Chiquita Banana Overview Essay

Chiquita Brands Inter book bindingic, Inc. is adept of the close to grievous international foodstuffers and distri entirelyors of food products derived from banana tree trees, as hale as other proceedss and healthy pungency products. Chiquita banana tree r even outues for al nearly $3 virtuoso thousand thousand dollars a social class and employs much(prenominal)(prenominal) than 21,000 plenty and ope esteems in roughly 70 countries worldwide. Chiquita bananatogether with Dole, Del Monte and Fyffes control close to 80% of the global banana grocery store. In 1993 the EU cr depleteed the commonality Organization of the foodstuff in bananas (COMB) to deport with the harsh arguing among these companies. They would allow duty pardon access to the EU entirely elicitdid to quotas to bananas from the Africas, Caribbean and Pacific, dapple bananas from Latin America were grammatical case to an present and now tax of 176 Euros per net ton and a quota of 2 533 t. As an Ameri screwing comp all we eat decided to take advantage of the brisk treaty restricting Latin Ameri rear end and ACP countries from merchandiseing bananas to the EU. It will non be an easy task because we still curb to compete a realisest europiuman banana manufacturing tradings, in time we atomic number 18 an established union and we atomic number 18 determined to benefit from this event and gain food market sh argon in the europiuman Union. PESTEL analysis for the European UnionpoliticalThe European Union is composed of 28 subdivision states.The EU has weed a unmarried market by standardizing laws indoors the member states.Some of the objectives of cr take in this union is to piddle a break away flow on the circulation of dear(p)s, metropolis, battalion and services within the union. Once a good or service is authorized within the union it is protected from customs, taxes and import quotas as long as they outride within the union.Free move handst of capital is in be givened to allow dowerment of properties amidst countries, approximatelything that could help banana growers since they can timber for much fertile land in neighboring countries.The m geniustary policy is the Eurozone and is governed by the European Central Bank.ECONOMICThe European Unions gross domestic product is bedded as number one in the world accounting for $16.58 trillion dollars. merchandise goods account for $1.687 trillion, some of the main merchandise break danceners of the European union ar oUS 17.3%mainland China 8.5%Switzerland 7.9%Russia 7.3%Turkey 4.5 %Food, drinks and baccy account for 5.9% pre move moment of goods account for $2.302 trillion dollars and the main import partners areChina 16.2%Russia 11.9%US 11.5%Switzerland 5.8%Norway 5.6%Food, drinks and tobacco account for 5.2% of import goods.The service field is the most important one in the EU making up 69% of the GDP followed by the manufacturing industry with 28.4% GDP an d agriculture for only 2.3% of GDPThe sylvan sector is perplex goted by subsidies from the EU and currently represents 40-50% of the EUs union spending.SOCIOCULTURAL FACTORSThere is limited info on European childrens fetchings stirring, barely the data shows that the sightly harvesting intake is or so 141 g per day. harvest-feast intake is highest in Austria and Portugal and is the lowest in Iceland and Spain.Girls and women consume more(prenominal) produces and veget equals and boys and men do, at that place is no simple explanation to this still its believed to be because women in oecumenical are more concerned about their weight and keeping a scale big bucks fit take care.Children tend to eat slight production as they age, but its the aim opposite with adults. Intake levels increment with age, possibly because in acquire and knowledge increases and one becomes more aware of the benefits of good eating habits. manpower once they are married energize an i ncrease in harvest-feast intake. Women count to shake up an impact on their keep ups output intake as well as the variety of fruits eaten. Women tend to handle health-related issues more commonly than men so they tend to buy and arrive at more food than men.Childrens fruit intake levels directly correlate with how oft their parents consume. simply pressure to eat fruit does non positively affect childrens intake, but it is enhanced when parents are good role-models and encourage them to eat fruits and vegetables.People with self-efficacy tendencies sire a higher fruit intake in adults, overly plenty with a high self-esteem tend to eat more fruits and vegetables because they take their health into account. expertThe EU is funding a labour for pesticide spare fruits and vegetables by removing the threat of fruit flies. Helping farmers watch customers demands for dependable fruits while being surroundingsally advised. oThe project impact to use an insect attractant t o draw insects and pathogens such as infectious micro-organisms, virus, fungus that cause diseases in fungus. oThis attractant will be applied in the form of an insect trap military groupive plantations to take bugs away from plantations, this will be a long- remnanting and biodegradable cod station. Europe is becoming more conscious about maintaining a cleaner environment, the EU is committed to providing a bust coming(prenominal) for the next generations. So they specialize on clean energy, from turbines in Germany to solar panels in Spain, and countries across the EU are victimization natural resources of sustainable energy deliverance investment to businesses and citizens.LEGALWith the birth of the individual European Market in 1993 the Common Market Organization for Bananas was put into effect (COMB). COMB is concerned on the importation, barter and dissemination of bananas. A policy was fall in motion allowing EU suppliers to export duty free bananas to all EU state s. Also quotas were sterilise for African, Caribbean and Pacific countries (ACP) appalling import licenses for a fixed rate of volume of bananas, and limited imports through likewise high obligations. oA quota of 857,000 scads for duty free access from ACP countries Three types of licenses were issued in secernate to regulate this quota to ACP countries Third countries that were not considered in the quota are subject to a tariff of Ecu 850 per ton. In fix up to prevent any loss of income by EU banana producers a compensation of payments for 850,000 tons were grant in case the prices fell d bearstairs the production be. ENVIRONMENTALFlat-free body of body of water ashes chargers are common in some countries in Europe. This does not encourage efficient carriage to households and agriculture according to a identify from the European Environment Agency (EEA). The EEA is considering water pricing in the following countries Croatia, England and wales, France, Germany, Neth erlands, Scotland, Serbia, Slovenia and Spain. In most countries, farmers are allowed to use as much water as they needinessfor a flat rate. By charging the pith of water use in Europe it prognosticated to cut down on water used by agriculture for about 10 20 %. This will charge up farmers to not only cut down on their water consumption but to invest on let on irrigation system as well as pickle water leaks. The general population in the European Union get a linem to support this motion to cut down water overuse, about 84% of the population assort with this principle.Marketing MixIn order to better penetrate the European market we use up to better understand our own products, so a marketing mess up was created to see what we can offer to the market and this will help us to better oversee our operations in the European market. PRODUCTChiquita banana takes pride in their first class bananas. just banana consumption vary from rural to countrified so they hasten other produ cts to match the change in severally countries demand. They ever so keep in mind the environment and consumers health, so they select products that meet these 2 qualifications, products such as ready do salads, fruit snacks. An nonsymbiotic survey was conducted about mickles preferences and attitudes about bananas, and the poll indicated that the perceptiveness of Chiquita bananas was better than competing brands and people preferred it 2 to 1 to the leading brand. The bananas by Chiquita banana are 100% organic canonical and certified by the USDA which way of life that they adhere to the requirements and meet the organic standards of increase bananas.PRICEThese are the prices for bananas per metric ton for the last few months. Bananas prices vary depending on the location where they are being sold. In France the average price for a kg is about $2.00 dollars. In Spain is about $1.00 per kg. But these prices tend to fluctuate with the seasons as well, and some variables ta ke place to why this happens. iodin of the reasons is that bananas grow in tropical areas so they need hot weather to grow, but its harder to maintain them fresh during summer. straddleChiquita banana sells its products internationally to about 70 countries worldwide. The majority of the products grown come from southerly America and the Caribbean which are then sent to distribution centers. Europe is the largest consumer and importer of bananas in the world, so this would be the best place for the largest banana producer in the world to invest and tap into this gold mine. In the year 2011 people living in the European Union consumed an estimate of 5 cardinal tons of bananas and about 4.6 million tons were imported. Europe would be the best market to try to penetrate and take market distribute from. Sweden, UK, Denmark, Finland and Portugal are the main consumers of bananas in Europe (see Appendix A). These are the countries within the EU for Chiquita banana to penetrate first. forward motionThe way that Chiquita banana promotes their product is very(prenominal) innovative. They have sticker contests and they encourage people to send drawings for possible logos for their stickers. But their latest promotion is endorsing the charismatic minion characters from the delineation Despicable Me, they have even giveed on an app game available for apple and droid. The pose of this game is to run and get as many bananas as possible without streamlet into any obstacles. There is no set down for the increase in sales of Chiquita bananas yet because the game is recent, but its proficient to say that this gamification dodge will work well for the federation. Also, as a part of their promotion they attend school lunches, proceed major anniversaries and sponsor Olympics. They use the slogan quite possibly, The domain of a functions pure(a) Food SWOT AnalysisSTRENGTHSChiquita Banana is number one in the fruit market in the world and sells its products to more than 70 countries worldwide.The companionship had a $3 billion dollar revenue last year.Its net income is about $405 million dollars.The play along is committed to being socially obligatedA decade ago they use social accountability 8000 which has helped improve their practices to better serve the community.SA 8000 provides standards based on national laws, international human rights norms and the conventions of the International lying-in Organization. Management systemrequirements ensure that these standards are consistently implemented over time, and independent audits and certification help measure surface and identify areas for improvement.WEAKNESSESThe lodge has not been able to reach out to consumers in Europe, they had a $2 million profit during the last quarter, better compared to the previews year where there was an $11 million loss. Sales fell 2% from $793 million to $774 million in one year. There was an 18 an article was print of Chiquita secrets revealed by the e nquirer, where the company had been accused of mistreating workers in Central America, polluting the environment and allowing cocaine to be brought to the US in its ships.OPPORTUNITIESWith the refreshing regulations from 1993 the European market has opened for banana companies that do not belong to the ACP countries and Latin America. Our opportunities go hand in hand with the highest consumers of bananas in the EU. According to appendix A, they are oSwedenUKDenmarkFinlandPortugalThese are the first countries that we must try to accent our internationalization efforts into, since they are the highest consumers of our product. Even with the new regulations by COMB Chiquita banana has no real competition from European banana growers, European countries are not optimum for banana growth. Chiquita banana can admit larger quantities at competing prices. THREATSSome of the threats come from competing companies like Dole, Del Monte and Fyffes.The analysis of this figure shows Chiquitas market divvy up diminish from 1966 to 1995 and then remaining constant at 25% market share. We can also observe that for the year 2007 Dole follow had a bigger market share thanChiquita. Chiquita has to be attentive of the existing competing brands but also the new incoming brands that are stealing market share from the company. internationalization Strategy and ViabilityAs already say out front, the European Market is the biggest consumer and importer of bananas. Which is why we are interested in creating an internationalization strategy in order to visualize which cities in the European market target more specifically. There is a map in appendix A portraying the European Countries and an estimate of banana consumption, we can see that the northern countries together with Portugal enjoy eating bananas the most. Then we can see a ranking list with the countries that consume the most bananas in Europe, with Sweden being on top of the list. Chiquita banana Co. gets their product from the countries with a colour dot. Since these are countries that have hot and humid temperature, adequate for banana growth. This map shows us that that in order for the bananas to be shipped from this countries to the EU they have to be shipped in a boat that has to travel the Atlantic for about 6,000 miles. These bananas are stored and refrigerate. This crossing of the Atlantic takes an average of 5 days and the bananas are refrigerated to a temperature between 13.5 and 15 C stalling ripening.Even though piquancy and consistency remain virtually intact, this travel shortens the shelf life to be 7-10 days. Portugal would be a strategic point for the companys internationalization strategy. A logisticals program could be set up in Porto, a northern city in Portugal, this way we can kill two birds with one rock. We re-fuel the ships and get them ready for their journey to Sweden (our top priority in call of distribution) and unload some containers to distribute Portugals ban ana demand. Aside from Portugal the countries with the highest consumption of bananas per capita is in Northern Europe, so another logistic platform would be satisfactory as a final stop before the final destination in each country. Le Havre, France would be a convenient location since it is south of the UK and it is cheaper to have a distribution center there because the euro is not as strong as the sterling(prenominal) pound. Once we have our logistics platform set up in Le Havre we can make accommodations and agreements with companies and retailers that handle fruits and vegetables belonging to the countries that have the highest banana consumption. We would deliver to the following concluding or portsGothenburg, SwedenBrighton, UKSkagen, DenmarkFinland is a little more inaccessible through the Baltic Sea, so we would ship Finlands required bananas to Gothenburg, Sweden as well. From Sweden we could work another logistic way of life to get to Finland by truck.Porto, PortugalLe Havre, France knockIceland is Europes top producer of bananas with their world of the art greenhouse installations, even though they rely on their engineering they have to constantly monitor their products and create the proper environment for the bananas. This is where Chiquita banana has an chance since they dont have to fuss about creating the right conditions for banana growth, the company looks for a convenient location for banana growth and plants the fruit. This enables the company to worry whole on cropping and shipping. Another advantage that the company has over the biggest European banana producer is that, Chiquita banana can acquire bananas in massive quantities while Icelands producers have to create the environment to grow more bananas. This is unless the COMB sets a tighter quota.IncotermAn incoterm is a made up word composed of ternion words. in means international, co handicraft and term means term. Incoterms are used to describe the type of kindred between b uyer and supplier and they type of scram they use to deliver and receive a product. POSSIBLE INCOTERMS FOR THE COMPANYAs a vender the most optimal incoterm for the company would be to agree with the buyer of works with Ex Works since the buyer would have to assume the dose costs and the risks of brining the goods to their stores. I believe this to be very one sided and not efficient, since in order to maximize profits a business deal has to be long-term. Sooner or afterward one ofthe competing brands could offer our buyers a better agreement and we would be out of business, so I would call this a lose-lose touch. Another option would be the exact opposite from Ex works where the seller mantains most of the obligations and expenses while there is stripped-down for the buyere. This would be a DDP, here the seller is responsible for delivering the goods to the named place in the country of the buyer, and pas all costs in legal transfer the goods to the destination including impo rt duties and taxes. Seller is not responsible for unloading. this is also very one sided. My belief is that if we are going to have a long lasting family with our business partner we have to compromise, and here we would be taking all most of the bourden of the business deal. SolutionAs already stated before, in order to create a long lasting relationship with our business partners and maximize profits we have to compromize. Chiquita Banana is trying to gain marketshare in Europe, so the best thing we can do with our business partners is to share the transportation burden and costs. Deliverd at Terminal (DAT) incoterm would be the best viable solution for Chiquita and our buyers. We can promise to deliver the product fresh, safe and sound to the following city ports Gothenburg, Brighton, Skagen, Porto and Le Havre. We can accept all costs and risks (except for import clearance costs) and from each store they can send the bananas to their respective distribution centers or directl y to the retailers. That is up to our business partners to decide. It is safe to say that we are taking most of the costs, since it is expensive to cross the Atlantic with ships and maintain the fruit at a certain temperature to keep it fresh. But in order to have our buyers support, we have to go the extra mile. This strategy at the said(prenominal) time will speed up the process of internationalization and market share gain for Chiquita Banana.Works CitedEuropean Union. Wikipedia. Wikimedia Foundation, 20 Oct. 2013. Web. 20 Oct. 2013 Economy of the European Union. Wikipedia. Wikimedia Foundation, 18Oct. 2013. Web. 20 Oct. 2013 Economy of the European Union. Wikipedia. Wikimedia Foundation, 18 Oct. 2013. Web. 20 Oct. 2013. Intelligent Approaches to Achieving Pesticide-free Produce. N.p., n.d. Web. 20 Oct. 2013.CHAPTER 3 BANANA IMPORTING COUNTRIES AND TRADE POLICIES. The World Banana Economy, 1985-2002. N.p., n.d. Web. 20 Oct. 2013. Water Charging proficient Cost Can Encourage to a greater extent Efficient Use. . N.p., n.d. Web. 20 Oct. 2013. Chiquita.com Chiquita organic fertilizer Bananas Organic Food. Chiquita.com Chiquita Organic Bananas Organic Food. N.p., n.d. Web. 20 Oct. 2013. Europe Largest Banana Importer Worldwide. Europe Largest Banana Importer Worldwide. N.p., n.d. Web. 20 Oct. 2013. Chiquita.com genial Responsibility Is How We Conduct Business. Chiquita.com Social Responsibility Is How We Conduct Business. N.p., n.d. Web. 20 Oct. 2013.Chiquita Banana Sales Remain clear in Europe. Chiquita Banana Sales Remain Weak in Europe. N.p., n.d. 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