By- Abhishek Singh Dhakre

ALL About ItFound in 1989

Differentiators: 1. Longer shelf life 2. High quality and great taste

Success Factors: 1. National distribution 2. Effective low cost marketing 3. Strong relationship with distributors

OBJECTIVE To attain highest possible valuation in order to secure new investors for itself

CHALLENGES Grow revenue by more than 50% in 23 months

Natureview

Supermarket- 97% of total sales

Natural food stores- 3% of total sales

Factors in purchasing are: 1. Package type 2. Flavour 3. Price 4. Organic ingredients.

Yogurt marketing

Supermarkets are moving towards attracting new customers by offering organic products.

About 67% of household consider price as a barrier to purchase organic products.

Generally customers buying organic products tend to be more educated and earn higher income.

Organic market if predicted to grow from $6.7 billion to $13.7 billion in 4 years.

Natural marketing trends

ADVANTAGES:

1. Supermarket fear losing market share to natural food competitors.

2. Supermarket may authorize only one yogurt manufacturer.

3. 8-oz cups represent largest dollar and unit share of market.

Expanding 8oz product into market

DISADVANTAGES:

1. Possible conflict between natural food stores and supermarkets.

2. Less experience in dealing with supermarket chains.

3. High level of competitive trade promotion and marketing spend.

4. Balance between shelf presence and slotting expense.

ADVANTAGES:

1. Fewer competitive offerings for this size.

2. Competitive advantage due to long shelf life.

3. 32-oz generate an above-average gross profit margin.

Expanding 32oz product into market

DISADVANTAGES:

1. Higher slotting fees due to national distribution.

2. Possible channel conflict between supermarkets and natural food stores.

3. Promotion and lower price at supermarket effects the brand.

Expanding 2oz Of children’s multipack into natural food channels

ADVANTAGES:

1. More time to prepare the company for moving into supermarkets.

2. Financially attractive.

3. Perfect positioning for new multi-pack product.

4. Natureview already has strong relationships with leading natural food channel retailers.

DISADVANTAGES:

1. Fast growth of natural food channels will lead to demands equal to those of supermarkets.

2. Miss opportunity to enter supermarkets before competitors.

Financials for 8-oz

Sales Price $0.78Retail Margin $0.21Price to Retail $0.57Distributor Margin $0.09Price to Distributor $0.48Manufacturing Cost $0.31

Gross Profit NV $0.17Gross Profit Margin 35.95%

Financials for 32-oz

Sales Price $2.83Retail Margin $0.76Price to Retail $2.07Distributor Margin $0.31Price to Distributor $1.76Manufacturing Cost $0.99

Gross Profit NV $0.77Gross Profit Margin 43.6%

Financials for 2-oz of children multipacks

Sales Price $3.35Retail Margin $1.17Price to Retail $2.18Distributor Margin $0.20Price to Distributor $1.98Manufacturing Cost $1.15

Gross Profit NV $0.69Gross Profit Margin 37.6%

Recommended Adjustments

Utilize more sophisticated technology to monitor sales trends.

Lower MSRP for natural food retailers to better compete with supermarkets.

Work with retailer, distributor and wholesaler to reduce costs and maintain margins.

THANKS FOR YOUR TIME