Natureview is in the cross roads of deciding on strategic business plan for attaining incremental revenue over 50% to $20M (reported $13 million in 1999) within the close of the financial year with a confusion as to which project to promote. The strategic options with the company are either the entity should expand the supply chain into chosen supermarket channel with existing concentration of yogurt in various regions or to grow in the nature food stores channel by introduction of novel product offerings to strengthen its’ position. I recommend, the company should strategies to enter chosen supermarkets ensuring channel tapping by expanding the existing products in new geographical markets. Focusing on new customer base and brand recognition will aid incremental revenue and 8oz market which a 3 % has expected growing rate represents the largest market player of the yogurt market and presents huge revenue potential.
Initially 20 retails chain based channel expansion is envisaged with 11 in north east and 9 in western regions. The 8 Oz yogurt product offers maximum market reaping potential with an expected sale of $25.9M per annum. This would be the first competitive move over the organic yogurt manufacturers by inserting this product into the supermarket. This option is expected to be a winner by volume sold with 35 million units (Exhibit 6) projecting revenue of $25.9M (Exhibit 3). This along with Natureview current revenue of $13M, will aggregate to a $38.9M, surpassing the $20M objective. Hence this qualifies to be one of the most fruitful of the strategies owing to the demand for the product that is existing in the market and the revenue earning potential of the said product respectively. On the flip side the risks associated with this option would include investment into marketing, advertising and shelving costs.
Furthermore, enhancing the yogurt product mix with by introducing various flavors and using latest processing technology, natural ingredients the company could increase the shelf lifecycle of the product. This could be further amplified by a friendly package line optimizing packaging visibility combined with packaging aesthetics can make the product more appealing. Nature view needs to leverage the Northeast and the West geography based supermarket channel. The placement needs to be neat and with bright colors near the shelf to aligned competitors and at customer eye level accompanied by digital messaging portals. The company can offer a 50% off coupon during introductory week and price the products at least 10 – 15% lower than competitors for increased market share and lowering competition. Social media discounts could also be offered. In store demonstrations are helpful and a 25% off could help a good start. Advertisements placed in women’s health and lifestyle magazines with recipes on social media could aid market development. Influential blogger write ups and Instagram marketing could render solid support and health websites would be aiding the back links, adverts and reviews. The best time for online promotion would be just before breakfast time and lunch time. But the major drawback of the expansion may lead a strain in company resources and cash flow because of incremental operating and marketing expenses owing to expansion of new channels would be require considerable financial outlay which may lay a strain on the company.

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