Porter’s Five Forces
Power of Supplier
Kiwi fruit is one of the famous fruit in Singapore. In addition to this, it has a strong presence in New Zealand. Zespri Singapore gets it supply from New Zealand that is sold in Singapore. New Zealand is the largest exporter of kiwi fruit all around the world (Workman 2017). As a result, the harvest of kiwi fruit in New Zealand is good so that it could supply to the companies all around the world. The supplier power of for Zespri Singapore will be low as there will be number of kiwi fruit growers who will be ready to sell the kiwi in a wholesale rate.
Power of Buyer
Zespri is one of the largest suppliers of kiwi fruit in Singapore, there are very less companies that market kiwi fruits (Zespri.com 2017). Hence, the buyer power will be less for Zespri. The buyers would not have any choice if they want to switch the company.
Threat of New Entrant
Zespri is the only company that is operating in the market of Singapore. However, as there is less number of companies that market kiwi fruit; there is a high chance that some new company will come in the markets to Singapore to operate their business in the country.
Threat of Substitute
A number of fruits have good nutritional value. In addition to this, the nutritional value that is present in kiwi can be found in other fruits as well. Hence, it can be said that there is always a chance of substitution as far as the kiwi fruit is concerned. Zespri will have to market the products well so that the customers could not think of any substitute of the fruit.
As far as the fruit market is concerned, there is huge rivalry among the companies that are marketing different varieties of fruit that are famous in the market (Hollensen 2015). There will be rivalry among types of fruits in the industry. As far as the kiwi fruit industry is concerned, there will be less rivalry as there are less companies that market kiwi fruit
Zespri will make the customers understand the nutritional value of the fruit. As the fruit is not famous among the individuals, they need to convey the nutritional value of the food. In addition to this, the people will be concerned about the taste of the fruits. The individuals should will also be communicated the taste of the fruit so that they get attracted to the fruit (Babin and Zikmund 2015).
The price of the fruits will be relatively lower than other fruits in the market (Sheth and Sisodia 2015). It will help the company to attract the customers in the initial stage. In addition to this, the price that will be paid by the customers for kiwi will help them to protect themselves from different kinds of diseases. When they will see that, there they are able to see that they are able to save on other expenditures like the fees of the doctors, they will understand the importance of kiwi (De Mooij 2013). The customers will be convinced and will pay the price for the kiwi.
As the customers need to know the taste of the kiwis and feel the fruit, it is necessary that the products should be placed physically (Babin and Zikmund 2015). Once the customers will know well about the products then they can place the products online (Czinkota and Ronkainen 2013). The shop needs to be placed in commercial areas as well as in the areas where the hospitals and health care centers where the people will be attracted towards the fruit (Hollensen 2015).
The business of Zespri will be promoted with the help of physical tools. Hoardings will be appropriate for Zespri as the customers will be able to know the nutritional benefits of the fruits (Sheth and Sisodia 2015). In addition to this, they advertisements will also be put up in the television (De Mooij 2013). For a product like kiwi, if they are shown in the television, they will be able to attract the customers in a better manner.
Babin, B.J. and Zikmund, W.G., 2015. Exploring marketing research. Cengage Learning.
Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.
De Mooij, M., 2013. Global marketing and advertising: Understanding cultural paradoxes. Sage Publications.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Sheth, J.N. and Sisodia, R.S., 2015. Does marketing need reform?: Fresh perspectives on the future. Routledge.
Workman, D. 2017. Kiwifruit Exports by Country. [online] World's Top Exports. Available at: https://www.worldstopexports.com/kiwifruit-exports-by-country/ [Accessed 31 Mar. 2017].
Zespri.com, 2017. Home Page. [online] Zespri.com. Available at: https://www.zespri.com/ [Accessed 25 Mar. 2017].