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
3. Identify all costs, other than variable costs, for the trade show distribution strategy. Categorize these costs as investments and fixed costs (per trade show and for fiscal 2005).
Bernard Malamud was brought up in the mid 1900s, a time period when baseball played a huge role in the lives of many Americans. Americans loved baseball because it gave them a chance to stop working and simply relax while they cheered on their favorite team. It was a time when people played baseball solely for the love of the game and the thrill of hearing the fans cheer for them. Today, however, baseball is much more corrupt, and many athletes are only in it due to their own greed and selfishness. This strong desire for money stems from some important players in the past, such as Babe Ruth and Joe DiMaggio, who were outstanding athletes and grew very overconfident in their abilities. They became so confident that they began to demand
The budget analysis shows that the labor hours of the firm are higher than the budgeted amount. As such, the firm needs to evaluate the cost benefit analysis of making or buying their products. To make this decision, various factors need to be considered. Before making the decision, Peyton needs to evaluate the marginal costs and revenue of making versus buying the products. The firm should take the option which provides the highest marginal profit which is the
a) In the first set of calculations, the staff used a discount rate of 20%, a five-year time horizon, and ignored taxes and terminal value. What is the relative attractiveness of these three alternatives?
Option one was chosen over options two and three because, I believed it will produce the best results. The company image will be maintained more with this choice. Consumer confidence I believe will be higher. I believe stock prices will be more stable and may increase once investors realized
* Least expensive of the three strategies due to the lack of excess inventory and employee overtime
After learning that many of its customers were shopping at a nearby health-food store for grass-fed beef and organic milk, REF:-Price Grocers began stocking more organic items. REF:-Price Grocers adjusted its marketing strategy based on:
The environment effected and continues to effect human culture and history. Thus, one cannot fully understand American history without exploring the immense role of nature in it. In the novel The Republic of Nature the author, Mark Fiege, utilizes environmental context to form new connections between previously thought to be unrelated historical events. Fiege chooses significant occurrences in America's past and then with the incorporation of nature, he reintroduced the events, providing fresh and innovative perspective, insightful explanations and provocative conclusions. Mark Fiege´s ultimate goal is to impact how the reader perceives the role of environment in history. Through further
managed effectively in one way or another, that is $1.8 billion in merchandise. If half of these customers choose
The company distinguishes its products from the competition by using natural ingredients and a special process that gives the yogurt it creamy and smooth texture without having to use thickeners. Other distinguishing factors for Natureview includes using milk form cows that have not been treated with rGBH and the average shelf life of Natureview yogurt is 50 days instead of 30 days. Over the past 10 years, Natureview revenues have increased from $1000,000 to $13 million. Natureview offers 8oz and 32 oz. cups for purchase. Initially starting out with two flavors, Natureview has expanded to offer twelve flavors in the 8 oz. cups and four flavors in the 32 oz. cups. Sales of the 8 oz. cups made up 86% of Natureview’s revenue while sales of the 32 oz. cups made up the rest (14%). Natureview has found a niche market in the natural foods channel. Customer can find Natureview yogurt at a variety of natural food retailers including Wild Oats, and Whole foods. The price for Natureview yogurt at natural food stores was $0.88 for an 8oz cup and $3.19 for a 32 oz. cup. Compared to supermarket channels ($0.74 for 8oz, $2.70 for 32 oz.), prices for Natureview yogurt was higher due to multiple parties involved in the distribution. Natureview has to use three distributors in order to get the product to consumers. Each distributor collect their margins, which leads to higher prices.
2. Go through a margin analysis, and determine how much revenue ServiSoft will realize per unit under both distribution options.
Besides, the company’s focus on the 8-oz and 32-oz, the sizes that were not being offered by other companies, made Nature view to effectively compete with other established companies that ultimately granted it breakthrough in the market. In the natural food channel, Natureview’s brand had 45% share that was attained through the company’s unique quantity of packaging.
To perform a break-even analysis, we have made the following assumptions: (a) retail margin= 60%, (b) the additional fixed cost of production per flavor, including advertising, bottling run and sundries, is $10 million and this is assumed to be an annual cost, except the bottling run, (c) a conservative estimate of percentage share of market figure is derived by multiplying the market segment percentages, as well as the age segment percentage for the category > 40 yrs. The percentage = 74% x 62% x 85% x 40% = 16%. We first determine the retail
The clients leave their stores with a better feeling about themselves since they understand that when they choose Jamba, they have opted for a healthier lifestyle.”(jambajucie.com) Jamba Juice must try to execute this vision statement by adding organic fruits and vegetables and advertising on the new addition. People want to sat healthy and aren’t going to go to Jamba Juice if they find out it is not healthy. Jamba Juice needs to market them so that it can make a better impression of the store in people’s mind.
-at 24% user penetration the option A (pizza kit plus toppings) would allow a margin of $12,570 millions while the option B (pizza only) let a total factory sales amount of $35,137 well below the $45,000 millions basic business requirements.