Marketing Plan: YEO’S Asian Drinks 1 1. EXECUTIVE SUMMARY The following report presents the marketing strategy of YEO’S Asian Drink. Yeo Hiap Seng was established in the 1930s in Singapore and has become well known as a large company that produces a wide range of products from beverages, culinary sauces and pastes to canned food. YEO’S is seen as a pioneer and innovator in the beverage category since they became the first to introduce bottled chrysanthemum tea and soya bean milk to the market in the 1950s and received numerous winning awards in international competitions (Yeo Hiap Seng Ltd, 2012). Despite many years of history in the industry, YEO’S is facing threats from strong competitors such as Season’s, Marigold, Allswell and Asian Story. These competitor brands offer products of wider variety at a comparable price as YEO’S. Its inability to capture the younger market causes the company to lose significant market shares and revenues. With increasing population in Singapore and Generation Y being a domain market, YEO’S has decided to focus its target market on the younger generation and the health conscious consumers. The improvisation of various healthier Asian drinks with improved flavor and the incorporation of fruit flavor into the Asian drinks will be used to attract the new crowd. The objectives of the healthier Asian drinks, Create brand new image for YEO’S Asian drinks Highly accepted among the consumers of different races and nationalities Widely sold in various road shows, supermarkets and food fairs
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Marketing Plan: YEO’S Asian Drinks
1
1. EXECUTIVE SUMMARY
The following report presents the marketing strategy of YEO’S Asian Drink.
Yeo Hiap Seng was established in the 1930s in Singapore and has become well
known as a large company that produces a wide range of products from
beverages, culinary sauces and pastes to canned food. YEO’S is seen as a pioneer
and innovator in the beverage category since they became the first to introduce
bottled chrysanthemum tea and soya bean milk to the market in the 1950s and
received numerous winning awards in international competitions (Yeo Hiap Seng
Ltd, 2012).
Despite many years of history in the industry, YEO’S is facing threats from strong
competitors such as Season’s, Marigold, Allswell and Asian Story. These
competitor brands offer products of wider variety at a comparable price as
YEO’S. Its inability to capture the younger market causes the company to lose
significant market shares and revenues.
With increasing population in Singapore and Generation Y being a domain
market, YEO’S has decided to focus its target market on the younger generation
and the health conscious consumers. The improvisation of various healthier Asian
drinks with improved flavor and the incorporation of fruit flavor into the Asian
drinks will be used to attract the new crowd.
The objectives of the healthier Asian drinks,
Create brand new image for YEO’S Asian drinks
Highly accepted among the consumers of different races and nationalities
Widely sold in various road shows, supermarkets and food fairs
Marketing Plan: YEO’S Asian Drinks
2
2. SITUATION ANALYSIS
YEO’S has a high awareness amongst the older generation of consumers due to its
long tradition in Singapore (Corporate-Overview, 2012). Its products have been
well received and strongly supported by Generation X since the first introduction
in Singapore market. Over the time, the company recognized the new target
market as “younger, more brand awareness and always looking forward to
freshness” (Lee, 2009). Thus, the main marketing objective is to target the
younger consumers and to instill the same brand values that their parents have.
This target group includes teenagers, young working adults and young families
who are in the beginning of their household.
2.1. Market Summary
Geographic
YEO’S immediate market is Singapore with a population of 5.5 million
(Population, 2011). With the increasing trend of globalization YEO’S has
expanded its business to other Asian countries like Malaysia, China, Vietnam
as well as other regional markets which are outside of Asia such as United
Kingdom, United States of America, Canada and Africa with the total
targeted population of approximately 120 million consumers (Soft drinks
international, 2009).
Demographics
Young consumers including students, young working adults and young
families between the age of 18 to 28 are the main target market for the
marketing campaign of YEO’S in Singapore (OFSA NATIONS, 2010).
YEO’S drinks must also take into consideration that Singapore is a multi-
racial society to have a suitable strategy to keep their position in the business
market.
Psychographics
YEO’S currently focus on young active generation with high purchasing
power and trendy mindset. This group of people seeks for new varieties,
experience and stylish products that allow them to have a wider social
Marketing Plan: YEO’S Asian Drinks
3
network (OFSA NATIONS, 2010). Besides that, YEO’S also targets on health
conscious consumers who prefer healthier food/beverages choices.
Behavioral
YEO’S is targeting at consumers who enjoy gathering with their relatives or
colleagues on occasions (Chinese Festivals, 2008) such as birthday parties,
festivals or meetings. At the same time, YEO’S also aims to attract potential
customers by offering variety of products.
Market Needs
YEO’S is providing a wide range of canned foods and beverages. The
company seeks to fulfill the following benefits that are important to its
customers:
Competitive price: Although the drink is inexpensive, customers will still
seek for comparable product of a cheaper cost. Consumers will search for
information and evaluate the alternatives.
Flavors: YEO’S is working hard to introduce new flavors to satisfy
customers’ need. As nowadays customers would like to try out new things
and like to have more choices.
Quality: Customers are not only concern of the price but also the quality.
A differential threshold or deterioration in the quality would greatly affect
the customer’s perception of the brand and product. One of YEO’S
strength is to maintain its quality of production and offer a healthier range
of products such as “less sugar” to customize to consumer preference.
Market Trends
Singaporeans are getting more health-conscious due to efforts made by the
government to promote a healthier lifestyle and the general concern raised by
the public towards health and wellness (Singaporeans are health conscious,
2010). Consumers are more educated and with the invasion of Internet in
every household, people are on the lookout for every possible means and
gadget to maintain vitality, preventive medications and activities to remain a
healthy lifestyle.
Marketing Plan: YEO’S Asian Drinks
4
Thus, YEO’S has had to keep up with this trend by coming up with new,
healthier incarnations of their drinks with more natural, fresh and healthy
ingredients.
Consumers especially the young are always attracted by fresh and innovative
products and are very welcoming towards new ideas or new product
innovation. To YEO’S, product innovation has always been a key focus since
they were the first company in the world to package its Asian drinks in Tetra
Brik aseptic containers using UHT process (Corporate- History and Heritage,
2012). Creating visible innovation would make YEO’S competitors’ products
date faster, re-segment and gain benefit by differentiating YEO’S from its
main competitors.
Market Growth
According to the National Statistical Authority of Singapore (2010), there is
an increase in population for both Singapore Permanent-Residents (PR) and
the non-residents (excluding tourists and visitors since 2000).
The statistics for PR and the non-residents in 2000 and 2010 are as follow:
Year PR Non-residents Growth (%)
2000 287, 500 754, 000 162.26
2010 541, 000 1, 305, 000 141.22
Country Year 2000 Year 2010 Growth (%)
Malaysia 305, 400 386, 000 26.39
China, Hong Kong & Macau 155, 000 175, 200 13.03
Indonesia 32, 500 54, 400 67.38
Other Asian Countries 22,400 90, 100 302.23
Among the PRs and non-residents, there is an increase of Asians living in
Singapore. As such there is a market growth for Asians, likewise for Asian
drinks.
Marketing Plan: YEO’S Asian Drinks
5
2.2. Competition
YEO’S is facing very strong competitors in the market for Asian Drinks. One
of the main competitors, Season’s (F&N) is offering similar products of a
comparable price (Fraser and Neave Ltd, 2012). Although Season’s has
lesser variety of Asian Drinks as compared to YEO’S, it offers a wide range
of Fruit Teas to target the increasing market of Generation-Y (Gen-Y) while
YEO’S hardly have any diversification from Asian Drinks (Yeo Hiap Seng
Ltd, 2012). This set YEO’S at its disadvantage as Asian Drinks may be good
enough to satisfy the older generations, it may not be as appealing to the
younger generations. The fusion of fruit teas adds appeal and may better
arouse the interest of the consumers.
For the other competitors such as Marigold add on pressure indirectly as its
product focus are milk and fruit juices. It has yet to become direct
competitors as most consumers recognizes the brand for milk and fruit juices
more than for Asian drinks or other beverages (Marigold, 2010).
2.3. Product Offering
YEO’S has entered the food and beverage market for a long time and has
successfully launched several products. Their current achievement is No. 1 in
Soy Milk Category, No. 1 in Tea Drink Category, No. 1 in Canned Meat
Range and their future targets are No.1 in Instant Noodle Category and No. 1
in Canned Food Category (Advameg, 2012).
Drink: YEO’S offers both canned drinks and Tetra Brik drinks to cater to
consumers’ different purposes and occasions. YEO’S Asian drink isa line
of beverage products of local favorites. The flavors in the line include
Chrysanthemum Tea, Chrysanthemum Tea with Luo Han Guo, Winter