2. - Increase its revenue by over 50% before the end of 2001
- Increase its 1999 revenue from $13 million to $20 million
before the end of 2001.
- Has to increase at least $7 million.
3. Goal defense
-Venture capital has to cash out of its investment
in Natureview, therefore the company is looking
for new investor and a possibility for acquisition
(new financial source).
- Natureview must achieve its goal in order to
attain the highest possible valuation of the
company.
5. Current situation
- 2 main channels for Natureview to sell its
products
Supermarket and Natural food stores
- In the proportion of 97% to supermarket
and 3% to natural food stores.
Problem
Defense
6. “Even though supermarket is more attractive,
there are some reasons behind this and that
should be considered”
- Depend heavily on broker's knowledge
- Broker's fees, slotting fees, promotional
allowance bring high risk and high cost to
Natureview.
- Conflict (Final price)
Problem
Defense
7. Option 3: Introducing two SKUs of a children’s
multi-pack into the natural foods channel
8. Solution
Defense
• Competitive advantage
– Strong relationship with natural foods
retailers ex: Whole Foods and Wild Oats.
– Sustainable competitive advantage
– Main profit comes from natural foods
channel.
9. • Power and conflict
– If stays with natural foods stores, there will
be no conflict.
– Option 1 and 2 could potentially create
conflict between the firm and natural foods
channel.
Solution
Defense
10. • Brand Image
– Organic yogurt
– Shoppers at natural foods stores earn more
income, more educated and not price
sensitive.
– Natural foods store shoppers are more
concern on health issue, not price.
– If expand to supermarket, its brand image
will be doubted by current consumers.
Solution
Defense
11. • Financial and Risk Analysis
– No extra slotting fees and advertising expense
– Option 1 and 2 creates more expense
– Lowest risk and cost if choose option 3
– Will not have to compete with two main
competitors in supermarket channel which are
Dannon and Yoplait
Solution
Defense