Essay on Nature View Case Study

Decent Essays

The core focus of the case for us is to look at alternative strategies for going to market, which are the issues raised in questions 1, 2, 4, and 5. It is sometimes useful to create models in excel to help evaluate one’s options which I have referenced in 3a and thru the link included below. 1. How has Natureview succeeded in the natural foods channel? Nature View has succeeded in the natural foods channel through the use of brokers who sell its product (yogurt) to natural foods retailers. Their brokers have the direct relationship with the retailers, meaning: the retailers purchase the Natureview yogurt from the brokers and not directly from Natureview itself. Using this broker distribution channel system Natureview has succeeded …show more content…

The motivating factor for entering supermarkets was based in the fact that 97% of all yogurts are sold in super-markets. More importantly to Natureview, 46% of organic food eaters shop at supermarkets. If Natureview wanted a successful presence in supermarkets it would need to develop a yogurt product line specifically for supermarkets with appropriate price points, advertising and promotional plans. Additionally, they would need to negotiate terms and conditions with the supermarkets because of the different relationship without their usual brokers. 3a. How do the three options compare financially in terms of yearly revenue, gross margin, required investment, and profit potential? Note: to help you evaluate this I have posted an excel model to HuskyCT. The three options are distinct with options one and two being more similar than option three. Initial annual revenue for option three is the only one in the positive; however, five years into each option, options one and two are roughly six and four times higher than option three respectively. Gross margins for options one and two are relatively equal, but the margin for is half for the distributer yet greater by seven percent for the retailers. The required investment for option three ($400+) pales by comparison with options one and two being nearly four and five million dollars respectively. This intial cost is offset by the potential profits over the lifespan of the options; option three yield of

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