Zespri Case

ZESPRI

1. For whom does Zespri create value?

Educating the customers with nutritious fruit and selling and gaining considerable market share in kiwifruit market, the ultimate goal is targeted to enhance growers with premium priced high quality of brand.

2. Why does the Zespri model work?

In 1993, the kiwifruit growers have witnessed the huge bankruptcy while receiving $3.85 per each prey, resulted them to find another source of income for survival, so there is in need to function Zespri model.

Growers were carrying all the risks however the suppliers are price takers. In case, it was urgent to minimize risks for growers.

3. What does Zespri have to do well to succeed and for the model to endure?

Close cooperation with local distributers and strong retail relationship for the mutual benefits will give some fruitful outcome for Zespri. Therefore following keys could have some impact on the enduring strategy:

• Awareness of scientists to search for new cultivars and the excellent cooperative relationships with China that allowed the introduction of seed material to NZ;

• Skilled scientists who chose the best parent plants for the original cross, and then the ability to select potential market winners;

• Early sensory evaluation using panelists from potential market countries identified the importance of its characteristic sweet taste and yellow flesh color.

• Recognition of its potential by industry and emergence of a marketing champion;

• Major R&D effort by ZESPRI with industry specialists assist growers develop and modify growing, postharvest handling and storage systems;

• Major marketing