An English-language PDF of this Brief Case in an academic course pack will allow the students with the opportunity to buy an audio form as well. The case looks into the problems associated with channel management in the food industry of the US. Nature view Farm, a Vermont-based maker of organic yogurt earns that a profit of $13 million, is the top of the line brand at a country level (with a 24% share in the market) which distributes its products to natural stores across the country. The farm has been able to reach this level of efficiency through the special yogurt production process and through developing individualized relationships with the dairy purchasers in the natural foods channels. The case was prepared in 2000 when the company was challenged with financial weight to increase revenues to $20million by the year end 2001 because of a planned by its venture capital funders. The immediate decision to be taken at this point in time by the Nature View’s VP of marketing is if this revenue target can be achieved successfully by developing the super market channel.
Yes (Solved Spreadsheet will be provided)
What is Natureview’s current position in the natural foods channel? What is their marketing strategy?
How do the three growth options under consideration compare financially to terms of yearly revenue, gross margin, required investment, and profit potential?
What are the strategic advantages and risks of each option? What channel management and conflict issues are involved?
What action should the company pursue? How can they mitigate the risks associated with the chosen strategy?