Group Channel Audit Project –Framework

Group Channel Audit Project –Framework

Author’s Name

Institutional Affiliation

Group Channel Audit Project -Framework

Business Description

Describe Business

Zoono Group Limited is a globally established biotechnology corporation dealing with the development, manufacturing, and worldwide sale and distribution of antimicrobial solutions with a characteristic competitive edge (Zoom Information, Inc., 2020). In Australia, Zoono Limited is publicity traded and listed as ASX: ZNO in the Australian Stock Exchange market (World Environmental Technologies, 2020). This firm was inaugurated and registered in 1986 and is headquartered in New South Wales, Australia (ASX Limited, 2019; Kalkine Media, 2020). Zoono Limited operates within the Materials sector of the Global Industry Classification Standard (GICS) industry groups listed in the ASX indices. The specific industry of operation is Chemicals and the sub-industry is Specialty Chemicals (Bloomberg (2020).

The enterprise’s registered office address is Level 12, 225 George Street, Sydney, New South Wales, Australia, 2000 (Zoom Information, Inc., 2020). In Australia, Zoono Limited has 152 employees and a revenue of just above 1$ million, and its share value is $1.7800. The organizational structure comprises five directors and senior management executives that include a managing director, two non-executive directors one of whom is the company secretary, a chief operating officer, and a chief financial officer (ASX Limited, 2019; Bloomberg, 2020).

Strategic Direction

A company’s strategic direction encompasses the actions and plans the firm undertakes to realise the tactical goals of its organizational strategy, achieve its vision and mission, and ensure alignment with quality objectives (Hamma, 2017). Managing this strategic direction requires adopting the Ansoff’s strategic opportunity matrix that underscores four elements. These include market penetration for market share augmentation, market development for new customer attraction, product development for competitive advantage sustainment, and the diversification of existing and new products for long-term risk reduction (SkyWest Media, 2017).

At Zoono Limited, the strategic direction is reflected in its mission statement. The mission is to remain committed to leveraging its research and development foundation, innovative technologies, and industry leadership position to offer trusted, unique, high-quality, highly effective, environmentally-friendly, durable, innovative, and long-lasting antimicrobial solutions that ensure safe and non-toxic germ protection while sustaining its competitive advantage (Zoono, 2020). This mission is supplemented by the firm’s strategic focus on ultra-gentle family defence and routine skin, textile, and surface protection against germs through the supply and distribution of approved antimicrobial solutions. The mission reflects Zoono Group’s strategic direction because it defines what and where the firm wishes to be in the future, along with how it will facilitate its strategic processes.

Products Offered

Zoono Group Limited specialises in antimicrobial chemical products that are proven, distinctive, scientifically-certified, and environmentally-friendly. These products include hand and surface sanitisers, water treatment chemicals, deodorants, facial wipes, surface sanitisers, skin lotions, aerosols, and other solutions such as sprays and foams for skincare and mould remediation treatments (Bloomberg, 2020; Zoono, 2020). Zoono Group has developed and concurrently owned intellectual properties around a unique antimicrobial molecule called Zoono Molecule (World Environmental Technologies, 2020). What this means is that its products, especially the sanitisers, are develop using patented antimicrobial technology that is regarded as environmentally friendly and long-lasting (Nicholas, 2020).

The skin and surface sanitiser formulations kill the toughest disease-causing germs (fungi, bacteria, viruses, and mould strains) without involving harmful and corrosive chemicals (Zoono, 2020). Thus, these products are gentle, odourless, non-leaching, environmentally safe, and non-corrosive when used on people and animals (World Environmental Technologies, 2020). Zoono Group’s products are extensively tested in testing facilities, laboratories, and university research facilities in Australia, China, Germany, Japan, New Zealand, the UK, and the USA. The certification and approval of these antimicrobial products are granted by the Australian Quarantine and Inspection Service and their packaging is approved by the Therapeutic Goods Administration (Nicholas, 2020; Zoono, 2020). The products are supplied to commercial, industrial, residential, and health clients globally.

Key Strategies

Zoono Group Limited adopts five key strategies in running its business. The first is specialization where it focuses on variations of limited products and uses its expertise, skills, unique technologies, and industry-specific application protocols to customize its antimicrobial solutions to ensure high quality, market leadership, and productivity maximization as they address specific needs of target market segments. The second key strategy is concentric product diversification. It involves Zoono Limited adding similar antimicrobial solutions to their existing business to augment portability and sales volumes.

The third strategy entails leveraging global partnerships where Zoono Limited has partnered with its well-established global client and distributor networks to facilitate wholesale inquiries. Other partnerships include those between this firm and accreditation institutions, higher learning institutions’ research facilities, product testing labs, and quality assurance associations (World Environmental Technologies, 2020). The fourth key strategy encompasses outsourcing packing and shipping services that handle consumer orders to a third-party logistics corporation to reduce freight costs (Nicholas, 2020). There are plans to extend outsourced services in distribution and warehousing operations. The last strategy is facility expansion by establishing plastic bottle manufacturing capabilities aimed at lessening reliance on imports.

The Company’s Business Model Canvas

The Business Model Canvas for Zoono Group Limited is shown in the diagram below.

Key Partners

Key Activities Value Proposition

Customer Relationships Customer Segments

Key Resources

Channels

Cost Structure Revenue Streams

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Brainstorming Space

Market Trends

In 2019, the global market size for hand sanitisers was valued at US$ 2.7 billion. This figure is projected to grow by more than 100% to surpass US$ 7.32 billion (Grand View Research, Inc., 2020; GlobeNewswire, Inc., 2020). This trend is driven by a shift in consumer preference towards convenient hygiene products where about 77% of the survey population in the study by Grand View Research, Inc. (2020) indicated a preference for hand sanitiser utilization. The recent COVID-19 pandemic outbreak has also contributed to this trend by augmenting the demand for hand sanitisers and other antimicrobial solutions. This offers an opportunity for Zoono Limited to distribute more hand sanitisers and other germ-killing products. This global coronavirus outbreak is also reinforcing the importance of regular hand sanitisation and surface cleaning among consumers, hence driving the market momentously. Panic buying of hand sanitisers due to COVID-19 is encouraging new manufacturers of antimicrobial solutions to join the industry from other industries to meet the surge in demand worldwide (Grand View Research, Inc., 2020). This will increase competition against Zoono Limited.

Zoono’s Australian Market Size

The current market size for antimicrobial products by Zoono Group in Australia is not known with certainty. Even so, estimates show that the Australian market size for hand sanitisers and related products is about US$ 290.6 million or roughly 10% of the current global market size (IndustryARC, 2019).

Competitors in the Australian Sanitiser Market

In Australia, Zoono Group Limited faces competition from many local and overseas competitors that include BOD Australia, Asaleo Care, Accrol Group, Acme United, and Brand Architekts Group. Others include PZ Cussons, MAV Beauty Brands, Pental, Mediland Pharm, McPherson’s, Warpaint London, Brand Architekts Group, Skin Elements, and Orchids Paper Products, among others (American Consumer News, LLC, 2020). Most of these firms have greater market share and revenue than Zoono Group Limited, showing the rigorousness of the industry competition they present.

ReferencesAmerican Consumer News, LLC. (2020). ASX: ZNO – ZOONO Group competitors & alternatives. American Consumer News, LLC. Retrieved May 12, 2020, from https://www.marketbeat.com/stocks/ASX/ZNO/competitors-and-alternatives/.

ASX Limited. (2019). ZNO -Zoono Group Limited. ASX Limited. Retrieved May 12, 2020, from https://www.asx.com.au/asx/share-price-research/company/ZNO.

Bloomberg L.P. (2020). Zoono Group Ltd. Bloomberg L.P. Retrieved May 12, 2020, from https://www.bloomberg.com/profile/company/ZNO:AU.

GlobeNewswire, Inc. (2020). Hand sanitizer market to reach USD 7.32 billion by 2027 | reports and data. GlobeNewswire, Inc. Retrieved May 12, 2020, from https://www.globenewswire.com/news-release/2020/04/15/2016141/0/en/Hand-Sanitizer-Market-To-Reach-USD-7-32-Billion-By-2027-Reports-and-Data.html.

Grand View Research, Inc. (2020). Hand sanitizer market size, share & trends analysis report by product (gel, foam, liquid), by distribution channel (hypermarket & supermarket, drug store, specialty store, online), by region, and segment forecasts, 2020 – 2027. Grand View Research, Inc. Retrieved May 12, 2020, from https://www.grandviewresearch.com/industry-analysis/hand-sanitizer-market.

Hamma, M. (March 07, 2017). Aligning quality objectives of the QMS with the strategic direction of the company. Advisera Expert Solutions Ltd. Retrieved May 12, 2020, from https://advisera.com/9001academy/blog/2017/03/07/aligning-quality-objectives-of-the-qms-with-the-strategic-direction-of-the-company/.

IndustryARC. (2019). Global hand sanitizer market – forecast (2020 – 2025). Hyderabad, India. Furion analytics Research & Consulting LLP. Retrieved May 12, 2020, from https://www.industryarc.com/Report/15570/hand-sanitizer-market.html.

Kalkine Media. (May 12, 2020). Zoono Group Limited (ASX: ZNO) news and stock price. Kalkine Media. Retrieved May 12, 2020, from https://kalkinemedia.com/au/companies/industrial/zno-zoono-group-limited.

Nicholas, L. (May 05, 2020). Zoono reveals prosperous April driven by mounting demand for patented sanitisers. Small Caps. Retrieved May 12, 2020, from https://smallcaps.com.au/zoono-prosperous-april-mounting-demand-patented-sanitisers/.

SkyWest Media. (June 23, 2017). Managing strategic direction. Putting the Puzzle Together: Strategic Direction Using the Opportunity Matrix. SkyWest Media. Retrieved May 12, 2020, from https://skywestmedia.com/managing-strategic-direction/.

World Environmental Technologies. (2020). About Zoono. World Environmental Technologies (WET). Retrieved May 12, 2020, from https://worldenvirotech.com.au/zoono-product/.

Zoom Information, Inc. (2020). Zoono Group Limited. Zoom Information, Inc. Retrieved May 12, 2020, from https://www.zoominfo.com/c/zoono-group-limited/355739820.

Zoono. (2020). Advanced antibacterial hand & surface sanitiser. Zoono. Retrieved May 12, 2020, from https://zoono.com/.