Market Analysis: Cold Storage and Fairprice Supermarkets in Singapore

This report provides a comparative analysis of Cold Storage and Fairprice supermarkets in Singapore. It begins with an introduction to the Singapore retail market, highlighting the significance of marketing strategies in attracting consumers. The report then provides background information on both Cold Storage and Fairprice, including their ownership and market presence. It examines their advertising campaigns, target market segments, and perceptual positioning within the discount supermarket industry. The analysis includes a 4Ps marketing mix assessment (Product, Place, Price, Promotion) for both supermarkets, followed by recommendations for future market positioning strategies, such as differentiation and cost leadership. The report concludes with a list of references used in the analysis.

1
Cold storage and Fairprice supermarkets
Name
Course
Professor
School
City
Date

2
Introduction
Singapore has been a popular retailer market for both the citizen as well as the foreigners with
various brands and products. The consumers have variety of choices to choose to find the retailer
market (Area, 2017). The concept of marketing has been significant for the organizations
whereby they are always interacting and communicating with the consumers. In this assignment,
it is going to define the market stores between Cold Storage and Fairprice. These two
supermarkets are regarded highly in the market. The market targets have differed from their
segments (Area, 2017). The market segments of the needs of the consumers and the wants are
high. These two supermarket brands they have had a bigger share in the Singapore retailer
market. They both have target market with the marketing strategies in place to cater for the low
and the high incomes individuals.
Background of two organizations of Cold storage and fair price supermarkets
Cold storage is a supermarket chain in Singapore that has been owned by the Dairy farm
International Holdings (Charlton, Kähkönen, Sacks and Cameron, 2015). It has operated three
supermarket brands in Singapore and Malaysia. This supermarket was the initial grocery store of
Singapore that has provided its merchandise on the web since 1997. The range of the regular
consumer has since grown from six thousand to greater than fifteen thousand (Charlton,
Kähkönen, Sacks and Cameron, 2015). Conversely, Fairprice is a supermarket chain that has
been based in Singapore and happens to be the leading in the country (Area, 2017). The
organization has been a co-operative of the National Trade Union Congress or the NTUC. This
group has more than one hundred supermarkets across the island, and has more than fifty outlets
of cheers convenience stores Island wide.

3
Review of advertisements and segments markets
As a chain of supermarkets, Cold storage Singapore has a reputation in Singapore as the
purveyor of the premium groceries. When it comes to advertising the chain embarked on the
rebranding campaign, which was backed by the idea of taking the step which has been backed by
the day to day grind of the hardworking advertising (Charlton, Kähkönen, Sacks and Cameron,
2015). The supermarket has a mobile shopping app, which help them to target the youth segment
to market on their products. Additionally, they have also launch campaigns with the SMRT
which has allowed the customers to shop on the go particular during the peak seasons (Charlton,
Kähkönen, Sacks and Cameron, 2015). The supermarket has also produced great print ads in
various regions to be able to stamp on their brand. The supermarket has targeted individuals who
have a higher income to enable them feel they are shopping at the high class supermarket and
this is what the supermarket has offered. Fair price supermarkets do their advertising through e-
marketing whereby they have marketed their products via websites, banner ads, and the
interactive TV (Hollensen, 2015). They have been able to build the web business and
harmonized on the power of the customers. The market segment which the supermarket target
they base them on the price, age as well as the lifestyle of the individuals. They are targeting
high end client who have bigger income, which make them to feel they are shopping at the high
end super market.
Target segments for the supermarkets
Cold storage supermarkets
In term of the size it is the biggest supermarket chain with regards to the array of the supermarket
retail stores which consist of fifty three cold storage supermarket stores (Hollensen, 2015). They

4
target every customer segment from the high income consumers to the discount stores with
numerous store formats. Additionally they have a cold storage supermarket that serves the
middle to the higher income cluster. Moreover, the market place and the Jason’s Gourmet Grocer
which is specialty stores that concentrates on the high as well as the upper middle income
consumers.
Fair price supermarkets
This has remained the major grocery retailer with a marketplace share of 33%. It bears a network
which encompasses 100 Fairprice supermarkets. In terms of pricing they have a competitive and
this determine on whether new product needs to be procured to their stores (Hollensen, 2015).
They are extensive in regards to the consumer reach, geographically and across all the income
segments (Santandreu and Lucena , 2009). The outlets are situated in most large residential
populace concentration. The importers who necessitates on their merchandise to be distributed
island wide and with a broad concentrate on the mass they prefer to work with the Fairprice
supermarket.
Perceptual positioning Map for discount supermarket industry
The perceptual maps are used in the marketing in order to provide a visual representation of the
perception of the customer to a given products, brands or organizations (Hollensen, 2015). The
map has been drawn based on the data which the company got from the respondents in the
survey in the likelihood to purchase and whether they are satisfied with the service and products
of the supermarkets.

5
Cold Storage supermarket and Fairprice lies within the high prices. The target consumers are
those who lie within the high income. These individuals spend a lot of money while shopping
and their lifestyle is also high (Hollensen, 2015). Fairprice offers a fairer price thus they have a
wide range of products which they offer to the clients. On the Cold storage the prices are high
hence narrow product range as compared to the Fairprice since there products are relatively high
they become affordable to the high class individuals.
Chosen position for the supermarkets
4Ps
Product
Cold storage and Fairprice offers a number of products and services across their various outlets
in Singapore. Cold storage products could also be found in their web portal. These supermarkets

6
have a variety of the product on their portfolio which is related on the grocery, such as the
vegetables and the fruit sections, along with the bakery and the fresh live sea food.
Place
Cold storage supermarket chose the positioning of this supermarket is that of place. The
supermarket has 123 supermarket stores outlets in Singapore. These outlets they have been in
various trusted strategic places where there is cost of living in Singapore is moderate. The large
percentages which are offered on the units are the western variety from the EU Australia, New
Zealand and the USA which are present in the marketplaces in the upper-middle class (Seklir,
Nixon and Dorfman, 2016). The clients who are close to the outlets are mainly the expatriates as
well as the middle income residents. On the other hand, Fairprice has one hundred outlets in
Singapore and the range of product is the same as cold storage but the only difference is that
their price is lower.
Price
Fairprice supermarket marketing positioning utilized is the pricing where the supermarket has
competitive pricing in order to determine whether the product should be procured for Fairprice
stores (Charlton, Kähkönen, Sacks and Cameron, 2015). Fairprice chain is regarded as the most
extensive in relation to the customer reach, geographically as well as across different segments.
On the other hand cold storage is shown with the high cost and wide range of the product they
offer (Charlton, Kähkönen, Sacks and Cameron, 2015). The product offered are priced high since
they are most imported from Australia and the target is group of high income earners.
Promotion

7
Promotion positioning strategy for communication is based on the aspect of advertising, and
public relations. These two supermarkets are targeting different segment (Charlton, Kähkönen,
Sacks and Cameron, 2015). For the case of the cold storage they are premier retail brand and
hence they give great value to the customer. They often organize events to promote and support
the community and build friendly image of the supermarket. On the other hand, Fairprice they
advertise their ads through social media and show programs on TV to attract more customers.
They also work with the diner clubs to enable them offer the customer better services any time
they purchase the product.
Recommendation on future market positioning strategies for the supermarkets
One of the marketing positioning the Fairprice supermarket they could adapt would be
differentiation. This entail offering products which are separate from what the other competitors
are offering. The products should be unique which would make the consumer willing to buy
(Charlton, Kähkönen, Sacks and Cameron, 2015). The organizations could utilize their product,
personnel or even the image to differentiate themselves on the market. Aspects that could
promote make a product to be special are the product quality, customer service and trademark
(Ranjini and Sangeetha, 2016). The reason as to why the supermarket needs to differentiate is
that the clients normally want product which gives them the best value. Through differentiation it
would help the supermarket to deliver value than their competitors.
Another strategy which could be implemented in the future by cold storage supermarket would
be cost leadership. Currently, they are offering products at high prices particularly to the
consumers who have high income (Charlton, Kähkönen, Sacks and Cameron, 2015). They need
to offer the same products and services at a lower cost than the competitors to enable the low

8
income earner to afford the products (Charlton, Kähkönen, Sacks and Cameron, 2015). To be
able to be a cost leader and obtain such position in the marketplace, the supermarkets should
focus on lowering the cost and at the same time never lower the quality of the service and
products.
References

9
Area, T., 2017. Marketing and Management.
Charlton, E.L., Kähkönen, L.A., Sacks, G. and Cameron, A.J., 2015. Supermarkets and
unhealthy food marketing: An international comparison of the content of supermarket
catalogues/circulars. Preventive medicine, 81, pp.168-173.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education
Limited.
Ranjini, S.S. and Sangeetha, S., 2016. A study on the marketing strategies for home appliances in
supermarkets: A case study of coimbatore city (Tamil Nadu). International Business
Management, 10(20), pp.4816-4823.
Santandreu Ramos, M. and Lucena Matamalas, R., 2009. Marketing strategic of Supermarkets.
Seklir, L., Nixon, L. and Dorfman, L., 2016. A research agenda for the modern marketing age.