural food channel.
Low cost Guerilla marketing.

6. • No artificial , only natural
ingredients.
• Market leader with 24%
share in Natural Foods
Channel
• Highest shelf-life products
• Strong Channel Partner
Relationships
• Highly dependent
on brokers
• Only in natural
food channel/not
supermarket
• Still a small share
in the full yogurt
market
• 12.5% growth rate
with multi-packaged
products for children
• Supermarket channel
SWOT ANALYSIS
• Not sufficient capital
and financing options
• No experience with
supermarket channel
• Competition
intensifying.
• Cannibalization of
sales

7. PRESENT SITUATION

8. Current VC Firm needs to cash out
of its investment
The Management team needs to
find a way to increase the firm’s
revenues to $20M by the end of
2001

11. Yogurt Market Share by Packaging Segment
74%
9%
8%
9%
Yogurt Market Share by Packaging
Segment
8-oz small cups
Children's Multipacks
32-oz cups
others

12. 0%
5%
10%
15%
20%
25%
30%
Northeast West Southeast Midwest
Yogurt Market Share by Region
Yogurt Market Share by Region

13. 3%
97%
Yogurt distribution Channel
Natural food stores
SuperMarkets

15. Yogurt Market Share by Brand

16. Yogurt
Production
Costs and Retail
Prices by
Channel

18. Expand 6 SKU’s of the
8-oz product line into
one or two selected
supermarket channel
regions.
The 6 SKU’s chosen
were the best selling
SKU’s of the zone.

19. PROS

21. Expand 4 SKU’s
of the 32-oz size
nationally

22. PROS

24. Introduce 2
SKU’s of the
children’s
multipack into
the natural
foods channel

25. PROS

29. Financial Analysis-Option 1

30. Financial Analysis- Option 2

31. Financial Analysis- Option 3

33. Option 1:
• Financials-higher revenue.
• Only a regional distribution instead of national
which should make it easier to implement.
• Competitors are going to move into the
supermarket space and we may miss a huge
opportunity by not taking the risk.
• Higher slotting fees leads to more visibility of the
product.
• Accelerating growth rate.
• Market penetration.

35. • Choose 6 best flavours that were sold from natural
foods.
• Marketing Mix : 8-oz , $0.78 located in-store with
other major yogurt manufacturers, in-store
promotions.
• Hire talented and knowledgeable people for
supermarket channels.
• Start developing the relationships with supermarket
distributors
• Utilize more sophisticated technology to monitor
sale trends.

37. DISCLAIMER
This presentation is created by Sai Varun Mula, IIT Roorkee during Marketing
Management Internship under Prof. Sameer Mathur, IIM Lucknow.