After You Dessert Cafe: International Marketing in Singapore

This report examines the feasibility of After You Dessert Cafe's expansion from Thailand to Singapore. It begins with an introduction to After You, its financial performance, and the benefits of entering the Singapore market, including increased customer base, revenue, and global market share. The report then assesses market entry recommendations, focusing on the franchise model and market entry strategies. A PESTEL analysis evaluates the political, economic, social, technological, environmental, and legal factors in Singapore. Hofstede's cultural analysis compares Thailand and Singapore, informing brand strategies. The report further discusses whether to use a standard or adapted approach, and finally recommends a marketing mix, including product, pricing, place, and promotion strategies for the Singapore market. The study concludes by summarizing the key findings and recommendations for successful market entry and expansion.

Running head: MARKETING
Marketing
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction:...............................................................................................................................4
Suitability of market entry recommendations:...........................................................................6
Suitability of marketing strategy recommendations:.................................................................7
PESTEL Analysis:.................................................................................................................7
Political:.............................................................................................................................7
Economic:..........................................................................................................................7
Social:.................................................................................................................................8
Technological:....................................................................................................................8
Environmental:...................................................................................................................8
Legal:..................................................................................................................................8
Hofstede Cultural Analysis:...................................................................................................9
Brand Strategies:..................................................................................................................10
Standard approach or adapted approach:.............................................................................11
Suitability of marketing mix recommendations:......................................................................12
Product:................................................................................................................................12
Pricing:.................................................................................................................................13
Place:....................................................................................................................................13
Promotions:..........................................................................................................................14
Conclusion:..............................................................................................................................14
References:...............................................................................................................................16

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Introduction:
The dynamics of the modern business industry is observed to change in a significant
manner in recent years as the impact of the globalization is pretty prominent on the business
actions of the companies. As Bijaoui (2017) rightly mentioned that the effects of the
globalization has certainly played a significant role in eliminating the market monopoly in
majority of the mainstream business industries, it certainly created considerable amount of
scope for the companies in expanding their business activities to new business markets for the
achievement of the desired growth through generating larger sales and through increasing the
number of the customers. The study is focused regarding the business expansion of one such
company named as After You Dessert Café. The main objective of the study is to assess the
feasibility associated with the idea of the company in expanding their business operations
from Thailand to Singapore.
After You Dessert Café is a renowned named in the café industry of Thailand and
was first established in the year 2007 (Afteryoudessertcafe.com. 2020). Shibuya Honey
Toast, Panookie, Figgy Pudding and Chocolate Lava Cake were the signature desserts for the
company and these desserts were considered to be the main star attractions for the company
in attracting their customers in a professional manner and in triggering the purchase intention
of the customers (Afteryoudessertcafe.com. 2020). The mentioned items increased the
popularity of the company and that influenced the higher authority of the company in
expanding their business operations inside Thailand which was visible with the establishment
of After You Dessert Café inside the town in a considerably less time. Considering the
mission of the company, it is visible that the company is dedicated in offering top quality
desserts prepared through utilizing the best quality ingredients. The objective of the company

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is to maintain their standard of quality in their products and services and to provide a pleasant
atmosphere to their customers to enjoy.
Considering the finance of the company, it is understandable that the company is
growing in a rapid speed in terms of its generation of revenue and net income. The company
was able to generate 735 Million Baht as revenue in the year 2017 and in the following year,
the company increased the same to 881 Million Baht (Investor.afteryoudessertcafe.com.
2020). On the other hand, the company was able to generate 129 Million Baht as operating
income in 2017 and that they increased to 147 Million Baht in the following year which
highlights the success of the company in continuously riding the growth of the cafe industry
and in improving the financial sustainability of their business
(Investor.afteryoudessertcafe.com. 2020).
The benefits that the company will achieve through expanding their business to
Singapore are mentioned below:
 Increment in the number of customers (Olmos, Rivier and Pérez-Arriaga 2018).
 Substantial rise in the revenue and operating income of the company.
 Enlargement of the global business operations of the company.
 Significant rise in the market share of the company (Lupton et al. 2018).
With a precise look at the benefits that the company is expected to achieve with the
expansion of their business to Singapore, it is understandable that the rise in the number of
customers will increase the sales of the company and at the same time, it will place the
company in a perfect position for increasing their revenue and operating income which is
regarded as the fundamental factors that signify a stable growth for a company. The initiation
of the business in Singapore will enable the company in raising their market share in the

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global café industry and at the same time, it will strengthen the company’s ability in
enlarging their global business actions.
Suitability of market entry recommendations:
With A precise look at the concept of the market entry frameworks, it is evident that
the three major concerns for the companies in expanding their business actions are the
marketing, sourcing along with the investment and control. Considering the marketing aspect
of the framework, it is visible that the company requires to target will be the café market of
Singapore. The selected segment that the company is in need to target will be primarily the
youths of Singapore. With a precise look at the confectionary consumption characteristic in
Singapore, it is prominent that the generation of 52.34 US dollars person per revenue is only
achievable due substantial participation of youths. In addition to this, the CAGR estimation
of 3.6% growth in the annual revenue of the mentioned industry is influenced with the
repetitive purchase from the part of the customers belonging to youth generation
(Statista.com 2020).
Considering the marketing efforts, the company has robust presence in the social
media platforms such as Facebook, Line and Instagram (Afteryoudessertcafe.com. 2020). The
company is in need to continue their activities in creating the attractive marketing contents
for their customers in Facebook and Line. At the same time, the company requires to put
strong emphasis on interacting with the customers through their presence in Facebook and
Instagram (Afteryoudessertcafe.com. 2020). Having said that, the company has the necessity
to develop their presence in YouTube for promoting their business actions through creating
promotional videos. Along with that, the development of their presence in Twitter will be
crucial for them in communicating their customers regarding the offers and prices of the
products. Considering the intention of the company in expanding their business, the selection

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of the franchisee as the preferred mode of market entry is the most feasible option. Keeping
the selection of market entry in mind, the company requires to formulate supplier network in
Singapore conducting a stable business for buying the raw materials. Considering the aspect
of the investment and control, the company is in need to go for their most practiced method,
the franchisee technique. The selection of the technique is based on the benefits such as the
fast entry in the destination business market with low costing and low probability of risks
along with the rich history of the company in conducting franchisee based business actions.
Considering the market entry strategies, the company generally prefers franchisee
mode of market entry where they put strong emphasis on the evaluation of the profile and the
business plan of the probable franchisees. Along with that, the assessment of the franchisees
is professionally conducted through the franchisee qualification and expenses. Other than
this, the primary concern for the companies in selecting their franchisees is seen to
identification of the investors, development of the supplier networks along with the selection
of the franchisees.
Suitability of marketing strategy recommendations:
PESTEL Analysis:
Political:
Singapore is a democratic country and is recognized as a nation with the lowest
potential risk. There are several reports of Political and Economic Risk Consultancy which
highlight the low potential of political risks inside the organization (Cpib.gov.sg. 2020).
Along with that, the good relationship between the selected country and their neighbouring
countries is substantial in stating the low probability of any sort of act of terrorism that has
the capability to affect the sustainability and peace in the nation.

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Economic:
The per capita income of the country places it at the top most positions in ASEAN
market. Along with that, the lively free market economy of the nation is a clear reflection of
the growth of the national economy in a significantly fast speed (Tan and Tang 2016). In
addition to this, the government of the nation is observed to be focused in diversifying their
economy in various business industries which is significant in providing the due scope to the
business companies in conducting efficient business.
Social:
The human development index of the nation is 0.935 (Hdr.undp.org. 2020). The high
score of the nation in the human development index is crucial in stating the high rate of
literacy amongst the citizens of the nation. In addition to this, the high score of the nation in
HDI clearly highlights strong capability of the general citizens in purchasing different
products and services.
Technological:
The high score of the Singapore in HDI highlights the high level of technological
competence of the people of the nation. The technological competence of the people of the
nation is pretty significant in stating the scope for the business companies in conducting their
processing of products, marketing and promotional activities along with the sales through the
application of the technology.
Environmental:
The company is required to ensure that the sourcing of the raw materials for their
products is managed in an ethical manner. Along with that, the company is in need to select
the suppliers that effectively abides by the environmental guidelines that the environmental
regulatory agency of nation has developed.

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Legal:
Considering the legal aspect, the company is required to comply with the employment
legislations of the nation on various dimensions such as the wage and work time
characteristics, rewarding plans and employment contracts (Mom.gov.sg. 2020). Other than
this, the company has the necessity to manage the taxation and corporate legislations in a
professional manner.
With a precise evaluation of the context of the market, it is visible that the transparent
political environment, strong economic condition, substantial technological advancement and
social preferences, create a suitable condition for the selected company to enter Singapore
market.
Hofstede Cultural Analysis:
With a precise look at the hofstede dimensions, it is understandable that Thailand and
Singapore have considerable amount of similarities in their cultural orientations. More
specifically, Both Singapore and Thailand are observed to score considerably close in the
aspect of power distance. The score of 74 and 64 in the aspect of power distance for
Singapore and Thailand is pretty significant in stating the preferences of the people towards
the unequal distribution of power inside the organizational context (Hofstede-insights.com
2020).
The organizations operating in these countries are observed to portray high level of
acceptance towards the hierarchical structure. Considering the aspect of individualism, both
the countries are observed to score 20 and that certainly highlights the collectivist nature of
both the societies (Hofstede-insights.com 2020). The workforces largely reflect their
admiration towards unionization. Considering the dimension “Masculinity”, it is evident that
the Singaporean society follows an intermediary masculine approach with a score of 48

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(Hofstede-insights.com 2020). The Singaporean citizens have a great level of admiration
towards being best in whatever they do and at the same time, their preferences in what they
do, is also a major point of consideration for them. Two of the main aspects that differ both
the societies are Uncertainty Avoidance and Long Term Orientation. With a score of 8 in the
aspect of the Uncertainty Avoidance, the Singapore society and their citizens portray a great
level of admiration towards complying with the rules and legislations (Hofstede-insights.com
2020).
On the other hand, the Thailand society with a score of 64 in the mentioned aspect
portrays considerable amount of preference towards avoiding the uncertainty or ambiguous
situations (Hofstede-insights.com 2020). Having said that, the score of 32 in the aspect of
Long Term Orientation reflects presences of normative culture where the people have a
tendency of achieving quick results (Hofstede-insights.com 2020). On the other hand, the
score of 72 in the aspect of Long Term Orientation, highlights the signs of pragmatic culture
in the social and cultural orientation of the nation (Hofstede-insights.com 2020). With a look
at the dimension of “Indulgence”, Singapore and Thailand is seen to portray similar sort of
orientation with a score of 46 and 45 respectively (Hofstede-insights.com 2020).
Brand Strategies:
The brand strategy of the company will be based on three different factors which are
consistency, employee empowerment and emotional connections (Ko, Phau and Aiello 2016).
The company requires to be consistent with the products and services that they are delivering
to their customers in terms quality, prices and the utilization of the sourcing techniques as
that will ensure a strong and efficient brand image for the company which they can use for
attracting larger number of customers in the new business market. In addition to this, the
company is in need to maintain a strong connection with the customers through the packaging
and marketing activities which will be able to influence the sense of belonging amongst the

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people of Singapore towards the products and services of After You Dessert Café. In addition
this, the structuring of the promotional activities and the initiation of the loyalty programs
will be significant for the success of the company in attracting larger number of customers
and in influencing them for the word of mouth marketing communication (Balaji, Khong and
Chong 2016). Considering the concept of the employee empowerment, it will be significant
for the company to enable their employees in creating the training activities as per their needs
under the supervision of professional experts and the human resource managers of the
company (Aboul-Ela 2016). The transfer of power regarding the training will be crucial in
ensuring that the level of involvement of the employees towards the organization, gets
increased.
Standard approach or adapted approach:
With a precise look at the hofstede cultural analysis, it becomes evident that the
countries have considerable amount similarities in cultural orientations. As a result, it is
important for the company to make sure that they apply standardized approach in managing
the physical aspects of the products such as size and packaging along with the intangible
aspects such as the brand reputation and positioning of their business (De Mooij 2018).
Having said that, the company is in need to restructure their social media and online
promotional activities. From the macro environmental factors of the nation, it is
understandable that the nation has the capability to accept the technological advancement and
the citizens are fluent in handling the social media. As a result, the company needs to apply
promotional adaption approach for increasing the choices of media and social media
presence.
The company does not have a strong presence in the social media platforms such as
the YouTube and Twitter which limits the company in providing an audio visual experience
to the customers regarding the products and services that the company offers and along with

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that, the company has the necessity to initiate customer interaction through Twitter which
will enable the company to address the grievances and word communication of the customers
in a professional manner and at the same (Tuten and Solomon 2017). It will enable the
company in communicating regarding the products and services that they offer to their
customers. Considering the concept of price adaption, the company has the necessity to come
up with the application of price skimming just to ensure that they attract the customers and
has the ability to capture a certain market share in the Singaporean market.
Suitability of marketing mix recommendations:
The success of the introducing the brand in the Singapore market in a successful
manner, is largely dependent on the ability of the company in formulating an efficient
marketing mix. The formation of the marketing mix includes 4 different aspects which are the
products, place, pricing and promotions.
Product:
After You dessert café is observed to have substantial expertise in delivering best
quality desserts to their customers and that is one of the main influential factor responsible in
enhancing the financial sustainability of the organization. Along with that, the signature items
of the company is seen to be Shibuya Honey Toast, Panookie, Figgy Pudding and Chocolate
Lava Cake (Afteryoudessertcafe.com. 2020). The mentioned products are primarily the
bestsellers of the organization. Apart from this, the company is regarded as one of the best in
the business for incorporating the customer insights in the design of their products. For
achieving the customer inputs, the managerial authority of the company is seen to put strong
emphasis on their business website along with the social media platforms that they manage.
The presence of the company in Facebook, Line and Instagram is seen to be utilized in a
professional manner for the collection of the customer inputs for designing best seller

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products and delivering the worth of the customer’s money (Afteryoudessertcafe.com. 2020).
In addition to this, the company has strong concern in ensuring that their products are
perfectly aligned with the health standards of their customers and for the same, the company
is seen to put strong emphasis on multiple testing of their products prior to the introduction of
the products in the market. For the same cause, the company closely monitors the activities of
their suppliers. The company is determined in ensuring the sourcing of their raw materials is
ethical and is conducted in eco- friendly manner. As a result, the company is not only able to
increase their revenue and operating income, but also is able to enhance the reputation of
their business.
Pricing:
The company is expected to apply competitive pricing for their products in the
Singapore market. With a detailed focus at the Singapore market, it is understandable that the
market includes the participation of several business organizations operating in the same
industry ad in such situation, it becomes important for the company to ensure that they
develop a cost leadership in the new market (Kurt and Zehir 2016). Along with that, the urge
of the company in establishing their brand in an efficient manner, is also an influential factor
for them in setting up such price tags for their products that it influences the purchase
preferences of the general customers in Singapore.
Place:
As mentioned earlier, the preferred market entry option for the company is
franchisees and that certainly influences the company in setting up franchisees in the
Singaporean market. The franchisee concept of market entry is seen to be a largely practiced
method from the part of the company in expanding their business. The success of the
company in establishing their business in the Singaporean market is seen to be reliant on their
ability in establishing at least 20 franchisees across the various cities of Singapore. The