A. Defining the ProblemNatureview Farm, Inc. (Natureview), a small yogurt company founded in 1989, produces and markets yogurt using natural ingredients and a distinct manufacturing method that results in a smooth, creamy texture without adding artificial thickeners. Because of this emphasis on natural ingredients, the brand has built a reputation for high-quality, great-tasting yogurt and is the leading refrigerated yogurt health food brand. Natureview yogurts – available in twelve flavors in 8-ounce pots, four flavors in 32-ounce pots and multi-pack yogurt products – are distributed nationally and the company shares leadership in retail chains. natural foods. In 1999, the company's revenues increased from $100,000 to $13 million; However, despite Natureview's success and well-established brand, the company has long struggled to maintain a stable level of profitability. In 1996, Jim Wagner was hired as CFO and managed to achieve stable profitability for the company. A year later, in 1997, in an attempt to find its strategic investments, Natureview arranged an equity injection from a venture capital firm; However, the venture capitalist must now withdraw its investment in Natureview and management will therefore need to find another investor or position itself for an acquisition. In order to achieve the maximum potential valuation, the company must make strategic marketing choices with the goal of increasing its revenues to $20 million before the end of 2001. And to achieve this lofty goal, Natureview can potentially entering a new market and moving from the natural foods channel to the supermarket channel, a move that would mean a step change from the company's current situation...... middle of paper...... order to increase revenues to $20 million before the end of 2001, Natureview should choose the third option and introduce two SKUs of a children's multipack in the natural food channel. This option carries the least financial risk and would allow the company to strengthen its already well-established position in the natural foods sector. Given that women already make up 70% of yogurt purchases, the company should market children's multi-packs to mothers as a quick, easy, delicious and nutritious option for children, as an addition to a meal or as a snack. Perhaps if the company had more time to achieve their goal, or if they chose to re-examine their position at a later date, then it would be a good idea to attempt to enter the supermarket channel; However, with only one year to increase income, it is safer to stay in the natural food circuit..