Natureview Case

John Smith

04/17/2012

MKT 485

Natureview Farm Case Study

Problem Statement

The Natureview Farm Company is a small manufacturer of yogurt that was founded in 1989 in Cabot, Vermont. It boasts annual revenues of approximately $13 million. They hang their hat on the fact they use natural ingredients in their yogurt. They produce three different size yogurt cups. These are an 8 oz., 32oz., and a 4 oz. cup minipack. At a meeting in the beginning of the case, Natureview announced that they had a goal to increase its annual revenue to $20 million within two years. One of the ways that they are considering doing this is by considering expanding into the supermarket channel. However, the company also wishes to not offend its loyal customers who have made it the premium yogurt brand in the natural foods market.

Strategic Situation Facing Management in the Case

Natureview is a part of a yogurt industry where about 40% of Americans consume the products that are produced. 70% of all those who do consume yogurt are found to be women. The reason why the majority of the company market segment is women is due to the fact that mostly women shop for families and want a healthier lifestyle for themselves and their loved ones. There has been steady growth within the market as more and more people are consuming yogurt each year. The main market segment of Natureview is natural food stores. The typical customer who shops at a natural food store is generally an older person who is educated and earns a moderate to high income. For the multipack yogurt cups that Natureview produces there is a 12.5% growth rate, which makes it the fastest growing segment out of all the products. The fact that this is such a rapidly expanding market segment shows Natureview that they should capitalize on it quickly before one of their competitors does.

The main competitors of Natureview within the supermarket channel are Dannon, Yoplait, Breyers, and Columbo. Within this...