Chiquita Brands International. Inc. is one of the most of import international sellers and distributers of nutrient merchandises derived from bananas. every bit good as other fruits and healthy bite merchandises. Chiquita Banana grosss for about $ 3 billion dollars a twelvemonth and employs more than 21.
000 people and operates in approximately 70 states worldwide. Chiquita Banana together with Dole. Del Monte and Fyffes control about 80 % of the planetary banana market. In 1993 the EU created the Common Organization of the Market in Bananas ( COMB ) to cover with the rough competition between these companies. They would let responsibility free entree to the EU but capable to quotas to bananas from the Africa’s.
Caribbean and Pacific. while bananas from Latin America were capable to an import revenue enhancement of 176 Euros per ton and a quota of 2533 t. As an American company we have decided to take advantage of the new pact curtailing Latin American and ACP states from exporting bananas to the EU. It will non be an easy undertaking because we still have to vie against European banana manufacturers.
but we are an established company and we are determined to profit from this event and addition market portion in the European Union. PESTEL analysis for the European UnionPOLITICAL:•The European Union is composed of 28 member provinces. •The EU has created a individual market by standardising Torahs within the member provinces. •Some of the aims of making this brotherhood is to make a better flow on the circulation of goods.
capital. people and services within the brotherhood. Once a good or service is accepted within the brotherhood it is protected from imposts. revenue enhancements and import quotas every bit long as they remain within the brotherhood.
•Free motion of capital is intended to let investing of belongingss between states. something that could assist banana agriculturists since they can look for more fertile land in neighbouring states. •The pecuniary policy is the Eurozone and is governed by the European Central Bank. ECONOMIC:•The European Union’s GDP is ranked as figure one in the universe accounting for $ 16.
58 trillion dollars. •Export goods account for $ 1. 687 trillion. some of the chief export spouses of the European brotherhood are: oUS 17. 3 %China 8. 5 %Switzerland 7.
9 %Russia 7. 3 %Turkey 4. 5 %•Food. drinks and baccy history for 5. 9 %•Import of goods account for $ 2.
302 trillion dollars and the chief import spouses are:China 16. 2 %Russia 11. 9 %US 11. 5 %Switzerland 5. 8 %Norway 5.
6 %•Food. drinks and baccy history for 5. 2 % of import goods. •The service sector is the most of import one in the EU doing up 69 % of the GDP followed by the fabrication industry with 28. 4 % GDP and agribusiness for merely 2. 3 % of GDP•The agricultural sector is supported by subsidies from the EU and presently represents 40-50 % of the EU’s entire disbursement.
Sociocultural Factors:•There is limited informations on European children’s fruit consumption. but the information shows that the mean fruit consumption is about 141 g per twenty-four hours. Fruit consumption is highest in Austria and Portugal and is the lowest in Iceland and Spain. •Girls and adult females consume more fruits and veggies and male childs and work forces do. there is no simple account to this but it’s believed to be because adult females in general are more concerned about their weight and maintaining a slender fit figure. •Children tend to eat less fruit as they age.
but it’s the exact opposite with grownups. Intake degrees addition with age. perchance because income and cognition additions and one becomes more cognizant of the benefits of good feeding wonts. •Men once they are married have an addition in fruit consumption. Women seem to hold an impact on their husband’s fruit consumption every bit good as the assortment of fruits eaten.
Womans tend to manage ‘health-related’ issues more normally than work forces so they tend to purchase and cook more nutrient than work forces. •Children’s fruit consumption degrees straight correlate with how much their parents devour. But force per unit area to eat fruit does non positively affect children’s intake. but it is enhanced when parents are good role-models and promote them to eat fruits and veggies.
•People with self-efficacy inclinations have a higher fruit consumption in grownups. besides people with a high self-esteem tend to eat more fruits and veggies because they take their wellness into history. TECHNOLOGICAL:•The EU is funding a undertaking for pesticide free fruits and veggies by taking the menace of fruit flies. Helping husbandmans meet customers’ demands for safe fruits while being environmentally witting.
oThe undertaking make-believe to utilize an insect attractant to pull insects and pathogens such as: infective microorganisms. virus. fungus that cause diseases in fungus. oThis attractant will be applied in the signifier of an insect trap near plantations to take bugs off from plantations.
this will be a durable and biodegradable baiting station. •Europe is going more witting about keeping a cleansing agent environment. the EU is committed to supplying a better hereafter for the following coevalss. So they specialize on clean energy. from turbines in Germany to solar panels in Spain.
and states across the EU are utilizing natural resources of sustainable energy conveying investing to concerns and citizens. LEGAL:•With the birth of the Single European Market in 1993 the Common Market Organization for Bananas was put into consequence ( COMB ) . COMB is concerned on the importing. sale and distribution of bananas. •A policy was set in gesture leting EU providers to export responsibility free bananas to all EU provinces. Besides quotas were set for African.
Caribbean and Pacific states ( ACP ) enforcing import licences for a fixed rate of volume of bananas. and limited imports through overly high duties. oA quota of 857. 000 dozenss for responsibility free entree from ACP states •Three types of licences were issued in order to modulate this quota to ACP states •Third states that were non considered in the quota are capable to a duty of Ecu 850 per ton.
•In order to forestall any loss of income by EU banana manufacturers a compensation of payments for 850. 000 dozenss were granted in instance the monetary values fell below the production costs. ENVIRONMENTAL:•Flat-free H2O coursers are common in some states in Europe. This does non promote efficient behaviour to families and agribusiness harmonizing to a study from the European Environment Agency ( EEA ) . •The EEA is sing H2O pricing in the undermentioned states: Croatia.
England and Waless. France. Germany. Netherlands. Scotland.
Serbia. Slovenia and Spain. •In most states. husbandmans are allowed to utilize as much H2O as they want for a level rate.
By bear downing the sum of H2O used in Europe it prognosticated to cut down on H2O used by agribusiness for about 10 – 20 % . This will force husbandmans to non merely cut down on their H2O ingestion but to put on better irrigation system every bit good as repairing H2O leaks. •The general population in the European Union seem to back up this gesture to cut down H2O overexploitation. about 84 % of the population agree with this rule. Marketing MixIn order to better perforate the European market we have to better understand our ain merchandises.
so a selling mix was created to see what we can offer to the market and this will assist us to better supervise our operations in the European market. Merchandise:Chiquita banana takes pride in their first category bananas. But banana ingestion vary from state to state so they have other merchandises to carry through the alteration in each states demand. They ever keep in head the environment and consumer’s wellness.
so they have merchandises that meet these two makings. merchandises such as: readymade salads. fruit bites. An independent study was conducted about people’s penchants and attitudes about bananas. and the canvass indicated that the gustatory sensation of Chiquita bananas was better than viing trade names and people preferred it 2 to 1 to the taking trade name.
The bananas by Chiquita banana are 100 % organic approved and certified by the USDA which means that they adhere to the demands and run into the organic criterions of turning bananas. Monetary value:These are the monetary values for bananas per metric ton for the last few months. Bananas monetary values vary depending on the location where they are being sold. In France the mean monetary value for a kilogram is about $ 2. 00 dollars.
In Spain is about $ 1. 00 per kilogram. But these monetary values tend to fluctuate with the seasons as good. and some variables take topographic point to why this happens. One of the grounds is that bananas grow in tropical countries so they need hot conditions to turn.
but it’s harder to keep them fresh during summer. Topographic point:Chiquita banana sells its merchandises internationally to about 70 states worldwide. The bulk of the merchandises grown come from South America and the Caribbean which are so sent to distribution centres. Europe is the largest consumer and importer of bananas in the universe.
so this would be the best topographic point for the largest banana manufacturer in the universe to put and tap into this gold mine. In the twelvemonth 2011 people populating in the European Union consumed an estimation of 5 million dozenss of bananas and about 4. 6 million dozenss were imported. Europe would be the best market to seek to perforate and take market portion from. Sweden.
UK. Denmark. Finland and Portugal are the chief consumers of bananas in Europe ( see Appendix A ) . These are the states within the EU for Chiquita banana to perforate foremost.
Promotion:The manner that Chiquita banana promotes their merchandise is really advanced. They have sticker competitions and they encourage people to direct drawings for possible Son for their spines. But their latest publicity is backing the magnetic minion characters from the film Despicable Me. they have even worked on an app game available for apple and droid.
The point of this game is to run and acquire as many bananas as possible without running into any obstructions. There is no record for the addition in gross revenues of Chiquita bananas yet because the game is recent. but it’s safe to state that this gamification scheme will work good for the company. Besides.
as a portion of their publicity they attend school tiffins. observe major day of remembrances and patron Olympics. They use the slogan “quite perchance. The World’s Perfect Food” SWOT AnalysisStrength:•Chiquita Banana is figure one in the fruit market in the universe and sells its merchandises to more than 70 states worldwide. •The company had a $ 3 billion dollar gross last twelvemonth.
•Its net income is about $ 405 million dollars. •The company is committed to being socially responsibleA decennary ago they implemented societal answerability 8000 which has helped better their patterns to better function the community. “SA 8000 provides criterions based on national Torahs. international human rights norms and the conventions of the International Labor Organization. Management system demands guarantee that these criterions are systematically implemented over clip.
and independent audits and enfranchisement aid step advancement and place countries for betterment. ”Failings:•The company has non been able to make out to consumers in Europe. they had a $ 2 million net income during the last one-fourth. better compared to the prevues twelvemonth where there was an $ 11 million loss.
•Sales fell 2 % from $ 793 million to $ 774 million in one twelvemonth. •There was an 18 an article was published of ‘Chiquita secrets revealed’ by the inquirer. where the company had been accused of maltreating workers in Central America. fouling the environment and leting cocaine to be brought to the US in its ships. Opportunities:•With the new ordinances from 1993 the European market has opened for banana companies that do non belong to the ACP states and Latin America.
•Our chances go manus in manus with the highest consumers of bananas in the EU. Harmonizing to appendix A. they are: oSwedenUnited kingdomDanmarkSuomiPortuguese republic•These are the first states that we must seek to concentrate our internationalisation attempts into. since they are the highest consumers of our merchandise. •Even with the new ordinances by COMB Chiquita banana has no existent competition from European banana agriculturists. European states are non optimum for banana growing.
Chiquita banana can convey larger measures at viing monetary values. Menace:•Some of the menaces come from viing companies like: Dole. Del Monte and Fyffes. •The analysis of this figure shows Chiquita’s market portion shriveling from 1966 to 1995 and so staying invariable at 25 % market portion. •We can besides detect that for the twelvemonth 2007 Dole Company had a bigger market portion thanChiquita. •Chiquita has to be attentive of the bing viing trade names but besides the new incoming trade names that are stealing market portion from the company.
Internationalization Strategy and ViabilityAs already stated before. the European Market is the biggest consumer and importer of bananas. Which is why we are interested in making an internationalisation scheme in order to visualise which metropoliss in the European market mark more specifically. There is a map in appendix A portraying the European Countries and an estimation of banana ingestion.
we can see that the northern states together with Portugal enjoy eating bananas the most. Then we can see a superior list with the states that consume the most bananas in Europe. with Sweden being on top of the list. Chiquita banana Co.
gets their merchandise from the states with a xanthous point. Since these are states that have hot and humid temperature. adequate for banana growing. This map shows us that that in order for the bananas to be shipped from this states to the EU they have to be shipped in a boat that has to go the Atlantic for approximately 6. 000 stat mis. These bananas are stored and refrigerated.
This crossing of the Atlantic takes an norm of 5 yearss and the bananas are refrigerated to a temperature between 13. 5 and 15 C procrastinating maturation. Even though spirit and consistence remain virtually integral. this ocean trip shortens the shelf life to be 7-10 yearss.
Portugal would be a strategic point for the company’s internationalisation scheme. A logistics platform could be set up in Porto. a northern metropolis in Portugal. this manner we can kill two birds with one stone. We re-fuel the ships and acquire them cook for their journey to Sweden ( our top precedence in footings of distribution ) and unload some containers to administer Portugal’s banana demand. Aside from Portugal the states with the highest ingestion of bananas per capita is in Northern Europe.
so another logistic platform would be convenient as a concluding halt before the concluding finish in each state. Le Havre. France would be a convenient location since it is south of the UK and it is cheaper to hold a distribution centre at that place because the euro is non every bit strong as the sterling lb. Once we have our logistics platform set up in Le Havre we can do adjustments and understandings with companies and retail merchants that handle fruits and veggies belonging to the states that have the highest banana ingestion. We would present to the undermentioned terminus or ports:•Gothenburg.
Sweden•Brighton. United kingdom•Skagen. Denmark•Finland is a little more unaccessible through the Baltic Sea. so we would transport Finland’s required bananas to Gothenburg. Sweden every bit good. From Sweden we could work another logistic path to acquire to Finland by truck.
•Porto. Portugal•Le Havre. FranceOpportunity:Iceland is Europe’s top manufacturer of bananas with their universe of the art nursery installings. even though they rely on their engineering they have to invariably supervise their merchandises and make the proper environment for the bananas. This is where Chiquita banana has an chance since they don’t have to worry about making the right conditions for banana growing. the company looks for a convenient location for banana growing and workss the fruit.
This enables the company to worry entirely on cropping and transportation. Another advantage that the company has over the biggest European banana manufacturer is that. Chiquita banana can get bananas in monolithic measures while Iceland’s manufacturers have to make the environment to turn more bananas. This is unless the COMB sets a tighter quota. IncotermAn incoterm is a made up word composed of three words.
‘in’ means international. ‘co’ commercialism and ‘term’ agencies term. Incoterms are used to depict the type of relationship between purchaser and provider and they type of contract they use to present and have a merchandise. POSSIBLE INCOTERMS FOR THE COMPANYAs a marketer the most optimum incoterm for the company would be to hold with the purchaser of working with ‘Ex Works’ since the purchaser would hold to presume the transit costs and the hazards of brining the goods to their shops. I believe this to be really one sided and non efficient.
since in order to maximise net incomes a concern trade has to be long-run. Sooner or subsequently one of the viing trade names could offer our purchasers a better understanding and we would be out of concern. so I would name this a ‘lose-lose situation’ . Another option would be the exact antonym from ‘Ex works’ where the marketer mantains most of the duties and disbursals while there is minimal for the buyere. This would be a DDP.
here the “seller is responsible for presenting the goods to the named topographic point in the state of the purchaser. and pas all costs in conveying the goods to the finish including import responsibilities and revenue enhancements. Seller is non responsible for droping. ” this is besides really one sided. My belief is that if we are traveling to hold a long lasting relationship with our concern spouse we have to compromise.
and here we would be taking all most of the bourden of the concern trade. SolutionAs already stated earlier. in order to make a long lasting relationship with our concern spouses and maximise net incomes we have to compromize. Chiquita Banana is seeking to derive marketshare in Europe. so the best thing we can make with our concern spouses is to portion the transit load and costs.
Deliverd at Terminal ( DAT ) incoterm would be the best feasible solution for Chiquita and our purchasers. We can assure to present the merchandise fresh. safe and sound to the undermentioned metropolis ports: Gothenburg. Brighton. Skagen. Porto and Le Havre.
We can accept all costs and hazards ( except for import clearance costs ) and from each terminus they can direct the bananas to their several distribution centres or straight to the retail merchants. That is up to our concern spouses to make up one’s mind. It is safe to state that we are taking most of the costs. since it is expensive to traverse the Atlantic with ships and keep the fruit at a certain temperature to maintain it fresh.
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