Professional Documents
Culture Documents
Neeraj Bharadwaj
Binh Tran, Jai Gulati, Geoff Fadden & Amir Kesten
Agenda
Natureview
background
The yogurt industry and Organics
Cs & Ps
The options & Dilemma
Option analysis
what Would you dO??
Recommendation
Background
Differentiators
Natural ingredients
Long shelf life
Reputation for high quality and good taste
Background
(cont.)
1989
Wagner arranged
for infusion of VC
Capital to fund
investments
1996
1997
1999 Revenue
Reached 13
MM
2000
Growth of $20M
needed by end of
year
2001
6 & 8 Oz
3%
8%
Multi Pack
32 Oz
Others
9%
9%
74%
97%
175
Small Health Foods
Stores
Women
77
Men
Yogurt Consumption in
Million
33
50
19%
22%
Supermarkets
100
150
200
* This Data is from US population of the year 1999
based on US Census
0%
Brokers
Distributors
Wholesalers
Retailers
Context
Horizon
Organic
(Cash heavy
and national
brand)
Shorter shelf
life
compared to
Natureview
Brown Cow
Natural not
Organic
(Presence in
West Coast)
Collaborators
12 Flavors in
8 Oz cups
and 4 in 32
Oz
Longer shelf
life
Not treated
with rGBH
Strong
relationships
with leading
natural food
retailers
Competitors
Natural Food
Customers
Women
(single and
with kids)
High Income
and more
educated
Live in
Northeast &
West Coast
Company
Customers
Product
Price
Place
Promotion
Size
Flavors
Natural
Organic
Supermarket
Channel
Natural Foods
Channel
Natural Food
Channel
National
Retailer
Channel
Wholesale/
Clubs i.e.
Costco, Sams
Convenience
Store
Drug Stores
Retail level
Wholesale level
Distributor level
Options &
Dilemma
Expand
Nationally
Stay in Natural
Food Chains
Introduce 6
SKUs of 8oz
products
Introduce 4
SKUs of 32oz
products
Introduce 2
SKUs of
childrens
Multipack
GoTo StrategY
8 oz cup
$.74
8 oz cup
$.88
4 oz
multipak
$2.70
4 oz
multipak
$3.19
32-oz cup
$2.85
32-oz cup
$3.35
Natureview Farm
Natureview Farm
Sales Brokers
Retailers
Retailers
Consumer
Consumer
AnalysiS
analYsis explained
$45,000,000
300%
$40,000,000
$35,000,000
250%
$30,000,000
200%
Incremental
Sales
$25,000,000
Gross Profit
$20,000,000
Total Costs
150%
$15,000,000
Profit
Contribution
$10,000,000
Total Sales
Projection
100%
$5,000,000
Required
Investment
% Increase
$0
50%
Gross Margin
$5,000,000
$10,000,000
0%
Recommendation
Go
with Option 3
Less risky
Gets us to our target
Does not cannibalize our existing customers
and partners
Gives us a boost to get into the retail space at
a later date
Revisit the retail options after we meet our
20M target and Investment is secured