Problem overview
Natureview Farm Inc. is a small yogurt manufacturer, which founded in 1989 at Cabot. In
1999, it had a revenue of 13 million, and Venture Capital (VC) wanted to cash out.
Therefore, Natureview Farm wanted to increase its revenue to 20 million by 2001, which
was a 54 percents increase in revenue.
The total market size of sales of all the products in supermarket for 1999 was $6.5 billion,
and there were four main competitors in supermarket channel: Dannon 33 percents, Yoplait
24 percents, other 23 percents and private label 15 percents. In Natural Food Channel,
Natureview Farm holds a market share of 24 percents. The yogurt sales in supermarkets
have grown 3 percent a year, and 20 percents in Natural Foods Channel.
Natureview has succeeded in the natural foods channel
Natural Foods Channel is growing strongly with an increase of 20 percents a year.
Natureview has succeeded in the natural foods channel with a market share of 24 percents.
There are several reasons that help Natureview. First, Natureview has a reputation for high
quality since there is no artificial thickener in the products and it has better quality milk.
Second, Natureview has succeeded through the use of distributors who sell its product to
natural food retailers. These distributors have been acting as the middle men, and have a
direct relationship with the retailers. This distributing system helps Natural Foods Channel
increase sale of 8oz and 32 oz yogurt product. More importantly, the natural food channel
was successful because of its success in reaching the target market. Health conscious
