Coca-Cola Singapore Market Analysis

This comprehensive report provides a detailed analysis of Coca-Cola's market position in Singapore. It begins with an industrial analysis of the Coca-Cola Company and its subsidiary in Singapore, highlighting its diverse beverage portfolio and distribution network. A PESTLE analysis examines the external factors influencing the soft drinks industry in Singapore, including political, economic, social, technological, legal, and environmental factors. The report then identifies opportunities and threats based on the PESTLE analysis. A market segmentation analysis explores the size and projected growth of key customer segments (wholesalers/distributors, on-trade, and off-trade). Competitive analyses of key players like Yeo Hiap Seng, PepsiCo, Pokka, and F&N are presented, comparing their strategies, value propositions, distribution performance, and marketing communications. The report delves into the buying processes and relationship analyses for each customer segment, outlining the key components of interorganizational relationships. A supply chain management section details Coca-Cola's goals and strategies for optimizing its supply chain. A focal firm analysis examines Coca-Cola's core competencies, strategies, unique value proposition, supply/delivery performance, and marketing activities (product, business services, value/pricing, market communications, and direct selling). Finally, a SWOT analysis identifies Coca-Cola's strengths, weaknesses, opportunities, and threats, leading to proposed marketing objectives and strategies, implementation tactics using the marketing mix, channel conditions, qualitative and quantitative channel outcome performance, communication strategies, and an implementation measurement plan with a timeline and budget. The report concludes by summarizing how well Coca-Cola meets its customer needs.

Industrial Analysis
Coca-Cola Company is the world's largest beverage company. Coca-Cola Singapore Beverages
Pte Ltd is a subsidiary of the Coca-Cola Company. They own over 500 nonalcoholic beverage
brands that include soft drinks , water, flavoured waters, juices, ready to drink teas and coffees,
sports drinks, dairy and energy drinks. Their top four brands that they own are Coca-Cola, Diet
Coke, Fanta and Sprite. These branded beverages products are available to consumers
worldwide through a network of company owned manufacturing factories and distribution
operations. They also work with independent bottling partners, distributors, Wholesalers and
also retailers. It is considered to be the world’s largest beverage distribution system. Recently,
the company has announced to shut down it’s bottling plant at Tuas, Singapore.
PESTLE Analysis
Below shows the external implications on the soft drinks industry in Singapore, Which provides
an insight on what Coca Cola can do in their marketing mix to improve their company.
Pestle Analysis
Political ● Strong intellectual property protection provide Coca Cola with a conducive business
environment to conduct its R&D and production innovation operations.
● With Singapore's pro-business policy, accountings standards, low tax rate, impartial
legal system, good business infrastructure and strategic location it provide Coca Cola
with a conducive business environment to set up its Asia Pacific regional headquarter.
Economical ● Singapore’s small, trade-dependent economy went through a cyclical downturn and is
not expected to pick up significantly in 2017.
● Water prices to increase by 30% by 1 July 2017
● Increased cost of natural gas, causing an average 6.1% increase in electricity tariff for
2nd quarter of 2017.
Social/Cultural ● In Singapore, people tend to focus on their health. People tend to choose drinks with
healthier choice label on it. Coca Cola Singapore has product like Coke Zero where
they contain zero sugar. It was recently awarded the healthier choice label on it.
● Coca Cola is also impacted by the additional range of cultural influences such as media
perceptions of the brand, diet patterns and also the family values.
● Coca Cola has been diligently following their policy of not targeting their advertising to
children
● People in Singapore tend to consume more Soft-drinks during Chinese New year, Hari
Raya and Deepavali.

Technological ● Coca Cola possesses top-of-the-line machinery in Britain in order to ensure quick and
efficient delivery and high quality product development.
● Over the last decade, the level of technology has skyrocketed. Currently the best way
to advertise and promote a brand is through social media and opinion leaders. Coca
cola has taken advantage of this by holding campaigns and promoting it through all
forms of social media such as Twitter, Facebook and Instagram. By having their brand
logo all over different social media platforms, the Coca Cola brand is able to continue
having top-of-the-mind awareness from their target audience.
Legal ● Coca Cola has to abide by the Sales of Food Act in the manufacture, production and
distribution of its product. The Act defines food, prohibits the sale of foods which are
contaminated, unsafe or unfit for human consumption, as well as pre packed foods
which are not properly labelled or labelled in a misleading manner.
● Competition Commision of Singapore regulate and enforce the Competition Act to
ensure dominant firms like Coca Cola do not distort or restrict competition as
competition often provide benefits for consumer and economy in general.
● Singapore had signed double taxation agreements with 67 countries as of December
2015. The agreements will help transnational companies avoid being taxed twice.
Moreover, the agreements are likely to smoothen capital flows.
Environmental ● Coca cola system’s environment has certain commitments that are being focused
on areas which show significant amount of opportunities that make a difference
and they are – water stewardship, sustainable packaging, energy management and
climate protection.
● Coca cola is striving to introduce healthier and better products. This eventually rise
the world economy and gear the strength of the dollar in the upcoming years.
● It can also be possible that company may face water issues and mostly will affect
the production plants of the countries. Many aspects has quite an effect on the
business of the beverage company. Huge amounts of investment and maintenance
may be required due to these environmental factors.
● Other environmental factors such as climatic conditions can affect the consumption
of the product. For instance, during cold weather most people do not consume cold
beverages in order to avoid health problems. However, the people tend to consume
a lot of cold beverages during summer. These changes affect the sales of the
company.
Opportunities (Based on PESTLE)
● With the strong laws in place in Singapore, Coca-cola is free to innovate safely without
the worry of other companies stealing ideas.

● A low tax rate allows a higher profit margin.
● Cultural influences of people consuming more soft drinks during festive season.
● More citizens are involved with social media, Coca-Cola has more way to advertise and
build brand awareness .
● Technology has advanced, more efficient way is introduced to manufacturing products.
Threats (Based on PESTLE)
● Rising costs as water price increase by 30% and increased cost of natural gas
● 2017 was predicted to have a slow economy in Singapore
● People are looking for healthier choice
● Strict laws are enforce in Singapore
Size
The table below indicated the customers segments that Coca-Cola has potential to do business
with, along with name of company and the size of each segment.
Size of Market and
Segments
Size: Number of Businesses in
Singapore
Companies with Largest Market Share in
the industry
Wholesalers / Distributors Total Establishments :
36 Wholesalers/ Distributors
(Yellowpages.com.sg, 2017)
Itrade
Radha Exports
Ken Hong Sen Pte Ltd
On-Trade Restaurants: 2,660
Fast food outlets: 470
Food caterers: 407
Others (e.g. coffee shops): 3,723
http://www.singstat.gov.sg/docs/
default-source/default-document-
library/statistics/visualising_data/
food-and-beverage-services-
2015.pdf
McDonald's’ - 16.6%
KFC - 5.9%
Subway - 2.7%
Pizza Hut - 2.7%
Crystal Jade - 2.5%
http://www.euromonitor.com/consumer-
foodservice-in-singapore/report
Off-Trade 940 Unique Business
● 303 Supermarket
● 16 Hypermarkets
● 621 Convenience Stores
(DBS VICKERS
SECURITIES ,2015)
● NTUC Fairprice - 50.2%
● Sheng Shiong - 17.7%
(DBS VICKERS SECURITIES, 2015)

Although Coca-Cola has various customer segments, these are the largest customer segment
listed at current and in the next 5 years.
Projected Growth
Below indicates the projected growth of each segment as well as the areas which have
struggled in revenue over the last 5 years.
Projected Growth of Target
Market:
Evidence:
Wholesalers / Distributors ● The growth of Wholesale trade rose by 6.8 by the end of the fourth quarter
in 2015, which lead to the extension of growth of 6.5 percent in the previous
quarter.
● For the whole of 2015, the sector expanded by 6.1 per cent, faster than the
2.1 per cent growth in 2014. ("Wholesale And Retail Trade" 2015)
.
Food Establishments ● Despite being the top in fountain sales in 2016, certain fast food outlets
which have exclusive tie-ups with the company did not perform well. Fast
food outlets include Long John Silver, Burger King and Yoshinoya. As the
company’s brands are packaged as part of their value meals, Coca-cola
Singapore’s sales may be affected by their poor performance.
● The Singapore Restaurant Industry has been growing at a decelerating rate
since 2010, with a growth of only 0.9% in 2014, recording a S$5.7 billion
market value.
● The Singaporean Restaurant industry is expected to have a value of S$6.8
billion and a growth of 19.3% between 2014 and 2019.
Off-Trade ● The Singapore Food and Grocery retail market has constant growth in the
last 5 years. The growth percentages ranges from 3% to 6.6%.
● The market value at year 2015 was $16,899.5 Million
● In the Singapore Food and Grocery retail market, drinks are made up of
11.3%
● In 2020, the Singaporean Food & Grocery Retail Market is forecast to have

a value of $15,859.5 Million, an increase of 29% since 2015
(Marketline, 2016)
Singapore population is increasing over the years thus the spending for Food and Beverages
will increase. The potential for Coca-Cola will be huge if done correctly.
Competitors :
Yeo Hiap Seng Pte Ltd
Strategy Yeo’s is using a diversification strategy that operates a network of
manufacturing facilities in Hong Kong, Singapore, the US, Indonesia,
Malaysia, Cambodia and China. The company markets and distributes
their products across Asia and various other countries. (Marketline, 4-10)
Value Proposition Yeo’s manufactures, sells, distributes and exports beverages, sauces,
canned food, Instant noodles and non-alcoholic drinks. Under their
beverage products, they carry juice drinks, isotonic drinks, energy drinks,
soda carbonates, flavored drinks and tea drinks. Yeo’s take careful
measure to make sure their products are fresh by using Tetra Brik aseptic
containers using UHT process. Yeo’s understand what the current market
needs, they launched a product called ‘Chrysanthemum Tea Light which
has 40% less calories compared to the normal Chrysanthemum Tea Drink.
(Marketline, 2016)
Distribution
Performance
Yeo’s mainly operates through these three geographic segments:
Singapore; Malaysia and Indonesia; and other countries. The operations in
Singapore are production, distribution, export of beverages, sauces,
canned food, provision of vending machine and sale. For Malaysia and
Indonesia, their operation is production, market and sale. They have a
headquarter at each country to provide support to each individual markets.

This is good as they can communicate with no language barrier.
(Marketline, 2016)
Marketing
Communications
Performance
Yeo’s marketing communications channel ranges from Facebook,
Instagram, Twitter, Website, Linkedin page, and youtube channel. One of
their channel that they are most active is the facebook page. They have
34,000 followers on facebook. What’s unique about their marketing plan is
that they have various Instagram account to cater to different countries.
This is to target different target markets with unique marketing contents.
The Youtube channel is used to educate people on how to use their
products which I feel it’s very useful as most people buy their cooking
product but they might not know how to use it. Their social media channels
are also used to run activities to keep their customer engage. They run
lucky draws from time to time to get repeat purchases. Some of their social
media page are not regularly updated.
Opportunities
· Yeo’s branding are not as strong as Coca-Cola
· Yeo’s social media page are not regularly updated
· Yeo’s product are for sale in many country but their marketing campaign in the countries are
not active.
Threats
· Yeo’s has individual headquarters at each country
· Yeo’s has a wide geographical presence
· Yeo’s has a broad product and brand offerings
PepsiCo
Strategy PepsiCo is the second largest player in the global food and beverage
industry. They offer a diversified range of products. The company’s generic
competitive strategy is strategy is based on the need to address market
pressure from its biggest rivals, including the Coca-Cola company.
Ferguson, E. (2017)

Value Proposition In Singapore, PepsiCo produces, markets and distributes carbonated
drinks, iced/Rtd tea drinks and sports drinks. Pepsi-Cola, Evervess, Mug
and Mirinda are some of brands under the company’s portfolio. PepsiCo
does not innovate locally, all drinks are standardized and sold globally,
following the US headquarters. (Marketline, 2016)
Distribution
Performance
PepsiCo is a US-based food and beverage producer which is split into 6
major divisions across the world. PepsiCo Asia, Middle East and North
Africa (AMENA) includes all beverage, snacks and food businesses in the
three regions. Leading brands are marketed, sold, and distributed either
independently or in conjunction with third parties. (LEONG, 2017)
The branded products are being sold to authorized bottlers, independent
distributors and retailers. Etika is the exclusive PepsiCo franchise for both
Malaysia and Singapore. The group markets and distributes Pepsi’s
renowned brands such as Pepsi, Mirinda and 7up.
(Pepsico, 2017)
Marketing
Communications
Performance
PepsiCo’s has a wide range of marketing communication tools. Several
tools include Facebook, Instagram, official site and other traditional form of
advertisement. PepsiCo has an official Facebook page, where more
generic contents are posted. Some other countries also have their own
Pepsi facebook page (e.g. Pepsi Thai), these pages generates more
localized content suited for their own local market. PepsiCo does not have
its own Facebook page in Singapore.
Pepsi’s YouTube page currently has over 783,000 subscribers, with
contents uploaded weekly. The contents are mainly targeted for the
Western markets.
On top of that, PepsiCo extensively uses media and print advertising to
transmit marketing message to the targeted consumers. The ads
occasionally contains comparative campaigns aimed at damaging the
brand image of Coca-Cola, Pepsi’s main rival.
Pepsi does not have a strong marketing presence in Singapore.

(Dudovskiy, 2017)
Opportunities
● PepsiCo’s branding are not as strong as Coca-Cola
● PepsiCo does not have a local social media presence.
● Pepsi is always known as the second best soft drink while Coke is always the first.
● PepsiCo does not manufacture its own products in Singapore, it’s franchised by Etika.
Threats
● PepsiCo’s marketing tactics are known to be more focused (targeting a younger crowd)
compared to Coca-Cola (targeting mass market).
● PepsiCo has a more flexible franchise network compared to Coca-Cola.
● PepsiCo has a broad portfolio of products.
Pokka
Strategy Being the third largest off-trade (Ready-to-drink) soft
drink company in Singapore, Pokka offers a variety of
different drinks in their product range.
In order to upkeep their position as a market leader
in RTD teas, Pokka strategically installed vending
machines at as many locations in Singapore as
possible; from shopping centers, offices, schools to
factories. This strategy helps in making sure their
products are readily accessible to their customers on
a daily basis. (Pokka.com.sg, 2017)
Value Proposition As seen in the table below, Pokka leads the market in
RTD tea with a whopping 49.3% in value share. Their
RTD teas and carrot juice are their best sellers, both
of which have remarkably healthy benefits in
comparison to their other competitor’s RTD soft
drinks. Pokka also prides itself in its real brews and
all of their tea varieties are freshly brewed.
Distribution
Performance
With the Fast Moving Consumer Goods business
constantly evolving, Pokka are also constantly

continuing to invest in warehousing facilities,
manpower and new technology to further boost
performances. This will improve the efficiency of their
storing and distribution. (Pan, 2017)
Marketing
Communications
Performance
Pokka has a range of different marketing channels
which includes Instagram, Facebook, forums,
youtube, newspaper and tv advertisements and print
advertisements.
Campaigns were launched to increase brand
awareness. Pokka has a tremendously healthy
marketing presence in Singapore in comparison to
their closest competitors. (Tay, 2017)
Opportunities
-Increasingly growing demand for healthier drinks
-Rapidly growing economy
-Not having as great a branding globally as they are in Singapore and Malaysia
Threats
-There are many immensely strong competitors in this industry
-Easy to enter market, resulting in various frequent new competition
-High bargaining power of suppliers
-Increasing costs

F&N
Strategy F&N is one of the leading soft drinks manufacturers in Singapore and Malaysia.
In, Singapore they manufacture a wide variety of packaged milk, fruit juice,
energy drinks and ice cream products. They have a wide range of products and are
extremely diverse in competing with a lot of other brands which specializes in
drinks. They are definitely not as big as Coca-Cola, Pepsi and so on but have a
niche market in Singapore. Their products are relatively cheaper than its
competitors. Their strategy is to innovate and expand as much as possible in order
to sustain competition. F&N wants to become the leading company for beverage
in the whole of Southeast Asia. They intend on doing so by focusing on their core
products. Further, they are keen on developing talent management and invest on
its growth. (Fraserandneave.com, 2017)
Value Proposition F&N concentrates on beverages. They distribute and sell beverages. Their
products include F&N daisy, F&N blue cow, F&N gold coin, F&N sparkling
drinks, F&N nutrisoy, F&N ice mountain(water), F&N fruit tree, F&N seasons
and 100 plus energy drink. They are also into Printing and Publishing. F&N have
a very strong market leadership. The company believes in long term growth
acquiring the qualities to be the biggest beverage provider in the ASEAN
countries. It strives to provide visionary directions for both its subsidiary
industries. They were recently awarded as the winner of the “Most Transparent
Company, Consumer Staples”. F&N are known to be environment friendly.
(Fraserandneave.com, 2017)
Distribution
Performance
F&N is now available in over 12 counties ranging from the asian countries to
Europe as well as the United States. They now have over 7000 employees all
around the world. This makes the company credible and also can be seen as a high
profile job provider. As of now they have conquered markets of Malaysia,
Singapore and Thailand but they intend on acquiring more such other asian
markets in a short span of time. They have an extremely efficient team in each of
its core country which is a crucial factor in order to monopolise each sector. This
also helps in imports and exports and making their products reach all the other
markets. (Fraserandneave.com, 2017)

Marketing
Communications
Performance
F&N has its own website where it encourages consumers and other interested
investors/ suppliers/ distributors to contact them and find out more about the brand.
The company is extremely interactive with its consumers and takes feedbacks
seriously. F&N has an interesting market plan when it comes to branding. 100 plus
is associated with many sports merchandises and its other beverages for the needed
categories of advertisements. Sports is usually linked to such energy drinks and
thereby this is an efficient marketing plan. It helps to reach out to a mass audience
at once. Other communication channels are Facebook, Twitter, Youtube, Linkedin
and so on. They come up with different offers time to time, which gives them a
high competitive advantage amongst its other competitors. It reduces prices based
on the beverage, usually making it lowest priced in that particular category.
(Fraserandneave.com, 2017)
Opportunities
● F&N Brand reputation not as strong as Coca cola.
● F&N Brand awareness not as great as Coca cola.
Threats
● F&N though have extreme market credibility, are not as famous as their competing companies known
worldwide such as Pepsico, Coca- Cola and so on.
● F&N are trying to expand in a very short period of time which may be extremely risky and result to failure
in certain markets.
Customer Segments :
On-Trade:
Buying Process
Buyer
behaviour
analysis -
Straight Rebuy
Actions DMU Criteria Influences
Problem
Recognition
Notice that soft
drinks are
Initiators:
-Shopkeepers/
External Influences:
-Customers derived

running low on
inventory
Shop staff demand of soft drinks
General
Description of
Characteristics
and Quantity of
Needed Item or
Service
Recognizing
which product
and services
need to be
replenished:
Soft drinks
Influencer:
-Shop
Supervisors
and Managers
Decision
Maker: -
Purchasing
Manager
Internal Influence:
Types of soft drinks
they are looking for.
External Influence:
What products are
available?
Product or
Service
Specifications
Identifying the
different
suppliers that
supplies soft
drinks.
Decision
Maker:
-Shop
Supervisors
and Managers
-Purchasing
Manager
Types of soft
drinks
available
Relational
Influences:
Collaborative and
long-term
commitment
approach
External Influence:
-Strong competition of
product range and
pricing
Supplier
Search
Corporate site
Network
feedback;
Referral
Influencer:
-Shop
Supervisors
and Managers
Decision
Makers:
-Purchasing
Manager
-Strong and
stable
company
-Prompt
response and
quick delivery
of product
required
Internal Influence:
Industrial reports of
various suppliers are
readily available
online. Allows easy
comparison
Acquisition and
Analysis of
Proposals
A list of
suppliers is
being
Gatekeepers:
-Finance
team
-Past records
reflecting
good track
External Influence: -
Industry network -
WOM for supplier