Strategic Marketing Plan for Yeo Hiap Seng Ltd - Case Study Example

The strategic business unit is generally concerned with the development of market opportunities, products and services, competitive strategy, resource allocation, control and structure within the SBU. The SBU has to fit strategically into the corporate structure in that it leads to better management of the entire organization because of the aspect of decentralization. This is so because a SBU is autonomous as it is in charge of its own decision making processes, budgeting and pricing. Yeo Hiap Seng Limited Company has adapted this approach with its soft drinks segment.

This paper demonstrated how the company has succeeded in fitting the soft drinks SBU into the corporate structure. The Group's principal activities are the manufacturing, sale, distribution and export of beverages, sauces and canned food, instant noodles, condensed milk and non-alcoholic beverages (Company Profile Snapshot, 2008). Soft drinks industry in Singapore like in other countries and industries has witnessed changes over the past few years. Several factors have had an impact on the state and proceedings of the soft drinks industry.

It is important to note that the effects have been both positive and negative. The former is of more concern since it gives an insight into the factors that have played to get the industry to its current state. ItIt was observed that the healthy drinks play an important role. Growing health awareness encouraged by public health bodies was one of the key trends influencing the soft drinks industry in Singapore and which drove ever stronger demand for healthier beverages (Euromonitor International, 2008).

Due to this, growth of the soft drinks industry continued, this was as a result of the fact that these drinks are found to be healthier than the other much sugary drinks. The health issues that surround these drinks and the education factors make the soft drinks more marketable than other drinks.The ranges in carbonates that give variations serve to catapult soft drinks even more. With several options in carbon ranges, the consumers are able to make a selection in a set of carbonate variations; this serves to increase the market.

Naturally healthier drinks have a concept of novelty. It is important that the consumers appreciate some drinks due to content. This is a factor that serves to push the consumptions levels of some specific soft drinks up and generally get the market share of the soft drinks increased.The health of the consumers as a requirement will continue to push the market of soft drinks high. Consumers want to be well and given the health training that is always going on, they will continue to require the drinks that will maintain or guarantee good health for them.

The Government of Singapore has been instrumental in determining the state of the soft drinks industry. The Government's scheme to promote reduced or sugar free soft drinks have been a driving factor in the growth of the soft drinks industry in Singapore.There has been realignment of distribution for different soft drink brands due to competition among the market players. Different companies have had to change the product lines due to competition thereby altering the market equation.Education of the Singaporeans on the health issues for instance sugar consumption