Natureview Farm case analysis

NATUREVIEW FARM

A CASE STUDY

GOALS

ISSUES

ANALYSIS

SOULTIONS

GOALS Increasing Revenue by 50%

GOALSGOALS

1999 2001

$13million

$20million

This meant increasing it’s revenue from

Which meant

Looking

for a Investor

GOALS

To achieve this, the existing Venture Capital had to ……

CASH OUT

GOALS

To expand into the SUPERMARKET CHANNEL

PROBLEM

THE BIG QUESTION PROBLEM

SUPERMARKETS

NATURAL FOOD STORES

THE TWO CHANNELS TO SELL THE

PRODUCT

PROBLEM

High dependence on BROKER

Broker FEES, Slotting FEES, Promotional ALLOWANCS

RISK !

Conflict on Final Price

PROBLEM

To expand

SKUs

Of the - oz product line into supermarkets

OPTION -1

OPTION -2

To expand

SKUs

Of the - oz product line nationally

OPTION -3

To introduce SKUs

Of children’s multipack into natural foods channel

SOLUTIONOPTION 1

Advertising cost is too much.Natureview would have paid 4,800,000 by 2001 on ads.

SOLUTION

OPTION 2

Slotting fee is too much.Natureview would have had to enter 64 supermarkets for a good cost benefit ratio

SOLUTION OPTION 3

No broker fee, slotting fee or advertising fee. It is the best possible solution to attain the needed goals

This presentation was made by Nivesh Aron while working in an internship under Prof. Sameer Mathur.