1. Introducing Wrigley’s Difüze to Singapore
MKTG 3231-002
Professor Cohen
Fall 2014
Prepared by:
Nichole Buchanan
Tyler Gaydac
Ryan Konrad
Ana Torres

2. 1
Table of Contents
Executive Summary ........................................................................................................2
Product Information and History ................................................................................3
Cultural Analysis .............................................................................................................5
Introduction..........................................................................................................................................................5
BriefHistory.........................................................................................................................................................6
Social Institutions..............................................................................................................................................6
Social Organization...........................................................................................................................................7
Business customs and practices................................................................................................................8
Living conditions................................................................................................................................................8
Language.................................................................................................................................................................8
Economic Analysis ..........................................................................................................9
Introduction..........................................................................................................................................................9
Population..............................................................................................................................................................9
Economic Statistics and Activity............................................................................................................10
Market Audit and Competitive Market Analysis.....................................................11
Introduction.......................................................................................................................................................11
The Product........................................................................................................................................................12
The Market.........................................................................................................................................................12
Marketing Plan ..............................................................................................................14
Marketing Objectives....................................................................................................................................14
Product adaptationor modification....................................................................................................16
PromotionMix..................................................................................................................................................16
Distribution........................................................................................................................................................18
Channelsof Distribution.............................................................................................................................19
Price Determination.....................................................................................................................................19
References ......................................................................................................................20

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Executive Summary
Founded back in 1981, Wrigley is now one of the world’s leading producers of
gum. We are prepared to release a new type of chewing gum, called Difüze, exclusively
to Singapore now that the ban on chewing gum has been lifted. Difüze will be produced
in Chicago and exported to Singapore through the use of DHL Express, a freight
forwarder Singapore is already familiar with. We will market to the entire country of
Singapore using primarily public transportation ads, health brochures, and samples.
Singapore is well known for its cleanliness, which is exactly why we see this product as a
perfect fit. The ban on chewing gum was put into effect back in 1992 due to the never
ending cleaning processes that improper disposal of gum required. As of 2004, gum in
Singapore can only be purchased through pharmacies and dentist offices. In addition,
these medical professionals are required to take down basic information of all those
purchasing the gum. This is extremely inconvenient and we wish to help change it. This
product is unique because it is water-soluble and it contains a special polymer that makes
it less sticky than other gums while still retaining the same texture and taste. We see
Difüze as an opportunity to convince the government that chewing gum can once again
be sold in every day retailers, ultimately giving freedom back to those who chew gum in
Singapore.

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Product Information and History
William Wrigley Jr. founded Wrigley back in 1981. We are stationed in Chicago,
Illinois, and are now a subsidiary of Mars Inc. as of 2008. Wrigley has been captivating
consumers with our exceptional products and customer service for over 100 years.
Specializing in gum, we also make products such as hard/soft candies, mints, lollipops
and more. It all started by going door-to-door selling soap and baking powder. William
Wrigley Jr. started selling soap while also offering free baking powder as an incentive for
buying it. Once he realized the baking powder was more popular than the soap, he
switched to just selling baking powder. Wrigley then began to offer free chewing gum
with each can of baking powder, and we are now one of the world’s leading gum
manufacturers. Some of our brands of gum include: Juicy Fruit, Doublemint, Big Red,
Extra, Eclipse, and Orbit.
We are planning to release a new line of chewing gum exclusively to Singapore,
called Difüze. Difüze will be manufactured at our headquarters in Chicago and exported
directly to Singapore. Being that it is not cheap to export, we want to first test Difüze
only in that specific country. If people like it, we will increase production and begin
distributing it to the rest of the world. Chewing gum was banned in Singapore in 1992
due to the never-ending lack of disposal. The new Prime Minister, Goh Chok Tong,
implemented the ban in January of that year. Public city workers during the early 1980s
had great trouble cleaning the city streets, staircases, elevators, pavements, city busses
and other public areas. The ban restricted the use, distribution and trade of all kinds of
chewing gum. No black market for chewing gum ever emerged in Singapore. Some
people were even going through the trouble of traveling to neighboring countries, like

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Malaysia, to purchase it. Offenders were publicly named and shamed by the government,
as well as possible jail sentences to prevent future offenders.
In 1999, the US and Singapore began talking about a bilateral free trade
agreement called the US-Singapore Free Trade Agreement (USSFTA). The USSFTA
outlines the duties and obligations of Singapore and the United States with regard to areas
such as trade in goods and services, customs procedures, movement of businesspersons,
intellectual property protection and the environment. Seeing this as an opportunity to get
back into Singapore, Wrigley quickly jumped in to help get chewing gum on the agenda.
Signed in May of 2003, the USSFTA took effect on January 1, 2004, ultimately lifting
the ban on chewing gum. Singapore allowed Wrigley to sell Orbit after realizing the
potential health benefits of sugar free gum that include things like calcium lactate to help
strengthen teeth. A dentist or pharmacist, who must take down the information of buyers,
is the only personnel authorized to sell gum and it must be therapeutic in some way.
Difüze is a dissolvable gum that we want to first test in Singapore. The name is a
mix between the words diffuse, meaning to spread to a large group of people, and defuse,
meaning to reduce tension. The diaeresis above the “u” is simply there to help the citizens
of Singapore better pronounce the word. Difüze contains a special polymer that makes it
far less sticky than regular gum. It has the same taste and texture everyone is used to, but
it is water-soluble. This means rain and basic street cleaning will take it off the streets,
and water will take it right out of various fabrics and other materials. This will save the
government from having to spend money on chemicals needed to remove it.
We began thinking about this particular product in 2005; right after the USSFTA
was passed. The idea came about immediately after we were told our gum could not be

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purchased outside of a pharmacy or dentist office in Singapore. We want the government
of Singapore to realize the benefits of a dissolvable chewing gum and eventually allow us
to sell it at every day retailers. If all goes well, we will pull all of Wrigley gum out of
Singapore and just sell Difüze, at least until the ban is lifted completely. This will save us
money because we will not have to export all of our other gum brands to Singapore.
Since Difüze will be the only gum being sold outside of medical establishments, it will
become the default purchase for consumers who do not want to go through the trouble of
giving out all their information just to get some gum. This will ultimately allow us to
control the market, increase profits, and keep the people of Singapore happy.
Cultural Analysis
Introduction
Singapore, the small island country at the southern tip of Malaysia holds a global
presence that is much greater than its size. Singapore is a developing cosmopolitan
country that offers a high standard of living and a progressive and well-developed
environment. Its geographic position has allowed it to develop into one of the most
important trade and finance havens in the world. It is recognized as one of the Four Asian
Tigers because of it’s highly developed economy.
Singapore is recognized as a country with very strong laws, which are strictly
enforced. Although this has given the country a reputation as an authoritarian country,
these strict rules keep the country clean and safe making Singapore a dream living
destination. One of the most interesting traits about Singapore is its blend of various
cultures. Besides the diverse ethnicities and beliefs coexisting in this small country, there

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are several other factors that we have analyzed that make Singapore a unique target for
business.
Brief History
Long before Singapore became known as a major global trade port, it was once a
fishing village under the British Empire. Legend has it that Singapore was founded in the
14th century when Sang Nila Utama, a prince from Sumatra came to the island and
spotted a lion. He saw this lion as a good omen and named the land Singapura, meaning
“lion city”. Due to Singapore’s position at the tip of the Malay Peninsula, it is a natural
meeting point of sea routes and served as a trading post (“A Brief History of Singapore”).
Centuries later, modern Singapore was founded. Sir Stamford Raffles, the then
governor of Bencoolen on the island of Sumatra realized a need for a British port to base
the merchant fleet of the growing empire. Raffles landed in Singapore in 1819 and
realized great potential. After negotiating a treaty with the local rulers, Singapore’s free
trade policy attracted several merchants from Asia as well as the US (Lambert).
The new trading post at Singapore grew rapidly and attracted several immigrants
and merchants from Europe, Malaysia, China, and India, creating their multi-national
culture that has made Singapore the flourishing cosmopolitan country that it is today.
Social Institutions
Politics
Singapore is a multi-party nation, yet the People’s Action Party (PAP) has
dominated Singapore’s politics since the island country gained sovereignty in
1965. Its governing philosophy is best described as a Socialist Democracy. Under
the leadership of the PAP, Singapore possesses a distinct political culture:
authoritarian, pragmatic, rational and legalistic. The power structure in Singapore

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culture is highly centralized, characterized by a top-down style and most officials
are appointed to rather than elected. Stated in Hawksford’s guide to Singapore,
“Singapore is not administered by politicians, but by bureaucrats, in a meritocracy
where power is gained through skill, performance, and loyalty to the nation and
its policies” (“Introduction to Singapore’s Political System”).
The Hawskford guide also states, “There is a dominance of government-
controlled companies in the local economy. But in spite of its powerful position,
the Singapore government has maintained a clean, corruption-free image. In
addition, rifts within the leadership in Singapore are rare. The mode of decision
making is by consensus, and the leadership style is collective (“Introduction to
Singapore’s Political System”)”.
Social Organization
Despite Singapore’s small size, its culture is one of the richest in the world. As
immigrants and merchants from China, India, Malaysia, Europe and the Middle East
migrated to Singapore with hope of prosperity; they brought with them their own unique
cultures, languages and beliefs. Intermingling of the different cultures influenced the
development of Singapore’s unique cultural heritage. Singapore’s population is majorly
made up of Chinese (74%), Malays (13%), Indians (9%), and European/other Asian
ethnicities (3%). Expatriates also make up a majority of the population
(yoursingapore.com). As a result of the mixture of ethnicities introduced to the island, the
country was originally divided into 4 segments relative to each of the major ethnic
groups. Today, this separation no longer exists, but each culture has left its trace in the
once alienated regions.

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Business customs and practices
With Singapore being so culturally diverse and housing several expatriates
especially from the US, doing business in Singapore is closely similar to the US.
Singaporeans are keen on punctuality and meetings must be well thought out in advance.
As far as interactions, the small size of the country has influenced the way network with
one another.
Singaporeans value creating close face-to-face relationships before doing
business, so one must be patient and invest in the relationship. People also value learning
from colleagues, so it is critical to be respectful at all levels of business (Swiet). A simple
handshake is the most common business greeting. Refrain from analyzing a handshake
too much, it is merely a friendly greeting. Western body language does differ from
Singaporean body language in which looking someone straight in the eyes may be
interpreted as a sign of disrespect or aggression (Thomas).
Living conditions
Singapore is well renowned for its cleanliness, safety and low crime rates due to
their strongly enforced laws. It is extremely well developed and the standard of living is
among the highest in Asia with finest facilities for education, shopping and recreation.
As far as cleanliness goes, Singapore takes pride in enforcing strict laws against
littering. Most famously, their former ban against the selling and importing of chewing
gum has helped keep buildings, streets and public transportation clean.
Language
As a result of Singapore’s diverse culture, several languages are spoken within the
population and most people speak more than one. English, Chinese, Malay and Tamil,
being the most popular related to the four major ethnic groups represented in the country.

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Malay is the national language, but because of Singapore’s major role in international
business, English is the most prominent and most used for business, government and
education. The presence of other languages has influenced the type of English spoken in
Singapore. Their form of English is known as “Singlish”, which incorporates words from
Malay, Chinese as well as Indian (“Culture, Language and People”).
Economic Analysis
Introduction
According to Business Insider, Singapore is ranked the 5th wealthiest country in the
world, as well as the 4th largest foreign exchange trading center in the world, making this
country one of the most attractive places to live and do business in (Johnson). Singapore
thrives on an open and corruption free market and their main source of income comes
from the export of goods. In order to properly adapt and market our product to Singapore
we have analyzed key economic factors that must be considered.
Population
Approximately 5 million people live in Singapore with an annual growth rate
of 1.6%. About a third of the population is foreign born. We can expect an increase
in foreign-born residents due to their high involvement in global business as well as
attractive living standards.

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Economic Statistics and Activity
GDP
In order to measure Singapore’s economic performance, we recognized
that the GDP is approximately $300 billion and is expected to increase 2-4% in
2015 due to the manufacturing and services sectors (See Image1). Singapore’s
economy depends greatly on trade being the 14th largest exporter and the 15th
largest importer of merchandise in the world (stat.wto.org).
Image 1.
Distribution of Wealth
Singaporean culture values saving money rather than spending, which has
resulted in a large wage gap. Although there are no official numbers on the
distribution of wealth, a global wealth report released by Credit Suisse stated that
Singapore’s wealth per adult (age 20 and up) was about $90,000, with half of the
adults holding less than that and half holding more. The top 1% of the population
holds a majority of the wealth (Chan).

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Surface Transportation
Travelling around the small island country is simple due to the abundance
of public transportation such as buses and trains and taxis. Because public
transportation is most common in Singapore, the government has implemented
strict laws in order to keep the country clean for all people. Public cleaning is
held responsible under the Department of Cleanliness, which is part of the
National Environment Agency of Singapore. In 2012 about $274 million was
allocated to fund the cleanliness of public places (Singaporebudget.gov.sg).
The Port of Singapore is the busiest hub in the world because of its natural
geographic position. The port offers connectivity to over 600 ports in 123
countries and handles bulk containers and cargo. This would be the main hub used
to import our product from our headquarters in Chicago to Singapore.
Market Audit and Competitive Market Analysis
Introduction
Wrigley already has several gum products being sold in Singapore and we, as a
company, believe our new Difüze gum brand has a great potential to be a success in the
market as well. Singapore is one of the wealthiest countries in terms of income so finding
consumers who are willing and able to purchase our product will not be a problem. The
real challenge will be convincing the market that we have a genuine product and for all
gum chewers to try it out. Also, it is vital to win over the market share and consumers
from our competitors in order to grow our brand.

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The Product
Difüze dissolvable gum has the potential to be a top selling product in the market.
It has an advantage over Wrigley’s other gum products and those of our competitors
being that it has the unique ability to dissolve with water. We believe this is a great
advantage because with all the rules and regulations regarding chewing gum in Singapore
we have created a product that can essentially get rid of those laws. People have been
reduced to only being able to chew gum in their own homes and we want to give people
their freedom to chew anywhere back to them. As mentioned before, our gum will be
made with a special polymer that doesn’t stick and can dissolve and we believe we have
chosen the perfect market to test our product because of the ban on chewing gum has
been lifted and we have the opportunity to change the way people think about gum.
Although our product has many benefits, there are some potential problems that
could arise when we enter the market. One problem could be that consumers have strong
brand loyalty and will refuse to switch to a different brand no matter how similar or
different the product is. Also, even if we did convince consumers to switch to our brand,
there is no guarantee that the gum will be properly disposed of after chewing. Customers
might get the notion that if it dissolves then they don’t have to worry about leaving their
used gum in the same places as before, which resulted in the gum ban in the first place.
The Market
The region in which we are marketing our product is the entire country of
Singapore. There are various modes of transportation within the country. Many people
own their own car but the majority of people use the many forms of public transportation
available to them including taxis, buses, and trains as well as cable cars and river taxis for
tourism. Since Singapore is a predominantly wealthy country, consumers tend to shop at

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more high-end stores that sell luxury products. Fashion is a major consumer product in
the region and trends change every year causing them to get bored easily and always have
their eyes open for new and exciting products.
Because of the chewing gum restrictions, you can only acquire chewing gum from
pharmacies and through a prescription from your dentist and not through typical retail
store so we have a limited distribution channel. One of the goals for our product is to help
ease the restrictions of chewing gum to where eventually they will allow the public sale
of Difüze in supermarkets and other retail outlets.
In Singapore, “earned” advertising, such as word-of-mouth communication, is the
most effective and trusted form of advertising in the market. According to a Nielson
survey, 85 percent of people trust word-of-mouth endorsements over any other form or
advertising. Not far down the list are television ads at 65 percent and
newspaper/magazine ads at 62 percent (sbr.com.sg). There is also and increased interest
in online advertisements as more people are starting to rely more on them. Also, in the
same study, it was found that consumers in Singapore also tend to pay more attention to
ads that portray real-life situations as well as ads that included humor or were more
family-oriented.
Even with the strict laws regarding chewing gum we will still have to compete
with other brands of gum currently marketed in Singapore including Impress gum owned
by ADB International inc, Nicorette gum, a product of Pfizer, Biotene dry mouth gum
made by Laclede inc, and Chlorhexidine chewing gum made by Fertin Pharma AS, with
the last two being prescription only. Each of these products has certain health benefits
that allow them to be sold in Singapore, but none of them have the ability to dissolve like

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ours. The other gum brands, excluding Nicorette, have general chewing gum qualities
that help rebuild tooth enamel and improve oral health while Nicorette is a gum that helps
people quit smoking.
The sales of chewing gum are currently on the decline. Of the estimated $26
billion in worldwide industry sales this year, we predict that the sales for Singapore will
be in the $1.5 - $2 billion range. We are also projecting that our brand will reach around
$400 million in the market for the first year.
Marketing Plan
Marketing Objectives
The objectives for Difüze’s success in Singapore is based off of the success of our
current Wrigley products in the surrounding foreign market of Singapore, as well as the
current sales of adult mouth care in Singapore. Although gum sales are expected to
decline as a whole, we believe that with the introduction of Difüze, it can create more
competition and appeal if marketed the right way. According to a Euromonitor
International report, although gum sales are expected to decline because of lack of
competition and limited products, the need for mouth care is expected to increase
significantly and with the introduction of our product. From this, more people will be
drawn more to the additional benefits Difüze has, as well as the added benefit of helping
the community by purchasing Difüze gum.
We compared sales to that of India, because Singapore’s gum sale information
was very limited. In 2012, India had chewing gum sales of 0.4 billion US dollars. In
2013, that number rose to 0.5 billion US dollars (See Image2). Although India sells gum
freely in stores as a “snack” food, and Singapore only sells gum if it’s therapeutic, the

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consumption of Difüze is expected to increase the sales for Wrigley because of the
increased usage in Singapore’s surrounding countries, as well as Singapore’s concern for
mouth care.
Image 2.
The profit expectation is expected to be relatively high. Wrigley already
dominates a lot of Singapore’s gum market because it currently markets other gum and
products, such as Orbit, and Eclipse. Difüze will provide therapeutic benefits and an
added addition of being water-soluble. Through this innovative product, profits are
expected to increase from the current profits already made by Wrigley.
Product development strategy is what we will be using to introduce Difüze in
Singapore. Wrigley already sells its current products in Singapore, and with this new
product, we will have to use this strategy to expand its consumption. We will use
Singapore’s current gum market, as well as Wrigley’s current sales and strategies and
combine our new product and features to appeal to consumers.

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Product adaptation or modification
Difüze will only be adapted by how are current products are selling. Difüze,
because it’s “green”, will have an earthy tone to it, and will indicate in both Mandarin
and English how it dissolves over time, making it environmentally friendly, and healthy
for the consumer as well. Our mint gum has seemed to be a product that sells
comparatively well in the Singapore market, so we will be using the same type of mint
flavor in Difüze.
According to Singapore’s export laws, any food-related item, along with most
other exports to the country, must contain the following on the product’s packaging:
prescribed food name, list of ingredients, mandatory warning, advisory statements or
allergens declarations, net weight or volume, date mark, nutritional information panel,
instructions for use or storage, country of origin, the name and address of the business
and manufacturer and importer (Export.gov).
Promotion Mix
Concerning the laws and regulations of selling and purchasing certain gum in
Singapore, our plan of promotion will be the most difficult obstacle in marketing Difüze.
As stated earlier, Difüze, or gum in general, can only be sold in pharmacies that market
the gum as a health product. So, the way we market the gum in the United States will be
very different than what we need to do in Singapore.
Advertising
Our goal is to use advertisements to entice customers to consume our
product. The best method would be to place small advertisements on and within
public transportation autos. Most people get around Singapore through either
taxis, MRT, or buses. Because these methods of transportation are most often

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used by Singapore residents and tourists as well, most people are more susceptible
to viewing the ads on their drive to work, or to an excursion.
Placing brochures about our product in pharmacies would be another way
to not only advertise our product, but inform our customer and make them more
knowledgeable about how exactly this product can benefit them, as well as
society because of it’s water soluble properties.
Sales Promotion
For our introduction of the product, we are planning on selling Difüze in a
free sample for every purchase with our other Wrigley gum products within the
first month. So, in terms of packaging, we will be attaching our gum as a set to
our other products. This will entice our current customers, to expand and try our
new product, as well as entice people who normally don’t buy our products, to
purchase them now, because they are getting a free sample with it.
Personal Selling
We plan on using personal selling in the very beginning of our product’s
introduction, especially to pharmacies that we would want to sell our product to.
In order to continue selling our product to pharmacies that will then sell our
products to their customers in a long-term outlook, we must build relationships
with Singapore pharmacies. With combination of free samples, as well as coupons
we’d be able to give them, our relationships that we build through personal selling
with the pharmacies will keep Difüze on the shelves.

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Distribution
Mode Selection
The easiest method for our product to gain economies of scale in
Singapore would be to maintain production and manufacturing of Difüze in our
own facility in Chicago, and once its completed and packaged, export it to
Singapore’s main port, which is located right in the capital of Singapore one of
the biggest ports in Asia. The process to create Difüze is relatively short and lacks
many other processes, so the cheapest and easiest bet would be to export. This
gives us the opportunity to keep production at home and because we currently
already sell products in Singapore, the exporting process wouldn’t be as risky or
pricey.
Packaging and Documentation
According to Singapore’s export and import regulations, any products that
are considered medicinal, which Difüze would be, would need to be approved and
licensed by the Health Sciences Authority. They will also be shipped and
packaged in normal Wrigley’s packaging, and DHL outside packaging to
determine where our product is coming from for our importers.
Freight & Insurance
The company we will be looking into for transporting Difüze into
Singapore is DHL. They are a global leader in international shipment and have
expertise and locations specifically in Singapore. With our headquarters of
production located in Chicago, Illinois, we will be using DHL express and their
option of airfreight so our product can get there quickly and efficiently.

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Channels of Distribution
We would have to sell our products in pharmacies based on Singapore’s law of
selling gum. We really want to push our product on to local pharmacies, as well as chain
pharmacies. Unity and Watson’s are two pharmacies that have multiple locations within
Singapore. Most pharmacies in Singapore, unless it’s an outdoor market pharmacy, take
credit, cash, and checks, so method of payment will not be a large problem. Our
operation, because we are targeting most pharmacies, and can only sell in pharmacies,
will focus on a small scale of operation. We may be able to eventually set our operations
on a larger scale in it’s surrounding islands and countries if the country is willing to
expand Difüze to sell in local markets because of it’s innovative ability to dissolve.
Price Determination
The costs for our operations are vary competitive for our product to develop in
Singapore. According to DHL’s price estimates, the cost of shipping approximately 20-
25kg of Difüze into Singapore would be around $850-$1,000, depending on the specific
time of express delivery. Our product is considered duty-free in Singapore, so any export
taxes will virtually be irrelevant. The retail price of our product is $2.50 when we
determine all costs. When we sell our products as samples with our current gum products,
we expect those current gum prices to be increased by $0.33 to sustain profit.
Transportation costs within the country would be around $500, which will vary
depending on gas price stability. However, we will be using CIF plan in terms of what
costs we will pay. All of the after its arrival at the port will be incurred by the importer.
The payment to DHL will be used with their electronic Waybill, which is paid by
Wrigley’s in previously discussed terms.

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