Natureview Farms Case Analysis

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NATUREVIEW FARM, INC. CASE WRITE-UP

I. Address Who You Are and Who You Are Writing To

This analysis is provided by the members of the marketing team at Natureview Farm, Inc., on behalf of Christine Walker, Vice President of Marketing. The purpose of this analysis is to provide a recommended course of action for the company to grow their revenues by 50% by the end of the 2001 through the use of SWOT analysis on the three recommendations proposed by the senior leadership at Natureview Farms. The findings will serve as the recommendation for Christine Walker to present to the CEO, Barry Landers.

II. Business Overview

Natureview Farm, Inc., founded in 1989, is a small yogurt manufacturer based in Cabot, Vermont. The company has
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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.

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