A market analysis evaluates the dynamics and attractiveness of a market in a specific industry. It is the aspect of the industry analysis and in turn offers the analysis of the global environment. The market analysis helps in identifying the internal as well as the external environment in which a business operates (Winston, Stevens and Sherwood 2013). The purpose of this report is to analyze the internal and external market of Zespri International Limited, which is situated in New Zealand and one of the well-known brands of Kiwi. In addition, the report will highlight the impact of emerging trends and technologies for effective decision-making. In the end, it will discuss the targeting and segmentation of the Zespri Company in the market.
Internal Analysis
Overview of Zespri
Zespri International Limited was established in 1997 as a worldwide marketing organization. Up to now, it is the leader in the market of commercialization of kiwifruit by availing around 30% of the worldwide traded volumes. It vends Zespri branded kiwifruit in 50 nations and the Zespri’s brand strategy concentrates on shifting a consumable commodity fruit like kiwifruit into the category of premium-priced consumer goods (Zespri, 2009).
Vision
The vision of Zespri is to become the famous leader in the world in commercializing kiwifruit. To become the kiwifruit category leader, Zespri offers matchless fineness on brand based customer focus, innovation, and customer relationships, reinforced by cost operative worldwide sourcing of superior fruit (Zespri, 2018).
Mission
The mission of Zespri is to increase the worldwide sales revenue by 2025 to around $4.5 billion (Hey, 2018). This is an ambitious goal of their growth route. Zespri Company is focused to confirm that sales growth offer value to growers. This will be achieved by the continuous concentration on offering a premium-branded strategy, reinforced by investment in innovation, marketing, and sales, and ongoing enhancements in the supply chain.
Corporate Culture
The administration of the Zespri is very cooperative as it keeps its strong focus on the development of its people. To ensure the development they always perform in the best interest of their farmers and investors, they are concentrated on executing a strong performance and culture that is results based. The people in the company work very hard to deliver the best operations on each level. The company offers value to its customer in the form of quality, the health of the customer, and sustainability (Hoogstraten, 2018).
Product Description
Zespri includes two products in its range that is Zespri SunGold and Zespri Green; both the varieties are also provided in the organic quality.
Zespri Green is rich in nutrient, fiber, and contains actinidain, which is known as a protein that helps in dissolving enzyme. These features of the fruit enhance the digestive health of people. Beside this, it is also rich in vitamin C; involve antioxidants, natural spring of folate, low glycemic index, and potassium.
Zespri SunGold is full of vitamin C and called as the king in the category of kiwifruit. It is rich in nutrient fruit, full of minerals, antioxidants, vitamins, & other fitness boosters.
Customer Value Proposition of Zespri
We offer you fresh and healthy fruit, which is grown, in a manner that has very little influence on the environment.
Current Situation in Market
Zespri International Limited is one of the biggest marketers in the world of kiwifruit based in New Zealand. Currently, the company concentrated on reinforcing its place in the Asian market, which is the strongest developing market for the fruit according to the views of Zespri’s administration. India is one of the locations where it enjoys a maximum of the market share, is one of around 59 nations to which brand exports it kiwifruit. Germany, Japan, Spain, U.S, Australia, China, and New Zealand are the biggest of these nations. The marketing giant of kiwi is considering growing its market share by increasing its volume of export in 2018 (Fresh Plaza, 2018).
It is known that Zespri possesses the most experience as well as knowledgeable staff, which contribute towards the successful introduction and implementation of strategies within the organization. The success of Zespri in the fruit market is the evidence of this. Core competencies of Zespri International limited are innovation, supply chain, and marketing strategies. In addition, these competencies support the company in attaining a competitive advantage in the market. The brand Zespri stands for health, sustainability, leadership, fun, taste, vibrancy, innovation, and imitates the quality of their premium kiwifruit. However, the brand awareness of Zespri is low among customers but it could be increased with the help of programmes of relationship marketing comprising supply chain management and targeted marketing (Beverland 2001).
External Environment analysis
Political/Legal
The supply of kiwifruit is very controlled and a typically exported trade good. There is a legal charge in topographic point for diverse states, which limit or restrict the import of kiwi fruit. For example- China only permits Kiwifruit from New Zealand that is sold in its market. A legal organic assembly administers the achievement of Zespri, which helps it stand out from the crowd in the industry (New Zealand History, 2018). The main legal side is Zespri Group Limited, which assigned divisions to the agriculturists depending on their production.
Social
Zespri is known as a puddingstone for agriculturist of New Zealand and integrally imitates the provision as well as good being of the husbandman. Agriculturists are provided with some portion within the organization depending on their production and their overall product is related to their life criteria (Zespri, 2004).
Technology
Invention within the industry reflects the growth of fruit because it increases the production as well as help in reducing the cost. The advantage that Zespri has is the “Zespri System” which garners the highest quality standards and sets their stock separately from different players in the market (Zespri, 2018). Zespri make use of advanced technologies like grilling and auxiliary pollination to make the fruit sweeter fruit and improve quality.
Environment
Weather plays an essential role in production but the main factor in the review is the sustainability of the land of production. The final goal of Zespri is to increase the level of production, which eventually will affect the environment (Zespri kiwifruit, 2017).
Intermediaries
Intermediaries are those who act as a bridge between manufacturer and end customers. Intermediaries are used in the business for delivering and transferring goods from one place to another. They help the business organization to carry product from one intermediary and deliver to another. Zespri involves four intermediaries in its supply chain that is Farmers, pack houses facilities, retailers, and customers (Wageningen University, 2018).
Supply Chain of Zespri International Limited
Kiwifruit is the part of those fruits that are traded globally in a cold chain determined by Notteboom and Rodrigue as the conveyance of temperature sensitive products with a supply chain by refrigerated and thermal methods of packaging. In this category, kiwifruit has been classified as striking fruit like avocados, pineapple, etc. that are generally stored at around zero °C temperature. Within the supply chain system, there are various organizations or KCPs (Kiwifruit Chain Players), which are comprised of creating, handling, allocating, and commercializing kiwifruit (Wageningen University, 2018).
Growers
In the supply chain of Zespri, growers are located on the top of the chain and deal with every activity targeted at converting resources into precious kiwifruits. They are involved in the management of pesticides, machinery, fertilizers, orchards, capital, employees, and so on. The growers possess licensee contracts with Zespri. They supply the kiwifruit to the Zespri and in return, they get reliable payment for consistent kiwifruit (Wageningen University, 2018).
Pack-house workers or cooperatives
The main activity of the processes throughout the post-harvest time is to reserve kiwifruit by storing and packaging. Harvested kiwifruit are immediately refrigerated into the infrastructure of cooperatives. The infrastructure of the Cooperatives comprises machinery of packaging and grading. Pack-house is also working with Zespri on the contract basis. The perform activities like labeling, storing batches, quality management, and packing of fruit (Wageningen University, 2018).
Traders/ Retailers
Traders are generally businesses that organize the export, import and sell lots of kiwifruits to wet market and supermarkets. They handle the kiwifruit flow as well as cash flow. Zespri also has its contract with the retailers that ensure the supply of kiwifruit (Wageningen University, 2018).
Customers
Zespri regularly tries to maintain good relations with its customers by offering high-quality products, promotional campaigns, and diverse variety. These activities have also helped the company in creating brand recognition (Wageningen University, 2018).
Review of Competitive Environment
Porter Five force model
Buyer Bargaining Power
As kiwifruit is the part of a niche market, the power of the buyer is higher. To meet the needs of the buyers Zespri and other players in the market should differentiate their range. By providing quality products companies can pull and recall the consumer with the help of their first-class trade name.
There are a lot of suppliers in New Zealand, which eventually decrease their supplier power. Zespri should market it every provider because some of the customers are only aware of its services (Massey University, 2003).
Rivalry among existing companies
In this industry, competition is high because it is the niche market. As merchants of food market retail buy products in bulk with diverse fruit assortments, kiwifruit is just one of various fruits competing for inestimable. Competition ensures going for the industry of kiwifruit, which is making it increasingly tough to full the shelves of the food market. In order to survive in the market, Zespri and its competitors should try to differentiate their stock by maintaining a competitive advantage. Zespri is trying to cover the market with its marketing strategies but the market is very competitive due to its indirect competitors such as suppliers and direct competitors Seeka Kiwifruit Industries Limited and Satara Co-op Ltd (Massey University, 2003).
Threat of substitute
The threat of permutation of the kiwifruit is high. As this is the part of a niche category, several customers can simply move from kiwifruit to another fruit. To evade this situation Zespri should inform customers on not just about the kiwifruit’s nutritional value but also on how their stock possesses better nutritional value. Zespri has introduced a gustatory sensation test strategy to attempt to grab new customers by doing some modifications in their products to ensemble consumer’s desires. However, as there are various fruits in the market the threat of substitute are high (Massey University, 2003).
The threat of New Entrant
The threat of new entrants is low because of the established name of Zespri, which has helped it in setting hard criteria to carry top quality kiwifruits. As Zespri executes a discrepancy structure, they do not have worry about being expensive in the industry (Massey University, 2003).
Social Responsibilities
In order to promote the services, Zespri International Limited provides supermarket sampling and promotions in the store, comprising corporate social responsibility like helping in the appeals of blood donation (Asia New Zealand Foundation, 2018). Moreover, the advertisements of Zespri highlights the health benefits of the fruit, and their advertisements are mostly based on increasing the emotional link with the consumers.
Impact of Emerging Technology
Emerging technologies, in their varied form, are transforming the whole world of operations, how the company operates, alter, and develop and the type of leadership, professional career, and managerial roles. They have now become the essential part of the industry, business, and commerce all over the world, increasing the development of two powerful forces in the worldwide economy computing power and cyberspace (Forster 2006).
Zespri has involved various technologies in its cultivating of kiwifruit. They have implemented advanced technology for the harvesting as well as cropping of kiwifruit and its farmers are trained to use those technologies. These technologies have supported it in increasing the cultivation of kiwifruit.
Market Segmentation and Targeting
|
Market Segmentation |
||
|
Bases |
Segment A |
Segment B |
|
Demographic |
For all the age groups |
Generally, kiwifruit is traded at a high price so customers with good purchasing power will be targeting. |
|
Geographic |
The company has targeted various countries for supplying kiwifruits such as Germany, Japan, Spain, U.S, Australia, China, India, and New Zealand |
|
|
Psychographic |
Customers that are concerned about their health are targeted in this segment |
Professionals such as Doctor who recommend their patient to have a good and balanced diet, the company can target them. |
|
Behavioral |
Company an target based on taste and preferences |
A customer with sufficient income can purchase this fruit. |
Conclusion
From the above internal and external environment analysis of Zespri International Limited, it can be said that it is one of an organization that offers the best quality kiwifruit with two varieties. However, it deals with the huge challenges of substitute fruit because of the price of kiwifruit in the market. Zespri is effectively dealing with these challenges and promoting its offerings by being emotionally linked with the customers. Moreover, the emerging technologies are also supporting company in cultivating the quality kiwifruit and supplying it to the end user.
References
Asia New Zealand Foundation 2018, Zespri, Zespri, Asia, viewed 30 August 2018,
Beverland, M 2001, ‘Creating value through brands: the ZESPRITM kiwi fruit case’, British Food Journal, vol. 103, no. 6, pp. 383-399.
Forster, N 2006, ‘The Impact of Emerging Technologies on Business, Industry, Commerce and Humanity during the 21st Century’, The Journal of Business perspective, vol. 10, no. 4.
Fresh Plaza 2018, Zespri International: India is strongest emerging market for kiwifruit, Fresh Plaza, Netherland, viewed 30 August 2018,
Hey, J 2018, Zespri unveils new executive team, Fruit Net, Hong Kong, viewed 30 August 2018,
Hoogstraten 2018, Zespri International Ltd, Hoogstraten, U.S, viewed 30 August 2018, <casestudyhelp.com/sample-questions/the-australian-supermarket-industry-case-study-help/>
Massey University 2003, Strategic Management, Competitive Advantage and the Balanced Scorecard in the New Zealand kiwifruit industry: A Co-operative group case study, Massey University, New Zealand, viewed 30 August 2018,
New Zealand History 2018, Chinese gooseberry becomes kiwifruit, NZ History, New Zealand, viewed 30 August 2018,
Wageningen University 2018, Understanding and Analysing the Italian Zespri Kiwifruit Chain Aiming on Opportunities for Enhancing Growers’ Productivity, Wageningen University, Netherlands, viewed 30 August 2018,
Winston, W., Stevens, R.E., and Sherwood, P.K 2013, Market Analysis: Assessing Your Business Opportunities, 2nd edn, U.S, Routledge.
Zespri 2004, ZESPRI Group Limited, Zespri, New Zealand, viewed 30 August 2018,
Zespri 2009, Zespri Annual Review, Zespri, New Zealand, viewed 30 August 2018,
Zespri 2018, Who Is Zespri, Zespri, New Zealand, viewed 30 August 2018,
Zespri 2018, Zespri System, Safety and Compliance, Zespri, New Zealand, viewed 30 August 2018,
Zespri kiwifruit 2017, Zespri 5 Year Outlook, Zespri, New Zealand, viewed 30 August 2018,
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