Natureview Farm Case Write Up

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1) How has Natureview succeeded in the natural foods channel? What are the two primary types of growth strategies under consideration by Natureview? Product attributes: Natureview, in the following referred to as NV, benefits from the strong attributes the customer connects with the product. Through the special process and ingredients the products can achieve shelf life of 50 days, which is significantly higher than the average 30day shelf life in the industry. In order compete with NV on this dimension competitors have to build multiple production plants in order to reduce shipping time. The offering of 12 different flavors covers a variety of customer taste and can therefore be considered as a substitute to the non-natural yogurts…show more content…
The selection of the Option under the 12 months scenario depends therefore on the predicted degree of Degree of Option 1 Revenue Cannibalisation in M 0% $ 29,76 10% $ 28,66 20% $ 27,56 30% $ 26,46 40% $ 25,36 50% $ 24,26 60% $ 23,16 70% $ 22,06 80% $ 20,96 90% $ 19,86 100% $ 18,76 Option 2 Revenue in M $ 23,90 $ 23,69 $ 23,49 $ 23,29 $ 23,08 $ 22,88 $ 22,68 $ 22,47 $ 22,27 $ 22,07 $ 21,86 cannibalization. Until 60% Option 1 should be selected, above 60% Option 2 is the superior alternative. If we extend the deadline from 12 to 18 months, both Options will reach the desired primary goal (total revenue of $20M) with a high certainty under the predicted growth rates. The negative effect on the NS channel, which an introduction of our products in the S channel will have as we can see in Cannibalization or synergy? Consumers„ channel selection in online-offline multichannel systems, Kolmann, Kuckertz, Kayser, University of Duisburg-Essen 2012 10 Question 4, is higher in Option 1. Option 2 gives distribution exclusivity to the NFS channel, which is the larger market. 4) What are the strategic advantages and risks of each option? What channel management and conflict issues are involved? Option 1: 67% of U.S. households see the price as the main barrier for their purchase of organic products, 58% would even buy more organic products if those were less expensive.11

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