Global Marketing Essay

Sinar Sosro Private Limited is the first company that introduced bottled jasmine afternoon tea to the public in Ind wizsia in the year 1940. The family started their production line in Central Java, Indonesia which then expanded their market to Jakarta, Indonesia. Initially, the jasmine tea was brewed on the peak and served to the consumers. However, after they expand their market to Jakarta, they realize that the consumers find the tea that was brewed on the spot find the throw is too hot to be consume. and then Sosro come unwrap with a new strategy, the bottling system. In 1970, they came out with the first design of the bottle where tea was pre-brewed and bottled when it was cooled down and thus sell it to the consumers. The design of the bottle changed once again in 1972 and 1974, which the latter design was used till now. Today, there ar 4 different products which atomic number 18 under Sosro Logo. They are Bottled Sosro tea, Sosro Fruit tea, Sosro Teabag and Sosro Joy Green Tea.In addition to the local market, Sinar Sosro had also penetrated to the oversea market mainly by exporting their products in Tetra Pak and bottomland packages to several(prenominal) countries such as Malaysia, capital of capital of capital of capital of Singapore, Brunei Darussalan and several countries in the Middle tocopherolern countries, Africa, Australia and United States. In this report, I will be deckigating and die the opportunities exist in Singapore for Sosro brand product which is the Sosro Teabag which comes from Indonesia. ENVIRONMENTAL ANALYSIS OF SINGAPORESingapore is cognize as one of the best country in the world for having the suit adapted environment for business. Located at the crossroads of the planetary trade routes, it is a constant top pickaxe by multinationals organization to invest their money in. Singapore is known as a multi-cultural country with its diverse ethnic group, thus the varieties of cuisines are always in need. Food and Beverag e business is one of the major business in Singapore and there is always a market for investors under this sector.Below, we will be analyzing the environment of Singapore and it is elect to be the destination of the product. GEOGRAPHIC Located in the central of South East Asia, Singapore has one of the major advantages in doing business through their sea routes. The availability of the international and domestic transportation as nearly as the natural seaport had allowed Singapore to be one of the important hubs in the international trading. Changi Airport, the international airport of Singapore allows the country to connect with more than 180 countries in the world.This location allows them to well access to all the premier Asian market. SOCIO-CULTURAL / PEOPLE With a population of more than 4 cardinal batch including expatriates, Singapore is a densely populated island with different races of people living harmoniously together. The people are the main drive behind most of th e government decisions which aim to provide a separate life for the people. With a population growth rate of 3. 1% in 2009, the literacy rate of the population comes up to 95% in total contributes to the economic boom in Singapore.The increase of the population plays a major part in the increase of the demand especially in the manufacturing field. Singapore is a knowledge found country, thus explained the highly educated people in the country. agree to the Labor Force Evaluation measuring stick report, Singapore has the best labor force in the world. some of them have high productivity, technical proficiency, wee-wee hard and work smart culture. With skippers coming from all over the world, they learn extensive knowledge and professional expertise as well as experience which also contributes to the welfare of Singapore.The distribution channels for the provender and beverage industry in Singapore can be divided into two main sectors. They are through retailers (includes wet markets, shopping malls, and supermarkets) and food services (e. g. hotels, restaurants, airlines). When it comes to distributing the products, many of them are controlled by local suppliers and their agents. Many of the channels prefer to purchase the products directly from the suppliers if they have large order quantity, for example, NTUC Fairprice and Cold Storage.However, for those who have a smaller order quantity will purchase their products from reliable suppliers. INFRASTRUCTURE Constant upgrading of the countrys infrastructure, Singapore remains as one of the most sought after country by investors to do their business. It is also ranked as Asias top convention city which had hosted some of the worlds most prestigious events. Depending on the size or nature of the business, investors can choose to set up their operations in an industrial/business park, own establishments or go along into a readily open commercial buildings.As it is a technology savy country, Singapore tri es to use technology to build up their susceptibility and approximately 99% of the population have access to internet broadband network. POLITICAL / LEGAL Singapore political system is one that depicts laws, decides priorities and sets regulations using a rational and pro-business approach. It have a vision of speech the country to the front line of the industrialized nations with its stable and orderly government. Singapore government emphasizes its efficiency and forte in every walk of life.As it is run with integrity and transparent, investors can set up their business in an efficient manner without any hassle, bureaucratic delays or the need to pay corrupt officials. According to World Banks report, Singapore is rated strongly for government effectiveness, regulatory quality and control of corruption. Singapore government reviews their policies and programmes and takes extreme measure to restore their thriftiness back to stable as quickly as possible if they come upon economic crisis.Development of Singapore laws reflect and awareness of the need to recognize and take for the investors with their current international business and commercial practices. As there are clear-cut laws regarding working hours, tokenish wages, industrial protection and appraiseation, Singapore makes an attractive place for investors to set up and operate their businesses. ECONOMY virtuoso of the major reasons of doing business in Singapore is the economic factor. Being a member of ASEAN (Association of South East Asia) and FTA (Free Trade Agreement) allows Singapore to be of the best destination to do their business.As part of the member of FTA, Singapore had signed an agreement on the Common Effective Preferential Tariff (CEPT) scheme on 28 January 1992 which aims to eliminate tariffs and non-tariff barriers in the region. Other than Singapore, countries who are part of the ASEAN had also signed the agreement. Investors also enjoy a range of benefits such as preferential ac cess to certain sectors, attractive tax regime, liberal in-migration policies and intellectual property protection. Taxes are always an important factor that all investors take into consideration.One of the alone(p) advantages of Singapore is that they have low corporate taxes. Companies that earn profit up to SGD 300,000 are imposed with 9% tax and it is capped at 18% for the amount more than that. Furthermore, Singapore follow a single-tier tax policy which means investors will be able to receive dividends tax free. In order to move away from direct taxes, Singapore government have adopted a more broad establish consumption tax which is known as Goods and Services Taxes (GST) which is 7%. Intellectual Property Protection is taken seriously in Singapore.Investors or companies are able to register their trademarks in Singapore and also to defy for global trademark registration. In order to promote their economy, Singapore government had also established a couple of(prenominal) p rogrammes which is to assist investors to improve the efficiency and explore new opportunities. The availability of loans, grants and tax incentive as well as equity financing gave many investors the reason to invest in Singapore. COMPETITORS As all the selective information above mentioned, we know that the industry of food and beverage in Singapore is a thriving business.Thus there are many companies that brought in their products to the country. In the current market, there are many competitors that bring in their product. Using our product as a category, we have tea brands such as Lipton, Dilmah, Twinnings, Boh Plantations tea and many others as our competitors. CONCLUSION After analyzing the environment of Singapore, we realize that there are many opportunities that can be explored by the company for our products. With the correct strategy and right marketing strategy, we will be able to have a competitive advantage against other competitors and put our brand to the front.Look ing at the economy of Singapore and how the government made decisions with the pro-business attitude, we believe that Singapore will be a good choice of location to invest the product. REFERENCES 1. EDB Singapore (2009), Singapore Facts and Figures, July 24 2010 http//www. fta. gov. sg/benefit. htm 2. FTA Singapore (2008), Benefits of FTA, July 24, 2010 http//www. fta. gov. sg/benefit. htm 3. Focus Singapore (2009), Business Opportunities, July 27, 2010 http//www. focussingapore. com/singapore-industry/business-opportunities. tml 4. snuff it Me Singapore (2008), Advantages of Doing Business in Singapore, July 25, 2010 http//www. guidemesingapore. com/business/c643-singapore-business-setup-benefits. htm 5. Kotabe, M. and Helsen, K. (2008) Global Marketing Management, John Wiley and Sons Inc. United States of America 6. Sosro (2008), beau monde Profile, July 23, 2010 http//www. sosro. com/sejarah-bisnis. php 7. Statistics Singapore (2007), Latest Data, July 24, 2010 http//www. sings tat. gov. sg/stats/latestdata. html