A SWOT Analysis on Zespri International Ltd
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Published: Mon, 25 Sep 2017
New Zealand is second largest kiwi fruit producing company in the world, next to Italy. New Zealand kiwi fruit are now market under the brand name Zespri. Zespri International Ltd. is owned by 2,700 local growers through Zespri Group Ltd which was established in 2000. SWOT analysis
- Brand Strength and size.
- New Zealand and growing expertise.
- Willingness to invest.
- Product Variety.
- Relationships with growers.
- 9- month growing season
- Marketing limited to saturated markets
- High production and distribution costs
- Relatively small growth in orchards compared to completion
- Internal grower coriflicts
- Niche market opportunity.
- Marketing opportunities.
- Room for growth in existing markets.
- Greater industry collaboration.
- Technological opportunity for increased efficiency.
- Competition ,Enza or other fruit companies.
- Threat of legislation spurred by Enza.
- Number of diseases (PSA, Batteries)
- Environmental Threats
a) Operational objectives- It has tight logistical control; kiwi is only accepted after it is inspected, loaded and on a ship to its destination. Each kiwi can be traced back to a packing plant and farm it came from. There is also tight control on licensing to produce the brand. The Gold variety is very profitable for growers. The facilities built near large sales areas are essential to the effective operation of Zespri. During the growing season, Zespri closely monitors each market’s performance and re-optimizes product allocation when necessary. Zespri provides a 12 month supply of kiwis is to keep market share in this market.
b) Operational policies and procedures- 2700 orchard owners in New Zealand (4000 farmers worldwide) Zespri has built an industry of producers who are passionate, committed and customer oriented. Clean, green image of New Zealand, together with optimal soil, light, temperature, and rain conditions for growing, has given them the competitive advantage.
It was harvested after fruit must by specially trained graders, sorts the visual inspection of fruit for deficiencies, pests and diseases and will be sorted. Fruit with defects are removed at this point and the remaining fruit by size (fruit weight) sorted prior to packaging.
Most Kiwis by hand in specially packaged Zespri. The filled cartons or trays on pallets before being stacked in cool storage.
c) Target Dates- To promote its products, Zespri offers supermarket sampling and in-store promotions, including exercising corporate social responsibility such as supporting blood donation appeals.
Their advertising highlights a key point of difference – the health benefits of kiwifruit. A kiwifruit has twice the vitamin C of an orange and is high in fibre.
Advertising is based on creating an emotional connection with the customer. The business has created a single simple message: Zespri gives you pure vitality to share a wonderful life.
The government has increased costs of traditional advertising for Zespri through government regulations. These regulations have cut the company’s television advertising time.
Social networking now offers a more cost-effective advertising option. With 420 million Chinese internet users, this can help Zespri increase market share. This type of marketing is in line with the characteristics of Zespri’s target market. The one-child policy in China has also had implications for social media – social media is seen as a way to make friends, which makes it a useful marketing tool. d) Human and other resource
Human Resource- Experts in the star fruit marketing field must be acquired to determine how to license star fruit growers and gain market penetration in this field. Technical database employees should be hired to develop a new functional tracking and communication system and train Zespri employees in its use for the star fruit market. Also star fruit cultivar development experts will need to be employed to gain a challenger position in the star fruit market.
Financial Resources- License fees from licensed star fruit growers must be collected to help finance the marketing of the new product and new cultivar development of this segment of business. A start up loan from a financial institution may be needed to cover initial costs of procuring the new licensing, information, control, cultivar development, and marketing systems if retained earnings prove to be insufficient.
1)The world leader in kiwifruit in both quality and price, and work to introduce new fruits to the world market:
- Continue development of kiwifruit in order to create a better more sustainable fruit to the world on a year round basis.
- Focus on consumer demands to provide the most desired product to the end user.
- Develop new fruits to introduce to the world market. This new mission statement will serve as a guidepost for the new direction of Zespri.
2) The company policies and producers both are follow the rule every body work under the security and safe area they provide the first aid kits and another small kind safety and work thing.
3) Zespri misson are there they provide best Quality to consumers and always look on our mission :
- Brand-based consumer focus.
- Customer relationships and innovation.
- Cost-effective sourcing of superior fruit globally.
4) They got our goals with provide a best quality to market and make our brand best in the world. With best best quality product they are best company in the world.
2.1 kiwifruit is transported in a controlled atmosphere (cold chain) and the quality must be preserved along all the passages. Post-harvest operations do influence quality. And the logistics from point of origin to point of consumption might affect it. Controls of quality, pesticide residues, fruit maturity and the postharvest management in general affect fruit quality, the shelf life and export price.
This report provides an analysis and evaluation of the current situation of 74 kiwifruit growers located in the centre of Italy (Latina), and their collaborations with cooperatives and Zespri. In particular this study has the objective “To provide recommendations on opportunities for productivity improvements of the Italian Zespri kiwifruit chain by investigating how farm management practices and chain players’ related activities have positive or negative effect on growers’ performance”. On one hand, the main focus is to investigate farm managerial and technical practices adopted; on the other hand, the study then refers to chain actors’ activities and interests such as technical assistance, information exchange, diffusion of innovations, and chain management practices that might influence growers’ productivity.
The research strategy includes a preliminary desk research combined with a survey approach. Through the literature review, theories concerning farm management and chain factors were selected and converted into indicators. Then, a questionnaire based on theories previously selected was designed to collect direct information from the target population. Analysis conducted with SPSS includes calculation of the answered questionnaires with descriptive statistics indicators describing main tendencies of the population. And 11 assumed relationships were formulated and calculated by correlation analysis.
Zespri International Limited was funded in 1997 as a global marketing organisation, providing a Single Point of Entry (SPE) for the export of New Zealand grown kiwifruit (Zespri, 2012). The differentiation strategy based on promotion, new variety appeal, best kiwifruit quality and 12-months’ supply has been achievable through its complex supply chain. The global distribution network from the producing countries to the consuming ones is controlled and guaranteed with more than 250 employees worldwide. Zespri commercializes more than 30% of the worldwide exported kiwifruit in over 50 countries. This has been possible by the co-ordination of kiwifruit, capital and information flow and by the strong of relationships with growers, cooperatives and consumers.
Along with the new mission statement we have developed several objectives to help guide the company to achieve its long term goals these objectives are as follows: Improve customer service by, growing consumer knowledge of kiwifruit in order to broaden possible customer basis and use current communication channels to introduce new fruits to the world market. Improve our ability to do better than the competition by, using current marketing channels to inform consumers as to the high quality of Zespri’s kiwifruit and work with growers around the world to encourage cooperation in order to create a more sustainable global year round supply. Improve productivity by, continuing research in new cultivars in order to create more efficient and productive cultivars and develop distribution channels that are more reliable and product less carbon pollution. Improve profitability by diversifying production into areas with lower cost production. Improve employee performance and satisfaction by, developing incentive based plans in order to encourage global cooperation between managers and provide access to a global network of employee resources that allows employees to create and share new ideas and developments. Finally create innovation by encouraging all employees to supply input on ways to better the company and provide rewards to employees that develop new business models.
Organization- Zespri must maintain a solid public image in star fruits branded by Zespri. Brand equity is what makes consumers pay a premium for the Zespri brand, and the same image must been realized by consumers of Zespri branded star fruit.
Operations- Tight logistical control of fruit and market monitoring will continue to be used in star fruit markets to promote success. A 12 month supply and offshore sales support are vital to be carried over to star fruit marketing based on the success of these tactics in kiwi fruit marketing. This must also be continued and improved in kiwi marketing endeavors to gain market penetration in foreign markets.
Human resources- The past experience of the sales staff with the fruit marketing industry will be essential in promoting new products. This sales force will be able to adapt and gain new knowledge of the star fruit industry along with the new expert employees that are hired.
Zespri estimates the business could grow 10-20 times bigger in the Chinese market. Chile is emerging as a major competitor. To stay ahead and maintain their price differential, the business must expand. The company is consistently researching different varieties and the possibility of co- branding – which they have done in Japan with a yoghurt company. They are also branching into organic varieties, and have an importer already in China.
With the all the buzz around the 2010 Dietary Guidelines Advisory Committee Report, ZESPRI is eager to share the good news that kiwifruit satisfies many of the committee’s top recommendations. The final guidelines are expected to draw heavily from the report, which will address the challenges of an obese and overweight, yet nutrient-deficient population. So where do the recommendations and kiwifruit’s nutrition profile align? This fuzzy little fruit answers the call for Americans to consume more whole fruit, more low-calorie/nutrient-dense foods and more potassium and fiber—two of the four “nutrients of concern” called out by the DGAC.
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