Case Analysis of Camu

Nativas Naturals is looking at ways to bring the Peruvian plant camu into the mainstream, capitalizing on the "superfood" trend wherein exotic foods with high nutrient value are elevated in their status and sold on the basis of their high nutrient value. Prior superfoods such as chia seeds, goji berries and kale have enjoyed success in the past, and marketers are searching for the next big superfood trend.

There is a high failure rate for such products, and in some cases there are institutional barriers to bringing these products to market, but the payoff can be significant. Nativas Naturals has distribution pathways in several countries already, so can help to bring a new product to market, using their knowledge and experience with other, similar products.

One of the major restrictions on the marketing of superfoods is the Novel Food Regulation in the European Union, which in a fit of bureaucratic absurdity decided it was a good idea to place stringent requirements on non-European food stuffs from being sold within the EU, right at the beginning of globalization. This ill-conceived, parochial legislation persists despite its illogical nature, and companies such as Nativas must work with the law, no matter how ridiculous it is.

There are alternatives that Nativas can consider, if it finds the Novel Food Regulation to be too stringent, or it can choose to pursue the market anyway. Nativas has fewer such restrictions in other major markets, such as the U.S. And Japan, and this can potentially affect the strategy for the company. The decision with which Nativas is faced at present is how to approach the international marketing of the camu.

This fruit, from the Amazon region of Peru, has been targeted for new products and a marketing blitz by the company, but Nativas prefers to have its strategy in place prior to moving forward with the development of a line of camu products. Nativas has to look at how the EU's rules will affect its overall global marketing strategy, including how it will market camu in North America.

There is little doubt that the superfood designation is critical to success, but it must be able to sell the plant in a variety of formats to meet the different needs of consumers in this market. Problem/Opportunity How can Nativas market camu globally? List Alternatives The first alternative is that camu can be brought to different countries in fruit form. The second alternative is that camu can be developed into a line of food and drink products that give consumers direct access to the fruit's benefits through direct ingestion.

The third alternative is to dodge the EU's regulations by extracting the benefits of camu, but in supplement form, which may come under a different set of regulations (EU, 2014). Analyze Alternatives The first alternative, shipping camu to different countries in fruit form, has a few advantages. First, this requires little processing. Second, the fruit is the most nutritious way to consume camu, and third, it appears that it can be cultivated year round. However, there are several disadvantages to this option.

The first is that shipping fruit is a relatively difficult business. There are agricultural rules governing cross-border shipping of fruits. The EU's law would still apply. Second, consumers who seek out superfoods still like a little bit of convenience. They may have no experience in preparing camu and might not know what to do with it. This could be a barrier to adoption. Third, Nativas is not in the fruit business.

It doesn't know how to prepare fruit for shipping, much less get a fruit from the Peruvian Amazon -- an isolated region not connected by road to the outside world -- to major markets. Nativas is more into prepared foods and should focus on that. The second alternative is to develop a line of food and drink products. This has the advantage of being something Nativas specializes in. The company can therefore use this to produce a wide range of attractive products at different price points.

Nativas can combine camu with other products as well, allowing it to develop complementary superfood products. There are disadvantages, however. First, this still does not solve the EU Native Food problem, something that could rule Nativas out of that market. The second issue is that it still needs to get the camu out of this remote region to other areas of the world. This is the strongest option, having no other major disadvantages. The third alternative has the advantage of allowing camu to be sold in the EU.

Also, supplements are popular in the U.S. As a means of consuming superfoods, vitamins and valuable minerals. The shipping of such pills or supplements is also easier than shipping fresh fruit or even processed fruit, and comes at a lower cost. However, this alternative has its disadvantages. First, because it is not a food it will become less attractive to many consumers. That could reduce its total sales. Another issue is that there is nothing all that unique about the nutrients in camu.

Once they are extracted, they lose that "superfood" value, which is derived from packing so much into a single fruit. Third, supplements are starting to receive more scrutiny as well from governments, so there is no guarantee that the legislative/bureaucratic pathway to market is going to be any easier via this option. Recommendation and Implementation It is recommended that the second alternative be adopted. The first part of the implementation -- the creation of foods and drinks - is the easy part. Nativas is already quite good at that.

They will need to determine where to produce, as it might be easier to move finished product out of Peru, as it will have to go.