Vitaco Health
(NZ) Ltd
Empowering healthier lives
Empowering healthier lives
Breakdown of Vitaco’s Total Business
…. by Segment
…. by Market
15%
37%
48%
NZ
Australia
International
Food &
Beverage
Sports
Nutrition
Supplements
Agency
Approx. 63% of total company revenue
is generated outside of NZ
Empowering healthier lives
Supplements is still core of our business
but other areas have and continue to
show significant growth
Vitaco’s International Business
N. Asia
Australian
Contract
SE Asia &
Pacific
Europe
Middle East
NZ Contract
We currently export our brands to around 30 countries under a variety of different
Sales and distribution agreements.
SE Asia is our 2nd largest export market behind Nth Asia
We have been exporting to SE Asia for approx 15yrs
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International Market Entry Checklist
Proactive Model
Collection and analysis of information on;
• The specific market
e.g. Market size and value; distribution channels; major competitors , sales
taxes (GST), etc
• The regulatory environment
e.g. Registration procedures, product classification, customs duty, import
licenses, product labelling etc
• Potential local distributors
e.g. Size, turnover, experience, competencies etc
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Case Study – The Reactive Model
Thailand
Background;
• Approached by a company who is already distributing a competitor brand in the
Market.
• They understand how the products are classified from a regulatory perspective
• They have previous experience registering similar products with the local regulatory
authorities.
• They have been able to provide information on the size of the market and their share.
• They have an established client base in the appropriate distribution channel.
• They have been able to provide us with information on competitor pricing and the
distribution channel’s margin structure.
Next steps;
• Preliminary estimate of the size of the opportunity using data on market size and product
pricing/margin analysis etc.
• Analysis of the resources and costs required to register and the likely timeline to launch
• Analysis of the barriers to entry, e.g. country specific labelling, suitability of local formulations
• Evaluate potential distributor’s strengths and weaknesses, clarify their expectations of us as
brand owner, and consider pros & cons of being a 2nd brand with this distributor
Finally a decision will be made on whether to prioritise this opportunity and allocate
the required resources.
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International Market Entry
Expanded Check List
1. Information Relating to Marketing of Products
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Which particular products are they interested in?
What region[s] and channel[s] would these products be sold through?
Total Market size[s] & value[s]
Breakdown showing size and value of major segments that make up total market
Competitor brands
Major brands, form and retail prices of similar products currently in market
Margin structure in market, e.g. duty, wholesaler margin, distributor margin, retailer margin
What Distribution channels would our products be sold through?
Attitude of consumers to New Zealand products such as these
Attitude / knowledge of consumers about this product category
Regulations / laws relating to promotion of these types of products
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International Market Entry
Expanded Check List
2. Information Relating to Regulatory Environment of Potential Market
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Tariff code for this type of products
Duty rates/Free Trade agreements?
Import Quotas (if any)
Registration procedures and authorities, including details of product registration ownership
structure
Labelling requirements (nutritional, language etc)
Import requirements (e.g. import licences)
Documentation requirements (e.g.health certificates, origin certificates etc)
Any impending changes to regulatory environment that will affect these types of products?
Empowering healthier lives
International Market Entry
Expanded Check List
3. Information Regarding Potential Local Distributor
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Size - annual sales turnover, number of staff
Number of years in business
Ownership structure
Other products marketed
Associations / distribution agreements with other companies and products involved
Distribution network – how, and to whom are similar products they currently sell distributed
to?
Strategic alliances
Marketing and sales infrastructure [including type and number of outlets]
Ability to influence decision makers in channels
Sales potential / performance targets for our products
Coverage of all business functions – registration, import, marketing, sales, distribution,
customer feedback
Are you aware of any impending changes which may affect the market for these types of
products?
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