Our company Pristinus Milk Pvt. Ltd is an Indian dairy company interested in expanding into Singapore. Singapore has a population of 4.3 million with a high per capita GDP and consumption. The dairy industry in Singapore relies heavily on imports as there is no local production. Our company exports a wide range of dairy products that could see success in Singapore's developed consumer market.

1. SUBMITTED BY:-
SHRUTI JAIN(7308)

2. COMPANY PROFILE
Our company is “Pristinus Milk Pvt. Ltd “ dealing in dairy
business .It is among the top three dairy company in India, our
home country. We are now interested in expanding our business
for that we chose to operate in Singapore .

3. SINGAPORE
The Singapore consumer market in overview
Singapore's population is currently estimated at about 4.3 million persons,
which includes citizens, permanent residents and other residents that are
permitted to live in Singapore, e.g. persons with work permits. Its population is
expected to grow to 5 million by 2010.
Citizens and permanent residents comprise more than 80% of residents.
Expatriate families from Developed World regions or countries, e.g. North
America, the EU, Japan, Australia and New Zealand, number about 120,000
persons.

4. • Singapore (GDP per capita: US$ 26,833 in 2005) has one of the most
affluent consumer markets in East Asia. Singapore's economy appears to
have stabilised after a number of years of turbulence, which started with
the Asian Economic Crisis and ended with the SARS outbreak. GDP per
capita in 2005 was the highest reported in Singapore's history. Business
confidence has been increasing since 2004, as has consumer confidence,
albeit more slowly because of lingering concerns in some sections of the
population over job security. About 95% of the population is now reported
to be middle and upper income group consumers. This, taken together with
the fact that Singapore relies very heavily on imported food supplies,
makes it a good target for committed exporters of food and drinks.

5. Singapore Company at a Glance
• Excellent tax benefits from small-to-midsize companies: 0% taxes on 100K
annual profits (first 3 years), approx. 9% tax on annual profits up-to 300K
• Low overall tax rate of 18% on profits above 300K
• Zero taxes on capital gains in general
• We can incorporate a Singapore company in one day
(after incorporation documents are signed by you)
• 100% foreign shareholding allowed
• Minimum paid-up capital of $1 only
• Singapore rated as #1 in ease of doing business in the world
• Singapore rated as the best place to work and live in Asia
• Immigration visa (entrepreneur pass) available for company owners
wishing to relocate to Singapore to run their new Singapore company
• Advancing
• High per capita consumption,
• strong urban consumption,
• decline in local production,
• high value-added, full product range

6. PESTEL ANALYSIS
POLITICAL ANALYSIS
Singapore is a parliamentary democracy, with President SR
Nathan its Head of State. Under the Singapore constitution.
The Singapore parliamentary cabinet is led by Prime Minister Mr
Lee Hsieng Loong, who is appointed by the President. Mr Lee lea
ds the People’s Action Party (PAP) .Action Party (PAP) which has
dominated Singaporen politics since 1959 and shows no signs of
waning.PAP holds 82 of 84 elected seats in parliament.
OTHER POLITICAL PARTIES ARE:-
1 Singapore Democratic Alliance or SDA [CHIAM See Tong];
2 Singapore Democratic Party or SDP [CHEE Soon Juan];
3 Workers' Party or WP [Sylvia LIM Swee Lian]

7. ECONOMIC ANALYSIS
Current Economic Situation
• Singapore has a highly developed and successful free-market economy.
• It enjoys a remarkably open and corruption-free environment, stable prices, and a per
capita GDP equal to that of the four largest West European countries.
• The economy depends heavily on exports, particularly in consumer electronics and
information technology products.
• It is a major hub for transshipments within South East Asia
•one of the Four Asian Tigers
•busiest port in the world in terms of tonnage shipped
•Singapore is the world's fourth largest foreign exchange trading centre
GDP (purchasing power parity):
$228.1 billion (2007 est.)
Reserves of foreign exchange and gold:
$163 billion (31 December 2007 est.)

8. Estimated current per capita gross domestic product
(GDP) isapproximately US$40,000 (purchasing power parity co
mpared with average US$35,000 for OECD countries).
GDP growth is estimated to be 7.5%
in 2007 with a much smaller 4.9% predicted for 2008.
Airports: 8(2007)
Roadways:
total: 3,262 km
paved: 3,262 km (includes 150 km of expressways) (2006)

9. SOCIAL ANALYSIS
Ethnic groups:
Chinese 76.8%, Malay 13.9%, Indian 7.9%, other 1.4% (2000 census)
Religions:
Buddhist 42.5%, Muslim 14.9%, Taoist 8.5%, Hindu 4%, Catholic 4.8%, other
Christian 9.8%, other 0.7%, none 14.8% (2000 census)
Languages:
Mandarin 35%, English 23%, Malay 14.1%, Hokkien 11.4%, Cantonese 5.7%,
Teochew 4.9%, Tamil 3.2%, other Chinese dialects 1.8%, other 0.9% (2000
census)

10. LITERACY
Definition: age 15 and over can read and write
total population: 92.5%
male: 96.6%
female: 88.6% (2000 census)
Population:
4,553,009 (July 2007 estimated).
Adult Literacy:
92.5%
Singaporeans place a lot of importance on relationship building and often
work outside business hours to do this, for example, at dinner. The exchange of
business cards is very important.

11. TECHNOLOGICAL ANALYSIS
Singapore aims to be the hub of knowledge based
industry.
It has implemented the Singapore One concept which
connects the whole island through fiber optic cables.
Services within the IT industry
which are in demand include: internet applications
including electronic commerce; software
development and applications; networking systems
(LAN/WAN products); and IT training
and education. it has more than
1.8 million mobile users. Internet subscribers stand at 1.7 million
. 42% of homes in Singapore have
internet access.

12. ENVIRONMENTAL ANALYSIS
Climate:
Tropical: hot, humid, rainy
Two distinct monsoon seasons - Northeastern
monsoon (December to March) and Southwestern
monsoon (June to September); inter-monsoon -
frequent afternoon and early evening thunderstorms
Land use:
arable land: 1.47%
permanent crops: 1.47%
other: 97.06% (2005)

13. LEGAL ANALYSIS
Tariffs, regulations and customs
• Most goods can be imported freely into Singapore. The Agri
Food and Veterinary Authority (AVA) regulates the safety of all imported or
locally produced food until just before it hits the retail market.
• AVA is responsible for setting and enforcing food safety standards as well as
overseeing food labeling.
• AVA's expertise in accrediting food sources, backed by its up-to-date diagnostic
capabilities, ensures that food arriving at the retail end is safe and wholesome.
• There are relatively few restrictions on imports into Singapore.
• The Food Regulations provide specific requirements on the processing and
constituents of food products.

14. DAIRY INDUSTRY IN SINGAPORE
Singapore relies on imports for a large proportion of its
domestic food and beverage needs.
There is no primary agriculture and virtually all raw
materials for food manufacturing are imported.
. The European Union, Australia and New Zealand are major s
uppliers for dairy
products to Singapore. There is a significant market potential
for bulk dry milk powder for repackaging
into consumer size packs. Singapore traders are looking to dis
tribute this re-packed milk powder to
other emerging Asian markets. Other dairy products with pot
ential are cheese, yogurt and ice cream.

16. Dairy Industry –
The industry has strengthened in this region
since dairy deregulation.
10% growth per annum consistently over the
last 10 years.
Many farming operations are investing
heavily in on-farm developments.
To accommodate this increased production,
the industry needs to invest $50 million

17. Singapore’s population of 4 million to enjoy access to one of
the region’s most developed food markets, with sophisticated
retailing and food service channels.
Singapore has virtually no agricultural production of its own
and depends on imported food ingredients and retail food
products to satisfy around 90% of its food market
requirements.
It has an open economy with no tariffs on imported food or
beverage products from Australia Singapore’s food retail
sector is sophisticated and highly concentrated.
Several of the world’s major food retail groups have a
presence in the market.
Exports of milk powder accounted for 70% of dairy
exports with a value of $92 million.

18. DAIRY PRODUCTS: Our Company Exports
 Liquid milk.
 Ice cream.
 Yoghurt.
 Retail packed milk powders.
 Infant formula.
 Butter and ghee.
 Cheese in all forms.
 Cream.
 Condensed and evaporated milk.
 Dairy ingredients, including skim milk powder, whole milk powder,
sweetened milk, powders, buttermilk, whey, anhydrous milk powder,
lactose and casein/caseinates.

19. STRENGTH
DEMAND PROFILE: ABSOLUTELY OPTIMISTIC.
• ADEQUATE FINANCIAL RESOURCES
• GOOD COMPETITIVE SKILL
• STRONG MARKET IMAGE AND MARKET LEADER
• FLEXIBILITY OF PRODUCT MIX IS TREMENDOUS. WITH BALANCING EQUIPMENT,
YOU CAN KEEP ON ADDING TO YOUR PRODUCT LINE.
• ABUNDANT AVAILABILITY OF RAW MATERIAL.
• WELL-CONCEIVED FUNCTIONAL AREA STRATEGIES
• ACCESS TO ECONOMIES OF SCALE
• AHEAD OF STRONG COMPETITIVE PRESSURES
• COST ADVANTAGES
• BETTER ADVERTISING CAMPAIGNS
• PRODUCT INNOVATION SKILLS
• BETTER MANUFACTURING CAPABILITY
• SUPERIOR TECHNOLOGICAL SKILLS
• TECHNICAL MANPOWER
• LOGISTICS OF PROCUREMENT
• STRONG DISTRIBUTION

20. WEAKNESS
• HIGHLY PERISHABLE PRODUCT
• OBSOLETE FACILITIES
•· MISSING SOME KEY SKILLS OR COMPETENCE
•·POOR TRACK RECORD IN IMPLEMENTING
STRATEGY
•· FALLING BEHIND IN R AND D
•· TOO NARROW A PRODUCT LINE
•. LACK OF CONTROL OVER YIELD

21. OPPORTUNITY
• SERVE ADDITIONAL CUSTOMER GROUPS
• ENTER NEW MARKET OR SEGMENTS
• EXPAND PRODUCT LINE TO MEET BROADER RANGE OF CUSTOMER NEEDS
• DIVERSIFY INTO RELATED PRODUCTS
• VERTICAL INTEGRATION
• FALLING TRADE BARRIERS IN ATTRACTIVE FOREIGN MARKETS
• COMPLACENCY AMONG RIVAL FIRMS
• SINGAPORE'S AGEING POPULATION
• RISING AVERAGE INCOME LEVELS AMONG THE WHOLE POPULATION .
• BAN ON CHINA BY SINGAPORE GOVT. HAVE GIVEN A GREAT
OPPORTUNITY TO OTHER COUNTRIES SPECIALLY INDIA.
• CONSUMERS SEEKING CONVENIENCE
• GREATER ‘WESTERNISATION’ THAN IN NEIGHBORING COUNTRIES
• VALUE ADDITION: THERE IS A PHENOMENAL SCOPE FOR INNOVATIONS IN
PRODUCT DEVELOPMENT, PACKAGING AND PRESENTATION.

22. THREATS
• ENTRY OF LOWER-COST COMPETITORS
• RISING SALES OF SUBSTITUTE PRODUCTS
• LOWER MARKET GROWTH
• ADVERSE SHIFTS IN FOREIGN EXCHANGE RATES AND TRADE
POLICIES OF FOREIGN GOVERNMENTS
• COSTLY REGULATORY REQUIREMENTS
• GROWING BARGAINING POWER OF CUSTOMERS OR
SUPPLIERS
• CHANGING BUYER NEEDS AND TASTES
• ADVERSE DEMOGRAPHIC CHANGES

23. SEGMENTATION

24. TARGETING

25. POSITIONING
“Positioning is the art of designing company’s
offering & image so that they occupy a meaningful /
distinct competitive position in the target customer’s
mind.”
• Differentiation is based on:-
1)Product, in terms of features like: quality,
freshness, health.
2)Channel, in terms of distribution.
• Positioning strategy is based on attributes of
products like:-
Purity, healthy, quality, freshness and taste.

26. Potential Entrants
(Mobility Threat)
Buyers
Suppliers Competitor
(Buyer Power)
(Supplier Power) (Segment Rivalry)
Substitutes
(Threat of Substitutes)

27. Threats of competitors:
• Segment is unattractive if:
– Segment contains numerous / strong / aggressive competitors.
– Fixed costs are high.
• Above may lead to:
– Price wars.
– More advertising cost.
– Multiple new product introductions which may be expensive.
• There are large number of competitors in the market.
Hence we need to work efficiently on marketing efforts.
• If more no of competitors are there, consumer will have
variety of option to choose from to get the desired product at
lowest cost.

28. Threat of New Entrants:
low
Low Low
stable returns risky returns
Entry
Barrier
High High
stable returns Risky Returns
High
Stable Returns risky
•Dairy industry in Singapore is observing very good growth,hence large number of players
want to enter in to this industry.
•Ban on china dairy products resulted into more scope to other players to export their
products.

29. Threat of Substitute Product:
• If actual/ potential substitute cost, then there
is a limitation on price/ profit.
• Impact of technology change / competition is
more in substitutes. Industry need to be
monitored.
• The risk of substitutes can be eliminated by
offering innovative products and giving them
delight.

30. Threat of Buyers Growing Bargaining
Power:
• This may happen when:
• Buyers get organized.
• If more no of competitors are there, consumer will
have variety of option to choose from to get the
desired product at lowest cost.
• If buyer is purchasing any product after every specific
interval of time, he may ask either for credit or lower
the price.
• If product is undifferentiated, buyers can switch.

31. Threat of Suppliers Growing Bargaining
Power:
• May be evident through suppliers:
• Increasing price
• Reducing quality.
• Happens when situation similar reverse of
buyer’s threat occurs.
• Firm needs to :
• Develop multiple supply sources.
• Develop win-win relationship with suppliers.
•

32. MARKET ENTRY STRATEGIES
To enter in Singapore market we are using strategies
like:-
• Direct export: In this case market research, market
contact, pricing, export documentation etc.are done
by manufacture who actually exports.
• Strategic alliance: A firm may form an alliance (not
JV) with a company abroad (generally, a competitor)
to share each others’ strength on reciprocal basis.
Here we can use the distribution channel of an
established firm with a strong distribution channel.

33. PROMOTION
Every business needs a means of communicating with its customers (and potential
customers) to promote its products or company image.
Since our product is unknown in Singapore, so we need to communicate it.For this
the strategy used is:
Pull Strategies
Promotional strategies that pull the product toward the end user by enticing the
consumer to buy the product.
- For this we will go for advertising because advertising is geared to attract a
customer's attention to help win his/her loyalty .For this we will use radio,
television, billboards and the printed press.
-We will also go for consumer sales promotions such as we will be giving free
coupons for purchasing more than 4 products of our company and free samples in
small packets.

34. DISTRIBUTION CHANNEL

35. THANK YOU