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Natureview Farms Case Summary

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Natureview Farms should pursue option three out of the options that the senior management team had proposed to grow Natureview’s revenues to $20 million by the end of 2001. Option three suggests that the company should introduce two SKUs of a children’s multi-pack into the natural foods channel. By choosing option three, the company would not put the relationships with the leading natural foods channel retailers in to jeopardy. If the company were to expand into the supermarket channel they could put these relationships at risk. According to the Natureview employees, “the company would be projected to have a yearly revenue that is 10% of the natural foods channel category dollar sales for the two multi-pack SKUs” (p.8). The organic yogurt …show more content…

According to Natureview’s employees, “Natureview’s all-natural ingredients would deliver the most ideal positioning from which to launch their own children’s multi-pack product, which would offer into their core sales channel” (p.8). According to exhibit 5, Natureview accounts for 24% of the yogurt sales in natural foods channels. Natureview is the leading product in sales for natural foods channels and if they were to expand to supermarkets, then the product would account for less than 5% of the sales initially. If Natureview were to expand to supermarket channels, then they would have to mark down their prices of yogurt to 15% lower than what they sell at the natural foods channels. There is a potential risk of long-term partners of Natureview and current customers may have a bad reaction to the Natureview expanding in supermarkets and marking down their yogurt prices. There would be the possibility of Natureview’s current natural foods channels dropping the brand and replacing it with competitor’s line due to the brand expanding to supermarkets and selling at lower prices. There is also a possibility that Natureview wouldn’t survive in the supermarket channel against competitors. Some of Natureview’s employees feel that Natureview’s brokers do not possess the resources or skills to adequately sell their products in

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