ITC
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products.
Rapidly gaining market share in its businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards.
ITC Foods Division
ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the KITCHENS OF INDIA brand.
The packaged foods business is an ideal avenue to leverage ITC's proven strengths in the areas of hospitality and branded cuisine, contemporary packaging and sourcing of agricultural commodities.
Introduction to Singpore
Excellent Infrastructure
Good Financial System
Global trade linkages.-FTA with NZ,US,Australia
When it comes to appreciating food, the Singaporean palate ranks very highly.
When eating is a national passion here
The Singapore food culture comes from a collection of cultures, tastes and culinary exploits
PEST Analysis
Political
Singapore’s parliamentary democracy system has resulted in a stable and orderly government.
The government’s emphasis on efficiency and excellence in the public service ensures that businessman can efficiently conduct business without red tape & bureaucratic delays.
The government has created a pro-business environment by enacting favorable tax laws and offering funding for business ventures.
Political
Singapore has been consistently ranked as one of the most competitive nations and best places for business in the world.
In addition, Singapore has several initiatives supportive of business start-ups.
Economic
Singapore's economic development explains that the country s success so far is underpinned by , what it calls the core fundamentals Connectivity Openness Reliability & Enterprise
Social
Singapore’s national past time has been described as eating and shopping.
A fast food culture has ensured that fast food restaurants are always in demand. .
A high percentage of working mothers in Singapore has led to a demand for childcare centers.
Generally, the high spending power of Singaporeans translates into a demand for certain types of goods and services.
Technological
Singapore, described as a plug and play nation, is ranked as the third most wired nation in the world, and the most wired in Asia.
Marketing techniques using new technology ensure a better product reach.
Innovations in production technology have led to the creation of new products at competitive prices
Technological advances have led to the invention of new products and influenced the manner in which business is conducted
Demographics
Boasts of a population of 4.42 million
It’s a multiracial country with majority population of Chinese
The only official ethnic breakdown from the "Census 2000" shows : Chinese77%, Malay14%, Indian 7.6%, other 1.4%, (100% being Singapore citizens + "resident" foreign population).
Household Income-(SGD$) 4,943 approx
Current market potential
According to a research report by the Economic Intelligence Unit (EIU), popular F&B products in the Singapore market include prepared sauces, instant drinks and flavoured snacks.
Sectoral Performance
Singapore's F&B industry was ranked as the seventh largest manufacturing sector with a total output of SG$3.6 billion.
Total trade generated by the industry was worth SG$10.2 billion, of which imports made up 63 percent and exports 37 percent.
The proportion of the food dollar spent eating out grew from 39% in 1990 to 41% in 1999 (in major industrialized countries)
Canned Food Industry
Industry Description-
The landscape of the food industry is being shaped by a rising trend in the consumption of convenience food/meals
It has been forecasted that by 2010, 65% of the food dollar will be spent on convenience food
Industry Trends-
The convenience food market is growing steadily As consumers become more time-challenged, the desire to streamline the non-essentials of their lives and focus on priorities such as work, school or family life has increased. Consumers now demand greater convenience and speed of food preparation.
Canned Food Industry
Industry Opportunity-
Consumers are demanding a convenient food
“Packaged food remains a growing business area, likely to increase 2 to 3 per cent per year
In Singapore alone, the size of the convenience food market is 60% of the population[ and growing. The market is made up of several distinctly large sectors including working parents, students and young working adults; these sectors alone account for 75% of the market
Taking into account the large size and favorable growth trends of the market, it has tremendous sales potential.
Ref-According to Food and Beverage Retail Report – Singapore
Why Singapore
Singapore is strategically located in this region of fast growth and agricultural abundance. We can leverage on the regional resources and science and technology to meet new demands
Major food processing companies rely on R&D to keep ahead of the competition. In Singapore, food companies ranging from food packaging to specialty ingredients can find a strong base of R&D partners both in our public institutes as well as in the private sector
Why Singapore
The last pillar is connectivity. This points to Singapore's excellent logistics network, as well as the increased market access through our comprehensive network of Free Trade Agreements. These provide cost savings and added advantage for food companies bringing in supplies and exporting to the world.
Competitor Analysis
There are more than 300 F&B manufacturers in Singapore, with the bulk of output geared towards the export market
Singapore's greatest culinary institution...the hawker centers
Other similar players
Liam Siang Huat
Lee Kaya PTE ltd
Lee Pineapple Company
Meidi –Ya
Kraft Foods Asia Pacific Services
Future market potential
The republic's top four domestic exports in 2005 were processed food, edible oil and fats, seafood products, and commodities. And its top three export destinations were Japan, Malaysia and the US
Main target market: young working adults and students; these sectors combined, drive 60% of the demand for convenience foods in Singapore
Singapore’s resident population is an ageing one (35 to 50) and non resident is (24-30 )
High percentage of working mothers
Secondary markets: campers & tourists
Positioning
Packaging
Color
Red and Golden – Significance with the national flag so accepted color and also Red stands for happiness
Metal tins
Keeping insync with the environmental awareness packaging will be of recyclable material
Distribution
Distribution chain – wholesalers and retailers
Intensive distribution strategy
Recommended retail outlets: like seven eleven , cheers which are convenient stores
Grocery Stores, Specialty Stores, Malls, Food outlets e-grocery websites
Promotion
The Promotion strategy includes:
Introductory stage
Push Strategy
Buzz Marketing
Magazines
Hoardings
Teaser Ads
E-Catalogue
Growing stage
Push and Pull Strategy
Heavy Innovative Advertising
Maturity
Pull Strategy
Reminder Advertisements
SWOT
Strengths
High differentiation
Caters to those always on the move
Durable
Convenience food
People Perspective
Repute of the parent company
Opportunities
Rising level of incomes
The improving standard of living of the Middle Class
Rising consumption levels
Large size and favorable growth trends of the market
Weakness
Customer Perception
Good reputation of competitors and loyal customers
Difficult to penetrate market
Threats
The established competitors
Substitutes
Direct competitor reactions – Price War
Dealing with Competition
Unique Qualities - Marketing differentiation
Lifestyle – Haste, Efficiency and Mobility
Perfect Solution to quick, nutritious meals
Collaborating with existing manufacturers
Helps break into market
Riding on established Goodwill
Lessens resistance
Lessens risk
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products.
Rapidly gaining market share in its businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards.
ITC Foods Division
ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the KITCHENS OF INDIA brand.
The packaged foods business is an ideal avenue to leverage ITC's proven strengths in the areas of hospitality and branded cuisine, contemporary packaging and sourcing of agricultural commodities.
Introduction to Singpore
Excellent Infrastructure
Good Financial System
Global trade linkages.-FTA with NZ,US,Australia
When it comes to appreciating food, the Singaporean palate ranks very highly.
When eating is a national passion here
The Singapore food culture comes from a collection of cultures, tastes and culinary exploits
PEST Analysis
Political
Singapore’s parliamentary democracy system has resulted in a stable and orderly government.
The government’s emphasis on efficiency and excellence in the public service ensures that businessman can efficiently conduct business without red tape & bureaucratic delays.
The government has created a pro-business environment by enacting favorable tax laws and offering funding for business ventures.
Political
Singapore has been consistently ranked as one of the most competitive nations and best places for business in the world.
In addition, Singapore has several initiatives supportive of business start-ups.
Economic
Singapore's economic development explains that the country s success so far is underpinned by , what it calls the core fundamentals Connectivity Openness Reliability & Enterprise
Social
Singapore’s national past time has been described as eating and shopping.
A fast food culture has ensured that fast food restaurants are always in demand. .
A high percentage of working mothers in Singapore has led to a demand for childcare centers.
Generally, the high spending power of Singaporeans translates into a demand for certain types of goods and services.
Technological
Singapore, described as a plug and play nation, is ranked as the third most wired nation in the world, and the most wired in Asia.
Marketing techniques using new technology ensure a better product reach.
Innovations in production technology have led to the creation of new products at competitive prices
Technological advances have led to the invention of new products and influenced the manner in which business is conducted
Demographics
Boasts of a population of 4.42 million
It’s a multiracial country with majority population of Chinese
The only official ethnic breakdown from the "Census 2000" shows : Chinese77%, Malay14%, Indian 7.6%, other 1.4%, (100% being Singapore citizens + "resident" foreign population).
Household Income-(SGD$) 4,943 approx
Current market potential
According to a research report by the Economic Intelligence Unit (EIU), popular F&B products in the Singapore market include prepared sauces, instant drinks and flavoured snacks.
Sectoral Performance
Singapore's F&B industry was ranked as the seventh largest manufacturing sector with a total output of SG$3.6 billion.
Total trade generated by the industry was worth SG$10.2 billion, of which imports made up 63 percent and exports 37 percent.
The proportion of the food dollar spent eating out grew from 39% in 1990 to 41% in 1999 (in major industrialized countries)
Canned Food Industry
Industry Description-
The landscape of the food industry is being shaped by a rising trend in the consumption of convenience food/meals
It has been forecasted that by 2010, 65% of the food dollar will be spent on convenience food
Industry Trends-
The convenience food market is growing steadily As consumers become more time-challenged, the desire to streamline the non-essentials of their lives and focus on priorities such as work, school or family life has increased. Consumers now demand greater convenience and speed of food preparation.
Canned Food Industry
Industry Opportunity-
Consumers are demanding a convenient food
“Packaged food remains a growing business area, likely to increase 2 to 3 per cent per year
In Singapore alone, the size of the convenience food market is 60% of the population[ and growing. The market is made up of several distinctly large sectors including working parents, students and young working adults; these sectors alone account for 75% of the market
Taking into account the large size and favorable growth trends of the market, it has tremendous sales potential.
Ref-According to Food and Beverage Retail Report – Singapore
Why Singapore
Singapore is strategically located in this region of fast growth and agricultural abundance. We can leverage on the regional resources and science and technology to meet new demands
Major food processing companies rely on R&D to keep ahead of the competition. In Singapore, food companies ranging from food packaging to specialty ingredients can find a strong base of R&D partners both in our public institutes as well as in the private sector
Why Singapore
The last pillar is connectivity. This points to Singapore's excellent logistics network, as well as the increased market access through our comprehensive network of Free Trade Agreements. These provide cost savings and added advantage for food companies bringing in supplies and exporting to the world.
Competitor Analysis
There are more than 300 F&B manufacturers in Singapore, with the bulk of output geared towards the export market
Singapore's greatest culinary institution...the hawker centers
Other similar players
Liam Siang Huat
Lee Kaya PTE ltd
Lee Pineapple Company
Meidi –Ya
Kraft Foods Asia Pacific Services
Future market potential
The republic's top four domestic exports in 2005 were processed food, edible oil and fats, seafood products, and commodities. And its top three export destinations were Japan, Malaysia and the US
Main target market: young working adults and students; these sectors combined, drive 60% of the demand for convenience foods in Singapore
Singapore’s resident population is an ageing one (35 to 50) and non resident is (24-30 )
High percentage of working mothers
Secondary markets: campers & tourists
Positioning
Packaging
Color
Red and Golden – Significance with the national flag so accepted color and also Red stands for happiness
Metal tins
Keeping insync with the environmental awareness packaging will be of recyclable material
Distribution
Distribution chain – wholesalers and retailers
Intensive distribution strategy
Recommended retail outlets: like seven eleven , cheers which are convenient stores
Grocery Stores, Specialty Stores, Malls, Food outlets e-grocery websites
Promotion
The Promotion strategy includes:
Introductory stage
Push Strategy
Buzz Marketing
Magazines
Hoardings
Teaser Ads
E-Catalogue
Growing stage
Push and Pull Strategy
Heavy Innovative Advertising
Maturity
Pull Strategy
Reminder Advertisements
SWOT
Strengths
High differentiation
Caters to those always on the move
Durable
Convenience food
People Perspective
Repute of the parent company
Opportunities
Rising level of incomes
The improving standard of living of the Middle Class
Rising consumption levels
Large size and favorable growth trends of the market
Weakness
Customer Perception
Good reputation of competitors and loyal customers
Difficult to penetrate market
Threats
The established competitors
Substitutes
Direct competitor reactions – Price War
Dealing with Competition
Unique Qualities - Marketing differentiation
Lifestyle – Haste, Efficiency and Mobility
Perfect Solution to quick, nutritious meals
Collaborating with existing manufacturers
Helps break into market
Riding on established Goodwill
Lessens resistance
Lessens risk