Marketing Management at BreadTalk - Essay Example

? Marketing Management Table of Contents Market Needs 3 Market Trends 4 Market Growth 5 Competition 6 Product offerings 6 Distribution 7 Key to success 7 Critical issues 7 Reference 9 Market Needs The food industry all over the world is highly diversified in nature. It has to be said that the scope and the growth prospects associated with the food industry is highly dependent on the nature of food habits existing among the masses of the local population. Talking on this note, it can be said that the food industry in the market of Singapore is highly popular in various global markets. A wide range of food programs and food festivals are organized in Singapore which witnesses a strong level of participation from a wide array of expert level international chefs from various corners of the world. This automatically makes the market of Singapore a birth place of various kinds of innovative food based delicacies as well as bakery products. Discussing on the lines of the bakery products, it can be said that the market of Singapore can be divided on the lines of bread based offerings, cakes, biscuits as well as breakfast cereals (Euromonitor.com, 2011). However, it also has to be said that the Singapore has a large number of Muslim population, which forms the Halal market in the region. It is highly interesting to state that the South East Asia, which includes the region of Singapore, is homes to around 250 million Halal oriented consumers. Talking about the valuation of the south east Asia market formed by the 250 million Halal consumers, it can be highlighted that the market stands at an astounding 93,000 million USD (Daganhalal.com, n.d.). It is also very important to highlight the fact that the region of Singapore, which falls under the category of South East Asia has a tremendous and growing potential for becoming one of the leading Halal based food markets, mainly because of the fact of the region being a major transhipping centre. Also, it has to be said that the Muslim presence in the Singapore region comprises to over 60% of the entire population of Muslim located all over the world (Min, Global Halal Food Industry, p. 7). Source: Global Halal Food Industry. Hence, it can be said that there exists a unique opportunity in the bakery market to cater to the inward as well as outward growth that is emerging from the Halal market of Singapore. Market Trends Discussing the trends that are currently evolving in the market of Singapore, it can be said that the trends are similar to that of the bakery market of south East Asia. It is to be mentioned that the bakery industry existing in these markets is highly dependent on the series of factors. The factors are a mixture of macroeconomic as well as lifestyle trends like strong growth of the regional economy, growing living standards of the masses, influence of western oriented lifestyle as well as busy lives of the masses (PRWeb.com, 2013). The factor of shortage of time in the hands of the masses in regards to preparation of traditional meals is playing a tremendous catalytic role in spreading the growth of the bakery industry in the market of Singapore. The bread and bakery industry of the region has a highly diversified consumer portfolio. Talking in regards to the future market trends for this particular sector in the Singapore region, it can be said that the manufacturers and retailers will try to attain a growth in the business by leveraging on the highly diversified consumers base. In order to develop a competitive edge in the business as well as for better positioning of their products, the manufacturers and retailers of the bread industry will try to introduce innovative products which will be segmented and targeted specifically to consumers on the basis of their age group. Market Growth While discussing the factors of market growth, it has to be brought in to focus that the bakery market of Singapore grew at a rate of 7.9 % on a compound annual basis between the 5 year period of 2004 to 2009 (Datamonitor.com, 2012). During this period the bread and rolls division in the bakery sector in Singapore, accounted for over 29% market share. In regards to the recent times, it has been projected that the bakery sector of the Asia Pacific region, which includes the Singapore bakery market is valuated at over 68.5 billion USD along with a compounded annual growth rate of over 6% between the five year period of 2008 to 2013 (Byrne, 2010). It is of considerable importance to state that the bakery industry of Singapore is also undergoing significant changes as consumers are getting increasingly health conscious. As a result, in the recent times, a new variant like the breakfast cereals are increasingly making a place in the diet of the consumers based in Singapore. Forecasts highlight while attaining a growth rate of over 6 percent in the five years period till the year 2013, the breakfast cereals market is valued at around 3.3 billion USD for the entire Asia Pacific region (Weston, 2010). Competition Talking about the competition existing in the Singapore bakery market, it has to be said that the market is highly open to both domestic as well as international level competition (TMCNews, 2006). It is of high importance to say that Singapore being both a transit zone as well as a global financial hub has a highly diversified incoming and outgoing population with varying food tastes. This makes the market highly attractive in nature. Talking about the foreign competition that has an influencing role in the Singapore bakery sector, the global and internationally popular fast food brands like McDonalds, KFC, Krispy Kreme, Dunkin Donuts as well as a series of other brands has to be taken into consideration. Talking about the competition existing in the local arena, the local players who are catering to the bakery needs of Singapore has to be taken into account. Hence, retailers like Baker’s Heaven, Heng’s Cake Shop, Swee Heng Bakery Pte Ltd needs to be considered. Product offerings The product offerings of BreakTalk are categorized on the basis of bread based and cake based offerings. It is interesting to mention that the offerings in both the sections are highly innovative in nature. It can be said that the innovation has been done in a way so that it can cater to the diversified tastes of the consumers. Distribution While discussing the distribution channel followed by BreadTalk, it has to be said that the group has a very broad presence in various regions (BreadTalk Group, 10 years of Innovation, p. 8). For the purpose of maintaining smooth distribution and availability of products, it can be said that the bakery chain routines delivers its products to various outlets. However, it also has to be said that the company follows a unique concept for the purpose of better branding and marketing. For providing the customers with a view of the manufacturing process for its products, it can be said that the bakery chain promotes on site kitchens in some of its outlets (BreadTalk.com,2013). Needless to say this also takes care about the product distribution requirements for BreadTalk large chain. Key to success Talking about the key factors that are highly responsible for the success of this popular bakery chain, two factors can be highlighted. The first important factor comprises of the issue that Singapore being a transit location for connecting various place around the globe, it presents a lot of diversity in the population who have varied food tastes. This provides BreadTalk with the provision to capitalize on this opportunity. Another key factor is the highly innovative product range offered by the bakery chain. Critical issues Talking about the critical issues, that need to be tackled by BreadTalk, it can be said that the company needs to focus on addressing its points of weakness. It cannot be denied that Singapore has a large number of Muslim populations. Hence it is very important for the business to cater to the Halal market in Singapore to attain growth. Also, it has to be said that the bakery chain needs to have a leaner organizer structure for the purpose of attaining better productivity as well as profitability (BreadTalk Group, 10 years of Innovation, p. 17). Reference Euromonitor.com, 2011. Bakery in Singapore. [Online] Available at:. http://www.euromonitor.com/bakery-in-singapore/report [Accessed 7 Mar 2013] Daganhalal.com, n.d. Global Halal Market. [Online] Available at: http://www.daganghalal.com/HalalInfo/WorldOfHalal.aspx [Accessed 7 Mar 2013] BreadTalk.com, 2013. Busines Review. [Online] Available at: http://www.breadtalk.com/business-review.html [Accessed 7 Mar 2013] TMCNews, 2006. Foreign competitors introduce new concepts to bakery industry [Online] Available at: http://www.tmcnet.com/usubmit/2006/04/04/1535852.htm [Accessed 7 Mar 2013] Weston, S., 2010. Bakery & cereals market expected to grow at 6.4% by 2013. [Online] Available at: http://www.foodbev.com/news/bakery-cereals-market-expected-to-grow-at-64-by-2013#.UTgjLNb-F2F [Accessed 7 Mar 2013] Byrne, J., 2010. Healthy cereals fuelling Asia Pacific baked goods sector growth. [Online] Available at: http://www.bakeryandsnacks.com/Markets/Healthy-cereals-fuelling-Asia-Pacific-baked-goods-sector-growth [Accessed 7 Mar 2013] Datamonitor.com, 2012. Bakery and Cereal Market in Singapore to 2014. [Online] Available at: http://www.datamonitor.com/store/Product/bakery_and_cereals_market_in_singapore_to_2014?productid=DBCM8278 [Accessed 7 Mar 2013] PRWeb.com, 2013. Global Bakery Products Market to Reach US$447 Billion by 2017, According to New Report by Global Industry Analysts, Inc. [Online]. Available at: http://www.prweb.com/releases/bakery_products/bread_rolls_cakes_biscuit/prweb9260417.htm [Accessed 7 Mar 2013] BreadTalk Group, 2010. 10 years of Innovation. Singapore Min., L.S., 2011. Global Halal Food Industry. Singapore: SPRING Singapore. Read More