Zaa Enterprises Case Analysis

*ZAA ENTERPRISES

(Going International)

ZAA Enterprises is a manufacturer of deodorant/anti-perspirant, feminine wash, foot spray, shampoo, hypo-allergenic soap, herbal soap, germicidal soap and astringent/ facial lotion. All these products are marketed in the Philippines under the brand name Nature’s Touch.

The choice of the brand name was inspired by the fact that most of the company’s products are made with ingredients derived from natural materials. The materials include alum, a mineral derived from the soil; gugo, scientifically known as Entada Phaseoloides that contains sapon, a powerful hair cleansing agent; aloe vera, extracts from papaya, cucumber, avocado, radish and pineapple. It is for this reason that Nature’s Touch products are marketed as “the superior alternatives to synthetic cosmetics.”

Nature’s Touch products, mainly deodorant/astringent, soap and shampoo, have recently found their way to foreign markets without any concerted, official marketing effort by the company. They have been exported to Saudi Arabia, Hawaii, Guam, Dubai, U.S.A., Canada, Singapore, Malaysia, Brunei, Thailand, and South Korea.

ZAA president, Dr. Zosimo A. Acha, a medical physician-surgeon, said foreign markets learned about his company’s products through Filipinos who carried Nature’s Touch items when they traveled abroad. Foreign buyers who visited the Philippines learned about the products through print ads. Others would walk into ZAA office after they had bought ZAA products from the local supermarkets. The doctor-entrepreneur said ZAA had participated in only three international fairs, one held in Manila in 2003 and two held in Hongkong in 2002 and 2003. Brochures and other product literature were all that ZAA gave to importers as promotional materials.

Export sales of the company have been increasing