Nature View Farms Case Study

Consumers are increasingly skipping breakfast and morning food sales are on the decline. Yogurt tastes are changing as well, with many consumers opting for Greek yogurt as opposed to regular yogurt. GIS was greatly impacted by these changes in consumer preferences and saw US cereal sales drop 3% from 2017 to 2016 while US yogurt sales dropped 18% year-over-year. In July of 2017, GIS introduced a new French Style yogurt brand to appeal to changing consumer tastes and increase yogurt sales. One positive for the industry is that consumers are snacking more often. Consumers want convenient filling foods that fit in with their busy lifestyles. The packaged food industry can take advantage of this growth capitalize on the growing popularity of quick meals and nutritious snacks. Snacks comprise 21% of GIS’s total net sales and this is expected to continue to grow as GIS introduces more healthy options. Another concern is aging populations in the developed world. As consumers age, their dietary needs change. Older populations move away from many foods products with high levels of sugar and fat in favor of more nutritional products. There is slow population growth with birth rates below the replacement level in many developed nations. This decline in new consumers is a problem for the industry as they can no longer rely on consumer growth

Trader Joe’s is in the broad market of grocery retailers, a market where the top 10 revenue-generating companies accounted for over $360 billion in sales in 2011. This market is saturated with supermarkets (Publix and Kroger), large discount retailers (Wal-Mart and Target), premium retailers (Whole Foods and Fresh Market), warehouse clubs (Costco and Sam’s Club), and “hard discount” retailers (Dollar General). With this large variation in grocer strategies, the market is heavily penetrated and competition is fierce. Supermarkets are continually losing market share in grocery sales (51 percent in 2011 as opposed to 66 percent in 2001) as players like Wal-Mart and Costco continue to generate more revenue. Although the supermarket share is decreasing, the overall grocery market is steadily increasing as the population of the United States increases. People always need to eat, so there will always be a

One of Trader Joe’s competitive assets is their business model. They open small stores that give their customers a neighborhood feel. Analysts have found that the chain sells almost twice as much per square foot as its main competitor, Whole Foods (INVESTPOEDIA, 2016). This unique strategy allows consumers to view and choose more products in a given area, therefore making them more likely to find what they are searching for. This strategy is sustainable if Trader Joe’s continues to operate in this manner.

Today an increasing desire from consumers is to have healthy and organic product offerings. While

With Kroger ranging from a variety of goods, it gives Kroger a wide diversity of strengths for the external environment. Some of the strengths are the fact that Kroger has an online market. Customers can order jewelry, deli and bakery products, floral, and more with the click of a button. This puts them higher up on the competition list for the advanced technology and convenience provided to gain loyal customers. Another strength is that Kroger has stores spanning across thirty five states, which is more than half the nation. This gives the company a wide geographical range in order to compete with surrounding stores. A threat into the external environment would be the competition between supermarkets. The trick is to offer something that large corporations cannot compete with. Kroger is known for its organic line of groceries, called Simple Truth, and its naturally fresh foods and produce. While companies such as Walmart or Costco can offer fresh foods, they are not as focused on the pure organic part. They are more about selling in bulk, and offering discounts, low prices, packaging, and quality. Kroger, on the other hand, can focus more on promoting their organic brands of groceries to attract customers. The natural and organic brand of Simple Truth can factor in Kroger’s opportunities, as Simple Truth is growing, now with over 15,000 organic food items. This allows Kroger to provide a huge variety of food and healthy choices to its customers.

Kudler’s Fine Foods has competitors, such as Corti Brothers, Whole Foods, and other major grocery store chains that have loyal consumer bases. Each company has dealing in the grocery store industry, but target different markets. Chains like Walmart Supercenters or Winn-Dixie have different goods and service made available to new consumers, which have taken over the grocery store market. For example, organic goods, buyer programs and slashed prices are offered at these stores causing consumers to flock to locations. Whole Foods, Trader Joe’s among others, offer natural and organic foods and varieties of produce, which is in direct competition with Kudler’s (Whole Foods, 2009). Kudler’s products can match the quality standards of its competitors.

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The natural and organic food industry are in no doubt the most dynamic and diverse in recent years; traditional supermarket chains such as Kroger Company, Costco, and Wal-Mart have also begun undertaking in the natural and organic food market offering competitive prices (Sonya Bells, Whole Foods Market after Fiscal 2015: the Whole Story, marketrealist.com). However, to me, the two brands that resonate the most in this service sector, at least locally here in Columbus, Ohio are Whole Foods Market, Inc and Trader Joe's.

Whole Foods Market is a superstore chain in Austin Texas that deals in natural and organic food products exclusively. The organization ranks among the most socially responsible organizations in the world, and the fourth placed in the US Environmental Protection Agency list. The trading organization exists within a market crowded with competitors from its area of operations, and those who offer contrary products to what it proposes. Therefore, answer to the question of how it manages to survive within such a competitive environment is only understandable if we evaluate the different types of market structures. The markets have different characteristics, which determine the strategies applied by the various organizations in the continuum (Etro, 2009).

Trader Joe’s operates over 340 stores in 9 states were they “buy direct from suppliers whenever possible, bargain hard to get the best prices and then pass the savings on to the customer” (Trader Joe’s, 2013, para. 4). Whole Food’s Market is the “world’s leader in natural and organic foods, with more than 360 stores in North America and the United Kingdom” (Whole Food, 2013, para 2). Trader Joe’s and Whole Food’s Market have managed to take original ideas and spread them throughout the nation to many different customers. Although they differ not only in the technique in which they decide to bring products to their customers but also in term of inventory management and supply chain organization. These two companies have become so successful in my opinion, not by what they differ in but what they have most in common, which is their commitment to their loyal customers, employees and undeniable quality in their products they sell. Through their loyalty to their customers and employees in addition to their irreplaceable value

The competition to a chain retail grocery store, such as Kroger, is not limited to other

Natureview has succeeded in the natural foods channel over the usage of sales brokers that send its yogurt to natural food stores. Nature View has prospered by apprehending 25% of the natural food market. To cement the success, the company has planned to raise the sales of its 8 grain and 32-ounce portions and to create apportion diversity by introducing the children multi-pack.

For supermarket and restaurant chains, the sale typically is made to the purchasing department/buying division of the retailer. These sales often involve a significant amount of field testing by the direct sales force, giving Tasteless a competitive advantage. Tasteless heavily advertises its products in trade magazines and attracts individual sales through advertising in media such as health care magazines. Individual clients include CEOs of Fortune 1000 companies, as well as individuals from coast-tocoast. Management’s objective is to establish Tasteless as the most recognized and respected tea brand in the U.S. market, eventually supplanting Lipton Tea as the market leader in tea brand recognition and tea sales in both the higher-end and lower-end tea markets. While Tasteless currently is experiencing some sharp growing pains, the good news is the growing interest in different types of non-traditional beverages, combined with increasingly health-conscious baby boomers and younger adults. These factors have tripled sales over the past five years ending December 31, 2008. At the same time, new local and regional competitors with a bevy of new products are offering fast delivery from local production centers and in some cases lower prices, challenging Tasteless for retail shelf space. Without this shelf space, especially in supermarkets, Tasteless’ tea products cannot be retailed on a volume basis. Tasteless has

This case involves a mid-sized, regional grocery store chain called Reed Supermarkets. Reed has 192 retail stores, two regional distribution centers and 21,000 employees in five states in the Midwest of the United States. This case discusses Reed’s market strategy for the Columbus, Ohio, market in particular, which is one of Reed’s largest markets. The Columbus market has grown slightly over the past five years, while Reed’s market share has dwindled slightly in the market. Reed has watched their market share stagnate with the entrance of new competitors (10% growth in stores) and a dramatic shift in customer preferences to value or

willing to pay $0.50 or more for a K-cup. By pricing the K-cup for $0.50,which is similar to Kcups in the OCS market, KADs will not lose revenue from their segment. Premium flavor cups for