Healthview

Marketing Case Analysis

Presentation
 Project Members

NIKITA GULGULE RAMAPRIYAN

PARIKSHIT GARG RAGHAV BHATIA

PRANAV J PUJA SHANKAR

 Ansoff Matrix

RISK

EXISTING PRODUCT NEW PRODUCT

MARKET PENETRATION PRODUCT DEVELOPMENT

› Introducing 2 children’s multipacks in existing Natural › Fruit on the bottom
EXISTING
MARKET

Food Stores
› Multipacks and Tubes

RISK

MARKET DEVELOPMENT DIVERSIFICATION

NEW MARKET

› Introducing product in new distribution channels- › Introducing more of 32 oz packs.

Supermarkets › 8 flavours
› Introducing product in new geographical locations
nationwide
 4 P’s of Marketing

PRODUCT PRICING PROMOTION PLACE

 8 oz cups  Depends upon the  Already existing well  Natural Food Stores
 32 oz cups distribution channel to do, educated  Supermarkets
 Slotting Fee costumer base  including warehouse clubs
 Children’s Multipacks  One time allotment  Regular Trade  convenience stores
fee promotions in  drug stores
 Tubes
 Transport supermarkets  mass merchandisers
 Fruit on the bottom  Commission to  weekly sales circular  Vermont Nationwide
brokers
 8 flavours
 Promotions
 Multipacks and Tubes

 50 days SL

 Organic
 SWOT Analysis
Option 1

POSITIVE NEGATIVE

STRENGTH WEAKNESS
› Healthview’s brokers could take advantage of their › Healthview’s sales, general, and administrative
INTERNAL

relationships with the top 11 supermarket retail chains expenses (SG&A) would increase by $320,000
in the Northeast and the top 9 chains in the West annually to support 8 oz cup size .

› Healthview was uniquely positioned to capitalize on › It would also require quarterly trade promotions and
the growing trend in natural and organic foods in a meaningful marketing budget which wasn’t a
supermarkets. regular feature

OPPORTUNITY THREAT
› that some industry experts were predicting unit › The ripple effect of this decision could shake
EXTERNAL

volume growth of organic yogurt at supermarkets of Healthview to its core, changing allocation of
20% per year from 2001 to 2006. marketing budgets to brand strategy

› Research showed that supermarket consumers in the › Long-term partners’ unpredictable reactions to
northeastern and western regions were more likely to seeing Healthview’s yogurt at the supermarket and
purchase organic and natural foods than consumers customers could move to other products dismissing
in other regions. Healthview as one of the usual brands.
 SWOT Analysis
Option 2

POSITIVE NEGATIVE

STRENGTH WEAKNESS
› 32-oz. cups currently generated an above-average › Sales team’s perceived inability to achieve full
INTERNAL

gross profit margin for Healthview (43.6% vs. 36.0% national distribution in just 12 months.
for the 8-oz. line) & marketing expenses would be
significantly lower as well representing $120,000 per › Additions to sales headcount for the 32-oz.
region per year. expansion option would increase SG&A by $160,000.

› Healthview’s brand had achieved a 45% share of this

size segment in the natural foods channel.

OPPORTUNITY THREAT
› It was realistic to assume that the company could › Dannon was rumored to be launching a line called
EXTERNAL

sell approximately 5.5 million incremental units in the Bright Vista, an organic yogurt that would compete
first year. directly with Healthview.

› There were fewer competitive offerings in this size, › Supermarkets themselves were also considering
and Healthview Farm had a strong competitive launching their own private-label versions of organic
advantage because of the product’s longer shelf life. yogurt.
 SWOT Analysis
Option 3

POSITIVE NEGATIVE

STRENGTH WEAKNESS
› The company already had strong relationships with the › Healthview did not have the necessary resources or skill-set to
INTERNAL

leading natural foods channel . sell effectively to and through supermarkets adding to the
inability to handle distribution to supermarket distributors
› Healthview Farm’s all-natural ingredients would provide
the perfect positioning from which to launch its own › Distributors asked to show a real marketing plan if they want
children’s multi-pack product offering into their core sales them to distribute their brand. Trade promotion spending &
channel. The sales team was confident that they could clever public relations stunts alone wouldn’t cut it.
achieve distribution for the two SKUs.

OPPORTUNITY THREAT
› Attractive Financial position . Estimated potential › Supermarket Distributors were more demanding from a
EXTERNAL

incremental unit volume at 1.8 million. Gross logistical and technological standpoint compared with
profitability of the line would be 37.6%. distribution partners Healthview was familiar with from
the natural foods channel.
› The five-year projected unit growth CAGR of yogurt in
the natural foods channel was projected to be 15%, › Supermarkets’ emphasis on sales , promotion and price
according to industry market research. was inconsistent with the premium brand positioning
that Walker and Riley had worked hard to establish.
 Recommendation
Option 2
Reaches revenue target Supermarkets have higher Shelf life advantage for the
market share of 97% 32 oz. container

Being a niche segment, sales Higher gross profit margin Does not compete directly with
will not take a direct dip. the new products to be launched
by behemoth Dannon
 Recommendation
Option 2
Will not suffer from the Lower expenses Significantly lower recurring
preferential treatment given by expenses
supermarkets to their
prospective product

Fewer middlemen in Safer option in case of It is a lesser threat to the

supermarket supply chain failure competitors compared to
the 8oz product
Thank You