Natureview ppt done

Natureview Farm

Bhirakarn 5180372 Patdanai 5180676Taveechai 5280388Nuttanun 5280514 Thanawat 5280542

GOAL Soluti onProblem

- Increase its revenue by over 50% before the end of 2001

- Increase its 1999 revenue from $13 million to $20 million before the end of 2001.

- Has to increase at least $7 million.

GOAL Soluti onProblem

Goal defense

-Venture capital has to cash out of its investment in Natureview, therefore the company is looking for new investor and a possibility for acquisition (new financial source).

- Natureview must achieve its goal in order to attain the highest possible valuation of the company.

GOAL Soluti onProblem

“Natureview should expand their business into the supermarket channel or not”

GOAL Soluti onProblem

Current situation- 2 main channels for Natureview to sell its

productsSupermarket and Natural food stores- In the proportion of 97% to supermarket

and 3% to natural food stores. Problem Defense

GOAL Soluti onProblem

“Even though supermarket is more attractive, there are some reasons behind this and that should be considered” - Depend heavily on broker's knowledge - Broker's fees, slotting fees, promotional allowance bring high risk and high cost to Natureview.

- Conflict (Final price)

Problem Defense

GOAL Soluti onProblem

Option 3: Introducing two SKUs of a children’s multi-pack into the natural foods channel

GOAL Soluti onProblem

SolutionDefense

• Competitive advantage– Strong relationship with natural foods

retailers ex: Whole Foods and Wild Oats.– Sustainable competitive advantage– Main profit comes from natural foods

channel.

GOAL Soluti onProblem

• Power and conflict– If stays with natural foods stores, there will

be no conflict.– Option 1 and 2 could potentially create

conflict between the firm and natural foods channel.

SolutionDefense

GOAL Soluti onProblem

• Brand Image– Organic yogurt– Shoppers at natural foods stores earn more

income, more educated and not price sensitive.

– Natural foods store shoppers are more concern on health issue, not price.

– If expand to supermarket, its brand image will be doubted by current consumers.

SolutionDefense

GOAL Soluti onProblem

• Financial and Risk Analysis– No extra slotting fees and advertising expense– Option 1 and 2 creates more expense – Lowest risk and cost if choose option 3– Will not have to compete with two main

competitors in supermarket channel which are Dannon and Yoplait

SolutionDefense

Financial StatementYear 2000 Financial Forecast

Option 1

Advertising Cost is abundance, Natureview would have paid

4,800,000 on ads by year 2001

Option 2

The slotting fee is too much, Nature view would have to enter 64

supermarkets

Option 3

No SG&A, Broker Fee, and Slotting Fee

Solution Financial Forecast 2001