Vatureview Business Memo

INTEROFFICE MEMORANDUM

TO:        BARRY LANDERS, CEO OF NATUREVIEW

FROM:        ELLISON LIAO

SUBJECT:        MARKETING STRATEGIES FOR NATUREVIEW FARM

DATE:        9/28/17

MEMO

Natureview is known as producing high quality, smooth taste, creamy texture yogurts, and attracts its customers who are more educated, earn higher incomes, be older, and usually shop at nature goods stores. However, we are now facing problems to raise more funds since our venture capital just cash out their money on us. Therefore, our CFO, Jim Wagner strongly advised us to grow our revenue from $13 million which was reported in 1999 to $20 million before the end of 2001. Considering whether entering to the supermarket as one of our distributers based on the pros and cons describe on three proposals, I decide to choose option 1, which means we have to take a great risk on marching a new territory we’ve never been before – supermarkets.

First of all, we can receive a lot of benefits from expending our distributions. Let’s take other nature food brands such as Silk Soymilk and Amy’s Organic Foods for example. They had entered supermarkets, and increased their revenue over 200% within two years, which is exactly the goal we want to achieve. If we enter supermarkets before our competitors, we can also gain the first-mover advantages over others. What’s better, as the leading brand of refrigerated yogurts, we are on the growing trend in supermarkets. On the other hand, there are also a great risk that we need to face up. The expense will definitely increase in a large scale because of the additional slotting fees for eight flavors’ 8-oz. yogurts, marketing and promotion expenses, and the sales, general, and administrative expenses which total estimated at $5.68 million for the first two years if we plan to expend our distributions in the top three supermarket chains in west and northeast area. In addition, we have to take the risk of losing trust from the original nature goods stores since we offer a lower price in supermarkets.