The current report aims to develop the marketing strategies for Bait Al Karak that would expand the business in Singapore market. Bait al Karak in food and beverage industry has been running its operation successfully for long time. The purpose of the report is to identify the possible impact of the proposed business in Singapore market. Thus, to implement the purpose, the report starts with providing the criteria and justification of choosing Singapore as the market for the proposed business of Bait Al Karak. Likewise, the report is conducted by analyzing the macro and microenvironment of the proposed market. Eventually, it provides the critical success factors for the expansion of business in Singapore.
The actual customers for sustaining a food and beverage chain is mainly targeted towards the kids and the adolescents who have the intentions and preference for fast foods and exotic restaurant made items, which are prepared under combo offers with beverage as a complementary dish (Fletcher & Crawford 2013). In fact, the tourists can also be the potential set of customers if the outlets are planned to open in touristy places of Singapore, which will attract a number of customer for Burait Al Karak.
The potential target market, which has been identified in case of Burait Al Karak, can be determined by the segment analysis of the customers of Singapore. Considering the area as the best Asian Pacific eating capital the potential is immense, for opening up to a number customers and they can easily cater to a variety of audience in regards to the segments. In fact, the native people as well as the immigrants lead to the huge population, which can be resourcefully used by Burait Al Karak. Moreover, the amount of investment must be huge as the rate of consumption of the variety customers in Singapore is expanding over the years. Therefore, it has an extensive market with a diversity of people of 17.8% population growth rate from 2006 to 2012 (Statistics Singapore 2012). In regards to the (F&B) services, it contributes to 3.5 % to the GDP in 2012. In fact, the potential market can be resourcefully utilized as Singapore is regarded as a country with high level of food consumption. The food and beverage industry contributes to about 8% to the GDP, on a yearly basis therefore the customer segmentation can be easily be approved (Hayes et al., 2014).
Segment 1: The behavioral segment helps in deciding the advantages and the perceiving power of the new customers in Singapore. The introduction of the new products will lead to creating the rate of visits in the outlets of Burait Al Karak.
Segment 2: The demographic segment helps in determining the per capita income of the consumers of Singapore. The expenditure of the social class and the purchasing power is determined according to this criteria have helped in analyzing the segment (Wirtz et al., 2014).
Segment 3: The geographic criterion is important for comprehending the culture of South East Asia and type of customers that dwell in the area and have possibilities of visiting the outlet. The location of the stores and the outlets can be used to determine and influence the perspective of the geographic segment.
Segment 4: The psychographic segment analyses the preference and interests of the customers according to the activities and intentions of visiting a beverage store and purchasing assorted drink rather than having other light beverages at home.
It is not possible for all the identified segments to be attractive and valuable in nature to the subject of the business operations, which is available (Hayes et al., 2014). Therefore assessing the nature and the type of the segments shall determine the best of the resources which are required for the successful planning and strategy for the beverage brand.
Segment 1: The market factors have immense potential, as Singapore is largely dependent on a number of products, which are imported from other country, rather than its own dearth of production. In fact, the potential for profitability is quite strong which has a considerable growth rate. The bargaining powers of buyers are significantly important for the life cycle and the stage of development of the beverage group of Burait Al Karak.
The degree of differentiation is necessarily moderate as the numbers of customers are majorly different for the type of the customers, which will essentially increase creating a number of new and additional products that can be used effectively. The strengths, weakness, threats and opportunities for introducing the brand in Singapore have been analyzed.
The Barriers to entry and exit is comparatively low as Singapore is a democratic country and the restrictions are not forcibly imposed upon the business organization. It also supports the advancement of technology that supports the aids in the endorsement of the business through the means of social media. The required investment and the margins, which are to be considered for the establishment of beverage company is huge as the GDP is around 297.9 billion USD.
The segments that should be targeted by the business are mainly psychographic and behavioral which will determine the specific regulations of the specific scenario.
The information, which needs to be elucidated from a sample of the target market involves:
The information like preference of the customer, determination of the price and the strategic location are the crucial decisions, which is required form the sample for assessing the different plans. Relevant information like the interest of specific target customers is essential for several purposes and the psychology of the customers. The marketing plan recovers on issues, which has not been addressed that is required in finding out from the sample of the target market, which is essential for deciding on the terms of the sales and promotional decisions. In fact, the decisions, which are required from the sample, will be based on the following:
The types of questions, which shall be asked to the target sample, are as follows:
|
Product |
Need |
|
Refreshing drink |
A unique product, which can help in enhancing the preference or provide relief from the conventional ones. |
|
Flavor drink |
The flavor drink is necessarily for solving the requirements of some specific type of customers and might involve their suggestion for formulating special flavored drinks. |
Improvements 1: The improvements can be brought about by the different scenarios, which are comparatively important for the preference of the customers in regards to the scenario of providing assorted types of beverage cause about a certain special kind of product for the kids in general. One improvement is the type of the products, which are necessarily involved in providing the best of the practices to the beverage company (Armstrong et al., 2013).
Improvements 2: There must be strict imposition on the banned materials which are often punched within the packaged contents which has been one of the detrimental factors that often disrupt the impression of the beverage industry. Therefore, if Burait Al Karak, can cause about this improvement it can prove to be a revolutionary and efficient feature for its launch.
Improvements 3: Another improvement can be brought about by approaching for a different launch rather than the conventional ones. This includes the collaboration with some already established brand, which can be a boost for the promotion and establishment of the Burait Al Karak in the case of the development of the beverage market (Armstrong et al., 2013).
The features are not exaggerating or expensive to be included within a competitively priced product rather they are moderately functional and it will be easily incorporated within the specific price and plan, which would set up the strategy and structure of Bait Al Karak. The features of improvement are consistent with the rest of the marketing plan as it enhances and influences the development of the Bait Al Karak in the target market, which it is analyzing and preparing this market plan. The features are not necessarily cast as the competitive advantage rather it helps in improving and harnessing the impacts and reputations of the beverage company before being launched into a new market space.
Supplementary Service 1: The supplementary services shall be offered initially to a specific set of customers. The planned strategy for the supplementary offer is available for introducing new rates to the first come first serve customers. In fact, the supplementary offer must include the provisions for annual membership of reduced rates of the preferred drinks for the whole family.
Supplementary Service 2: One more supplementary offer is the importance of providing and reaching out to the kids who pose as one of the most important target market for establishing the product. In fact, supplementary benefits can be provided along with their establishment like offering the free samples of the drink if they purchase beyond a certain amount of beverages.
The redesign of the packaging will help in improving the competitive standing or enhance the aesthetic appeal of your product. This shall be done by initializing the various products under this brand with a different logo and symbol or inventing a different mascot, which shall represent the different amenities of the product in different forms. In fact, in order for it to take place the legal requirements for labeling have to be determined and analyzed under the specific scenario. In case of ideas and options, for renovating the brand it is required that the design, packaging, quality and presentation must all be involved and amended accurately in order to understand and analyze the environment or the place of its launch. It is important to cause about a modification in the brand structure prior to the launch of the products in a new market, which has led to the development of the outlook and dynamics of the brand. In order to make the approaches and the strategies more approachable the products of the brand can be used necessarily by using social media strategies in order to make it more resourceful and distinctive than its other brand and products. In fact, the current investment is moderate and the purpose of creating this modification is to bring about a positive difference in the approach of the brand. The current brand lacks in the technological use and the new means shall be modified accordingly. The customer base of the new products is different from the type of the old product in the sense that it is required for the specific scenario to establish and make a brand, which can help in recreating the phenomenon of having a best impression of the brand (Cavusgil et al., 2014).
Pricing is an indispensible part of the marketing strategy and it has some specific objects too.
Objective 1: The principal objective of determining price of any beverage is to gain a competitive edge over other similar products available in the market. Hence, the price should be a little lower than the products of equal quality.
Objective 2: The market share measures a company’s worth and hence, the objective of pricing should also be to increase the total sales of Bait Al Karak.
The pricing of this product is likely to be affected by the customer satisfaction rate and the extent of employee retention in the company. Besides, how the intangible benefits like the promotional campaigns or charitable programs funded by Bait Al Karak forms the status of the company will also affect the pricing strategy.
Since the beverage section of products does not belong to the necessary group, it is price elastic. Customers are likely to react moderately to the changes in price. Besides, the market in which the product will compete is monopolistically competitive with high brand value. Hence, unless the brand value of the product increases the customers will prefer its price to be low.
The production cost of the beverage includes the following categories of costs:
The strongest competitors of this brand are BreadTalk and Four Leaves. While BreadTalk is offering beverage products at a range of 11 to 15 AED, Four Leaves offers the same products between 11 to 14 AED. This information about the competitors pricing will enable Bait Al Karak to price their products slightly below this range for initial market penetration.
Discussing about fixed pricing vs. dynamic pricing it depends on the company it is more likely that the company will follow fixed pricing policy. However, pricing can vary according to seasonal changes such in summer hot beverages have to cost less and in winter, the company should offer the cold beverages at a cheaper price (Felzensztein et al., 2014).
The pricing tactics will include:
The investment, information and the required products flow in an organized and systematic manner in the case of the Bait Al Karak.
The products should have an intensive distribution strategy, which is feasible for providing all the new range of products that are available from the new stores to be launched for Bait Al Karak. It is important that the products which have been recently introduced from the new launch includes smoothies, flavored tea and other refreshing drink which people can consume in pouches or mugs in different tourist spots and relevant areas where the outlets are situated. The business operations of Bait Al Karak have two channels of communication, which are retailers and as they market the fresh products and do not depend upon any whole sellers.
References
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson Australia. Baker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia.
Felzensztein, C., Stringer, C., Benson-Rea, M., & Freeman, S. (2014). International marketing strategies in industrial clusters: Insights from the Southern Hemisphere. Journal of Business Research, 67(5), 837-846.
Fletcher, R., & Crawford, H. (2013). International marketing: an Asia-Pacific perspective. Pearson Higher Education AU.
Hayes, R., Wallage, P., & Gortemaker, H. (2014). Principles of auditing: an introduction to international standards on auditing.
Pearson Higher Ed. Röpke, W. (2014). A humane economy: the social framework of the free market. Open Road Media.
Wirtz, J., Tuzovic, S., & G. Kuppelwieser, V. (2014). The role of marketing in today’s enterprises. Journal of Service Management, 25(2), 171-194.
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