Zespri- the Kiwi Fruit Industry

For the following assignment I have chosen kiwi fruit as my source of concentration and focus. As I started to explore this object, first I have decided to focus on the outer appearance. Just by looking at the kiwi fruit, the shape that I noticed is oval or cylindrical, kind of egg-shaped fruit, a little similar to lemon size, with the two ends on each side. It is also pretty clean and uniform in shape, meaning that it’s not wrinkled or shriveled as I look at it. Skin of the fruit is covered with the thin, short, and fuzzy little hair, almost like it’s wrapped with moss that is of brown color with the dark green layer underneath of it that is evidently flat and plain. The overall color of kiwi is a mixture of brown with dark green. As I

However, due to economic issues SPC Ardmona has reduced fruits demand from the fruit growers (Gavalakis 2013). For instance, the rise in Australian dollar leads to a lower cost in outsourcing than within the region

A prominent goal of marketing research is the identification and definition of marketing problems and opportunities. This goal also includes the improvement and development of marketing actions. Kudler Fine Foods performed a SWOT Analysis to identify its strengths, weaknesses, opportunities, and threats. Strengths listed are: 1) because it is a small organization, KFF can control and watch over all of the stores operations continually, 2) KFF has no direct competition because there are not any gourmet stores in the area, 3) KFF offers its customers a wide variety of produce, fruits, wines, and cheeses. None of the grocery stores in the area can offer such a wide variety of products, 4) KFF is very customer oriented and employs a very friendly staff. Employees help the customer in any way possible and very courteous, to help customers as much as possible, 5) KFF locations are strategically placed in higher classed areas in which people can afford to pay the higher

In the current retail food industry there are numerous competitors fighting for the same dollar. It is important for each company to identify their target market, identify their competitors, and then build their marketing plan. The information below will detail Kudler Fine Foods marketing strategy which includes expanding its services, improving its efficiency of operations, and increasing the customer purchase cycle. The paper will also discuss areas where Kudler Fine Foods needs to further their market research.

The business idea of Zara is to link customer demand to manufacturing, and to link manufacturing to distribution. And based on this general idea, Zara has several essential elements for its business model. First, speed and decision making, which means that in the external level, Zara need to respond very quickly to demands of target customers, and always keep in style. While for the inside, Zara treasure intelligence and judgment of common employees who enjoy a great deal of autonomy. Second, its marketing, merchandising and advertising strategy. Zara does not spend on virtually advertising, while it spends heavily on stores, and no selling online because of

Zara and Benetton: Comparison of two business models. 2010. [e-book] p. 10. Available through: Google Scholar [Accessed: 25 Nov 2013].

No business in this type of industry has total control over the market price and there are no barriers to entry and exit. Because of its monopolistically competitive playing grounds, Zara’s conduct is to increase its market power by producing demand for its heterogeneous products. Through differentiation and cost leadership, Zara attempts to increase market demand by offering new items weekly while keeping a low inventory, thus making its products unique and attractive to consumers. Because of its backward vertical integration model, Zara creates a strong synergy throughout its production process. Zara has sustained a competitive advantage globally by expanding into new markets and becoming more efficient. In a monopolistically competitive industry, Zara is expected to make profits in the short run but will break even in the long run because demand will decrease as average total costs increase. This means in the long run, a monopolistically competitive firm, such as Zara, will make zero economic profit (AmosWEB, 2001).

Zara’s business model can be broken down into three basic components: concept, capabilities, and value

The Papa John’s case provides a classic example of a company that entered a highly saturated and mature market and was able to enjoy immense growth and success due to its creative product differentiation strategy. The company’s motto has been consistent from the day the first restaurant was opened: Superior ingredients and a superior product from its competitors. John Schnatter took the basic concept of product differentiation and positioning to new heights as he created a strong global brand, which had an unprecedented track record of success and customer loyalty over its competitor’s pizza products.

Zara, one of the world’s largest apparel retailers, was founded in 1975 in La Coruna， Spain. With its successful rollout in the Spanish market, it began to expand its stores around the world, and became one of the most profitable brands in the appalling market. Zara was famous for its ability to quickly respond to the market demands, which provides a useful lesson in terms of competitive advantage with its competitors. But confronting to the fast-paced and constantly changing market, if a company wants to consistently increase market share in order to survive in the competitive market, it is irrefutable that it needs to achieve sustainable competitive advantage, since the achievement of sustainable competitive advantage can be expected to lead to higher performance.

We are writing this case analysis and recommendation as a consulting team for Lain Jager, CEO of Zespri. Zespri is a large kiwifruit production firm, operating out of New Zealand. Zespri has managed to create large brand awareness in the market, and is hoping to further expand to maintain their position in the marketplace.

Zespri is a grower-owned corporatized cooperative based out of New Zealand. The company, which was introduced in 1997, is focused solely on delivering and marketing Kiwifruit. Zespri was founded out of necessity by New Zealand's Kiwifruit growers after the price of kiwifruit declined and the industry faced a disaster. Zespri is owned by 2,700 current and former kiwifruit growers, and is governed by an eight member board elected by the shareholders. In 2008, Lain Jager was elected

However, establishing the quality and the efficient system that Zespri has in place would take a lot of time and it would be hard for a new company to achieve what Zespri has accomplished. Also, Zespri’s scale and the SPE made it one of only a few private firms that could fund the required long-term investment in cultivar development for the niche crop. Therefore, it would be difficult for new entrants to acquire the necessary funds and compete directly with Zespri.

Fyffes procures its products worldwide and is one of the leading distributors of southern hemisphere fresh produce in Europe, in particular fresh produce sourced from South Africa and South America. The most common themes arising from the top managers so far involved the need to foster relationships among the SBUs and work with each other to reduce costs (Geoff Percival, 2012). It is critical for the relationship between the suppliers (Other region markets) and the distributors (UK, Ireland and EU). The four SBUs work together for the fresh fruits supplying and selling, the company launched its worldoffruit.com web site and subsidiary, offering Internet-based business-to-business fruits and vegetables sourcing and information supporting the company's operations are its network of 100 storage, distribution, ripening, and other facilities, a fleet of 17 company-owned or leased temperature-controlled ships, and its own land-based transportation fleet, it can share and reduce the transport cost. The synergy management of the four SBUs also helps Fyffes add more value to the supply chain and make the delivery more efficient.

Wafex is a wholly owned Australian business involved in the horticulture industry since the year 1990. The company is presently Australia’s leading exporter to flower importers and wholesalers domestically and around the world, with expertise in providing Australian native wildflowers both fresh and dried varieties. Wafex’s business strategy is to be proactive in selling, with a strong customer focus, and continually looking for opportunities to add value to its services. The company and its owners are aware of the importance of exporting for the survival and expansion of the company; and also believe quality and time to market are important factors in gaining a competitive advantage in the