INTERNATIONAL  MARKETING  480  COMPETITIVE  MARKET  ANALYSIS  

       

HUANGNAM  AEKAPHOL,  DIANIQUE  ASHLEY,  LEONARDO  GREENE,  DAVID  ISKANDER,  STACY  PHUNG  

 4  DECEMBER  2013  

 DR.  NGUYEN  THUC  DOAN  

       

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EXECUTIVE  SUMMARY    Singapore  is  a  multi-­‐cultural  country  with  one  of  the  highest  GDP  per  capita  around  the  world.    The  majority  of  the  population  in  Singapore  comes  from  neighboring  countries  with  roughly  three-­‐fourths  of  them  coming  from  China.    English  and  Mandarin  Chinese  are  the  two  most  common  languages.    The  typical  Singaporean  has  either  a  great-­‐income  or  just  enough  money  to  take  advantage  of  the  affordable  services  of  Singapore  -­‐  while  some  have  both.    With  that,  childcare  and  domestic  help  (maids)  is  quite  normal  in  a  Singapore  family  today.  Also,  just  because  many  Singaporeans  have  opportunity  to  afford  the  goods  and  services  in  Singapore,  many  households  are  smart  with  their  money.    The  typical  driving  force  for  buying  goods  and  services  is  marked  in  the  reflection  of  status.    The  higher  status  the  product  reflects  the  more  desirable  it  becomes.    Interestingly  enough,  compared  to  other  Asian  countries,  Singapore  has  a  wide  acceptance  and  standard  for  organic  products.    On  top  of  that,  Singapore  also  has  a  big  push  towards  social  responsibility  initiatives.    The  political  system  is  a  free-­‐enterprise  market  with  a  very  trustworthy  legal  system  as  well.    Economically,  the  country  for  the  last  six  years  has  been  known  as  ‘the  easiest  country  to  do  business  in’  by  the  World  Bank.    This  rating  does  not  come  easy.    The  country  has  simplified  all  its  forms  online  to  speed  up  the  process  of  starting  a  business  into  just  a  couple  days.  Taxes  are  quite  simple  as  well.  There  is  only  a  7  percent  GST  tax  on  goods  coming  into  the  country.    The  Port  of  Singapore  ranks  as  the  world’s  busiest  port  in  cargo  tonnage.    Singapore  infrastructure  and  communication  channels  are  state-­‐of-­‐the-­‐art  and  easily  accessible  nationwide.    Plus,  considering  the  total  population  of  roughly  6  million  people,  at  any  given  point,  approximately  82,000  babies  make  up  the  consumers  of  baby  food  in  Singapore  today.    This  is  definitely  a  niche  market.    The  exchange  rate  is  stable  while  inflation  rates  above  normal  for  a  developed  nation  like  Singapore.    Both  do  not  pose  a  threat  to  the  potential  marketing  plan,  however.    With  this  analysis,  it  is  understood  that  there  is  a  large  opportunity  for  entering  the  market.    Undoubtedly,  other  major  baby  food  competitors  have  already  penetrated  the  shelves  in  Singapore.    With  that,  there  are  two  major  competitors  in  the  organic  baby  food  industry:  Only  Organic  and  Babynat.    These  companies  have  competitive  pricing;  however,  the  prices  do  not  pose  a  threat  for  the  added  expenses  incurred  in  elongating  the  distribution  channel.    Major  concerns  for  the  product  will  be  newness  and  acceptance  rate.    Mothers  want  trustworthy  products  that  they  could  turn  to  for  all  their  needs.    Keeping  our  product  simple  and  understandable  will  lessen  this  issue.      Major  points  of  the  marketing  plan  include  measurable  objectives  and  sustainable  competitive  advantage  with  our  extensive  product  line  to  suite  all  the  needs  of  the  niche  market.    Our  

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product  will  enter  the  market  with  cultural  congruency  to  the  current  market.    Further,  or  product  will  have  unplanned  cultural  change.    With  that,  our  product  adaptations  will  be  minimal  and  we  will  use  a  foreign  agent  to  get  our  products  into  all  the  major  retailers  in  Singapore  to  handle  our  distribution  channel.    Our  advertising  and  sales  promotion  objectives  are  made  to  reach  the  target  audience  throughout  all  of  Singapore.  The  already  well-­‐established  Singaporean  market  and  informed  consumer  make  for  a  market  that  once  they  see  our  product,  will  trust  that  we  sell  a  product  by  mothers  who  want  to  show  they  value  their  baby’s  food  intake.    COMPANY  BACKGROUND  -­‐  HAPPY  FAMILY    Nurture  Inc.  doing  business  as  Happy  Family  was  established  on  May  14,  2006  (Mother’s  Day)  as  a  privately  held  company.  Shazi  Visram,  an  innovative  entrepreneur,  created  the  company.  The  idea  of  fast,  portable  organic  foods  was  established  when  Shazi  realized  that  a  friend  of  hers  had  been  struggling  to  search  for  baby  foods  that  were  healthy,  fast,  and  convenient.  Their  mission  is  “to  provide  consumers  with  the  absolute  best  food  for  their  little  one”  (Happy  Brands,  2013).    These  products  contain  no  artificial  ingredients,  preservatives,  or  Trans  fats,  GMO  and  BPA.  With  an  innovative  approach,  Happy  Family  became  the  first  organic  brand  that  successfully  launched  an  entire  line  that  covers  different  age  groups:  babies,  toddlers,  and  kids.  The  company  was  regarded  by  Inc.  Magazine  as  the  fastest  growing  organic  food  company,  and  as  the  “Rockstar  of  the  New  Economy”  by  Fast  Company.      

CULTURAL  ANALYSIS    COUNTRY  OVERVIEW:    Singapore  is  a  densely  populated  island  located  in  Southeast  Asia.    It  is  situated  between  Malaysia  and  Indonesia.  As  of  2012,  the  country  contains  a  total  population  of  6,096,539  divided  among  several  ethnic  groups:  77  percent  Chinese,  14  percent  Malay,  8  percent  Indian,  and  1  percent  other  (CountryWatch,  2013).  In  1965,  Singapore  became  independent  and  has  since  been  ruled  under  a  multi-­‐party  nation,  with  the  People’s  Action  Party  being  the  main  political  party.  The  country,  along  with  Hong  Kong,  South  Korea,  and  Taiwan,  is  regarded  as  the  economic  tigers  of  Asia.  Despite  of  its  many  setbacks  due  to  the  Asian  financial  crisis  in  1997  as  well  as  the  global  recession  in  2008,  Singapore  has  continued  to  expand  its  import  and  export  sectors  while  maintaining  its  reputation  as  one  of  the  world’s  strongest  economy  with  high  GDP  and  high  standards  of  living.      

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   Geographical  Setting:  Location    Singapore  is  located  South  of  Malaysia  and  North  of  Indonesia.  The  total  area  of  the  country  is  quite  small  in  comparison  to  other  Southeast  Asian  countries  like  Thailand,  Malaysia  and  Vietnam.    Singapore’s  strategic  geographic  location  allows  sea  traffic  to  be  one  of  the  heaviest  worldwide  (World  Shipping  Council).  In  addition,  the  population  is  geographically  located  in  ten  major  areas  around  Singapore.        Being  situated  in  Southeast  Asia,  Singapore  is  exposed  to  a  market  of  2.8  billion  and  connected  to  600  ports  and  more  than  120  countries  worldwide  (MPA,  2013).  In  addition  to  the  advantages  offered  by  the  convenience  of  its  location,  Singapore  has  achieved  great  economic  success  under  a  free-­‐market  economy.  With  such  high  international  exposure  and  an  industrious  population,  it  has  been  beneficial  and  efficient  for  the  baby  food  industry  to  reach  potential  operations  in  Singapore.      Social  Institutions:  In  terms  of  its  social  institutions,  the  majority  of  Singapore’s  families  are  based  on  a  small  nuclear  family  structure.    The  family  consists  of  a  father,  mother,  and  children.  Monogamy  is  allowed  and  of  the  norm.  Interethnic  marriages  and  marriages  between  different  ethnic  groups  is  not  common  among  Singaporeans.  Because  Singapore  is  a  closely  knitted  group,  they  value  family  relationships  and  perceive  harmony  as  highly  important.  New  families,  with  just  about  28,000  marriages  in  2012,  are  of  the  norm  in  Singapore’s  population.    This  information  implies  that  the  family  structure  is  valued.    Political  System:  Singapore  is  a  republic  with  a  parliamentary  system  of  government  based  on  the  Westminster  system.    For  over  40  years  Singapore  has  been  actively  pursuing  and  stressing  better  ways  to  serve  the  nation.    As  a  free  enterprise  system,  Singapore’s  political  structure  encourages  foreign  business  to  import  goods.  Singapore’s  government  highly  values  better  ways  to  serve  the  people  through  welfare  programs,  education,  and  health  (CountryWatch,  2013).    As  they  soar  in  all  three  arenas,  each  one  offers  large  benefits  to  the  marketer’s  product  category.    As  such,  educating  the  people  about  the  product,  giving  the  economy  healthy  benefits  to  the  product,  and  even  aiding  in  the  welfare  program  to  offer  discounts  or  partnerships  with  welfare  agencies  to  distribute  the  product  is  widely  accepted.      The  political  vulnerability  of  risk  and  stability  is  also  worth  considering.  Overall,  Singapore  is  a  stable  and  low  risk  sovereign  nation  (CountryWatch,  2013).  Based  on  the  political  stability  of  Singapore  with  a  consistent  history  of  development,  Singapore  as  a  nation  has  developed  itself  as  a  trustworthy  nation  to  invest  in.        

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Legal  System:  Overall,  Singapore  is  a  major  international  commercial  center  that  seeks  to  meet  the  needs  of  businesses  through  quick,  cheap  and,  at  times,  confidential  dispute  resolution  (Singapore  Law,  2013).  If  issues  arise,  the  country’s  common  law  system  takes  responsibility  in  settling  the  matter.  Contracts  are  also  used  prior  to  taking  on  new  business  in  order  to  clearly  indicate  which  laws  take  precedence  and  where  jurisdiction  lies.      In  addition,  Singapore  recently  implemented  the  Lemon  Law  in  2012  (Sg  News,  2012).  This  law  protects  consumers  against  poor  consumer  goods  and  gives  consumers  the  opportunity  to  receive  replacement  goods  and  refunds  if  requested.  In  turn,  Singapore  gains  a  more  appealing  retail  industry  (Singapore  Law,  2013).  In  terms  of  introducing  baby  food  to  the  market,  Singapore’s  laws  allow  for  efficient  business  interactions  and  quality  product  offerings.      Diet  and  nutrition:  Singapore  takes  pride  in  its  diverse  ethnic  composition.  Four  main  cultures  influence  the  cuisine:  Chinese,  Malays,  Indians,  and  Europeans  (mainly  British  influence).  Many  of  the  typical  original  dishes  found  back  in  these  four  countries  are  also  found  in  the  Singaporean  cuisine.  Despite  this  rich  cuisine  influence,  Singapore  does  not  produce  its  own  agricultural  needs;  instead,  most  of  those  needs  are  met  through  importing.  Thus,  it  could  be  inferred  by  this  that  the  importing  products  are  the  norm  for  the  Singaporean  consumer.  Taking  these  nutrition  patterns  into  account,  we  can  provide  accurate  baby  meals  offerings.    In  fact,  all  major  baby  food  companies  breakdown  possible  baby  food  meals  by  the  age  of  the  baby,  highly  recommending  only  certain  foods  at  the  baby  different  stages.  For  example,  from  0-­‐4  months,  the  baby  should  only  rely  on  the  mother’s  breast  milk  if  possible.  From  4-­‐6  months,  the  main  food  is  still  milk,  but  the  baby  can  now  consume  semi-­‐solid  foods  such  as  vegetables  and/or  mixed  fruits.  From  6-­‐8  months,  the  baby  is  now  starting  to  chew.  It  is  time  to  introduce  purees  and  rice.  From  8-­‐12  months,  the  baby  starts  to  have  teeth.  From  12-­‐15  months,  fish  and  steamed  potatoes  are  good  additions  to  the  diet.  From  15  month  onward,  the  baby  can  now  be  introduced  to  citric  fruits  such  as  oranges.  Grapes  are  ideal  at  this  age  as  they  are  a  good  source  of  energy  and  sugars.    Language:  According  to  Country  Watch,  there  are  four  official  languages  in  Singapore:  Chinese,  Malay,  Tamil,  and  English.  Although  the  national  language  of  Singapore  is  Malay,  the  two  most  common  languages  written  and  spoken  in  Singapore  are  English  and  Chinese  (Mandarin).  Most  people  in  Singapore  are  bilingual.          Another  form  of  communication  in  Singapore  is  “Singlish,”  which  is  derived  from  a  mixture  of  English  and  a  dialect  of  another  language.  This  is  good  to  know  concerning  advertising  and  promotional  campgains.    That  is,  variations  in  the  mixture  of  languages  exist  unique  in  the  Singapore  market.      Color  Associations:  An  important  subject  in  a  country’s  culture  is  colors.  In  Singapore,  the  meaning  of  colors  is  different  than  in  the  U.S.  For  example,  the  color  red  is  an  auspicious  color  in  Singapore,  and  thus  using  a  red  plastic  cap  for  the  packages  may  be  a  good  tactic  to  grab  consumer’s  attention.    Also,  blue  is  seen  as  conserving,  healing,  relaxation,  and  trustworthy.    This  color  could  grab  the  attention  of  a  mother  looking  for  something  healthy  for  her  baby,  

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especially  if  her  baby  is  sick.  Green  represents  growing,  generating,  sprouting,  and  refreshing.    Orange  reflects  adaptability,  spontaneity,  and  strengths.    With  pink  representing  love  and  red  the  traditional  bridal  color,  new  families  could  be  quite  attracted  to  this  color.    Red  also  represents  blooming,  long  life,  and  reaching  upward.    Purple  represents  spiritual  awareness,  mental  healing,  and  strength.  These  color  associations  help  the  marketer  design  and  promote  the  product  effectively  to  the  consumer.    

ECONOMIC  ANALYSIS    Economic  Overview:  Singapore’s  economy  for  the  last  six  years  has  been  seen  as  the  easiest  country  to  do  business  in  (World  Bank,  2014).    As  modern  as  Singapore  has  become  in  40  years,  it  is  one  of  the  top  financial  centers  in  the  world  -­‐  particularly  Asia  -­‐  ranking  in  the  top  10.    Singapore  has  steady  economic  growth  and  looks  to  be  one  of  the  most  attractive  places  to  live.    Even  with  a  high  inflation  rate,  growth  seems  to  be  the  economic  state  of  Singapore  year  after  year.    With  a  strong  government  that  is  well  developed  it  is  currently  one  of  the  most  successful  free-­‐market  economies  in  the  world.    Population:  With  roughly  6  million  people  living  in  Singapore,  in  2012,  about  42,000  babies  were  born.  With  that,  for  every  1,000  people  in  the  population  almost  8  births  are  estimated  in  2013  (CIA).    This  information  tells  that,  with  the  median  age  being  29  years  old  for  their  first  birth,  Singapore  has  an  interesting,  trustworthy  set  of  dynamics.    Fifty  percent  of  the  population  accounts  for  falling  in  this  age  range  of  the  median  birth  rate,  which  is  roughly  25–54  years  of  age  (CIA,  2013).    Thus,  new  families  are  typically  present  through  Singapore  as  50  percent  of  the  population  fall  in  the  median  age  for  first  time  births.  In  addition,  the  average  age  that  women  became  mother  in  Singapore  is  29.4.  This  age  group  accounts  for  a  large  number  of  the  population,  and  may  have  high  purchasing  power.    With  that,  the  average  household  size  in  the  same  year  was  3.5  persons  (SingStat).  The  country’s  population  growth  rate  is  1.96  percent.  Additionally,  the  country’s  birth  rate  is  7.91  births  per  1,000  populations  (CIA,  2013).  The  population  growth  rate  and  the  birthrate  data  shows  that  Singapore  is  a  growing  market  for  baby  foods  products.    Economic  Statistics  and  Activity    GDP/GNS  and  Household  Consumption:  The  country  in  2012  had  a  large  GDP  per  capita  at  $61,400.    Real  growth  rate  of  GDP  corresponded  at  1.3  percent  totaling  GDP  at  $331.9  billion.    For  the  baby  food  industry,  this  data  is  useful  as  almost  40  percent  of  GDP  is  household  consumption.    That  means  a  large  portion  of  the  

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money  used  in  Singapore  is  toward  household  expenditures,  which  in  turn,  could  imply  family  needs  and  wants.    GDP  per  capita  for  Singapore  is  one  of  the  highest  in  the  world  ranking  number  7  (CIA).  The  graph  shows  that  although  there  are  some  fluctuations  from  2004  to  2012,  it  is  evident  that  the  country  has  a  strong  GDP,  and  that  it  is  constantly  rising.  This  gives  the  market  category  an  idea  that  disposable  income  for  the  average  family  will  tend  to  be  higher  in  time,  which  increases  consumer’s  purchasing  power.    Singapore’s  gross  national  savings  was  roughly  46  percent  of  GDP  in  2012.    This  implies  from  all  disposable  income,  savings  accounts  for  roughly  half  of  GDP.    National  wealth  is  high  and  disposable  income  is  above  the  needs  of  the  average  person’s  needs.  Again,  Singapore’s  GDP  is  allotted  to  pay  for  more  than  family  needs.  Thus,  families  could  be  health  conscious  more  than  value  conscious.    Inflation:  Singapore  has  a  high  inflation  rate.    In  2010,  2011,  and  2012  inflation  rates  were  2.8,  5.2,  and  4.6  percent,  respectively  (SingStat).    Overall,  the  real  growth  rate  of  GDP  tells  that  even  though  inflation  is  high  for  the  nation,  the  growth  rate  is  larger.    The  inflation  rate  is  worth  considering  into  the  cost  of  the  product  to  determine  the  final  value  for  the  end  consumer.    Distribution  of  Wealth:  Singapore  is  known  as  a  middle-­‐class  society  (SingStat).    About  4  to  8  percent  of  Singapore’s  population  is  considered  poor.  The  differential  between  the  upper  and  lower  stratifications  are  drastic.    The  top  10  percent  of  the  nation  make  almost  25  times  as  much  as  the  bottom  10  percent  (Otoole,  2009).    With  that  said,  the  median  monthly  gross  wages  in  2012  have  been  steadily  increasing  by  7.5  percent  nominal  and  2.7  percent  in  real  terms.  The  lower  middle  population  tends  to  earn  on  average  $2,500  to  $3,000  a  month.    This  average  increased  since  last  year.    A  tight  labor  market  is  a  large  factor  in  this  increase  in  monthly  averages.    On  average,  full-­‐time  employment  income  monthly  was  $3,000  for  males  and  females,  which  is  $36,000  a  year  (SingStat).    So,  even  with  a  drastic  separation  from  the  upper  class  to  the  lower  class,  Singapore  has  a  well  to-­‐do  middle  class.    This  market  accounts  for  most  of  the  population  and  the  average  household  family  income.    Surface  Transportation:  Singapore  accommodates  all  modes  of  transportation.    Air  and  sea  are  some  of  the  busiest  and  biggest  channels  internationally  while  land  transportation  routes  are  not  limited.    Changi  Airport  in  Singapore,  Singapore  serves  more  than  51  million  passengers  in  2012.    That  is  over  10  times  the  population  of  Singapore.    The  capabilities  and  coverage  is  world  class  and  worldwide.    The  Port  of  Singapore  ranks  as  the  world’s  busiest  port  in  transshipment,  bunkering,  container,  and  cargo  tonnage  (SingStat).  This  topples  over  China,  Malaysia,  Japan,  and  major  US  ports.  Singapore  happens  to  have  of  the  busiest  ports  in  the  world  because  its  geographic  location  and  its  eased  trade  laws.    Overall,  this  information  aids  the  marketer  and  simplifies  first-­‐time  entry  obligations.    Foreign  Investment:  Foreign  Investment  opportunities  are  highly  probable  in  almost  any  industry  throughout  Singapore.    Actually,  the  World  Bank  knows  Singapore  for  being  the  easiest  to  do  business  in.  Singapore’s  laws  are  flexible  and  business-­‐friendly.  The  World  Bank  ranked  Singapore  as  number  5  in  ‘the  ease  of  tax  laws’  (World  Bank).    Major  industries  in  Singapore  

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include  the  food  and  beverage  sector.  As  shown  in  the  picture  to  the  left,  many  major  nations  invest  heavily  into  Singapore  with  the  United  States  in  2012  investing  about  $77.9  billion.      Health  Care  and  Infant  Mortality  Rate:  Singapore  has  one  of  the  lowest  infant  mortality  rates  in  the  world  (SingStat).    Compared  to  the  United  States,  United  Kingdom,  and  Germany,  Singapore’s  health  care  system  is  good  news  for  new  mothers.    As  it  has  one  of  the  lowest  infant  mortality  rates  in  the  

world,  Singapore’s  health  care  system  seems  to  be  doing  a  lot  of  things  right.  Singapore  does  pride  itself  in  a  strong  health  care  system  that  emphasizes  reducing  the  risk  of  over-­‐treatment  that  translates  into  paying  too  much  for  health  services.    Granted,  Singapore’s  obesity  rate  in  2008  was  only  7.1  percent  of  the  total  population  (CIA).        With  that,  mothers  who  are  able  to  be  more  health  conscious  than  price  conscious  consumers  will  take  Singapore’s  low  infant  mortality  rate  as  a  good  sign  of  a  trustworthy  health  care  system  and  what  it  promotes.  Singapore  further  created  Medifund  to  help  the  lower  class  population  afford  health  care  (SingStat).    Considering,  Singapore’s  health  care  system  is  remarkably  efficient  with  even  a  lower  ratio  of  doctors  to  population  than  the  United  States.    This  information  gives  the  baby  food  industry  an  avenue  for  health  conscious  consumer  branding.        Currency  Exchange  Rates:  The  currency  used  in  Singapore  is  the  Singapore  dollar.  According  to  XE  Currency  Encyclopedia,  the  most  popular  currency  exchange  rate  in  Singapore  is  the  Indian  Rupee  (INR)  to  Singapore  dollars  (SGD).  Similar  to  the  United  States,  the  dollar  symbol  is  denoted  by  $,  while  the  cent  is  denoted  as  S¢.  Due  to  the  country’s  long-­‐term  political  and  economic  stability,  the  value  of  the  currency  is  often  stable.  Particularly,  the  Singapore  Dollar  compared  to  the  US  Dollar  is  quite  steady.    In  the  last  five  years  the  major  fluctuations  from  2008  to  2012  has  been  in  a  gap  of  about  S$  0.18/1  USD.  This  trend  analysis  shows  that  the  fluctuation  is  minor  and  is  not  a  major  concern  for  the  international  market’s  price  valuation  and  later  translation  differences  back  into  the  functional  (home)  currency.  Thus,  the  Singapore  dollar  is  a  hard  currency  and  is  exchangeable  and  used  outside  of  the  country.  The  currency  is  also  accepted  among  international  institutions,  and  can  be  used  as  a  source  of  payment  for  goods  or  services  in  other  countries.      Trade  Restrictions:  Singapore  is  a  country  that  promotes  free  and  open  trade.  More  than  99  percent  of  all  imports  into  Singapore  enter  the  country  duty-­‐free.  For  social  and/or  environmental  reasons,  Singapore  levies  high  excise  taxes  on  beer,  wine and liquor,  tobacco  products,  motor  vehicles  and  petroleum  products.  It  also  levies  a  7  percent  tax  on  goods  and  

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services  (Export,  2012).  Barriers  that  are  currently  enacted  include  prohibitions  on  unfair  market  competition,  incorrect  product  labeling,  market  pyramid  schemes  and  unlicensed  commodity  trading.  It  also  has  several  trade  agreements  among  nations  around  the  world.  In  particular,  a  US-­‐Singapore  Free  Trade  Agreement  (SAFTA)  was  signed  in  2006  (CountryWatch,  2013).    Import  and  Export:  According  to  Economy  Watch,  Singapore  is  the  world’s  14th  largest  importer  and  the  15th  largest  exporter.  Some  of  its  main  exports  include  machinery  and  equipment  (including  electronics),  consumer  goods,  pharmaceuticals  and  other  chemicals,  mineral  fuels.  The  export  value  totals  $352  billion.    Its  main  imports  include  machinery  and  equipment,  mineral  fuels,  chemicals,  foodstuffs,  consumer  goods.  The  import  value  totals  $311  billion  (2010).  The  laws  which  govern  the  country’s  imports  and  exports  deal  mostly  in  ensuring  that  the  market  trades  fairly,  and  that  consumers  are  able  to  receive  reparations  for  lack  of  quality  and/or  good  services.  The  country’s  standing  internationally  and  one  of  its  main  imports,  being  foodstuffs,  makes  it  a  prime  market  for  introducing  a  product  such  as  baby  food.      Labor  Force:  Another  key  economic  indicator  is  the  employment  rate.    Roughly  98  percent  of  Singapore’s  working  economy  is  employed.    That  is,  just  over  3.4  million  people  in  Singapore  work.    In  2012,  the  unemployment  rate  in  Singapore  was  1.9  percent  and  just  2  percent  the  year  before  (CIA).    Singapore  again  does  a  great  job  at  employing  its  workforce  and  even  struggles  from  a  tight  labor  market.    Employment  rates  are  important  to  consider  for  the  potential  market’s  purchasing  power.    This  information  tells  that  the  market  is  employed.    Channels  of  distribution:  Singapore  has  an  estimated  count  of  20,600  retail  establishments  specializing  in  different  types  of  product  sales  (SDS,  2011).  Some  of  the  more  common  store  layouts  include  that  of  department  stores,  retail  chains  and  smaller  shops.  Grocery  retailers  will  continue  to  grow  as  consumers  look  for  better  goods  and  services  for  their  families  during  population  growth  which  will  increase  constant  value  sales.  In  the  industries  that  include  department  stores  and  supermarkets,  which  encompass  baby  food,  there  were  nominal  gains  in  sales.    Most  American  exporters  look  for  opportunities  to  partner  with  either  an  agent  or  a  distributor.  (Export,  2012).      It  would  be  practical  to  use  local  distributors  who  are  familiar  with  country’s  laws  and  regulations.  They  are  experts  in  the  markets.  Distributors  place  goods  into  the  small  Singapore  market  regionally  (see  Figure  A).  Because  the  nation  works  in  this  way,  middlemen  are  utilized  in  a  very  direct  and  efficient  way.  When  

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these  prices  are  presented  to  the  public,  we  know  that  most  consumers  use  their  credit  cards.  In  fact,  the  country  is  the  8th  highest  country  ranked  to  use  credit  as  a  form  of  payment  (Nielsen,  2012).      Media:  Overall,  communication  systems  in  Singapore  offer  multiple  types  like  satellite,  broadband  and  basic  telephone  services  (CIA).    There  is  easy  access  to  broadband  nationwide  and  Singapore  is  continuing  to  update  their  infrastructure.    With  that,  advertising  and  marketing  campaigns  through  media  channels  like  television,  radio,  print,  Internet,  and  other  media  types  have  full  coverage  of  the  population  and  more  importantly,  the  potential  target  market.    Basic  service  costs  for  television  commercials  are  per  program  loading  (per  showing)  on  the  most  watched  channels  like  channel  5  and  8.    For  ever  increment  of  15  seconds  the  cost  is  $500  up  to  30  seconds  per  showing.    For  promoting  by  radio  station  channels,  the  most  popular  radio  station  in  the  country  is  Class  95  FM.    This  radio  station  talks  about  adult  contemporary  lifestyle.    In  the  busiest  hours  of  listeners  the  cost  is  $650  per  week.  Therefore,  for  30  days  the  cost  is  $2,200.    For  advertisements  in  magazines,  which  are  quite  popular  in  Singapore,  a  popular  children’s  magazine  is  The  Finer  Just  4  Kids.    A  full-­‐page  premium  cost  is  $1,304  per  ad  annually.    The  magazine  is  published  monthly.    The  magazine  is  in  both  Chinese  and  English.    Also,  newspapers  are  a  good  way  to  promote  baby  food  through  popular  newspapers  like  The  Staits  Time  and  The  Business  Times,  which  are  both  in  English.    Also,  promoting  through  the  Internet  will  be  quite  effective  for  the  company  as  we  can  inform  consumers  about  the  product  differences  and  the  best  products  for  their  children  through  each  month  of  development.    We  can  use  current  IT  support  to  create  and  publish  our  online  platform.    

MARKET  AUDIT  AND  COMPETITIVE  MARKET  ANALYSIS    The  Product:  Baby  food  products  express,  like  most  material  items  in  Singapore,  a  status  and  lifestyle  for  the  consumers.  To  determine  the  rate  of  acceptance  for  baby  foods,  relative  advantages  are  created  when  a  product  supports  the  Singapore  lifestyle.    Maids  typically  purchase  the  food  for  the  baby.    It  is  important  that  the  product  is  clear  and  the  value  is  perceived.    The  products  sold  are  not  only  about  newness  but  also  fresher  and  healthier  choices.    With  that,  compatibility  to  the  market  is  extensive  as  it  offers  a  wide  range  of  variety.    The  Singapore  values  reflect  healthy  lifestyles.    The  complexity  of  the  product  seems  to  be  low  in  nature.    Thus,  the  compatibility  and  complexity  of  the  product  allow  for  a  wide  range  of  options  and  alternatives  for  the  same  product.  More  so,  organic  foods  are  seen  as  a  popular  development  in  Singapore.    Mothers  are  very  keen  about  serving  their  babies  the  best  they  could  afford  and  the  product  that  offers  the  most  value.    With  that  said,  competitive  price  points  and  high  nutritional  guarantee  offers  mothers  trustable  products  that  are  worth  trying  

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out.    Also,  the  product  benefits  are  easy  to  communicate  on  the  packaging  with  large,  easy  to  read  print  and  pictures  of  the  food  inside.    Overall,  the  rate  of  diffusion  of  the  product  will  be  postulated,  as  the  products  characteristics  of  innovation  are  positive.    Furthermore,  the  low  complexity  and  easy  comparability  of  the  product  make  for  an  even  faster  acceptance  rate.      Major  problems  and  resistance  to  the  problem  are  seen  in  different  arenas.    One  major  problem  will  be  for  parents  to  choose  to  have  their  domestic  workers  cook  food  at  home  or  purchase  it  from  the  store  for  the  infants.    This  issue  can  cause  the  product  to  never  been  seen  as  necessary.    In  the  eyes  of  the  consumer,  the  product  may  be  over-­‐the-­‐top.    However,  as  Singaporean’s  are  more  and  more  prone  to  eating  out  it  seems  that  this  may  be  a  relatively  small  issue.    Also,  showing  your  ‘lifestyle’  to  other  people  is  quite  typical  in  Singapore  and  could  come  from  food  choices  (McCombe,  2013).    Like  fine  dining  or  eating  at  a  hawker  center  (open  air  complexes  housing  a  large  variety  of  foods),  material  goods  define  Singapore  class  structures  (Contact  Singapore,  2013).    Baby  products  give  the  impression  of  high-­‐status  and  thus  parents  could  purposefully  have  these  products  purchased  for  their  baby.    More  and  more  people  are  choosing  prepared  meals  over  preparing  their  own  meals  in  Singapore  (SingStat).    Geographical  Descriptions:  The  regional  areas  that  would  be  a  good  fit  for  baby  food  would  include  that  of  Bedok,  Jurong  West,  Tampines,  Woodlands  and  Hougang.  Many  of  these  regional  areas  are  perfect  for  baby  food  product  because  they  include  high  transit  expressways,  churches,  schools,  affluent  populations,  new  housing  developments,  commercial  and  shopping  centers.    The  Market:  Singapore  continues  to  invest  in  baby  food.  According  to  the  Euromonitor  International’s  executive  summary  report,  parents  are  buying  premium  baby  foods  and  are  willing  to  pay  a  higher  price  for  the  product  as  long  as  it  has  high  quality  (Euro,  2012).  Singaporeans  also  have  a  stable  enough  income  to  mind  healthy  food  choices  while  shopping.  Modern  retailers  are  huge  participants  in  these  types  of  food  offerings.      Baby  food  products  would  be  categorized  under  packaged  food  in  Singapore.  These  types  of  items  would  most  likely  be  sold  in  modern  retailers.  In  fact,  modern  retailers  now  control  up  to  60  percent  of  the  retail  sales  of  most  retail  packaged  food  and  drinks  (Food  Export,  2011).  Examples  of  these  types  of  stores  include  over  3,000  supermarkets,  department  stores,  hypermarkets,  convenience  stores  and  provision  shops  in  the  country.  Advertising  and  Promotion:  Typically,  the  baby  food  industry  chooses  similar  channels  to  advertise  and  promote  the  product.    For  instance,  television,  print,  and  Internet  advertising  are  the  usual  outlets  that  major  companies  in  the  food  industry  use.    Some  major  companies  also  use  discounts  when  consumers  buy  in  bulk.  When  we  use  advertising  as  a  means  to  reach  Singaporeans,  we  must  take  into  account  their  desires  and  their  wants.  Advertising  and  promotions  should  reflect  messages  that  are  familiar  to  its  country.      Pricing  Strategy:  Retailers  are  slow  to  implement  markups.  Singaporeans  look  to  balance  their  purchases  between  quality  and  price.  Sense  this  industry  tends  to  be  very  competitive,  retailers  

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do  promote  discounts  and  promotions.  If  a  company  intends  on  developing  profits  among  an  industry  that  understands  Singapore’s  market,  it  must  take  caution  in  how  it  charges  the  market.  Value  dictates  whether  or  not  a  segment  will  consume  a  product.  In  the  case  of  some  all-­‐organic  and  eco-­‐friendly  stores,  shoppers  receive  discounts  for  bringing  their  own  non-­‐plastic  shopping  bags.  This  is  one  way  retailers  offer  innovative  price  cuts  to  this  sort  of  market.      Distribution  of  the  product:    Singapore’s  well-­‐built  infrastructure  allows  multi-­‐modal  options  for  distribution  by  way  of  air,  sea,  land,  and  rail  for  baby  food  products.    Current  operations  coordinate  with  warehousing  in  free  trade  zones,  foreign  agents,  and  homeland  middlemen  that  deliver  the  product  to  the  final  retail  shops  in  Singapore.        Organic  Foods:  Organic  food  is  gaining  more  and  more  popularity  in  the  market.  The  niche  categories  of  organic  foods  that  sell  are  expected  to  increase  by  30  percent  in  2014  (Proquest,  2010).  Organic  means  a  more  responsible  environmental  preservation  with  avoiding  harmful  chemicals.  As  people  are  more  aware  of  that,  simply  put,  organic  food  outperforms  chemically  treated  food.    Also,  Information  on  major  grocery  stores  in  Singapore  tell  that  Singapore  already  has  large  sections  or  organic  products  in  stores  like  Cold  Storage  and  Fair  Price  Finest.    Furthermore,  organic  only  stores  are  widely  available  throughout  Singapore  like  Organic  Sunny  Choice  and  Taste  Organic.  The  above  information  can  be  used  to  market  the  benefits  of  choosing  organic  over  regular  baby  food.  Using  both  Singapore’s  healthy  mentality  movement  and  organic  superiority  to  regular  food,  we  can  position  our  products  as  leaders  in  the  healthy  and  safe  product.    Competition:  Major,  large  company  competitors  are  Nestle,  Gerber,  and  Heinz.    These  companies  have  a  large  market  share  in  Singapore  and  have  extensive  product  ranges.    However,  the  organic  baby  food  market  is  more  of  a  niche  market  that  is  very  new.    Happy  Family  products  are  just  being  introduced  into  Singapore.    Organic  baby  foods  have  multiple  competitors  but  two  are  major:  Babynat  (shown  on  right)  and  Only  Organic  (refer  to  below).    One  example  would  be  Babynat,  a  French  product.    Babynat  features  food  for  infants  to  two  year  olds.    As  a  competitor,  Babynat  has  organic  baby  foods.    The  company’s  website  gives  detailed  information  and  advice  about  what  to  serve  your  baby  at  any  stage  of  the  first  two  years.    Their  website  also  helps  Babynat’s  promotion  and  advertising  campaigns  by  informing  the  consumer  about  the  products  that  are  best  for  their  baby  and  which  products  in  their  line  help  serve  those  needs.    Babynat  has  a  high  standard  for  their  organic  farming  to  be  of  a  trustable  methodology.    Babynat  has  a  sub  brand  Babybio  that  has  fruit  in  pouches  similar  to  Happy  Family.    The  package  is  similar  in  size  and  design  as  Happy  Family  products.    However,  Babynat  only  has  three  flavors  in  a  range  we  provide  of  over  20  flavors.    This  differential  gives  the  customers  more  options  and  serves  the  niche  market  at  a  higher  coverage  than  Babynat.  The  price  of  Babynat  products  range  from  S$3  to  S$5.    To  note,  this  pricing  is  roughly  S$1.20  higher  than  regular  baby  food  prices  that  are  not  organic.  

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 Also,  Only  Organic  serves  organic  baby  food.    Neighboring  Singapore  in  nearby  New  Zealand,  Only  Organic  prides  itself  in  the  same  high  quality  standard  of  organic  foods.    Only  Organic  is  sold  in  almost  all  major  retailers  in  Singapore  like  Cold  Storage,  Fair  Price  Finest,  and  more.    The  product  packaging  is  almost  identical  to  Happy  Family’s  products.  Only  Organic  has  a  competitive  advantage  as  its  distribution  channel  is  from  New  Zealand  to  Singapore.    Only  Organic  baby  foods  are  priced  at  S$3  to  S$5.    Many  Only  Organic  products  are  vegetable  based  rather  than  Happy  Food’s  fruit  base.    Only  Organic  also  promotes  their  product  similar  to  Babynat  by  informing  the  consumer  through  the  website  with  sections  titled:  “Why  Only  Organic”  and  “Feeding  by  Age”  that  allows  the  consumer  to  learn  what  is  best  for  their  child  at  any  range  of  months  from  0  to  9  months.    Market  Size:  The  market  size  in  Singapore  is  roughly  covering  82,000  babies  born  in  2011  and  2012  in  Singapore  (SingStat).    Babies  intake  more  calories  as  they  grow.    Estimations  on  child  consumption  then  subsequently  increase  through  the  development  of  the  child.    Below  is  a  table  of  estimated  amounts  of  eating  habits  as  a  child  grows.    

 Eating  Habits  

 Age  Range  

Types  of  products   Monthly  Consumption   Yearly  Consumption  

4-­‐6  Months  Cereal,  Puree  Fruit,  Puree  Vegetable  

70  Products   840  products    per  child  

7-­‐16  Months  

Cereal,  Puree  Fruit,  Puree  Vegetable,  Meat  Products  

90  Products   1080  products  per  child  

   

Yearly  Total  Average  in  Singapore:   76  Million  

 This  information  tells  us  that  an  average  baby  will  use  roughly  80  products  a  month.    This  information  is  dependent  on  many  factors;  however,  as  the  diffusion  of  innovation  finalizes,  average  use  of  the  product  will  be  roughly  2.6  products  a  day.  Thus,  estimated  industry  sales  for  the  planned  year  will  be  between,  with  product  size  about  3.5  to  5  oz.  (99  –  140g),  roughly  76  million  products.    This  information  takes  in  100  percent  market  share  and  full  coverage  for  all  potential  clients  in  Singapore  eliminating  all  competition.    Nevertheless,  this  information  gives  us  great  insight  into  the  eating  habits  of  an  average  baby  in  Singapore  and  the  potential  life  contribution  of  one  family  in  Singapore,  given  that  the  average  family  has  1.29  babies  (SingStat).    

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Government  Participation  in  the  Marketplace:  When  it  comes  to  organic  baby  food,  there  is  one  major  agency  that  regulates  the  food  industry  in  Singapore,  the  Agri-­‐Food  &  Veterinary  Authority.  This  agency  has  its  own  certification  process,  for  example,  Food  (export)  certificates  are  issued  for  food  consignments  that  comply  fully  with  the  requirements  of  the  Sale  of  Food  Act  Cap  283  and  the  Food  Regulations.      

PRELIMINARY  MARKETING  PLAN    Marketing  Objectives    The  Marketing  Plan:  Happy  Family’s  target  market  in  Singapore  will  be  domestic  help,  childcare  faculties,  and  stay-­‐at-­‐home  mothers.    Typically,  because  of  affordable  and  widely  available  domestic  help,  maids  cook,  do  household  chores,  and  babysit  the  children.    Or,  many  families  take  advantage  of  affordable  child  care  facilities  or  mothers  stay  home  to  take  care  of  their  new  born.    Our  goal  will  be  to  reach  middle-­‐class  and  upper  class  families  who  will  pay  a  premium  for  organic  baby  food.    The  market  will  be  for  families  who  have  babies  born  in  the  last  two  years  and  our  coverage  will  be  to  reach  most  of  the  population.    Marketing  Objectives:  One  of  our  marketing  objectives  will  be  to  have  product  visibility  throughout  Singapore.  Given  that  the  major  regions  in  Singapore  carry  the  mass  of  the  population,  we  can  measure  this  achievement  by  having  our  products  within  a  30  minute  driving  radius  of  90  percent  of  the  customers.    Another  objective  will  be  to  have  a  significant  portion  of  the  baby  food  industry  in  Singapore  in  five  years.    We  can  measure  this  success  incrementally  until  we  reach  a  35  percent  market  share  by  then.    Within  our  first  year,  we  want  to  gain  a  12  percent  market  share.    Lastly,  our  major  objective  is  to  insure  the  company  will  be  profiting  after  the  first  year.    Making  sure  that  expenses  and  distribution  costs  stay  lower  than  selling  price  will  be  a  major  objective  for  the  company  to  see  nationwide  success  in  the  new  Asian  market.    SWOT  Analysis      Strengths:  

• Organic    • No  GMO’s  (genetically  modified)  • Packaging  is  eco-­‐friendly;  (BPA  free)  • Portable,  light-­‐weight  and  easily-­‐

disposable  package  

Weaknesses:  • It  is  not  microwavable.  • To  heat  the  product,  consumers  must  

put  the  product  in  a  bowl  of  hot  water  • Pricing  could  pose  an  issue  for  some  

consumers  who  may  want  it  

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• Tasty  recipes  contributed  by  moms,  nutritionists  and  pediatricians  

• The  product  is  hypo-­‐allergenic    • Customized  baby  food  for  food  

sensitivities    • Caters  to  babies  of  various  age  groups  • Packaging  is  attention-­‐grabbing  • Contains  vitamins  and  supplements    

• Packaging  decreases  parent  to  child  bonding  during  feeding  times  

• In  food  preparation  some  processing  still  persists  

• The  pouches  are  not  recyclable.    

Opportunities:  • With  average  household  income  being  

$3,000/month,  most  households  could  afford  to  purchase  product  at  S$3.29  per  package.    

• Reach  increased  birth  rate  expectancy    • Available  in  variety  of  retail  stores  and  

major  outlets  • Available  in  variety  of  geographical  

regions  • Increase  brand  awareness  and  brand  

image  by  label  that  states  “made  by  Nurture  Inc.”  in  the  U.S.  

 

Threats:  • Competitors  such  as  Nestle  brands  

with  lower  prices;  in  regards  to  the  appearance  of  newer  or  stronger  competitors  

• Changes  in  economy,  polices  and  regulations  that  affect  consumer  buying  habits  

• Losing  competitive  edge  with  brands  that  sell  similar  products  

• No  Singapore  website  for  Happy  Family  brand  

• Natural  disasters  or  illness  could  affect  baby  food  purchases  

   Product  Adaptation  or  Modification      Product  Platform:  Some  of  the  more  favorable  ingredients  that  are  used  in  baby  food  include  bananas,  smoothies,  carrots,  broccoli,  sweet  pumpkin  and  porridge.  Taboos  that  may  pose  an  issue  for  our  product  may  include  dietary  restrictions  due  to  religion.  For  example,  Hindi  people  do  not  eat  beef  and  Muslims  do  not  eat  pork.  There  are  also  large  instances  in  which  individuals  are  vegetarians.  These  are  valuable  pieces  of  information  that  will  dictate  cultural  sensitivities.  Happy  Baby  contains  wide  product  variations,  which  include  baby  pouches  that  range  from  4,  6  and  7  (Happy  Baby  Hearty  Meals)  months.  Meals  catered  to  the  7-­‐month  age  range  include  three  product  categories:  starting  solids,  simple  combos  and  balanced  meals  (BioLiving,  2013).      Design  Features:  The  plastic  pouches  require  less  energy  and  fewer  materials  to  produce  which  is  environmentally  friendly.  In  addition,  it  also  lowers  the  country’s  air  pollution  and  waste  to  landfills.  The  current  design  features  enable  transporters  to  save  fuel  because  they  are  small  in  

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size  and  light  in  weight.  We  will  be  keeping  the  same  design  features;  disposable  plastic  pouches,  safety  twisted  cap,  lightweight,  flavors,  fun  illustrations  of  ingredients  listed,  use  of  bright  colors,  like  red  which  is  considered  auspicious,  and  attention-­‐grabbing  images  using  fruit.      Functional  Features:  Happy  Family  food  pouches  are  made  with  the  sole  purpose  of  being  a  grab  and  go  product  that  matches  Singapore’s  fast  paced  working  lifestyle,  which  is  similar  to  the  United  States  workforce.  Typical  cooking  times  in  Singapore  may  range  from  30  minutes  to  one  hour,  so  by  having  these  ready-­‐to-­‐go  meals  with  adequate  supplements,  parents  are  able  to  spend  more  quality  time  with  family.  The  packages  are  also  safe  for  young  kids  and  babies  because  they  are  not  sharp  and  user  friendly.      Packaging  Component:  The  style  features  is  consists  of  vertical/rectangular  shaped  white  pouches;  colorful  plastic  twisted  tops;  we  are  planning  to  add  in  30  pouches/box  instead  of  the  usual  single  pouches  and  packages  of  four  per  box  that  is  mostly  sold  in  retail  stores  across  the  United  States.  The  reason  for  this  is  because  it  allows  consumers  to  buy  in  bulk  and  thus  they  save  time  and  money,  which  in  turn  increases  our  company’s  profits.  The  exterior  of  the  box  should  include  the  traditional  Happy  Baby  trademarks.  It  will  also  include  the  product’s  nutritional  benefits  and  the  company’s  mission  to  provide  customers  with  nutritious  and  delicious  ingredients  for  their  babies.  The  instructions  are  short  and  simple  for  consumers  to  use  easily.  Singapore  is  environmentally  friendly  and  the  box  should  be  “made  from  100  percent  recycled  fibers  and  made  of  at  least  35  percent  post-­‐consumer  content,  which  is  already  used  in  the  U.S.”  We  would  add  in  refrigerator  magnets  that  would  include  the  product  logo,  product  ingredients,  and  company’s  website  and  nearby  store  locations  that  further  increase  the  brand’s  awareness.      Support  Services  Components:  Happy  Family’s  mission  is  to  “provide  you  with  the  absolute  best  foods  for  your  little  ones.  We  create  tasty  recipes  using  organic  nutritional  and  yummy  ingredients”.  Because  the  country’s  laws  are  strictly  enforced  to  support  the  consumer,  the  product  will  meet  quality  standards  that  reflect  Singapore’s  food  and  nutrition  expectations.  Due  to  the  Lemon  Law  implemented  in  2012,  if  the  product  lacks  in  this  area  consumers  are  allowed  to  receive  replacements  and/or  full  refunds  without  any  verifications  or  receipts.  We  will  establish  a  local  customer  service  representative  office  in  Singapore  and  will  list  the  phone  number  on  all  packages.  As  of  now,  all  Happy  Baby  products  only  contain  the  website  without  phone  numbers  for  consumers  to  provide  product  feedback.  We  will  also  include  a  survey  within  the  packaging  that  will  

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give  the  consumer  a  20  percent  off  discount  on  their  next  bulk  order,  and  an  additional  10  percent  discount  if  they  show  proof  of  recycling  the  box  and  the  re-­‐sealable  caps.  The  pouch  is  not  recyclable  and  thus,  cannot  be  recycled.  Also,  the  local  customer  service  representative  office  will  be  made  up  of  Singapore  mothers.    These  mothers  will  be  best  to  relate  and  get  product  feedback  from  the  consumers.        Promotion  Mix    Advertising  Mix:  The  advertising  campaign  will  promote  status,  quality,  and  choice  with  our  expansive  range  of  products.    We  will  use  mediums  like  magazines,  the  Internet  and  word-­‐of-­‐mouth.    We  will  focus  on  our  objective,  that  is,  on  reaching  our  target  market  within  Singapore.    Because  the  market  is  small,  we  need  to  expand  our  reach  into  these  different  mediums  to  be  effective.    Also,  word-­‐of-­‐mouth  will  be  a  primary  source  of  reaching  or  marketing  objectives.    By  utilizing  these  mediums,  and  promoting  status,  quality,  and  personal  preference,  we  believe  that  our  customers  will  see  our  clear  vision  of  organic  baby  food  by  moms  for  their  children.    To  note,  we  will  utilize  our  website  to  educate  and  inform  our  consumers  as  well.    Our  website  will  be  in  English  and  Chinese  to  reach  the  market.        Promotional  Mix:  The  promotional  mix  has  one  key  objecitve  to  get  our  target  market  purchasing  the  products.    Our  sales  promotion  will  include  varying  mediums  like  conducting  surveys  all  the  way  to  facebook  and  website  coupons.    Discussed  previously,  our  local  customer  service  representatives  will  conduct  surveys  to  get  consumer  feedback  and  offer  coupons  to  particpants.    Also,  with  facebook,  “1  out  of  every  100  new  fans  gets  a  FREE  trial!”  This  not  only  help  brand  awareness,  but  it  also  gets  great  consumer  involvement  which  in  turn  may  evolve  into  word-­‐of-­‐mouth  advertisement.  With  all  that  said,  our  main  promotion  reach  will  be  a  partial  push  and  a  partial  pull  strategy.    Our  push  strategy  will  be  to  get  potential  new  consumers  purchasing  our  product  with  entry  mode  coupons.    For  instance,  “try  the  first  one  on  us”  will  be  a  strategy  from  our  website  to  get  consumers  to  try  the  product.    This  will  be  used  and  measured  by  how  many  promotional  products  are  being  distributed  to  consumers.    Next,  our  pull  strategy  will  be  as  we  build  brand  awareness  through  our  advertising  campaign  and  social  media  and  internet  presence,  we  will  offer  discounds  on  bulk  purchases.    For  example,  promotions  like  puchasing  a  weeks  supply  gives  a  5  percent  discount.    Packing  –  Label  Regulations:  All  labels  must  state  the  country  of  where  the  product  is  originally  produced.  Imported  products  that  require  labels  are  food,  drugs,  liquors,  paints  and  solvents”  (Export  Government,  2013).  Specifically,  all  labels  must  be  stated  and  disclosed  in  English  and  must  follow  all  guideless  as  stated  by  the  Agri-­‐Food  and  Veterinary  Authority  (AVA)  of  Singapore.  All  Happy  Baby  products  imported  to  Singapore  must  have  labels  that  contain  the  food  name,  list  of  ingredients  in  the  product,  specific  warnings,  advisory  statements,  allergens  

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declarations,  net  weight  or  volume  of  the  product,  date  mark,  expiration  date,  nutritional  information,  instructions  on  how  to  use  or  store  the  product,  where  the  product  is  made,  and  the  name  and  address  of  the  business  and  manufacturer  and  importer.  Since  the  product  is  made  in  the  United  States,  it  does  not  need  to  be  repackaged  in  Singapore.  Repacking  requires  companies  to  label  the  food  content  in  English  and  printed  with  1  inch  capital  letters  stating  the  name  and  address  of  the  manufacturer  or  seller,  where  the  product  is  made,  minimum  quantity  stated  in  metric  net  weight,  and  whether  the  foods  has  been  compounded  or  blended.      If  the  label  is  printed  “enriched”,  “fortified”,  and  “vitamin-­‐based”,  it  is  required  that  the  company  show  how  much  vitamins  or  minerals  were  added  per  metric  unit  (Export  Government,  2013).  In  addition,  if  there  are  illustrations  on  the  packaging,  it  must  precisely  describe  the  food.  Happy  Family  contains  illustrations  of  fruits  that  are  contained  in  the  specific  package.  For  example,  in  the  amaranth  ratatouille  package,  the  ingredients  listed  on  the  package  is  labeled  “savory  blend  of  organic  veggies  and  grains”  Thus,  the  illustration  shows  a  variety  of  vegetables  (carrot  and  tomato  for  example)  and  grains  that  support  the  package  label.      Documentation  required:  Under  the  bill  of  lading,  the  goods  that  are  transported  to  the  free  trade  zone  does  not  require  any  customs  permit  if  (1)  the  goods  were  transported  by  air  and  will  also  be  shipped  by  air  within  the  same  free  trade  zone  by  internal  delivery,  and  (2)  the  goods  were  transported  by  sea  in  containers  that  are  not  unpacked  or  re-­‐worked.  They  will  also  be  shipped  within  the  same  free  trade  zone  by  internal  delivery  (Singapore  customs).      Any  shipment  of  products  coming  into  the  country  must  have  an  entry  authorization  permit.    The  permit  is  granted  through  the  AgriFood  and  Veterinary  Authorization  (the  chief  regulatory  body  agency  when  it  comes  to  food)  official  website,  TradeNet,  within  48  hours.  Fruits  and  vegetables  coming  into  the  country  must  have  a  sanitary  certificate.  This  certificate  will  demonstrate  the  high  quality  and  cleanliness  the  eating  goods  coming  in.      The  AVA  requires  any  company  marketing  their  products  under  organic  to  be  Organically  certified  with  an  equivalent  or  higher  standards  certificate  such  as  the  SGS  certificate  (a  globally  recognized  organic  certification).  Currently,  our  product  is  approved  under  the  USDA  certification.    This  certification  meets  the  standards  of  Singaporean  regulations.    

Channels  of  distribution  (micro  analysis):  Nurture,  Inc.  will  manufacture  our  baby  food  line  in  the  United  States.  It  will  be  branded  under  the  business  name  Happy  Family  because  of  its  mass  appeal.  This  brand  name  will  attract  Singapore  consumers  who  are  custom  to  buying  brands  that  share  some  familiarity  to  them.  Once  the  food  is  actually  manufactured  and  packaged  for  consumers,  it  will  be  exported  overseas  by  Nurture.  The  shipment  of  baby  food  will  be  imported  directly  to  a  foreign  middleman  agent.  These  agents  share  a  great  responsibility  to  our  distribution  channel  because  they  act  as  the  liaison  between  the  manufacturer  and  the  Singaporean  market.  They  are  also  aware  of  the  laws  that  govern  the  retail  market.  Contracts  will  be  utilized  for  product  insurance  and  so  that  interactions  that  require  legal  intervention  are  discussed  in  detail  if  issues  arise.  Once  these  middlemen  make  negotiations,  including  import  

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costs  and/or  financing,  the  shipment  will  be  distributed  to  regional  major  outlets,  also  known  as  modern  retailers,  in  Singapore.  These  retailers  will  include  supermarkets,  hypermarkets,  organic  markets,  retail  chains,  etc.  The  retailers  will  be  responsible  for  stocking  the  Happy  Family  baby  food  line  and  pricing.      Warehousing:  Singapore  has  a  total  of  eight  free  trade  zones:  Brani  Terminal,  Keppel  Distripark,  Pasir  Panjang  Terminal,  Sembawang  Wharves,  Tanjong  Pagar  Terminal,  Keppel  Terminal,  Jurong  Port,  Airport  Logistics  Park  of  Singapore  and  the  Changi  Airport  Cargo  Terminal  Complex  (Singapore  Customs,  2013).  Products  that  are  held  in  the  free  trade  zones  are  not  required  to  have  any  customs  documentation.  The  customs  control  is  relatively  simple,  except  that  all  goods  not  transported  by  sea  must  be  reported  to  the  free  trade  zone  to  gain  approval.  Goods  classified  as  intoxicating  liquors,  cigarettes,  cigars,  cheroots,  beets,  snuff,  manufactured  and  unmanufactured  tobacco  must  strictly  be  approved  by  customs  when  deposited  in  the  free  trade  zone  (Singapore  Customs,  2013).    Warehousing  options  are  available  in  several  locations:  Tanjon  Pagar,  Alexandra  and  Pasir  Panjang  Distriparks  (Singapore  Customs,  2013).  These  locations  have  the  advantages  of  being  located  near  the  airport,  industrial  hub,  and  are  at  the  center  of  many  multinational  companies.  There  are  also  many  other  licensed  warehouses  available  throughout  Singapore  that  contains  zero  goods  and  services  tax  (GST),  which  is  a  great  advantage  for  Happy  Family.      Price  determination:  A  final  retail  competitive  price  of  approximately  S$3.50  to  S$4.20  will  be  the  market  price.  Comparatively,  to  prices  in  the  United  States  this  is  almost  double.    However,  this  price  is  still  competitive  with  Only  Organic,  Babynat  and  other  major  industry  players.    Also,  bulk  packages  of  30  will  be  sold  for  approximately  S$3.14  to  S$3.86  to  attract  the  child  care  facilities  and  loyal  consumers.    Ad  valorem  or  specific  rates  are  applied  when  goods  are  imported  and  sold  for  export  to  Singapore.  Companies  are  required  to  state  the  transaction  value  of  the  goods.  If  the  stated  amount  is  undervalued,  “the  Customs  and  Exercise  Department  will  increase  the  values  declared”  (Export  Government,  2013).  If  an  ad  valorem  rate  is  applied,  happy  baby  food  pouches  will  be  charged  a  certain  percentage  for  the  value  of  the  goods  (Example:  10  percent  of  the  value  of  the  food  pouches).  If  a  specific  duty  rate  is  applied,  there  will  be  a  flat  charge  for  every  food  pouch  imported  (Example:  15  cents  per  one  food  pouches).  Ad  valorem  is  stated  to  be  the  most  common  rate.    Methods  of  payment:  Method  of  payment  for  distribution  agents  will  be  Letter  of  Credit  as  Singapore  is  one  of  the  best,  trustworthy  financial  centers  internationally.    Letters  of  Credit  carry  as  an  easy  way  to  protect  the  payment  while  minimizing  the  risk  of  agent  disloyalty  and  lack  of  control.    Also,  for  online  sales,  consumers  will  pay  in  advance  of  product  shipment.  

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