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Parthenon
Kumar Shringar
Manish Raj
Mayank Khandelwal
Nand Bhushan
Surbhit Sharma
Vinamra Nanavati
COMPANY OVERVIEW
Founded in 1989 in Cabot, Vermont.
Manufacturer & marketer of natural Yogurt(refrigerated).
Longer shelf life and high quality product.
National distribution in Natural Foods Channel
Strong relationship with distributors.
YOGHURT INDUSTRY MARKET SHARE BY BRAND
(1999)
Natureview Farm
Dannon
5%
Brown Cow
15% Yoplait 24%
33% 35% Horizon Organic
Others
23% 15%
Columbo Others
7%
24% 19%
YOGHURT INDUSTRY MARKET SHARE BY BRAND
(1999)
Market Share & Growth
(Packaging Segment)
OTHER
32-OZ. CUPS
Dollar Share
CHILDREN'S MULTIPACKS
Pros:
8 oz. cups represent largest dollar & unit share in market
Can take a first mover advantage in super markets.
Smaller Channel Length compared to Natural Foods Channel
Cons:
High competition.
Increased advertising & SGA costs.
Almost no experience in dealing with super markets.
OPTION 1 8-oz. Supermkt channel analysis
Channel Margin Cost price Selling price
Natureview 33% $0.31 $0.46
Distt 15% 0.46 $0.54
Retailor 27% 0.54 $0.74
2000 2001
Unit sales 35000000 42000000
Revenue $16,100,000.00 $19,320,000.00
Cost $10,850,000.00 $13,020,000.00
Gross profit $5,250,000.00 $6,300,000.00
Expenses
Advtt 2400000 2400000
SGA 320000 640000
Slot fee 1200000 Only in 1st year
Broker fee $644,000.00 $772,800.00
Net profit $686,000.00 $2,487,200.00
OPTION 2
Pros:
32-oz. cups generate high profit margin (43.6% vs 36% for 8-oz.
product)
Fewer competitors.
Lower advertisements/promotional expenses.
Cons:
High slotting fee(national coverage)
National distribution may pose a challenge within 12 months.
Option 2 32-oz.(4 SKUs) Supermkt channel analysis
Channel Margin Cost price Selling price
Natureview 41% $0.99 $1.67
Distt 15% $1.67 $1.97
Retailor 27% $1.97 $2.70
2000 2001
Unit sales 5500000 5500000
Revenue $9,185,000.00 $9,185,000.00
Cost $5,445,000.00 $5,445,000.00
Gross profit $3,740,000.00 $3,740,000.00
Expenses
Advtt $480,000 480000
SGA $160,000 320000
Slot fee $2,560,000
Broker fee $367,400.00 $367,400.00
Net profit $172,600.00 $2,572,600.00
OPTION 3 (IN NATURAL FOODS CHANNEL)
Pros:
Good relationship with NFC retailers & distributors.
High margins.
Low marketing expenses.
Cons:
Difficult to reach to goal of $20 Mn revenue through this
approach.
Competitors would already enter supermarkets.
Supermkt channel
Option 3 2 Children's multipack analysis
2000 2001
Unit sales 1800000 2070000
Revenue $3,312,000.00 $3,808,800.00
Cost $2,070,000.00 $2,380,500.00
Gross profit $1,242,000.00 $1,428,300.00
Expenses
Marketing $250,000 $250,000