Social Environment

Social Environment  Singapore is a multi-ethnic society where Chinese, Malay and Indian traditions coexist beneath the veneer of a western cosmopolitan metropolis.  Many Singaporeans though not all, are bilingual. Most speak English and another language, most commonly Mandarin Chinese, Malay or Tamil. Wide use of English is appreciated hence communication does not pose as much of a problem.  Statistics on family structure in Singapore : (General Household Survey 2010 Sample size of 1.024 million people) 85.4% of those surveyed live in at least one family nucleus, 14.6% of those surveyed do not live in a family based household, i.e. the members are not immediately related to one another. 13.2% of those surveyed live in families without a presence of a married couple, e.g. one parent (divorcee) living with child(ren).

The most common household size is 4 people, forming 24.1%. 71.3% of those surveyed have household size of 3 or more people. 13% of couple-based households do not have children.

[*A family nucleus is defined as either: (a) a married couple, with or without unmarried children and/or a parent/grandparent or (b) a family consisting of immediate related members, without the presence of a married couple, e.g. one parent living with child(ren)] Source: http://www.singstat.gov.sg/pubn/popn/ghsr2/t62-66.pdf and http://www.singstat.gov.sg/pubn/popn/cop2000admin.pdf

 Modern, westernized environment.  Being time-orientated multi-taskers, Singaporeans generally do not have the luxury of enjoying fellowship in socialising during meals. This could be why they place more emphasis on the last meal of the day. Dinner becomes a leisurely activity where people get together in various social groups.  Known as one of the global food capitals, Singapore is legendary for the sheer diversity, richness, and creativity of its culinary scene. One of the main drivers behind the spurt in Singapore tourism is its popularity in terms of food. Hence exotic flavours will be easily accepted by the consumers.  Singapore scores high on safety and low crime rates.  High quality transport and infrastructure making it possible for consumers to reach our outlets as well as ease in distribution.  Shopping malls are very popular. Hence outlets placed there will expose our product to consumers on a wide base.  Food courts : Found in the basement or top floor of nearly every shopping mall, food courts are the gentrified, air-conditioned version of hawker centres. The food offered is much the same but prices are on average $1-2 higher. These food courts are popular lunch options for the office workers who avoid the heat by staying in air-conditioned places.  Round tables are in essence the key tool in most of our social gatherings. They are more than just a piece of furniture with utilitarian value, but form a big part of Singaporean food culture. It allows people to sit in a way such that nobody is left out and everyone can participate in the conversation.

Cultural Environment

 Multicultural society with three main ethnic groups: Indian, Malay and Chinese.  Cultural obstacles: Most Singaporeans are said to be over compliant, too left brained, afraid of failing and over pampered. This is a consideration in formulating product adaptation & communication strategy.  The national culture is ‘Kiasu’ which means “afraid to lose” and refers to the wish to come first in lines, competitions, negotiations, and so forth.  Singapore is known for its materialistic culture. People in this nation push themselves in pursuit of the 5C’s – cash, car, condo, credit card and country club.

 Singaporeans do not eat simply for the sake of filling their stomachs; rather, it is a reflection of the Singaporean lifestyle. From a variety of hawker centres to fine dining, there is never a lack of places to go to for dinner in Singapore.  Singaporeans are very fond of their food and this comes across in the Singapore Food Festival: An annual event held in July. Food rules the island throughout the festival - from culinary workshops to themed food events to cooking competitions to lectures by notable chefs. Visitors can enjoy flavours from all over the world in Singapore. Restaurants and stores offer great deals on food during this time of the year.  Food is also often eaten outside the home in food centres where food is reasonably priced, tasty, and freshly made. Singapore is food-mad all year round - and this comes to a head on the Singapore.  Investigating the eating patterns in children in Singapore in terms of frequency, sources and types of food, with specific emphasis on eating outside the home. All 198 transcripts were usable. Overall, 19 per cent of those interviewed ate out five to seven times a week. The two most common reasons given for this were “convenience” (65, 33 per cent), and “nobody prepares home-cooked meals” (62, 31 per cent). “Convenience” was most common among pre-school (29, 48 per cent) and teenaged (27, 42 per cent) children, whereas “nobody cooks at home” (31, 43 per cent) was most common in school-age children.

 Malays do not eat pork, Indians do not eat beef, and many Buddhist Chinese are part- time vegetarians. Many people do not drink alcohol.  Holy places are arenas for religious activities. There are different ‘street festivals’ according to the ritual calendars of the different ethnic groups. Every ethnic group celebrates their respective festivals.  A wide variety of tropical fruits are available all year round, though most of them are imported from neighbouring countries. By far the most well known is the durian, known as the "King of Fruits“  The existence of multiple cultures, ethnicities and religions calls for sensitive and thoughtful communication that does not hurt the sentiments of people.  Singaporeans are peace lovers and very polite. Elders in the family are treated with respect and a joyful environment is maintained throughout.  Singaporean desserts have a varied history and can be found in every hawker centre and food court in the region. A stall will usually have a large variety of desserts for sale.

Product Adaptation : VARIATION/ADAPTATION

In keeping with business, socio-cultural environments, consumer attitudes, tastes and preferences of consumers in Singapore, certain variations in our ice cream flavours and packaging are required.

 FLAVOURS Considering Singapore's exotic and multi-cultural cuisine, we have decided to launch with 20 flavours, out of which 15 are our original popular flavours and 5 are new o Tender Coconut o Malai o Watermelon o Mango o Strawberry o Chocolate chip o Kaju Kismis o Coffee Walnut o Roasted Almond o Choco Almond o Peach Apricot o Sitaphal (Custard Apple) o Black Grapes o Chickoo

NEW ADDITIONS

o Durian - King of Fruits in Singapore (Seasonal Special - April to August) o Lychee (existing flavour but very popular in Singapore) o Passion Fruit o Pineapple o Jackfruit

 PRODUCT VARIANTS will be of 3 types

o Impulse Category . Cup . Freshly made waffle cone o Sundaes Elaborate custom made desserts prepared at outlet

o Take-home packs: SKU’s of 0.5 litres or more for take away or home delivery.

 PRODUCT INNOVATIONS Since Singapore has a history of very popular street desserts, we decided to innovate some of the most famous desserts into Naturals Ice cream Sundaes. The flavours present in the existing desserts will be replaced by ice cream flavours.

For sundaes: o Almond Jelly squares with icecream

o Beancurd barley ice cream with gingko nuts and snow fungus o Bubur Cha Cha

o Honeydew sago (fresh honeydew melon cubes which are served in a chilled bowl of coconut milk with Sago pearls), served with Tender Coconut ice cream.

o Ice kacang (a mound of grated ice on a base consisting of jelly, red beans, corn and attap seeds and topped with various kinds of coloured sugar syrups such as palm sugar, rose syrup) with Rose, Palm Sugar and Tender Coconut ice creams.

Media Planning and Buying Our Launch campaign will use all forms of media  Television o TVCs  Print o Print Ads o Advertorials  Internet o Website o Online Ads o Social Networking Sites (Facebook, Twitter, Google +) o Viral Videos  Below the Line o Direct Mailers o SMSes o PodCasts o Facebook Apps o Twitter fan following Consumer Profile Mass brand with a broad appeal; primarily adult men and women aged 22 -55, who are moderately health conscious. The core target group is aged, 22-40 both male and female, working professionals and/or newlyweds or young parents who have the money, time and willingness to spend on premium quality fresh fruit ice cream. They induce family members to trial.

Visibility

Natural Ice cream will be working on High Visibility strategy. Opening multiple stores simultaneously to get in the eyes of consumers and increasing awareness about the new brand is the launch strategy.

The decision concerning with number of stores to be opened depends upon

1) Initial investment

2) Number of stores opened by the competitors

3) Availability of resources.

Therefore, Natural ice cream will be available at/through:

• Franchise outlets at strategic locations with high human traffic, eg.- singular outlets in downtown areas, and in premium and high street shopping malls. • Home delivery from the nearest franchise outlet

Target Group

Target group for Natural Ice Cream

 Mass brand with a broad appeal;

 Primarily adult men and women aged 22 -55, who are moderately health conscious.

 The core target group is aged, 22-40 both male and female, working professionals and/or newlyweds or young parents who have the money, time and willingness to spend on premium quality fresh fruit ice cream.

Reasons

 Young professionals have money to spend since they don’t really have to support anyone.

 Young parents are health conscious so they won’t prefer high calorie ice cream.

 This Target group will also appreciate the freshness and high quality of ingredients used to make Natural Ice Cream

 Pillow Effect : Considering our core target group is newly weds and young parents, this category would induce other family members to trial.

 School and College going students are not targeted directly as of now as Natural Ice Cream will be premiumly priced and they generally prefer non-fruit flavours.

Raison D’Etre

The Singapore Market, as of now, doesn’t have Fruit flavoured Ice Creams that Natural Ice Cream has to offer. Our ice creams are made with excellent quality ingredients and are also made traditionally. Thereby giving the consumer a wholesome and healthy dessert, free of preservatives and flavours that come so close to eating the real thing.

To fulfil the consumer need for a healthy, preservative-free, artisan variety of ice cream in local and seasonal fruit flavours, Natural Ice Cream will launch in Singapore.

KEY IDEAS

The aim of this project was to take an Indian Product and Launch it in another Country

The project involved :  Choosing a marketable Indian product that was ‘ready’ to be launched abroad, i.e. Natural Ice Cream.

 Researching backgrounds of various places and finalizing on one place, i.e. Singapore to launch the product. (Research having been done on a number of places like China, Russia, Japan, Malaysia, Qatar, Sri Lanka, Japan, etc. And then short listed and finalized on the basis of the different environments).

 Understanding the importance and how the different Market environments can affect the launch of our product.

 Deciding on a Market Entry Strategy that would be conducive to all Environments as well as be Profitable for our company

 Adapting our product to suit the various needs and the culture of the consumers.

 Defining the perception we want our consumers to have about our brand when we launch.

 Formulating a communication plan which will correctly portray our brand and at the same time be inoffensive.

1. History of the product What started out as a small store in Juhu, today, has become the definition of Mumbai's delectable taste for desserts. A mixture of passion, creativity and determination is what it took to turn Natural Ice Cream into a success story. The journey of R S. Kamath, founder of Natural Ice Cream, was long and accounts to a quarter of a century. The journey started in his younger years, while assisting his father, a fruit dealer, when he got his expertise in fruits. Later on, while working with his brother who ran a chain of eateries and served ice cream, he learnt all about ice cream. This powerful combination lead to the creation of Natural Ice Cream. One hurdle was the equipment used to make the ice cream. Because of its manual use in nature, it became quite a task to increase the production capacity and keep up with the rising demand. So Mr R S. Kamath invented a machine that could produce more ice cream using the same method. In the process he also invented a machine that could de-seed fruits in a very short time. With 25 years of being in the business, 70 outlets across the country and the recently launched state-of the- art factory in Mumbai, Natural Ice Cream is still raring to go places. And it is the rare combination of traditional methods and modern technology that will take us there. Natural Ice Cream started dealership in 1994 and there are over 30 outlets operating in Mumbai, 4 in Pune and each in Nashik and Ahmedabad with our system processed and committed teamwork In 2006, Natural Icecreame was voted as one of the top ice creams in 2nd Consumer Reaction Award conducted by Bharti vidyapeeth Institute of Management Studies & Research & DNA Newspaper Started as a 300-sq-ft ice cream parlour at Juhu, a northwest Mumbai suburb, in 1984, the brand is a runaway success. It now has 89 franchise outlets across West and South India: 47 in Mumbai, 29 in the neighbouring urban clusters of Navi Mumbai, Thane and Pune, and the rest scattered across select cities of Maharashtra and neighbouring states. Ten more will be opened in the current financial year. Natural's revenues have grown from Rs 14 lakh in 1986 to Rs 40 crore in 2010/11. The franchises may be many, but the manufacturing hub is just one, located in another Mumbai suburb, Kandivali. Every morning, a fleet of trucks rolls out from the factory carrying the ice cream to all the Natural outlets, thus ensuring quality is not compromised. 1. Product Description

With the goodness of real, handpicked fresh fruit that perfectly complements the richness of smooth, creamy ice cream, each scoop of Natural ice cream is made to give you a gratifying experience. All this with no artificial flavours, colours or preservatives, made using traditional methods that have stood the test of time.

So what is so unique about our brand that people keep coming back for more every time? For starters, Natural Ice Cream is deeply rooted in tradition and uses traditional methods to make ice cream. All the ingredients we use are almost completely natural and are sourced from India. We do not use any preservatives, stabilisers and artificial colours or chemicals, which is why our ice cream is delicious and wholesome. The ice cream contains less air which makes it rich and creamy. 1. Manufacturing Process Natural is equally careful with the quality of the milk it uses. Buffalo milk brought daily to the factory in tankers undergoes elaborate treatment to maintain the prescribed bacteria count, and is then thickened by reducing the water content. The process, called Falling Film Evaporation, uses a triple cylinder machine to bring the milk's temperature to 30 degree C, before cooling it down to four degrees and then heating it to 90 degree C in four minutes. Cooled again to 4 degree C, it turns into condensed milk - the way it is needed for ice cream production.

Condensed milk, fruit puree and ice churn together in a machine freezes the ice cream to minus 4 degree C within six minutes. The temperature is then lowered to minus 18 degree C using a spiral freezer. Finally the ice cream is packed in boxes and loaded into crates along with plenty of dry ice to keep it from melting, before being carried away in temperature-controlled trucks for the day's consumption.

The means Natural uses to enforce quality control, however, impose their own limits on the brand's expansion. All the temperature control in the world cannot preserve the taste - and more importantly the freshness - of ice cream beyond a specified number of hours, during which Natural's trucks can cover only a finite distance.

Production Steps: 1. Picking fruits- Washing, de skinning, de seeding(in machines) and then pulping. 2. Creating flavours 3. Testing in the laboratory 4. Ice cream factory with special freezers and storage units- Evaporated milk is stored in the freezer, spiral freezing is done bringing it to -18 degrees in 1 hour and then batch processing. 5. The storage warehouse that supplies to all the franchises. 6. Need 4-5 refrigerated vans

7. Marketing Environments

Technological Environment

1. Establishment of technological and research institute The Singapore government allows approved companies to put aside twenty per cent of their taxable income as an R&D reserve (which is tax exempt if spent within three years) and certain companies receive a fifty per cent investment allowance on capital expenditure and double deduction on their operating expenses.

2. Positive Technical policy Singapore today launched its next e-government masterplan (eGov2015). eGov2015 seeks to bring integration of systems, processes and service delivery from within the Government to beyond the Government.

3. High Growth Rate of Information Technology in Singapore

Singapore has an IT-literate and Internet-savvy population. According to the 2006 Annual Survey of Infocomm Usage in Households and by Individuals of the Infocomm Development Authority, 74% of homes in public housing and 92% of the homes in private housing had computer access at home. Manufacturing industries account for more than 60 per cent of the ICT sector, reflecting the concentration of high-tech industries within the manufacturing sector.

Wholesale and retail trade account for another 16 per cent of the ICT sector. Singapore is an important marketing and distribution hub for ICT products

4. Incentive for promoting Technology in Singapore The Singapore government invests large amounts in order to increase the country's attractiveness to investors, particularly in areas where public investment is low, for example. Infrastructure. Science and Technology is a natural area for Singapore to excel in, given its people’s strength in the sciences and mathematics.

Business Environment:  Business information and technical services constitutes 6.9 per cent of the ICT sector.  The largest industry in this sub-sector is business and management consultancy services  Singapore is ranked Asia’s top convention city and has also hosted some of the world’s most prestigious business events like: The World Economic Forum 2005

Pro business Environment  Singapore is known for its pro-business environment which attracts sizable foreign investments and business entrepreneurs. It provides you with an environment where you can turn your ideas into businesses with ease and profitably.  It only takes about 1-2 days to incorporate a business in Singapore.  There is assistance provided by several government bodies at every step of the way.  Singapore embarked on its industrialization programme in the 1960s, beginning with labour- intensive industries.  With good infrastructure, a stable investment climate, political stability, and a disciplined and hardworking workforce, companies were attracted to invest and operate in Singapore.  In 2000, Singapore moved up the value chain again with its initiative to develop the knowledge- intensive biomedical industries. ii) Economic Environment The World Bank’s Ease of Doing Business Index ranks Singapore as the easiest and most conducive environment to establish and run a business. The index takes into consideration several parameters based on environments. Singapore’s economy is one of the most developed economies in not only Asia but the world. It is a state capitalist mixed economy; however it is one of the freest markets in the world. It is also an economy that has had a consistent growth graph in the recent years. Its economic indicators are very encouraging. • GDP of 251.5 billion US dollars • GDP absolute growth 17.9% (2010 est) –in terms of Purchasing Power Parity • Per capita 62100 US dollars, one of the highest in the world • Poverty – Negligible • Inflation 2.8 • Unemployment- 2.1% The main contributors to GDP are the services (73.2%), while Industry makes up the rest (26.8%). Industry growth rate was 26.8% in the last quarter. Retail sales grew by 10.2% in Q2 2011. Food and beverage sales went up in June 2010 and is only projected to grow; a trend that is encouraging for Natural Ice Cream. Currently, it is the fastest growing economy in the world (as of June 2010) It enjoys the highest credit rating of AAA. Average Interest rate is 1.71% Singapore has also been ranked as the 10th most expensive city in the world. The cost of living is very high; to live “comfortably” in Singapore one’s income must be between 60,000-70,000 SGD. Housing makes for a large part of expenditure. However, the disposable income is also very high, owing to low taxation (14.2% of GDP) and basic living items like food and clothing are reasonably priced. Singapore’s economic policies are foreign-investor friendly, with Government funding available for large business projects. Moreover, currency fluctuations have been minimal since 2001. Foreign Direct Investment is growing at 8.6% as of 2010.

Finance Environment:

1. The Monetary Authority of Singapore is Singapore's central bank and financial regulatory authority. It administers the various statutes pertaining to money, banking, insurance, securities and the financial sector in general, as well as currency issuance. MAS does not regulate the monetary system via the foreign exchange mechanism. 2. Singapore's development as a total international business center, an international air-sea cargo center 1. There are three types of banks in Singapore: full licence, restricted, and offshore banks. 2. There are no exchange restrictions in Singapore so it is possible to bring in or take out any amount in any currency.

New Company  You can also incorporate a company in Singapore.  You will need to apply for an Employment Pass under the EntrePass Scheme at the Ministry of Manpower (MOM).

Taxation In Singapore  Singapore has excellent tax benefits for small-to-midsize companies. These apply if you set up a new company here.  For profits around S$300,000, the overall tax rate is still a low 17% (Year of Assessment 2010 onwards).  Startups that meet certain qualifying conditions can claim for tax exemption under the Tax Exemption For Start-ups scheme:

Geographical: (Image)

Location: Southeastern Asia, islands between Malaysia and Indonesia Area: total: 647.5 sq km Land: 637.5 sq km Water: 10 sq km Land boundaries: 0 km Coastline: 193 km Terrain: lowland Irrigated land: NA Natural hazards: NA

Its major natural resources are its location and its deep-water harbor. Singapore Island, though small, has a varied topography. The center of the island contains a number of rounded granitic hills that include the highest point. The island originally was covered with tropical rain forest and fringed with mangrove swamps. Since the founding of the city in 1819, the natural landscape has been altered by human hands, a process that was accelerated in the 1970s and 1980s. By 1988, Singapore's land area was 49 percent built up, and forest covered only 2.5 percent.

Singapore Weather Singapore is two degrees north of the equator and has a tropical climate, with high temperatures moderated by the influence of the sea. Average daily temperature and humidity are high, with a mean maximum of 31°C and a relative humidity of 70 to 80 percent in the afternoon. Rain falls throughout the year, but is heaviest during the early northeast monsoon from November through January. The driest month is July in the middle of the southeast monsoon. The inter-monsoon months of April-May and October are marked by thunderstorms and violent line squalls locally known as Sumatras. The average annual rainfall is 237 centimeters, and much of the rain falls in sudden showers. Singapore is free from earthquakes and typhoons, and the greatest natural hazard is local flash flooding, the threat of which has increased as buildings and paved roads have replaced natural vegetation. In spite of the high rainfall, Singapore's small size and dense population make it necessary to import water from Malaysia. Singapore has responded to this dependence on a foreign country for water by expanding its reservoir capacity and constantly urging household and industrial users to conserve water.

Ecology Singapore's rapid economic growth in the 1970s and 1980s was accompanied both by increased air and water pollution and by increasingly effective government efforts to limit environmental damage. The government established an Anti-Pollution Unit under the Prime Minister's Office in 1970, set up the Ministry of the Environment in 1972, and merged the Anti-Pollution Unit with that ministry in 1983 to ensure unified direction of environmental protection. Motor vehicles were the main source of air pollution, the government required emissions controls on engines and reduced (but not eliminated) the lead content of gasoline. The government also acted, partly for environmental reasons, to restrict private ownership of automobiles through very high (175 percent) import duties, high annual registration fees, and high charges for the entry of private automobiles to the central business district. Singapore, the world's third largest oil refiner, also acted to prevent the pollution of coastal waters by oil spills or discharges from the many large oil tankers that traversed the Strait of Malacca. Singapore – Agriculture v Agriculture, including fishery, is an insignificant part of Singapore's economy, accounting for just 0.2 percent of GDP and employing 0.2 percent of the workforce. Since the 19th century Singapore has been fully reliant on the import of foodstuffs, obtained from its neighbors. We are planning to buy our raw materials from local wholesalers.

Market Entry The mature market scenario with respect to ice creams and market readiness for a fruit variety, the simultaneous launch of outlets is an appropriate entry strategy. High visibility and availability are key considerations for the same.

Franchise Model

Franchise outlets seems to be most successful as they answer the want for brand recognition. The product must be well packaged and branded. It must be economical but not cheap- that will assure sales

Shortcomings in taking Naturals abroad: “ We do not have any branches or stores outside India and we are not considering opening our outlets outside India any time soon. We have received like proposals but haven't considered any for many reasons”

1. Low shelf life of our ice creams (2-3 days only).

2. We are not able to keep up with the demand of local market in Mumbai alone. Due to production constraints in making fresh creamy ice cream like ours (artisan ice cream) we are facing major supply chain problems in catering to our outlets. Waiting for innovation and real improvement in the supply chain system. Till then, the entire venture won't be feasible.

Eigiblity Criteria: concept or cross branding format will be considered (includes interiors & equipments) hence applicants are requested to avoid the same

BIBLIOGRAPHY:

http://www.state.gov/r/pa/ei/bgn/2798.htm

http://www.temasekreview.com/2010/02/11/political-economy-the-big-miss-by-the- economic-strategies-committee/ http://en.wikipedia.org/wiki/Politics_of_Singapore

http://www.business.gov.sg/NR/rdonlyres/06030A45-6CCF-45BC-8F2C- F2833D5D44B4/6514/entrepreneurguide.pdf

http://www3.ambest.com/ratings/cr/reports/Singapore.pdf

http://www.guidemesingapore.com/taxation/corporate-tax/singapore-corporate-tax- guide

http://www.guidemesingapore.com/research-reports/india/singapore-india-dta

BIBLIOGRAPHY: http://www.doingbusiness.org/data/exploreeconomies/singapore/ http://app.mti.gov.sg http://www.jstor.org/pss/2644389 http://www.economywatch.com/world_economy/singapore/ http://www.euromonitor.com/ice-cream-in-singapore/report http://www.marketresearch.com/Datamonitor-v72/Ice-Cream-Singapore-6062598/

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Singapore - the "Learning Island"

Tropical fruits

The Business Times (Singapore): Eight Tech Trends To Look Out For In 2010 - HorizonWatching

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Research and Markets: Ice Cream in Singapore | Business Wire

SGEntrepreneurs

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