Nature View Case Study

The core focus of the case for us is to wait on at alternative strategies for going to market, which be the issues raised in questions 1, 2, 4, and 5. It is some sequences useful to create models in excel to help evaluate whizzs options which I nurture referenced in 3a and thru the link include below. 1. How has Natureview succeeded in the ingrained food for thoughts communicate? Nature View has succeeded in the natural foods channel through the use of brokers who sell its product ( yoghourt) to natural foods retailers.Their brokers shoot the direct relationship with the retailers, meaning the retailers purchase the Natureview yogurt from the brokers and not nowadays from Natureview itself. Using this broker distribution channel system Natureview has succeeded in capturing 25% of the natural food market. This system has also enabled an increase in complete(a) revenue for its 8 ounce and 32 ounce products. Perhaps more importantly, the wellness food channel was successful because of its success in reaching the get market. Health conscious women were Natureviews target market and their brokers worked with retailers that had access to that demographic. more(prenominal) specifically they targeted women who earned high incomes, were education, and lived in the Northeastern or Hesperian USA 2. What are the two primary types of growth strategies under experimental condition by Natureview? The first strategy was to remain in the natural/ anicteric foods channels of distribution and make little change to their current model. The insurgent growth strategy was to enter select supermarkets for broader exposure. The first strategy twisty increasing the market share of Natureview in the natural foods market in which they were already present.They would have focused their selling efforts on the target auditory modality with greater intensity. Natureview would have to modify its product to satisfy the needs of this instalment by using price differentiation and it would have to launch advertising campaigns/promotions to support this strategy. The second strategy was to enter select supermarkets and break into the food product market segment. The motivating particularor for entering supermarkets was based in the fact that 97% of all yogurts are sold in super-markets. More importantly to Natureview, 46% of organic food eaters shop at supermarkets.If Natureview wanted a successful presence in supermarkets it would need to develop a yogurt product line specifically for supermarkets with appropriate price points, advertising and promotional plans. Additionally, they would need to negotiate terms and conditions with the supermarkets because of the different relationship without their usual brokers. 3a. How do the ternion options compare financially in terms of yearly revenue, gross marge, required investment, and profit potential? Note to help you evaluate this I have posted an excel model to HuskyCT.The three options are clear with op tions one and two being more similar than option three. initial annual revenue for option three is the only one in the positive however, five years into each option, options one and two are roughly six and four times higher than option three several(prenominal)ly. Gross margins for options one and two are relatively equal, but the margin for is half for the distributer yet greater by seven part for the retailers. The required investment for option three ($400+) pales by similitude with options one and two being nearly four and five trillion dollars respectively.This intial cost is offset by the potential profits over the life-time of the options option three yield of only $4. 8M , option two coming in at $10. 6M, and option one with a walloping $11. 0M of respective net present values. 3b. If the surmise capitalists extended their deadline for meeting the $20 jillion revenue target by 12 to 18 months, would that change your recommended do plan? The supermarket options would have to be chosen to raise the $20M with the extra time given. With distribution through supermarkets they wwold be able to realize their target by 2001.The boastfullyr customer base of the supermarkets provides a strategic advantage that the health foolds market doesnt. The inherent risk of this option is that the profitability of Natureview will pass and jeopardize the premium price it currently enjoys in the natural food segment. 4. What are the strategic advantages and risks of each option? What channel management and negate issues are involved? Natureview will have to deal with square channel management issues if it pursues the supermarket options.It will thrust the company into direct competition with large national brands, forcing it to adjust its price to match the prices of those national brands. Natureview would also have to negotiate with supermarket chains and obtain favorable conditions for the retail of their products. Most significant to brand management, selling Natureview yoghurt may change the brand-value perception of the consumer by reposition the brand of Natureview in the less exclusive supermarkets. It may pull away its perceived value as a high-value natural yoghurt and rather be seen more as an ordinary yogurt.Customers that bought Natureview from sinewy foods retailers may sooner buy Natureview from the supermarkets at lower prices, hence reducing the volume of gross revenue through healthy food retailers. If the company stays in healthy foods markets only then the company misses out on huge gross revenue volumes and profits. 5. What action plan should the company pursue? What changes in the current marketing mix, gross sales, brand, and channel partner arrangements do you recommend in order to mechanism the action plan? Natureview should choose the option to enter the supermarkets segment because of its investors demands.The venture capitalists decision to cash out, has forced Natureview to court more agreeable investors. In order to get the right class of investor, Natureview must increase its revenues to $20 million. Entering the supermarket segment suits the company best because this plan provides the highest possibility of achieving Natureviews sales revenue targets. Natureview also gets access to a larger base of yogurt consumers through this strategy. Even though the marketing and channel development cost will be high at first, this option provides the best obtainable plan for achieving their short term revenue targets.