Table of Contents
1. Executive Summary
………………………………………………………………………... 4
2. Introduction …………………………………………………………………………………
5
2.1 Company
Background ……………………………………………………………….... 5
2.2 Mission ………………………………………………………………………………… 5
3. Situation Analysis
………………………………………………………………………….. 6
3.1
Microenvironment – Internal Factors …………………………………………………. 6 3.2 Microenvironment – External Factors
………………………………………………… 8
3.3 Macroenvironment
…………………………………………………………………… 10
3.4 Potential
Markets ………………………………………………………….………..... 13
3.5 Competitors ………………………………………………………………….……......
13 3.6 SWOT Analysis of PrimaDéli
…………………………………………..………...… 15 4.
Objectives ………………………………………………………………………..………… 16 4.1
Corporate objectives ……………………………………………...………...….......... 16 4.2
Marketing Objectives ……………………………………………………….………. 16 5. Marketing Research ……………………………………………………………………
18
5.1 Secondary Data ………………………………………………………………………..
18
5.2 Primary Data
…………………………………………………………………………. 18
6.
Marketing Strategies ……………………………………………………………………... 20 6.1 Size of Potential Market
………………………………………………………………. 20
6.2
Market Segmentation …………………………………………………………………. 20 6.3 Target
Market Strategies ……………………………………………………………… 21 6.4 Consumer Behavioural Aspect
……………………………………………………….. 21 6.5 Positioning Strategies
…………………………………………………………...……… 22
7. Strategic
Marketing Mix ……………..…………………………………………………... 24 7.1 Product Strategies ……………...……………………………………………………….
24
7.2 Price Strategies
……………………………………………………………………….. 27
7.3 Place Strategies
……………………………………………………………………..... 27
7.4 Promotion Strategies
…………………………………………………………………. 30
8. Implementation and Evaluation
…………………………………………………………. 32
8.1 Action Plan …….………………………………………………………………………
32
8.2 Marketing Financial
Expense Budget and Control …………………………………... 32
8.3 Sales Forecast
………………………………………………………………………… 33
8.4 Methods of Control and
Evaluation ………………………………………………….. 33
9. Conclusion ………………………………………………………………………………… 36
10. References ……….…………………………………………….………….……………….. 37
11. Appendix
…………………………………………………………………………………... 39
1
EXECUTIVE SUMMARY
In the next 12 months, from Nov 08 to Oct 09, PrimaDéli
will implement major changes in terms of image, variety, advertising and
products.
PrimaDéli
is Singapore’s first home-grown bakery. In consumers’ eyes, it has always been a traditional
and trusted bakery. However, due to the
influx of many new bakeries and the unfortunate Salmonella poisoning incident,
PrimaDéli has suffered a loss in its market share. We will be implementing new strategies to
rectify the problems and keep our brand competitive in the present and future market.
Here
are a few notable strategies we will be implementing.
1.
Setting up a new outlet
in Tanjong Pagar, targeting people working in the offices nearby.
2.
Variety will be
enhanced by the Internal Chef Competition.
3.
New waffle cafés will
be set up at AMK Hub and Tampines Mall.
4.
Giving the shops a
brighter and fresher outlook.
5.
New advertising
strategies and promotion plans.
The
sales forecast and expenses have been tabulated in the report. From the results, we are confident that our
proposal is feasible and will definitely aid in rebuilding the brand
image. This holistic approach will allow
PrimaDéli and the environment to benefit together in the long run.
2
INTRODUCTION
2.1
Company Background
PrimaDéli was launched in 1992 and it is
Singapore’s first home-grown bakery franchise. It is under the management of Prima Food Pte
Ltd. Since then the award winning
PrimaDéli bakery franchise has become the longest-running Singapore food
franchise. The outlets are evenly
distributed in different major businesses, shopping malls and residential
areas. The bakery outlets also cater to
a diverse mix of races and cultures.
PrimaDéli have their very own Dial-a-Cake Delivery Service so it is
extremely convenient to purchase your cakes from anywhere in Singapore.
2.2
Mission
Since 1992, PrimaDéli’s primary values are
unwavered, that is, to transform the bakery and confectionery industry by
adopting modern production and retail management techniques, information
technology and strong branding.
3
SITUATION ANALYSIS
3.1 Microenvironment – Internal Factors
3.1.1 Company’s Resources
PrimaDéli has approximately
400 employees, working in 41 different retail outlets. Another important resource of PrimaDéli is
their 16 years of established branding and reputation.
3.1.2 Performance
The more popular items in PrimaDéli
include waffles and fresh cream cakes. On average, 250-400 waffles and 3-5 cakes are
sold daily. This amount to the sales of
approximately 10K-12K during a non-festive month and 15K-18K during a festive
month in city area. Sales generated in
heartland areas are generally higher than in city areas. The estimated revenue in heartland outlets
ranges from 40K to 50K monthly.
3.1.3 Existing
Marketing Mix
3.1.3.1 Products
PrimaDéli serves a wide range of
top quality pastries, waffles, breads and cakes. From Singapore favourites and Asian delights
to French pastries and Western treats, PrimaDéli has a range of nearly 70
delicious fresh-baked goodies and more than 150 different cakes. In addition, PrimaDéli also focuses on credit
cards payments and cake deliveries as the augmented product to enhance overall
shopping experience.
3.1.3.2 Prices
PrimaDéli has always strived to be
competitive and reasonable in the pricings of their products. Prices are value-based according to the
products perceived value. Compared to
its direct competitor, Breadtalk, PrimaDéli’s cakes and bread are less
expensive. The price of bread ranges from as low as $0.90 to $1.50 while their pastries
range from $1.30 to $1.80. Cakes range
from $20 to $135 and waffles are priced at $1.20 to $1.50.
3.1.3.3 Places
PrimaDéli has 41 outlets and are distributed evenly
around Singapore. Other than the 2
outlets located at Orchard Road Centrepoint and Lau Pa Sat Festival Market, the
rest of the outlets are located at heartland areas.
3.1.3.4 Promotions
The promotions of PrimaDéli can be divided into latest
and long-term promotions. Under the long
term promotion, the main objective is to reward UOB, HSBC credit card holders
and Prima card holders by giving 10-15% discount in all PrimaDéli outlets and
their Dial-a-cake service. PrimaDéli has
also tied up with Citibank to provide complimentary home delivery. In tune with Hari Raya and Singapore Formula
One Grand Prix, PrimaDéli came out with related promotions - 15% off is given
to selected Malay pastries and they made their cake of the month related to
F1. These promotions are to stimulate
short-term sales.
3.2
Microenvironment – External Factors
3.2.1 Competitive Advantage
In order to appeal and entice consumerism, PrimaDéli has
placed themselves at equal standings with their competitors by having five
distinct edges. The main feature they
edged over direct and indirect competitors is the ability to cater to a smaller
yet significant consumer market – Muslims.
It is a small and profitable group that should not be forgone.
Being under Prima Food Pte Ltd, a subsidiary of the
Prima Group, PrimaDéli has an advantage in the confectionary industry. By having bread and pastries in frozen dough
form, they save time, cost and has consistent quality in form, taste and
texture. Lesser investment in bakery
equipments would be required. In addition, it also reduces dependency on
special bakery skills to produce quality products.
PrimaDéli is equipped with a comprehensive and
innovative range of European, American, Japanese and Australian bakery
equipment, from Prima Modern Machinery Pte Ltd (PMM). PrimaDéli also has a team of trained and
experienced technicians available to provide prompt after-sales service.
The Singapore Bakery Industry Training Centre (BITC) is
a partnership between Prima Limited and the Singapore Productivity &
Standards Board (PSB). The focus of this
constitution is to upgrade the skills and productivity of the baking industry.
PrimaDéli contributes to the well being of the society
by producing a new range of low sugar cakes gives satisfaction to consumers who
opt for a healthier option.
3.2.2 Strategic Alliance
In liaison with Prima Limited, PrimaDéli obtains a wide
range of wheat flour and bakery premixes. With their technologically advanced and fully
computerised mill coupled with stringent quality control, products always
conform to the specified specifications and quality standards.
PrimaDéli specialises in Point-Of-Sales (POS) systems, and
liaises with Prima Computer System (PCS) on on-going trainings, and research
and development programmes that are aimed at enhancing these existing skills to
provide better solutions.
PrimaDéli has partnerships with Overseas United Bank
(OUB) and Hong Kong and Shanghai Banking Corporation (HSBC). Card members are entitled to price discounts
for purchases done online or at the outlet itself.
3.3
Macroenvironment
3.3.1 Demographics
The total population in Singapore is estimated to be
4588.5(‘000) in 2007 and it comprises of 77% Chinese, 14% Malays, 8% Indians
and 1% others. Majority of the population is between 15-64 years old, 2599
(‘000) in 2007.
3.3.2 Economic
Singapore has an estimated GPD per capital
of 52, 9940 in 2007, and with a projected growth in 2009 of 4.5% - 6.5%.
Unemployment rate was 1.7% in September 2007 and 67.4% of the citizens are in
tertiary sector. Most of the people are
classified under the upper-class, middle or the working class consumers.
According to the Singapore Department of Statistics,
Singapore’s inflation was 7.5 percent in the month of April 2008 (refer to Appendix 1). The food prices alone rose by 8.5
percent. It is said the consumer price
index (CPI) was boosted by one of the factors which is the higher costs of
food.
3.3.3 Political
Due to SARS and hand-foot-mouth disease, the
National Environment Agency (NEA) encouraged F&B stores to participate in
the 'Singapore's OK' campaign in 2006 (refer to Appendix 2), which is launched by Environment
Minister Lim Swee Say, to boost customer’s confidence in purchasing from the
outlets.
To encourage healthier lifestyle, the Health
Promotion Board (HPB) organised the ‘Healthier Food Fair in the Heartlands’ on
the 30th August
2007 (refer to Appendix 3). With more food manufacturers
realising the importance of healthy eating, a greater range of healthier food
products is now available for Singaporeans.
3.3.4 Cultural
‘Flexi-work’ is now a
reality for countries, like Singapore, witnessing global trends in outsourcing,
regional competition, changing job demands and new life-style choices. Due to
the fast paced lifestyle, many Singaporeans choose bread
and sandwiches as an alternative choice of meal.
3.3.5
Technological
Technological advancement in today’s world has made life easier for
consumers as well as businesses. Its
enables businesses to connect with its customers more
efficiently and customers find it much easier to purchase products. PrimaDéli has the Dial-a-Cake delivery
services which other bakeries do not provide.
3.3.6 Natural
Cost of production is higher as price of flour increases by
30%. Similarly, prices of other ingredients such oil, sugar and dairy products
like butter, bread may cost more from Jan 2008 onwards. The worldwide
shortage of flour is due to bad weather affecting millet harvests in Canada and
Australia. Being a subsidiary of Prima
Group, which is an industrial group with Prima Limited, a floormilling company,
PrimaDéli could cut cost on flour by having a cheaper rate (refer to Appendix 4).
3.4
Potential Markets
3.4.1 Consumers
Potential consumers are as the following:
·
Students
·
Housewives
·
White-collar workers
·
Muslim Community
3.4.2 Locations
·
Hospitals
·
City area
·
Airport
3.5
Competitors
3.5.1
Direct Competitors
There are several direct competitors of PrimaDéli,
mainly Breadtalk, Crystal Jade Bakery and QBread (refer to Appendix 5). They
operate on a similar theme and have similar target groups. The strongest competitor is BreadTalk, which
is fast becoming a global and innovative brand. It is one of the youngest to
break into this market and yet the fastest in dominating the bakery scene.
3.5.2 Indirect Competitors
The indirect competitors of PrimaDéli serve
different food products but target close to the same market group as PrimaDéli.
They consist of competitors like Ya Kun
Toast and Old Chang Kee and consumers might prefer them as alternatives to
bakeries (refer to Appendix
6).
3.6
SWOT Analysis
 |
 |
4
OBJECTIVES
PrimaDéli aims to sustain the 3H
philosophy – Building a Healthy organization, being an Honorable winner and
making an Honest fortune. They targets
at promoting team spirit and creating a Prima family identity and place their
trust in achieving honourable success through fair, unprejudiced competition. PrimaDéli makes an honest fortune by
establishing trust, fairness and mutual benefits within its entire business
circle. Most importantly, they
contribute to the well being of the society.
4.2
Marketing Objectives
Within the next 12 months, we aim to achieve the following
five marketing objectives.
1)
We strive to increase sales
targets by increasing the variety of bread through Internal Chef Competition
every quarterly. PrimaDéli chefs would create
their themed collection of bread and send them into the competition and the
winning collection would be displayed at all outlets. This motivates chefs to
seek self-improvement to increase their chance of winning the coveted award.
2)
To contribute to the well
being of the society and environment, we target to reduce the usage of plastics
bags by 20% by the end of the period. “Bring
Your Own Bag” day would be held every Wednesday to aid in achieving our
marketing objective.
3)
We will to enhance all
outlets’ image.
4)
To increase the use of
technology in PrimaDéli, we are going to implement an extra mode of payment.
That is, via Ezlink.
5)
By targeting the
convenience consumers seek, we are going to open another outlet in the city
area.
6)
The opening of the 2 waffle
cafés at Ang Mo Kio Hub and Tampines Mall
attract consumers from generation Y. They get to choose a range of healthy sweet
treats and the Waffle cafes would be located near school districts and students
are our main target market.
5
MARKETING RESEARCH
Secondary
and primary research is used to assess our market potential as well as to find
out consumers’ preferences.
5.1 Secondary Data
Sources of secondary data came
from internet resources, online sources and newspaper articles (Appendix).
5.2 Primary Data
5.2.1 Interview
We did an interview with Mr Pal, outlet manager of Centrepoint’s PrimaDéli on 24th
September 2008. His sales are on average
10K-12K per month and during festive period, these figures would rise by 50%. In
addition, his bread and pastries are popular as companies buy them as finger
food for meetings. He also commented
that the Salmonella poisoning incident did not affect his sales when his shop
was reopened.
5.2.2 Observations
Through mystery shopping, we have observed
that the exterior of the outlets were not appealing (refer to Appendix 7). There was also no consistency in uniforms and
staff overall image among outlets. Appearance and placements of products were a
bit messy. The cleanliness of trays is another
issue. In addition, we also took note of
what consumers purchased and the service provided by the staff.
5.2.3 Survey
5.2.3.1
Objectives of Survey
We carried out one
hundred surveys which were distributed to both sexes of different ages to find
out (refer to Appendix 8):
·
If there is a demand in
establishing more outlets in the city area.
·
The potential in profiting from
healthy conscious consumers.
·
The current popularity of
PrimaDéli and its market share.
·
Potential consumer taste.
5.2.3.2 Survey
Conducted
100 surveys are conducted over a period from 25th
August 2008 to 14th September 2008 (refer to Appendix 9).
Personal surveys were conducted at Raffles Place, Orchard Rd and Tanjong
Pagar. The surveys were conducted during peak hours – from 8am to 9am, 12pm to
2pm and 5pm to 7pm. Internet surveys were
also conducted. We ensured that our
surveys were distributed evenly among the people who live in different parts of
Singapore.
6 Marketing Strategies
6.1 Size of Potential Market
Potential markets include existing customers, housewives,
white-collar workers and students whom take up 67.4% and 11% of the population
respectively. According to Singapore Department of Statistics, the percentage
of the Singapore residents’ ages between 15 - 64 in 2007 is 72.5%.
6.2 Market Segmentation
6.2.1 Geographical
Due to different expectations, we segment our market
into city areas and heartland areas.
People in city areas may seek more varieties and higher standards on
designs while people in heartland areas might put more emphasis on price.
6.2.2 Demographic
As our customers range from students to working adults,
the age group targeted will be from age 15 to 64. According to the Singapore Statistics
Department, the average monthly household income was $6,280 in 2007 (refer to Appendix 10).
6.3 Target Market Strategies
The target segments / markets are the following
·
White-collar workers working in
city areas. They are either PrimaDéli
existing customers or potential
customers.
·
Students from generation Y who
frequent PrimaDéli after school to buy waffles or bread. They are either PrimaDéli existing customers
or potential customers. Most of them are
likely to be interested in PrimaDéli’s waffle café.
6.4
Consumer Behavioural Aspect
6.4.1 Cultural Factor
Most Singaporeans consume bread everyday for breakfast,
lunch or a light snack. There are cakes
designed for festive seasons or special occasions for example, Christmas,
Birthdays or Weddings. Although
consumption of bread or cakes have always been a part of the western culture,
Singapore being a multi-racial society is largely influenced by it.
6.4.2 Social Factors
Family members’ buying behaviours are
influenced by each other. In our case,
it is the housewives who have the most influence. As they are usually the ones who do grocery
shopping.
6.4.3 Personal Factors
These days, there is a growing trend towards
a healthier choice of eating. Hence,
bread serves as better substitute over junk food.
6.4.4 Psychological
According to Maslow’s Theory Of Motivation (refer to Appendix 11), bread
falls under the category of physiological needs, which is most crucial.
Therefore, it motivates consumers to buy bread to satisfy their hunger.
In addition, prior to the Salmonella
poisoning incident (refer to
Appendix 12), consumers might perceive PrimaDéli in a negative way.
The selective retention of the negative information might affect PrimaDéli’s
sales greatly.
6.5 Positioning Strategies
6.5.1 Product Differentiation
Every 3 months, an internal competition will be held
among the chefs of PrimaDéli and the winner’s “Bread collection” will be
launched into the market. This allows
customers to have new choices to look forward to and different varieties to
choose from.
6.5.2 Service Differentiation
PrimaDéli is
currently one of the few bakeries that offers cake delivery service. It brings convenience to the customers and
reduces their time of making a trip down to the bakery.
6.5.3 Image Differentiation
A new signboard and new uniforms are designed to give
the company brand new outlook. As the
company’s main colour theme is red and white, it distincts itself from other
companies. Our positioning slogan,
“Adding life to Bread”, portrays our commitment to increase our products
variety and to create excitement among consumers.
6.5.4 Market Strategy
We will be implementing a “More for same” marketing
strategy. This means comparable varieties
(bread collection, ice cream cakes) are offered at a price cheaper than its competitors.
6.6 Product Strategies
The product strategies that PrimaDéli
is going to use would be as follows:
6.6.1 New Products
1.
Waffles with a touch of new flavours and varieties
Two PrimaWaffles cafés will be
launched. Waffles will be served in a
healthier manner. The waffles would be
topped with consumers’ choice of fruits that ranges from strawberries to
peaches and many more.
The waffles could also be topped
with different flavours of yoghurt ice-cream that include fat-free vanilla,
fat-free brownie fudge and others.
Consumers would be able to choose from several desired waffle shapes,
for example, heart-shaped or diamond-shaped.
For kids, we have Mickey Mouse and Hello Kitty shaped waffles specially
for them to choose.
2.
Breads and cakes collection
The “Internal Chef Competition”
will be held based on the theme given. The winning Chef would have the honour
of displaying his collection in every outlet for consumers to purchase as well
as a $200 cash reward.
The purpose of this competition
is to increase competitiveness among chefs and motivate them to be innovative
and creative. Consumers will look
forward and have the fresh feeling to see what collection will be up next.
3. Ice-Cream Cakes
We will be
introducing ice-cream like strawberry, black forest, tiramisu and vanilla
flavours. In addition, we also have unique local flavours such as durian and
horlicks ice-cream.
6.6.2 Brand
We will be launching two cafés in Ang Mio Kio Hub and
Tampines Mall that will be named “PrimaWaffles”. Variety will be enhanced by
the “Internal Chef Competition”. Below is the classification of our brand
strategy.
Existing New
|
“Collection of the month and Ice Cream Cakes”
Line Extension
|
“PrimaWaffles Cafe”
Brand Extension
|
|
Multibrands
|
New Brands
|
Existing
New
Advantages of line and brand extension:
1) Building on existing brand recognition and consumer loyalty
2) Cheaper than introducing new brand
3) It helps to segment the
market
4) Builds corporate image
6.6.3 New Packaging
1. Logo
We would redesign the plastic bags used for packaging
and a PrimaDeli logo would be included. A logo serves as a visual stimulation
to create awareness and establishes a sense of belonging among the
consumers.
2.
Handles on cakes boxes
Implementation of handles on cake boxes will
allow easy carrying and reduces the use of plastic bags. Thus, being more
environmentally friendly and also achieving our marketing objective; that is to
reduce usage of plastic bags by 20%.
3.
Chef Recommended Tags
“Chef Recommended” tags will be placed in front
of the popular bread and pastries. This allows consumers to have an idea of
what’s hot selling in the bakery and will aid in their buying decision.
7 STRATEGIC
MARKETING MIX
7.1 Price Strategies
7.1.1 Value-based pricing
One of PrimaDéli’s objectives is to have an outlet in
the city area for example, Tanjong Pagar.
Thus, with the introduction of the “Bread and Cakes Collection” every
quarterly, it increases the variety offered to consumers. Working adults generally have higher
financial capabilities and expectations. Therefore, PrimaDéli’s new image and
variety of products would cater to the higher expectations of working adults.
7.1.2 New product pricing
Market penetration pricing would be the suitable for the
new “PrimaWaffles”. We will be setting a
low price to attract a large number of buyers, mainly students. We will be distributing pamphlets with 30%
discount vouchers, which will allow consumers to try more of our products.
7.2 Place Strategies
7.2.1 New outlets
PrimaDéli will have a new outlet at Tanjong Pagar, a
business district packed with working adults. As working adults tend to
prioritise convenience when it comes to choice of bakery, an outlet in the
district will draw working adults who want to grab a bite while rushing to work
in the morning. In addition, companies
will buy pastries and cakes for meetings too. Therefore, there will be a
significant demand for bread, pastries and cakes in the area.
PrimaWaffles café will be opening two outlets at
different point of the year (refer to Appendix
13) at Ang Mo Kio Hub followed by Tampines mall. As there are many schools nearby, the café
will be a favourite spot for students to go to after school.
7.2.2 Design
PrimaDéli’s existing outlets will undergo a new facelift
to attract customers and enhance their shopping experience with varieties and
excitement. The new image will also give
PrimaDéli a distinct image against its competitors.
7.2.2.1 Outlet’s
Exterior
PrimaDéli:
Brightly lighted signboards with fluorescent lights will
be installed in all outlets.
PrimaWaffles café:
There will be an eye catching “PrimaWaffles” signboard
with our slogan for the café “A New Way for a New Day”. (refer to Appendix
14)
7.2.2.2 Outlet’s
Interior
PrimaDéli:
Current outlets will be re-painted in white to portray
the clean image of the outlets and pictures of our bread will be hung on the
walls to enhance customers’ experience when shopping in a bakery. Together with the bright signboard, the outlet’s
interior will also be made brighter to attract the publics’ attention from
afar.
PrimaWaffles:
To create a cosy and comfortable environment for
students to relax and savour the waffles, the café will be lighted with dim orange
lights. Sofa seats and bean bags will
also be laid around the tables.
7.2.2.3 Outlet’s
Products
PrimaDéli:
Tags will be placed in front of the bread trays. The tag
briefly describes the ingredients that go into making the bread. There will be a new corner in every outlets displaying
“Collection of the Month”.
PrimaWaffles:
Pictures of our waffles design and toppings will be hung
on the walls in the café so as to allow customers to be aware of what is
available to them.
7.2.2.4 Outlet’s
Service
Ezlink card payment will be implemented at all PrimaDéli
and PrimaWaffles outlets to increase efficiency. The uniform of the staff will be standardised
- white polo T-shirt, name tag, red apron, black pants and a headdress/cap (refer
to Appendix 15).
7.3 Promotion Strategies
7.3.1 Advertising
7.3.1.1 Bus
stop advertisments
PrimaDéli will place various advertisements at bus stops
and in newspapers to introduce the new outlet and PrimaWaffles café (refer to Appendix 16 ). It will be in December 2008 and May 2009. This will prior to the opening of the new PrimaDéli outlet in the city and the opening of PrimaWaffles.
7.3.1.2 Blogs
advertising
PrimaDéli will work with Nuffnang.com, Asia’s largest
blog advertising community. As blog reading and writing is a popular trend
among teenagers nowadays, advertising on blogs with high hits will allow the
young generation to be aware of PrimaWaffles. The advertising period would be in April and
October as advertisements will no longer be on bus stops and newspapers.
7.3.2 Sales Promotions
7.3.2.1 Pamphlets
with vouchers
Our staff will distribute pamphlets at locations near
the new PrimaWaffles outlets during the month of opening. The pamphlets will allow people to know more about
the opening of the new café. Vouchers of
30% discount are attached to the pamphlets to encourage visits to the waffle
café (refer to Appendix 17).
7.3.3 Public Relation
PrimaDéli will invite journalists from magazines from 8days
and I-Weekly to the newly renovated bakeries outlets as well as the newly
launched PrimaWaffles café. They will then write reviews about the new facelift
of bakery outlets as well as the waffles from the café. These reviews will be highly credible and
providing a favourable image to consumers.
7.3.4 Feedback Selection
Feedback forms will be placed in the outlets of PrimaDéli
and PrimaWaffles cafés. To attract and
encourage customers to write constructive feedbacks to us, we will be
conducting a feedback selection at every end of the month. Three selected feedbacks from customers will each
receive a $10 voucher from PrimaDéli or PrimaWaffles café.
8 IMPLEMENTATION AND EVALUATION
8.1 Action
Plan
A Gantt chart has been drawn out
across 48 weeks from November 08 to October 09.
It includes various advertising, implementations, outlet openings,
renovations and promotional activities that will be occurring. For detailed activities description, please
refer to the appendix (refer to Appendix
13).
8.2 Marketing
Financial Expense Budget and Control
PrimaDéli will put aside around $2.5 million for the
advertising, opening and revamping of outlets. This amount will be estimated to
be around 15% of our total targeted sales from 1st November 08 to 31st
October 09.
These are our estimated breakdown for advertising budget
for the newspaper advertisements:
·
JCDecaux’s Island Light
(6-Sheets) : $85,000
Twice per fortnight (1st December & 31st January)
·
The New Paper: $2746.66 per
advertising
Twice per week (1st December & 31st January)
Total: $43,946.67
·
TODAY newspaper : $5,647.46 per
advertising
Saturday to Wednesday per week (1st December
& 31st January)
Total: $45,179.68
·
LianHe ZaoBao: $8,713.33
Twice per fortnight (1st December & 31st January)
Total: $69,706.64
The total expense for all implementations is estimated
to be $2,068,315.98. The remaining 8% is used for miscellaneous and unforeseen
expenses. (refer to Appendix 18)
8.3 Sales Forecast
Our sales figures are calculated based on daily revenue.
Hence, our estimated figures from 1st November 2008 to 31st
October 2009 will be $16,670,280.
The calculation and assumption is shown in Appendix 19.
8.4
Methods of Control and Evaluation
8.4.1
Sales Monitoring
The sales department will collect sales
report weekly from all outlets. At every month’s end, information collected
will be used to calculate the monthly sales report figures of the different
outlets. If the total sales figures decreased
by more than 10% or if any particular outlet has poor performance for 3 consecutive
months, the marketing manager will review the situation and identify the cause. Any issue identified will be brought up to
the monthly sales meeting. The problem
has to be rectified with a new strategy.
8.4.2 Meetings
There will be three forms of meetings.
Monthly meetings
During these meetings, the sales and
marketing department will address issues regarding the sales
figures and how it can be improved. They will have to analyze, evaluate and to
come up with a proposal which will then be submitted to higher management for
approval.
Quarterly meetings
Quarterly meetings involve supervisors from each
respective outlet and the marketing department. They will exchange feedbacks
and observations on the current situation of their outlets. New ideas could be
generated to increase the sales.
Yearly meetings
The annual meeting will be held once a year
to review on the performance of the company.
Problems faced by the company will also be addressed and improvements
could be made in the upcoming year.
Awards will be given to outstanding individuals who contributed
significantly to the company and outlets with remarkable sales results will
also be rewarded.
8.4.3 Surveys and Feedbacks
Apart from the feedback selection that we will be
conducting every quarterly to enquire about the quality feedbacks from the
customers, surveys will also be conducted quarterly to determine customer
satisfaction. Any valid suggestions or
complaints will be referred to the customer’s service departments for
rectifications.
9
Conclusion
This project has allowed us to grasp better understanding among our
group members despite our differences. It was not a smooth sailing one as all
of us have different opinions on different issues and we do not concur with
each other at times.
Initially, everyone was confident and ready for the challenge. However,
our first obstacle came when we wanted to market the sporting brand Reebok. Being
a subsidiary of Adidas a year ago, we had to forgo this idea and we had to
start from scratch.
During the middle phase of the project, we had trouble finding time to
meet up due to personal and academic issues. This slowed down the progress of our project.
There were also times when we do not see eye to eye. However, we take each suggestion seriously as everyone’s
view is important.
Time management was another problem we encountered. We seldom meet punctually hence this reduces the
time we spent on the project. However as
the project progress, we started to meet on time and work on our tasks
efficiently.
Overall we managed to settle our differences and work as a team to
complete the project despite the tight schedule. Through this experience, we gained insights of
being a marketer and we got to deal with problems that are likely to occur in
real life situations.
10
References
Author
Unknown. (2007). PrimaDéli. Available:
http://www.primadeli.com.sg. Last accessed 5 October 2008.
Statistics Singapore. (2007). Statistics Singapore - Key Annual
Indicators. Available:
http://www.singstat.gov.sg/stats/keyind.html#demoind. Last accessed 5 October
2008.
Statistics Singapore. (2007). Statistics Singapore.
Available: http://www.singstat.gov.sg/. Last accessed 5 October 2008.
Author Unknown. (2008). Singapore inflation rate hits
new 26-year high of 7.5% in April. Available:
http://www.channelnewsasia.com/stories/singaporelocalnews/view/349581/1/.html.
Last accessed 3 October.
Author Unknown. (2002). Update of Singapore's OK' Campaign -
(2006). Available:
http://app.nea.gov.sg/cms/htdocs/category_sub.asp?cid=220. Last accessed 1
October 2008.
Author Unknown. (2007). Healthier Food Fair in the Heartlands .
Available: http://www.hpb.gov.sg/hpb/default.asp?pg_id=3242. Last accessed 26
September 2008.
Lim, Tania. (2008). New Singapore - Moving with the times, going
flexi-time. Available: http://community.jobscentral.com.sg/node/672. Last
accessed 5 September 2008.
Hoe Yeen Nie. (2008). Price of flour up 30%, bread may cost more
from Jan 2008. Available: http://www.channelnewsasia.com/stories/singaporelocalnews/view/306678/1/.html.
Last accessed 17 August 2008.
Author Unknown. (2008). Key Income Trends 2007. Available:
http://www.singstat.gov.sg/pubn/papers/people/op-s14.pdf. Last accessed 2
October 2008.
11 Appendix
(Appendix 1)
(Appendix 2)
(Appendix 3)
(Appendix 4)
(Appendix 5)
Direct Competitors
BreadTalk
Size and Performance
BreadTalk also known as a designer confectionery store was listed in June 2003
and had their first retail outlet opened in July 2000. They currently operates 24 retail outlets
island wide through its subsidiary BreadTalk Pte Ltd and is known as the
largest bakery bread chain in Singapore.
They sell a wide range of bread, cakes, buns and pastries and won the
“First Promising Brand Award (SPBA) given by ASME in August 2002. Recently,
they open new and unique ToastBox Kampong Kopitiam-Styled coffee houses that
are typically attached to a main BreadTalk outlet. They are also the main market leader in the
new concept bakery with over 450 employees working in the company.
Level of Threats and
Vulnerabilty
There are existing
competition in Singapore (Fourleaves, Sweet Secrets, Bengawan Solo) and with
more bakeries starting to operate in the market, it creates a market saturation
in the local bakery industry. As the
level of threat increases, different bakery outlets start to create their own
unique kind of products for the consumers.
Strategies ,Culture
and Mission
BreadTalk built a
winning concept in Singapore before venturing abroad and also ensure that the
company is operationally ready before taking on overseas market. They also choose own-and-operate and
franchising as complementary strategies.
BreadTalk protects their trademark and other intellectual property in
local market so to ensure the company’s secret are kept. When franchising, they choose partner with
strong networks and operations so that they can focus on building the brand.
BreadTalk has
revolutionised the culture of bread consumption with its visually appealing, aromatic
and unique tasting products. Their mission
is to lead a lifestyle culture with new innovative changes and creative
differentiation to craft products with passion and vibrancy.
Strengths ,Weaknesses
and Competitive Advantages
BreadTalk is the market leader, the only
public firm locally in bakery operations and offers 150 of wide range of
products to choose from. They have
strong franchise partnerships, which in turn allow them to have higher
economies of scale. They have a unique
concept and branding so as to distinguish themselves from traditional bakeries
in the market. They also develop
products reflecting contemporary lifestyle and current events.
BreadTalk outlets are
characterised by a white minimalist, space-age décor, coupled with the
extensive use of see-through glass panels, creating a bright-looking
fluorescent lit-boutique-like feel that allows people from outside the shop to
look in. This allows consumers to view
the whole bread making process. Stylish
plastic carriers used for purchases are trendy looking and carries over the
minimalist concept of pure white packaging.
They have a 20 years experienced management
team that controls and market their company.
BreadTalk retail outlets are located at strategic location (near public
transport system, Major shopping malls).
Their innovative products can be easily replicated and they do not have
delivery services for their products.
These are some of their weaknesses.
Product, Price, Positioning and
Distribution
BreadTalk's most famous
and popular bread item is its floss bun, aptly named "Flosss". Sales of this pork-floss bun make up 20% of
its monthly sales. BreadTalk stocks more
than 50 varieties of baked goodies, with exotic names like "Spice
Girl", "Crouching Tiger, Hidden Bacon", "Moshi
Mushroom", "Earthquake Cheese Loaf", "Down2earth" and
"Mount Fuji Swirl". Cakes with
intriguing designs and flavours have also appeared in the outlets. In addition, customers can look forward to
tasting 10 to 20 new creations in the stores each month, attracting customers
to make repeated visits. They have a total of 500 different varieties of
breads, buns and cakes each with its own unique name, personality and favour. The products are priced are around 1 dollar
to 2 dollar.
Crystal Jade Kitchen My Bread
Size and Performance
Crystal Jade Kitchen My
Bread is a unique bakery as it takes up a small section of its other business
which is the Crystal Jade Kitchen restaurant.
They are a new concept bakery that just have generally quite similar in
varieties and prices as PrimaDéli based on common chinese delicacies, hence, making it a potential
competitor. They have a total of 11
outlets islandwide in Singapore.
Level of Threats and
Vulnerability
Crystal Jade Kitchen My
Bread does not pose any real threat as they have not established themselves as
a bakery outlet yet. However, the set up of the bakery shop right beside the
restaurant is a new concept.
Strategies, Culture
and Mission
They use a complementary strategy of
attracting consumers who are already dining in the restaurant to savour
treats from the bakery as a form of appetiser or dessert. They are a Hong Kong style of bakery. Their mission is to provide
superior service & quality cuisine.
Strengths ,Weaknesses
and Competitive Advantages
Crystal Jade Kitchen My
Bread has a 20% discount on all their bread and pastries after 8.30pm. They do not have a lot of range of products
unlike other bakeries in Singapore as they only sell mostly Hong Kong style
pastries. Their main competitive
advantage is that they are located just beside their main Crystal Jade Kitchen
restaurant so consumers would find it more convenient to purchase from them.
Product, Price, Positioning and
Distribution
Crystal Jade Kitchen My
Bread offers quality Hong Kong & European style
buns, pastries, bread, festive gift pack & an innovative design of cakes. Their most popular items are their egg tarts
and Bo Luo bun. They also have extraordinary flavours like Hong Kong cocktail
bun which is a mixture of coconut and butter.
(Appendix 6)
Indirect Competitor
Ya Kun Toast
Size and Performance
Ya Kun Toast has 30 retail
outlets islandwide in Singapore. They
have outlets in 7 countries including Singapore. They were awarded Singapore
Promising Brand Award (heritage) in 2005.
Level of Threats and Vulnerabilty
Ya Kun Toast poses
mid-level threat as they only specialised in kaya toasts, soft boiled eggs and
beverages. They are not a direct competitor
of PrimaDéli.
Strategies, Culture and Mission
Ya Kun Toast has a business format franchise
that offers its distinctive F&B concept incorporation exclusive rights for a
party to operate at a specific location or territory for a period of time. Ya Kun Toast creates a traditional coffee shop
with the concept back to the olden days. Pictures of the past were put up on
the wall to let people understand about the brand story. The use of marble
table and stools, the traditional way of brewing coffee using the socks and the
use of charcoal grill for the kaya toast enables them to bring out the
heritage.
Ya Kun Toast have successfully bridged the
gap between the younger and the older generations. It revolutionizes the kaya
toast culture in Singapore which able to be the niche from the competitive food
industry. To attract the younger
generations, Ya Kun Toast bring in the western recipe of French toast and added
them into their set meals. The traditional coffee shop is no longer a place for
the old but becoming a place for all ages, social levels and cultures to gather
around for a relax session.
Strengths, Weaknesses
and Competitive Advantages
Ya Kun Toast created a
strong identity in the F&B industry.
Hence, Ya Kun Toast comes to mind when people think of kaya toast. They have outlets located in many major
shopping centres in Singapore, near offices and housing areas. Ya Kun Toast
products do not have any preservatives, artificial colourings and flavourings, hence
it is a healthy choice for most consumers.
They were awarded the Hazard Analysis and Critical Point (HACCP) Award
for the manufacture of their kaya.
Product, Price, Positioning and Distribution
For their main menu, Ya
Kun Toast serves kaya toast, ice cream toast, soft boiled eggs, french toast,
cheese toast, butter sugar toast and cheezy french toast. For their beverages, they serve coffee and
tea, ice-blended drinks, silkyz barley and ice lemon tea. Their average price per person for a full
toast meal is around $4-$5 depending on the different types of toasts and
beverages ordered. The price is slightly higher than the others as consumers
have to pay for the quality and the brand.
(Appendix
7)
(Appendix 8)
Factors that affect preference
Patronise PrimaDeli
Purchase from PrimaDeli
More PrimaDeli in areas like orchard road and raffles place
Products that come to mind about PrimaDeli
Prefer Organic Bread
Seek Healthier option
(Appendix 9)
Sample Survey
1. Gender
□ male □
female
2. Race
□ Chinese
□ Indian
□ Malay
□ Others
3. Age
□ 0-15
□ 16-25
□ 26-35
□ Above 35
4. Occupation
□ Student
□ Working Adult
□ Housewife
□ Others, Pls specify:_____________
5. Income
□ $0 - $500
□ $500 - $1000
□ $1,000 - $3,000
□ Above $3,000
6. Which part of Singapore do u live at?
□ North
□ South
□ East
□ West
□ Central
7. How often you buy bread on a weekly basis?
□
None
□ 1 - 2
□ 3 - 4
□ 5 and Above
8. Which period of the day will you buy bread?
□ Morning
□ Afternoon
□ Evening
□ Night
9. Which of the following bakeries you frequent
the most?
□ Breadtalk
□ Crystal Jade Bread
□ Prima Deli
□ Others
10. What are the factors that affect your buying
decision?
□ Price
□ Variety
□ Taste
□ Convenience
11. Do you patronize Prima Deli?
□ Yes, please proceed to question 12
and 13
□ No, please proceed to question 14 and
15
12. What would you buy from PrimaDeli?
□ Bread
□ Cakes
□ Waffles
□ Others
13. Would you like to see more PrimaDeli outlets
located in areas like Orchard or
Raffles Place?
□ Yes
□ No
14. Which are the following reasons you do not
patronize Prima Deli?
□ Not enough outlets in the area you
live at
□ The food poisoning incident
□ Lack of variety
□ Lack of taste and quality
15. What products comes to your mind when you
think of Prima Deli?
□ Bread
□ Cakes
□ Waffles
□ Others
16. Would you buy organic bread?
□ Yes
□ No
17. Would you seek a healthier option?
□ Yes
□ No
18. Would you
want to see ice cream cakes added?
□ Yes
□ No
19. What would
you like to see more from Prima Deli?
_____________________________________________________________________
Survey Results:
1)
Gender – 50 (males) and 50
(females)
2)
Race – 70 (Chinese) ,15
(Malays), 10 (Indians), 5 (others)
3)
Age – 10 (0-15), 20
(16-25), 50 (26-35), 20 (Above 35)
4)
Occupation – 25 (students),
60 (working adults), 10 (housewives), 5 (others)
5)
Income – 23 ($0-$500), 11
($500-$1000), 35 ($1000-$3000), 31 (Above $3000)
6)
Part of Singapore – 19
(north), 8 (south), 28 (east), 23 (west), 22
(central)
7)
Often you buy bread – 4 (none),
47 (1-2), 36 (3-4), 13 (5 and above)
8)
Period of the day you buy bread
– 28 (morning), 33 (afternoon), 33 (evening), 6
(night)
9)
Which bakeries frequent most – 56
(bread talk), 18 (crystal jade bread), 23 (prima deli), 3 (others)
10)
Factors that affects – 9 (price), 24
(variety), 54 (taste), 13 (convenience)
11)
patronize PrimaDéli – 41 (yes), 59 (no)
12)
buy from PrimaDéli – 23
(bread), 34 (cakes), 41 (waffles), 2 (others)
13)
see more PrimaDéli in areas
like orchard and raffles place – 64 (yes), 36 (no)
14)
reasons you do not patronize PrimaDéli
– 63 (lack of varieties), 28 (taste quality), 7 (food
poisoning), 2 (not enough outlets)
15)
product come to mind about PrimaDéli – 23 (bread),
34 (cakes), 41 (waffles), 2 (others)
16)
buy organic bread – 64
(yes), 36 (no)
17)
seek a healthier option – 84
(yes), 16 (no)
18)
add ice cream cakes – 84
(yes), 16 (no)
19)
More varieties
(Appendix 10)
(Appendix
11) Maslow’s Theory Of Motivation
(Appendix 12) food poisoning incident
(Appendix 13) 
(Appendix
14)
(Appendix 15)
(Appendix
16)
Newspaper
|
Bus Stops
(Appendix
17)
|
(Appendix
18)
1st Quarter Expenses
2nd
Quarter Expenses
3rd
Quarter Expenses
4th
Quarter Expenses
(Appendix 19)
Assumptions:
|
Items
in Prima Deli
|
Total
Unit
|
Cost
Per Unit($)
|
Total
Cost($)
|
|
Waffles
|
200
|
1.50
|
300
|
|
Cakes
|
5
|
30
|
150
|
|
Bread and
Pastries
|
400
|
1.30
|
520
|
|
Ice Cream
Cake
|
2
|
33
|
66
|
|
Total sales per day = $1036
|
Total sales 1 year
= $378,140
Total sales for 42
outlets = $15,881,880
|
Items in Prima Waffles
|
Total Unit
|
Cost Per Unit($)
|
Total Cost($)
|
|
Standard Waffles with 3 toppings of
fruits
|
180
|
3.50
|
630
|
|
Standard Waffles with 1 scoop of
yoghurt ice cream
|
100
|
4.50
|
450
|
|
Total sales
per day = $1080
|
*minimum order is 3 toppings
*each topping is $0.50
Total sales 1 year
= $394,200
Total sales for 2
outlets = $788,400
Total sales for
Prima Deli and Prima Waffles = $16,670,280
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