Natureview Farm Harvard Case Analysis Made by Raghav Maheshwari

6. • Yogurt is consumed by 40% of US population.
(70% of these are women)
• Supermarkets sold 97% of all yogurt
consumed.
• 6 and 8 oz. cups most popular and comprise
of 74% of total sales.
• Natureview farm had strong reputation for
high quality and great taste.
• Shelf life - 50 days as compared to 30 days of
other big brands.
• Natureview produced natural yogurt(organic).

7. Revenues
8-oz. 32-oz.
8-oz. – 12 flavors
32-oz. – 4 flavors
Also started children’s
4-oz. cups and yogurt
packaged in tubes.

8. Manufacturer
Distributor
Retailer
Customer
Manufacturer
Natural Foods Wholesaler
Natural Foods Distributor
Retailer
Customer

9. Product Manufacturing
Cost
Gross
Profit
Selling
Price
8-oz. $0.31 36% $0.4216
32-oz. $0.99 43.6% $1.4216
Children’s Multi-
pack
$1.15 37.6% $1.5824

14. • 8-oz. cups had significant revenue
potential.
• Other brands were very successful in
their expansion.
• Growth of organic yogurt sales at
supermarkets were expected to rise at
20% per year.

15. • Quarterly trade promotions needed.
• High slotting cost.
• Adequate staff not available for marketing.
• Very high competition from well established
brands in supermarkets.
• Will affect relations with Natural Foods
Channel

16. • Natureview selling price = $0.4216
• Incremental annual sales = 35 million
• Increased Revenue = $0.4216 * 35 million
= 14.756 million
Revenue growth target achieved.

18. • 32-oz. cups generated above average
gross profit for Natureview (43.6%)
• Natureview had special advantage
because of longer shelf life.
• Less competition as compared to 8-oz.
cups
• Lower marketing expenses

19. • Difficult to achieve nationwide distribution
in just 12 months.
• Expansion in 64 supermarkets required lot
of slotting fees.
• Launching 32-oz. cups in supermarkets can
get unnoticed.
• A competitor in organic yogurt Brain Vista
was coming up

20. • Natureview selling price = $1.4216
• Incremental annual sales = 5.5 million
• Increased Revenue = $1.4216 * 5.5 million
= 7.818 million
Revenue growth target achieved.

22. • Already had strong relationships with
Natural Foods Channel
• Necessary skill-set available.
• Better profit and no additional SG&A cost
• Perfect positioning to launch children’s
multi-pack.
• Natural Foods Channel growing at 7 times
as compared to supermarkets.

23. • Objective of revenue generation may not
be achieved
• One day to become big it has to make
business in supermarkets
• Demands of local dealers may increase
with sales.

24. Revenue growth target not achieved.
• Natureview selling price = $1.5824
• Incremental annual sales = 1.8 million
• Increased Revenue = $1.5824 * 1.8 million
=2.8483 million

26. •Targeted Revenue Generation
•Effect on existing relationships
•Additional marketing costs

28. • Revenue generation objective is fulfilled.
• Additional cost although high but lower than
1st option can be easily recovered in future.
• Small market share of 32-oz. cups will not
affect existing Natural Foods stores much.
• Longer shelf life will always give an edge over
other brands.

29. • Natureview Farm - organic yogurt
manufacturer
• Needed revenue growth from $13 million to
$20 million.
• Expand in Supermarkets or elaborate existing
Natural Foods Channel
• 3 Options suggested
• Finally, expanding 32-oz. cups in Supermarkets
most suitable option.

30. Created by RAGHAV MAHESHWARI, NIT Jaipur,
during a marketing internship by Prof. SAMEER
MATHUR, IIM Lucknow.