Healthy food and supplement industry has a broad customer base and a great growth potential across the globe.

Ageing of population and interest in healthy food are two primary factors that lead to robust and continuous growth in healthy food and supplement industry. According to Mellentin1, the largest ethnic group in the world-Asian, will have over 40% population reach the age of 50 and beyond by 2030. Moreover, 20% of Shanhai residents have already reached the age of 60. Similarly, in Europe, 20% percent people have crossed their 65 and the average age is around 41.By the year of 2030, the percentage of people live in Europe to reach 65 and beyond will be more than 41%. Furthermore, in USA, all Baby Boomers are expecting to reach 50 and beyond by the year of 2015. The aging of population leads to a nature consequence that manifests in continuously growing interest in healthy foods and supplements products. The so called ‘superfoods’ have drawn a great deal of interest from consumers and medias.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

Blueberries, tomatoes, yoghurt and omega3 have lead the list of healthy foods, particularly broccoli is considered as one of the best healthy foods due to its rich nutrition and antioxidant effect.However, one of the most effective anti-bacteria and anti-infection nature food-honey is rather have a smaller public exposure for its health benefits in comparison with others. Although plenty of honey related products are available, those brands can be credited for its purity, effectiveness and genuineness are sparse. Comvita’s Background Comvita is found in 1974 by Claude Stafford and Alan Bougen, it is a high quality healthcare product and life sciences company. Comvita Limited is engaged in the manufacture and marketing of natural health products.It is one of New Zealand’s leader exporting companies with the ambition of ‘natural performance’. It provides functional food, health care, personal care and medical products to its customers. The company’s product offerings include bee pollen, apple cider vinegar, antioxidants, colostrum, herbal extracts, manuka honey, olive leaf complex, nutritional oil, royal jelly, skincare, broccoli extract, propolis, winter wellness, and medihoney wound care products.

Goods are processed topically in the purpose of built manufacturing facilities and distributed globally respectively.Comvita is operates through its subsidiaries in New Zealand, Asia, Australia, North America, the UK, and Rest of Europe. The company is headquartered in Te Puke, New Zealand.

Business model Revenue Sources The direct retail business model is the key driver of growth of Comvita. The company revenue stream is based on multiple streams with a volume or unit based revenue model. In Asia it uses a direct selling model, incorporating dedicated Comvita branded stores as well as store in store concepts which drives a successful and profitable business model.

Cost DriversA cost driver is any activity that incurs cost and contributes to the total costs. It is vital for Comvita to understand its cost drivers. The key to any business is to reduce and keep costs at minimum in order to peruse efficient high profit margins. Comvita’s purpose is use the power of pure nature healthcare product to keep people well every day.

Its vision is to be the best natural health and beauty company with selling top grade quality, 100% pure natural products worldwide. The company’s main cost drivers are semi-variable costs regardless of sales volume.Consumers are always eager to try new things with high quality, so the product research and development are the main costs; as it is an international company, store expand is another cost; in order to compete with their rivals adverting is also a main cost.

Critical Success Factors Comvita requires managers and staff that are knowledgeable; this can be achieved by setting up an Advisory Board to promote a knowledge base. The scientific research and technology by Comvita requires precise implementation of assure high success rate to ensure complete customer satisfaction and they can stay in front of potential competition.This is the diagram for retail business model SWOT Strength * Manuka honey is well-known for its antibacterial properties. It is the only manufacturer of medical honey in the world. Global licensing deal for Medihoney™ professional medical products * Comvita is committed to the UMF™ trademark as the global standard representing highly effective, therapeutic level Manuka honey of the highest quality * International sales model let people all around the world to know Comvita. Global market trends strongly support Comvita’s positioning. Natural performance process advocates seizing the people’s psychological. * Brand Loyalty –Comvita is greatly dependent on its brand reputation which is a critical factor in sales.

Due to its unique products, it has come out to be seen as one of the most environmentally friendly retailers. * Comvita has great intellectual property around wound care applications for manuka honey and they are applying that very effectively Weakness * High technology and continuous research and development needs * High dependence for natural environment * Low demand * long cyclical than commodity needs Opportunities High potential that the Medihoney wound care business expand into medical market * Comvia has a high premium value in Asian market offer an enormous amount of potential * New product development (e. g. pet products) * Promotion strategy to improve sales Threats * Manuka honey’s price is much higher than the normal honey * International business cause currency fluctuation risk * New entrants threats * Substitute products-replaced by other health care products (e.

g. Vitamin C granules) * Strong competitors like Good Health Product limited; Blackmores Ltd; Airborne Honey Ltd as they produce similar products.Finance Comvita has received $7. 4 million in initial capital payments, $3. 3 million in cash and $4. 1 million in Derma stock and warrants from the global licensing deal for MedihoneyTM perfessional medical products with their US partners Derma Sciences.

It now owns approximately 16. 7% of Derma Sciences. In addition Convita achieved a net profit after tax of $5. 0 million at 2010, it represents that Comvita have a significant success in business over the past several years and survived in the worst of the global financial crisis. Comvita’s sales from $71. 4 milliom in the previous year to $84. million for the year ending March 2010 grew by 19%. .

Performance Reference Mellentin,J. (22,23 Aprol 2010), Some key trends in helth and how to connect to them, New Nutrition Business, Naturial Products New Zealand Presentation Nelson Comvita homepage from http://www. comvita. co. nz/? gclid=CNHE4tSqu6gCFU6ApAodNWF1Bg Comvita financial report 2010 from http://www.

comvita. com/annualreportsarchive_1. html Comvita fact sheet from http://www. comvita.

co. nz/userfiles/file/Comvita_Fact_Sheet_Dec_2010. pdf Business model From http://www. bcg. com/documents/file56479. pdf

Author: Billie Pierce


I'm Mia!

Don't know how to start your paper? Worry no more! Get professional writing assistance from me.

Check it out