Zespri analysis

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University of Windsor *

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BSMM8330

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Marketing

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Jan 9, 2024

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docx

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Uploaded by CaptainKnowledgePorcupine35

Define Zespri’s corporate strategy in two steps. First, briefly describe the organization's strategy using Porter's Generic Strategies. Second, outline how the strategic actions either allow or disallow the firm to cope with its local and global environments, as evidenced by Zespri’s ability to satisfy the major stakeholders mentioned in your aforementioned answer. Be sure to incorporate aspects of the Resource-based View and any framework that supports its use. Zespri employs a differentiation approach. Their domestic population is too small to justify a low-cost approach, and their distance from important markets adds significantly to the cost of transportation. Land and manpower are costly in New Zealand. They thus put into action a strategy that promotes premium pricing. Zespri, a unique and meaningful brand name that means "bright, vigorous, healthy, and full of life," sets it apart. The positioning line is ‘puts life in to life’. Zespri focuses on three main objectives namely, boosting the number of people who regularly eat kiwis globally, raising the earnings of kiwifruit growers, and consistently delivering tasty, nutritious kiwis. Strategic actions  They make use of an integrated supply chain, the Zespri system, which is centred on client requirements and sustainability.  High-end consumer brand: Highlight distinctive features of the product. A strong brand made it possible to attract customers. Emphasised superior quality  Spend money on in-store advertising campaigns.  Innovation investment with a focus on branding new products as "Gold." It improved the premium brand image of Zespri, sparked interest in the sector, and attracted new consumers who weren't like of the flavour of regular Kiwi. Gold kiwi growers received more yields per acre. high level of innovation investment. substantial funding for nutrition and health studies. In 2010 – 3 new IP protected varieties were in the first stages of commercialization.  Presented consumers with a bundle of green and gold kiwis, which benefited the farmers  Global production strategy yielded a twelve-month supply; however, gold had a shorter storage life than green. collaborated with Korea, Japan, France, and Italy. was able to keep up retail shelf space, meet consumer demand, and improve connections with distributors. Zespri identified and separated products to satisfy specific market demands in collaboration with

growers and packhouses. A lot of buyers were willing to pay extra for sweeter fruits. It will prevent competition from occurring. utilised specialised growth methods, like girdling.  Market development: Recruited local workers and expanded advertising in the neighbourhood. For example, currently the fifth largest market.  Relocating the corporate headquarters to the Bay of Plenty region, which is home to 80% of New Zealand's kiwi farms. It made getting in touch with growers simple. arranged to transmit signals to growers from customers.  Growers' call centre, informational website, technical journal, and monthly newspaper. Assist growers in implementing the best practises and technology. Grower visits each year. Since they were much smaller than customers, suppliers and exporters had no voice. Given that kiwi made up a small portion of the retailer's product line, suppliers were price takers.  Strict growth guidelines and quality assurance procedures, as well as investments in consumer branding and innovation, are what set Zespri apart.  Zespri Gold, a patented kiwi variety with yellow flesh and a sweet taste that demanded a higher price than its traditional green relatives, was created in 1998 thanks to industry funding of plant research.  Global sourcing approach: year-round availability on shelves Growers required to discover new markets. Kiwi is sourced from overseas, with an emphasis on retail marketing tactics as opposed to bulk commodity trading. In New Zealand, Turners and Growers  To indicate that New Zealand Kiwi was different from competitors, a new customer-oriented strategy was implemented, involving increased innovation and product differentiation as well as the development of a distinctive brand with an appealing brand proposition. Stakeholders  Marketing licensing authority – mandatory levies for minimum quality standards for exports, funded R&D, coordinated international promotions  New Zealand kiwifruit marketing board – exclusive powers to purchase, distribute and market kiwi in all international markets except Australia.  New Statutory Board – KNZ – To monitor the industry  Retailers – more per square meter with New Zealand Kiwi – shelf space – higher margin per square meter due to high selling price. Lower fruit loss due to high quality of the product

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