Natureview Farm Case

1181 Words Nov 21st, 2012 5 Pages
Natureview Farm Case
Natureview Farm is a small yogurt manufacturer with annual revenues of $13 million. It produces three different size cups – 8 oz. cup, 32 oz. and 4 oz. cup multipack. However, Natureview’s goal is to increase its annual revenue to $20 million in two years. With a solid relationship with its current, successful strategy in the natural foods channel it is considering expanding into the supermarket channel. Conversely, it does not want to hurt the company brand it has created as a premium yogurt brand in the natural foods market and betray those loyal, natural foods customers who made their business what it is today.
In the case, Natureview is considering three options to expand its operations to reach its $20 million
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There were also fears that Natureview’s marketing department was unprepared to handle the demands on resources and staffing that entering the supermarket channel would impose. Supermarket distributors were more demanding in logistics and technology than what Natureview was familiar with. However, it is thought that soon, natural foods channel would embark on similar demands.
After reviewing all the alternatives and its issues and benefits, I found that moving into supermarkets could have both positive and negative repercussions. Refraining to expand into supermarkets could put Natureview at a competitive disadvantage, considering there are rumors of Natureview’s competitors expanding into supermarket channels.
Supermarkets are potentially a huge market for organic yogurt, considering 97% of all yogurts were purchased through this channel and 46% of organic food consumers shop at supermarkets. Two natural food companies have already entered supermarkets and in doing so have increased their revenues by over 200%. Executing a first mover strategy would be crucial if this plan were to be implemented in order to gain brand equity from new consumers who are transitioning into the organic food market. Furthermore, because price inhibits 58% of consumers from buying organic products, Natureview would have to execute a

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