Saitarium Case Study

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SANITARIUM HEALTH AND WELL BEING NZ

Company Background
Sanitarium is a joint venture of two sister concerns. New Zealand Health Association Ltd and Australian Health and Nutrition Association Ltd , both owned by seventh Adventist Church. It has approximately over 1700 employees. The New Zealand branch of Sanitarium, better known as Sanitarium Health and Well-being NZ in spite of being a registered company it operates as a tax free entity because of Seventh day Adventist religious obligations. Unlike usual business entities, they don’t have traditional shareholders.Pierre van Heerden, who has more than twenty years of international experience in the food industry.is the current Executive General Manager - New Zealand – Sanitarium Health and
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Sanitarium’s businesses are confined to just New Zealand and Australia and which implies consumer preferences for their breakfast cereals and other products are restricted to trans-Tasmanian entity and it’s high time they take further steps to expand rapidly on the global level and enter emerging economies like India and Brazil.

Also Sanitarium’s marmite, a food spread basically a by product of beer brewing is their authentic product. Unfortunately Sanitarium bore huge operational losses to its marmite production factory during the 2011 earthquake in Christchurch.They had to shift their marmite production out of Christchurch which resulted in employees loosing their jobs. Sadly the after effects of 2011 earthquake and impending marmite supply shortage in that period forced Sanitarium to relocate its distribution to Auckland in 2012.
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Weet-bix kiwi kids triathlon which recognizes children’s accomplishment
2. Kick Start Breakfast club which focuses on promoting healthy life style
3. In association with Fonterra, they have initiated efforts to nurture healthy life style among kiwi kids.
4. Role of Sanitarium in “Quit Now”, a community program that helps people to quit smoking and helping them to maintain a healthy, balanced life.
5. Sanitarium is also affiliated to “Turn your life around”, an initiative undertaken to identify young offenders who are at risk of being criminals, mentoring them and teaching them life skills.

Target Market:

With consumers in pursuit of healthier life styles and eating habits, the demand for cereals and baking products will still remain high in the forthcoming years.
Sanitarium target market comprises of mostly today’s teens and young adults especially school children who require a nutritious wholesome breakfast to sustain them right through the day.Even adults in the age group of 20-40 years are also targeted .Mother’s with children in the age group of 3-8 years are also a valuable demographic segment since nutrition is a high priority for children in these formative

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