UNIVERSITY OF ECONOMICS AND LAWS

INTERNATIONAL ECONOMIC RELATIONS

___________________________

GROUP PROJECT

EXPORT STRATEGY OF BFAST INSTANT SOUP

OF MASAN CONSUMER MASAN GROUP TO
SINGAPORE.

Subject: International Business.

Instructor: Ph.D Phm T Mai.
Group: 4 K12402A.

TP. H CH MINH 10/2014

UNIVERSITY OF ECONOMICS AND LAWS

INTERNATIONAL ECONOMIC RELATIONS

___________________________

GROUP PROJECT

EXPORT STRATEGY OF BFAST INSTANT SOUP

OF MASAN CONSUMER MASAN GROUP TO
SINGAPORE.

Subject: International Business.

Instructor: Ph.D Phm T Mai.
Group: 4 K12402A.
1.
2.
3.
4.
5.
6.
7.

Ng Th Dung
L V Kin Duy
Lng Th Mai Linh
Nguyn an Khnh Phng
Trn Th Bo Trn
Hunh Th M Trinh
V Phm Phng Uyn

K124020140
K124020142
K124020170
K124020209
K124020247
K124020249
K124020257

MC LC
CHAPTER 1. THE COMPANY AND THE PRODUCT..................................................................1
1. The overview of Masan Group.................................................................................................1
1.1. Masan Group.......................................................................................................................1
1.2. Masan Consumer.................................................................................................................1
2. Bfast instant soup.....................................................................................................................2
3. Potential export market Singapore..........................................................................................2
CHAPTER 2. MARKET INFORMATION......................................................................................4
1. The overview of singapore market............................................................................................4
1.1. The economic geographic environment...........................................................................4
1.2. The political legal environment.......................................................................................5
1.3. The social cultural environment.......................................................................................6
2. Singapores instant noodles market...........................................................................................6
2.1. Singapore Instant Noodles Market Potential.......................................................................6
2.2. Instant Noodles Market Shares...........................................................................................7
2.3. International Competitors...................................................................................................7
2.4. Price of Instant Noodles in Singapore.................................................................................9
CHAPTER 3. SWOT ANALYSIS..................................................................................................10
1. Strength....................................................................................................................................10
2. Weakness..................................................................................................................................11
3. Opportunities............................................................................................................................11
4. Threats.....................................................................................................................................13
CHAPTER 4. PRELIMINARY MARKET ENTRY STRATEGY...............................................15
1. Product strategy.......................................................................................................................15
2. Pricing strategy........................................................................................................................16
3. Distribution strategy................................................................................................................17
4. Promotion strategy...................................................................................................................19
5. Strategy implementation..........................................................................................................20
6. Cost estimation........................................................................................................................20

LECTURERS COMMENTS

CHAPTER 1. THE COMPANY AND THE PRODUCT

1. The overview of Masan Group
1.1. Masan Group
Masan Group is one of Vietnams 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 Vietnams
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 Vietnams 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, Vinacaf, Wake Up, Kachi and Vinh Hao through a
strategy of putting Vietnamese consumers first.

2. Bfast instant soup

Bfast 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. Bfast is designed as the premium
brand to provide a healthy breakfast for customers. Bfast has no
MSG, no color, no preservatives added. Only 90 seconds in
microwave or 7 minutes in boiling water, this instant rice chicken soup will give the
perfect taste.
Bfast instant soup is derived from the housewives' desire to bring your family a
nutritious and convenient breakfast. Therefore, a special thing of Bfast 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 sauted 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 do not need to use preservatives. So consumers
who are interested in nutrition, health and safety can be assured when choosing Bfast.
3. 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. Bfast instant soup with 100% real
2

chicken and mushrooms has many standard food features such as taste, convenience, timesaving and cheap. Therefore, Bfast may meet Singapore consumers 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. Bfast is non-fried instant soup. Accordingly, it is an opportunity for
Bfast to enter the Singapore instant food market.
For those above reasons, Singapore is believed to be a potential market for our
product.

CHAPTER 2. MARKET INFORMATION

1. 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 6 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 Singapores
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.
4

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, Singapores 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 Peoples Action Party (PAP) the peoples 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
Storages 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 do not have time to prepare meals for their family.
On the other hand, as Asian countries, Singapore and Vietnam have similar food
culture, so Bfast is likely to satisfy Singaporeans taste.
2. Singapores 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),
Singapores 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.
6

Nowadays, Singapore is a country with a large young population for whom

convenience is important. Singaporeans are too busy with working and nearly have no
time for cooking so convenience food is their favorite because convenience foods can help
them save time effectively.
Current value growth of instant food is set to continue its strong trend due to the
good performance of cups/bowl instant and pouch instant noodles which are the main
growth drivers in 2013. Singapores demand for instant noodles in 2013 was the 28 th of the
world, 130 million packs (bags/cups) of instant noodles were sold out in Singapore,
according to World Instant Noodles Association.
2.2. Instant Noodles Market Shares
There are many companies leading Singapores instant market. Nissin Foods (Asia)
Pte Ltd is set to maintain its clear dominance with a significantly high value share of 47%
in overall noodles in 2013. Followings are the local instant noodles brand KOKA of Tat
Hui Foods Pte Ltd, MAGGI of Nestl Singapore (Pte) Ltd and products of Nong Shim Co.
Ltd. All of them are the famous brands of local noodles market.
There are also some products from Vietnam food companies, such as: Instant
noodles or beef Ph of Vina Acecook, Instant noodles of VIFON However, shares of
those companies in Singapores instant noodles market are not considerable.
2.3. International Competitors
2.3.1. Nissin Foods (Asia) Pte. Ltd
Nissin Foods (Asia) Pte. Ltd, used to be named Myojo Foods Company (Singapore)
established in Sep. 1970. Myojo is the first company to manufacture instant noodle in
Singapore since Feb. 1971. Over the years, Singapore product has successfully penetrated
into the market of North America, Oceania, Asean, Middle East
In addition to the production and sales of instant noodles products, the company
now provides specialized assistance to the Asian local subsidiaries in the fields such as
R&D, marketing, finance, accounting, and HR. NISSIN was awarded the HACCP in 2005,
ISO 9001 in 2006, and was also given the Healthier Choice for some of their products in

2008. Not only all its products certified HALAL, Myojo brand was also Tasty Singapore
Ambassador from 2007/2008.
2.3.2. Nestl Singapore (Pte) Ltd
Nestl Singapore (Pte) Ltd. is a wholly owned subsidiary of Nestl SA.
Headquartered in Vevey, Switzerland, it aims to be the leading Nutrition, Health &
Wellness company. Starting its operation in Singapore, Nestle has been present in
Singapore, Nestl has earned the trust of Singaporeans for being a food manufacturer with
the highest safety and quality standards.
Nestl brands are household names in Singapore. These include Milo, Nescaf,
Maggi, Kitkat, Purina, Friskies and dozens of other market leaders in their product lists.
The MAGGI Brand of instans noodless also famous and in the must-choice list of
customers when they think about convience noodles.
2.3.3. Nongshim Co. Ltd
Nongshim is a food company that produces instant noodles and snacks. It has led
the Korean food industry since its establishment in September 18, 1965. Its vision is to
become a global food company that pursues customers' health and happiness under the
slogan of the "Do Dream World Best".
In Singapore, Nongshims products include: Bowl Noodle (hot-tasting), Big Bow
Noodle (shrimp-flavored), Shin Cup Noodle and Saeng Saeng Bowl Udon; Snacks (e.g.
shrimp crackers, onion rings, sweet potato snack, honey twist snack, potato chips, etc.)
have been also a great success.
2.3.4. Tat Hui Foods Pte. Ltd
Home-grown Tat Hui Food Pte Ltd was founded by Mr.Lim Hi Lay in 1985. It
started out as a trader of Asian foods, which includes the sale of noodles and birds nest
product, before making heavy investments in instants noodles manufacturing and
production. Tat Hui Foods Pte. Ltd. in the present day is well-known for offering a
healthier choice in the instant noodles category with its star brand Koka.

Koka is definitely one of the few recognizable brands of instant noodles in the
Singapore market. Known for their signature red packaging alongside a large variety of
favorite local flavours such as laksa and satay, brand recognition and recall seems to
run high. Koka has no trans-fat, preservatives, artificial colouring, and added MSG
(replaced by natural spices and herbs, how lovely for the arteries!). In addition, being nonfried, the noodles also have a lower fat content of less than 1% as compared to the industry
average of 20%. In 1995, Koka was the first instant noodle brand to be awarded the Health
Promotion Boards Healthier Choice label.
2.4. Price of Instant Noodles in Singapore
Regular instant noodles in Singapore can be priced as low as $1.80 for a pack of
five because instant noodles are considered as convenience food with a low price for mass
consumers. Sometimes there are products targeting at premium market segment, like
Laksa LaMian, part of Prima's Easy Gourmet Indulgence range, costs $10.95 for a pack of
four. This product is also rated No.1 on the top ten instants noodles of all time 2013 by
The Ramen Rater.

CHAPTER 3. SWOT ANALYSIS

1. 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 5 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 4 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
10

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 7 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.
2. 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 its 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.
3. Opportunities
Market

11

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 Bfast.
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 Bfast instant soup - will be less
competed. Quality level: quality of products instant soup Bfast 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
12

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 Asians culture and
standards.
Bfast with good quality and timely to fulfill consumerss 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.
4. 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; Nestl 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
13

competitor has built a strong brand. Hence, we need extensive advertising campaign to hit
the market and raise the brand. Dependability and reliability: because Bfast 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, Bfast 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.

14

CHAPTER 4. PRELIMINARY MARKET ENTRY STRATEGY

1. 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. Bfast 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 Bfast is very potential to enter this market. And style of
Bfast can be known widely. As a result, we do not have to change its taste and need to
standardize the brand Bfast.
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, Bfast 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 Bfast complies with these regulations well, it is permitted to
import to Singapore. Hence Masan needs to enhance the quality, change the packaging,
15

slogan, label information, nutrition information of Bfast 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 Bfast:
+ 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). Bfast surely has a clearly label written by English. On the package, it
will show the net weight, the name Bfast, 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 Bfast exactly and are
completely suitable with the criterion of Singapore.
+ Slogan: A healthy breakfast with fresh ingredients
2. 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, Nestl Singapore, Nong Shim Co.Ltd.
+ Regulations: Bfast will have to bear tax levels from Singapore government.
+ Distributors for Bfast: 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.
16

 Pricing basis: based on general analysis on production costs, prices of competitors

and the needs of consumers.
Strategic Pricing: Neutral Pricing Strategy (Bfasts price will not be too higher
or too lower than competitors)
Reasons for Neutral Pricing Strategy:
- Consumers: difficult to determine the brand Bfast. Pricing too high will make
Bfast not compete with ancient trademarks at Singapore such as Nissin, Nestl.
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.

3. Distribution strategy
Overall of Singapores 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
17

stores with a view to ensuring about the products 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 Singapores 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
BFast 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
6 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
18

income customers live densely. In other words, customers can buy BFast in everywhere
and every time. This increases the sales volume because of the convenient distribution
points.
4. 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 - Bfast 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 products 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 Bfast 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, Bfast 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.
19

- TV advertisement: with the theme A healthy breakfast with fresh ingredients, the TV
ads clip focuses on making Bfast 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 3 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.
5. Strategy implementation
In this strategy to entering Singapore market, we plan to implement it in 3 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: 3 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.
6. Cost estimation
Expenses necessary for implementing each of the recommended actions is
estimated about $165,000 including 4 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
20

Total cost

$165,000

21

APPENDIX
Graph 1: GDP Growth of Singapore 2003 2013
Source: Worldbank

GDP growth of Singapore 2003 - 2013(%)

Column1
15.2
9.5

7.5

8.9

9.1
6.1

4.4

1.8

2.5
-0.6

Graph 2: GDP composition be sector of origin 2013

Source: Worldbank.

GDP - composition by sector of origin 2013

agriculture

industry

27%

73%

services

3.9

Graph 3: Singapores 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
1.
2.
3.
4.
5.
6.
7.
8.
9.

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