*ZAA ENTERPRISES

ZAA Enterprises is a manufacturer of deodorant/anti-perspirant, feminine wash,

foot spray, shampoo, hypo-allergenic soap, herbal soap, germicidal soap and
astringent/ facial lotion. All these products are marketed in the Philippines under
the brand name Natures Touch.

The choice of the brand name was inspired by the fact that most of the companys
products are made with ingredients derived from natural materials. The materials
include alum, a mineral derived from the soil; gugo, scientifically known as
Entada Phaseoloides that contains sapon, a powerful hair cleansing agent; aloe
vera, extracts from papaya, cucumber, avocado, radish and pineapple. It is for this
reason that Natures Touch products are marketed as the superior alternatives to
synthetic cosmetics.

Natures Touch products, mainly deodorant/astringent, soap and shampoo, have

recently found their way to foreign markets without any concerted, official
marketing effort by the company. They have been exported to Saudi Arabia,
Hawaii, Guam, Dubai, U.S.A., Canada, Singapore, Malaysia, Brunei, Taiwan, and
South Korea.

ZAA president, Dr. Zosimo A. Acha, a medical physician-surgeon, said foreign

markets learned about his companys products through Filipinos who carried
Natures Touch items when they traveled abroad. Foreign buyers who visited the
Philippines learned about the products through print ads. Others would walk into
ZAA office after they had bought ZAA products from the local supermarkets. The
doctor-entrepreneur said ZAA had participated in only three international fairs, one
held in Manila in 2011 and two held in Hongkong in 2012 and 2013. Brochures
and other product literature were all that ZAA gave to importers as promotional
materials.

Export sales of the company have been increasing since 2011. In 2013, export sales
had risen to 20-25% of domestic sales.

While export sales had increased, ZAA continued to encounter problems in

packing due to mishandling by domestic handlers, despite its adherence to correct
labeling of cartons. At the same time, it could not comply with requests from
certain importers for more classy containers like expensive-looking glass bottles

*Adapted from Export Marketing: Going Global, by Renato S. Esguerra and Luz T. Suplico;
Portions of original case including names, places, and dates have been adapted and disguised to
suit the learning objectives. FOR CLASSROOM DISCUSSION ONLY.
considering the rising cost and lack of assurance of quantities to be purchased by
these importers. Right now packing cost would run from 20-25% of total product
cost.

Even as the domestic sales of ZAA Enterprises have been going up, Dr. Acha has
found the lure of the international market quite irresistible.

GUIDE QUESTIONS:

1. How would you assess its products potential in the foreign markets?
2. If you were ZAAs export marketing manager, how would you direct its
international marketing operation?
3. What would you do with the proper handling of packaged products by
domestic handlers? How?
4. Should ZAA comply with some prospective importers requests for more
classy or expensive bottles? Why?
5. Will it be better for ZAA to concentrate on the international market and
leave the domestic market? Or will it be better to just concentrate on the
domestic market and forget about the international market?

*Adapted from Export Marketing: Going Global, by Renato S. Esguerra and Luz T. Suplico;
Portions of original case including names, places, and dates have been adapted and disguised to
suit the learning objectives. FOR CLASSROOM DISCUSSION ONLY.