ZESPRI CASE STUDY HARVARD

Facing growing international competition, Zespri invested in consumer branding and innovation, which has led to new types of kiwifruit that taste better and are protected with patents. The Zespri brand was launched in following a decision by New Zealand growers to represent the high quality New Zealand kiwifruit under a unique brand to maximize the sales revenue for growers. Since buyer power is high for this niche fruit satisfying the consumer is the top priority to obtaining profitability. For example, Zespri can find the kiwifruit juice manufacturer domestically or in other countries like China where there is enough kiwifruit source and the labor and land cost are less. As a result a decision was made to change from having a marketing board to having a corporate that would be responsible for the sales and marketing of the entire New Zealand crop. As mentioned in the case, those varities may include sweeter greens, more yellow-fleshed or different colored varieties, and smooth-skinned fruit. The ads like Tv ads,online media ads, digital screen ads are also need for the new juice.

After the Zespri brand was launched in , exports of Zespri Gold kiwifruit began the following year. Bord Bia’s CEO, Tara McCarthy, was shaping the government agency’s new strategy amid a volatile socio-political environment with Brexit and other cross-border trade issues and in light of consumer trends in the macro food and drink industry. Your Answer is very helpful for Us Thank you a lot! The New marketing mix could improve the original strategy weakness and make it more suitable for different market conditions so that the managers can make decisions more flexibly based on the characteristics of different markets. The logistics system they are currently using is working, however if they are to expand into providing a month supply of kiwifruit, then they will need to expand their supply chain. In doing so, they will have liquidated machinery, land, and a large amount of expenses that each supplier entails. When managers decide to make a decision for new strategy, the decision criteria should be considered as follow:.

And indeed, as embodied by Nigeria’s status as a net food importer despite having 80 million hectares of potential agricultural land, the challenges are considerable. Their name brand allows them to set prices, rather than take them, and the brand creates value for the firm. Strategically Growing Irish Exports. Jose Alvarez and Natalie Kindred. Marketing is another primary activity that Zespri manages phenomenally, they are able to create market pull due to the strong brand name they have created.

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zespri case study harvard

By doing this Zespri ensures future success due to being able to have proactive growing practices as well as being able to continue to differentiate their product from other substitutions by educating the consumer on the added benefits of kiwifruits. They can choose to sell in the Chinese market where customers purchasing power become stronger and stronger to gain more customers and to save the shipping cost,etc so that they can get higher profits per product.

They use the differentiation strategy by ensuring they are producing top quality kiwifruit. Zespri is consistently experiencing steady growth, and increased competition. AlvarezForest L. Zespri and suppliers are highly relying on each other. From to the industry went through rapid growth due to investor interests. Even though we know that kiwi has more nutrition than other fruits have, we may still not choose kiwi due to its high price.

zespri case study harvard

Zewpri new marketing mix also has the highest potential for growing market share at least in the short-run. Therefore, the status quo also keeps Zespri in a growth export, which increases 0. Zespri effects the industry the most in an economic sense in that they are the price setters of the industry providing a price umbrella for the fruit thus stimulating the demand that ultimately grows the economy.

Unfortunately, the kiwifruit is not inimitable. The name is known for quality and availability.

Zespri – Case – Harvard Business School

In order to satisfy the buyers and profit, Zespri and other companies must differentiate their product. Te Kete Ipurangi Navigation: In the future the outbound logistics will continue to be excellent and grow and adapt by stusy technology but they are currently able to successfully move million trays of kiwifruit a year.

How to cite this page Choose cite format: They manage grower relationships in New Zealand and also procure fruit from around the world as well. With a strong and famous brand image, it may be easy for Zepri to find enough supply chain partners to cooperate.

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Zespri Harvard Case Solution & Analysis

Another last-resort option for Zespri is to issue and sell more shares to growers outside of New Zealand. The threat of substitutes is high. Leave your email and we will send you an example after 24 hours These activities are what make Zespri such a successful company. They must need much more money in advertising. These activities will continue to create zespdi to Zespri into the foreseeable future due to the approach this successful company has taken.

Since Zespri implements a differentiation strategy they do not have to worry zespru being the narvard expensive in the industry, there are 4 big producers that compete amongst each other. For instance, China is one of the northern producer, which can supply Kiwifruit in different season, besides, it has perfect environment and lower labor cost for producing Kiwifruit.

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There is zes;ri extra cost for Zespri but they still can gain increased profit All the strategies are stable for Zespri Cons: According to those data, we can conclude that they cannot compete with New Zealand cause other countries do not have the management and financial support from the government as comprehensive stufy Zespri has. For example, Zespri could do some efforts to establish good public relations that can enhance their brand image and finally increase the customer base indirectly.

There was a downtrend in asset turnover from ; because new strategy need more assets in the company achieve objectives.

Not every location is suitable to produce high quality products and to maintain sustainable supply chain partnerships.