Natureview Case

Try to reduce overall production runs by aggregating different orders, thereby increasing batch size. Marketing strategy of delay in turnaround time is required to achieve this

building plants in all four geographic regions and producing 500 models/styles at all four plants.

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.

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.

concern for the environment may also drive consumers’ attitudes toward organic food (Kareklas, Carlson, and Muehling

1. Where should the plants be located and what degree of flexibility should be built into each? What capacity should each plant have? Should be built with the capacity to supply to regional factories. The plants should be flexible enough to produce a number of different models.

Natureview is in a situation to increase its revenues by more than 50% to make itself attractive for new investment or a probable acquisition, as the existing venture capital firm (VC) needed to cash out. The issue at hand is to decide whether to expand into supermarket channel to meet the revenue goal and at the same time retain its long-standing natural foods channel partners. Alternative financing is also extremely difficult until the VC cashed out. I recommend Natureview develop a market strategy to launch the children’s multipacks – both 6 pack of 4 Oz cups and 8 pack of 2 oz tubes – with the name Natureview Yocubz into its natural foods channel supported by marketing promotions targeting children and their mothers and to position it as

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Although organic products represent just about 2% of the total food and beverage sales in the US, the market is growing approximately 20% annually. More consumers are preferring natural, fat-free and healthy food products. Food items containing trans-fat are losing market share to low calorie, low fat, natural and organic products. Increasing customer preference for organic foods is likely to impact the company’s sales, given its leading market position in the organic grocery segment.

Thesis: Choosing to purchase and consume organic food is a smart and healthy choice for you and your family.

The U.S. has less communities where 40% of the residents have college degrees, yet the organic market profits $29.5 billion and 8 in 10 U.S families purchase organic products.

Since there are various criteria before customers make a decision to buy yogurt, 70% of yogurt buyers concern on package type/size, taste, flavor, price, freshness, and ingredients. Natureview could meet many of those criteria, but there are some consumers, accounted for 44%, need for a wider range of selection or flavors of organic foods which the firm had to take it into a consideration as well as pricing strategy otherwise Natureview would not be able to meet the goal that easily.

“‘I just feel like I’ve already built up an immunity to anything that might be in my food,’ the 26-year-old told me” (Lazarus). The health of food is considerably the thing that most people look for when shopping at a store. “What you’re paying for, presumably, is a more healthful diet. That means produce that hasn’t been drenched in pesticides, chicken and beef that hasn’t been pumped full of antibiotics, milk with even more nutritional value” (Lazarus). While people may believe that organic food is healthier, that doesn’t mean that it is. “Many people buy organic food because they think it’s healthier. But whether it is remains an open question—even after years of research and debate” (Cernansky). Skepticism when judging the health of both organic and conventional foods create a big topic of discussion. “But, in the United States, the label simply means that the food has met guidelines set out by the U.S. Department of Agriculture” (Cernansky). Many people may believe that the U.S. Department of Agriculture approving our organic food makes it healthier. On the other hand, conventional foods may not be pumped with antibiotics that make it unhealthy. When comparing organic foods and conventional foods, the drastic price is most

The Farm Bank has asked for the advice of your company. They recently installed a new MIS system which, as of yet, has not resulted in the expected increase in efficiency. The president, Mr. Swain, wants to find out why. Your supervisor recently requested an internal analysis of the onsite consultant’s work, who has already written a case summary document. You begin your assignment by reading this document.

It is believed by some that consumers purchase organic foods based with the perception that they are a healthier