1. How has Natureview succeeded in the natural foods channel?
Nature View has succeeded in the natural foods channel through the use of brokers who sell its product (yogurt) to natural foods retailers. Their brokers have the direct relationship with the retailers, meaning: the retailers purchase the Natureview yogurt from the brokers and not directly from Natureview itself. Using this broker distribution channel system Natureview has succeeded …show more content…
3b. If the venture capitalists extended their deadline for meeting the $20 million revenue target by 12 to 18 months, would that change your recommended action plan?
The supermarket options would have to be chosen to raise the $20M with the extra time given. With distribution through supermarkets they wwold be able to realize their target by 2001. The larger customer base of the supermarkets provides a strategic advantage that the health foolds market doesn’t. The inherent risk of this option is that the profitability of Natureview will diminish and jeopardize the premium price it currently enjoys in the natural food segment.
4. What are the strategic advantages and risks of each option? What channel management and conflict issues are involved?
Natureview will have to deal with significant channel management issues if it pursues the supermarket options. It will thrust the company into direct competition with large national brands, forcing it to adjust its price to match the prices of those national brands. Natureview would also have to negotiate with supermarket chains and obtain favorable conditions for the retail of their products. Most significant to brand management, selling Natureview yoghurt may change the brand-value perception of the consumer by reposition the brand of Natureview in the less exclusive supermarkets. It may lose its perceived value as a high-value natural yoghurt and instead be seen more as an ordinary yogurt.