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Stakeholders Meeting
21 July 2008
AgendaAgendaCompany Background
Nature of Business
Current Infrastructure
Industry Background
Industry Trends
Industry Growth
Target Consumers
Key Competitors
SWOT
Production Expansion
Sales & Marketing
Recommendations
Recap
Q & A
Key PurposesKey Purposes
Company OverviewCompany Overview
Background Business Infrastructure Operations
1988 1992
Factory in Malaysia
Salt TamarindHead office in Singapore
Households
Restaurants
Hawkers
Seasoning
Flour Powder
Grains Beans
Seeds Sauces
Condiments
Wholesalers
30% imports
Singapore
Malaysia
Brunei
Processes raw materials
Company Background Company Background
QUALITY MUST BE OF CONSISTENT STANDARDS & FOOD FIT FOR HUMAN CONSUMPTION
Knowing, Understanding, Maximizing
Food ProcessingFood Processing• Methods and techniques used to transform
raw ingredients into food for human consumption
• Good processing techniques, and proper packaging, transportation and storage food can play a significant role in reducing spoilage and extending shelf life
ChallengesChallenges• Retaining nutritional value, flavor, aroma, and
texture of foods
• Presenting in near natural form with attractive added conveniences at low incremental costs
• Physico-chemical parameters and sensory evaluations providing the only means of benchmarking
Industry TrendsIndustry Trends
Men and Women Working
Convenience and Fast
PreparationInstant Food
Greater Level of Pre-packing
Healthier Food Products and Food Safety
Reduction of Fat Content
As time progresses, people progresses…
Industry GrowthIndustry Growth• Growth of food processing sector nearly
doubled to 13.7 per cent during last four years
• Target growth to 20 per cent by 2015
• Investments buoyant
• Processed food sales worldwide; US$3.2 trillion (2004)
Fish FarmsFish Farms
•Seasoning•Commodities for daily operations
Cooked Food Cooked Food IndustriesIndustries
•Household •Hawkers•Restaurants
Good quality products to
capture consumers’
hearts
Key CompetitorsKey Competitors
Key CompetitorsKey Competitors
Pure Harvest
– Leader in the natural and organic food industry– Highest quality of natural and organic ingredients – Trend moving towards having healthier choices– A threat to Ken Hong Seng Tat Kee Trading as
both sells beans
Disadvantage: Expensive
Key CompetitorsKey CompetitorsThe Prima Groups
– Variety of products– Established reputation; first few flour
millers in the whole of South East Asia– Experience leading to customers’ trust
and loyalty– Recent food poisoning case that caused
turmoil in Singapore
StrengthsStrengths WeaknessesWeaknesses
OpportunitiesOpportunities ThreatsThreats
•Large variety of products•Larger shelf space & larger market share•Cater to different needs of customer•Providing satisfaction and building up trust
•Usage of good quality ingredients as their marketing strategy have helped them established a good reputation
•Insufficient advertisements
•Causes unawareness•Dependent on loyal customers to spread the word
•Ken Hong Seng Tat Kee Trading not a listed company
•They do not have much funding•Many limitations to what they can do
•China-ASEAN free trade agreement established by 2010•Many business opportunities to break into the market of China
•Few organic companies in current industry•Preferences shifting towards healthier choices
•Increasing oil prices •Put a toll on the company’s operation cost
•Unlisted company with limited funding
•Would make the company reconsider expanding its business
Building Blocks…
Entry ModesEntry Modes
Core Entry Mode
– Foreign Direct Investments• Begins as a small venture• Expands when the opportunity appears
ConsiderationsConsiderations
Governmental Stability
Security Risk
Economy
Foreign Relations
Rental & Utilities
Transportation
Population Size
Labour Cost
CountriesCountries
• Inefficiency•Inconsistent Legislation•Corruption
• Harsher penalties •Reduce civil unrest
• ASEAN FTA•Indo-Japan Economic Partnership
• GDP below projected rate•Tax & Disbursement Deficit•High Inflation•Increased Wages
• 237,512,355 People•Unemployment 9.6%•Agriculture 43.3%•Severance 30times salary
•Transportation 8.72%•Rental SGD$(30-250) per month
•“Harmonious Social Development”•Build an “Equal Society” by 2020•Controlled corruption • Free-Trade
Area with SEA
• Improved railway lines & port facilities•Factory size 1200sqm - $7000 per month•Utilities $600 per month
• 3rd Largest Economy•Abolished Agricultural Tax•Improved infrastructure & telecommunications•GDP > 10%
•1.3 Billion People•Growing Population
•Unemployment ↓ 4% to 4.5%•47% agriculture industry
• Deteriorating infrastructure•Competitors strategic investment•High utilities
• Largest Economy•Economic downturn and financial crisis•May recover only after 2010•High inflation
• World Super Power•Growing discontent with President Bush
•Freight ports, airports, bridges, roads, rail and transit networks •Contributed more than $1 for every $10 produced in the GDP
• 303,824,646 People•Serious tensions between races •Presence of
Terrorism
The mechanism behind profit
ConsiderationsConsiderations
Governmental Stability
Security Risk
Economy
Foreign Relations
Knowing Competitors Well
Transportation
Population Size
Competitors Price Level
CountriesCountries
One of the richest countries in Asia
Developed Country
Currency coupled with recent pull-back in price of some key exports, eg: Oil
Corruption Scandals
Illegal loans and bribes paid to governmental
officials
Limited natural resources & limited land
One of the largest markets in European UnionLimited natural
resources
New insights, new dimension
Recap - ProductionRecap - Production
•Political inefficiency and corruption
•Low GDP
•3rd largest economy •Fastest growing nation•Free-trade agreement•Easy access to resources
•Unstable political and economical structure
•Possibility of going into economic recession
ProductionProduction
Recap – Sales & MarketingRecap – Sales & Marketing
Recap – Sales & MarketingRecap – Sales & Marketing
Sales & MarketingSales & Marketing
ConclusionConclusion
Thank you for your time…