The challenge before Natureview is to implement channel expansion by entering supermarket channels without affecting its relationship with current channel members and loyal customers. Based on the growing trends for organics foods consumption, Natureview should expand into supermarket channel with its 6 SKU’s of the 8-Oz into eastern and western supermarket regions. Natureview’s strong brand image, product quality, taste and longer shelf life will help to differentiate it from other competitors in the supermarket channel. Moreover, the data, from exhibits, indicate a strong potential to achieve the company’s revenue targets and reach unexplored market segments via supermarket chains. Entering only two supermarket chains will provide an opportunity …show more content…
By entering the supermarket channel, Natureview can leverage its brand image to expand its consumer base. According to the survey, 67% of households consider price as a barrier to purchase organic food products and 44% of the customers like to have wider selection of organic products in supermarket, lower pricing and 6 assorted flavors at supermarkets will attract these customers and help generate higher sales. The main drawbacks of this strategy, as pointed out by the exhibits, is higher costs involved in marketing and advertising. Although, its true this will help us reach to a broader customer base who shop both at supermarkets and organic foods. Consequently, this marketing strategy would help promote the brands implicitly to organic chain shoppers also. Another drawback is the possible channel conflict between supermarkets and natural food stores. Since customers at natural food stores are more educated and not price sensitive. They tend to see information about the natural ingredients used to prepare the products being sold at supermarkets. Thus, the lower prices offered at supermarket will not affect the customers buying at natural food