Nature View Farm Case Study

SWOT ANALYIS:
Strength:
1. Prominent Brand
2. Cost Effective
3. Natural Ingredient based
4. Longer Shelf Life
Weakness:
1. No subsidiary financing available
2. General Tendency of not taking risks
Opportunity:
1. Strong relationship with natural food retailers
Threat:
1. Accumulation of cash from IPO
There are 3 options to be chosen as a part of the business strategy:
OPTION1:
1. Expand in North East and West supermarket region.
2. Bring in the 6 SKUs of the 8 Oz size.
OPTION2:
1. Expand in Supermarket nationally.
2. Bring in the 4 SKUs of 32oz. size.

OPTION3:
1. Stay in Natural Food Channel.
2. Introduce 2 children’s multipack.

Selection of Process:
There are pros and cons of every option and we will be selecting the option with the
maximum yield. Option 2 generates higher profit margin, longer shelf life and strong
competitive advantage, and the promotion expenses are lower. There are a lot of cons
to this option too. There are a lot of doubts sales team and entering the industry.
Option 3 has a confident sales team, strong profit contribution and a very attractive
financial prowess. On the other hand it cannot achieve the target set by nature farm.
There is a lot of ambiguity aswell with this option as there are unaccounted and
unidentified factors involved. Option 1has the best increase in demand. It will be a
first mover in the yogurt market i.e organic yogurt which would result in high
increase in revenue. On the other hand there are there are high risks and costs
involved with the project. The advertising plan is very very expensive,one time slot
fee, and requires a trade promotion every quarter.I would go with option 1 as the 8-oZ
yogurt is in the highest demand. It will attract a high amount of customers being
placed in supermarkets. As stated before it would have the first movers advantage
which would help it gain alot of market traction. In the short run the risk
and the costs involved are high but in the longer run the revenues generated would be
very high, as high as 200%. Approximately $31million will be the revenue by the end
of 2001 when the target audience of 20 million people has been met. This option has
the maximum yield with a high risk factor. If the plan is executed as per projections
and given the way market is then we this option will have the highest rate of return
and maximum yield.