NATUREVIEW Farm

Natureview FarmBhirakarn 5180372 Patdanai 5180676Taveechai 5280388Nuttanun 5280514 Thanawat 5280542

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.

GOALSolutionProblemGoal defenseVenture 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.GOALSolutionProblemNatureview should expand their business into the supermarket channel or not

GOALSolutionProblemCurrent situation- 2 main channels for Natureview to sell its productsSupermarket and Natural food stores- In the proportion of 97% to supermarket and 3% to natural food stores. Problem Defense

GOALSolutionProblemEven 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

GOALSolutionProblemOption 3: Introducing two SKUs of a childrens multi-pack into the natural foods channel

GOALSolutionProblemSolutionDefense Competitive advantage Strong relationship with natural foods retailers ex: Whole Foods and Wild Oats. Sustainable competitive advantage Main profit comes from natural foods channel.

GOALSolutionProblem 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.

SolutionDefenseGOALSolutionProblem Brand Image Organic yogurtShoppers 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.

SolutionDefenseGOALSolutionProblemFinancial and Risk AnalysisNo extra slotting fees and advertising expenseOption 1 and 2 creates more expense Lowest risk and cost if choose option 3Will not have to compete with two main competitors in supermarket channel which are Dannon and Yoplait

SolutionDefense

GOALSolutionProblemFinancial StatementYear 2000 Financial Forecast

Option 1

Advertising Cost is abundance, Natureview would have paid 4,800,000 on ads by year 2001Option 2

The slotting fee is too much, Nature view would have to enter 64 supermarkets Option 3

No SG&A, Broker Fee, and Slotting Fee

Solution Financial Forecast 2001

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