Marketing Strategy for Yours Truly Chocolate in Singapore

The report covers the external and internal environmental analysis of Yours Truly Chocolate, followed by the appropriate marketing strategy for the expansion of the company and its operations into the Singapore Market. The report uses theoretical as well as practical examples. Certain recommendations based on the analysis have also been provided.

Running head: MANAGEMENT
MANAGEMENT
Name of the Student
Name of the University
Author Note

1MANAGEMENT
Executive Summary
The given report follows a structured format whereby the organization chosen for the purpose of
the assignment is the Yours Truly Chocolate brand based in Adelaide in Australia. The
assignment will be covering the external and internal environmental analysis, followed by the
appropriate marketing strategy for the expansion of the company and its operations into the
Singapore Market. The report uses theoretical as well as practical examples. Certain
recommendations based on the analysis have also been provided.

2MANAGEMENT
Table of Contents
1 Introduction..............................................................................................................................4
2 Filter 1......................................................................................................................................4
2.1 Brief description of Yours Truly Chocolate Adelaide......................................................4
2.2 Pestle analysis...................................................................................................................5
2.3 SWOT analysis of Yours Truly Chocolate.......................................................................7
3 Filter 2......................................................................................................................................8
3.1 Porter 5 forces analysis.....................................................................................................8
3.2 Yours Truly Positioning in the market............................................................................10
3.3 The growth trend for similar products in Singapore.......................................................10
4 Filter 3....................................................................................................................................11
4.1 Competition.....................................................................................................................11
4.2 Cost and profit.................................................................................................................11
4.3 Income statement:...........................................................................................................12
5 Filter 4....................................................................................................................................13
5.1 Marketing plan................................................................................................................13
5.2 Marketing strategy..........................................................................................................13
5.3 Marketing campaign.......................................................................................................14
6 Conclusion.............................................................................................................................14
7 Recommendations..................................................................................................................14

3MANAGEMENT
8 References..............................................................................................................................16

4MANAGEMENT
1 Introduction
With the increase in globalization, the business environment has become highly dynamic
and due to this, different countries have become quite close to one another in terms of business
and other related aspects. Singapore is often considered to be one of those countries which tend
to have one of the largest economies among the different countries present in the globe. The
country is a world famous tourist destination and is visited by thousands of tourists annually
(Stead & Stead, 2014). Hence, the purchasing power of the country is high as well and this
market is quite attractive for any country who wants to export their goods as the chances of a
good product being a hit in Singapore is quite high. Singapore also looks out for various products
which can be hit in the country.
The reason why this has been recognized this as an opportunity is because the demographics
and the lifestyles of the different people have been changing and the Singapore population and
tourists have been looking out for better quality products and imported items. Hence, Australia
can look up to this as an opportunity to bring about business for their economy as it is one of the
best companies present around the globe and hence the company chosen for the purpose of this
report named the Yours Truly Chocolate (Barney, 2014). The brand is a socially conscious
brand which can attract the population of Singapore and creates a positive image. The report will
be following a structured format whereby the external environment of Singapore, the chocolate
industry and the market trends will be discussed which will then be followed by
recommendations on the same.

5MANAGEMENT
2 Filter 1
2.1 Brief description of Yours Truly Chocolate Adelaide
The Yours Truly chocolate company was established in South Australia in the year 1989.
The company is the producer of high quality confectionary whereby the delectable flavors and
the texture has been reflected. The company supports the local industry which can be stated to be
a bonus for the market and the general economy. The company sources raw ingredients regularly
and runs on local production (Gronroos, 2016). The way in which the company treats their staff
tends to determine the highest level in quality. The business makes continuous changes in its
technique in order to be able to ensure that it is able to provide best to the different customers.
The company wants to provide the best products and also keep the environmental
considerations in mind. When an organization or a customer is producing a chocolate from the
Yours Truly Chocolate company then they will be supporting the South Australian
manufacturers (Truly, 2018). The products are made from pure Australian ingredients with the
help of which they can assist the organization. The products are quite healthy in nature and out
glute free as well as GMO free.
2.2 Pestle analysis
In the domain of Strategic Management, the Pestle analysis has a high relative importance
as it goes a long way in helping a business organization to understand and ensure that the Yours
Truly Chocolate in Australia is able to make the right choices and is able to have an access to the
given market in Singapore The PESTLE analysis is primarily concerned with the study of the
different factors which range from Political, Economic, Social , Technological, Environmental
and the Legal factors (Baker & Saren, 2016).

6MANAGEMENT
Political Factors
The political risk in Singapore is fairly quite low. The country is governed by a stable
political party and is a democratic nation (Hollensen, 2015). The people tend to believe in the
government and their decision making because the company s easily able to provide the
company with a better standard of living. This has also enabled various business opportunities
for Singapore. Although there is a restriction of free speech for opposition parties, there are
several legal and political restrictions as well. The dissemination of content is another issue
which is considered to be a political factor.
Economic Factors
The economy of Singapore is a free market and it is developing at a very fast pace. The per
capita income is quite high and the corruption free environment goes a long way in supporting
the business sector (Morschett, Schramm-Klein & Zentes, 2015). The company is quite
competitive and the knowledgeable workers tend to strengthen the state of the economy. The
legal as well as the financial framework is vert supporting. The economy has been diverse
recently, which tends to support the industry and makes it quite stabilized. However, the given
constraints have been recognized:
 Labor shortages
 Rising labor costs
 Declines in productivity
Social Factors

7MANAGEMENT
The country of Singapore is an Asian country and thus its economy is based on traditional
as well as family values. The residents of the country tend to work hard and fulfill their
materialism desire (Goetsch & Davis, 2014). This has been able to support the company to
fulfill their productivity needs and thus the purchaser power of the different customers is quite
high. The literacy in the given country is very high and the standard of living is above average.
Technological Factors
The technological advancements present in the country is high and it is the primary reason
behind the development of the country (Rothaermel, 2015). The internet tends to play a major
role in the advancement of the country and has eased the connectivity throughout the country.
The cost of conducting is very low and this has boosted the social networking. The e-commerce
and B2c models have flourished and this has ensured that the electronic sector develops
considerably.
Legal Factors
There are various legal laws and restrictions prevailing in the country which tends to bring
about a strict environment (Frynas & Mellahi, 2015). This is because, legal, regulatory and
business settings are very crucial to support the economic growth. The various acts and
legislative rules are Electronic Transactions Act, Intellectual Property Rights, Amendments to
the Evidence Act, Content Regulation, Tax Issues and Import and Export Procedures.
Environmental Factors
The Ministry of Environment works well to ensure that the pollution in the given country
is minimized and that there are several measures with regard to water pollution and control as

8MANAGEMENT
well. Hence it can be stated that the country is a remarkable one and business on both national as
well as international platforms will be profitable there (Meyer, Neck & Meeks, 017).
2.3 SWOT analysis of Yours Truly Chocolate
Strengths
 It is a quality chocolate manufacturer in Australia
 Access to large number of resources
 Innovative chocolate brand
 Good reputation (Engert, Rauter & Baumgartner, 2016).
 Locally sourced raw materials
Weaknesses
 Limited expansion
 Small player (Rees & Smith, 2017).
 Inexperienced in the International Market
Opporutnities
 Exploring into the South East Asian countries
 Diversification into snacks and other products.
 Distribution network can be widened (Ahmadi & Wheatley, 2016).
Threats
 High competition from various established brands
 Decreasing margins as there has been an increase in the costs associated
 Health aspect of chocolate tends to have a negative impact

9MANAGEMENT
 Problems related to raw materials sourcing
3 Filter 2
3.1 Porter 5 forces analysis
The porter’s five forces is a useful tool which can be used to analyze the different factors
of the Chocolate Industry in Singapore and the manner in which it can have an impact on the
Yours Truly Chocolate Company.
The threat of new entrants:
During the initial stage, high capital is required. This is because there exists special
requirements of the food industry which need to be abided by. It requires knowledge of a wide
range of ingredients and lastly the supply chain is very complicated. Hence, the threat of new
entrants is very high.
The threat of substitutes
The threat of substitutes in the given industry is very high. These threats are threats about
non chocolate snacks, chips and fruits (Eden & Ackermann, 2013).
Power of buyers
The bargaining power of buyers is very moderate. The number of buyers have been
increasing considerably and the switching cost is quite low. There exists lack of threat of
backward integration which poses threat.
Power of suppliers
The bargaining power of the suppliers is moderate. There are a large number of suppliers
present in the given industry. The supplier does not pose a threat of forward integration and there

10MANAGEMENT
exists undifferentiated raw materials which makes relationships easier. However, suppliers are
considered to be crucial, because this product is very important for the industry.
Competitive Rivalry
The Threat of rivalry in the given industry is very high. There exists advertisement
battles, price wars, high range of flavors are required and lastly, the quality of the products also
needs to be quite high which makes survival difficult.
3.2 Yours Truly Positioning in the market
The two different positioning process relating to Yours Truly would comprise of
Luxurious, and cheap along with high or low.
The Yours Truly Chocolate will be priced moderately but the quality of the product will be
optimum and belonging to high quality. It would be in the segment of luxury and high quality.
The given table maps the positioning of the Yours Truly Chocolate Company in Singapore.
High Quality
Luxurious
Yours truly chocolate
Hershey’s
M and M
Cheap
Cadbury Mars
Low quality

11MANAGEMENT
3.3 The growth trend for similar products in Singapore
Singapore tends to import various Australian products these days from products like
children milk to agriculture to vitamins and bottled waters. As the tourism attractiveness of the
place is very huge, chocolates and other snack products are increasingly popular (Carroll, Primo
& Richter, 2016). Hence, these tend to make such products quite popular in the given domain
and this gives rise to different opportunities for the Australian company.
However, the health awareness of the Singapore population is increasingly and more people
are becoming health conscious which then tends to create a barrier for the chocolate companies,
However as the Yours Truly chocolate company tends to produce healthy products and gluten
free items , the given threat would not cause a problem for the Australian enterprise. The people
of Singapore have a high cultural acceptance in terms of collectivism and hence, the companies
looking for expansion can do well (Foxall, 2014). The tax is between 13 to 17 per cent which is
preferable.
4 Filter 3
4.1 Competition
The competition between different companies engaging in the chocolate business has been
increasing considerably due to the increase in the tourist visits, furthermore, there are various
other chocolate brands present in the industry like Hershey’s, Mars , Cadbury and Nestle along
with M and M which provide intense competition to the company. Although the competition
which is present is

12MANAGEMENT
4.2 Cost and profit
The cost of the company Yours Tricky is mainly considered with the price of the raw
materials chocolates, exporting costs and the cost of packaging for the chocolates. The costs vary
according to the demand and the shipment size.
The cost of production of the chocolates will cost around 50$ for every 5kg being
produced. Furthermore, shipping and exporting the chocolates will add approximately 13% for
the VAT. The price at which the chocolate will be sold in Singapore is approximately 85$
Australian dollars for 5 kgs being sold. Hence, the company will be earning approximately 35$
for every 5kg being sold (Barney, 2014).
As stated earlier, the company wants to position itself as a luxurious chocolate which is
good in taste and is healthy as well. That is the reason why the price has been set this high. The
company wants to focus on being different and healthy which will enrich the vision of the
company in the eyes of the different customers (Armstrong et al., 2015).
4.3 Income statement:
Revenue
Gross Sales
Sales Allowance
Net Sales
308.320
-0.00
$308.320
Production fees
VAT fees
Marketing Expenses
Total Expenses
-$53.600
-$16.800
-$10,000
-$80.400

13MANAGEMENT
Profit Before Tax $227.92
Tax -$22.188
Profit for the year $205.732
5 Filter 4
5.1 Marketing plan
Target market
The target market for the chocolate company will be the younger generation. However,
the main target market is the tourist group. These tourists will be willing to buy the product and
hence, they will also be the target market of the company. The demographics will be middle to
high income group people.
As the chocolate being given will be gluten free and will also be free of any unhealthy
materials, this will suit the needs of the population who want a healthy lifestyle. The people tend
to adapt to the needs of the lifestyle of US and Australia and for this reason they would like to
have products from Australia as it is believed to be 100% fresh. They would conceive this
premium and luxury with their own healthy habits.
Hence, the marketing strategy of the company needs to highlight this aspect and ensure
that the freshness and healthy aspect of Australia is highlighted.

14MANAGEMENT
5.2 Marketing strategy
The social media networks can be used as the primary network which helps the company
to get in touch with the different customers. Singapore has an access to the advanced technology
which can be taken advantage of in the given scenario. Mediums such has Facebook and Twitter
can be used for advertisements. Hence, these can be used effectively. The company needs to
make an ad which highlights the benefits of chocolate and enriches its tastes. The company can
form a website which will help the customers to know more about the given products,
5.3 Marketing campaign
The marketing campaign for the company Yours Truly will be as follows:
 The labelling of the products needs to be done in a way such that, it attracts the crowd
and makes it attractive for the tourists.
 The slogan –Pure chocolates, Healthy chocolates should be used
 In order to enter into the Singapore market, an attractive marketing campaign must be
used to gain the attention of the customers.
6 Conclusion
Therefore, from the given analysis it can be stated that or the Australian company, Yours
Truly Singapore is an appropriate destination whereby the growing tourist population can be
taken the advantage of. The Crowd of Singapore and the tourists visiting the given place tend to
like the idea of the pure and healthy food like the west. Hence, instead of going with the different
popular European chocolates like the Hershey’s` M and Ms and others, the company can opt for
the new healthy and gluten free Australian products.

15MANAGEMENT
The given analysis highlighted the external as well as the internal environment
successfully along with suggesting the market strategy which will go a long way in heling the
firm to become successful. Hence, the opportunity for Yours Truly Company is a good one for
Australia into the Singapore market.
7 Recommendations
Although the opportunity for Yours Truly company is a very attractive one. However, the
company needs to ensure that it is successfully able to enter into the given market. As the
Singapore company is not aware of the brand, the company will not be able to find success if the
marketing strategy is not successful.
It may also face competition problems relating to the competition which it receives from
the other European brands and hence, for this purpose the product offering needs to be good
enough so that it can compete effectively.
However, advertising on the right social media may be helpful for the company.

16MANAGEMENT
8 References
Ahmadi, M., & Wheatley, K. (2016). A SWOT Analysis of Big Data. Journal of Education for
Business, 91(5), 1-6.
Armstrong, G., Kotler, P., Harker, M. & Brennan, R. (2015). Marketing: an introduction.
Pearson Education.
Baker, M.J. & Saren, M. eds., (2016). Marketing theory: a student text. Sage.
Barney, J. B. (2014). Gaining and sustaining competitive advantage. Pearson higher ed.
Brown, S., & Bessant, J. (2013). Strategic operations management. Routledge.
Carroll, R. J., Primo, D. M., & Richter, B. K. (2016). Using item response theory to improve
measurement in strategic management research: An application to corporate social
responsibility. Strategic Management Journal, 37(1), 66-85.
Eden, C., & Ackermann, F. (2013). Making strategy: The journey of strategic management.
Sage.
Engert, S., Rauter, R., & Baumgartner, R. J. (2016). Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner
production, 112, 2833-2850.
Foxall, G. ( 2014). Strategic Marketing Management (RLE Marketing) (Vol. 3). Routledge.
Frynas, J. G., & Mellahi, K. (2015). Global strategic management. Oxford University Press,
USA.

17MANAGEMENT
Goetsch, D.L. & Davis, S.B. ( 2014). Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Gronroos, C. ( 2016). Service Management & Marketing: Managing the Service Profit Logic.
John Wiley & Sons.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education
Limited.
Meyer, G. D., Neck, H. M., & Meeks, M. D. (2017). The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset, 17-44.
Morschett, D., Schramm-Klein, H., & Zentes, J. (2015). Strategic international management (pp.
978-3658078836). Springer.
Rees, G., & Smith, P. (Eds.). (2017). Strategic human resource management: An international
perspective. Sage.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
Stead, J. G., & Stead, W. E. (2014). Sustainable strategic management. Routledge.
Truly, Y. (2018). Chocolates online | Yours Truly Chocolates | Adelaide | South Australia.
[online] Yours Truly Chocolates. Available at: https://yourstrulychocolates.com.au/
[Accessed 20 Jun. 2018].

18MANAGEMENT