Natureview Farm

2497 WordsJun 12, 201010 Pages
Executive summary Natureview Farm was established in 1989 as the brand of refrigerated cup yogurt. After 10 years, it was able to increase its revenue by 129%, which is from $100,000 up to 13 million. However Natureview had difficulty in maintaining its consistent level of profitability which lead firm to financial problem. To solve this problem Natureview needed VC to fund investments. VC would grant the fund only if Natureview could accomplish the goal: growing its revenue to $20 million before the end of 2001. Still there are many barriers that the firm had to deal with before reaching the goal some of which are as the followings. Firstly, the current channel partners could not fulfill the objective with this time constraint.…show more content…
In addition, the products selling at natural food stores are sometimes too high for many households. 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. Natureview would have difficulties to manage its positioning and brand image if they decide to expand the business to supermarkets As the Natureview’s CEO emphasizes on relationship with customers, suppliers, and distribution partners, the management team has to make the right strategies choices regarding the revenue growth objective. Entering business to new distribution channel like a supermarket might form conflicts some of which are price differentiation and relationship with existing channel members: natural food retailers. Let’s discuss about price differentiation first. As the shorter distribution channel of supermarkets could be able to cut down the cost of the products to end consumers compare with natural food channel which has more channel members who mark up more

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