Primadelis Beginnings And Its Success Account Marketing Essay

The objective of the report is to find about the starts off of the well-known PrimaDeli that people all know. We'll also be coming in contact with slightly how Prima Limited was initially established, the troubles it faced and hurdles it went through as a business before eventually which makes it big on the market. And most notably, how achieved it manage to make a discovery even following the undesirable food-poisoning event.

What is Prima Deli?

PrimaDeli is a well known pastry shop filled with different kinds of delicacies. From puffs to cakes other variety of confectionaries to gratify your cravings. Over the years, they have grown rapidly all over Singapore and providing good quality service to gratify their customers. Using the outlets being easily positioned in major domestic estates, commercial districts and shopping areas and much more than 30 stores across Singapore, it's no surprise their bakeries are recognised all over the island.

Corporate History

In 1961, Prima Limited was founded when its creator, Cheng Tsang Man, built Southeast Asia's first flour mill and the company. Prima was also called "Bai Ling Mai", which means 'a hundred 12 months old whole wheat' in Chinese. It is to represent the company's vision for corporate longevity. The business made the state list under both Singapore and Malaysia business registries in 1969. The business not only has flourmill in Singapore but also in other countries like Indonesia, India, the Philippines and Australia. The Prima we realize today is more than simply involving into flour milling, it is currently diversifying into other aspects such as personal restaurants, food processing, cooked confectionary products, even in property management and areas of information technology. And PrimaDeli is one of the successful businesses that the business has. Launched in 1992, PrimaDeli is Singapore's first only home-grown bakery franchise and also the longest-running Singapore food franchise. While using bakery outlets situated in major business, domestic and shopping areas, sketching a diverse mix of culture and races with their choice bakery products. PrimaDeli has been managed by the Prima Food Pte Ltd, which is the subsidiary of food and service conglomerate Prima Small.

Setbacks encountered by Prima in the first years

Just coming into its first couple of years of operation, the company was already confronted with umpteen financial setbacks which include the struggle of regulating the continual fluctuations uh their income. In their every year report for 1970, Prima resolved the problem of swift increase of production costs particularly the vital organic products of whole wheat grain and also for the logistics of freight transportation costs. Due to the hike of price in production costs, the business experienced no other choice but to sell their goods and their by-products at higher cost in order to revive their lost and also to ensure that their profit margin is managed.

What was done to counter back the problem

Due with their concern over creation costs, Prima subsequently felt encouraged to purchase majority share-holds in multiple principal industries and companies. The company had taken many stake in Prima Modern Equipment Pte Ltd in 1990 and overran the businesses of Goodman Fielder Wattie (Asia) Pte Ltd, a corporation that specialises in food and drink area. These successes have allowed Prima to broaden their profile of long-term investment and therefore added to the cutback of creation costs induced by the business.

To further counteract the extreme price increase in market productions, Prima started focusing on export sales within the entire year itself. These options paid off munificently allowing the business to restore its lost and claiming a profit of up to S$2. 736 million for 1991 as to comparison to losing attained in the previous year that came up to S$5. 124 million.

Achievements

Over the years, Prima Small had successfully grabbed a few awards to bring up its name. A few of these awards are Risk Evaluation Critical Control Point (HACCP) and Singapore Franchise Draw.

HACCP which is the Risk Research Critical Control Point is a organized and scientific approach in indentifying, handling, production and prep of food to be able to ensure that the food is safe when used.

By achieving the HACCP honor, it demonstrates Prima Food has something which is universally recognized. This is especially helpful in allowing PrimaDeli to remain competitive more effectively in the world market and it also open potential market segments by increasing assurance in Prima's food basic safety and hygiene expectations.

With the Singapore Franchise Tag award in hand, it goes to show that Prima is qualified for having creditable professional expectations in the sectors of business tactics, management functions as well as business performance. This certainly puts Prima in a helpful position because on the few top picked companies are rewarded with this prize. By being outlined among the companies, it just would go to show that Prima is one of the few first class companies in conditions of franchising management. Presently, all PrimaDeli shops operate under the franchise system. What this system does offers franchisees with premium quality products as well as a broad opportunity of professional training and help which includes outlet concept development and marketing. With this, the machine allows for the franchisor to focus on food creation, research and development while partnering like-minded entrepreneurs to use the retail forward. In which, it assures a reliable business expansion. PrimaDeli in addition has received awards including Franchise Brilliance Awards Mark in recognition for its successful franchise system.

In 2002, Prima Limited picked up the Superbrand position in a party of its commercial endurance and significant contribution to the Singapore economy. This was accompanied by the 2004 SPBA Traditions Brand Award which recognises the business's market quality over 40 years. By attaining this honor, PrimaDeli is accepted to be one of the top brands in Singapore for market dominance, goodwill, customer devotion and overall market acceptance.

Recent years

In 17 may 2007, PrimaDeli being the first home-grown bakery franchise and the longest working Singapore food franchise, has received the Halal food certification from MUIS, the Islamic Spiritual Council of Singapore - an initial for an established Singapore bakery franchise. It is after 15 years, that PrimaDeli finally determined it is time to tap into the halal market and increase its customer bottom. With the Halal recognition, PrimaDeli is now able expand its wide selection of freshly-baked

pastries, buns, breads and premium quality cakes to the Muslim community at 38 retail outlets islandwide. The Halal certification provides confidence to the Muslim community that the food does not contain any elements which they are forbidden to consume, such as alcoholic beverages, pork and other beef that have not been ready relating to Islamic rituals. With all the Halal certificate at hand, has certainly put PrimaDeli in an useful position.

Unfortunately, on 19 November of the same yr, Prima Small was met with one of its biggest problems to date. Which really is a virulent circumstance of salmonella poisoning that triggered all 38 Prima Deli stores to be finished for a period of up to 3 weeks. The business was fined the maximum of S$5000 for retailing contaminated food and then for triggering more than 200 of its customers to show up ill after eating cakes purchased from Prima Deli stores. Sales substantially decreased to 15% in the immediate aftermath of the health scare, but were declared to be not as dire as the company had estimated. As a matter of fact, customers eventually went back back to the stores, and the company's overall sales actually rose 10% to 15% greater than their usual documents during previous business years. Many new rules and regulations were applied as a direct result of this case of salmonella poisoning, with all employees now necessary to undergo not merely routine health investigations, but also screening for salmonella. The business also implanted more cameras in production areas in order to monitor hygiene more effectively.

Company's subsidiaries

After looking at the organization's history and the many challenges so it experienced, let's now check out the way the company diversifies its services, not merely in conditions of producing quality baked products but also in cafeteria operations, fine dinner and casual kitchen. Apart from food drinks, Prima is also into the field of it to further increase their gains and use it to full gain.

In this section, a set of subsidiaries will be given just to show how Prima Limited has been successful in broadening their company.

List of subsidiaries under Prima Limited

Prima Food Pte Ltd

-PrimaDeli Asia (M) Sdn Bhd

-Confectionery Change (M) Sdn Bhd

- PrimaDeli Franchise (M) Sdn Bhd

PFS Pte Ltd

- Prima Noodle Restaurant Pte Ltd

PrimaDeli's Vision and Mission

The pursuing was extracted from http://www. prima. com. sg/core_biz/Frameset/index_foodsvs_manu. htm

http://infopedia. nl. sg/articles/SIP_1458_2009-02-11. html

Prima is also called "Bai Ling Mai" in Chinese, this means "100 year old wheat". It is employed to represent the company's vision of corporate longevity.

'PrimaDeli is Singapore's first homegrown bakery and confectionery franchise. It was launched in 1992 with the objective to transform the local bakery and confectionery industry by adopting modern development and management techniques, information technology and strong branding. '

From here, it could be seen that PrimaDeli is living up to its vision of durability of the company by inducing new ways to prosper their business live attaining a Halal qualification so as to broaden their selection of customer in conditions of race. Also they are always discovering different ways to further improve their baking solutions through technology.

An In-Depth Look

External environment of the company

Here we're going to go through the competition that PrimaDeli faces against other confectionary retailers. The physique below shows which 2 confectionaries customers prefer to than PrimaDeli. These percentages were bottom on a study which I did.

Confectionary shop: Percentage (%)

Polar puffs & cakes 81. 8

Bengawan Solo 4. 5

Breadtalk 31. 8

From here, it could be seen that obviously there's an enormous percentage of men and women which will decide on Polar puffs & cakes other than PrimaDeli. There's a very fierce competition taking place between these two popular retailers.

Let's now take a look at what consumer's feel PrimaDeli should improve on. Again these results are base on the response I've become from my survey.

Percentage(%)

More variety in selection of pastries, puffs, cakes, etc

60

Reduction in price

10

Customer service

20

Cleanliness

10

This clearly demonstrates customers want PrimaDeli to provide more variety with their pastries because they would like to see something new, ground breaking and take their sight and preference.

Task Environmental Analysis

Threat of new entrants is High

There are more and more confectionaries sprouting

They are mostly positioned in heartlandsHaving analyzed the external threats, it's time to go through the factors directly adding to a good competition among confectionaries in Singapore a Porter's Five diagram.

Bargaining ability of potential buyers is High

There's an enormous choice of confectionaries to choose from

So, consumer will choose those that are cheap & has a multitude of pastries

The individuals are those that will decide which bakery is the best

Supplier Power is average

Different confectionaries has different suppliers

The quality of products depends upon the suppliers

There are still a wide range of suppliers to choose from

Rivalry is Intense

Number of confectionaries in Singapore is high

There can be an increasing range of pastry shops coming up with new ways to catch the attention of consumer's interest ;promotions

Product and Technology Development is medium

With the frequent update of technology, some confectionaries are employing this with their benefit

This aspect can be used to improve in their food quality

Internal Environment

Management

Here I'll do a marketing combine to compare both PrimaDeli and Polar.

PrimaDeli

Product

The main product for PrimaDeli is a range of top quality pastries, buns, breads and cakes.

Price

The range of prices varies will depend on the type of confectionary that you're buying.

For cakes it starts from $15 and can are as long as $45++ in line with the flavour and weight of cake.

Outlets

Up up to now there are 38 retailers in Singapore

Polar

Product

They specialises in mainly puffs and cakes

Price

Pricing varies to the merchandise bought

Cakes starts from $10. 80 - $45++

Outlets

As of now, there are 33 shops and 70 takeaway counters at petrol stations

Observations and Conclusions

Critical success factors

To determine the critical success factors of PrimaDeli we'll have to once again check out PrimaDeli's objective.

Mission

To transform the neighborhood bakery and confectionery industry by adopting modern creation and management techniques, information technology and strong branding

Critical success factors

They should put in place their management techniques by producing and thinking about ways to improve on their variety of confectionaries

In order to truly have a strong branding, they have to think of new modern production ways to market their products

They also needs to keep up with the market competition and open up more outlets

Strategic problem

PrimaDeli should start considering in increasing the deviation of their pastries because with an increase of pastry shops approaching, they will lose out if indeed they don't change their strategies in pulling in more customers. Also, they'll need to have more outlets in order to contend with the many confectionaries out there.

Strategic Alternatives and Recommendations

PrimaDeli is doing effectively in terms of their diversification in other aspects apart from just in selling pastries, like franchising into other countries. However, in the area of marketing with their confectionaries here, they may be a bit short of investing in more matter.

They should come out with different strategies and market plans to yank in customers to boost their income. Although being the first home-grown bakery franchise and the longest working Singapore food franchise, they still have a chance to lose their customers to other shops. For instance, Polar puffs & cakes. Polar is now gaining a great deal of attention and attractiveness from consumers because they believe that there will be more varieties there somewhat than in PrimaDeli. With the many campaigns that Polar has and also taking into consideration the number outlets it has when compared with PrimaDeli, it's only a subject of time before PrimaDeli will lose out their customers.

Conclusion

In all, PrimaDeli has done Singapore proud by being one of the longest operating Singapore food franchise and also first home-grown bakery franchise. It has go out into other countries and gained the trust of other companies to get and use their products. That is something that not many local companies have had the opportunity to done. PrimaDeli likewise have proven that their criteria are recognised world-wide and so are their food beverages.

However, PrimaDeli have to step it up and become in speed with the current market. That is to ensure that they don't fall back of.

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