Current Issues: (Social and Culture)

Newspaper article analysis : (Social and Culture)

This news represent NTUC Fairprice’s denotes books to needy students in Singapore.  This conduct is positive to the society and improves its CSR (corporate social responsibility).  This news inflect two respects: one is purchasing books for some poor Singapore family is a problem; and the other one is NTUC Fairprice’s obtains the effective reputation in Singapore by this case.  In Singapore, the price this very expensive; according to some news, Singapore raised two notches to sixth spot as the most expensive city in Asia after four Japanese cities and Seou (Anita, 2011).  As the 6^th most expensive country, the expenditure in foods and clothing will be higher price comparing to another country, so that some Singaporean cannot afford for purchasing text books for their kids’ education. 

Current issues: (Technology)

Newspaper article analysis: (Technology) 

This news reported Google is going to set up a Google data centre in Singapore, which costs 120 million USD.  Recently, some news reported Singapore Prime Minister Lee Hsien Loong said Singapore should raise R&D spending to 3.5 pct of GDP by 2015 (Singapore should raise R&D spending to 3.5 pct of GDP by 2015: PM, 2011). Google corporate may discover this opportunity and is willing to establish a data centre in Singapore.  The conduction by Google absolutely will develop the R&D in Singapore and advance the economics.  As the report mentioned, this program will boost the job market in a small way, which is positive for employment. 

What entry strategies can firms adopt when contemplating new overseas markets? Which approach would be most feasible for firms going overseas for the first time?

What entry strategies can firms adopt when contemplating new overseas markets? Which approach would be most feasible for firms going overseas for the first time?

There are several entry strategies that a firm can adopt when they considered investing in to a new oversea market.

First of all, it is the exporting. This strategy is the company produces their product in their home country and transfers its product for sales in foreign countries. This enable the company to market its product oversea at a low resource cost and low risk but it also mean they have low ownership of foreign operation.

Next, the company can adopt licensing. It means a company in the one country makes certain resource available to companies in another country. The resource include trademark, pattern.For example, Heineken sells their license to Singapore local brewer to produce and sell the beer.

From market to market, a thin line exists between gift-giving and bribery. Discuss this statement with examples. Can psychic distance help an international what constitution ethic behavior in an overseas market?

From market to market, a thin line exists between gift-giving and bribery. Discuss this statement with examples. Can psychic distance help an international what constitution ethic behavior in an overseas market?

A gift is defined as the transfer of something without the expectation of receiving something in return. Gift is known as small tokens of appreciation, more cherished for their intrinsic value. In addition, gift is a perishable good that be shared by many. For example, if I invited my friend come over to my home for Christmas and my friend brought a bottle of wine and a box of chocolates, that is a gift, they are small, they have come to my house to celebrate Christmas, and the gift  fit within the occasion. Then we can most likely to determine this is a gift.

Bribe is defines as an illegal payment from one parties to another, usually in return a legal favour. IF a company gives a token that has high value and can be traded in the marketplace to the country office, it is considered as bribe instead of gift giving. For example, if you were a public official and I came to your house for Christmas and bought a diamond necklace and Rolex watch along with the wine and chocolates, it is clearly not a gift, it is likely to influence someone in your position. This gift may then become a bribe.

Provide examples of international companies that use new forms of electronic media for direct communication with potential customers. How international companies that utilize traditional media? Provide examples of international companies that use new forms of electronic media for direct communication with potential customers. How international companies that utilize traditional media?

Provide examples of international companies that use new forms of electronic media for direct communication with potential customers. How international companies that utilize traditional media?

Electronic media

Digital Billboard

A digital billboard is a billboard that creates digital images that are changed by a computer every few seconds. Digital billboards are primarily used for advertising. The ad will display anywhere from 6-10 seconds at a time and it will rotate with other ads on that same board.

Coca-Cola is now operating its own digital billboard network to promote their product, made up of 29 digital faces in 20 cities. It is renting the actual space from outdoor media owners, but it has acquired the billboards themselves for an estimated cost of $250,000 apiece.

Interpreting Culture’s Consequences in Café Societies

Interpreting Culture’s Consequences in Café Societies

Select an international cafe chain (e.g., Gloria Jeans or Starbucks). Identify how the chain has utilised Hofstede’s (2001) cultural framework to interpret and adapt its marketing and management strategies overseas

Starbucks is known as an international café chain. They operate coffee chain business and output that based in United State. Starbuck is now the largest coffee chain company in the world, with a record number of 15,011 branches in 42 countries. Starbucks sells coffee, espresso-based drinks, hot and cold beverages, snacks, and coffee mugs. (Starbucks Corporation). It has used Hofstede’s cultural framework to interpret and adapt its marketing and management strategies overseas. Hofstede’s model includes five key dimensions of understanding different cultures such as power distance, individualism, masculinity, uncertainty avoidance, and long term orientation.

First of all, Starbucks has low power distance. It believes in the equality between the employer and employees. Starbucks’s Superiors treat subordinates with respect, do not pull rank and entrusted with important assignments [1].In addition, Starbucks’s Superiors have willingness to accept feedback or advice from their subordinates. Thus , they can communicate with each other in a well relationship and narrow down the power distance.

(California Fitness) Marketing Mix Strategy

8.0. Marketing Mix Strategy

8.1 Price

California Fitness has currently implemented product line pricing for its one product with various class distinctions. S$408 is the price implied on its gold class membership and S$648 for its platinum membership in Singapore. Additionally, it has also surprisingly introduced a price penetration strategy of S$49 membership program in 2011. Hence, it is feasible strategy in Indonesia of implying both price techniques as its price penetration can be used to attract and increase awareness amongst different target markets to lure or persuade them to join. Once they have joined to California Fitness, the product line pricing strategy may be adopted for special price with requirements of joining California Fitness through its S$49 program. Of course, in Indonesia, it shall lower its price due to the lower GDP per capita for Indonesia population. Furthermore, dual pricing can be implemented here in Indonesia whereby it is cheaper to apply a full access membership in Indonesia and this should include overseas California Fitness access as well. Thus, students from Indonesia can apply full access membership which can be used when they study overseas in Singapore with cheaper monthly fees due to different currencies. Therefore, it can also be considered as price discrimination.

(California Fitness) Segmentation Profile

7.0. Segmentation Profile

	Generation Y	Generation X
Geographic	City area	City area
Demographics Description
Age	23-30	31-40
Gender	Male / Female	Male / Female
Occupation	Majority white collar	Majority white collar
Income range (Monthly)	> 5 million Rupiah	> 8 million Rupiah
Purchasing Power	Medium - High	High
Psychographics
Benefit Sought	Seek Leisure, self-image, status	Seek superior service quality
VALS	Experiences/Achievers	Innovators
Lifestyle	Early adopters	Brand loyalist
	Opinion Leaders	Opinion Leaders
Size	30%	70%

(California fitness) SWOT Analysis

SWOT Analysis

Strengths

-          Well known and the leading fitness centre chain in Asia

-          World-class exercise equipment

-          The one which have a Group X classes

-          Personal trainers with internationally certified

-          24 hour Fitness Worldwide

-          Have a good partnering with a team of fitness superstars (Andre Agassi, Lance Armstrong, Jackie Chan, Earvin “Magic” Johnson, Shaquille O'Neal and Derek Jeter)

(California Fitness) Environmental analysis

4. Environmental analysis

To expand to Indonesia, California should know general background of the Indonesia which will be more discussed in PASTEL analysis. Indonesia is one of the largest countries in the South-Asia basis, which consists of more than 17,500 islands; 6000 islands are inhabited; 1000 of which are permanently settled, and the large islands consists of coastal plains with mountainous interiors (Bureau of East Asian and Pacific Affairs 2010). Jakarta is the capital of Indonesia; however, Bali Island is more famous in tourism. It has 2 seasons; rainy season and dry season. Susilo Bambang Yudhono and Boediono, who won the election with such a significantly plurality – 60.6%, has been selected as president and vice-president of Indonesia. Indonesia gained its independence on 17^th August 1945 from Japan, and bahasa Indonesia is the official language in Indonesia. Its population is approximately 240.3 million and 88% of Indonesians population is Muslim (The World Fact book 2011)

(California Fitness) background of the company, corporate vision, mission statement and corporate goals

3.0. Company Background

California Fitness is a wholly owned subsidiary of 24 Hour Fitness Worldwide which has a little fewer than 400 clubs serving more than 3 million members. The first California Fitness club was established in 1996 in the business district of Hong Kong. Currently, there are 16 clubs, after closures in four Asian countries, some abruptly breaking member contracts without reimbursements. California Fitness offers members the opportunity to experience the most innovative and largest number of Group exercise classes in the region as well as providing highly professional Personal Training from the largest group of Personal Trainers in the region. In addition to the cardio & resistance equipment, members can enjoy sauna & steam facilities, plus free internet via the in-club kiosks.

(MGM Mirage) Marketing Mix Strategy

7.RECOMMENDATION FOR MARKETING MIX STRATEGY

7.1 Product:

According to (Chan, Wong 2006) customers’ behavior on choosing hotel is affected by good hotel products and services. Therefore, MGM Mirage should provide the best products as well as services to meet or exceed customers’ expectations, so as to attract more customers. MGM Mirage is highly advised to enhance the product element in their marketing mix strategy. However, MGM Mirage’s products and services should be consistently offered in Singapore and Las Vegas. So that MGM Mirage can easily create a consistent image in customers’ mind (e.g. developing their casinos and hotels according to themes).
For meetings/conventions, MGM Mirage should accommodate delegates with elegant meeting rooms. Each room need to be fully equipped with speakerphones, data ports, plus built-in screens, wireless access, projectors and audiovisual equipment, which will allow for convenience. It will also be viable to provide event rooms so that customers are able to hold their events there (e.g. wedding parties).

( MGM Mirage) SEGMENTATION PROFILE

6.1. Segmentation Based On Geographic And Demographics

Based on demographics and geographic in Singapore, the total number of potential spending by customers in the segment is divided based on the advantageous location of Singapore to the average income of people.

Due to significant investment in marketing and sales activities, this market segment requires individuals spending worth and efforts. Thanks to optimum location in the middle of Southeast Asia and with many access points, Singapore is the place which attracts extremely high volume tourists from all over the world.
The main targets of MGM Mirage are business people, as well as ordinary citizens with incomes of more than $50,000 USD per year whom likes attentive care and luxury and others with an income of $20,000 USD - $50,000 USD per year. With the current growth in Singapore and Asia, the number of potential customers in this segment will be growing.

(MGM Mirage) SWOT Analysis

Strengths


§  Reputable brand: MGM Mirage is one of the world's leading and most respected companies with significant holdings in gaming, hospitality and entertainment. (MGM Mirage n.d.)

§  Successful business model:  MGM Mirage owns and operates 16 properties located in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, New Jersey, Illinois and Macau. CityCenter, an unprecedented urban metropolis on the Las Vegas Strip scheduled to open in late 2009, (MGM Mirage n.d.)

§  Service Quality Assurance

§  Strict confidentiality of client profile. Convenience, – Instant bookings online 

(MGM MIRAGE) Environmental analysis of the industry

3.  MACROENVIORNMENT ANALYSIS In Singapore:

3.1. Political and Legal Environment

Singapore practices a high level of transparency in the local business environment. Its stable political structure with parliamentary democracy and a well-established judicial system have attracted global investors to setup companies in Singapore (Singapore Company Setup Benefits n.d.[i]) This is evident by the many international accolades Singapore has won.

3.1.1.      Singapore International Accolades

Singapore has been awarded and ranked by many international agencies for its political climate, competent government and efficient business legislation.  The below are the some of the awards which Singapore has won as listed by the Economic Development of Singapore (n.d.)[ii]:

(MGM MIRAGE) Background of the company, Corporate vision.mission and corporate goals

1.BACKGROUND DESCRIPTION OF MGM MIRAGE

MGM Mirage is a company based in Paradise, Nevada, USA; and the owner of 16 hotels (resorts) and casinos all around the world, including countries like: Macau China, United Arab Emirates, and of course USA itself, in states like Las Vegas, Nevada, Mississippi, Illinois, Michigan and New Jersey, Company Overview (2010).

MGM Mirage develops their hotels and casinos according to different themes.  More popular hotels and casinos by MGM Mirage include (pictures shown on cover page):  The Bellagio (Italian theme), Mandalay Bay (Southeast Asian theme), The Mirage (French Polynesia theme), MGM Grand Detroit (Art Deco theme) and Luxor Las Vegas (Ancient Thebes theme), Who In The World Are We, (2010).
Apart from having nicely decorated guest rooms and casinos, there are also many facilities/amenities for dining, nightlife, entertainment, corporate, sporting, relaxation and shopping activities. These include: restaurants, pubs, theatres, conference/event halls, exhibition centers, golf courses, swimming pools, hot tubs, spa outlets and retail outlets, December, (2009).

(Mother) Marketing Mix Strategies

(Mother) Marketing Mix Strategies

7. Marketing Mix Strategies

7.1 Current marketing mix

7.1.1 Current Product

Mother by Coca-Cola is an energy drink, is preferred by consumers who need the caffeine kicks from a can, instead of a cup of coffee at all times of the day (Robinson 2009). Mother’s formula with Caffeine, Taurine and Guarana, it will give you a 'Mother of an Energy Kick'. The benefits for the consumer include quenching their thirst, satisfying their inner energy and getting instant satisfaction for their basic physiological needs (Maslow's Hierarchy of needs 2010). It is available in 4 flavours, Original, Orange Surge, Low Carb and Lemon Bite, in a 355ml or a 500ml Can. “Mother of a mixer”, is a 250ml Can sold to the bars and clubs, and the Extra Energy Big Shot Mother for those who needs extra energy. Mother was designed with, “Heaps of Energy” (I’m Thirsty as a Mother Inferno! n.d.) across the top of the Can. It also differs itself from the previous launch, with the new red and black gothic style, and similar tattooed design name that gives MOTHER an “all-natural energy drink with attitude” .MOTHER also launched a take-home pack such as 4x500mL, 6x500mL and 6x300mL and 15x375mL (MOTHER Products n.d.). The time spent on searching for Mother is short as it is sold in the supermarkets together with the other Caffeinated drinks, or individually at the Coca cola vending machines and convenience stores. Some consumers may use a substitute product if MOTHER cannot be purchase if they are not loyal to the product, as it tastes similar to Redbull. However, it stands out from the other energy drinks such as V, Monster and Redbull with high caffeine content of 32mg per litre (Caffeine, Coffee, Tea, Cola & Energy Drinks n.d.).

(Mother) Segmentation profile

(Mother) Segmentation profile

6.  Segmentation profile

Market segmentation is portions of the overall market that are different from one another and it consists of consumers with similar characteristics and needs (Adam and Armstrong 2008). A successful organisation will understand that they cannot sell everything to everybody therefore marketing segmentation implies on the understanding of consumers and satisfy their needs better than the competition(market segmentation - why segment markets? n.d.). The segmentation profile of Mother energy drink will be based on Singapore such as geographical segmentation, demographic segmentation, psychographic segmentation as well as behavioural segmentation.

6.1 Geographical traits

Singapore was considered the smallest country located in Southeast Asia. It has a dispersed population where people from different places came to live in together as a nation. Singapore consists of 59 small islands and 1 major island. It has a total land area of 704 km square and a 193km of coastline. It has a high urban density where tall buildings are located everywhere. Its population is 4987600. Moreover, The climate of Singapore is tropical, being hot and humid all year round with only a slight variation in temperature between winter and summer (Singapore Facts n.d.). Thus, having the energy drink around, it cools their throat as well as providing the people with energy that is needed for some parts of the state, which requires them to work late.

(Mother) SWOT Analysis

(Mother) SWOT Analysis

4. SWOT Analysis

In this section, the internal strengths and weaknesses of Mother energy drink and several opportunities and threats will be discuss. Internal analysis is one of an analysis strategy to provide important information to a company to well understand its skills and resources as well as the performance of the company while opportunities and threat can help the company to have better ideas on targeting into another country (Bohlander and Snell 2009).

4.1 Strength

Mother energy drink has been extremely successful in Australia with its worth value of 500ml compare to Redbull which is a lot cheaper. Mother has also altered to variety of flavor such as mother launch in 2009, an orange flavored variation with 5% juice and in 2010 they release lemon flavor (Convenience & Impulse Retailing 2010). Those flavorings taste where usually other brands like Redbull or V energy drink don’t offer. For now, the company is a big player among the larger manufactures of energy drinks in Australia. They have great understanding of their target market and people taste which have developed tools to get their attention.

(Mother) Environmental analysis of the industry

(Mother) Environmental analysis of the industry

3. Environment Analysis in Singapore

To expand mother energy drink to Singapore, Mother is essential to know general background of the Singapore which will be discussed more detail in PESTEL. The republic of Singapore is an independent nation in Southeast Asia, situated off the tip of the Malay Peninsula and connected Malaysia by causeway. Formerly a British crown colony and then part of the Fedearion of Malaysia, it became independent in 1965. Singapore is a densely populated and wealthy nation whose people experience one of the highest standards of living in Asia. Singapore Island accounts for 93% of the total land area of 687km and the remaining 7% is composed of 50 small islets. Since Singapore lies almost on the equator, its temperature is distributed quite evenly throughout the year. English is the main language of business, education and government, is used by more than 25% of the adult population.  Singapore is considered as multiracial country which consist of approximately 76.8% Chinese, 13.9% Malay, 7.9% Indian and other races (The World Factbook 2011).

3.1 Political

Singapore is a republic, with a parliamentary system of government and an elected President as the Head of State. The Singapore Parliament has a single house, which is elected by general election every five years. The Parliament and the President of Singapore are known as the Legislature. Parliament first sat on 8 December 1965, with the first general election on 13 April 1968(Singapore country brief 2010).