NATURE VIEW

CASE ANALYSIS
Submitted By :
Group 9

Aman | Aishwarya Solanki | Monika

| Prithwi Banerjee | Rohan Kamath |
Sakshi Choudhary

1
Background ( 5Cs Analysis)
COMPANY
● Founded in 1989
● Manufactured and marketed
refrigerated cup yogurt
● 2 sizes cups:
1) 8 oz - 12 favours (86%
revenues)
2) 32 oz - 4 flavours (14%
revenues)
3) Multipack yogurt
products for children
( 4 oz cups and tubes)
CUSTOMERS
● Shoppers at Natural store
tended to me more
educated, earn higher
incomes, and be older than a
typical supermarket shopper
● 46% - Supermarket
● 25% - Health food store
● 29% - Natural Health
Supermarket
● Consumed by 40% of the US
population with 70% women
● Children, mothers etc
COMPETITION
● The major share was taken
by majorly 4 competitors
which were Dannon, Yoplait,
Breyers and Colombo, with
two competitors sharing the
50% market
● Horizon Organic - Obtaining
Supermarket Distribution,
National brand in Food
Stores
2
 CONTEXT COLLABORATORS

● Opportunities : the organic food ● Leading natural food retailers

market was predicted to grow to including the chains whole food
$13.3 million in 2013 from $6.5 and Wild Oats
billion in 1999 ● Sales Brokers
● Threats : Strong competition ● Suppliers
from gig competitors for shelf ● Distribution Partners
space in the supermarket
distribution channel.

3
Decision Problem

Should the company expand into supermarkets chain or

strengthen existing distribution networks to reach 20
Million in revenue by 2001.

4
Alternatives

Alternative 1 Alternative 2 Alternative 3

To expand six SKUs To expand four SKUs To introduce two

of the 8-oz. product of the 32-oz. size SKUs of a children’s
line into Eastern and nationally multi-pack into the
supermarket regions natural foods channel

5
Evaluation of Alternatives
Alternatives Alternative 1 Alternative 2 Alternative 3

Pros ● First mover ● Strong competitive ● Strong profit contribution

advantage advantage
● Expected 1.5% ● Above avg gross profit
market share margin(43.6%)
● Consumer in these ● Smaller lengths of
areas are more likely channel to market
to go for organic ● Low on average trade
promotion expense
● Low sales and
marketing costs
● Natural foods channel
growing faster than
supermarkets

Cons ● High risk and cost ● Slow growth rate ● Not having required
● Risk of shift from ● High risk resources and skills set
current operations ● Sales force expansion ● Impact on current sales
and entering mass cost ● Low expected revenue
market distribution ● Issue of pricing ● Requires R&D to
channel differently develop product
● Horizontal channel
conflicts
6
Recommendations

● Our recommendation is to opt for option 1 as it would significantly increase both revenue and
profitability at the end of year 2001,reaching beyond the target revenue of $20 million
● Natureview will enjoy first-mover advantage of natural products in yogurt category at
supermarkets with the most purchased 8 oz pack
● The risks involved regarding the relationships with traditional channel members can be
managed by providing some extra benefits to them and keeping some product lines exclusive
for natural product retailers
7
Thank you