ASSIGNMENT 2: MARKETING STRATEGY – SEEKA
Marketing Planning and Control - 601
Team G77
Preetika Dutta (27874)
Vanderbilt Leynes (27654)
Cassiano Santos (27459)
New Zealand Institute of Education (NZIE) 03 October 2014
TABLE OF CONTENTS
I. Project Plan
II. Executive Summary
III. Introduction (SWOT)
IV. Objectives
V. Strategy Formulation
VI. Marketing Mix
VII. Conclusion
VIII. References
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Week 1 (inclusive dates)
LEAD
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9/8/2014
9/9/2014
Monday
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9/10/2014
9/11/2014
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Week 2 (inclusive dates)
Week 3 (inclusive dates)
Week 4 (inclusive dates)
9/12/2014 9/13/2014 9/14/2014 9/15/2014 9/16/2014 9/17/2014 9/18/2014 9/19/2014 9/20/2014 9/21/2014 9/22/2014 9/23/2014 9/24/2014 9/25/2014 9/26/2014 9/27/2014 9/28/2014 9/29/2014 9/30/201 10/1/2014 10/2/2014 10/3/201
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START TASKS
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Meeting and organizing
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Defining SMART objectives
Defning a strategy and marketing
mix
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Task 4
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Task 5
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DRAFT TASKS
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Draft on 3 objectives
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Submit draft
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Draft on strategy
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Submit draft
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Draft on marketing mix
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Submit draft
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Compile final draft
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REVISE TASKS
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Revise first draft and compile
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Revise final draft
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SUBMISSION
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Preetika
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Van
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Saturday Sunday
Assigned to
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Status
Cassiano
Preetika
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START TASKS
i
Meeting and organizing
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ii
Defining SMART objectives
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iii
Defning a strategy and marketing mix
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iv
Task 4
v
Task 5
II
DRAFT TASKS
i
Draft on 3 objectives
X
ii
Submit draft
X
iii
Draft on strategy
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iv
Submit draft
X
v
Draft on marketing mix
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vi
Submit draft
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vii
Compile final draft
III
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REVISE TASKS
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Revise first draft and compile
X
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ii
Revise final draft
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IV
SUBMISSION
KEY
Incomplete
Completed
Cassiano
Preetika
Van
II. EXECUTIVE SUMMARY
Objectives
• Provide a background on the three (3) main corporate objectives of the company
used as basis for marketing objective formulation (return to pre-PsaV revenues, risk
mitigation, and acquisition/alliance)
• Provide SMART definitions for each objectives
• Present formulation of marketing strategy to understand where and how marketing
strategy was derived
• Present marketing strategies in line with key “P’s” covrering product, price, place,
and promotion (distribution)
Strategy Formulation
• Use of McKinsey square to understand kiwifruit industry and Seeka’s business
position
• Provide sustainable competitive advantages (SCA’s) to support strengths of Seeka
leading to marketing strategy formulation
• Proposed position of Seeka in the industry and how to formulate marketing strategy
Marketing Strategies
• Marketing strategies based on 4 P’s
• Analysis of current strategies including sub groups within each strategy (i.e. price –
internal and external)
• Provided strategy recommendations in line with corporate and marketing objectives
• Key recommendations include:
o Pricing strategies focusing on discounts and sales promotions targeting key
segments like emerging minority groups
o Product strategies exploring the possibilities of new product lines (dried fruit,
canned, and juice)
o Distribution strategies leveraging existing structure and expanding into nearby
geographies (China, which is near 2/3 key markets for Seeka, Taiwan and
Malaysia)
o Promotion to capture the growing online community and for Seeka to begin
creating a consumer community (not just focused on B2B) using a range of
tactics
III. INTRODUCTION
As a basis for the objectives, strategy, and marketing mix formulation, below is an
overview of the situational analysis for Seeka highlighting key strengths, weakness,
opportunities, and threats.
STRENGTHS
Management - good leadership and
management have allowed Seeka to steer
clear from further declining in the market
after the PsaV affected all kiwifruit
companies. They were able to do so due to
wise cash flow decisions by not paying
dividends to use the cash to reinvest in
diversifying products, research and
development to combat PsaV, all of which
are measures to mitigate future risks.
WEAKNESS
Marketing capabilities - in truth, the
company focuses too much on marketing
to their immediately customer, markets
(supermarkets, grocery stores). However,
allotting some resource to generate
awareness for the brand on the consumer
level will lead to an increase in demand for
goods in supermarkets, leading to increase
in demand from the markets. Additionally,
the benefits of the kiwifruit is not
highlighted enough. One good case for
Operations - they also ensured good
comparison is Dole, one of the most
relations with their growers to make sure
recognizable brands in the fruit industry.
that operations is sustained and the
Dole ensured, through its marketing
company continues to hit its figure in terms communication, that they were
of maintaining fruit loss to low levels, which synonymous with pineapples, and that
is a key performance indicator (no more
their customers knew the benefits of eating
than 5-6%)
pineapple.
OPPORTUNITES
THREATS
Asian countries that are on the rise Another possible outbreak of the PsaV,
according to Horticulture Expert Authority
and it can be a different strain that will take
of New Zealand (HEA), there are multiple
time to contain.
Asian countries that are increasing in
terms of number of kiwi fruit consumed, but Additionally (not covered in the previous
more specifically the rise (aggressive or
paper), a group of kiwifruit growers would
minimal) in these countries’ GDP should
like to provide an alternate exporting
be considered when planning to expand to agency from Zespri to create a duopoly.
capitalize on these opportunities
Although nothing concrete has been
agreed upon, it is important to monitor the
Opportunity to increase brand awareness
progress of the structure of how kiwifruit is
(Again, the example of Dole should be
exported and marketed. (NZ Herald, 2014)
considered by Seeka)
Based on these factors, we are proposing to the Seeka management team the following:
(1) Three (3) objectives that are specific, measurable, attainable, realistic, and timely
(SMART). These objectives are; (1) increase accessibility (price and location); (2)
greater online presence (with a focus on building an online community); and (3) brand
awareness
(2) Key marketing strategies aligned with corporate strategies and other business units
that will help Seeka realize the above-mentioned objectives
(3) How each part of the marketing mix (8 P’s) should be structured in alignment with the
marketing strategy
IV. OBJECTIVES
Prior to developing Seeka’s marketing objectives, it is important to understand the
company’s corporate objectives in order to ensure that the objectives being proposed
are within the company’s capabilities and reach.
A. Corporate objectives
Provided in the table below are three (3) key objectives that the team has surmised
based on reading the necessary literature about the company and its position for the
past three (3) years up to the present (includes annual reports, company website, and
news articles).
According to the summary of the 2013
Annual Report (Seeka, 2013), the
company aims to recoup its losses due to
the negative effect caused by PsaV that
left the entire industry in a state of
uncertainty.
1. Recoup losses from PsaV
2. Ensure risk mitigation systems are in
place
Seeka’s strategy to weather the Psa-V
outbreak in recent years included selling
surplus non-core assets, reducing debt,
restructuring operations to reduce costs,
and limiting capital expenditure. Seeka
pursued new business areas to improve
earnings. The company withheld dividends
while it focused on lowering debt. Dividend
payments have been reinstated now that
net debt levels are well within the Board’s
target range.
Key measures for Seeka to ensure that
risks will be mitigated in the future include;
(1) product diversification, the company
has invested heavily to grow its other
product lines including avocado and kiwi
berry; and (2) investing in their research
and development arm, the Verified Lab
Services (VLS) to ensure that findings from
key studies will lead to the development of
combating the PsaV and any other strain in
the future that will affect kiwifruit crops.
3. Acquisition/alliances with companies
that share the same objectives are Seeka
As the focus of our paper is on kiwifruit, we
highlight measure two (2) – risk mitigation
thru VLS, and we will use this objective to
connect with the Marketing objectives and
mix.
Finally, as a major player in the kiwifruit
industry, Seeka is constantly looking for
opportunities to acquire or partner with
companies that complement the
company’s existing capabilities, and will
ensure the growth of Seeka as a major
provider in the market.
Additionally, a fourth corporate objective is focused on refining the company’s safety
strategy. A new safety induction process for visitors to our sites will be introduced in
2014. Drugs and alcohol testing remains a normal process within the company.
B. Marketing objectives
Upon reviewing the existing marketing strategies and surmising the current marketing
objectives of Seeka, we find that although Seeka has been successful in conducting
business-to-business (B2B) marketing, we find that the company stands to benefit from
also engaging in business-to-consumer (B2C) marketing. Based on our findings, there
are three (3) objectives wherein Seeka can dedicate its focus, and in so doing, will
provide results, not only in line with the corporate objectives, but also to ensure its place
as a renowned kiwifruit brand in its key markets.
The three (3) key marketing objectives are:
1. Increase accessibility
2. Greater online presence
3. Brand awareness
These objectives are further detailed below.
Accessibility
Seeka kiwifruit have a strong influence in Australasia market, more specifically, in
Australia where Seeka kiwifruit is present in more than 700 hundred Woolworth
supermarkets (Seeka, 2013). Although Seeka is already present in hundreds of
Woolworth’s, the company has yet to fully penetrate all Woolworth’s stores with a total of
872 (80% penetration). This is an area wherein B2C marketing can generate an
increase in the demand for the product, and in turn, an increase in demand from
Woolworth’s, and potentially extend supply to all its stores (goal of 100% penetration in
the span of five years).
Additionally, on the basis of the team’s research (qualitative and quantitative),
consumers stated that in order to increase the likelihood of kiwifruit purchase;
accessibility should not only be applied in terms of location, but also in terms of price.
Although the research study was conducted in the New Zealand context, similar to New
Zealand (if not more so), Australia has an influx of foreign immigrants. A shift in the
demographics creates opportunities for supermarkets like Woolworth’s and ensuring the
pricing is attractive to this portion of the demographic will ensure an increase in sales.
(S) Specific
(M) Measurable
Specific areas to focus on for the objective of increasing
accessibility:
• Increase the rate of penetration across Woolworth’s stores
(year 1 - 85%; year 3 – 90%; and year 5 – 95%)
•
Create an app (to be discussed under online presence) that
will provide the user the ability to search the nearest vendor of
kiwifruit based on their preferred store (implement year 1, and
assess whether it should be continued or discontinued for
years 3 and 5 depending on success and added value of the
app). Additionally, this could be integrated in Seeka’s online
channels wherein based on location, the customer can view
locations nearby, and even get notifications which locations are
offering kiwifruit at discount price
•
Provide discounts during season (March – June) in accordance
to supply and demand, targeting key demographics including
minority groups (implement year 1, and adjust accordingly
depending on success for year 3 and 5)
The rate of penetration can be tracked thru Woolworth’s with a
simple check with Woolworth’s on which stores sell Seeka
kiwifruit
•
•
The success and value of apps and online channels can be
tracked by use of analytics. Seeka can make use of Google
Analytics or other analytics tool available in the market to learn
about the number of “clicks” they receive, the number of likes
and interaction with customers on social media channels, and
finally, (with a link to the online channels of stores that carry
Seeka) whether these clicks result in online purchase through
stores like Woolworth’s (the data can be cross checked with
Woolworth’s)
•
The effect of discounts can be tracked by collecting data on
sales figures during discount periods and non-discount
periods. Even from a quick glance on the figures, Seeka
management can immediately analyze whether the uptick in
(A) Attainable
(R) Realistic
(T) Time
sales by offering discounts and targeting specific groups result
in a large increase in sales, or only a fractional increase in
sales
The specific and measurable components of the objective are
attainable as they are based on sound assumptions backed by
information from the research that the team conducted.
Additionally, since the proposal is relatively low cost (perhaps with
the exception of expanding the scope of coverage for
Woolworth’s), the team can justify to Seeka management the
value of implementing the objective
The objective is realistic as corporate objectives were heavily
considered in the formulation of the objective and the key
components of the objective. Additionally, no component of the
objective was proposed wherein the team does not have sufficient
information as to justify the value of the component
It is vital to set goals within a timeframe in order for the company
to ensure that they are realizable, and it allows the company to
assess, review, and adjust strategies on a periodic basis. For the
objective of increasing accessibility, the team is proposing for the
objective to be achieved in three stages or periods, year 1 (yearend 2015), year 3 (year-end 2018), and year 5 (year end 2020).
Online Presence
With a large number of customers and potential customers actively participating in
online interaction with companies through social media and other online channels
(websites, blogs, online stores), companies that are lagging in terms of online presence
will miss out on a lot of opportunities, particularly in understanding how to better serve
their customers thru consistent and continuous interaction.
Seeka is among this list of companies that can boost its online presence, and not just
through social media marketing, but through various channels that in essence will build
a strong online community that consistently interacts with the company. Although the
company has a website (primarily for B2B and investors), as well as, Facebook (for
employees and business partners), the company does not fully engage with the end
user, and shies away from online interaction with those who ultimately consumer their
products. This could be a decision made by management and leadership to focus on
B2B as their business ends with sales made to Woolworth’s and other channels for
selling their product, but in reality, companies that grow their relationships with their
customers in a community setting (whether online or offline) ultimately produces the best
results in terms of service and product provided.
(S) Specific
Specific areas to focus on for the objective of increasing online
presence and creating a strong online community:
• Seeka currently makes use of a company website (mostly for
investors and business partners, little content for customers) and
a Facebook page (most for employees, network of growers, and
also business partners). The company needs to optimize their
use of social media channels. Due to the limitation of not having
access to the analytics of Seeka’s social media channels, we
focus on the company’s engagement with the customers starting
with increase the number of relevant and “catchy” posts on the
company’s Facebook page to at least one (1) post a day, or
seven (7) a week to ensure that they continue to stay relevant
and connected to their customers and begin the process of
creating an “online community for Seeka”. Additionally, the
company needs to create more content on their webpage to
target end customers, from informative videos that encourages
customer interactivity, online games (similar to Seeka), to recipes
Additionally, as mentioned in the “increase accessibility”
objective, the company can begin to add features in its online
channels wherein customers can have the capability of viewing
all stores nearby in case they want to purchase kiwifruit, and also
have access to information regarding discount if offered at any of
the stores near them
Since the team is limited to accessing Seeka’s online channel
analytics, no assumptions can be made to suggest measurable
outcomes of the proposed objective. However, the team will suggest
to Seeka management to gather current data on hit rate (whether
customers are going on their online channels), whether customers
are directed to stores such as Woolworth’s that carry Seeka kiwifruit,
or potentially even other stores that may potentially carry Seeka
kiwifruit based on the teams proposal
The objective is highly attainable for the following reasons:
Cost – developing a strong online presence does not necessarily
have to be expensive, its not all about “bells and whistles”, as long
as the company is ensuring that their online channels have a
common look, is professional, and most importantly, continuously
engages the customers and listens to them thru these channels
Turn-around time – due to the fact that online channels exist for
Seeka already (website, Facebook), the company simply needs to
augment these. Some of the proposed items may take a longer time
such as videos, but generally, the other proposed components will
not have a long turn-around time
The objective is realistic as corporate objectives were heavily
considered in the formulation of the objective and the key
components of the objective. Additionally, no component of the
objective was proposed wherein the team does not have sufficient
information as to justify the value of the component
It is vital to set goals within a timeframe in order for the company to
ensure that they are realizable, and it allows the company to assess,
review, and adjust strategies on a periodic basis. For the objective of
•
(M) Measurable
(A) Attainable
(R) Realistic
(T) Time
increasing accessibility, the team is proposing for the objective to be
achieved in three stages or periods, year 1 (year-end 2015), year 3
(year-end 2018), and year 5 (year end 2020).
Brand Awareness
Based on research conducted by the team, we find that when it comes to fruit
(especially kiwifruit), customers are not aware of the brand of the kiwifruit that they
purchase. It may seem irrelevant to work on brand awareness for a product that is
viewed as a commodity, however, cases like Dole prove that fruit companies can create
brand recall and recognition if the brand is defined and communicated well thru the
proper channels to reach key audiences.
(S) Specific
Specific areas to focus on for the objective of increasing brand
awareness:
Awareness campaigns – Zespri is the predominant brand in terms of
kiwifruit coming from New Zealand, due to the fact that Zespri is a
monopsony that becomes the single entity for marketing kiwifruit
outside of Australasia. However, since one of Seeka’s key markets is
Australia, the company needs to strengthen its brand in Australia to
create a recall. The basis for this is Dole, wherein Dole not only
created a recognizable fruit brand in the US, but across the world,
and has become synonymous with pineapple, and now canned
goods. The following points are suggested to increase brand
awareness thru awareness campaigns
Viral marketing campaigns – majority of effective viral marketing
campaigns are viewed via video online (Youtube), Seeka can
engage the expertise of a creative team to execute a viral video that
will generate a buzz in the community
Activities and events – Seeka can hold events for its key markets
and targets in those markets, both for existing and emerging. One
market that we would like Seeka to target would be the increasing
immigrant population. Similar to New Zealand, Australia has a
growing immigrant population with increased purchase capacity. At
minimum, the company should be holding at least two (2) major
events on a semi-annual basis and activities at least once a month.
Activities can range from barbeques, partnering with big community
events, to school events
(M) Measurable
The goal of these is simple, for people to identify Seeka with kiwifruit,
and New Zealand, which even Zespri has not successfully achieved
in comparison to companies like dole
The measure of value for awareness campaigns, viral marketing
campaigns, and activities and events can be quantified by
accounting for the costs to engage in these campaigns/activities and
(A) Attainable
(R) Realistic
(T) Time
capturing thru market research whether customers learned about
Seeka thru any of these events. Additionally, any spike in sales after
an event/activity can be attributed to the effectiveness of the
campaign (considering all external factors are the same)
Similar to the objective of increasing online presence, the cost of
these suggested points towards the objective of increasing brand
awareness depends on variables such as scope of each
campaign/event/activity. Seeka should always consider the value of
each campaign/event/activity and analyze whether the returns will
outweigh the costs to contribute to the increase in margins. If the
cost is justifiable, an does not begin to eat away on Seeka’s margins,
then it is highly attainable, especially if the company can reach a
level of brand recognition similar to Dole
The objective of increasing brand awareness is only realistic if the
company will buy in, invest, and continue to protect and grow the
brand image. The company has largely focused on B2B wherein
brand is not as important compared to reputation and ability to
deliver. If Seeka can see the value of shifting some focus on B2C,
then it is easy to realize the importance of brand awareness
It is vital to set goals within a timeframe in order for the company to
ensure that they are realizable, and it allows the company to assess,
review, and adjust strategies on a periodic basis. For the objective of
increasing accessibility, the team is proposing for the objective to be
achieved in three stages or periods, year 1 (year-end 2015), year 3
(year-end 2018), and year 5 (year end 2020).
V. STRATEGY FORMULATION
As previously mentioned in the “Objectives” section, corporate objectives were key
considerations in the formulation of the marketing strategy. But equally important in
formulating the marketing strategy is to understand the answers to the following
questions:
•
•
What are the company’s competitive strategy options (look at the market
competitiveness and the company’s business position)?
Does the company have sustainable competitive advantage?
A. Competitive strategy options
MARKET
ATTRACTIVENESS
High
Medium
Grow
Build
Low
High
Reinforce
Maintain
Medium
Divest
Low
BUSINESS POSITION
What is the market attractiveness for the kiwifruit industry?
• Estimated to be a $1.5 billion industry (NZ Herald, 2014). According to the Situation
and Outlook for Primary Industries (SOPI) 2014 report from the Ministry of Primary
Industries, the total export revenue of kiwifruit as of March 2014 amounted to NZD
818 million accounting for 22.3% of the total horticultural export.
• Export volumes estimated to return to pre-PsaV volumes for 2015
• Largely export based, and the current changes in the global market has prompted
the creation of the Kiwifruit Industry Strategy Project (KISP) (NZ Herald, 2014)
What is the business position of Seeka?
• As of December 2013, total revenue for Seeka amounted to NZD 97.3 million (Seeka
2014 Annual Report), about 11% of the total export revenue amount posted on SOPI
in their 2014 report
• Given this, we can deduce that one (1) out of 10 kiwifruit exported to the top
consuming countries are from Seeka
v Seeka’s position based on high “market attractiveness” and strong “business
position” is to “grow” its business
B. Sustainable competitive advantage (SCA)
Sources of advantage
Superior skills
Seeka growers have the
highest compensation in the
industry (New Zealand),
therefore they continuously
provide quality output and
reach their target number of
fruits per year despite
challenges
Positional advantage
Lower relative costs
In line with superior
resources, due to the
heightened use of
technology for certain
processes, Seeka has done
away with costs caused by
manual labor (often time
redundant functions that
could be taken
over/automated using a
machine). Costs for labor
are not only lowered, but
also cost on maintaining
quality, as errors as
lessened (generally)
Performance outcomes
Market share and
profitability
Although no specific figure
has been compiled due to
limitations on the profits of
other kiwifruit companies in
New Zealand. But based on
the business position of
Seeka provided above, one
(1) out of 10 kiwifruit
exported comes from
Seeka, which puts the
company in a considerable
position in terms of market
share (also considering the
number of kiwifruit
companies in NZ totaling
15+ for the major
companies)
Superior resources
• Land, Seeka owns and
leases (long-term) a
total of 800 hectares for
its orcharding business
• Seeka ensures that key
technology is used
throughout the process
(from inspection using
machines for quality
testing, to delivery, with
Radio Frequency
Identification, or RFID,
to ensure timely delivery
and also quality check)
Investment of profits to sustain competitive advantage
Our team’s suggestions for investments of profits are based on what is realistic and
actionable for Seeka, considering firstly value, the cost(s) of implementing, and finally
turn around time
• Continue to provide growers with good rates for their harvest (continue to
communicate this to customers as customers are increasingly concerned about fair
market and the conditions under which their goods are produced/manufacture
• Continue making use of crucial technology to deliver quality products at faster supply
timeframe (farm to market). Only adapt new technologies if it adds value to
operations and if it is justifiable. Additionally, communicate these technologies to
customers as some may be interested
• Driving down costs are key not only to increase the value of shares, but more
importantly, this has a direct correlation to maintaining the price of kiwifruit to
affordable rates, continuous investments in technologies that over time will drive
costs down while maintaining quality can only have a favorable result to consumers.
Driving down costs can additionally result in discounts (pricing strategy) as well.
VI. MARKETING MIX
4 P’s
Product
(and/or
service)
Place
(distribution)
Current Strategies
Product line width
Shallow, only green, gold, and
organic (three products)
Brand leveraging
To those who are familiar with the
kiwifruit industry, Seeka is a
reputable company and brand.
However, beyond this, the company
has limited brand recognition (based
on the team G77’s research). With a
strong grower community in New
Zealand, Seeka needs to begin
leveraging its name, not just in a
B2B context, but also in a B2C
(consumer) context and begin
building its “brand community”
Opportunistic development and
offensive strategy
Similar to New Zealand, Australia
has a growing immigrant population
with an increase spend capacity as
they are coming in to the country as
skills laborers. Based on our team’s
research, this segment is partial to
the sweeter flavor of kiwifruit
(opportunity to supply the gold
variety)
Distribution environment
The biggest factor in the distribution
environment that has drastically
changed the efficiency of the
movement of goods is technology.
Like other fruit companies, Seeka
makes use of Radio Frequency
Identification (RFID), which allows
the company to track where the
products are moving at any point of
the delivery route. Additionally,
different RFID’s are assigned to
batches, and if there is a need to
recall a batch due to contamination
Proposed Strategies
Product line depth
Seeka has no product line depth.
Although the proposal below is not
actionable based on the
“attainable”, “realistic” and “timely”
measures, they are points that
Seeka management should
consider beyond the 5-year scope:
Based on field research performed
by the team we found out that the
product is sold either individually
or pre-package (usually six pieces
per box). One possibility that
Seeka can explore is to sell
kiwifruit canned, bringing two (2)
advantages to the firm: (1) the
product will have a longer shelf life
(can be sold throughout the entire
year); (2) display of the brand
would be more apparent
Another additional product related
to kiwifruit that Seeka can explore
is kiwifruit juice (either used for
drinking or as a mix to a marinate,
cocktails, etc.)
Distribution structure
According to the HEA, NZ, Asia a
primary market for kiwifruit
companies including Seeka.
Seeka already has a good position
in Taiwan and Malaysia (no
specific figure on market share,
basis is simple market
attractiveness against Seeka
export volumes) and global giant
China is fast becoming one of the
top consumers of Kiwifruit, which
means increase in demand which
may not be met by existing supply.
or some other reason, the company
can pinpoint the specific batch that
needs to be returned, therefore
resulting in limiting the losses to a
small portion of the goods produced.
Companies range in their decision
to outsource or retain their supply
chain management operations to a
third party. Seeka for example has
decided to create a separate
business to manage the supply
chain for all of its products (kiwifruit,
avocado, and kiwi berry).
Distribution structure
Due to the fact that Seeka has
chosen to develop different
business to complement its supply
chain (including its own supply chain
management company), there are
fewer intermediary levels for Seeka
to deal with and the company can
deal directly with the client (B2B, i.e.
Woolworth’s). This allows Seeka to
realize a higher margin since they
are not obligated to pay for the
service of a third party provider for
managing their supply chain, and
additionally, the company can justify
and sustain having their own supply
chain business due to the scale of
Seeka’s operations
Control of the channel / strategic
alliances
One key factor that could be
explored for Seeka is the company’s
relationship with its key business
clients like Woolworth’s. Currently,
Woolworth’s engages multiple
suppliers for kiwifruit to ensure that
supply will be consistent. This is a
good measure for Woolworth’s but it
hurts Seeka as a brand as Seeka is
not able to market its product under
the Seeka label
A key distribution strategy for
Seeka is to analyze the value and
opportunities of entering the
Chinese market, as it is not too far
from two (2) out of three (3) of its
key markets, being Taiwan and
Malaysia
Additionally, Woolworths in
Australia is a major supplier of
Seeka kiwifruit. In line with the
company’s corporate objective to
mitigate risks, the Seeka needs to
increase its scope of supply to
other key supermarkets (also
touches on the marketing objective
of increase accessibility)
External factors
Due to a large focus on international
markets (Australia, Taiwan, and
Malaysia being key targets for
Seeka and ranking among the top
10 kiwifruit importing countries),
exchange rates, tarrifs, and shipping
costs largely affect how kiwifruit is
priced. Taiwan for example imposes
a 20% tariff on kiwifruits, and in
2012 had an estimated value of
USD 14 million in tarrifs from
kiwifruit from all suppliers, not solely
Seeka (HEA, 2012)
Price
Internal factors
As previously mentioned in the
sustainable competitive advantage
(SCA), the ability of Seeka to lower
internal costs has direct effects on
the pricing of the product. To
reiterate, the internal points affecting
price are as follows:
• Automation lowers labor costs
and generally increase quality
control
• Paying premium rates to growers
ensures that production is
maintained at a certain level
ensuring consistent supply.
Providing sufficient, or at times,
excess supply help drive down
the prices of kiwifruit to an extent
• Additionally, as noted in the first
report on situational analysis,
proper decision making such as
the decision of Seeka to withhold
paying out dividends to
shareholders when the PsaV hit
ensured that the company had
the ability to address risks, such
as further spread of PsaV, which
affected supply and ensured that
it did not dip dramatically, which
would have caused a spike in
kiwifruit prices due to shortage of
External factors
Asia has long been and continues
to be a key factor in the kiwifruit
industry. In addition to Seeka’s
Taiwan and Malaysia markets in
Asia, China is additionally
becoming one of the key importers
of kiwifruit. Just as it is a
distribution strategy, it is also a
pricing strategy to enter the
Chinese market, offering kiwifruit
under a different pricing strategy.
Based on the quality of fruit
harvested in New Zealand, with
the appropriate grading, those that
meet the standards but are not of
the highest quality can be supplied
to Chinese consumers at a fraction
of the sale price
Additionally, with the good
business relationship that Seeka
has with Woolworths, it is worth
exploring the opportunity that
Seeka will have exclusive
distribution to X% of Woolworth’s
total stores. This will allow Seeka
to explore in partnership with
Woolworths different pricing
strategies such as discounts,
bundling, and sales promotions
such as buy X amount of kiwifruit
(pieces, kilogram) and collect
stickers that can be used
exchange for a gift. Another idea
would be with every purchase of a
box or kilogram of kiwifruit,
customers will be able to earn
points on the Seeka app and use
the points to purchase items to
help the customer level up playing
the Seeka game app – in line with
“increasing online presence and
brand awareness”, but more
importantly, builds on Seeka’s
online (and offline) community
supply, or importation of kiwifruit
to meet demand
Message creation
Seeka does not currently have a
message that is identifiable to the
end consumer. It can be surmised
that in a B2B context, Seeka would
likely communicate to companies
like Woolworth’s the following:
(1) That it is a reliable company, due
to it 800 hectares of kiwifruit
producing land which ensures
supply; (2) it is a safe company as it
adheres to the law, particularly labor
practices, by ensuring that its
growers are paid a premium; (3) it is
a highly capable company that has
acquired other companies to further
extend its capabilities (end-to-end
capabilities from orcharding,
harvesting, to moving of goods).
Promotion
Unfortunately, B2B communication
is different from B2C, wherein
Seeka is largely lacking
Selected channels
Seeka has ruled out heavy use of
media to promote its products. The
company has chosen online as its
key platform, albeit has not greatly
invested in the platform to boost
awareness, and customer
connections thru online channels
(as previously stated in the
“increase online presence”
objective).
The brick and mortar stores that
carry kiwifruit is also a promotional
channel, to the trucks and airfreight
used to move kiwifruit to its
customers.
Creative platform / sales
promotion
Limited creativity has been shown
Message creation
Seeka can work on its message
creation in the B2C context by
conducting the following:
• Additional market research to
find out what features and
benefits resonate with key
segments (female, increasing
minority groups in Australia)
• Testing of revised messaging,
re-evaluate at specific
deadline, and make decisions
upon re-evaluation whether to
continue, discontinue, tweak,
etc.
Selected channels (including
tools and materials)
The following process can aid
Seeka in its efforts to increase its
promotions in a B2C context:
- Examine the success each
promotional channel provides,
identify which to continue and
which to discontinue. If an
emerging promotional channel
is appealing to Seeka, they can
test it to see its value and
assess again at some point
later
- Simultaneous with the
promotional channels, examine
current tools and materials
used in conducting promotions
Creative platform / sales
promotion
As suggested in the brand
awareness objective, events and
activities wherein prizes are given
away are measures by which
promotion can be conducted
creatively using a platform rarely
used by Seeka to connect with
by Seeka, evidenced by its lack of
using creative platforms as a
measure of reaching out to end
customers. Additionally, not enough
is conducted in terms of sales
promotion (refer to “brand
awareness objective) resulting in
poor brand awareness for Seeka in
the B2C context
customers. If SeekaFresh
(Seeka’s marketing arm) can
engage customers in a creative
manner thru events and activities
and make them memorable, as
well as, support the cost with the
return on the investment, then it is
not impossible for customers to
expect an annual or semi-annual
event, or various activities
throughout the year held by Seeka
for its community, and expect
these platforms to remain for years
to come
VII. CONCLUSION AND RECOMMENDATIONS
A. Conclusion
Make sure that marketing objectives and strategies are in line with corporate objectives.
Kiwifruit market and Seeka’s business position
• Highly attractive market, estimated $1.5 billion industry
• Increase in demand in the Asian region (including two of Seeka’s key markets,
Taiwan and Malaysia)
• Strong business position for Seeka, which is estimated to export 1/10 of the total
kiwifruits exported from New Zealand
• Additionally, the company’s sustainable competitive advantage: technology,
resources, people, leadership and management, ensures that Seeka remains in a
strong position to not only stay competitive but stay ahead of the competition
Current strategies
• Focus on business-to-business marketing (B2B)
• Leveraging businesses under Seeka including the Verified Lab Systems (VLS) for
risk mitigation and quality assurance, and its supply chain management business to
execute its distribution strategy
• Existing online presence but limited relationship building using online channels to
connect with customers
B. Recommendations
Marketing objectives
• Increase accessibility thru location and price. Make sure that more stores carry
kiwifruit to increase scope of access. Also create connectivity with customers so they
can access locations using popular online channels (social media)
• Ensure that pricing fits target segments (discounts targeted at growing minority
groups)
• Augment and enhance online channels to connect better with customers
• Engage in awareness campaigns to promote the brand. In line with increase online
presence, team G77 suggests that Seeka make use of online channels to tap the
online community that they will build
Proposed strategies
• Product – not actionable within a five-year time frame, and perhaps not completely in
line with corporate objectives, but other product lines could be explored in the future
(dried kiwifruit, canned kiwifruit, kiwifruit juice)
• Price – discounts and sales promotions target to key segments
• Place – growing demand in the Asian market, as well as key stores in Australia
(Woolworths)
• Promotion – online promotions, campaigns, events and activities
VIII. REFERENCES
1. Porter, David. New Zealand Herald. (Feb 2014). Kiwifruit Industry Set for Growth.
Retrieved from http://www.nzherald.co.nz/bay-of-plentytimes/news/article.cfm?c_id=1503343&objectid=11203065
2 – 3. Seeka Kiwifruit Industries Limited. (2013). Annual Report. Te Puke, New Zealand.
Retrieved from http://www.seeka.co.nz/vdb/document/25
4 - 5. Porter, David. New Zealand Herald. (Feb 2014). Kiwifruit Industry Set for Growth.
Retrieved from http://www.nzherald.co.nz/bay-of-plentytimes/news/article.cfm?c_id=1503343&objectid=11203065
6. HEA. (2012). KiwiFruit. Retrieved from http://www.hea.co.nz/index.php/2012-05-1103-05-28/kiwifruit-trade