Report on Comvita|
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. 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
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 Drivers
A 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...