Marketing Plan: YEOS Asian Drinks

1. EXECUTIVE SUMMARY
The following report presents the marketing strategy of YEOS Asian Drink.

Yeo Hiap Seng was established in the 1930s in Singapore and has become well
known as a large company that produces a wide range of products from
beverages, culinary sauces and pastes to canned food. YEOS is seen as a pioneer
and innovator in the beverage category since they became the first to introduce
bottled chrysanthemum tea and soya bean milk to the market in the 1950s and
received numerous winning awards in international competitions (Yeo Hiap Seng
Ltd, 2012).
Despite many years of history in the industry, YEOS is facing threats from strong
competitors such as Seasons, Marigold, Allswell and Asian Story. These
competitor brands offer products of wider variety at a comparable price as
YEOS. Its inability to capture the younger market causes the company to lose
significant market shares and revenues.

With increasing population in Singapore and Generation Y being a domain

market, YEOS has decided to focus its target market on the younger generation
and the health conscious consumers. The improvisation of various healthier Asian
drinks with improved flavor and the incorporation of fruit flavor into the Asian
drinks will be used to attract the new crowd.

The objectives of the healthier Asian drinks,

Create brand new image for YEOS Asian drinks

Highly accepted among the consumers of different races and nationalities

Widely sold in various road shows, supermarkets and food fairs

Marketing Plan: YEOS Asian Drinks

2. SITUATION ANALYSIS
YEOS has a high awareness amongst the older generation of consumers due to its
long tradition in Singapore (Corporate-Overview, 2012). Its products have been
well received and strongly supported by Generation X since the first introduction
in Singapore market. Over the time, the company recognized the new target
market as younger, more brand awareness and always looking forward to
freshness (Lee, 2009). Thus, the main marketing objective is to target the
younger consumers and to instill the same brand values that their parents have.
This target group includes teenagers, young working adults and young families
who are in the beginning of their household.

2.1. Market Summary

Geographic
YEOS immediate market is Singapore with a population of 5.5 million
(Population, 2011). With the increasing trend of globalization YEOS has
expanded its business to other Asian countries like Malaysia, China, Vietnam
as well as other regional markets which are outside of Asia such as United
Kingdom, United States of America, Canada and Africa with the total
targeted population of approximately 120 million consumers (Soft drinks
international, 2009).

Demographics
Young consumers including students, young working adults and young
families between the age of 18 to 28 are the main target market for the
marketing campaign of YEOS in Singapore (OFSA NATIONS, 2010).
YEOS drinks must also take into consideration that Singapore is a multiracial society to have a suitable strategy to keep their position in the business
market.

Psychographics
YEOS currently focus on young active generation with high purchasing
power and trendy mindset. This group of people seeks for new varieties,
experience and stylish products that allow them to have a wider social

Marketing Plan: YEOS Asian Drinks

network (OFSA NATIONS, 2010). Besides that, YEOS also targets on health
conscious consumers who prefer healthier food/beverages choices.

Behavioral
YEOS is targeting at consumers who enjoy gathering with their relatives or
colleagues on occasions (Chinese Festivals, 2008) such as birthday parties,
festivals or meetings. At the same time, YEOS also aims to attract potential
customers by offering variety of products.

Market Needs
YEOS is providing a wide range of canned foods and beverages. The
company seeks to fulfill the following benefits that are important to its
customers:

Competitive price: Although the drink is inexpensive, customers will still

seek for comparable product of a cheaper cost. Consumers will search for
information and evaluate the alternatives.

Flavors: YEOS is working hard to introduce new flavors to satisfy

customers need. As nowadays customers would like to try out new things
and like to have more choices.

Quality: Customers are not only concern of the price but also the quality.
A differential threshold or deterioration in the quality would greatly affect
the customers perception of the brand and product. One of YEOS
strength is to maintain its quality of production and offer a healthier range
of products such as less sugar to customize to consumer preference.

Market Trends
Singaporeans are getting more health-conscious due to efforts made by the
government to promote a healthier lifestyle and the general concern raised by
the public towards health and wellness (Singaporeans are health conscious,
2010). Consumers are more educated and with the invasion of Internet in
every household, people are on the lookout for every possible means and
gadget to maintain vitality, preventive medications and activities to remain a
healthy lifestyle.

Marketing Plan: YEOS Asian Drinks

Thus, YEOS has had to keep up with this trend by coming up with new,
healthier incarnations of their drinks with more natural, fresh and healthy
ingredients.

Consumers especially the young are always attracted by fresh and innovative
products and are very welcoming towards new ideas or new product
innovation. To YEOS, product innovation has always been a key focus since
they were the first company in the world to package its Asian drinks in Tetra
Brik aseptic containers using UHT process (Corporate- History and Heritage,
2012). Creating visible innovation would make YEOS competitors products
date faster, re-segment and gain benefit by differentiating YEOS from its
main competitors.

Market Growth
According to the National Statistical Authority of Singapore (2010), there is
an increase in population for both Singapore Permanent-Residents (PR) and
the non-residents (excluding tourists and visitors since 2000).

The statistics for PR and the non-residents in 2000 and 2010 are as follow:
Year

PR

Non-residents

Growth (%)

2000

287, 500

754, 000

162.26

2010

541, 000

1, 305, 000

141.22

Country

Year 2000

Year 2010

Growth (%)

Malaysia

305, 400

386, 000

26.39

China, Hong Kong & Macau

155, 000

175, 200

13.03

Indonesia

32, 500

54, 400

67.38

Other Asian Countries

22,400

90, 100

302.23

Among the PRs and non-residents, there is an increase of Asians living in

Singapore. As such there is a market growth for Asians, likewise for Asian
drinks.

Marketing Plan: YEOS Asian Drinks

2.2. Competition
YEOS is facing very strong competitors in the market for Asian Drinks. One
of the main competitors, Seasons (F&N) is offering similar products of a
comparable price (Fraser and Neave Ltd, 2012). Although Seasons has
lesser variety of Asian Drinks as compared to YEOS, it offers a wide range
of Fruit Teas to target the increasing market of Generation-Y (Gen-Y) while
YEOS hardly have any diversification from Asian Drinks (Yeo Hiap Seng
Ltd, 2012). This set YEOS at its disadvantage as Asian Drinks may be good
enough to satisfy the older generations, it may not be as appealing to the
younger generations. The fusion of fruit teas adds appeal and may better
arouse the interest of the consumers.

For the other competitors such as Marigold add on pressure indirectly as its
product focus are milk and fruit juices. It has yet to become direct
competitors as most consumers recognizes the brand for milk and fruit juices
more than for Asian drinks or other beverages (Marigold, 2010).

2.3. Product Offering

YEOS has entered the food and beverage market for a long time and has
successfully launched several products. Their current achievement is No. 1 in
Soy Milk Category, No. 1 in Tea Drink Category, No. 1 in Canned Meat
Range and their future targets are No.1 in Instant Noodle Category and No. 1
in Canned Food Category (Advameg, 2012).

Drink: YEOS offers both canned drinks and Tetra Brik drinks to cater to
consumers different purposes and occasions. YEOS Asian drink isa line
of beverage products of local favorites. The flavors in the line include
Chrysanthemum Tea, Chrysanthemum Tea with Luo Han Guo, Winter
Melon Tea, Lemon Barley Drink, Lychee, Grass Jelly and Sugar Cane.
The product line also includes beverages targeted at different racial groups
such as Longan Red Date for the Chinese and Bandung Rose Drink for the
Malays. They also introduced healthier options such as not so sweet and
less sugar.

Marketing Plan: YEOS Asian Drinks

Food: Beside beverages, YEOS also offers wide range of canned foods. In
1950s, YEOS launched its first canned product that is the canned chicken
curry. By early 1970s, the company introduced their first instant noodle,
chilli, tomato and oyster sauce (Advameg, 2012). Some of its other
products are beef curry, satay chicken, mutton curry with potatoes, lamb
curry, baked bean in tomato sauce, cream style sweet corn.

2.4. SWOT Analysis

Internal Environment
Using a Marketing Memo: Checklist for Performing Strengths/Weakness
Analysis", the strengths and weaknesses are extracted as follow:

Strengths

Weaknesses

Marketing

Marketing

Company reputation

Outdated image

Market share

Brand confusion

Product variety and quality

Distribution effectiveness

Pricing effectiveness

Innovation effectiveness

Geographical coverage

Finance

Financial stability

Manufacturing

Capacity

Ability to produce on time

Organization

Visionary, capable leadership

Marketing Plan: YEOS Asian Drinks

Strengths
YEOs was established in the early 1930s and have successfully built trust and
attained customers loyalty, especially from the Baby Boomers that grew up
with the brand. As compared to YEOs competitors, it was a step ahead in
gaining markets attention and familiarity of its products.
Since its 1969 listing on the Stock Exchange, YEOs has commanded a
substantial share of the local drinks market (Far East Organization, 1995). In
2011, the food and beverages division reported revenue of S$87.49 million for
the quarter ended June 30, an increase of 5.6 per cent year-on-year (Mesenas,
CNA, 2011).
YEOs produces more than 200 varieties of products such as traditional Asian
drinks, fruit juices, soya milk, jelly drinks, canned food, Asian sauces and
instant noodles. Apart from being recognized as the market leader in noncarbonated drinks in Singapore, Malaysia and the region, YEOs is also the
bottler and distributor for international brands such as Pepsi/Diet Pepsi, 7-up,
Mountain Dew, Miranda and Evervess. It also distributes for Evian and Volvic
mineral water in Singapore (Far East Organization, 1995).
YEOs has a strong position in its product category with its wide distribution
network in places such as major supermarkets, convenience stores, vending
machines and petrol kiosks, which allowed YEOs to reach its consumers
geographically and in turn increase brand awareness.
One of YEOs competitive advantages is that it not only targets the local
market, it also target the consumers abroad by making inroads to countries
such as the US, Canada, Europe, Australia, New Zealand, various countries in
Asia and even the Pacific Islands with its ready-to-drink drinks and Asian
sauces and pastes for cooking.

Marketing Plan: YEOS Asian Drinks

Weaknesses
Young people have the perception that teas are mostly appreciated by older
people and are consumed to ease discomfort. The younger generation tends to
be very preoccupied with what other people think of their appearance. When
young consumers enter a super market and are faced with a wide variety of
beverages, they will very likely select a can of soft drink or a bottle of fruit
juice to suit their young and trendy image, instead of an Asian traditional tea.

Having a wide distribution channel is strength; however it can also be a

weakness. YEOs wide varieties of ready-to-drink teas are displayed next to its
competitors, who also have a wide variety of ready-to-drink teas. This may
create confusion for the consumers.

External Environment
The follow is a list of the marketing opportunities that Yeos can profitably
satisfy and the threats that will lower sales or profit.
Opportunities
O

Threats

Broaden product offerings

Competitive market

Cost-cutting

Rising cost of raw materials

Revamp sales and distribution

system

Online Purchasing System

Opportunities
As the demand for a healthier lifestyle increases in Singapore, more people are
looking towards organic food products as a healthier choice of living. In 2005,
YEOs team up with a leading American organic and natural food products
company, Hain Celestial Group, to jointly develop business opportunities in
the organic and food industry. The partnership provides access to new
distribution channels as well as open new and different product markets,
thereby broadening each others global footprint and product offerings (Far
East Organization, 1995).

Marketing Plan: YEOS Asian Drinks

In 2010, Yeo Hiap Seng Malaysia Group embarked on a plant consolidation

exercise to streamline its five factories to three factories, so as to achieve
better efficiency and lower operating cost. This exercise expects to realize
significant annual savings when the exercise is duly completed by 2012. As of
the fourth quarter of 2011, there has been a significant growth in net profit
from the previous year (Lim, 2012).

Also in the same year, Yeo Hiap Seng Malaysia Group introduced the use of
computerized handheld devices to process sales orders, and implemented a
distributor management system to enhance visibility in distributors sales,
pricing and promotional information. This will help improve the efficiency of
its employees (Lim, 2012).

In our modern society, going shopping for groceries once a week may be a
dreaded task to some. Especially when one have to do groceries shopping for
occasions like Chinese New Year, they have to lug many cartons of packet
drinks or canned drinks home for entertaining of guests. YEOs can come up
with an online purchasing system where consumers can mix and match
different types of beverages through YEOs purchasing system on its website
and have it delivered to their homes. This will save a lot of time for the
consumers.

Threats
Although YEOs is one of the oldest and most recognized brands in Singapore
for its beverages, it is now facing strong competitors in the market. They
include Seasons, Marigold, Nutritea, Allswell, Asian Story and Heaven &
Earth that produces a wide range of ready-to-drink teas too. Some of these
brands have more attractive packaging so as to attract the younger generation.
In order to keep up with its competitors and attract the targeted market, YEOs
need to keep its packaging Hip and Relevant to appeal to the younger
market.

Marketing Plan: YEOS Asian Drinks

In a recent report, YEOs said that the next 12 months could see the Food and
Beverage division's margins "squeezed because raw material prices and energy
costs will continue to rise while selling prices will continue to be
competitive. The rising cost of raw materials to produce the beverages will
lead to an increase in the selling prices of the beverages (Mesenas, CNA,
2011).

2.5. Critical Issues

The report has analyzed YEOS as a company and its marketplace by using
the internal and external knowledge. To achieve the success, YEOS need to
effectively manage critical issues to,

Clearly identify their target markets in order to satisfy the needs of

consumers.

Use promotional tools like personal selling, participation in the trade

shows or events such as School Open House, Music Concerts or IT Shows
and advertising on popular newspaper and magazines like Today, Straight
Times and i-Weekly.

Build a good relationship with customers by updating them with the latest
programs about upcoming products or companys events to motivate them
in making purchase.

Develop the next generation of product with more interesting features

towards customers.

Apply advanced technologies in manufacturing processes in order to lower

the operating costs so that YEOS would have a more competitive price as
compared to its competitors in the market.

Create a more creative, attractive, brand new, lively and youthful image to
target more young consumers.

Continue to build brand awareness that will drive customers to existing

products as well as ease the marketing efforts of future products.

10

Marketing Plan: YEOS Asian Drinks

3. MARKETING STRATEGY
The main focus of YEOS is to continue their growth in market shares with their
targeted market; mainly the older generation (baby boomers, generation-x).
The key to marketing strategy is to focus on increasing awareness among the
younger and health conscious consumers by improvising current products and
developing new product to cater to their needs. Advertisement, marketing
campaigns and on-going promotions are tools to create a learning process for the
consumers about products information and product offerings.

3.1. Mission
YEOS mission is to expand its role in the Food & Beverage industry by
improving its quality as well as innovating its packaging to bring the best
product to customers. With the success of those previous products, YEOS is
now planning to improve and come up with new product that will hit the
market. Besides, with its wide distribution network in Asians drink, the
company can diversify and focus more on targeting the market in Western
countries.
YEOS understands the need for products that offers a better value and high
quality than its competitors. The mission of YEOS does not only in-line with
the venture, but also high chance of successes.

3.2. Marketing Objectives

For a company to target its market effectively, it needs to set specific,
measurable, achievable, realistic and time specific market objectives. In order
for YEOs to gain more market share in the beverage market, it emphasizes
on the taste, quality, and packaging of its beverages and also its availability to
anyone at anytime.
Below are some of the objectives that YEOs has to achieve in their
upcoming market:

Earn significant market share in the next five years by putting more
marketing effort to target the younger generations in terms of more attractive

11

Marketing Plan: YEOS Asian Drinks

marketing advertisements and promotions and more events to create brand

awareness.

To make YEOs beverages much more available than it is now by

implementing an Online Purchasing System where busy customers can
purchase YEOs product online and have it delivered to their door steps. This
new system is targeted to increase the companys sales profit by at least 20%
after it is launched.

Apart from emphasizing on the younger generation, it should also focus on

strengthening the relationships it has with the current customers.

3.3. Financial Objectives

According to the studies, Singaporeans and people living in Singapore are in
high demand for Asian drinks due to their concern of healthy food and also
the traditional taste compared to other products of soft drinks (Asian Dessert
Recipes, 2010). The figures indicated that Asian drinks have become a
popular choice for at least 65% of the populations. With such figures, YEOS
might implement new objectives in Singapore market:

Increase revenue for products of Asian drinks by 10% annually through

the high demand.

Gain 15% more of the market share for Asian drinks by the end of
December 2014.

Increase cash flows by 10% by downsizing the outdated, unfavorable

products to develop fresh, innovative and exciting products to satisfy the
market trends.

Reduce operation costs by 15% and increase productivity by applying

latest technologies into producing processes.

3.4. Target Markets

The population in Singapore of slightly less than 2 million people in 1960s,
when YEOs first diversified its range of Asian Teas, has now increased
tremendously to 5 million over people. As compared to the elderly population
aged 65 years old and above, the youth population of those aged between 1529 years is 11.2 per cent more (Statistic Singapore, 2011). Those between the

12

Marketing Plan: YEOS Asian Drinks

ages of 25-29 years of age are the most economically active (Statistic
Singapore, 2012), making them the target emphasis of YEOs.

The younger population is becoming more exposed to sports and is becoming

more health conscious. In order for YEOs to not fall behind in the trend, it
launched the H-Two-O isotonic drinks and have a co-title sponsorship with S.
League with football icons, Lionel Lewis and Isa Halim, as the brand
ambassadors. It also organizes events like the H-Two-O Ultimate Football
Champions League and H-Two-O Ultimate Dance to encourage youths to
keep active and healthy, at the same time increase its product awareness to
the youths (Yeo Hiap Seng Limited, 2010).
Apart from these events and campaigns, YEOs gave its Justea range of teas
a facelift by giving it a more vibrant packaging and a brand new logo to
appeal to the younger crowd who are inclined towards a healthier lifestyle
(Yeo Hiap Seng Limited, 2010). These are some of the marketing efforts
YEOs have made in the recent years to appeal to its target market.

3.5. Positioning

YEOS has been offering a wide range of Asian drinks and is known for its
good product quality and distinctive traditional taste at an affordable price. In
todays market, it is shown that there is an increase in health conscious
consumers (Singaporeans are health conscious, 2010). Hence, YEOS will
position itself as a quality tea manufacturer that offers variety of healthier
drink choices with improved taste. For instance, incorporating fruit flavor into
13

Marketing Plan: YEOS Asian Drinks

the Asian drinks. On the other hand, YEOS can also introduce a healthy
range of organic tea/ soy drink.
In the mind of consumer, YEOS Asian drinks will be an up-market product
of a preferred brand among its competitors and is strongly accepted among
the Singaporeans and expatriates. In order to move towards such positioning,
YEOS has to maintain its current awards and also improve the award in their
different specification, regardless it to be the best packaging, high
innovativeness or high quality.

3.6. Marketing Mix

Product:
Since YEOS has already established not-so-sweet and less-sugar
Chrysanthemum Tea, the company can expand the line of healthier choices for
the rest of the Asian drinks. In order to cater to the health conscious group of
consumers, YEOS can also develop a new range of healthier products such as
organic Asian drinks.

In addition to raise the attention among the younger consumers, product

modification such as adding fruit flavors to the Asian drinks can be resorted.
The example of Apple Chrysanthemum Tea is more appealing and unusual as
compared to the traditional Chrysanthemum Tea. This may intrigue the
younger consumers more effectively as they seek for excitement and creativity
in products.

Price:
Being the leader in Asian drinks market in Singapore during the past 15 years
(Datamonitor, 2012), YEOs set the price for range of products based on the
value that create for consumers and the company also looks at factors
consumers consider when coming up with a value assessment. By seeing the
criteria the consumers use in value judgment such as taste, packaging and
advertising, YEOS can get a better concept of what the consumers see as
most important and the motivations for purchase of the consumers. The

14

Marketing Plan: YEOS Asian Drinks

pricing YEOS set for the range of Asian drinks is generally consistent
throughout the years: S$1.00 1.90 per product (NTUC FairPrice, 2012),
except for festive periods such as Chinese New Year where demand for its
products will increase. Being a fast moving consumer good (FMCG), YEOS
must not stray too much from competitors prices so as to maintain their
competitiveness in the market.

Place:
Apart from selling the products in various supermarkets and coffee shops,
YEOS can also have their own outlets that carry all their products including
food (sauce, paste, condiment, canned food, instant noodles and spread) and
beverages. This aids in the convenience of the consumers if they looking to
purchase YEOS product in specific. The outlet also set as a station to
encourage tourist purchase of the local products (e.g. curry paste).

Promotion:
Sales Promotion
Through the introduction of new products, YEOS can organize roadshows to
increase consumers exposure and awareness. Promotions such as price
reduction, free gifts and product sampling can also be given to increase the
effectiveness of the various events.

Societal marketing concept can also be adopted to improve society as a whole

while also fulfilling the objectives of the organization. For instance during
festive seasons, YEOS can propose to donate part of their sales or a carton of
Asian drinks to the needy, for every carton bought by the consumers.

Advertising
YEOS advertising strategy aims to elevate the company to Top-Of-Mind
Awareness and build customers affection towards the brand. Current
advertising strategy for YEOS covers multiple platforms. Advertisements are
also screened on popular local television channels during prime time (7-9pm)
(see Appendix 1A). Advertisements can also be found on billboards in

15

Marketing Plan: YEOS Asian Drinks

selected MRT stations where ridership is high (see Appendix 1B) Print
advertisements are also featured in high-readership newspapers such as Shin
Min Daily News (see Appendix 1C) as well as in popular magazines like iWeekly. Being active in social media marketing has become essential to reach
out to the target audience who are IT savvy and spend a large portion of their
time on the Internet.

Information on product and various promotions and campaign videos will be

available on the official campaign website. The Your YEOS Moment
contest will be run entirely through the website. The website address will be
heavily promoted by piggybacking on all of the promotion materials that
will be distributed to consumers, physically or electronically.

A Facebook page for the campaign will be created to establish a platform for
two-way communication with target audience. Upcoming promotions and
contest info will be communicated on the page. Customers can also provide
feedback by leaving their comments on the Facebook page (refer to Appendix
1D for simulated Facebook page).

Public Relations
YEOS has a practice of strong corporate social responsibility in order not
only to relate constructively to customers, suppliers and dealers but also relate
to a large number of interested publics. Events are often organized to promote
social cohesion and responsibility. These activities set up a communication
channel between the company and consumers, as well as build up YEOS
corporate image.
In 2008, YEOS tried to attract new customers in the target segment through
an event called the Modern Mixes Launch Party (Soft drink international,
2010). Consumers were invited to an event where Asian drinks are mixed with
alcoholic beverages. However, this event could have been harming to the
brand, as it did not fit with the brands image of being traditional and nostalgic
even amongst the young target market.

16

Marketing Plan: YEOS Asian Drinks

In the near future, to have more influence on targeted group as young people
and build interest in product categories, YEOS target is to be one of the main
sponsors for Polytechnic Open House and University Open House (YEOS,
2012). The participants of the open house are expected to be students aged
from 17 to early 20s. YEOS hoped to raise interest in the product in the
target market before the television commercial airs in the following week.
Bottles or cans of Asian drinks will be given free to the participants during
the open house of Polytechnics and Universities. Together with the campaign
of Open House at schools in Singapore, YEOS will hold an event Chevron
Happy Time @ CBD road show e at Chevron House located in the Central
Business District. This event targets young working adults, to expose to them
the new attitudes and concepts associated with the drink as well as direct
them to visit the campaign website for information on future promotions and
contests.

4. FINANCIAL PROJECTIONS
4.1. Sales Forecast
In 2011, YEOS Singapore reported an estimated total sale of S$399.9
million in the fiscal year ended December, an increase of 0.6% compared to
2010. The net profit was S$26.8 million in fiscal 2011, as compared to the net
loss of $19.4 million in 2010 (YEOS, 2012). The sales of YEOS Asian
drinks in Singapore are estimated to be approximately S$10.4 million.

According to Department of Statistics Singapore (2012), the population of

Singapore is around 5.6 million till end of 2011 and the number is about to
increase dramatically to 6.1 million due to a large scale of immigrants to
Singapore for working and studying. Asian drinks have been a regular drink
to Singaporeans and become more popular to foreigners living in Singapore
due to its taste and convenience. There were approximately 85% of
populations (5.1 million) in Singapore consuming Asian drinks at least once
in 2011, according to the statistics of Datamonitor (2012). To be a leader in
the Asian drinks market, YEOS gaining 40% of market share, compared to
other main competitors like Pokka and Seasons (Singapore: Food, beverages
and tobacco background, 2009). The projected market share YEOS
17

Marketing Plan: YEOS Asian Drinks

management desire to target in year of 2012 will be 45% (2.3 million) of the
5 million consumers purchasing Asian drinks. However, the economists
reported that a worldwide economic crisis would happen again in 2012 that
would have significant impact on consumers spending, including Singapore
(Cheow, 2012). Therefore, with plans for Singapore market this year in case
of recessions, YEOS projected sales of Asian drinks are around S$13
million, which is S$2.6 million more than 2011.

By the year 2013, when the worldwide recovers, the buying demand will
increase and consumers might spend more for innovative and attractive
products. Thus, with bigger plans, YEOS expect the sales for Asian drinks in
Singapore market are S$18 million.

4.2 Expenses Forecast

According to YEOS, approximately S$2.5 million were spent for advertising
and marketing the products of Asian drinks in Singapore in 2011 which
occupied 4.16% of total sales. The main reasons YEOS spent a big amount
of money for advertising and marketing Asian drinks products is because they
have been targeting to a new market of young active generations who have
little knowledge about YEOS background and might be confused by other
brands with the same products in the market. Moreover, YEOS wanted to
create a new image for the brand to be more creative, fashionable and
dynamic to replace the terms of old-fashion, dull defined by young
consumers (Green Drinks Singapore, 2010).

The marketing efforts in 2010 and 2011 was successful that created a new
concept about YEOS in young generations mindset while still remaining
18

Marketing Plan: YEOS Asian Drinks

satisfaction to loyal customers by great traditional taste. Thus, the sales and
marketing expenses will be reduced to $S1.9 million in 2012 and YEOS can
focus on sales and developing other new products to gain more market share
in Singapore market.
In 2013, in order to launch new products to the market, YEOS will have to
focus more on marketing plans. Thus, the expenses for marketing and
advertising will be increased to S$3 million in 2013 to support for new
products of YEOS.

5. IMPLEMENTATION CONTROL
5.1. Implementation
The milestones chart on the next page identifies the key marketing programs.
This is to help the marketing managers of the company to assign the tasks,
make sure the tasks are successfully done on time and on budget.

Milestones

Plan

Milestone

Start Date

End Date

Budget

Manager

Department

Marketing plan

10/4/2012

11/4/2012

$0

Travis

Marketing

Broadcast advertising

15/4/2012

20/10/2012

$260,500

Serene

Marketing

Print advertisement

12/4/2012

20/12/2012

$70,000

Serene

Marketing

Chevron Happy

30/4/2012

30/4/2012

$15,000

Jessica

Marketing

completion

Times @ CBD

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Marketing Plan: YEOS Asian Drinks

YEOs Loves

10/8/2012

12/8/2012

$10,500

Jessica

Marketing

1/5/2012

6/5/2012

$15,000

Hebe

Marketing

10/4/2012

31/12/2012

$0

Hebe

Marketing

Singapore Event
Universities and
Polytechnics
Open House
Development of retail
channel
Total

$371,000

5.2. Contingency Planning

Problems with younger consumers
Young consumers nowadays want to look trendy and believe that the
beverage theyre drinking and holding can improve their self-image. YEOs
packaging for some of its Asian Teas are dull-looking. The company can
include brighter colors and trendier logo to appeal to the young consumers.
.
Problems with competitors
In the current market, there are a lot of other beverage companies who are
coming up with a wide array of flavors for their ready-to-drink Asian teas.
YEOs have to constantly innovate new and popular flavors, instead of the
traditional teas to appeal to the wide beverage market.

Worst Case Risks

Actual advertising expense exceeds budgeted expense
YEOs is usually part of events that are massive and may sometimes risk
exceeding the budgeted expense. If that really happens, YEOs will need to
decrease its number of events and concentrate on cheaper advertising efforts
like posters or road shows. With the expense exceeded, it may also affect the
process of other on-going projects.

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Marketing Plan: YEOS Asian Drinks

6. CONCLUSION
With this marketing plan we hope to assist YEOS in meeting their market
objectives, which is to make YEOS product more widely available to target
the younger generation consumers and strengthen the relationship with its
current consumers in order to earn significant market share in the next 5 years.

Upon establishing the market strategy, the consumers would be updated with
YEOs products offering in the market. With this, the consumers can vote
online to choose their preferred choice of new products to be launched in the
market. At the same time, they can also give feedback or suggestions on the
products. The involvement of the consumers participation would hence
increase the bonds of YEOS with its consumers and raise awareness among
other consumers.

The promotion methods are namely sales promotion, advertising and public
relations. We will be launching the product at road shows, supermarkets and
food fairs where product discount would be given and food tasting to attract
consumers attention and encourage consumers purchase.
We aim to increase the revenue of YEOS based on the marketing strategies
and raise awareness among the consumers of different races and nationalities.

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Marketing Plan: YEOS Asian Drinks

7. REFERENCES LIST
1. Department of Statistics Singapore. 2011. Statistics Time Series on
Population (Mid-Year Estimates)
http://www.singstat.gov.sg/stats/themes/people/hist/popn.html
2. Department of Statistics Singapore. 2012. Statistics Elderly, Youth and
Gender Profiles (Themes)
http://www.singstat.gov.sg/stats/themes/people/elderyouthgender.html
3. Yeo Hiap Seng Limted Annual Report. 2010. Chairmans Statement
http://www.yeos.com.sg/imagestore/userfiles/file/financial_reports/YHS_AR_
2010.pdf
4. YHS Yeo Hiap Seng Limited. 2011. Unaudited Financial Statements and
Dividend Announcement for the period ended 31 December 2011
http://www.yeos.com.sg/imagestore/userfiles/file/financial_reports/2011_Q4_
Results.pdf
5. Far East Organization. Corporate Structure Yeo Hiap Seng Limited
http://www.fareast.com.sg/feocorp.web/index.aspx?page=profile
6. Channel News Asia. 2011. Clement Mesenas - Yeo Hiap Seng posts net profit
http://www.channelnewsasia.com/stories/singaporelocalnews/view/1146259/1
/.html
7. YEOS. 2012.Corporate-Overview
http://www.yeos.com.sg/Corporate_Overview
8. YEOS.2012. Corporate-History and Heritage
http://www.yeos.com.sg/History_and_Heritage
9. Andrew Lee.2009. Encouraging Asian Beverage Trends For 2010 and Beyond
http://www.teacoffeeasia.com/section-blog/50-features-q4-09/176encouraging-asian-beverage-trends-for-2010-and-beyond.html
10. Statistics.2012. Population
http://www.singstat.gov.sg/stats/themes/people/demo.html

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Marketing Plan: YEOS Asian Drinks

11. Soft drink international.2010

http:// www.softdrinksinternational.com/userfiles/file/SDI_OCT09_web.pdf
12. OFSA NATIONS.2010
http://www.wipo.int/edocs/mdocs/.../wipo_asean_ip_bkk_06_draft.pdf
13. Singaporeans are health conscious.2010
http://www.afic.org/Singaporeans%20are%20Health%20Conscious.htm
14. Chinese Festivals, 2008
http://www.happyhomemaker88.com/tag/chinese-festivals
15. Datamonitor.2012. Yeo Hiap Seng
http://www.datamonitor.com/store/product/?productid=34888653-3D5E47B6-B050-88A7F64E7EC5
16. ViewsWire.2009. Singapore: Food, Beverages and Tobacco Background.
http://www.eiu.com/index.asp?layout=ib3Article&article_id=739589259&pub
typeid=1122462497&category_id=775133077&country_id=1620000162&pag
e_title=Forecast&rf=0
17. FoodAsia.com. 2001. Archives
http://foodasia.tripod.com/foodasia/id7.html
18. Asianonlinerecipes.com. 2010. Asian Dessert Recipe
http://www.asianonlinerecipes.com/desserts/delicious_desserts.php
19. Cheow Xin Yi.2012. Dark clouds ahead for Singapore economy in 2012.
http://sbr.com.sg/economy/news/dark-clouds-ahead-singapore-economy-in2012
20. Green Drinks Singapore.2012
http://sggreendrinks.wordpress.com/
21. Advameg. Yeo Hiap Seng Malaysia Bhd. - Company Profile, Information,
Business Description, History, Background Information on Yeo Hiap Seng
Malaysia Bhd. 2012
22. Canned Food. 2004
http://www.yeos.com.my/product/canfood.php.

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Marketing Plan: YEOS Asian Drinks

8. APPENDIXES

Appendix 1A

Appendix 1B

Appendix 1C

I-weekly Magazine

Shin Mi Daily Newspaper

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Marketing Plan: YEOS Asian Drinks

Appendix 1D

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