Why Expand Breadtalk in Japan Essay Example for Free

why Expand Breadtalk in lacquer Essay* Executive summaryIn this assignment The focus would be on why I would suggest BreadTalk to lead its presence in lacquer a pertinacious with supporting sources and references broken down into introduction, market trend, environment analysis, marketing mix with 4ps and competitors analysis, implementation, military rank and assert, over solely breed, justification and references.* IntroductionThe first flagship butt in that BreadTalk started from was from a little humble store in Bugis Juction located in the City of Singapore. It was in July 2000 started with a dream fuelled by the desire to bring a in the raw concept of carbohydrate making to a whole bare-assed level by introducing their feeling see thru kitchens which allow their chefs to showcase their expertise upfront, sharing the preparation of the freshly browned breads. ( BreadTalk, 2012)BreadTalks mission is to be Leading a new lifestyle last with new, innovative changes a nd creative differentiation to craft products with warmness and vibrancy (BreadTalk,2009) BreadTalks Vision Establish BreadTalk as the foremost international, trend-setting lifestyle bakery brand (BreadTalk,2009)In 2012 their dream statement changed to We contain a sh ared vision to be an international trend-setting lifestyle brand. To this end, we have interpreted bold strides in introducing new provender culture with revolutionary changes and ingenious differentiation. Our products are too crafted with high temperature and vibrancy to the highest quality. We are confident that our strategies will lend us a distinct competitive vantage and a platform for continued growth. (BreadTalk, 2012)* Market Trend environment analysis(Macro Analysis) eating habits Why Japan Why?It is long known that Japan is a fast pace city filled with convenient store popping up almost every(prenominal) corner of the street in Japan by victorious an example of the success of 7-11 in Japan which is now own by Seven I Holdings Co., Ltd. 7-11 in Japan have 14005 stores lowd on 29 February 2012 as compared to North America which have hardly 7149 stores base on 31 December 2011.(7i 2012) Its sale of provender items make up of 64.9% of total gross revenue. (7i 2012) found on an article publish on 2 April 2012 claimd Wave of Grain by slate.com have suggested that wheat based products deal bread and noodles are more popular then rice products in Japan Adding on to the trend of demand for bread, in 28 September 2010 an article written by Juniper Foo for CNet with the title of Make bread out of rice with S few(prenominal)os Gopan noned that bread is such a popular consumed product in Japan that Japanese inventor manage to turned rice into flour that is suitable to make rice breads and the machine was sold out despite its high cost of approximately 50,000 Yen. Western influence on Japanese have more Japanese choosing to dine out quite an than the old tradition of eating at home and have chosen more Ameri chamberpot fodder over Japanese food.Food such as Beef are constantly becoming a primary diet for Japanese to eat. (CafeTerra, 2008) In an old article called Sweets in disguise back in 2005, It was suggested that Japan consumer give care things that are sweet oddly to the younger generation of women in Japan. (Trends in Japan 2005) When it comes to behaviour trends, Japaneseconsumer are seen to be cutting on spending and standardized dinning out and holidays and shown an gain on instant food consumption as shown in Research done by five hundred consumer some(prenominal) genders nationwide, aged 16 and above (Research Panel Asia May 2011) On top of that, Japanese consumer are similarly seen to be hunting for the cheapest deal and flocking online to cut cost (Brian Salsberg, March 2010)Green tea culture is still strong in Japan based on a research data run across in 2009 shows that Japanese consume approximately 80000 tons of green tea yearly (S.C August 2009) another(prenominal) trends on Japanese eating habit includes a shift to healthier more organic food as mention in this article called just what the doctor ordered. (Trends in Japan August 2008) adding onto both eating habit and organic food, in another report done by Oceanus, titled Japans Consumer Trends and Opportunities have suggested that mother play a big role in deciding what food is for the family and with the continues scare of disaster and radiation leak etc, they become really particular with what inside the food contain. (Oceanus market March 2012) Last of all, there is a growing trend of families in Japan becoming littler with the increase of singlehood and people biography alone or with a friend/etc over the past fewer years. base on the figure taken from Euromonitor This suggest more people would eat out in Japan instead (gov.mb.ca, March 2010)Base on http//data.worldbank.org, it stated that Japans average annual income per person is about $45,180 USD for 2011 which translate into about 3.53161885 million Yen Base on japan-guide.com, an average meal expense can range from 500 yen to one thousand yen and more expansive meals can cost 1000 Yen 3000 Yen. (do note as of 30 july 2012 exchange rate is 1000 yen to $15.96)* Marketing blend in 4Ps with competitor analyzesPlaceWhen it comes to stead, BreadTalk is known to set up its stores in high human traffic location and its concept of enable guest to pick and purchase fresh ready to eat bread hands down within a very short time is what pulls customers to their shop taking example from Singapore outlets similar 313 Somerset shopping mall which is high in human traffic and strategically quad intimately the entrance of Somerset MRT also known to be the tick transport station. (BreadTalk, 2012)So based on a figure of retail rental fee in Singapore as compared to capital of Japan published on July 2012 by Barbara Farfan, Singapore rental retail space is about $455 USD in 1Q 2012 per sq feet annually as compared to capital of Japan which is $1025 USD per sq feet annually (Barbara Farfan, July 2012) As for their competitors like Bread studio which is well establish in Japan, they also place themselves in high human traffic sphere like their train station. As the function on the left shows where Bread studio is located which is at Amagasaki station (Kobeya Baking, 2011)(Kobeya Baking, 2011, Google map)Whats More, Tokyo would be the outstrip start up place in Japan as its filled with the highest population of 8.956 million residents compared to its scrap highest city Yokohama which have 3.690 million (Yasunori Sato May 2012)ProductBreadTalk is an conventional brand with presents spread out internationally with 17 countries mostly in Asia countries and its famous for its best selling bread known as the dental floss which is a unique soft light bread with flavoured with egg toss and topped off with slews of pork floss. (BreadTalk 2009) Hence a hint for a product should be focus on having a stronger and sweeter taste for its bread as suggested earlier in the report based on current trends in Japan. BreadTalk could administer Having a range of organic product that would be get to very heath certain customers in Japan with a possible light packaging stating any possible chemical or preservative as mention above under the current trend section with the article title of Just what the doctor ordered.Another new possible resource product opportunity is that BreadTalk can utilised Sanyos Gopan rice to bread making machine to launch new bread product line that is pencil eraser for those allergic to Wheat based products. (Slowfoodrocks.com,2011) Especially When the machine which was first launch in October 8 2010 and was on the whole sold out even with the price tag of 50,000 Yen. Do show the demand of Rice base bread in the market of Japan. (Juniper Foo, 2010) Another great selling point of BreadTalkwould be its wide mannikin of dif ferent unique creative creation of bread that appeals to many consumers as it focus is on world different from the rest.Unlike Many Japanese bakery product that is heavily and beautifully packaged like Kobeyas bread which is part of Bread studio Japan (BreadTalk potential competitor in Japan) as seen in the image on the left One competitive suggestion that BreadTalk have is simplicity. Where the actual product pompousness like the one on the right should be able to sell (source image Kobeya,2012)(image sourceBreadTalkme.com) without any heavy packaging at all that cover the product up or even no packaging.PromotionAs mentioned earlier since BreadTalk is such an established brand in Asia countries, having to set up a foot print of one of the must visit city in the world, Tokyo city which have seen a record of 8.6,million tourist in 2010 and out of it 2.44 million are south Korea visitor which BreadTalk is established in along with 1.41 Million from China which BreadTalk existed in and 1.27million from Taiwan which BreadTalk is established as a Joint-Ventura with Lin Cheng Yi in Taiwan back in 2005 (BreadTalk 2012) Does show a lot of potential BreadTalk patrons tourist in Tokyo to visit a BreadTalk establishment in Tokyo. (Mayank Gupta, January 2011) Naturally, Japan is normally cited for crazy wacky ideas. A suggestion of how BreadTalk should promote their products is though an electric paper/flyer. As a limited one time ply for market penetration and that should make a bigger impact on consumers mind of a new upcoming brand in the market (Amar Toor, March 2012)Price.Like any other bakery especially dealing with competitive low price products, the issue with inflation is al routes looming somewhat with possible price influxof prime stall rental rates, change is resource price like flour, eggs, etc and possible new demand on worker pay increase and changes in utilities bill. Take for example based on the static price history of flour from (ers.usda.gov, 2012 ) its shows that in Jan 2010, prices of flour were $153USD per metric ton but in Jan 2011, the prices rose to $272USD per metric ton.As of mentioned earlier regards to rental fee in Singapore and Tokyo, $455 USD compared to $1025 USD in Tokyo do suggest that whichever item that BreadTalk is selling in Singapore have to sell it at reprise the cost which is surprising competitive in the Japanese market take for example a bare(a) slice of bread with butter would cost 150 Yen which is about $2.40SGD (Heart-Bread shop) up to 1365 Yen for a loaf of Bread which is about $21.70SGD (shop.gnavi.co.jp) Hence pricing for BreadTalk going into Japan wouldnt be of an issue.* Implementation, evaluation and control1.First 3 calendar months.Selecting a High human traffic area with easy transportation system like beside/inside a train station located at the very heart of Tokyo and livery the same open concept store setting where it enable curious onlooker to see the physical process of creating a perfect BreadTalk bread. Also building a brand imagine with customer and bringing some Singapore cultural taste like the floss Bread into Japanese daily diet with a twist of taste adjustment of the product to be a little stronger for Japanese liking. To execute a more lasting impression, a suggestion of issuing electrical paper flyer for the first month of operation as a limited edition advertising item as people whitethorn be tempted to keep it due to its uniqueness and with each time potential consumer look at it, Theres a possibility they would try it and with those who have already tired BreadTalk, there is a chance that they may run to buy it again.To pretend more awareness, electric paper advertisement should be place inside train station and inside the train itself as public train transport is the main and economical way of travelling around in Tokyo. (Japway.com) and maximized band exposure for the next 6 months. To build Japans BreadTalk website, have a channel of collec ting customer feedback in-stall by either filling feedback forums ordropping off e-mails at the Japans BreadTalk website By the end of 3 months. i suggest that the way to measure success would be based on the ability to pay the shop rent, resources and the staff working in the shop a long with some advertisement fee. If earning falls short, i suggest having a free bread day to create more brand awareness and hopefully get people more addicted to BreadTalks product.2.Following 6 monthsThis side by side(p) 6 month would be use to bring in more Breadtalk Varieties based on customers feedback on what food items is prefer in terms of taste and also use existing sale figures to regain whats the best selling product and develop more varsities on it for example if the Japanese love BreadTalk cream cheese bun, how about coming out with wasabi favour cream cheese buns? It can be done by a series of promotion like having 1 free wasabi bun for every 3 buns purchased.Also the introduction of f ree small bun sampling would be telling to let consumer try new type of products. As mention in the earlier part of this report writing, to stand out from other competitors is have loaf of bread made from rice flour to target customer who are allergic to wheat base product. Factor to determine if success or not would be based on not only the ability to make put on but also cover at least half of the start up fee. If target is not met, the suggestion of having all day student and senior citizen rates for BreadTalk products to be implemented to drive up sales.3.The next 3 months.It would be focus on Expansion on of BreadTalk outlets to other high human traffic areas that area are near to transportation hubs and the implementation of home and office delivery system via walking to those customer who stay nearby the outlets within and to those who stay near train station within Tokyo City. To create more awareness of the delivery system, advertisement should be carried out in train sta tion around Tokyo to tell consumer that delivery is now possible. success would be based on popularity of delivery assistant used and at the same time sustainability of outletsprofit. If profit falls into loss, the company may want to consider having contracts with schools and offices to supply fresh buns as a mean of stable income.* ConclusionBased on the report and all reference and suggestion and marketing ideas, It seem to me that Tokyo would be an ideal place to start up a new outlet for BreadTalk as opportunity with a potential kitty of 8.956million customer is available not counting the tourist figure of 8.6million that visited the city during 2010. Its concept of being like a convenient store just like 7-11 would possibly bring in good profit and expand in no time with the trend shifting to fresh fast quick salutary cheap and convenient food products not forgetting the good infrastructure in place for easy approach to customers citywide.Reference Listhttp//breadtalkindia. com/html/aboutUs.htm ( 2009 vision and statement)http//www.breadtalk.com.sg/ourstory.php ( concept and vision statement change 2012)http//www.7andi.com/en/ir/pdf/annual/2012_05.pdf ( Number of 7-11 stores in Japan compared to North America)http//www.7andi.com/en/ir/pdf/annual/2012_13.pdf ( Food sales percentage in 7-11 Japan)http//www.slate.com/articles/life/food/2012/04/wheat_in_japan_how_the_nation_learned_to_love_the_american_grain_instead_of_rice_.html ( Japanese prefer Bread over rice )http//news.cnet.com/8301-17938_105-20017956-1.html (rice to bread flour machine and bakery)http//breadtalkindia.com/html/breads.htm (Floss Product)http//www.breadtalk.com.sg/loc_central.php (location)http//www.ers.usda.gov/datafiles/Wheat_Wheat_Data/Yearbook_Tables/Domestic_and_International_Prices/WheatYearbookTable20.pdf (price flour change)http//www.cafeterra.info/2008/11/food-and-health-in-japan.html (Japanese chose to eat out more and more crab in their diet)http//web-japan.org/trends/lifes tyle/lif051221.html ( Sweet Trend)http//www.researchpanelasia.com/newspr/pressrelease/2011/may_11th.html (total spending cut)http//www.mckinseyquarterly.com/The_new_Japanese_consumer_2548 (new Japanese consumer trend) http//www.teatronaturale.com/article/952.html (green tea demand)http//web-japan.org/trends/07_food/jfd080808.html (Trends in Japan )http//www.oceanusmarketing.com/2012/03/24/japan%E2%80%99s-consumer-trends-and-opportunities/ (organic food and possible food danger in japan)http//www.gov.mb.ca/agriculture/statistics/agri-food/japan_consumer_report_en.pdf (statics on living household)http//data.worldbank.org/indicator/NY.GNP.PCAP.CD (average annual income per person)http//retailindustry.about.com/od/famousretailers/a/Highest-Retail-Store-Rental-Prices-In-The-World-Global-Comparison-2007-2012.htm (Retail rental fees)