Nov 14, 2020 in Analysis

Case Analysis
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CASE ANALYSIS 3

Case Analysis

 

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Case Analysis

Q1: With what challenging goal is Christine Walker being faced, and why is it important that she and Natureview successfully achieve this goal?

Christine Walker and her team face challenging issues. They have the mandate of finding a way of increasing the companys revenue by 50%. Moreover, there is a time limit of up to the end of 2001. They need to remain relevant in the market. In fact, they face a lot of competition from the other established firms such as Procter & Gamble and Coca-Cola. Consequently, their success is threatened. They also face the challenges of making a decision of diversifying supermarket channels. Therefore, they have to adequately weigh their options as there is an already established channel strategy in the organization. It is important that Christine and Natureview achieve the set goal owing to the two main reasons. Firstly, increasing their source of revenue by 50% guarantees that their capital expands far and wide, which will enhance their stability. Moreover, the wide consumer coverage increases their market image, which is relevant for the success of the firm. Besides, it will help them counter the competition that they face from big and established companies.

Q2: From Natureviews perspective, what are the main advantages and disadvantages of doing business with the supermarket channel and natural foods channel?

Supermarket Channel

The supermarket channel has some advantages. Firstly, they are able to monitor sales trends of items using the scanner technology. It enables them to establish correctly the area where there is a need to increase or decrease supply. They also maintain a streamlined distribution. Consequently, they can maintain low prices. It also enhances efficient distribution of the products to individual stores. On the other hand, supermarket has disadvantages as well. For instance, there is an initial slotting fee. It gives allocation in the chain of distribution. Secondly, it is expensive, because there is an expectation to take part in regular trade promotions. Moreover, there is uncertainty such that the product can be discontinued if it is not profitable to the supermarket.

 
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Natural Foods Channel

The Natural Food channel has some advantages. First, they allow retailers to get fewer quantities than they can manage. In other words, they do not have to buy the full case. They also deliver the products to the defined stores as agreed. In fact, there are instances where they shelve the stock. They also track their paperwork. Moreover, they do not charge the slotting fee. There are several disadvantages. Firstly, the natural food channels charge a lot of money compared to the supermarket. Secondly, it involves a chain of four parts unlike three parts that characterize other channels. At times, the brokers may not reach the entire market segment.

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Q3: From the three options that Nature views senior management team proposed to Christine, which one do you recommend and why?

I would recommend the first option. In this case, Natureview would expand six SKUs of its products. They would grow up into selected supermarkets. It is based on three key points. First, having the eight-ounce SKUs, they are potential revenue remitters. Secondly, there are other businesses that have taken the direction and prospered. The prediction related to the organic yogurt would definitely put them on the forefront. I support the option, because it is evident that supermarket as a channel of distribution performs well. In fact, it can reach a wide range of consumers. Needless to say, most potential buyers of the product go to the supermarket. Consequently, it would create efficiency. Moreover, they would rate their performance and find the means of maintaining their presence in the market. According to the market forecast, it is likely that the volume of growth of organic yoghurt will rise. As a result, the first supplier getting into the supermarket will maximize its profit. It is also apparent that the supermarket as a channel of distribution is likely to grow. Therefore, Natureview should adopt the option. I believe it can bring the expected revenue the company requires.

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