Submitted by: Submitted by gabstergab
Views: 121
Words: 1146
Pages: 5
Category: Business and Industry
Date Submitted: 12/03/2013 09:36 AM
SITUATION
ANALYSIS.
Case Overview.
Christine Walker, Vice President of Natureview Farm, a small organic yogurt manufacturer is facing the challenge to grow revenues by over 50% before the end of 2001.
The company is considering 3 different options to get to their goal. One of the major challenges is deciding weather or not they should expand to a new channel (Supermarkets) in order to meet their revenues goal.
Natureview Farm is a strong brand in the Natural foods channel, which took an unconventional route to grow.
They went from $100,000 to $13 million revenues in 10 years through the implementation of creative low cost guerrilla marketing strategy.
Key Issues.
Expand to supermarket channel – go or no go.
Will the decision of expanding affect current customer loyalty?
How will Natureview Farm’s long term partners (natural food retailers) react?
Is the company ready for such a move?
C’s.
Company.
Natureview Farm is a small yogurt manufacturer that markets and manufactures refrigerated cup yoghurt. They have sold their products so far on the Natural Food channel.
They have no expertise in selling to supermarkets.
They have used creative low cost guerrilla marketing strategy, but don’t have the expertise of working with a bigger marketing plan.
It’s a small company who had a fast grow in 10 years. But is it ready to face the new channel expansion?
Competitors.
Natureview has currently 2 major competitors at natural food supermarkets: Horizon Organic, a national brand in nat. food stores, which products have a shorter shelf life and Brown Cow a smaller brand. Natureview accounts for 24% of the yoghurt sales. However, they now that one of their competitors is considering to expand to the supermarket channel as well. The first one who enters will probably have a big advantage, besides the fact that it might be the only one the supermarkets will actually take.
When considering expanding to a new channel, the company will face...