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Kolbey Ross-Levy | Hannie Tran | Mary Nguyen | Zainab Lakhani
Global Information Systems Plan | April 22nd, 2015 | BIS 20263 – 080
Vita-Herb Organics
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Table of Contents
Executive Summary.......................................................................................................................................3
Background ...............................................................................................................................................3
Recommendations....................................................................................................................................3
Company Background...................................................................................................................................5
Product/Service Description .....................................................................................................................5
Mission Statement....................................................................................................................................5
Locations in the United States..................................................................................................................5
Current Strategy........................................................................................................................................5
International Expansion................................................................................................................................6
Location Recommendation.......................................................................................................................6
Challenges in the Expansion of Information Systems...............................................................................6
Recommendations for Implementing Information Systems ....................................................................7
Industry Research .........................................................................................................................................7
Local..........................................................................................................................................................7
Global........................................................................................................................................................8
Collaboration Strategy ................................................................................................................................13
Enterprise Wide Systems ............................................................................................................................13
Enterprise Resource Planning (ERP)........................................................................................................13
Customer Relationship Management (CRM)..........................................................................................14
Social Media Strategy..................................................................................................................................14
Facebook.................................................................................................................................................14
Twitter.....................................................................................................................................................15
YouTube ..................................................................................................................................................15
Instagram ................................................................................................................................................15
LinkedIn...................................................................................................................................................16
Mobile Application Strategy .......................................................................................................................16
Usage Appropriateness...........................................................................................................................16
3 Mobile Application Functionality Ideas ...............................................................................................16
Best Usage Idea.......................................................................................................................................16
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Executive Dashboard ..................................................................................................................................20
Applicability.............................................................................................................................................20
Options....................................................................................................................................................21
Security Systems .........................................................................................................................................22
Security ...................................................................................................................................................22
People .....................................................................................................................................................22
Hardware and Software..........................................................................................................................22
Data.........................................................................................................................................................22
Porter’s 5 Forces Model..............................................................................................................................23
Team Member Contributions .....................................................................................................................24
Bibliography ................................................................................................................................................25
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Executive Summary
Background
Vita-Herb launched operations in the United States in 2010 and has grown quite rapidly since then.
Through existing research and development Vita-Herb has made substantial improvements in the
organic supplement market. This success has been measured through continuous positive customer
feedback, including external ratings and periodicals. Also, vigilant analysis of various databases
shows stable growth in the VMS (Vitamins, Minerals, and Supplements) market sector.
Vita-Herb has accomplished phenomenal results with its all-natural, organically compounded,
stress relieving supplement, leveraging product availability to a wide range of customers. The
company’s focus has been understanding customers’ needs while keeping perspective with current
market trends. A simultaneous analysis of both customer demand and the vision of Vita-Herb has
exemplified a unique product with superior health benefits.
Each product features market-friendly packaging and distinctive labeling with directions on the
package, along with insertions of educational literature. All suppliers are screened thoroughly and
held to the utmost standards to assure quality and customer satisfaction. 1
Recommendations
Vita-Herb should continue its product growth through e-commerce. In addition, Vita-Herb could
benefit from gradually increasing its presence via “show rooming” at designated locations.
Through research, we have precisely identified the target market which best suits the supplement,
greatly reducing the associated risks of failure. The primary objective is to establish presence in a
large city with a vast majority being health conscious consumers. Social Media will also have a
significant role in introducing this product internationally. Launching promotions via Twitter and
Facebook will allow the company to form brand recognition for its elite consumer subdivision.
The following steps are strong indicators for long-term success:
1) Effectively documenting business processes
a. Illustrating the logistics for Vita-Herb’s supply chain process
i. The chain of raw materials to the finished product
b. Illustrating flowcharts for all procedures, budgets, and potential growth
c. Building organized checklist(s) for the hierarchies in the operations sector
d. Collaboration of internal/external feedback
i. Frontline employees
ii. Retailers
iii. Consumers
2) Performing a SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis
a. Conducted semi-annually to ensure precise planning
1
Certified professionals perform random inspections on a semi-monthly basis.
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b. Analyzing both external and internal factors relevant to Vita-Herb’s future
performance
i. Efficiently utilize resources to gain a competitive advantage
1. Interchanging weaknesses to an advantage for Vita-Herb
a. Maximizing profit/growth potential
ii. Improve operations in the supply chain with an aggregate production plan
1. Build an infrastructure plan to match the demand forecast
iii. Analyzing risks
1. Timely research on competitor’s product(s)
2. Understand/prepare for environmental factors such as recession
3) Analyzing local data with corresponding statistics in Australia’s market
a. Market sales, sheer volume of transactions, and consumer ratings for supplements
i. Pioneering information system used to process, interpret, analyze consumer
data
4) Outsourcing Vita-Herb’s Logistics in Australia
a. Bright star Australia, 3PL (third-party logistics)
i. Cost reduction for Vita-Herb
ii. Improve productivity
iii. Efficient processes throughout Vita-Herb’s supply chain
5) Ongoing integration of the e-commerce platform (Shopify)
a. EFT’s (electronic funds transfer)
b. Internet marketing
c. Processing transactions online
d. Business-to-business EDI (electronic data interchange)
e. Inventory management systems
f. Mobile commerce
g. Supply Chain Management
6) Establishing a physical footprint
a. Marketing via samples with Organic retailers
i. Foodies Organic Supplies
ii. Wholefoods House
iii. Eco Farms
iv. Earth Food Store
v. Organic Trader
vi. Honest to Goodness
vii. The Organic Grocer
viii. Taste Organic
b. Providing customized discounts on specific orders
7) Focusing marketing efforts on a niche market segment
a. Reducing the associated risks of failure
8) Minimizing expenditures through minimal channel intermediaries
a. Direct channeling (website orders)
i. Vita-Herb to customer
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b. Retailer channel
i. Vita-Herb to retailer to consumer
Company Background
Product/Service Description
Vita-Herb is an industrialized manufacturer that provides a unique nutritional supplement. This
product is sanctioned by the USP (United States Pharmacopeia), and consists of three active
ingredients: chamomile, ashwagandha, and passionflower. The purpose of this supplement is to
relieve stress without introducing any type of prescription drugs or chemicals into the body. An
all-natural approach is not only geared towards safety, but, also is beneficial in various aspects for
the body. An herb like ashwagandha not only relieves stress, but it is a powerful antioxidant. This
product is optimal for boosting energy, reducing anxiety, and alleviating stress. Notably, Vita-
Herb is also certified by the NSF (National Sanitation Foundation) for its well-rounded product.
The ingredients have been thoroughly examined with extensive research, and they are successfully
proven to effectively manage stress.
Mission Statement
Vita-Herb’s purpose is to implement research with cutting-edge technology, and Vita-Herb
promises to deliver optimal results in developing and improving certified organic remedies for
stress relief, without compromising quality, and ensuring both purity and safety of the product.
Locations in the United States
The success at Vita-Herb has resulted in expansion from California to all fifty states via e-
commerce. There are a total of four state-of-the-art facilities located in the United States, with
dispersed volume based on the market demands. The primary location originated on the West coast
of Woodside, California. The remaining three facilities are located in Scarsdale, New York, Indian
River Shores, Florida, and Piney Point Village, Texas. These locations were selected after carefully
analyzing consumer demographics. The databases indicated that these particular states had the
highest levels of income among the top ten states. The effective forecasting and demand planning
has led to intense decision making for global expansion, and, the fifth official location of Vita-
Herb will be built in Sydney, Australia.
Current Strategy
Vita-Herb produces a superior product with prestige pricing. We target organic retailers and
consumers who can associate price with quality, parallel to our differentiation strategy. Thus,
catering to a niche market is ideal for Vita-Herb. These exclusive herbs are primarily for health
conscious consumers who value their health and emotional wellbeing. Our extensive scholarly
research alongside the all-natural herbs gives Vita-Herb a competitive advantage. Therefore, Vita-
Herb puts more emphasis on institutional advertising to enhance the company’s image, in lieu of
the actual product.
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The word-of-mouth strategy is heavily used and is the preferred method due to the trust associated
among buyers. Product exposure is indeed subtle; however, it is a valuable long-term strategy that
yields extraordinary returns with continuous growth. Depending on the various stages of the
product life-cycle, a push-strategy (personal selling and trade advertising) is moderately used for
retailers, however, it does lessen as band loyalty increases. Publicity of the company’s image along
with educating the consumers is a significant promotional tool used to increase brand awareness.
More so, the revenue is positively correlated with public relations (PR).
International Expansion
Location Recommendation
The philosophy of Vita-Herb has constantly been a challenge to maintain, but not impossible. In
e-commerce today, the sky is the limit for manufacturers. However, only a distinctive product with
abundant value can drive the optimal results. For further growth, Vita-Herb has felt the need to
expand its market while integrating new technology through a mobile application.
After careful analysis and research on various markets, Australia certainly has a rising demand for
our product. There is sufficient data that indicates Sydney, Australia is indeed the ideal location
for the global expansion of Vita-Herb. It is a country which is rapidly growing and embraces
innovative products. Australia is one of the leading nations with a strong emphasis on health and
wellness. Consumers’ preferences for organic supplements are remarkably high in demand. In
addition, Australia’s economy has great potential for growth, and Vita-Herb can cater to its needs.
It is ranked among the top three countries for high levels of stress; therefore, the economy has
potential for both adaptability and affordability for Vita-Herb’s elite product.
Challenges in the Expansion of Information Systems
Global expansion of Information Systems is a constant challenge; however, it is essential to
embrace these challenges while keeping the market in perspective. We anticipate that we will
encounter several challenges such as cultural barriers, diverse currency, and government
regulations when implementing a new system. Above all, mitigating the risks associated with data
breach is a complex issue which will need to be addressed upfront. Among these many challenges,
maintaining consistency throughout the operations will be key.
Along the lines of information security, there will be risks associated with theft of information,
including intellectual property and research data. SAP systems are indeed well-rounded and
interconnected; however, security is not attained by default. Careful thought and analysis must be
used to integrate Vita-Herb’s business processes with its overall risks and compliance objectives.
Or else, enterprise risks can also entail theft of customer information.
An important aspect to manage closely will be the dynamic changes in computer technology. The
dynamically changing technology can have an immense impact on the operations. These strains
are both technical and social. In addition, pressures will exist in attempting to see eye-to-eye with
executives in diverse cultures, and construing the different laws and regulations. Another example
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would be contradictory standards in terms of implementing flexible solutions for
telecommunications.
Successfully managing and implementing ERP (enterprise resource planning) is vital for the
company’s existence. Managing costs will be a major challenge with the global expansion. Costs
will be incurred when purchasing hardware and establishing an infrastructure.
Recommendations for Implementing Information Systems
Based on the usage and sharing of information, a possible solution to this ongoing challenge would
be to outsource particular areas of the operations. This can resolve many issues and prevent
complications for the organization. This strategy would ensure long-term success and also reduce
overhead costs for the organization.
With the advancements of technology, the risk of information security surges. The security of
information has become an utmost challenge; nonetheless, this factor is inevitable. Using cloud
storage for information and data has become convenient and less expensive, as it reduces the costs
associated with investments and hardware. The benefits of cloud technology does outweigh the
associated risks.
An innovative solution is to bring about cloud manufacturing ERP. This groundbreaking
technology of ERP, Plex, delivers management of the entire ERP infrastructure via cloud
manufacturing, around the clock availability, and concrete security; notably, this information
system will eminently reduce costs for Vita-Herb. A secure organizational structure will be created
with minimal costs.
It is also vital that the company adapts lean-manufacturing processes. This will be acquired through
appropriate measurements in operations of quality and productivity. The focus will not only be the
results, but also digging deep in the roots of developments. This method will help the company
identify problems, understand the difficulties, and ultimately reduce the potential risks associated
with waste and failure. Keeping track of the progress step-by-step along with a contingency plan
will ensure an effective business process via information systems.
Currently, Vita-Herb uses PeopleSoft – Enterprise Demand Planning. This software is used to
ensure accuracy in forecasting and demand planning. However, the next step would be to
implement a JIT (just in time) inventory strategy. Implementing the data derived from the
information systems would reduce inventory costs and allow resources to be used more efficiently.
Industry Research
Local
Vita-Herb’s success in the United States among the vitamins, minerals, and supplements (VMS)
industry involves an intricate analysis of our own performance as well as that of our competitors.
We have thrived in the United States because our product offers customers a boost in their overall
well-being, all from a single dose. We have experienced a steady growth in the market, even as
consumer skepticism and efficacy increase simply because we have a client-base that has always
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believed in a healthy lifestyle but wants to take that lifestyle an additional step forward. Amongst
our major competitors are other corporations that sell products in the form of a supplement that
increase overall health. We also recognize that one of our potential competitors within the VMS
industry is that of specific food and beverages infused with vitamins or minerals. One major
example would be Yoplait, a company that now produces dairy products with added Vitamin C,
D, and probiotics. While Vita-Herb currently does not have an affiliation with an edible product
corporation, we serve a market that we believe seeks a physical, health related supplement. A
major threat in our industry is the widespread movement to overall healthy eating in which people
no longer feel they need a supplement. However, Vita-Herb feels that our market has always
strived for the healthy life style; therefore, this will not have a vast impact on our consumers. One
of the major trends within the industry is a growing number of people over the age of 50 that seek
supplemental products to ensure optimal health.
At this period of time, the VMS industry can be considered in the middle of the growth and
maturity life cycle. The desire for supplements and an overall healthy lifestyle became popular in
the late 90’s and early 2000’s; therefore, the VMS industry as a whole is in the maturity stage. We
chose to classify the industry in between growth and maturity because while the desire to be
healthy has been prominent for multiple decades, the desire for a stress-relieving supplement is
new, classifying that specific segment of the industry as being in the growth period.
Global
When analyzing the VMS industry across the globe, Vita-Herb believes that Sydney, Australia has
the most similar consumer base to that of our industry here in the United States. Sydney, Australia
has an increasing number of individuals with disposable income (specifically adults over the age
of 50), making our high priced supplement an affordable health related investment. The population
within Sydney has a growing demand for supplemental health products. Therefore, Vita-Herb
believes that when expanding globally, Sydney should be our first established branch. The key
competitors in Sydney currently have well-developed brand acknowledged products that much of
the healthy portion of the population trusts. This poses a slight challenge for Vita-Herb to gain
customer loyalty, though we are confident that our product will quickly gain a large following.
Key competitors in Sydney are not as strong in advertising their products as the corporations in
the United States, which would make Vita-Herb’s marketing strategies significantly more effective
and ultimately propel our product to the top of the market. This particular location has a VMS
industry that is also in the growth and maturity stage, making it an appropriate place to sell our
product. In the future, our company could pursue markets such as that of the United Kingdom
because of their similar interest in health improving supplements.
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2
Among the leading suppliers for the VMS (Vitamins, Minerals, and Supplements) market, the
sales for Vita-Herb have slightly decreased; however, the overall market share remains at 30.5%.
Vita-Herb falls in this particular category and holds close to 16% of the market share.
2
Mintel | VMS Report
Vita-Herb
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Mintel | VMS Report
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In the chart above, sales are represented among the various types of supplements. The sales for
herbal supplements are not as large due to Vita-Herb’s unique market; in addition, the sales from
Whole Foods is not represented in this analysis. Wholefoods represents nearly 29% of the sales
for Vita-Herb.
Vita-Herb
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4
Mintel | VMS Report
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Referring to the chart above, the sales of supplements are represented for two consecutive years.
After performing a competitor analysis, the sales for Vita-Herb have been consistent overall. The
sales have surpassed the leading competitors in the supplement market including Nature’s Bounty,
Living Essentials, and Natrol.
Vita-Herb
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Business Process Model
This process model captures the essence for Vita-Herb as a whole. To better visualize the activities
in the process, a swimlane format is used. An added benefit to this particular format is being able
to identify where delays occur to ensure efficiency. The entire process is initiated by the buyer and
is either accepted or rejected based on the requirements. If all criteria has been satisfied, the
message is communicated to the “fill order” stage. At this point, the order is filled, shipped, and
an invoice has been generated. Once a payment has been made and processed, there is a “parallel
gateway.” This means that there is no dependence of any particular events or conditions. Accepting
a payment and shipping an order are simply two parallel tasks being performed independently.
This is an overview of the steps necessary to efficiently process and complete orders.
Collaboration Strategy
Vita-Herb understands that in order to successfully implement the globalization of our product, we
must develop specific collaboration tools. The major collaboration tool that Vita-Herb will
integrate into daily business activity is that of SharePoint. SharePoint will be required for all of
our current and future offices and will provide a multitude of significant functions. Firstly,
SharePoint will provide access to documents necessary for daily business activities that can be
accessed by branch offices at any given time. This will not only eliminate unnecessary
communication but will also provide a tracking system that insures documents do not get lost.
Secondly, SharePoint will serve as a medium to provide feedback between offices, and,
communicate to areas that may have weaknesses along with different strategies for improvement
(specifically through the discussion board). SharePoint will also provide the opportunity to
administer different tasks and track the status of the particular designated tasks at any given period
of time. Vita-Herb feels that the implementation of SharePoint will create communication across
employees that will allow for a more meaningful experience, initiate the growth of team capability,
as well as make work that may seem monotonous, interesting.
Enterprise Wide Systems
Enterprise Resource Planning (ERP)
While Vita-Herb recognizes that we currently are too small for ERP implementation, we have
chosen to consider two distinct EWS alternatives that may be developed as the company expands.
The first Enterprise Wide System analyzed for the company was that of Oracle. Oracle would be
an appropriate system for Vita-Herb because it can be formatted for smaller companies. The
adaptation of our current systems to this particular system could occur at an early period of time
allowing the company to begin using an Enterprise Wide System and adapting to it prior to major
growth. Another key benefit of Oracle is the ability to purchase system capabilities based on need,
which could help save a significant portion of money. When evaluating the weaknesses of Oracle,
Vita-Herb realized that Oracle is highly complex and therefore difficult to use (which would in
turn require expensive training for all employees.)
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Upon realizing that the physical training of employees would be costly, Vita-Herb explored an
additional EWS option. After extensive research, Vita-Herb feels that the best Enterprise Wide
System to implement would be SAP. SAP would allow over 15,000 tables of information to be
stored and then later accessed by all branch offices through the “cloud.” SAP is currently the
largest Enterprise Wide System and would provide Vita-Herb the opportunity to compete with the
top competitors in the industry. Vita-Herb discovered that even though SAP would be a highly
expensive system to incorporate, ultimately it would be an investment that could be utilized and
altered throughout the company’s lifetime.
Customer Relationship Management (CRM)
Vita-Herb explored two unique customer relationship management systems. The first option
explored was that of GoldMine. GoldMine would be an appropriate option for Vita-Herb
specifically because it was originally designed for small businesses. GoldMine has the ability to
track sales, create specific schedules, and analyze different types of data. This would aid in a
smooth transition into the global VMS market because it would allow for all customer information
across the different branches to be stored in one area.
Although GoldMine has a large number of users, our team also analyzed the CRM program of
SalesForce. After extensive research on SalesForce, it became clear that we should move away
from GoldMine. SalesForce would allow for the utilization of the cloud, as well as social media
when documenting and analyzing existing and potential future customers. The use of SalesForce
would provide Vita-Herb with the opportunity to be competitive with major companies currently
in the industry by allowing the launching of campaigns with the best technology available.
Vita-Herb recognizes that while SalesForce has a significant number of benefits, it also can be
challenging to implement due to the need of user training. SalesForce is an object-based database
that requires users to input information in a specific format. SalesForce can also be relatively
expensive, especially if the purchased package includes the maximum program functions. While
the user training and program expenses can be steep when purchasing SalesForce, our team
believes it will provide the best CRM as we become a global corporation.
Social Media Strategy
Vita-Herb will use popular social media channels to communicate directly with customers. It will
give our company an opportunity to share news and promotions. Notifications will automatically
pop up on a customer’s phone screen whenever the company updates and posts information,
building both brand awareness and customer relationships.
Facebook
Facebook remains a leading social network, with a record breaking one billion active users in 2015.
With Facebook users being very diverse in terms of age, education level, and interests, promotions
on Facebook can help Vita-Herb to target the right customers. We plan to create our own fan page
as a gateway to communicate with customers. Our main purpose is updating news and promotions
about our products; our approach will be conveying stories shared by customers and fun facts
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relating to products. Moreover, we want to create Vita-Herb’s Facebook fan page as a forum where
people with common concerns about stress relief can share their opinions and experiences. To
increase the interaction between company and customers, we will organize mini games and give-
away contests to trigger motivation for customers to interact on the page regularly and involve in
the page regularly. Facebook enables us to do market in many ways. For example, through
Facebook, Vita-Herb can use graphics, pictures, or videos to post on our timeline. Additionally,
customers can be informed about the new product-launching event or local sales count down event.
All necessary information will be posted on the event page. One of the most important keys in
implementing digital marketing and e-commerce is customers’ review. With many credible
reviews from customers, we can build trust and establish a grounded customer relationship even
before they buy our products. Another great tool Facebook can provide us is paid advertisement
by creating sponsored posts, which will appear on any targeted audiences’ news feed who fit our
products preferences. Vita-Herb can track data from Facebook sites through applications and tools
Facebook provides for the company.
However, there is always a downside with communicating freely. People leave negative
comments. We can take advantage of these to improve our products, understand our customers’
preferences better, but we also need to control these disadvantages to a limited quantity to keep a
good image of Vita-Herb.
Twitter
Twitter is a social media platform for quick updates and short announcements. Vita-Herb can tweet
promotions and discount codes for their customers, ultimately leading to tweets spreading among
numerous networks. This is the fastest way of branding for Vita-Herb because of its fast moving
news stream. We can also generate a hashtag #vitaherbstressrelief to collect customers’ opinions
and stories. Similar to Facebook, Twitter has a large amount of users that will help us reach a wide
range of people over the social media. However, Vita-Herb’s posts and updates can easily get lost
amongst the accumulating information being displayed on Twitter’s network.
YouTube
Due to Vita-Herb’s emphasis on health and wellness, a vivid and clear explanation of how the
product works and how to use the product is essential to communicate to the consumer. YouTube
is known as the most popular video sharing channel amongst other mediums. Therefore, Vita-Herb
will produce creative videos by providing illustrations and posting this material on their YouTube
channel. These videos will help Vita-Herb visually convey details and help consumers understand
the packaged literature. Through these YouTube videos, customers will be able to gain knowledge
about Vita-Herb’s products. From this acquired knowledge, customers will be able to share these
videos among different media channels, as well as ask questions and provide feedback.
Instagram
Instagram is the new social media channel focusing mostly on sharing photos. The number of its
users is increasing rapidly over time. Instagram helps to increase the use of hashtag which groups
a collection of thing under the same category. Vita-Herb can create a hashtag #vitaherbstressrelief
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on Instagram to keep track of customers’ opinions and reviews. Also, our company plans to create
photos that have positive energy, optimistic view to trigger customers’ favor in the product through
image association and personal relation. Moreover, we will input motivating quotes on these photo
to show our support towards the customers by encouraging them in all aspects.
LinkedIn
Because Vita-Herb wants to expand business in Australia by looking for more potential retailers,
LinkedIn will be the best gateway to connect and reach out to retailers. As a professional platform,
LinkedIn has potential distributors and retailers’ contact points for our company. By using the
information provided on this site, we can conduct a thorough research about these potential
partners and get in touch with them easier through emails and messages. LinkedIn enables us to
expand wholesale and gain more reliable connections.
Mobile Application Strategy
Usage Appropriateness
Because smartphone plays a big role in people’s daily habit, a mobile application will enable
customers to connect with Vita-Herb easier and faster. We want to build our application as a
mentor and a friend of our customers. We want to develop three sections within our application so
customers can rely on it whenever they use our products. This app will serve not only as a gateway
to keep in touch with the company but also a go-to guide for stress relief.
3 Mobile Application Functionality Ideas
Vita-Herb is a well-known industry by its name and its mobile application. This application will
be user-friendly among its innovative technology. We will utilize graphics, charts, and information
graphics to allow our customers to experience a multitude of relevant data. We aim for simplicity
and convenience while building an application to encourage daily use by customers. First of all,
Vita-Herb will create a forum in which individuals can share their inspirational stories concerning
stress relief. Additionally, we will update posts in regards to motivating facts, helpful links,
infographics, and current statistical data, all in correlation with stress. By accessing this section
customers will gain useful knowledge for stress reduction, and feel accompanied throughout their
journey. This creates an encouraging environment for people to overcome factors associated with
stress. The second section is about company updates of new products, promotion code and all
other things relating to Vita-Herb. Customers will find detailed description about products
including ingredients, price, shipping methods and reviews. From this site, they can add product
to cart and check out to buy products online from anywhere in the world. Last but not least, Vita-
Herb’s app can be served as personal treatment program. This section will become a guideline
for each customer to reduce stress based on treatments generated from personal experiences. They
will input their daily habits to enforce a balanced schedule between work and personal life.
Best Usage Idea
The most significant purpose for creating the application is to personalize the customer experience,
by establishing a personal treatment program.
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Detailed Functionality Description
The personal treatment program is the key factor differentiating Vita-Herb from other competitors.
We want to use this section as a personal tracking device to kindly remind customers to take the
pill regularly for a better outcome. Specifically, we want our customers to use this application to
track the amount of time they spend on work, sleep and play or exercise to determine whether or
not they are living a balanced life. We want to collect all of the information such as allergies,
occupation, and other stress indication factor a person has. From these data, our application can
tell the reasons why this customer suffers stress in order to advise the correct supplement as well
as an appropriate schedule.
Benefits of a Mobile Application
The implementation of mobile application helps our customers to track their progress on stress
reduction. We create friendly reminder pushing pop-up notifications on smartphone. Customers
will see a scheduled time for pill taking and get up-to-date promotion codes. They will feel inspired
even though they’re under stress due to encouraging accompanies and motivating quotes. They
will gain better knowledge about stress and stress reduction. Lastly, mobile app will allow
customers to place and check out orders easily regardless of location.
As this mobile application is launched, we will gain a huge advantage compare to other competitors
because we can expand locally and globally. Our company will grow exponentially with wholesale
and distributors expansion. We will reach a large group of people and target customers from
anywhere. This app also gives executives a better vision of our company progress while we enter
a new market.
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5
5
Como | Mobile App Design
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6
6
Como | Mobile App Design
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Executive Dashboard
7
Applicability
Selling a consumer purchased product in an ever changing and expanding market, it is critical for
Vita-Herb Organics to track daily activity as well as the market as a whole. For these particular
reasons, our team would recommend an executive dashboard that would allow the tracking of this
7
Executive Dashboard
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information. The strategically generated executive dashboard presented above will allow
information regarding sales, stock and competitors to be watched closely especially while we plan
on expanding into the global market.
Options
The dashboard contains a variety of information that provides insight on sales, the value of
corporate stock, inventory, and our competitors in the VMS industry. This information can be seen
in the forms of charts, tables, graphs, gages, and a map.
The Quarterly Sales graph represents the amount of sales that occurred at specific period of time.
The faded line on the graph is representative of forecasted sales while the solid blue line depicts
actual sales. This allows the company to see the accuracy of our forecasting at any given period of
time in comparison to the actual sales revenue value.
The Key Performance Indicators and Performance vs. Quota table provides information about the
company’s sales revenue goals and compares them to the current and previous quarters as well as
analyzes sales per branch. This table is essential to understanding if the company is meeting the
set sales goals as well as if they are exceeding sales in the previous quarter by location. The branch
locations are represented by the name of the branch manager’s names.
The three gages at the bottom of the dashboard include Stocking Level, Stock Average, and
Number in Stock. This allows the managers and executives to track the amount of product is
currently in stock, the average price of the stock in the stock market, and the number of shares
currently dispersed amongst the market.
The Top 5 Companies table organizes the top five companies in the VMS Industry and the value
of their market share currently. Tracking this information on the dashboard will allow executives
to see which companies are excelling in the market. After recognizing these specific companies,
the executive can do research and find out why those specific companies are more profitable.
The Product Stock Levels will track the stock of our products in retailers in comparison to that of
competitors. This will allow the executives to see how our product is selling in comparison to
competitor products of a similar purpose. While monitoring this information, executives can
discover which retailers are the most successful at selling our product.
The Quarter’s Purchases by State map will provide a visual presentation of product sales by state.
This will allow executives to view how profitable each state is and as we globally expand, we can
also monitor our global success.
Vita-Herb Organics
22
Security Systems
Security
A successful expansion of Vita-Herb will require the implementation of security on all levels of
its information systems. Security breaches are one of the biggest problems corporations face in
today’s technological environment and can result in significant monetary consequences, and a
decrease in customers. It is highly recommended that Vita-Herb implements thorough security
measures placing emphasis on people, data, hardware, and software.
People
We need to recruit employees with an ethical background whom we can entrust sensitive
information pertaining to the company. Employees’ will require training on how to handle
confidential information and maintain security; in addition, they will be asked to sign an agreement
ensuring security and confidentiality. For any problems that may arise, the necessary steps will be
taken promptly to resolve the issue at hand. At that point, we would also inform all employees
associated among the shared database; and, have the IT department assess the issues, these steps
will aid in preventing and resolving any issues which may arise. A system of procedures must be
incorporated to enforce the company as a whole in following standardized processes and
procedures when sending and receiving information.
Hardware and Software
All employees’ of the company who would like to access the integrated database will require
authenticated credentials. Creating intricate passwords is one of the most basic, yet, significant
processes for authentication. Employee passwords will need to meet security requirements.
Nonetheless, Vita-Herb should use other forms of authentication such as smart cards and
biometrics. As a result, access to the company's computer systems will be restricted; and, lower-
level employees will not have the same privileges as the executives.
Additional measures will include the use of a firewall for the company’s network; this technique
will prevent illegal hacking and unauthorized access. In addition, the usage of malware will
provide protection for both the hardware and software. Viruses can have a vast impact on database
systems, and can lead to adverse consequences; therefore, to secure systems at all levels an
antivirus and antimalware will be installed in every unit, and kept up-to-date with the newest
version. As mentioned earlier, employees will be held liable to follow rigorous procedures to
prevent any sort loss or damage to the information systems.
Data
To ensure the safety of Vita-Herb’s database, the backbone of the information system, additional
security measures need to be in place. If data got leaked, important information relating to
employees and customers such as social security numbers and credit card information would be at
risk. This would put the company in a position where there could be severe monetary
consequences. Therefore, we need to install key escrow. Certain data will be assigned to specific
employees only. Privileged information will require data rights approval. Lastly, a cloud based
Vita-Herb Organics
23
system need to be in place to back up company information on an hourly basis to prevent
significant losses due to power outages or other disruptions.
Porter’s 5 Forces Model
Power High Low Justify
Buyer x The buyer power is considered high because the VMS
industry consist of a large variety of products with
prices that vary. As a high priced supplement, our
product may be compared to a less expensive option
with similar benefits. Being a supplemented product,
Vita-Herb Organics recognizes that while our product
can be beneficial to the entire population, it is not
necessary to survive.
Supplier x The supplier power is low mostly because the raw
material ingredients can easily be purchased from
different suppliers. The labor for the product is also not
highly specialized as it is typically done with
automated systems, making the need for skilled labor
low.
Threats of Substitute
Products
x The threat of substitute products is high in the VMS
industry because of the number of similar products in
the current market at a lower price (price sensitivity).
Vita-Herb Organics is also a specialty product and is
currently only available in specific locations. This could
lead to potential customers purchasing an alternative
product simply because of convenience.
Threats of New
Entrants
x Entering the supplement market is a challenge for all
firms because of the strict government policies that
require product approval. This makes the threat of
new entrants low particularly because it is difficult to
comply with all government enforced standards.
Developing customer loyalty is also difficult in the
supplement industry because of the overwhelming
number of brands in the industry today.
Rivalry Among
Existing Competitors
x The rivalry among existing competitors is currently high
because of the large numbers of competitors in the
industry. With the high number of competitors and a
low level of product variation, advertising has become
crucial in order to stand out from alternative brands.
Competition that occurs between e-commerce and
brick and mortar stores has also led to an increased
rivalry amongst existing competitors.
Vita-Herb Organics
24
Team Member Contributions
 VHO Written Plan | Social Media Strategy, Mobile Application Strategy, &
BPM
Hannie Tran
 VHO Written Plan | Industry Research, Security Systems, & 5 Forces Model
Mary Nguyen
 VHO Written Plan | Executive Dashboard, Collaboration Strategy, &
Enterprise Wide Systems
Kolbey Ross-Levy
 VHO Written Plan | Executive Summary, Company Research, &
International Expansion
Zainab Lakhani
Vita-Herb Organics
25
Bibliography
Database, Natural Medicines Comprehensive. Passionflower. 1 January 2009. 15 February 2015.
<http://www.webmd.com/vitamins-supplements/ingredientmono-871-
passionflower.aspx?activeingredientid=871&activeingredientname=passionflower>.
Jacobsen, Lauren. 5 Supplements To Control Cortisol. 17 September 2013. 15 March 2015.
<http://www.fitnessrxwomen.com/nutrition/supplements/5-supplements-to-control-cortisol/>.
Kiefer, Dale. Ashwagandha Stress Reduction, Neural Protection, and a Lot More from an Ancient Herb. 1
June 2006. 15 February 2015. <http://www.lef.org/magazine/2006/6/report_ashwa/Page-
01?checked=1>.
Kiefer, David. Vitamins and Supplements Lifestyle Guide. 3 November 2014. 15 February 2015.
<http://www.webmd.com/vitamins-and-supplements/lifestyle-guide-11/supplement-guide-
chamomile>.
Kroenke, David M. Experiencing MIS. Vers. 5th. 1 January 2014. 1 March 2015.
<http://www.pearsonmylabandmastering.com/northamerica/mymislab/>.
Krol, Emily. Vitamins, Minerals, and Supplements . 1 January 2013. 1 March 2015.
<http://academic.mintel.com.ezproxy.tcu.edu/display/679768/>.
Profiles, U.S. Business Environment. Healthy Eating Index. 1 November 2014. 15 April 2015.
<http://clients1.ibisworld.com/reports/us/bed/default.aspx?bedid=64>.
—. Number of Adults Aged 50 and Older. 1 May 2014. 15 April 2015.
<http://clients1.ibisworld.com/reports/us/bed/default.aspx?bedid=19>.
Ronen Shilo, Dror Erez. Como. 1 January 2015. 19 April 2015. <www.como.com>.
Story, Colleen M. Food Matters. 30 March 2014. 15 February 2015. <http://foodmatters.tv/articles-1/5-
herbs-to-calm-anxiety-without-being-drowsy>.

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Vita-Herb Organics Global IS Plan

  • 1. Kolbey Ross-Levy | Hannie Tran | Mary Nguyen | Zainab Lakhani Global Information Systems Plan | April 22nd, 2015 | BIS 20263 – 080
  • 2. Vita-Herb Organics 1 Table of Contents Executive Summary.......................................................................................................................................3 Background ...............................................................................................................................................3 Recommendations....................................................................................................................................3 Company Background...................................................................................................................................5 Product/Service Description .....................................................................................................................5 Mission Statement....................................................................................................................................5 Locations in the United States..................................................................................................................5 Current Strategy........................................................................................................................................5 International Expansion................................................................................................................................6 Location Recommendation.......................................................................................................................6 Challenges in the Expansion of Information Systems...............................................................................6 Recommendations for Implementing Information Systems ....................................................................7 Industry Research .........................................................................................................................................7 Local..........................................................................................................................................................7 Global........................................................................................................................................................8 Collaboration Strategy ................................................................................................................................13 Enterprise Wide Systems ............................................................................................................................13 Enterprise Resource Planning (ERP)........................................................................................................13 Customer Relationship Management (CRM)..........................................................................................14 Social Media Strategy..................................................................................................................................14 Facebook.................................................................................................................................................14 Twitter.....................................................................................................................................................15 YouTube ..................................................................................................................................................15 Instagram ................................................................................................................................................15 LinkedIn...................................................................................................................................................16 Mobile Application Strategy .......................................................................................................................16 Usage Appropriateness...........................................................................................................................16 3 Mobile Application Functionality Ideas ...............................................................................................16 Best Usage Idea.......................................................................................................................................16
  • 3. Vita-Herb Organics 2 Executive Dashboard ..................................................................................................................................20 Applicability.............................................................................................................................................20 Options....................................................................................................................................................21 Security Systems .........................................................................................................................................22 Security ...................................................................................................................................................22 People .....................................................................................................................................................22 Hardware and Software..........................................................................................................................22 Data.........................................................................................................................................................22 Porter’s 5 Forces Model..............................................................................................................................23 Team Member Contributions .....................................................................................................................24 Bibliography ................................................................................................................................................25
  • 4. Vita-Herb Organics 3 Executive Summary Background Vita-Herb launched operations in the United States in 2010 and has grown quite rapidly since then. Through existing research and development Vita-Herb has made substantial improvements in the organic supplement market. This success has been measured through continuous positive customer feedback, including external ratings and periodicals. Also, vigilant analysis of various databases shows stable growth in the VMS (Vitamins, Minerals, and Supplements) market sector. Vita-Herb has accomplished phenomenal results with its all-natural, organically compounded, stress relieving supplement, leveraging product availability to a wide range of customers. The company’s focus has been understanding customers’ needs while keeping perspective with current market trends. A simultaneous analysis of both customer demand and the vision of Vita-Herb has exemplified a unique product with superior health benefits. Each product features market-friendly packaging and distinctive labeling with directions on the package, along with insertions of educational literature. All suppliers are screened thoroughly and held to the utmost standards to assure quality and customer satisfaction. 1 Recommendations Vita-Herb should continue its product growth through e-commerce. In addition, Vita-Herb could benefit from gradually increasing its presence via “show rooming” at designated locations. Through research, we have precisely identified the target market which best suits the supplement, greatly reducing the associated risks of failure. The primary objective is to establish presence in a large city with a vast majority being health conscious consumers. Social Media will also have a significant role in introducing this product internationally. Launching promotions via Twitter and Facebook will allow the company to form brand recognition for its elite consumer subdivision. The following steps are strong indicators for long-term success: 1) Effectively documenting business processes a. Illustrating the logistics for Vita-Herb’s supply chain process i. The chain of raw materials to the finished product b. Illustrating flowcharts for all procedures, budgets, and potential growth c. Building organized checklist(s) for the hierarchies in the operations sector d. Collaboration of internal/external feedback i. Frontline employees ii. Retailers iii. Consumers 2) Performing a SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis a. Conducted semi-annually to ensure precise planning 1 Certified professionals perform random inspections on a semi-monthly basis.
  • 5. Vita-Herb Organics 4 b. Analyzing both external and internal factors relevant to Vita-Herb’s future performance i. Efficiently utilize resources to gain a competitive advantage 1. Interchanging weaknesses to an advantage for Vita-Herb a. Maximizing profit/growth potential ii. Improve operations in the supply chain with an aggregate production plan 1. Build an infrastructure plan to match the demand forecast iii. Analyzing risks 1. Timely research on competitor’s product(s) 2. Understand/prepare for environmental factors such as recession 3) Analyzing local data with corresponding statistics in Australia’s market a. Market sales, sheer volume of transactions, and consumer ratings for supplements i. Pioneering information system used to process, interpret, analyze consumer data 4) Outsourcing Vita-Herb’s Logistics in Australia a. Bright star Australia, 3PL (third-party logistics) i. Cost reduction for Vita-Herb ii. Improve productivity iii. Efficient processes throughout Vita-Herb’s supply chain 5) Ongoing integration of the e-commerce platform (Shopify) a. EFT’s (electronic funds transfer) b. Internet marketing c. Processing transactions online d. Business-to-business EDI (electronic data interchange) e. Inventory management systems f. Mobile commerce g. Supply Chain Management 6) Establishing a physical footprint a. Marketing via samples with Organic retailers i. Foodies Organic Supplies ii. Wholefoods House iii. Eco Farms iv. Earth Food Store v. Organic Trader vi. Honest to Goodness vii. The Organic Grocer viii. Taste Organic b. Providing customized discounts on specific orders 7) Focusing marketing efforts on a niche market segment a. Reducing the associated risks of failure 8) Minimizing expenditures through minimal channel intermediaries a. Direct channeling (website orders) i. Vita-Herb to customer
  • 6. Vita-Herb Organics 5 b. Retailer channel i. Vita-Herb to retailer to consumer Company Background Product/Service Description Vita-Herb is an industrialized manufacturer that provides a unique nutritional supplement. This product is sanctioned by the USP (United States Pharmacopeia), and consists of three active ingredients: chamomile, ashwagandha, and passionflower. The purpose of this supplement is to relieve stress without introducing any type of prescription drugs or chemicals into the body. An all-natural approach is not only geared towards safety, but, also is beneficial in various aspects for the body. An herb like ashwagandha not only relieves stress, but it is a powerful antioxidant. This product is optimal for boosting energy, reducing anxiety, and alleviating stress. Notably, Vita- Herb is also certified by the NSF (National Sanitation Foundation) for its well-rounded product. The ingredients have been thoroughly examined with extensive research, and they are successfully proven to effectively manage stress. Mission Statement Vita-Herb’s purpose is to implement research with cutting-edge technology, and Vita-Herb promises to deliver optimal results in developing and improving certified organic remedies for stress relief, without compromising quality, and ensuring both purity and safety of the product. Locations in the United States The success at Vita-Herb has resulted in expansion from California to all fifty states via e- commerce. There are a total of four state-of-the-art facilities located in the United States, with dispersed volume based on the market demands. The primary location originated on the West coast of Woodside, California. The remaining three facilities are located in Scarsdale, New York, Indian River Shores, Florida, and Piney Point Village, Texas. These locations were selected after carefully analyzing consumer demographics. The databases indicated that these particular states had the highest levels of income among the top ten states. The effective forecasting and demand planning has led to intense decision making for global expansion, and, the fifth official location of Vita- Herb will be built in Sydney, Australia. Current Strategy Vita-Herb produces a superior product with prestige pricing. We target organic retailers and consumers who can associate price with quality, parallel to our differentiation strategy. Thus, catering to a niche market is ideal for Vita-Herb. These exclusive herbs are primarily for health conscious consumers who value their health and emotional wellbeing. Our extensive scholarly research alongside the all-natural herbs gives Vita-Herb a competitive advantage. Therefore, Vita- Herb puts more emphasis on institutional advertising to enhance the company’s image, in lieu of the actual product.
  • 7. Vita-Herb Organics 6 The word-of-mouth strategy is heavily used and is the preferred method due to the trust associated among buyers. Product exposure is indeed subtle; however, it is a valuable long-term strategy that yields extraordinary returns with continuous growth. Depending on the various stages of the product life-cycle, a push-strategy (personal selling and trade advertising) is moderately used for retailers, however, it does lessen as band loyalty increases. Publicity of the company’s image along with educating the consumers is a significant promotional tool used to increase brand awareness. More so, the revenue is positively correlated with public relations (PR). International Expansion Location Recommendation The philosophy of Vita-Herb has constantly been a challenge to maintain, but not impossible. In e-commerce today, the sky is the limit for manufacturers. However, only a distinctive product with abundant value can drive the optimal results. For further growth, Vita-Herb has felt the need to expand its market while integrating new technology through a mobile application. After careful analysis and research on various markets, Australia certainly has a rising demand for our product. There is sufficient data that indicates Sydney, Australia is indeed the ideal location for the global expansion of Vita-Herb. It is a country which is rapidly growing and embraces innovative products. Australia is one of the leading nations with a strong emphasis on health and wellness. Consumers’ preferences for organic supplements are remarkably high in demand. In addition, Australia’s economy has great potential for growth, and Vita-Herb can cater to its needs. It is ranked among the top three countries for high levels of stress; therefore, the economy has potential for both adaptability and affordability for Vita-Herb’s elite product. Challenges in the Expansion of Information Systems Global expansion of Information Systems is a constant challenge; however, it is essential to embrace these challenges while keeping the market in perspective. We anticipate that we will encounter several challenges such as cultural barriers, diverse currency, and government regulations when implementing a new system. Above all, mitigating the risks associated with data breach is a complex issue which will need to be addressed upfront. Among these many challenges, maintaining consistency throughout the operations will be key. Along the lines of information security, there will be risks associated with theft of information, including intellectual property and research data. SAP systems are indeed well-rounded and interconnected; however, security is not attained by default. Careful thought and analysis must be used to integrate Vita-Herb’s business processes with its overall risks and compliance objectives. Or else, enterprise risks can also entail theft of customer information. An important aspect to manage closely will be the dynamic changes in computer technology. The dynamically changing technology can have an immense impact on the operations. These strains are both technical and social. In addition, pressures will exist in attempting to see eye-to-eye with executives in diverse cultures, and construing the different laws and regulations. Another example
  • 8. Vita-Herb Organics 7 would be contradictory standards in terms of implementing flexible solutions for telecommunications. Successfully managing and implementing ERP (enterprise resource planning) is vital for the company’s existence. Managing costs will be a major challenge with the global expansion. Costs will be incurred when purchasing hardware and establishing an infrastructure. Recommendations for Implementing Information Systems Based on the usage and sharing of information, a possible solution to this ongoing challenge would be to outsource particular areas of the operations. This can resolve many issues and prevent complications for the organization. This strategy would ensure long-term success and also reduce overhead costs for the organization. With the advancements of technology, the risk of information security surges. The security of information has become an utmost challenge; nonetheless, this factor is inevitable. Using cloud storage for information and data has become convenient and less expensive, as it reduces the costs associated with investments and hardware. The benefits of cloud technology does outweigh the associated risks. An innovative solution is to bring about cloud manufacturing ERP. This groundbreaking technology of ERP, Plex, delivers management of the entire ERP infrastructure via cloud manufacturing, around the clock availability, and concrete security; notably, this information system will eminently reduce costs for Vita-Herb. A secure organizational structure will be created with minimal costs. It is also vital that the company adapts lean-manufacturing processes. This will be acquired through appropriate measurements in operations of quality and productivity. The focus will not only be the results, but also digging deep in the roots of developments. This method will help the company identify problems, understand the difficulties, and ultimately reduce the potential risks associated with waste and failure. Keeping track of the progress step-by-step along with a contingency plan will ensure an effective business process via information systems. Currently, Vita-Herb uses PeopleSoft – Enterprise Demand Planning. This software is used to ensure accuracy in forecasting and demand planning. However, the next step would be to implement a JIT (just in time) inventory strategy. Implementing the data derived from the information systems would reduce inventory costs and allow resources to be used more efficiently. Industry Research Local Vita-Herb’s success in the United States among the vitamins, minerals, and supplements (VMS) industry involves an intricate analysis of our own performance as well as that of our competitors. We have thrived in the United States because our product offers customers a boost in their overall well-being, all from a single dose. We have experienced a steady growth in the market, even as consumer skepticism and efficacy increase simply because we have a client-base that has always
  • 9. Vita-Herb Organics 8 believed in a healthy lifestyle but wants to take that lifestyle an additional step forward. Amongst our major competitors are other corporations that sell products in the form of a supplement that increase overall health. We also recognize that one of our potential competitors within the VMS industry is that of specific food and beverages infused with vitamins or minerals. One major example would be Yoplait, a company that now produces dairy products with added Vitamin C, D, and probiotics. While Vita-Herb currently does not have an affiliation with an edible product corporation, we serve a market that we believe seeks a physical, health related supplement. A major threat in our industry is the widespread movement to overall healthy eating in which people no longer feel they need a supplement. However, Vita-Herb feels that our market has always strived for the healthy life style; therefore, this will not have a vast impact on our consumers. One of the major trends within the industry is a growing number of people over the age of 50 that seek supplemental products to ensure optimal health. At this period of time, the VMS industry can be considered in the middle of the growth and maturity life cycle. The desire for supplements and an overall healthy lifestyle became popular in the late 90’s and early 2000’s; therefore, the VMS industry as a whole is in the maturity stage. We chose to classify the industry in between growth and maturity because while the desire to be healthy has been prominent for multiple decades, the desire for a stress-relieving supplement is new, classifying that specific segment of the industry as being in the growth period. Global When analyzing the VMS industry across the globe, Vita-Herb believes that Sydney, Australia has the most similar consumer base to that of our industry here in the United States. Sydney, Australia has an increasing number of individuals with disposable income (specifically adults over the age of 50), making our high priced supplement an affordable health related investment. The population within Sydney has a growing demand for supplemental health products. Therefore, Vita-Herb believes that when expanding globally, Sydney should be our first established branch. The key competitors in Sydney currently have well-developed brand acknowledged products that much of the healthy portion of the population trusts. This poses a slight challenge for Vita-Herb to gain customer loyalty, though we are confident that our product will quickly gain a large following. Key competitors in Sydney are not as strong in advertising their products as the corporations in the United States, which would make Vita-Herb’s marketing strategies significantly more effective and ultimately propel our product to the top of the market. This particular location has a VMS industry that is also in the growth and maturity stage, making it an appropriate place to sell our product. In the future, our company could pursue markets such as that of the United Kingdom because of their similar interest in health improving supplements.
  • 10. Vita-Herb Organics 9 2 Among the leading suppliers for the VMS (Vitamins, Minerals, and Supplements) market, the sales for Vita-Herb have slightly decreased; however, the overall market share remains at 30.5%. Vita-Herb falls in this particular category and holds close to 16% of the market share. 2 Mintel | VMS Report Vita-Herb
  • 11. Vita-Herb Organics 10 3 Mintel | VMS Report 3 In the chart above, sales are represented among the various types of supplements. The sales for herbal supplements are not as large due to Vita-Herb’s unique market; in addition, the sales from Whole Foods is not represented in this analysis. Wholefoods represents nearly 29% of the sales for Vita-Herb. Vita-Herb
  • 12. Vita-Herb Organics 11 4 Mintel | VMS Report 4 Referring to the chart above, the sales of supplements are represented for two consecutive years. After performing a competitor analysis, the sales for Vita-Herb have been consistent overall. The sales have surpassed the leading competitors in the supplement market including Nature’s Bounty, Living Essentials, and Natrol. Vita-Herb
  • 14. Vita-Herb Organics 13 Business Process Model This process model captures the essence for Vita-Herb as a whole. To better visualize the activities in the process, a swimlane format is used. An added benefit to this particular format is being able to identify where delays occur to ensure efficiency. The entire process is initiated by the buyer and is either accepted or rejected based on the requirements. If all criteria has been satisfied, the message is communicated to the “fill order” stage. At this point, the order is filled, shipped, and an invoice has been generated. Once a payment has been made and processed, there is a “parallel gateway.” This means that there is no dependence of any particular events or conditions. Accepting a payment and shipping an order are simply two parallel tasks being performed independently. This is an overview of the steps necessary to efficiently process and complete orders. Collaboration Strategy Vita-Herb understands that in order to successfully implement the globalization of our product, we must develop specific collaboration tools. The major collaboration tool that Vita-Herb will integrate into daily business activity is that of SharePoint. SharePoint will be required for all of our current and future offices and will provide a multitude of significant functions. Firstly, SharePoint will provide access to documents necessary for daily business activities that can be accessed by branch offices at any given time. This will not only eliminate unnecessary communication but will also provide a tracking system that insures documents do not get lost. Secondly, SharePoint will serve as a medium to provide feedback between offices, and, communicate to areas that may have weaknesses along with different strategies for improvement (specifically through the discussion board). SharePoint will also provide the opportunity to administer different tasks and track the status of the particular designated tasks at any given period of time. Vita-Herb feels that the implementation of SharePoint will create communication across employees that will allow for a more meaningful experience, initiate the growth of team capability, as well as make work that may seem monotonous, interesting. Enterprise Wide Systems Enterprise Resource Planning (ERP) While Vita-Herb recognizes that we currently are too small for ERP implementation, we have chosen to consider two distinct EWS alternatives that may be developed as the company expands. The first Enterprise Wide System analyzed for the company was that of Oracle. Oracle would be an appropriate system for Vita-Herb because it can be formatted for smaller companies. The adaptation of our current systems to this particular system could occur at an early period of time allowing the company to begin using an Enterprise Wide System and adapting to it prior to major growth. Another key benefit of Oracle is the ability to purchase system capabilities based on need, which could help save a significant portion of money. When evaluating the weaknesses of Oracle, Vita-Herb realized that Oracle is highly complex and therefore difficult to use (which would in turn require expensive training for all employees.)
  • 15. Vita-Herb Organics 14 Upon realizing that the physical training of employees would be costly, Vita-Herb explored an additional EWS option. After extensive research, Vita-Herb feels that the best Enterprise Wide System to implement would be SAP. SAP would allow over 15,000 tables of information to be stored and then later accessed by all branch offices through the “cloud.” SAP is currently the largest Enterprise Wide System and would provide Vita-Herb the opportunity to compete with the top competitors in the industry. Vita-Herb discovered that even though SAP would be a highly expensive system to incorporate, ultimately it would be an investment that could be utilized and altered throughout the company’s lifetime. Customer Relationship Management (CRM) Vita-Herb explored two unique customer relationship management systems. The first option explored was that of GoldMine. GoldMine would be an appropriate option for Vita-Herb specifically because it was originally designed for small businesses. GoldMine has the ability to track sales, create specific schedules, and analyze different types of data. This would aid in a smooth transition into the global VMS market because it would allow for all customer information across the different branches to be stored in one area. Although GoldMine has a large number of users, our team also analyzed the CRM program of SalesForce. After extensive research on SalesForce, it became clear that we should move away from GoldMine. SalesForce would allow for the utilization of the cloud, as well as social media when documenting and analyzing existing and potential future customers. The use of SalesForce would provide Vita-Herb with the opportunity to be competitive with major companies currently in the industry by allowing the launching of campaigns with the best technology available. Vita-Herb recognizes that while SalesForce has a significant number of benefits, it also can be challenging to implement due to the need of user training. SalesForce is an object-based database that requires users to input information in a specific format. SalesForce can also be relatively expensive, especially if the purchased package includes the maximum program functions. While the user training and program expenses can be steep when purchasing SalesForce, our team believes it will provide the best CRM as we become a global corporation. Social Media Strategy Vita-Herb will use popular social media channels to communicate directly with customers. It will give our company an opportunity to share news and promotions. Notifications will automatically pop up on a customer’s phone screen whenever the company updates and posts information, building both brand awareness and customer relationships. Facebook Facebook remains a leading social network, with a record breaking one billion active users in 2015. With Facebook users being very diverse in terms of age, education level, and interests, promotions on Facebook can help Vita-Herb to target the right customers. We plan to create our own fan page as a gateway to communicate with customers. Our main purpose is updating news and promotions about our products; our approach will be conveying stories shared by customers and fun facts
  • 16. Vita-Herb Organics 15 relating to products. Moreover, we want to create Vita-Herb’s Facebook fan page as a forum where people with common concerns about stress relief can share their opinions and experiences. To increase the interaction between company and customers, we will organize mini games and give- away contests to trigger motivation for customers to interact on the page regularly and involve in the page regularly. Facebook enables us to do market in many ways. For example, through Facebook, Vita-Herb can use graphics, pictures, or videos to post on our timeline. Additionally, customers can be informed about the new product-launching event or local sales count down event. All necessary information will be posted on the event page. One of the most important keys in implementing digital marketing and e-commerce is customers’ review. With many credible reviews from customers, we can build trust and establish a grounded customer relationship even before they buy our products. Another great tool Facebook can provide us is paid advertisement by creating sponsored posts, which will appear on any targeted audiences’ news feed who fit our products preferences. Vita-Herb can track data from Facebook sites through applications and tools Facebook provides for the company. However, there is always a downside with communicating freely. People leave negative comments. We can take advantage of these to improve our products, understand our customers’ preferences better, but we also need to control these disadvantages to a limited quantity to keep a good image of Vita-Herb. Twitter Twitter is a social media platform for quick updates and short announcements. Vita-Herb can tweet promotions and discount codes for their customers, ultimately leading to tweets spreading among numerous networks. This is the fastest way of branding for Vita-Herb because of its fast moving news stream. We can also generate a hashtag #vitaherbstressrelief to collect customers’ opinions and stories. Similar to Facebook, Twitter has a large amount of users that will help us reach a wide range of people over the social media. However, Vita-Herb’s posts and updates can easily get lost amongst the accumulating information being displayed on Twitter’s network. YouTube Due to Vita-Herb’s emphasis on health and wellness, a vivid and clear explanation of how the product works and how to use the product is essential to communicate to the consumer. YouTube is known as the most popular video sharing channel amongst other mediums. Therefore, Vita-Herb will produce creative videos by providing illustrations and posting this material on their YouTube channel. These videos will help Vita-Herb visually convey details and help consumers understand the packaged literature. Through these YouTube videos, customers will be able to gain knowledge about Vita-Herb’s products. From this acquired knowledge, customers will be able to share these videos among different media channels, as well as ask questions and provide feedback. Instagram Instagram is the new social media channel focusing mostly on sharing photos. The number of its users is increasing rapidly over time. Instagram helps to increase the use of hashtag which groups a collection of thing under the same category. Vita-Herb can create a hashtag #vitaherbstressrelief
  • 17. Vita-Herb Organics 16 on Instagram to keep track of customers’ opinions and reviews. Also, our company plans to create photos that have positive energy, optimistic view to trigger customers’ favor in the product through image association and personal relation. Moreover, we will input motivating quotes on these photo to show our support towards the customers by encouraging them in all aspects. LinkedIn Because Vita-Herb wants to expand business in Australia by looking for more potential retailers, LinkedIn will be the best gateway to connect and reach out to retailers. As a professional platform, LinkedIn has potential distributors and retailers’ contact points for our company. By using the information provided on this site, we can conduct a thorough research about these potential partners and get in touch with them easier through emails and messages. LinkedIn enables us to expand wholesale and gain more reliable connections. Mobile Application Strategy Usage Appropriateness Because smartphone plays a big role in people’s daily habit, a mobile application will enable customers to connect with Vita-Herb easier and faster. We want to build our application as a mentor and a friend of our customers. We want to develop three sections within our application so customers can rely on it whenever they use our products. This app will serve not only as a gateway to keep in touch with the company but also a go-to guide for stress relief. 3 Mobile Application Functionality Ideas Vita-Herb is a well-known industry by its name and its mobile application. This application will be user-friendly among its innovative technology. We will utilize graphics, charts, and information graphics to allow our customers to experience a multitude of relevant data. We aim for simplicity and convenience while building an application to encourage daily use by customers. First of all, Vita-Herb will create a forum in which individuals can share their inspirational stories concerning stress relief. Additionally, we will update posts in regards to motivating facts, helpful links, infographics, and current statistical data, all in correlation with stress. By accessing this section customers will gain useful knowledge for stress reduction, and feel accompanied throughout their journey. This creates an encouraging environment for people to overcome factors associated with stress. The second section is about company updates of new products, promotion code and all other things relating to Vita-Herb. Customers will find detailed description about products including ingredients, price, shipping methods and reviews. From this site, they can add product to cart and check out to buy products online from anywhere in the world. Last but not least, Vita- Herb’s app can be served as personal treatment program. This section will become a guideline for each customer to reduce stress based on treatments generated from personal experiences. They will input their daily habits to enforce a balanced schedule between work and personal life. Best Usage Idea The most significant purpose for creating the application is to personalize the customer experience, by establishing a personal treatment program.
  • 18. Vita-Herb Organics 17 Detailed Functionality Description The personal treatment program is the key factor differentiating Vita-Herb from other competitors. We want to use this section as a personal tracking device to kindly remind customers to take the pill regularly for a better outcome. Specifically, we want our customers to use this application to track the amount of time they spend on work, sleep and play or exercise to determine whether or not they are living a balanced life. We want to collect all of the information such as allergies, occupation, and other stress indication factor a person has. From these data, our application can tell the reasons why this customer suffers stress in order to advise the correct supplement as well as an appropriate schedule. Benefits of a Mobile Application The implementation of mobile application helps our customers to track their progress on stress reduction. We create friendly reminder pushing pop-up notifications on smartphone. Customers will see a scheduled time for pill taking and get up-to-date promotion codes. They will feel inspired even though they’re under stress due to encouraging accompanies and motivating quotes. They will gain better knowledge about stress and stress reduction. Lastly, mobile app will allow customers to place and check out orders easily regardless of location. As this mobile application is launched, we will gain a huge advantage compare to other competitors because we can expand locally and globally. Our company will grow exponentially with wholesale and distributors expansion. We will reach a large group of people and target customers from anywhere. This app also gives executives a better vision of our company progress while we enter a new market.
  • 19. Vita-Herb Organics 18 5 5 Como | Mobile App Design
  • 20. Vita-Herb Organics 19 6 6 Como | Mobile App Design
  • 21. Vita-Herb Organics 20 Executive Dashboard 7 Applicability Selling a consumer purchased product in an ever changing and expanding market, it is critical for Vita-Herb Organics to track daily activity as well as the market as a whole. For these particular reasons, our team would recommend an executive dashboard that would allow the tracking of this 7 Executive Dashboard
  • 22. Vita-Herb Organics 21 information. The strategically generated executive dashboard presented above will allow information regarding sales, stock and competitors to be watched closely especially while we plan on expanding into the global market. Options The dashboard contains a variety of information that provides insight on sales, the value of corporate stock, inventory, and our competitors in the VMS industry. This information can be seen in the forms of charts, tables, graphs, gages, and a map. The Quarterly Sales graph represents the amount of sales that occurred at specific period of time. The faded line on the graph is representative of forecasted sales while the solid blue line depicts actual sales. This allows the company to see the accuracy of our forecasting at any given period of time in comparison to the actual sales revenue value. The Key Performance Indicators and Performance vs. Quota table provides information about the company’s sales revenue goals and compares them to the current and previous quarters as well as analyzes sales per branch. This table is essential to understanding if the company is meeting the set sales goals as well as if they are exceeding sales in the previous quarter by location. The branch locations are represented by the name of the branch manager’s names. The three gages at the bottom of the dashboard include Stocking Level, Stock Average, and Number in Stock. This allows the managers and executives to track the amount of product is currently in stock, the average price of the stock in the stock market, and the number of shares currently dispersed amongst the market. The Top 5 Companies table organizes the top five companies in the VMS Industry and the value of their market share currently. Tracking this information on the dashboard will allow executives to see which companies are excelling in the market. After recognizing these specific companies, the executive can do research and find out why those specific companies are more profitable. The Product Stock Levels will track the stock of our products in retailers in comparison to that of competitors. This will allow the executives to see how our product is selling in comparison to competitor products of a similar purpose. While monitoring this information, executives can discover which retailers are the most successful at selling our product. The Quarter’s Purchases by State map will provide a visual presentation of product sales by state. This will allow executives to view how profitable each state is and as we globally expand, we can also monitor our global success.
  • 23. Vita-Herb Organics 22 Security Systems Security A successful expansion of Vita-Herb will require the implementation of security on all levels of its information systems. Security breaches are one of the biggest problems corporations face in today’s technological environment and can result in significant monetary consequences, and a decrease in customers. It is highly recommended that Vita-Herb implements thorough security measures placing emphasis on people, data, hardware, and software. People We need to recruit employees with an ethical background whom we can entrust sensitive information pertaining to the company. Employees’ will require training on how to handle confidential information and maintain security; in addition, they will be asked to sign an agreement ensuring security and confidentiality. For any problems that may arise, the necessary steps will be taken promptly to resolve the issue at hand. At that point, we would also inform all employees associated among the shared database; and, have the IT department assess the issues, these steps will aid in preventing and resolving any issues which may arise. A system of procedures must be incorporated to enforce the company as a whole in following standardized processes and procedures when sending and receiving information. Hardware and Software All employees’ of the company who would like to access the integrated database will require authenticated credentials. Creating intricate passwords is one of the most basic, yet, significant processes for authentication. Employee passwords will need to meet security requirements. Nonetheless, Vita-Herb should use other forms of authentication such as smart cards and biometrics. As a result, access to the company's computer systems will be restricted; and, lower- level employees will not have the same privileges as the executives. Additional measures will include the use of a firewall for the company’s network; this technique will prevent illegal hacking and unauthorized access. In addition, the usage of malware will provide protection for both the hardware and software. Viruses can have a vast impact on database systems, and can lead to adverse consequences; therefore, to secure systems at all levels an antivirus and antimalware will be installed in every unit, and kept up-to-date with the newest version. As mentioned earlier, employees will be held liable to follow rigorous procedures to prevent any sort loss or damage to the information systems. Data To ensure the safety of Vita-Herb’s database, the backbone of the information system, additional security measures need to be in place. If data got leaked, important information relating to employees and customers such as social security numbers and credit card information would be at risk. This would put the company in a position where there could be severe monetary consequences. Therefore, we need to install key escrow. Certain data will be assigned to specific employees only. Privileged information will require data rights approval. Lastly, a cloud based
  • 24. Vita-Herb Organics 23 system need to be in place to back up company information on an hourly basis to prevent significant losses due to power outages or other disruptions. Porter’s 5 Forces Model Power High Low Justify Buyer x The buyer power is considered high because the VMS industry consist of a large variety of products with prices that vary. As a high priced supplement, our product may be compared to a less expensive option with similar benefits. Being a supplemented product, Vita-Herb Organics recognizes that while our product can be beneficial to the entire population, it is not necessary to survive. Supplier x The supplier power is low mostly because the raw material ingredients can easily be purchased from different suppliers. The labor for the product is also not highly specialized as it is typically done with automated systems, making the need for skilled labor low. Threats of Substitute Products x The threat of substitute products is high in the VMS industry because of the number of similar products in the current market at a lower price (price sensitivity). Vita-Herb Organics is also a specialty product and is currently only available in specific locations. This could lead to potential customers purchasing an alternative product simply because of convenience. Threats of New Entrants x Entering the supplement market is a challenge for all firms because of the strict government policies that require product approval. This makes the threat of new entrants low particularly because it is difficult to comply with all government enforced standards. Developing customer loyalty is also difficult in the supplement industry because of the overwhelming number of brands in the industry today. Rivalry Among Existing Competitors x The rivalry among existing competitors is currently high because of the large numbers of competitors in the industry. With the high number of competitors and a low level of product variation, advertising has become crucial in order to stand out from alternative brands. Competition that occurs between e-commerce and brick and mortar stores has also led to an increased rivalry amongst existing competitors.
  • 25. Vita-Herb Organics 24 Team Member Contributions  VHO Written Plan | Social Media Strategy, Mobile Application Strategy, & BPM Hannie Tran  VHO Written Plan | Industry Research, Security Systems, & 5 Forces Model Mary Nguyen  VHO Written Plan | Executive Dashboard, Collaboration Strategy, & Enterprise Wide Systems Kolbey Ross-Levy  VHO Written Plan | Executive Summary, Company Research, & International Expansion Zainab Lakhani
  • 26. Vita-Herb Organics 25 Bibliography Database, Natural Medicines Comprehensive. Passionflower. 1 January 2009. 15 February 2015. <http://www.webmd.com/vitamins-supplements/ingredientmono-871- passionflower.aspx?activeingredientid=871&activeingredientname=passionflower>. Jacobsen, Lauren. 5 Supplements To Control Cortisol. 17 September 2013. 15 March 2015. <http://www.fitnessrxwomen.com/nutrition/supplements/5-supplements-to-control-cortisol/>. Kiefer, Dale. Ashwagandha Stress Reduction, Neural Protection, and a Lot More from an Ancient Herb. 1 June 2006. 15 February 2015. <http://www.lef.org/magazine/2006/6/report_ashwa/Page- 01?checked=1>. Kiefer, David. Vitamins and Supplements Lifestyle Guide. 3 November 2014. 15 February 2015. <http://www.webmd.com/vitamins-and-supplements/lifestyle-guide-11/supplement-guide- chamomile>. Kroenke, David M. Experiencing MIS. Vers. 5th. 1 January 2014. 1 March 2015. <http://www.pearsonmylabandmastering.com/northamerica/mymislab/>. Krol, Emily. Vitamins, Minerals, and Supplements . 1 January 2013. 1 March 2015. <http://academic.mintel.com.ezproxy.tcu.edu/display/679768/>. Profiles, U.S. Business Environment. Healthy Eating Index. 1 November 2014. 15 April 2015. <http://clients1.ibisworld.com/reports/us/bed/default.aspx?bedid=64>. —. Number of Adults Aged 50 and Older. 1 May 2014. 15 April 2015. <http://clients1.ibisworld.com/reports/us/bed/default.aspx?bedid=19>. Ronen Shilo, Dror Erez. Como. 1 January 2015. 19 April 2015. <www.como.com>. Story, Colleen M. Food Matters. 30 March 2014. 15 February 2015. <http://foodmatters.tv/articles-1/5- herbs-to-calm-anxiety-without-being-drowsy>.