Page 9 - CIMA OCS Workbook May 2019 - Day 1 Tasks

Chapter 3

VITAMINE – SUMMARY AND KEY

TOPICS

1 INTRODUCTION

It is absolutely crucial that you completely familiarise yourself with the pre-seen information prior
to attempting the Case Study exam. Merely reading through the materials is unlikely to be
sufficient and it is also important that you consider which aspects of the three technical subjects
may be useful and relevant for the Case Study.
The exercises in the following three chapters will help you to gain a thorough understanding of
the Case Study scenario and ensure you are fully prepared to attempt the Practice Tasks later in
this Workbook.
Solutions to these exercises are provided but are not exhaustive. It is important that you attempt
the exercises yourself and makes notes of your answers before reviewing the solutions.

2 OVERVIEW OF PRE-SEEN

The pre-seen information concerns a company called VitaMine that manufactures and sells
vitamins, minerals and supplements (“VMS”) in the country of Eastland. Founded in 2002 the
company has gained a good reputation for delivering both excellent products and a high standard
of service to its business customers.
Industry trends

The global VMS industry has seen “unprecedented” sales growth over the last ten years, due to a
combination of an ageing population, increased consumer awareness of preventative healthcare,
channel proliferation (especially online channels) and new product formats.
Future growth will be limited by increased oversight and tightening of regulations, especially
those relating to product safety and efficacy. Some products may even be banned due to safety
concerns. Nevertheless the industry is still expected to grow by 5 /6% p.a. for the next few years.
Company strategy

VitaMine sells mainly B2B. Own branded goods are sold direct to retail chains in S.E Asia and also
to large wholesalers, such as VitaSite. Sales to VitaSite represent 10% of total VitaMine sales.
VitaMine also produces private-label products under contracts. VitaMine’s business strategy is
based on high quality and standard of service.
The company also undertakes some B2C marketing activities but does not currently sell direct to
the consumer.

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