A major consequence of NaturevieWs decision to enter the supermarket channel would be its influence on the existing market in the natural food stores, where the company is a leader with 24% market share. Company information Company was founded in 1989. They manufactured and marketed refrigerated cup yogurt under the Natureview Farm brand name. They built strong brand and became leader in the natural food stores (24% market share). During the past years they were developing good relationship with customers, suppliers and distribution partners.
Main product characteristics are: Family yogurt recipe developed by the company founder Natural ingredients (they are using milk from cows untreated with rGBH) Reputation for high quality and great taste Longer shelf life, 50 days First entered the market with 8-oz. and 32-oz. cup size of yogurt in two flavors – plan and vanilla and after early success added flavors to both sizes (the 8-oz flavor were developed by putting fruit puree into the button of the cup and adding plain yogurt on top).
NatureView Farm Essay Example
Decision Our calculations show that all three options will take NatureVlew Farm to the desired target, however: We gave up Option 1 . The sales of 80z yoghurt represent 86% of NatureVieWs total sales in the natural food channel. Introducing the same range in the supermarkets would create a serious horizontal channel problem. Adding to that the substantial marketing investment, lack of experience, ATL, etc. we decided that this is not the right choice. Option 2 seemed very attractive from financial point of iew. Sales ot 32 oz cups represent only 14% ot total sales, so this choice would not damage so seriously the relationship with the existing partners.
However, reaching a national distribution in Just 12 months without sufficient previous experience can lead to a serious organizational stress and does not look very realistic. We therefore made out choice in favor of Option 3. It provides Achieving of the target revenue Preservation of the strong brand Preservation of the good relationships with customers, suppliers and distribution partners (avoid channel conflict) Reduced risk Low marketing and promotional expenses More time for preparation to enter the supermarket channel. Action plan Time table Action February, w. l -2 Finalize with R&D the product and packaging characteristics for the multipack product Potential problems – solution: squeezable yoghurt has different quality properties
If finalizing these quality issues on time is difficult, we can focus on launching the 4 oz servings first- same basic recipe in a different package February, w. 3-4 Final test panels (internal, external), marketing mix preparation Potential problems – olution: If we are behind schedule or test panels are not positive, we can simply re- package good old 8 oz best sellers in 4 oz packaging; inclusions also bring easily the desired fun factor (chocolate drops, cereals, etc) March, w. 5 Meeting with the sales broker: presenting the marketing mix for the multipack product, drafting the first promotion parameters Potential problems – solution: We can approach the market for multipack from 2 points of view: healthy food or fun & learn.
First is targeted at the moms, the second – at the children. March, w. 6-8 Training of the sales people regarding the new product mix and its distribution; Meeting the key account managers of the natural food stores, setting agreements for the entrance of the new range April,lst Launching the new product. Distribution of free cases, customer tasting in the stores May, 1st When the products are available nation-wide: start guerilla advertising: internet, social networks, word of the mouth, children playgrounds, etc. Potential problems – solutions: our marketing budget is quite modest, so we will focus on powerful, yet affordable advertising web-based tools. Periodically Supporting activities