NatureView Flashcards
(100 cards)
1
Q
What was NatureView Farm’s revenue in 1999?
A
$13 million
2
Q
What was the gross margin percentage in 1999?
A
0.37
3
Q
What percentage of sales came from 8-oz. cups?
A
0.86
4
Q
What was the shelf life of NatureView’s yogurt?
A
50 days
5
Q
What distribution channel was NatureView historically in?
A
Natural food stores
6
Q
What was the CEO’s growth goal by the end of 2001?
A
$20 million in revenue
7
Q
What was the manufacturing cost per 8-oz. cup?
A
0.31
8
Q
What was the retail price of 8-oz. cups in natural stores?
A
0.88
9
Q
What was the retail price of 8-oz. cups in supermarkets?
A
0.74
10
Q
What product line had the highest gross margin?
A
32-oz. (43.6%)
11
Q
How many SKUs were proposed for Option 1?
A
6 SKUs
12
Q
How many SKUs were proposed for Option 2?
A
4 SKUs
13
Q
What is SG&A?
A
Selling, General & Administrative expenses
14
Q
What is a slotting fee?
A
Payment to retailers for shelf space
15
Q
What was the total slotting fee estimate for Option 1?
A
600000
16
Q
What is CAGR?
A
Compound Annual Growth Rate
17
Q
What does CLV stand for?
A
Customer Lifetime Value
18
Q
Which option had the lowest financial risk?
A
Option 3
19
Q
Which option had the highest projected unit sales?
A
Option 1 (35M units)
20
Q
What type of market expansion is supermarket entry?
A
Horizontal channel expansion
21
Q
What is the main financial trade-off of supermarket entry?
A
Lower margins vs. higher volume
22
Q
What margin did natural channels yield for NatureView?
A
~35%
23
Q
What margin did supermarket channels yield?
A
~20%
24
Q
What was Option 1’s total projected revenue?
A
$20M (approx.)
25
What strategic risk does Option 1 pose?
Brand dilution in core natural channel
26
Who was the VP of Marketing?
Christine Walker
27
What was the growth CAGR in natural food stores?
0.2
28
What was the growth CAGR in supermarkets?
0.03
29
Who was the CEO of NatureView?
Barry Landers
30
What does NatureView’s brand stand for?
Organic, premium, health-conscious yogurt
31
Which option is most disruptive to existing relationships?
Option 1
32
What was the projected sales volume for Option 2?
5.5 million units
33
What was the projected sales volume for Option 3?
1.8 million units
34
Which option requires national distribution?
Option 2
35
What marketing expense is highest among options?
Option 1 ($1.2M per region)
36
Which channel has more buyers overall?
Supermarkets
37
What region had the most yogurt retailers?
Northeast (28 retailers)
38
What consumer group drives multipack sales?
Parents/kids segment
39
What is the biggest threat from Dannon/Yoplait?
Price-based competition
40
What is customer value?
Perceived gain minus perceived pain
41
Which format has highest loyalty in natural channel?
8-oz. cups
42
What is the best reason for choosing Option 3?
Preserves brand & uses existing channels
43
What is the main benefit of the 32-oz. format?
Higher margins and family-size appeal
44
What is one limitation of the multipack option?
Smaller revenue potential
45
What is the MOST cost-efficient option?
Option 3
46
Which option is LEAST likely to disrupt natural brokers?
Option 3
47
What cost increases with volume?
COGS (Cost of Goods Sold)
48
What cost does NOT scale with volume?
Slotting fees
49
Who is most likely to resist supermarket entry?
Natural food brokers
50
Which stakeholder supports Option 1 most strongly?
SVP of Sales
51
Which stakeholder prefers Option 2?
VP of Operations
52
What kind of pricing strategy does Option 1 imply?
Penetration pricing
53
What happens if NatureView erodes brand equity?
Loss of trust and natural channel revenue
54
What is the primary decision criterion for investors?
Revenue growth to $20M by 2001
55
What is a common marketing expense across all options?
Advertising and promotion
56
What are typical broker fees?
4% of manufacturer revenue
57
How do supermarkets compare in promo expectations?
Higher than natural stores
58
What is "channel conflict"?
When one channel undermines another
59
What is most important to yogurt consumers?
Health, taste, convenience
60
Which channel offers higher price elasticity?
Supermarkets
61
Which option best leverages existing channel knowledge?
Option 3
62
Which cost is variable: SG&A or slotting?
SG&A (can scale with sales)
63
Why is brand dilution a concern?
Supermarkets carry mass-market perception
64
What is “first-mover advantage”?
Entering a channel before competitors do
65
What metric = Revenue – COGS?
Gross Profit
66
What is the marketing funnel stage after awareness?
Interest
67
What is the main loyalty driver for NatureView customers?
Brand values and perceived quality
68
What is a "habitual product"?
One bought repeatedly without deep consideration
69
Which barrier affects new format trial?
Perceived risk of switching
70
What does NatureView gain from kids' multipacks?
New segment access and share of lunch/snack use
71
What is the zero moment of truth (ZMOT)?
When the consumer first researches online
72
What is the key consumer behavior risk in Option 1?
Switching from premium to price-sensitive segments
73
What cost is unique to supermarket entry?
Slotting fees
74
What does the CEO prioritize over long-term brand building?
Hitting revenue growth targets
75
What would make Option 2 more attractive long-term?
Brand success in larger-size packaging
76
Which consumer segment has highest CLV?
Loyal natural food shoppers
77
What role does framing play in perceived value?
Shapes how consumers weigh benefits vs. cost
78
Which cognitive bias supports bundling in multipacks?
Loss aversion
79
What defines a strategic marketing decision?
Long-term brand and channel positioning
80
What defines a tactical decision?
Short-term execution and promotions
81
What does "value co-creation" involve?
Collaborators helping deliver customer value
82
Which environmental context affects yogurt growth?
Sociocultural trends toward organic health
83
Which marketing law applies to Option 1?
All competitors react
84
Why is brand loyalty critical in yogurt?
Low-involvement but high-repurchase category
85
Which strategic lens includes Customers, Competitors, Context?
5 Cs framework
86
Which segmentation type applies to multipack target?
Value-based (parents seeking health + convenience)
87
What metric helps assess trade promotion ROI?
Incremental revenue from promo spend
88
Why does NatureView need brokers in supermarkets?
To manage relationships with retail buyers
89
What increases sales but reduces margin?
Heavy discounting or promo pricing
90
Which decision is LEAST investor-aligned short term?
Option 3 (lower immediate growth)
91
What’s a key operational complexity in Option 2?
National rollout logistics
92
What is a go-to-market plan?
Strategy to launch into a new channel
93
What is NatureView’s biggest strategic dilemma?
Growth vs. brand preservation
94
Which format is LEAST price-sensitive?
8-oz. cups in natural food stores
95
What does “perception is reality” mean in marketing?
Consumers act on how they feel, not just facts
96
What format is best for economies of scale?
32-oz. cups
97
Which option requires least new infrastructure?
Option 3
98
What’s the top reason against Option 1?
Strategic misalignment with brand image
99
What metric confirms long-term success?
Repeat purchase rate
100
What would most undermine all three strategies?
Poor execution of distribution and promo plans
