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Overview
There are several key issues that Natureview Farm faces within the distribution strategy of their yogurt. The company has traditionally focused on selling its yogurt in three different sizes, 4 ounce, 8 ounce, and 32 ounce servings, to natural foods retailers, which leaves Natureview Farm with a narrow, but growing target market. The company uses sales brokers to sell their yogurt to the natural foods retailers. Natureview Farm holds 25% of the market share within the natural foods industry. The president of Natureview Farm has made a goal for the company to increase revenue to $20 million by 2001. This poses the issue of truly identifying the value and benefits of their current distribution channel, while exploring other alternatives to create value to the distribution of their product while increasing total revenue.
Customer Environmental Analysis
Natureview Farm’s current customers are health conscious women who earn higher incomes, are more educated, and live with in the Northeastern or Western region of the United States. Natural foods retailers are the ones that actually purchase the yogurt from Natureview Farm and resale it to the target market. The end user is women and their families. The women of these upper middle class to upper class families purchase the product for themselves, their children, and other members of their family. They are looking for a healthy snack or meal for themselves and their family. The natural foods retailers purchase the yogurt from sales brokers that Natureview Farm uses as an intermediary. The sales brokers push several brands of products to different natural foods retailers by offering promotions, incentives, and a valued opinion to the reta ...