Natureview Farm is one of the world’s most popular organic yoghurt manufacturers. The company has utilized several competitive advantages that have helped the organization handle the competition pressure posed by the market rivals. Subsequently, Natureview has seized the opportunity to grow the company’s annual revenue. The other aspect that has enhanced the success of Natureview is brand positioning. The product shelf-life is more than 50 days as compared to the 30 days offered by competitive products. Besides, Natureview is considered the leading brand in the channel of natural diets with a market share of more than 24% (Fleming, 2019). Lastly, the organization has blossomed in a business which significantly focuses on personal relationships and guerrilla marketing to increase the popularity of the brand. However, the company seeks to boost its revenue by about 50%, but it is still not clear which product line should be more prioritized to help reach the target. The manager should focus on increasing brand customer base by developing a new product line or targeting a new market.
The strategy of customer product market development presents various advantages to Natureview. Ideally, the natural food segment is continuously growing, and to beat the market competition, there is a need to always remain relevant. Natureview should significantly utilize consumer product market development to create new segments in the market for the existing products. The company should also seeks to reach new customers in the newly created segments. Exploring new market segments helps Natreview increase the breadth of its customer base (Siro et al., 2008). This strategy also increases customer loyalty and helps exploit an untouched market segment. For instance, people are always seeking to expand their choices for organic foods, and for this reason, consumers are always ready to purchase new products in the market. The popularity of the brand is bound to grow if the company can continuously introduce new strategies of exploring untouched markets. Therefore, before rivals catch up with the new market developments, Natureview will have already increased its sales immensely, and subsequently, its overall revenue.
Natureview should pursue an action plan to improve its position. The company should consider working on various aspects, such as promotion, product, price, and place. Concerning promotion, the company should work with the existing channel partners to help in the development of consumer promotions to support its brand in the segment of natural foods.
Regarding product and price, the company should consider pricing its products slightly higher than competitors to help emphasize the more advanced quality. Lastly, the element of place determines the number of sales the company makes. Hence, Natureview should consider entering less exploited market segments, such as grocery stores and supermarkets, to help increase annual sales. Consumer product market development is characterized by various drawbacks. One risk is competition from market rivals. For instance, when Natureview enters the supermarket segment, other companies consider a similar move. Besides, the company risks losing a significant amount of money invested in marketing to a new segment with no guarantee of improved sales (Chang & Taylor, 2016). Various conflicts and channel management issues are involved. For instance, the company seeks to gain a competitive advantage through pricing, but also risks adversely affecting its revenue as a result. Besides, Natureview risks only delaying than avoiding the importance or necessity of improving its overall organizational abilities.
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