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Zespri Final Alternative
Zespri Final Alternative
Jeremy Pagel, Zak Kretchman, Robbie Schuler, Andrew Braun, Larry Jacques
Zespri Today
Grower owned corporatized cooperative Main exporter of kiwi fruit in New Zealand $1.5 Billion in exports to over 60 countries
Performance Assessment
Customer Satisfaction
Competitiveness Productivity Profitability
Customer Satisfaction
Zespri ranks high in customer satisfaction due to four main factors:
Branding: links the product to quality, country of origin, and variety (pull) Customer Segmentation: Varying products for varying demands. Green, Gold, Organic, and Value. Sweeter Cultivars: sets the standard, deters competition Year Round Accessibility: maintains retail space, enhances demand, strengthens distributor relationships
Office Locations: New Zealand, Australia, Belgium, China, France, Germany, Italy, Japan, Spain, Sweden, Taiwan, United Kingdom, United States
Consumer Segmentation
Competiveness
Positive Attributes Information Sharing: above and beyond Purchasing Power Returns of Fruit (spoilage, quality) Negative Attributes Labor Costs (negative) Dollar Value NZD compared to EURO,USD,GBP,JPY (volatile)
Hedge against seasonal exchange volatility
China 32%
Things to Watch
Exports By Volume
% Variety
*The ZESPRI- sourced crop included 72.7 million trays of ZESPRI GREEN, 21.9 million trays of ZESPRI GOLD, 2.9 million trays of ZESPRI GREEN ORGANIC and 2.5 million trays of other kiwifruit.
*Source: plantandfood.co.nz Green Gold Green Organic Other Varieties
Competitors Compared
Area Harvested
(Hectares)
Yield
(Hectogram/Hectare)
Production
(tonnes)
Fc Fc Fc
Im
[ ] = Official data | Fc = Calculated | data F = FAO estimate | Im = FAO data based on imputation methodology
FAOSTAT | FAO Statistics Division 2012 | 13 February 2012
*Source: http://www.mirinz.org.nz
Productivity
*Around 250 people work for ZESPRI International Limited globally. *[Their] policy is to recruit and retain qualified people who understand local conditions and the markets in which [they] operate. *[They are] owned by more than 3,000 current and past growers, who are as determined as the ZESPRI Board, Executive Team and staff
SOURCE :Zespri.com
Profitability
NZ has a high cost of production (labor, land, freight) Amazing growing Conditions Unified
Profitability
Profitability
Ability to capitalize on:
Resources
Financial(294.5M), Other Financial Assets (76M( Physical(5.5M)), Technologies, Reputation, Human resources
Capabilities
Corporate Functions, Management Info, R&D, Operations, Design/Marketing, Sales/Distribution
Profitability
+39.8%
Performance Summary
Customer Satisfaction
Competitiveness Productivity Profitability
Strengths
Marketing Consumers Pay Premium Price Setter Advertising Grower Tours In Store Tasting Local Sales Offices Deal Directly with Large Retailers and Distributers
Strengths
Financial
Very Profitable Net Profit was almost 26 million in 2010 Liquid Current Assets - 130 million ROI Consistently around 50%
Operations
Tight Logistical Control (tracking) Licensing Monitor Market Conditions in Growing Season Sales Support in Key Markets 12 Month Supply
Human Resources
Skilled at communicating with growers and customers 117 off shore staff
Strengths
Management CEO hired from within and can communicate very well with growers. Organization Good Public Image Local Sales People Present in Large Markets Information Market Research Studies Two Way Communication with Licensed Growers
Weaknesses
Current Ratio
2009 to 2010 = 1.29 2006 to 2008 = 1.64
External Analysis
Porter 5 Forces Analysis
Threat of New Entrants
Threat of Substitutes
Opportunities Analysis
Change in buyer demand Information technology Shipping and storage technology Increasing globalization New Fruit Markets
Opportunities Analysis
Cont.
Change in buyer demand:
Kiwifruit is still a niche product Large markets in Europe, China and Japan Untapped markets in US and other countries Introduction of Golden kiwi New customers brought in by health benefits
Threats Analysis
Food Safety
Government Regulations and Taxes South American Kiwifruit Other Kiwifruit Growers
Government Regulations and Taxes Local governments sales tax and regulations on exports can always increase Over 60 foreign markets
Threats Analysis
Strategic Synthesis
Core Competencies
Marketing
Price Setter Local Sales Offices Deal Directly with Large Retailers and Distributers In Store Tasting
Operations
Tight Logistical Control Licensing Monitor Market Conditions in Growing Season
Information
Market Research Studies Two Way Communication with Licensed Growers
Future Scenarios
Decline
Supply issues or change in consumer preferences
Fundamental Change
Spread risk and increase revenue by expanding into other fruit marketing endeavors
Moving Forward
O
Offensive
Strengths > Weaknesses
Turnaround
Alter internal strategy to build new strengths; be turnaround focused
Offense
Exploit current strategy fully; be aggressive
W
Alter internal & external strategy; be defensive; question existence
S
Alter external strategy to diversify into new opportunities
Defense
Diversification
Questions??