nghiên cứu phát triển thị trường đồ ăn chay tại singapore của CÔNG TY TNHH đồ ăn chay TINH tâm e

Nowadays, there is a trend that young people go to temples, attend mediation class,putting themselves outside of the dynamic and ongoing life, distress and purify the soul.Apart from Buddhist who eat vegetarian, there are also people who concern about theirhealth seeking for vegetarian food Resulting an increasing demand for vegetarian food.Besides, there is also a growing vegetarian market in Singapore now, due to theincreasing number of vegetarian & people, who concern about their health, wants toconsume more natural healthy food, as well as because this niche market has limitedsuppliers, PURE HEART VEGETARIAN LTD CO intend to enter this market in orderto seek stronger growth opportunities from overseas markets, as well as build a stronginternational brand to deepening market penetration in Asia market

“As Singaporeans increasingly lead busier lifestyles, traditional meal preparation anddining at home with family is commonly shifting to meals being enjoyed atrestaurants”,wrote SMa, 2004 Moreover, according to PriceWaterHouseCoopers, 2003,Singaporeans are living more like their Western counterparts, demanding healthier, moreconvenient foods Singaporean government also maintains a large health promotionprogram ( SMa, 2004) Besides, with 660,000 Muslim population, consuming 15-20%

of total foodservice sales, more and more foodservice operators are obtaining halalcertification in order to target this increasingly affluent and lucrative segment

Singapore is a small domestic market that depends on imports for food, energy andindustrial raw materials It hold several import regulations need noticing before enteringthe market (from Singapore Exporter Guide & Singapore FID database, 2006)

 Virtually a duty-free port and does not apply tariffs or quotas to food commodities. A customs permit is also required from Singapore Customs for shipment of food

Threats of substitutes:

For people who eating vegetarian food is not a must (because of religious, special diet ),they may still use normal food These below are some spot light of non-vegetarian foodsector, extracted from Process Food Market - Asia Pacific (2006-2007) report.

 Fish is widely consumed in Singapore with consumption averaging 71.6 kg /capita in 2003.

 Red meat is the most popular meat in Singapore with an average 10.5 kg/ capita in2003

 Poultry consumption has become popular in recent years mostly due to continuingconcerns over the safety of red meat, especially beef.

 Eggs are also popular in Singapore with approximately 228 units/ capita consumedin 2003.

Moreover, with a push for healthier foods, consumption of vegetables has greatlyincreased in recent years Neighboring countries Indonesia and Malaysia, both largeproduce exporters, allow Singaporeans to enjoy large quantities of fresh produce

Bargaining power of buyers

Singapore has many Buddhist and Muslim, the bargaining power of customers is verystrong, and most of Singaporean is vegetarian enthusiast because those people tend to

keep good health But the most vegetarian products of different company are using sameraw materials and the feature is similar, so that the buyers are very sensitive to the price,and difficult to build the consumer loyalty

Note that approximately 77% of Singapore’s population is Chinese, 14% Malaysian, and7% Indian, and each of these segments maintain their respective culture and customs.(Market Asia pacific, 2006) Furthermore, the country’s Muslim population abstains fromeating pork or drinking alcohol, and strict Buddhists and Hindus do not eat beef.

Bargaining power of suppliers

The main ingredients of PURE HEART vegetarian food are made from soya bean,vegetables, taro, cereal … therefore suppliers of the company are agriculture farms As anagriculture country, in Vietnam, it is easy to bargain and buy the material The bargainingpower of suppliers is weak The only issue is that PURE HEART should develop andmaintain a long term relation with any supplier that provide fresh and clean products.

Rivalry among the existing players

With PURE HEART into Singapore vegetarian market, it will face competition from bothof the local vegetarian industries as well as foreign vegetarian foods Suxianzi Industries(which is the largest vegetarian company of Singapore) and Chaste Je Way (which is acompany of Taiwan) are the main competitors And other local competitors are: FriendlyVegetarian, CK food, Green farm Food industries, and Jia Jia Wang trading and someEuropean or American company (which price is more expensive than others); and somerestaurant offered special dishes for vegetarian which is the potential competitors (ormaybe customers) of PURE HEART In Singapore vegetarian market, vegetarian food isnot the highly competition industry, thereby PURE HEART can reduce the cost ofproduct, and increase the degree of product differentiation to entry this market.

SWOT analysis

These below are those market and social trends and drivers that affect the FBT industrywhich help convenient vegetarian food such as PURE HEART products enter the market.

 With double-income families leading a busier lifestyle, there is greater demand forconvenience and speed of food preparation

 There is also increasing consumer consciousness of food safety, health andhygiene and the desire for environmentally-friendly products.

 There is a trend towards greater levels of pre-packaging, especially the growth ofsingle-serving portions/packages

 Levels of education and affluence are increasing amongst Singapore’s consumers.They are highly brand conscious and have a growing interest in seeking new andinnovative products

 Almost all the F&B manufacturers SMa surveyed said that their costs ofproduction in Singapore, or even Malaysia or Indonesia were higher than inVietnam These push up their selling prices, giving us an opportunity to offer alower price to customers

 Ethnic cuisines appeal to both new immigrant groups and the increasinglydiversified tastes of the indigenous population

In Singapore, big supermarkets are squeezing the FB manufacture’s profit margins verytightly There is also an international trend is towards supermarket house brands On topof this, innovation technology of local manufacture with the support of government toproduce better quality products & Singapore government also supports the local foodmanufacturers (People Daily, 2006)

PURE HEART has abundant products with attractive product appearance andkeeping product innovation to attract more consumers Besides, PURE HEART has the

expert power to produce the vegetarian food and has strong raw material suppliers and

worldwide distributions with excellent logistic systems, as well as the successfulexperience in abroad In additional, due to the lower cost of manufacture, PURE

HEART may set a lower price to compete with existing rivals in Singapore

The competition is intense In supermarkets, over 25,000 new packaged-goods productswere introduced in 1997 alone (Sales & Marketing Management, 1998) Vegansrepresent a fraction of the population, but Singapore merely has 3.87 millions populations(moveandstay.com, 2007) The taste of Vietnam and Singapore probably is different.There is a strong local brand named “SUXIANZI”, and many new entrants like the“Hong Kong Kam Kee”, TaiWan “Chaste Je Way”

Market segmentation

According the internal and external environment analysis, Singapore is a unique nationwith its melting pot of ethnic races and cultures Singaporean is afraid of lose and death,thereby they tend to hard working and keeping health In Singapore, vegetarian marketingsegmentation can be sorted by age, behaviors, religion and lifestyle …

Market target

In Singapore, the vegetarian target market includes whose diet consists of plant productsonly such as monks, nunsand some Buddhists who eating the vegetarian on 1st and 15th ofevery month; some patient can’t eat meats and youths who are want to lose weight orconcern about health.

Marketing mix

1.1.1 Product characteristics and classifications

Vegetarian food products are non-durable goods Customers really value our product asfoods good for health, and the basic product are the raw material, vegetable, fruits andother natural food; and customer expected lower price with high quality goods such as thematerial must be fresh, and taste must be good; comparison of this new marketcompetitors, our augmented product is that providing extra services For instance, providea cookbook to customer if they buy our product or other product support services todistinguish competitor’s product.

1.1.1.1 Product differentiation

Establish a Research and Development team to develop new products to satisfy the needsof customers Such as introducing curry flavor food to attract more potential customersand retain current clients.

Singapore market pricing overview

Pricing in Singapore is very competitive Major department stores and retail chains offerfixed-price merchandise, while the smaller shops expect buyers to bargain Hardbargaining is common in the commercial and industrial sectors as well, where buyersusually want a discount and vendors inflate their initial offers accordingly

Competition-based pricing

 Introductory products: from $3.80 to 3.20 /per 200g piece Suxianzi products : from $2.70 to $7.60, median and average $4 Chaste Je Way products : from $3.50 to $6

Based on the pricing of other competitors, we can set the price for our product that may rank from$3.50 to $4.5.Aaccording to Kotler and Keller, 2005, as the company want to enter the newmarket, the uncertainty is obviously, and competition-based pricing is a good solution because it isthought to reflect the industry’s collective wisdom.

Market-penetration pricing:

We can set our product at the price of $2.99 – a low price for new product in order to attract a largenumber of buyers and a large market share and psychological price Our product demand is highlyelastic, with the price-sensitiveness of Singaporean, we can use this strategy to launch andpenetrate the new market.

At this earliest state of introducing our product to a new market, advertising is most appropriate,given its capacity to reach large numbers of people relatively cheaply and quickly with a simplemessage Sales promotions can also bring a product name to the fore and help in the affectivestage, perhaps based on discount, coupons and sampling, help to generate trial of the product.Moreover, sales promotion will also be used in conjunction with intense personal selling effort togain retailer acceptance of the product.

PURE HEART company can use the corporation concept: “Natural healthy vegetarian food tobenefit people" or our product‘s core principle: “to give you the very best meat-substitutealternative” as our slogan for advertising campaign “Healthy food, healthy mind and healthybody” … can show off our benefit as well as our differentiation to other products

Major media types

There are many specialized trade magazines in Singapore and many trade fairs

food The major English-language daily newspapers are the Straits Times and the Business Times.The major Chinese daily is Lianhe Zaobao (http://www.zaobao.com ) If using Television

Chinese speaker, Suria channel for Indian…Depending on which segment we want to targets,those above media types would be considered to select.

Public relation

Since we has an advantage of lower manufacture cost, as well as avoiding a common perception oforiental people “ good is no cheap, cheap is no good”, instead of maximizing profit, we can usingmore fund to building a “environmental friendly” product.

Place

Singapore's distribution and sales channels are simple and direct Most consumer goods areimported by stocking distributors who resell to retailers Some goods are imported directly for salein the importer's own retail outlets Some of distributors that PURE HEART may consider such asAuric Pacific Marketing Pte Ltd, Be Fresh Pte Ltd, Ben Foods (S) Pte Ltd, Network FoodsDistribution Pte, Paramount Food Pte Ltd, Toh Li Food Products Pte Ltd, Xie Chun Trading PteLtd… they are quite large food and beverage products distributors in Singapore.

According to the survey conducted by AC nelson, FairPrice supermarket leads by a comfortablemargin with 8 out of 10 household shoppers shopping at FairPrice at least once every month,following by DFI Super/hyper, shop&shave, cold storage, sheng siong… seems to be a potentialbusiness partner to the company

PURE HEART decided to add Singapore as our next location for expansion!

A growing vegetarian market due to the increasing number of vegetarian as well as people, whoconcern about their health, wants to consume more natural healthy food in Singapore; PUREHEAR’s own abundant vegetarian food choices, broad experience with oversea market, strongsupply sources which help PURE HEART to set a lower price to compete with existing rivals inSingapore but quality much better than … all those are factor that lead to this decision.

 AC nelson surveys, 2003, Singapore shopper trend, at http://www.acnelson.com/

 Kotler, P., Keller, K., 2006, Marketing Management, 12th, Australia, Pearson/ Prentice Hall.

 Market Asia pacific, 2006, Household income increase, Singapore country, Singapore. Merrett, N., 2007, Singapore centre targets innovative food production :

http://www.foodnavigator-usa.com/news/ng.asp?id=76994-food-innovation-chinese-halal Market Asia pacific, 2006, Household income increase, Singapore country, Singapore. People Daily, 2006, Government support local food manuafacturers, at

http://english.peopledaily.com.cn/200701/13/eng20070113_340853.html Process Food Market - Asia Pacific (2006-2007), 2007, at

 Singapore manufacturer federation (SMa), 2004, TRENDS AND PROSPECTS OF THE SINGAPORE FOOD, BEVERAGE & TOBACCO INDUSTRY

 Singapore statistic department at http://www.singstat.gov.sg/

 Ramesh, S (8 August 2010) "Govt's goal is to ensure all S'poreans enjoy fruits of growth: PM Lee" Channel News Asia (Singapore).