Team
Nancy's
Business:
Springfield Creamery
29440
Airport Rd.
Eugene,
OR
97402
Interview
was conducted with Sheryl Kesey Thompson
Co-Owner,
VP of Marketing
Springfield
Creamery
Team Norm
Letter
There
were four participating members of Team Nancy's. We initially had five members,
but one member, Christina Samuels, did not participate. Each member
participated by contributing questions for our interview with Sheryl Kesey
Thompson pertaining to their part of the book. We used these questions to
strengthen our analysis. Below are the sections that each person was
responsible.
TEXTBOOK SECTIONS WITH MEMBERS RESPONSIBLE
History: Sarah
Part 1—Business in a Changing World: Sarah
Part 2—Starting and Growing a Business: Amy
Part 3—Managing for Quality and Competitiveness: Elena
Part 4—Creating the Human Resource Advantage: Blythe
Part 5—Marketing: Developing Relationships: Sarah
Part 6—Financing the Enterprise: Elena
Conclusion: Blythe
History
Chuck
and Sue Kesey started Springfield Creamery in the 1960’s in Springfield, Oregon.
They had both previously graduated from OSU with business and dairy degrees,
and Chuck wanted to follow in the family footsteps of being a dairy producer. At
the inception of the creamery they originally supplied milk to area creameries
and schools. In 1970, Nancy Hamren, a friend of Chucks brother Ken, (author of
“One Flew Over the Cookoo's nest”) arrived in the area to take care of Ken
Kesey’s farm. She, along with Chuck and Sue, began experimenting with adding acidophilus
cultures to yogurt. Apparently, Nancy had the most desirable results. When
clients called to order more of the tasty yogurt they often referred to it as
Nancy’s. The name stuck. It was exactly what the company needed to launch
itself into the natural food hall of fame. Nancy’s was now on the road to what
they are today. The creamery was the first in the nation to sell yogurt with
acidophilus cultures.
Springfield
Creamery was not without problems. During the summer of 1974 they were in
serious financial duress. To raise funds to keep the creamery open they threw
an impromptu benefit concert, put on by friends of Ken Kesey, the Grateful
Dead. The concert tickets were printed on Nancy’s Yogurt labels. 20,000 people attended
what turned into a giant psychedelic LSD experiment dubbed the “field trip” by
the Kesey band of Merry Pranksters. It put Nancy’s on the map in the subculture
world of the northwest.
Since then they have grown as a
company and added 100 products to their Nancy's line. They make sour cream, soy
yogurt, cottage cheese, and many more healthy foods. The company prides itself
on quality. Chuck still personally comes to taste each batch of yogurt made.
The company is a family owned and operated business and plans to stay that way.
Many of their employees have been there for up to 30 years, and some are second
generation employees. With this strong business model, Springfield Creamery has
a bright future in the world of dairy.
Part 1
America
prides itself on its freedoms. And while people don't always believe that a
capitalist society is best, there are some benefits. One of those is the
ability to be an entrepreneur. If a person has the right resources, plan, and
motivation, they are free to start a business providing a service or goods.
That's just what Chuck Kesey did when he opened Springfield Creamery in 1960.
Like all companies startup was difficult and expensive. The company has had its
ups and downs, but 52 years later Springfield Creamery is still going strong
providing employment to over 50 people and offering an exceptional product.
One
of their most popular products to date is the famous Nancy's Yogurt, which was
introduced in the early 1970's. To date, the creamery sells its products all
over the United States and Canada, as well as some limited distribution in Hong
Kong. The Springfield and Eugene area has many local businesses that pride
themselves on being local and sustainable like the Creamery, but few have world
wide distribution. Nationwide, they have a lot of competition. However, Nancy's
Yogurt has an edge. The style of yogurt Nancy's produces makes them stand out
from the usual brands like Yoplait or Dannon. Springfield Creamery doesn't use
pectin or cornstarch, they only use real fruit, and they have a healthy dose of
probiotics. Other products produced by the creamery are cream cheese, sour
cream, cottage cheese, and kefir. The organic dairy movement has done nothing
but grow over the past 30 years and the Creamery has done well by producing
natural, delicious products.
Springfield
Creamery prides itself on its integrity and maintaining positive relationships
with its vendors and customers. It maintains safety in its facilities through a
safety committee and provides excellent benefits and pay to its 50+ employees.
They are partially solar powered, and are looking at ways to become even more
green and implement energy conservation into the business and production model.
The plastic containers the products go in are BPA free and can be reused. These
even have a name, “Nancyswear” and can be used for anything from food to
storage containers.
Many
businesses participate in programs to become more socially responsible and try
to achieve a higher level of sustainability. The Creamery strives to be
involved in the community, and give it's support to the environment as well.
With the addition of solar panels and its re-usable containers, the company is
trying to create as little waste as possible. For a company the size of
Springfield Creamery, being sustainable can be a challenge; but they realize
that sustainability is something important globally, and they implement it as
much as they can.
Springfield
Creamery is a growing company. In an expanding market, one has to be prepared
for the rate of sales growth and the challenges that could bring. The two
biggest issues I can see that they will (continue) to face in the future are
capital and sustainability. They want to expand their target market they will
have additional needs. They just build a warehouse and cooler facility four
months ago to adjust to the increase in demand. However, if they grow at too
quickly of a rate, then there is a chance they may need to take sell stock to
keep up with the new demand. If the creamery grows at a steady rate, staying
family owned will be a great option. Having no board of investors to answer to makes
product development and other business decisions quicker, simpler and more
streamline.
The second issue for Springfield Creamery is
that of sustainability. Right now they do a great job of working with the local
community and trying to lessen their carbon footprint. Trying to do this on a
larger scale may prove to be difficult. Educating the public about additional
reuse ideas with their containers could be an interesting idea, as well as
having a recycling program for used containers in the Eugene are. It is a worthwhile
endeavor of course, but I do hope they find a way to cope with the challenges
of this in a way that will inspire other businesses to do the same.
Part 2
In 1950 Sue and
Chuck Kesey met while attending Oregon State University. In 1960 Chuck and Sue saw
an opportunity for Chuck to pursue his dream of following in the family
footsteps of being a dairy farmer, albeit with a twist. They bought a 10 acre
facility in Eugene Oregon. They started their creamery business on that
property and have been running it since. They had no funds when starting the
business so the initially startup came from borrowing money from their parents.
The Creamery is a solely family owned and operated business and employees
around 50+ people. It is run by 2nd and 3rd generation family members, who
include sons, daughters, husbands, and wives.
Chuck Kesey started the business from
scratch and planted all the evergreen trees on the facility over 25 years ago. In
1969 Nancy Van Brasch Hamren applied for a bookkeeper job at the creamery and
also shared her grandmother’s yogurt recipes. In the 1970 Nancy’s was the first
yogurt to contain live probiotics. They have been aware of and have heeded the
market demands, and since then they have expanded their line of products. Today
they have over 100 different organic dairy and soy products. They buy their fruit
from local farmers as well as growing some of their own organic fruit. Nancy’s
is well known all over the states, and it sells its products in all 50 states
and Canada. In 2008 Nancy’s creamery went green, incorporating energy
conservation techniques, and became more socially responsible. In 2010 they
celebrated 50 years of business. Springfield Creamery does not have a plan to
expand but they do hope to reach a wide array of demographics through
marketing.
Part 3
The
Springfield Creamery was established by a partnership consisting of a married
couple in 1960. They employ a general manager, a VP of operations, a VP of
marketing and a VP of product development.
The company keeps a positive relationship with its 50+ employees, 20% of
which have been employed with Springfield Creamery for over 25 years. Most
impressive is their benefits package, which involves covering 100% of employee
medical, dental, and vision needs as well as their immediate family.
This
team, which evolved from an organized and positive working environment, has
been able to efficiently focus on a broad spectrum of priorities. The
Springfield Creamery personally delivers its local products, keeping a positive
interactive relationship with its customers.
Springfield
Creamery has open lines of communication between all levels of employees and
the owners, which fosters teamwork and a sense of community. The high standard
of quality and the demands of the market necessitate communication
unilaterally.
The
commitment to healthy foods is an impressive attribute to the company. They
keep it healthy, offer vegan products as well as organic products, and have not
succumbed to the pressure to produce sweeter products that competitors face.
They do not add the 30g of sugar that many of their competitors have added to
conform to a standard they don’t want to follow. Nancy’s is keeping their
product at a real food standard. These ideals are a part of the daily routine
for employees, which promote healthy workers.
The
Springfield Creamery is a strong small business. While they ship their products
nationwide, to Canada, and to Hong Kong, they could be doing much more by expanding
their team. The business is
capable of franchising out and expanding their product. Being as socially
responsible as they are expansion would be an opportunity to educate other
businesses about viable environmentally friendly practices and promote socially
conscious ideals. They have the power to help re-define social norms concerning
business practice by setting high standards. Expansion would further that goal.
Part 4
People are an integral part of any
business. They are often viewed as a company’s
most valuable resource. Employees are expensive to train
due to the initial decreased productivity, and a high turnover rate in a
company indicates low employee morale and satisfaction. Businesses’ can use a
variety of ways to attract and keep qualified employees. These may include a
competitive wage, benefit package, and stock options. Employee motivation is a huge
component in an employee’s success and work ethic.
Studies have shown that when an
employees pay is directly linked to work
performance
then output and productivity increases. Money is not the only
motivating
factor. Extrinsic rewards like money are important, of course, but for
long-term
employee retention a job also needs to be intrinsically rewarding. Other
extrinsic
rewards are praise and recognition. Intrinsic rewards are personally
satisfying,
and can cause a raise in self-esteem and enjoyment of the workplace.
There are many theories of employee
motivation. Psychologist Abraham Maslow
proposed
that people have five basic needs that have to be satisfied in hierarchal
order.
These needs are physiological, security, social, esteem and self-actualization.
Another psychologist, Fredrick Herzberg
had a different theory on motivation.
His
theory proposed that employee needs can be broken into two categories. These
are
hygiene factors and motivational factors. Hygiene factors relate to the work
environment;
these include a living wage, safe and comfortable work conditions,
fair
and equitable policies and job security. Motivational factors include intrinsic
rewards
for the work itself, achievements, recognition, delineation of responsibility,
involvement
in decision making, and advancement within the company.
Douglas McGregor proposed two theories similar
to Maslow’s personal need
theory
for management principles. It is called theory X and Y. These are essentially
opposing
theories with the premise of X being that people are lazy and must be
cajoled
into working. Y theory states that work is as natural as play, and that people
enjoy
working and just need direction. Personally I think they are both extreme
and
neither is wholly correct. Theory Z, which has since then been proposed,
is
a middle road between the two. It is a modified blend of X and Y and seems to
be like an
ideal
management style to me. This is the management style employed by Springfield
Creamery.
Theory
Z is a management style that promotes employee participation. It is modeled
after the
Japan’s
business model.
Businesses have to occasionally
discipline employees, but Springfield Creamery
reported
that they have not had any substantial issue in the area. This could be
due
to their policy of predominantly hiring people known to management, or other
employees.
This seems to foster a feeling of family and community within the
company.
All of the hiring is handled by the owners and uses principles similar to
Maslow’s.
Springfield Creamery offers a very competitive wage, generous benefit
package
and screens applicants to figure out if they will be a good fit socially in the
company.
Springfield creamery does not employ
job rotation or job enlargement principles.
This
means that the jobs are specialized. They have a traditional work schedule
and
are flexible with scheduling and work to accommodate employee’s needs.
Springfield
Creamery recruits both internally and externally, through networking
with
business contacts and present employees, as well as accepting resumes.
During the process of selecting new
employees a variety of criteria are evaluated.
These
criteria are dependent upon the vacancy being filled. Some of the criteria they
consider
are work ethic, experience, references, and perceived social compatibility with
the
company
and present employees. References are checked and scrutinized during the
application
and
interview process.
Springfield Creamery currently employs over
fifty people. Twenty percent of these
have
been at the company for over twenty-five years. This is a great example of
employee
satisfaction and retention.
They do not have a specific assessment procedure
that they shared with us.
They
also did not reply to the question inquiring about a diversity requirement,
which
I think could be a weak point in the business. It has been demonstrated
that
through bringing in employees with different socio economic and cultural
backgrounds
companies can broaden their knowledge pool and it can also be
beneficial
economically.
Part 5
Marketing
and advertising is a necessary component of business. No matter how high of
quality and desirable your product is if potential customers don’t know about
you product won’t sell and your business will fail. Every business has to advertise
in some form or another.
The Springfield Creamery has been around for a
long time and no doubt has had to work hard to get their name out there. The
technology boom that has occurred since the creamery first opened has changed
the way that they advertise and market to consumers. They use a total marking
strategy so that they can reach people of all ages and backgrounds, although
their largest demographic is females that are thirty five to sixty years old.
The most popular product they sell is Nancy's honey yogurt, and it was one of
the products that really helped launch them into the successful business they
are now.
Springfield
Creamery does promotion on many levels. They do demos at grocery stores all
over the country, and also present their products at natural food trade shows to
retailers and other distributors. Through the retailers and distributors they
have coupons available which are applicable to certain products, and they have
advertising promotion discounts. Their website is also a great marketing tool
that offers a history of their company, information, and coupons that can be
mailed in as little as a few days.
The
internet boom of the 90's has greatly affected the way that the creamery
markets and reaches its customer base. Through various social network sites
like Facebook and Twitter, the Nancy's brand can personally share information
and ideas with their customers in real time. On their twitter page they have
recipes ranging from smoothies to be made with Nancy's yogurt, to sauces that
can be used for savory dishes. They even announced their newest product,
Nancy's Greek Yogurt, on their twitter page. They announced when it was
released, posted photos of it and promoted vendors supplying it.
The
Creamery uses technology to connect and communicate with its client and customer
base. While I was doing my research I was very impressed with the amount of
information I was able to access. Between their website, Facebook, and Twitter
they have a substantial amount of information available to the savvy consumer.
They also partner with local businesses like Vanilla Jill's, a local frozen
yogurt company, which uses Nancy's Kefir to make its delicious wholesome
products. If the Springfield Creamery continues to change with the times and
use all of the new marketing tools that are constantly being introduced they
should continue to grow and maintain loyal customers. In this economic climate it's
all about adapting to change, and the Springfield Creamery does an excellent
job of keeping up. This should ensure a promising future for the growing
company.
Part 6
The
Springfield Creamery with financed initially from a personal loan from Chuck
Kesey’s parents. Springfield Creamery has never taken money from investors. In
1972 when there were some financial difficulties, a friendship between Chuck
Kesey’s brother Ken Kesey and a popular band of the times, the Grateful Dead,
resulted in a benefit concert that brought in over $12,000.00 to save the
creamery. This a socially progressive concept; Springfield Creamery has taken
this concept and built a successful business that keeps its roots at home and
all its far reaching branches on the same tree.
Currently
the owners make all of the marketing and financial decisions. Perhaps the one
controversial concern regarding growth is capital. Investors could bring additional
options to Springfield Creamery, supporting expansion and possible franchise
opportunities. Currently Springfield Creamery has no plans to explore this
avenue of growth.
The
Springfield Creamery is taking significant steps to be green; saving not only
money but also natural resources. This choice not only helps the company financially,
but also socially by catering to shared community values with its desired
consumer base.
The Eugene-Springfield Oregon area
is the home base of Springfield Creamery. This is a premium location for a
business that incorporates the values of consumers who value health, supporting
local businesses’, going green and personal relationships vs big corporations.
Conclusion
Springfield Creamery is an integral part of the
small business community in Eugene Oregon. They have been in business for over
fifty years and have ties to the strong progressive culture in Eugene. They
provide a necessary service through employing over fifty people, and they are
socially responsible in numerous ways. They offer comprehensive healthcare
packages to their employees and the employees families. They offer profit
sharing opportunities through stock options, which is an additional incentive
for productivity. They combine family values and a family owner partnership
model with progressive management styles, which promote multilineal
communication. They have been consistently expanding since their inception in
1960 but have been focused on product and sustainability, instead of greed and
the all might dollar, and they appear to have the staying power to be
successful. I think many businesses would be at an advantage if they modeled
their business after Springfield Creamery.
Springfield Creamery has been flexible enough to
expand with the incorporation of additional advertising and communication
modes. They use social media as an advertising resource, as well as
incorporating the more traditional forms of advertising.
Works Cited
Camozzi, Rosemary.
“Nancy's yogurt, organic oregon dairy hits it big.” The Seattle Times. The
Register Guard, 2003.Web. 27 Oct. 2012.
Springfield Creamery
Website. Nancy's Cultured Dairy and Soy. Web. 25 Oct. 2012.
Vong, Ivar.
“Fortuitous timing kick-starts growth of Nancy's Yogurt.” The Daily Emerald.
17 Oct. 2012. Web. 5 Nov. 2012.
Nancy's Yogurt
Twitter. Twitter.com 24 Oct. 2012. Web. 5 Nov. 2012.
Christie, Tim.
“Couple open frozen yogurt shop at Coburg Station.” The Register Guard. 30
April 2010. Web. 6 Nov. 2012.
