Financial controller should also make use of customer perspective applied in balanced scorecard. Customer profitability analysis can be done in three steps. As per the costs involved in three options available, the option 1, seems to be the most costly of all as the advertising expenditures would be very high for a 8 oz pack.
The option is feasible as 8-oz is the best selling cup size of the company exhibit 2. In the option2, although oz.
The analysis of the three strategic options available for the company is done only on the basis of cost and the anticipated incremental unit sales. The sales team was confident that they could achieve distribution for the two SKUs.
This distributing system helps Natural Foods Channel increase sale of 8oz and 32 oz yogurt product. But, the options available also have some limitations attached to them. Natureview does not have the necessary resources or skill-set to sell effectively to and through supermarkets.
Internal process perspective- This internal process perspective deals with the complete processes that actually create and deliver the value proposition to the customer.
It deals with the human capital; information capital and the organizational capital of the company and provides foundation in the strategy development.
The company can use activity based accounting to determine how to increase customer satisfaction and the profitability of both individual customers and customer segments. These performance indicators would measure the efficiency of strategy implemented and applied by Natureview Farm Company.
Sales and marketing expenses in this channel were lower; the cost of the complimentary cases was estimated at 2. The sales and marketing expenses in the third option are comparatively lower than the first two options. This option also has many advantages but there is a big doubt weather new users would try the brand with this multi-use size.
The future prospects of the options also need to be considered. This technique assigns more indirect costs in direct costs.
Natureview farm case Although slotting expenses would be higher because national distribution would require slotting fees across a larger number of retailers, promotional expenses would be lower-the oz. Natureview would need to hire sales personnel who had experience selling to the more sophisticated supermarket channel and would need to establish relationships with supermarket brokers.
It helps an organization to establish the real cost of products and services. Second, Natureview has succeeded through the use of distributors who sell its product to natural food retailers.
Before initiating such a project, financial controller of the company should keep a good record of the customer value propositions. This technique also helps to allocate appropriate resources on productive product, section and activity.
These launch expenditures were in addition to the trade promotion expenditures the company would need to make. The company has three options in front and needs to adopt one of them to meet its revenue related goals. The strategy is developed on the basis of internal skills and capabilities.
The yogurt sales in supermarkets have grown 3 percent a year, and 20 percents in Natural Foods Channel. These distributors have been acting as the middle men, and have a direct relationship with the retailers. It provides an understanding to increase customer revenues and to decrease customer costs.
The balanced scorecard is a performance management system that keeps a check whether there is an aalignment between the large scale objectives and the smaller scale operational activities of a company that too on terms of sight and smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and scheme.
Therefore, Natureview Farm wanted to increase its revenue to 20 million bywhich was a 54 percents increase in revenue. The projected total yearly revenue for the two multipack SKUs would be approximately 10oloo f the natural foods channel category dollar sales. The three options available require different costs to be incurred on marketing and advertisement expenditures.
It supports the identification of inefficient product, section and action in the company. The first brand to enter the channel could therefore have a significant first-mover advantage and earn more than expected revenues.
Lacks potential of taking higher risks and costs as well Strengths Unique, smooth and creamy texture of yoghurt No artificial thickners used Accumulation of cash by Horizon from IPO Being dropped out of traditional channel Opportunities Higher average shelf life of 50 days Strong relationships with leading natural foods retailers High quality and great taste Analysis of Strategic Options- The company has three options in front Natureview farm case needs to adopt one of them to meet its revenue related goals.
We will analyze the options one by one in detail using qualitative economic model. Maintaining and increasing customer profitability. In short, such strategic decisions need to analyze all the features related to the production; marketing and distribution of the products. Innovation and learning perspective- The innovation and learning perspective keeps its focus mainly on the internal skills and capabilities that are required to support internal processes of value creation.
In option 1, Eight-ounce cups represented the largest dollar and unit share of the refrigerated yogurt market, providing significant revenue potential. Dannon 33 percents, Yoplait 24 percents, other 23 percents and private label 15 percents. The company earned a position of major brand in the natural foods channel and this position helped the company to build strong and valuable relationships with leading natural foods retailers like the chains whole foods and Wild Oats.This Presentation on Natureview Farm (HBR CS ) was created by Shomik Biswas during an Internship on Marketing Management under Prof.
Free Essay: NATUREVIEW FARM, INC. CASE WRITE-UP I. Address Who You Are and Who You Are Writing To This analysis is provided by the members of the marketing.
Position Natureview for acquisition and / or find a new investor.
Our Solution With opportunities such as the one presented in the Natureview Farm case, executives and corporate leaders have a tendency to focus exclusively on the stated revenue objective. Nature view farm case study group submited1 Ibah Jungmin. Natureview Farm Study Case -1 esha singh. Natureview Farm Harvard Case Analysis Shreyans Hinger.
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Nature view Farm Case Analysis Introduction: Natureview Farm is a well-known yogurt brand in the natural96%(47).Download