EXPORT STRATEGY OF B’FAST INSTANT SOUPOF MASAN CONSUMER – MASAN GROUP TOSINGAPORE

UNIVERSITY OF ECONOMICS AND LAWS INTERNATIONAL ECONOMIC RELATIONS _ GROUP PROJECT EXPORT STRATEGY OF B’FAST INSTANT SOUP OF MASAN CONSUMER – MASAN GROUP TO SINGAPORE Subject: International Business Instructor: Ph.D Phạm Tố Mai Group: – K12402A TP HỒ CHÍ MINH 10/2014 UNIVERSITY OF ECONOMICS AND LAWS INTERNATIONAL ECONOMIC RELATIONS _ GROUP PROJECT EXPORT STRATEGY OF B’FAST INSTANT SOUP OF MASAN CONSUMER – MASAN GROUP TO SINGAPORE Subject: International Business Instructor: Ph.D Phạm Tố Mai Group: – K12402A Ngô Thị Dung Lê Vũ Kiến Duy Lương Thị Mai Linh Nguyễn Đan Khánh Phượng Trần Thị Bảo Trân Huỳnh Thị Mỹ Trinh Võ Phạm Phương Uyên K124020140 K124020142 K124020170 K124020209 K124020247 K124020249 K124020257 MỤC LỤC LECTURER’S COMMENTS ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… CHAPTER THE COMPANY AND THE PRODUCT The overview of Masan Group 1.1 Masan Group Masan Group is one of Vietnam’s largest private sector companies with a focus on the consumption and resources sectors They have a track record of actively building, acquiring and managing large-scale operating platforms that capitalize on Vietnam’s structural consumption and resources stories In October 2009, Masan Group increased capital up to VND 4,764 billion and November 5th, 2009 it was listed in HOSE with 476.4 million shares MSN is one of top multi-industry investment groups in Vietnam, its portfolio includes big enterprises that has high growth Location: Central Plaza, 802 room, 17 Le Duan Street, District 1, TPHCM Website: http://www.masangroup.com/ 1.2 Masan Consumer Masan Consumer is one of Vietnam's largest local diversified FMCG companies They manufacture and distribute a range of food and beverage products, including soya sauce, fish sauce, chili sauce, instant noodles, instant coffee, instant cereals and bottled beverages These companies have subsequently grown our product portfolio, domestic sales and distribution channels to establish a leading position in Vietnam’s branded consumer food and beverage product market Masan Consumer has created and owns some of the most recognized and trusted consumer brands such as Chin-Su, Nam Ngu, Tam Thai Tu, Omachi, Kokomi, Vinacafé, Wake Up, Kachi and Vinh Hao through a strategy of putting Vietnamese consumers first B’fast instant soup B’fast is a product of convenience food in Masan Consumer product list In 2013, it was introduced to the market as the first instant soup product B’fast is designed as the premium brand to provide a healthy breakfast for customers B’fast has no MSG, no color, no preservatives added Only 90 seconds in microwave or minutes in boiling water, this instant rice chicken soup will give the perfect taste B’fast instant soup is derived from the housewives' desire to bring your family a nutritious and convenient breakfast Therefore, a special thing of B’fast instant soup is the casserole pocket containing 100% real chicken and mushroom Cooking procedures ensure optimally to retain nutrients and flavor of chicken and fungi Chicken and mushrooms after sautéed completion are packed in the casserole pocket - the special aluminum bag designed to prevent air penetration after being sealed Then casserole pockets are sterilized in an autoclave at a temperature of 121 oC for 45 minutes to kill bacteria and other microorganisms, which helps maintain the shelf life of chicken and mushrooms for a long time without any additional any preservatives After being sterilized, casseroles pockets are stored for 21 days at normal room temperature to ensure the chicken and mushroom quality standards before being packaged This is the modern sterilization technology used commonly in processing packaged foods in developed countries around the world This production process helps to keep more freshness and nutrition of food and not need to use preservatives So consumers who are interested in nutrition, health and safety can be assured when choosing B’fast Potential export market – Singapore The demands for instant food in Singapore are not affected by changes in the economic situation, which may be attributed to the low price points of convenient food Besides, most of the customers expect that the perfect instant food is not only can bring them convenience, but also a delicious dish B’fast instant soup with 100% real chicken and mushrooms has many standard food features such as taste, convenience, timesaving and cheap Therefore, B’fast may meet Singapore consumer’s requirements Furthermore, nowadays, more and more Singaporeans are taking health into consideration when choosing food to eat However, there are many reports showing that most of the instant noodles contain the quantity of fat and sodium beyond the restriction recently, which increases the risk of having disease such as heart disease and cancer Also, some experts point out eating non-fried instant noodles is healthier than eating fried instant noodles B’fast is non-fried instant soup Accordingly, it is an opportunity for B’fast to enter the Singapore instant food market For those above reasons, Singapore is believed to be a potential market for our product CHAPTER MARKET INFORMATION The overview of singapore market 1.1 The economic – geographic environment First of all, one of the main advantages of Singapore is location Singapore is located in the heart of Southeastern Asia Also, the country has the status of “a premier International Maritime Centre” thanks to its port It is the second biggest container port in the world Moreover, one more big advantage of the port for the business is that it is connected with 600 ports all over the world Economic Indicators Population: 5.4 million GDP (PPP): $339 billion; 3.9% growth in 2013 Unemployment: 2% (2013 est.) Inflation (CPI): 2.4% (2013 est.) FDI Inflow: $63.8 billion (2013est.) Public Debt: 110.9% of GDP (2012 est.) Since independence in 1965, Singapore has a highly developed and successful free – market economy It enjoys a remarkably open and corruption-free environment, stable prices, and a GDP per capita higher than that of most developed countries The prosperous economy performance of Singapore is an advantage for trading According to the statistics from World Bank, GDP per capita is $60900 - the th biggest in the world From 2003 to 2013, GDP nearly doubled from $187.9 billion to $339 billion Besides, the country has one of the lowest unemployment rates in the world (2%) Therefore, entering Singapore, our company can enjoy its economic strength Industry and services accounted for 27% and 73%, respectively, of Singapore’s GDP in 2013 Service is more and more important to Singapore economy, evidenced by increasing share of the financial and business sectors Good services make an advantageous business environment for exporting and selling goods more easily Especially, Singapore has a large current account surplus, balanced fiscal budget, high savings rates and zero foreign dept This fact will help the business to restrict potential economic risks and exchange rate risks As a result of trade liberalization policy, over the past decade, Singapore’s trade rose significantly from S$516 billion in 2003 to S$985 billion in 2012 in nominal terms, achieving a compound average growth rate (CAGR) of 7.4% Export – import goods and services in Singapore are free, except motorcycles, alcohol, gasoline and cigarettes are taxed heavily It is an important advantage for foreign exporting companies Finally, out company will get big opportunities due to Singapore's macroeconomic stability, excellent telecommunications and infrastructure, an educated workforce 1.2 The political – legal environment The country has a parliamentary democracy and the Prime Minister is Lee Hsien Loong He is the leader of People’s Action Party (PAP) – the people’s party has won every general election since 1959 There is also a President in Singapore who is taking care of appointing the Prime Minister of Singapore At present the President in Singapore is Tony Tan Keng Yam In Singapore, a legal system is written under the English common law The Constitution of Singapore gives the fundamental principles for the three main organs which are The Executive, the Legislative and the Judiciary According to the research made by one Singaporean consulting company, the government in Singapore affects the business environment in a positive way The government “decides priorities and sets regulations using a rational, pro-business approach” Moreover, the government helps Singapore to become one of the most industrialized nations in the world As a result, the country has the best political stability in Asia Furthermore, according to the research made by World Bank, the country has the easiest conditions of doing business One more reason to name the government system of Singapore as an advantage for companies is the corruption level According to the results received by Transparency International organization, Singapore is on the fifth place on the list of the least corrupted countries in the world Moreover, Singapore has a good consumer protection policy and a tight commodity standard system 1.3 The social – cultural environment Singapore is a multi-cultural country There are three main culture groups in Singapore: the Chinese (76,4%), the Malays (14,9%), the Indians (6,4%) The main religions in Singapore are Buddhism, Islam, Christianity, Hinduism and Taoism Singapore has four national languages: Mandarin, Malay, Tamil and English For business and politics, English is the language of choice Singaporeans have both a perception of monochronic time and punctuality is a Singaporean's virtue Thus, it decides the consumer culture of Singaporeans In a research of Swee and Chin (1985), Singaporeans are said to be increasingly "westernized" and tend to be interested in the quickness and the convenience This trend was confirmed in Cold Storage’s report about the increasing demand for convenience products that supermarkets imports to adapt the changing needs about tastes and lifestyles of Singaporeans Research also has found that the concept of a non-cash society is very popular in Singapore and today, Singaporean consumers are better educated Therefore, they have higher purchasing power and are more sophisticated in their choices Besides, the research also showed that the increasing number of women participates in the labor force; its impact on convenience foods is inevitable Since the women not have time to prepare meals for their family On the other hand, as Asian countries, Singapore and Vietnam have similar food culture, so B’fast is likely to satisfy Singaporean’s taste Singapore’s instant noodles market 2.1 Singapore Instant Noodles Market Potential In Singapore, eating is often described as a national pastime and food, a national obsession With the highest per capita GDP in the world (in 2013 according to the IMF), Singapore’s per capita food consumption level is the highest in the region (approximately S$1,349 as forecasted for 2013 by Business Monitor International) Singapore imported over S$10 billion (approximately A$8.5 billion) worth of food Singapore is considered the most developed food retail market in Southeast Asia 10 CHAPTER SWOT ANALYSIS Strength Quality of management and staff Motivation: with the mission: “Convergence and nurture talent and desire to seek a breakthrough to enhance the benefits of products and services for customers”, all employees see their responsibilities in each stage of business process, with the goal of satisfying the customer's requirements Masan staffs are highly qualified and are trained carefully Morever, most of the members of the board of managers Masan Consumer have more ten years working in the corporate multinationals like P & G, Unilever, Kraft Food, Pepsi There are people of theme was holding the most important positions, such as Director General Members of the top management is also a major shareholder of the company should always be faithful, voluntary, adherent, dedicated with company Therefore, human resources are the greatest strength of Masan Group Production capacity and flexibility Supply of raw materials, Masan Consumer has many suppliers so not be dependent on any single supplier The raw materials are supplied by more than 60 suppliers Evaluating their suppliers periodically is to minimize the risk of contractors lacking credibility Synchronized modern machines, Masan Consumer is equipped with high automation of AVE_ITALIA, applying strict standards of food safety Efficient production systems with the highest quality standards No outsourcing or hiring 3rd party manufacturing to strictly control the quality and quantity of products Operating 19 production lines at factories, Masan Consumer R&D is comprised of approximately 75 employees tasked with improving the range and quality of our products Masan R&D is one of the most advanced R&D centers in Vietnam Financial capacity 14 Total assets from 2012 to 2013 has rapidly grown to 51.74% Net profit from operations in 2013 reached VND 3,769,006 million, an increase of 14.51% compared to 2012 Achieved record sales in 2013 Net sales for the period 2012-2013 increased by 14.94% market share of key commodities increased significantly Equity has increased 28 times in years, primarily from the accumulation of retained earnings and reached 16.000 billion at the end of 2013 The company continues to have strong cash accumulation by 2013 This funding source allows the company to invest in production infrastructure and invest in new field Weakness Quality of management and staff Human resources is usually change The state of the brain drain is always a problem There is a shortage of qualified staff, especially senior staff Production capacity and flexibility Apart from sauce, most ingredients are imported so dependent on fluctuations in exchange rates, this is very risky Furthermore, the materials are imported indirectly, through distributors so it’s is too risky to find suitable materials as well as the risk in the contract Masan did not create a brand mark on the foreign market (Singapore) so it is difficult to have the trust of consumers on their food and the company's distribution channels are limited and directly access ability to distributors and importers is limited.Product design has not varied Financial capacity Masan Consumer has many long-term loans and mostly floating rate Thus the business results of the company has more interest rate risk aBe difficult to raise capital with high cost Opportunities Market 15 Market size: Singapore is one of the largest food markets in the world, therein instant noodles market is expanding in both size and form Market trends: instant noodles market has the potential to develop into a strong trend for the convenience and reasonable prices Customer profile: The main customers are the youth, who favored the lightweighting, convenience and does not require too strict Accessibility: access to the market are rated relatively high, because Vietnam gradually has a foothold and a certain prestige in the Singapore, is also because the free trade policies of the Singapore government  With those mentioned above, Singapore is the potential market to develop product lines instant soup B’fast Government support Singapore government carries out trade policy towards the outside, protecting their commercial interests by building an free environment of international trade This makes the products imported into Singapore market is easier, if the products pass the standards of quality and safety, they will be allowed to penetrate the local market Vietnam government has policies to support exports, especially food processing industry Channels of distribution official distribution channels and accounts for a large proportion is the supermarkets, there are two major supermarket chains: Dairy Farm International Holdings (Cold Storage, Giant Hypermarket, Market Place) and NTUC FairPrice Supermarkets Besides, products is also sold in modern mini marts, convenience shops, traditional provision stores  With a diversified and widespread distribution channels, it will be an advantage for product to approach consumers in all segments, from high-income earners to those with average income or students Products Local products: There are various brands of products on the market, however, may realize that most of these products are instant noodles, so B’fast – instant soup - will be less competed Quality level: quality of products instant soup B’fast is proven during consumption and production in Vietnam, confirmed 100% real chicken and mushroom, provide adequate nutrients for the Family Breakfast Changing needs: people's needs 16 change, they may prefer to choose a handy and cheap product than go out for dinner at expensive restaurants Environmental: it is environmentally friendly product and has production process comply with the regulations on environmental protection Health & safety: Products are guaranteed for quality and food safety, the product is made from pure materials, through processing industry: pre-processing, processing and packing, sterilized in accordance with standards Social regulations: consistent with Asian’s culture and standards  B’fast with good quality and timely to fulfill consumers’s requirements, will have high potential growth Price Import tariffs: Vietnam is member of ASEAN so export and import operations should be easier Price-structure: fixed price structure, products selling in Singapore will only has different price from the domestic market due to tax and transportation tariffs Profitability: if the product successfully entry into the market, it will bring huge profits for Masan  price is often the advantage of Vietnam's exports products because domestic production costs is low and competitive External factor Freight rates: with the development of transportation, shipping cost to Singapore is not high, two countries are located in Southeast Asia and geographical distance is not far Threats Market Local and international competitors: as mentioned at point 2.3 instant noodles market in Singapore is highly competitive, with many direct competitors have a long history of growth: Nissin Foods (Asia) Pte Ltd; Nestlé Singapore (Pte) Ltd; Nong Shim Co Ltd; Tat Hui Foods Pte Ltd And Koka; and Vina Acecook, Vifon ( Vietnamese food manufactures)  Strong competition is considered to be the biggest disadvantage that Masan faced with when penetrating instant food market in Singapore Products: Brand-consciousness: similar in terms of reliability, because the brand Masan still pretty new to Singapore's consumer so brand recognition is not high, while the 17 competitor has built a strong brand Hence, we need extensive advertising campaign to hit the market and raise the brand Dependability and reliability: because B’fast is a new product on the market, it is not possible to avoid fastidious consumers will doubt about the reliability of the product, this should be demonstrated over time and the long-term use of the product as well as the reputation of Masan  Because the product is new, B’fast need time to gain the trust of consumers and partners Distribution: Partnership: for new market penetration so Masan have no partner in product distribution, this will be the initial disadvantage External factor: Tension: high pressure from competitors as well as from the inside company, it can be said, if this campaign is successful, it will pave the way for Masan penetrate deeper into the Singapore market, if not, might the other products of Masan will face to a lot of difficulties in case wanting to approach this market Space availability: because the market had too many giants so the available space is not much 18 CHAPTER PRELIMINARY MARKET – ENTRY STRATEGY Product strategy Soup is a delicious and nutritious food It not only is easy to cook but also helps our body digest well In the modern world, people have less time so convenient products are favored B’fast – instant soups with high quality is born to meet consumers’ needs and to bring this product to global market In Product strategy, we will analyze three factors: culture, economic development and product and technical standards First, about the culture, Singapore can be a multi-ethnic society, multi-language and multi-religion Education level of people is quite high In general, Singapore has the same cultural point as Viet Nam, so B’fast is very potential to enter this market And style of B’fast can be known widely As a result, we not have to change its taste and need to standardize the brand B’fast Next, the economic development has influenced consumer behavior very much Singaporeans tend to appreciate products with a lot of extra attributes customized to their tastes and preferences They are willing to pay more money for extra attributes despite the high prices Therefore, B’fast will focus on enhancing the quality such as increasing net weight of soup rice, real chicken or fungus and adding some extra attributes (small handlist attached to cook the best delicious soup in the shortest time) With high quality, Singaporean will be easy to accept the quite high price Finally, with product and technical standards, Singapore has not imposed quality standards ISO 9000, food hygiene standards HACCP, environmental management standards ISO 14000 However, the Singapore government is encouraging HACCP Besides that, food products must admit requirement as good as regulations in the Law “Sale of Food Act” Once B’fast complies with these regulations well, it is permitted to import to Singapore Hence Masan needs to enhance the quality, change the packaging, 19 slogan, label information, nutrition information of B’fast like the Law above The goal for product is “easy to identify, easy to read, easy to understand and easy to remember” In conclusions, Product Strategy includes four main points for B’fast: + Not change the taste + Increase net weight of soup rice, real chicken and mushrooms Besides that, add some extra attributes (small hand-list attached) + Comply with the regulations for quality of food products in Singapore well (quality, packaging, slogan) B’fast surely has a clearly label written by English On the package, it will show the net weight, the name B’fast, the origin – Masan Consumer and some necessary parts for a product such as ingredients, packing form, expiry date Images of our product will describe the nature as well as the origin of B’fast exactly and are completely suitable with the criterion of Singapore + Slogan: “A healthy breakfast with fresh ingredients” Pricing strategy  Factors influencing the Price Strategy + Income level: Singaporean people has high income level (55.182$ per capita in 2014, ranking number nine all over the world.) + Need: Instant food is now favored at Singapore With the fresh, nutritious and delicious meal as soup, Singaporean people can completely trust in it for the health + Competitors: no competitors in instant soup line, but it has to face to instant noodles line from big corporations such as Nissin Foods, Nestlé Singapore, Nong Shim Co.Ltd + Regulations: B’fast will have to bear tax levels from Singapore government + Distributors for B’fast: we need to have a reasonable price to contract with distributors because our competitors co-operated with them long time ago  Choosing the Price Discrimination Strategy because + The national market (Vietnam) and Singapore are separated + The price elasticity of demand is quite low since the income level of Singaporean people is really high and there is no competitor against Masan for instant soup line, but instant noodles 20 • Pricing basis: based on general analysis on production costs, prices of competitors and the needs of consumers • Strategic Pricing: “Neutral Pricing Strategy” (B’fast’s price will not be too higher or too lower than competitors) • Reasons for “Neutral Pricing Strategy”: - Consumers: difficult to determine the brand B’fast Pricing too high will make B’fast not compete with ancient trademarks at Singapore such as Nissin, Nestlé On the contrary, pricing too low will not create the image of the high quality - instant soups line as well as the differences of product Cost: variable costs are not the major proportion in product costs (because of direct exporting for distributors) The Neutral Pricing Strategy will still warrant - profit goals for company Competitors: strong competitors at Singapore always find the ways to attack price They can decrease their price to drive weaker one out of the market Therefore, neutral price will limit this problem - Suggested Price: 1.6$/pack/150gram Distribution strategy Overall of Singapore’s retail infrastructure and distribution system Singapore today has evolved to become a mature retail market where rents are stable and the infrastructure attracts many foreign players The Urban Renewal Authority (URA), a government statutory board, has been instrumental in the development of retail and it looked into the development of planned shopping centers and mixed-use developments in the central areas of the city The development of the Mass Rapid Transport System further enabled the development of retail in the country Retail distribution system in Singapore is the mix of concentration and fragmentation Two largest retailers are Dairy Farm and NTUC Fair-price supermarkets The former targets principally at the middle and higher income groups while the latter caters to the mass-market group Besides, Cold Storage Singapore, Robinson Group and Takashimaya Singapore are the other key retailers in the country A well-developed retail infrastructure has played a key role in the retail development of the country What is more, as a developed country with a fast-moving industry, Singaporeans nearly have no time for cooking so they tend to buy foods in the supermarkets or big 21 stores with a view to ensuring about the product’s origins and quality It is estimated that about 60% of the food retail sales of just over US$4.8 billion come from supermarkets, hyper marts and modern mini marts, while the rest are sold in convenience shops, traditional provision stores (mom and pop stores), petrol stations and wet market stalls About Singapore’s import regulations, processed products, after being imported, will be stored in food warehouse to be rechecked and ensured that those products come up to the quality and safety criteria This is a compulsory step all of imported goods have to get through After that, those products will be distributed to wholesalers or retailers Details of Distribution strategy Objective: find ways how to penetrate and bring our product to supermarkets, mini marts and convenience stores so as to make the best advantage of its customer quantity However, as a new comer to foreign market like Singapore, Singaporeans have no precedent information as well as familiarity with our product so we should rely on import agents whose long relationships with wholesalers or retailers to help us about negotiation Because the retail infrastructure is well developed and distribution system is a mix of concentration and fragmentation, our strategy is to deliver our product in two main ways One is to contact wholesalers and retailers, particularly NTUC Fairprice supermarket to introduce and persuade them to import our products NTUC Fairprice supermarket is the mass – market group so it is easy for it to accept our request Although B’Fast is high-quality product but as a new comer, there is no much trust in our brands so we have to enter a multi-classed supermarket like NTUC Fairprice first The NTUC Fairprice supermarket chain has 97 Fairprice supermarkets, 16 Fairprice Finest stores and Fairprice Xtra It also has 120 Cheers Convenience Stores and 20 Fairprice Convenience Stores The Fairprice chain is the most extensive in terms of consumer reach, geographically and across all income segments Stores are located in almost every large residential population concentration Its various customers will be our potential customers Two is learning from what leading firms has done in their distribution strategy, we can distribute our product intensively through other different ways like minimarts, convenience stores, grocery shops, etc especially in the areas where middle and high 22 income customers live densely In other words, customers can buy B’Fast in everywhere and every time This increases the sales volume because of the convenient distribution points Promotion strategy Objective: The most essential goal we must gain in promotion strategy is that establishing a new positive image of our convenience food product - B’fast and bringing it nearer to customers Many people may have negative attitude towards instant food because of the recent bad news We should prove that ours product conform to the Singapore food safety standard so as to create their trust in our product’s quality Pull strategy Our company focuses on food industry and our product is a daily used product, customers can use it without complex guide so this creates cost advantages for us Moreover, Singapore has an advanced advertising media industry There are a large number of media available, such as print media (newspaper and magazine), broadcasting media (TV and radio) and the Internet Those create favorable conditions to promote our product to customers fast and efficiently Therefore, we should implement pull strategy We recommend trial products campaign and sell B’fast at lower price in the beginning to aim at a large segment of the market As a new product introduced to Singapore market, we can set a booth for customers to try out it in the supermarkets or some other community events, for example, Singapore Food Expo Singapore Food Expo has been attested as one of the largest scale food events in Singapore Moreover, in the beginning period, B’fast will be sold at $1.2 to attract and gain popularity in customers Advertising strategy Regarded to Singapore market, Vietnam and Singapore are both Eastern countries so there is not much differences in culture between two countries; however, language barrier is one factor requiring us to change our current promotion strategy in Vietnam Therefore, we recommend carrying out “Dealing with countries differences” promotion strategy to harmonize with Singapore culture as well as Singaporean buying behavior 23 - TV advertisement: with the theme “A healthy breakfast with fresh ingredients”, the TV ads clip focuses on making B’fast more attractive and emphasizing the value of nutrition it brings to consumers Entering Singapore market, to convey exactly the content of it to audience and reduce noise levels, our TV ads clip has harmonized to Singaporean culture Famous Singaporean actors and actress will appear in the TV ads This will help create more intimacy, trust and attention from Singaporean customers - Internet marketing: our website http://www.masanconsumer.com/ should be taken into consideration It should be written into languages: Vietnamese, English and Mandarin Chinese to enable customers and business partners find it easy when visiting it - Other means: newspaper, online newspaper, panels and billboards at public places such as bus, gas stations, etc Strategy implementation In this strategy to entering Singapore market, we plan to implement it in stages: Stage 1: Market research - Objective: to get information about customer demand and customer taste together - with find ways to approach targeted customers Subjective: final customers Methods: mainly through market research company Period of time: weeks Stage 2: Strategy planning in details by R&D, Marketing and Sales Department Stage 3: Direct contact with importers, retailers and wholesalers to negotiate the contract Stage 4: Promotion Implementation Cost estimation Expenses necessary for implementing each of the recommended actions is estimated about $165,000 including kinds of cost Following are those costs in details: Exported quantity 5,000 buckets (30packs/bucket) Manufacture cost $0.4/pack * 150,000 = $60,000 Logistics cost (transportation, storage, commission, distribution) Market research cost Marketing cost $67,500 $15,000 (refer to Euromonitor International – a market research company $22,500 24 Total cost $165,000 25 APPENDIX Graph 1: GDP Growth of Singapore 2003 – 2013 Source: Worldbank Graph 2: GDP – composition be sector of origin 2013 Source: Worldbank Graph 3: Singapore’s Merchandise Trade and GDP in Nominal Terms, 2003-2012 IMPORT CONDITION OF PROCESSED FOOD The regulations regarding processed food are relatively rigorous Importers are required to source products from regulated establishments where, the food is produced under proper sanitary conditions Therefore it is essential that aspiring traders and manufacturers adhere to quality assurance procedures that are acceptable to the AVA To enforce this AVA demands the importers to submit certified-true-copy documents, from the food safety authority of the country of origin, certifying that the imported food product is produced or manufactured by a licensed or regulated premises The processed food Products which are being assessed for import into Singapore will be subjected to Sale of Food Act which stipulates regulations on: • Packaging • Sale by date/expiration date • Labeling requirements • The minimum or permitted levels of certain constituents of each food type All imported processed food products are subjected to inspection Certain food products have been identified through trend studies and classifieds as high risk products hence, requires pre-market assessment such as laboratory testing reports and health certificates to ensure the safety of the products Health certificates, issued by the authorities of the country of origin must contain the following details: • Description of product and packaging (including brand, trademark, if any) • Quantity, by weight • Name and address of the processing establishment • Name and address of consignor Name and address of consignee REFERENCES International Business textbook, Charles W L Hill Masan Group website http://www.masangroup.com/ Masan Consumer website http://www.masanconsumer.com/ Worldbank website http://www.worldbank.org/ Statistics Singapore website http://www.singstat.gov.sg/ World Instant Noodles Association website http://instantnoodles.org/ World Shipping Council website www.worldshipping.org/ Agri-Food % Veterinary Authority of Singapore http://www.ava.gov.sg/ Transparency International www.transparency.org/ and many other reference websites, documents…