283709132 Sample Mm Plan 1 PDF

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Marketing Plan: YEO’S Asian Drinks

1. EXECUTIVE SUMMARY The following report presents the marketing strategy of YEO’S Asian Drink. Yeo Hiap Seng was established in the 1930s in Singapore and has become well known as a large company that produces a wide range of products from beverages, culinary sauces and pastes to canned food. YEO’S is seen as a pioneer and innovator in the beverage category since they became the first to introduce bottled chrysanthemum tea and soya bean milk to the market in the 1950s and received numerous winning awards in international competitions (Yeo Hiap Seng Ltd, 2012).

Despite many years of history in the industry, YEO’S is facing threats from strong competitors such as Season’s, Marigold, Allswell and Asian Story. These competitor brands offer products of wider variety at a comparable price as YEO’S. Its inability to capture the younger market causes the company to lose significant market shares and revenues. With increasing population in Singapore and Generation Y being a domain market, YEO’S has decided to focus its target market on the younger generation and the health conscious consumers. The improvisation of various healthier Asian drinks with improved flavor and the incorporation of fruit flavor into the Asian drinks will be used to attract the new crowd. The objectives of the healthier Asian drinks, 

Create brand new image for YEO’S Asian drinks

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Highly accepted among the consumers of different races and nationalities

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Widely sold in various road shows, supermarkets and food fairs

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Marketing Plan: YEO’S Asian Drinks

2. SITUATION ANALYSIS YEO’S has a high awareness amongst the older generation of consumers due to its long tradition in Singapore (Corporate-Overview, 2012). Its products have been well received and strongly supported by Generation X since the first introduction in Singapore market. Over the time, the company recognized the new target market as “younger, more brand awareness and always looking forward to freshness” (Lee, 2009). Thus, the main marketing objective is to target the younger consumers and to instill the same brand values that their parents have. This target group includes teenagers, young working adults and young families who are in the beginning of their household.

2.1. Market Summary Geographic YEO’S immediate market is Singapore with a population of 5.5 million (Population, 2011). With the increasing trend of globalization YEO’S has expanded its business to other Asian countries like Malaysia, China, Vietnam as well as other regional markets which are outside of Asia such as United Kingdom, United States of America, Canada and Africa with the total targeted population of approximately 120 million consumers (Soft drinks international, 2009).

Demographics Young consumers including students, young working adults and young families between the age of 18 to 28 are the main target market for the marketing campaign of YEO’S in Singapore (OFSA NATIONS, 2010). YEO’S drinks must also take into consideration that Singapore is a multiracial society to have a suitable strategy to keep their position in the business market.

Psychographics YEO’S currently focus on young active generation with high purchasing power and trendy mindset. This group of people seeks for new varieties, experience and stylish products that allow them to have a wider social

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Marketing Plan: YEO’S Asian Drinks

network (OFSA NATIONS, 2010). Besides that, YEO’S also targets on health conscious consumers who prefer healthier food/beverages choices. Behavioral YEO’S is targeting at consumers who enjoy gathering with their relatives or colleagues on occasions (Chinese Festivals, 2008) such as birthday parties, festivals or meetings. At the same time, YEO’S also aims to attract potential customers by offering variety of products. Market Needs YEO’S is providing a wide range of canned foods and beverages. The company seeks to fulfill the following benefits that are important to its customers: 

Competitive price: Although the drink is inexpensive, customers will still seek for comparable product of a cheaper cost. Consumers will search for information and evaluate the alternatives.

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Flavors: YEO’S is working hard to introduce new flavors to satisfy customers’ need. As nowadays customers would like to try out new things and like to have more choices.

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Quality: Customers are not only concern of the price but also the quality. A differential threshold or deterioration in the quality would greatly affect the customer’s perception of the brand and product. One of YEO’S strength is to maintain its quality of production and offer a healthier range of products such as “less sugar” to customize to consumer preference.

Market Trends Singaporeans are getting more health-conscious due to efforts made by the government to promote a healthier lifestyle and the general concern raised by the public towards health and wellness (Singaporeans are health conscious, 2010). Consumers are more educated and with the invasion of Internet in every household, people are on the lookout for every possible means and gadget to maintain vitality, preventive medications and activities to remain a healthy lifestyle.

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Marketing Plan: YEO’S Asian Drinks

Thus, YEO’S has had to keep up with this trend by coming up with new, healthier incarnations of their drinks with more natural, fresh and healthy ingredients.

Consumers especially the young are always attracted by fresh and innovative products and are very welcoming towards new ideas or new product innovation. To YEO’S, product innovation has always been a key focus since they were the first company in the world to package its Asian drinks in Tetra Brik aseptic containers using UHT process (Corporate- History and Heritage, 2012). Creating visible innovation would make YEO’S competitors’ products date faster, re-segment and gain benefit by differentiating YEO’S from its main competitors. Market Growth According to the National Statistical Authority of Singapore (2010), there is an increase in population for both Singapore Permanent-Residents (PR) and the non-residents (excluding tourists and visitors since 2000).

The statistics for PR and the non-residents in 2000 and 2010 are as follow: Year

PR

Non-residents

Growth (%)

2000

287, 500

754, 000

162.26

2010

541, 000

1, 305, 000

141.22

Country

Year 2000

Year 2010

Growth (%)

Malaysia

305, 400

386, 000

26.39

China, Hong Kong & Macau

155, 000

175, 200

13.03

Indonesia

32, 500

54, 400

67.38

Other Asian Countries

22,400

90, 100

302.23

Among the PRs and non-residents, there is an increase of Asians living in Singapore. As such there is a market growth for Asians, likewise for Asian drinks.

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Marketing Plan: YEO’S Asian Drinks

2.2. Competition YEO’S is facing very strong competitors in the market for Asian Drinks. One of the main competitors, Season’s (F&N) is offering similar products of a comparable price (Fraser and Neave Ltd, 2012). Although Season’s has lesser variety of Asian Drinks as compared to YEO’S, it offers a wide range of Fruit Teas to target the increasing market of Generation-Y (Gen-Y) while YEO’S hardly have any diversification from Asian Drinks (Yeo Hiap Seng Ltd, 2012). This set YEO’S at its disadvantage as Asian Drinks may be good enough to satisfy the older generations, it may not be as appealing to the younger generations. The fusion of fruit teas adds appeal and may better arouse the interest of the consumers. For the other competitors such as Marigold add on pressure indirectly as its product focus are milk and fruit juices. It has yet to become direct competitors as most consumers recognizes the brand for milk and fruit juices more than for Asian drinks or other beverages (Marigold, 2010). 2.3. Product Offering YEO’S has entered the food and beverage market for a long time and has successfully launched several products. Their current achievement is No. 1 in Soy Milk Category, No. 1 in Tea Drink Category, No. 1 in Canned Meat Range and their future targets are No.1 in Instant Noodle Category and No. 1 in Canned Food Category (Advameg, 2012).

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Drink: YEO’S offers both canned drinks and Tetra Brik drinks to cater to consumers’ different purposes and occasions. YEO’S Asian drink isa line of beverage products of local favorites. The flavors in the line include Chrysanthemum Tea, Chrysanthemum Tea with Luo Han Guo, Winter Melon Tea, Lemon Barley Drink, Lychee, Grass Jelly and Sugar Cane. The product line also includes beverages targeted at different racial groups such as Longan Red Date for the Chinese and Bandung Rose Drink for the Malays. They also introduced healthier options such as “not so sweet” and “less sugar”.

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Marketing Plan: YEO’S Asian Drinks

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Food: Beside beverages, YEO’S also offers wide range of canned foods. In 1950s, YEO’S launched its first canned product that is the canned chicken curry. By early 1970s, the company introduced their first instant noodle, chilli, tomato and oyster sauce (Advameg, 2012). Some of its other products are beef curry, satay chicken, mutton curry with potatoes, lamb curry, baked bean in tomato sauce, cream style sweet corn.

2.4. SWOT Analysis Internal Environment Using a “Marketing Memo: Checklist for Performing Strengths/Weakness Analysis", the strengths and weaknesses are extracted as follow:

Strengths

Weaknesses

Marketing

Marketing

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Company reputation

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Outdated image

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Market share

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Brand confusion

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Product variety and quality

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Distribution effectiveness

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Pricing effectiveness

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Innovation effectiveness

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Geographical coverage

Finance 

Financial stability

Manufacturing 

Capacity

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Ability to produce on time

Organization 

Visionary, capable leadership

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Marketing Plan: YEO’S Asian Drinks

Strengths YEO’s was established in the early 1930s and have successfully built trust and attained customers’ loyalty, especially from the Baby Boomers that grew up with the brand. As compared to YEO’s competitors, it was a step ahead in gaining market’s attention and familiarity of its products.

Since its 1969 listing on the Stock Exchange, YEO’s has commanded a substantial share of the local drinks market (Far East Organization, 1995). In 2011, the food and beverages division reported revenue of S$87.49 million for the quarter ended June 30, an increase of 5.6 per cent year-on-year (Mesenas, CNA, 2011).

YEO’s produces more than 200 varieties of products such as traditional Asian drinks, fruit juices, soya milk, jelly drinks, canned food, Asian sauces and instant noodles. Apart from being recognized as the market leader in noncarbonated drinks in Singapore, Malaysia and the region, YEO’s is also the bottler and distributor for international brands such as Pepsi/Diet Pepsi, 7-up, Mountain Dew, Miranda and Evervess. It also distributes for Evian and Volvic mineral water in Singapore (Far East Organization, 1995).

YEO’s has a strong position in its product category with its wide distribution network in places such as major supermarkets, convenience stores, vending machines and petrol kiosks, which allowed YEO’s to reach its consumers geographically and in turn increase brand awareness.

One of YEO’s competitive advantages is that it not only targets the local market, it also target the consumers abroad by making inroads to countries such as the US, Canada, Europe, Australia, New Zealand, various countries in Asia and even the Pacific Islands with its ready-to-drink drinks and Asian sauces and pastes for cooking.

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Marketing Plan: YEO’S Asian Drinks

Weaknesses Young people have the perception that teas are mostly appreciated by older people and are consumed to ease discomfort. The younger generation tends to be very preoccupied with what other people think of their appearance. When young consumers enter a super market and are faced with a wide variety of beverages, they will very likely select a can of soft drink or a bottle of fruit juice to suit their young and trendy image, instead of an Asian traditional tea.

Having a wide distribution channel is strength; however it can also be a weakness. YEO’s wide varieties of ready-to-drink teas are displayed next to its competitors, who also have a wide variety of ready-to-drink teas. This may create confusion for the consumers. External Environment The follow is a list of the marketing opportunities that Yeo’s can profitably satisfy and the threats that will lower sales or profit. Opportunities O

Threats

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Broaden product offerings

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Competitive market

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Cost-cutting

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Rising cost of raw materials

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Revamp sales and distribution system

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Online Purchasing System

Opportunities As the demand for a healthier lifestyle increases in Singapore, more people are looking towards organic food products as a healthier choice of living. In 2005, YEO’s team up with a leading American organic and natural food products company, Hain Celestial Group, to jointly develop business opportunities in the organic and food industry. The partnership provides access to new distribution channels as well as open new and different product markets, thereby broadening each other’s global footprint and product offerings (Far East Organization, 1995).

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Marketing Plan: YEO’S Asian Drinks

In 2010, Yeo Hiap Seng Malaysia Group embarked on a plant consolidation exercise to streamline its five factories to three factories, so as to achieve better efficiency and lower operating cost. This exercise expects to realize significant annual savings when the exercise is duly completed by 2012. As of the fourth quarter of 2011, there has been a significant growth in net profit from the previous year (Lim, 2012).

Also in the same year, Yeo Hiap Seng Malaysia Group introduced the use of computerized handheld devices to process sales orders, and implemented a distributor management system to enhance visibility in distributors’ sales, pricing and promotional information. This will help improve the efficiency of its employees (Lim, 2012). In our modern society, going shopping for groceries once a week may be a dreaded task to some. Especially when one have to do groceries shopping for occasions like Chinese New Year, they have to lug many cartons of packet drinks or canned drinks home for entertaining of guests. YEO’s can come up with an online purchasing system where consumers can mix and match different types of beverages through YEO’s purchasing system on its website and have it delivered to their homes. This will save a lot of time for the consumers.

Threats Although YEO’s is one of the oldest and most recognized brands in Singapore for its beverages, it is now facing strong competitors in the market. They include Season’s, Marigold, Nutritea, Allswell, Asian Story and Heaven & Earth that produces a wide range of ready-to-drink teas too. Some of these brands have more attractive packaging so as to attract the younger generation. In order to keep up with its competitors and attract the targeted market, YEO’s need to keep its packaging “Hip” and “Relevant” to appeal to the younger market.

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Marketing Plan: YEO’S Asian Drinks

In a recent report, YEO’s said that the next 12 months could see the Food and Beverage division's margins "squeezed because raw material prices and energy costs will continue to rise while selling prices will continue to be competitive”. The rising cost of raw materials to produce the beverages will lead to an increase in the selling prices of the beverages (Mesenas, CNA, 2011).

2.5. Critical Issues The report has analyzed YEO’S as a company and its marketplace by using the internal and external knowledge. To achieve the success, YEO’S need to effectively manage critical issues to, 

Clearly identify their target markets in order to satisfy the needs of consumers.

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Use promotional tools like personal selling, participation in the trade shows or events such as School Open House, Music Concerts or IT Shows and advertising on popular newspaper and magazines like Today, Straight Times and i-Weekly.

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Build a good relationship with customers by updating them with the latest programs about upcoming products or company’s events to motivate them in making purchase.

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Develop the next generation of product with more interesting features towards customers.

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Apply advanced technologies in manufacturing processes in order to lower the operating costs so that YEO’S would have a more competitive price as compared to its competitors in the market.

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Create a more creative, attractive, brand new, lively and youthful image to target more young consumers.

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Continue to build brand awareness that will drive customers to existing products as well as ease the marketing efforts of future products.

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Marketing Plan: YEO’S Asian Drinks

3. MARKETING STRATEGY The main focus of YEO’S is to continue their growth in market shares with their targeted market; mainly the older generation (baby boomers, generation-x). The key to marketing strategy is to focus on increasing awareness among the younger and health conscious consumers by improvising current products and developing new product to cater to their needs. Advertisement, marketing campaigns and on-going promotions are tools to create a learning process for the consumers about products information and product offerings. 3.1. Mission YEO’S mission is to expand its role in the Food & Beverage industry by improving its quality as well as innovating it’s packaging to bring the best product to customers. With the success of those previous products, YEO’S is now planning to improve and come up with new product that will hit the market. Besides, with its wide distribution network in Asian’s drink, the company can diversify and focus more on targeting the market in Western countries.

YEO’S understands the need for products that offers a better value and high quality than its competitors. The mission of YEO’S does not only in-line with the venture, but also high chance of successes.

3.2. Marketing Objectives For a company to target its market effectively, it needs to set specific, measurable, achievable, realistic and time specific market objectives. In order for YEO’s to gain more market share in the beverage market, it emphasizes on the taste, quality, and packaging of its beverages and also its availability to anyone at anytime.

Below are some of the objectives that YEO’s has to achieve in their upcoming market: 

Earn significant market share in the next five years by putting more marketing effort to target the younger generations in terms of more attractive