Vitasoy's Pineapple Banana Tofu Smoothie Launch in New Zealand Report

This report provides a comprehensive analysis of Vitasoy's planned launch of a Pineapple Banana Tofu Smoothie in New Zealand. It begins with a description of Vitasoy, its existing product line, and the rationale behind the new product, detailing its composition, target market (health-conscious young people and busy individuals), and unique selling proposition (USP) of a healthy and tasty smoothie. The report identifies New Zealand as the target country, citing the population's focus on health and willingness to spend on healthy products. It then delves into the nonmarket forces impacting the company, including political (sourcing, food safety regulations), economic (global recession, exchange rates, labor costs), social (customer preferences, cultural trends), technological, legal (food safety laws, labor laws), and environmental factors. The report emphasizes the importance of adapting to these forces for successful product launch and business operations, offering insights into how Vitasoy can navigate these challenges and capitalize on opportunities. Finally, the report includes a list of relevant references.

Current issues in management

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Contents
Product Idea and the new nation............................................................................................................2
Description of the company...............................................................................................................2
Description of a new product.............................................................................................................2
Customers identified for new product................................................................................................3
Product’s USP in the market..............................................................................................................3
A targeted country with the reasons...................................................................................................3
Nonmarket forces influencing company................................................................................................4
References.............................................................................................................................................7

Current Issues in Management 2
Product Idea and the new nation
Description of the company
Vitasoy is a Hong Kong based beverage company. The company was established in 1991 and
hosts a brand of beverages and desserts. The products offered are healthy and great tasting.
At the initial level, Vitasoy produced only high protein soya milk and later expanded into the
extensive variety of beverages like milk, fruit juice, water, soft drinks, and tofu. Vitasoy
sustained robust growth after its listing in the Hong Kong Stock Exchange in 1994.
Vitasoy is committed to growing business in a method that is good for both people and the
planet. The company makes use of UHT sterilization technology which enable to safely
distribute products to more people. The products of Vitasoy are sold in more than thirty
markets around the globe. The company is interested in bringing health and inspiration to
everyone, everywhere (Yahoo Finance, 2019). The beverages of Vitasoy are packed in paper
cartons, glass bottles, PET bottles, and cans. The soy drinks and tofu are made available in
several flavors. Vitasoy also offers a range of non-soy plant milk (Reuters, 2020). The
revenue of the company is expanding steadily in the last five years. The operations of Vitasoy
in Australia, Hong Kong, and Singapore has indicated growth in the revenue in reporting and
local currencies. Vitasoy is making use of the “Go deep go wide” strategy to widen its appeal
base and develop beyond the traditional roots.
Description of a new product
Vitasoy will launch a new product identified as Pineapple Banana Tofu Smoothie in New
Zealand. Pineapple Banana Tofu Smoothie is quite famous in every age group. The smoothie
is a great way to intake pure nutrition, mainly first thing in the morning. The Pineapple
Banana Tofu Smoothie is certainly better than taking pharmaceutical vitamins. It is highly
nutritious and delicious. Pineapple Banana Tofu Smoothie is a perfect and tasty combo
(Vitasoy, 2020). Pineapple Banana Tofu Smoothie will be made available in the retail, brand
stores, outlets, and grocery markets. The smoothie will be offered by Vitasoy in the glass
bottles as glass bottles have a tendency to maintain flavor for a long time along with
maintaining freshness. One bottle of smoothie will contain one banana, 2/3rd cup of tofu and
1/2 cup of pineapple. Pineapple Banana Tofu Smoothie will be the perfect food for the busy
people who ensure to get all the nutrients.

Current Issues in Management 3
Customers identified for new product
The customers identified for Pineapple Banana Tofu Smoothie are major health-conscious
among the young population and busy people who have limited sources for nutrition intake.
Pineapple Banana Tofu Smoothie is a popular dietary product. The smoothie meets the
requirements of the health-conscious people. Such people prefer to have a smoothie at
breakfast or within meals. Vitasoy is already established and the addition of Pineapple
Banana Tofu Smoothie in the product category will increase the product demand in the
market as it is a most trusted brand. The smoothies are intake by people as a nutrition
alternative for food and beverages (Rijswijk and Brazendale, 2017). Pineapple Banana Tofu
Smoothie has the capability to reduce the risk of various chronic diseases along with
containing an appropriate amount of fiber and phytochemicals. The smoothie is a convenient
means to complement a healthy diet.
Product’s USP in the market
The USP of Vitasoy in New Zealand will be a healthy smoothie with an interesting flavor
combination. The high quality will be the greatest USP of Vitasoy. Vitasoy will position itself
in the case of Pineapple Banana Tofu Smoothie aa a healthy drink to offer the nutrients
required daily.
A targeted country with the reasons
New Zealand has been selected by Vitasoy for Pineapple Banana Tofu Smoothie as people in
the nation are ready to spend high prices when it comes to health. The people here pay more
than a billion dollars annually. The customers here take charge of their health. 51% of people
of the nation are enthusiastically trying to lose weight. On the other side, 80% of people are
beholding to change their diet to attain their goals. Agreed to the high interest in getting
healthier, there is the prospect for Vitasoy to better line up offerings with the customer wants

Current Issues in Management 4
and desires for innovative and health benefits (New Zealand Food Safety, 2020). There are
greater chances of smoothie being liked in New Zealand as it is sugar-free. It even does not
contain any artificial color. The local people in New Zealand even seek products made up of
vegetables and fruits and smoothie is an appropriate option (Xu and Wu, 2018).
The people in New Zealand are suffering from obesity. In such a scenario, there is scope for
healthy products for managing weight. The smoothie can lead to significant weight loss and
improve nutrition. The smoothies can be consumed every day of the week and give the
nutrition required. It can even lead to a good healthy base.
Nonmarket forces influencing company
The nonmarket forces act on the economic factors other than the market system. The
nonmarket forces comprise organizing and correcting factors that offer order to market and
other social institutes and organizations such as political, economic, social, legal and cultural.
It can assist Vitasoy to function effectively and efficiently in New Zealand with the launch of
the new product ‘Pineapple Banana Tofu Smoothie’. The non-market forces are typically
linked with the government as associated with other non-economic institutions.
Political factors: The non-market force in the form of political factor which can influence the
launch of Pineapple Banana Tofu Smoothie in New Zealand is sourcing of raw materials. It
has attained greater attention from politicians in New Zealand. Such reasons will enable the
company to obey social and environmental norms. Vitasoy is required to follow the sourcing
strategies as a part of non-market forces because it is significant for fair-trade practices. The
multinationals in New Zealand are subjected to greater inspection of the business procedures.
Vitasoy should monitor political stability within New Zealand. Vitasoy can make use of
tactics to follow like employment laws, and tax policy (Banerjee, Venaik, and Brewer, 2019).
Vitasoy is necessitated to register under the Food Act, 2014 as an approach towards food
safety. The company also has to apply 15% GST on the sales of Pineapple Banana Tofu
Smoothie. The Ministry for Primary Industries (MPI) is having the aim to make sure that the
health and safety risks from food are negligible and consumer health is safeguarded (NZ
Pocket Guide, 2020).
Economic factors: The economic factors which are pertinent to Vitasoy with the launch of a
new product in New Zealand can be changed in the interest rate, foreign exchange rate, and
gross domestic product. Such factors have a great impact on the aggregate demand,
investment and capability to make profits. The global economic recession is the major non-

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market force for Vitasoy. Vitasoy, in order to produce smoothies, has to deal with the
increasing labor and operational costs. The inflationary environment and falling profitability
can create a lot of stress. Vitasoy in New Zealand with the new product launch can be
affected by the local currency exchange rates, the economic environment in the varied
markets and the taxation level.
Vitasoy can undertake strategy for the food insecurity concern and can offer enough energy
to meet requirements. The food insecurity is likely to be linked with under-nutrition and over-
nutrition (Enderwick, 2017). Therefore, Vitasoy is likely to be aware of and familiar with the
issue of food security.
Social factors: Vitasoy can offer Pineapple Banana Tofu Smoothie at the cheap prices
without compromising on the quality. The company can face a socio-cultural challenge. It
can widen the customer base to comprise the buyers from lower to middle-income tiers.
There is concern about the green and ethical chic customers in New Zealand. Such people
have agonized concerning the social and environmental costs of the brand. Vitasoy needs to
be aware of this trend. As a part of social factors, Vitasoy needs to focus on customer
preferences, changing work patterns in New Zealand along with a change in the eating habits
of people (Khan and Lockhart, 2019).
The culture has a substantial role in the non-market forces. There is also a culture of spending
a good amount of healthy food in New Zealand. Obesity is progressing in the nation on a
consistent basis. The launch of Pineapple Banana Tofu Smoothie can attain popularity among
health-conscious people. Vitasoy can make use of customer retention strategies to enhance
customer loyalty. Vitasoy is having its operations in New Zealand already and can retain the
customers for purchasing newly launch products. It will be also cost-effective for the
company to retain loyal ones than attracting new customers. Loyal customers also work as
free advertising (Soeters and Goldenberg2019). The word of mouth is deliberated to be one
of the leading ways to attain power.
Technological factors: Vitasoy is in such a situation that it can enjoy the benefits of evolving
mobile wave. The company can undertake tactics like doing partnership with the leading
mobile brand like Apple to offer app-based discount coupons. It can assist in riding the
mobile wave effortlessly. New Zealand is a diverse and advanced technological sector.
Therefore, Vitasoy will enable mobile payment for the new launch product. It will also have a
great role in improving the overall customer experience. Vitasoy is required to keep in mind

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some factors related to technology while launching a new product in New Zealand such as
the advent of innovative technology along with biotechnical advancements and agriculture
developments (Obi, Leggett and Harris, 2017).
Legal factors: As a part of nonmarket forces, Vitasoy makes sure that it does not violate any
laws and regulations in New Zealand and from the nations it buys raw materials. Vitasoy is
required to follow the food safety system in New Zealand in order to offer safe and suitable
food. The Ministry for Primary Industries (MPI) in the nation ensure health and safety risks
and safeguard the wellbeing of people. Vitasoy has to follow the regulations of the New
Zealand Food Safety Authority for the composition and labeling (Kamasak, James, and
Yavuz, 2019).
The ease of doing business in New Zealand can be quite helpful for Vitasoy to launch a new
product. Vitasoy should pay the minimum wage set by the local government to the adult
employees. Recession is the most significant factor when it comes to launching new products
as the company has to reduce costs and increase value (McDougall, Compton and Botha,
2017).
Environmental factors: The environmental factors have a great role in the form of non-market
forces. Vitasoy has to undertake environmental rules and regulations in New Zealand. The
non-market forces like weather conditions in New Zealand can significantly impact the
ability of Vitasoy to manage the transportation of resources and finished products. The
climate change also extracts some products useless (McDonald, et al. 2017). The company is
even required to manage waste and improve environmental habits. Vitasoy is necessitated to
contribute to the rare species which can face significances from the law and backlash from
the general public who can boycott Vitasoy in retaliation. On the other side, it can be
expensive for Vitasoy to rely on renewable energy as it generally attains assistance from the
government and customer base. Such customers pay a premium price for the products to be
produced by Vitasoy (Shirodkar, Strange and McGuire, 2020).

Current Issues in Management 7
References
Banerjee, S., Venaik, S. and Brewer, P., 2019. Analysing corporate political activity in MNC
subsidiaries through the integration-responsiveness framework. International Business
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Enderwick, P., 2017. What drives opposition to foreign direct investment (FDI)?: Chinese
investment in the New Zealand dairy industry. New Zealand Journal of Applied Business
Research, 15(2), p.21.
Kamasak, R., James, S.R. and Yavuz, M., 2019. The interplay of corporate social
responsibility and corporate political activity in emerging markets: The role of strategic
flexibility in non‐market strategies. Business Ethics: A European Review, 28(3), pp.305-320.
Khan, M. and Lockhart, J., 2019. Embedding Corporate Social Responsibility into Business
Practice: Lessons Learned from New Zealand. In Clean, Green and Responsible? (pp. 87-
105). Springer, Cham.
McDonald, R., Heanue, K., Pierce, K. and Horan, B., 2016. Factors influencing new entrant
dairy farmer's decision-making process around technology adoption. The Journal of
Agricultural Education and Extension, 22(2), pp.163-177.
McDougall, S., Compton, C.W.R. and Botha, N., 2017. Factors influencing antimicrobial
prescribing by veterinarians and usage by dairy farmers in New Zealand. New Zealand
veterinary journal, 65(2), pp.84-92.
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Obi, C.N., Leggett, C. and Harris, H., 2017. National culture, employee empowerment and
advanced manufacturing technology utilisation: A study of Nigeria and New
Zealand. Journal of Management & Organization, pp.1-23.

Current Issues in Management 8
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Rijswijk, K. and Brazendale, R., 2017. Innovation networks to stimulate public and private
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performance issues in the New Zealand dairy industry. The Journal of Agricultural
Education and Extension, 23(3), pp.245-263.
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Soeters, J. and Goldenberg, I., 2019. Information sharing in multinational security and
military operations. Why and why not? With whom and with whom not?. Defence
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