1. Executive Summary
South Beauty has setup 70 restaurants within 18 cities around China currently, all the units are profitable, that will accelerating the company expansion at mainland and exploring overseas markets. According to the South Beauty plan, the mainland operation keep for profit, but the exploration of international markets is mainly for branding. The company also creates a new brand called “Steam” to setup fast-food restaurants. Meanwhile, at the preparatory stage of cooking, the South Beauty plans to strengthen its efforts in standardizing processes to control the costs and quickening expansion. This article makes the market entry plan for South Beauty expansion to Singapore Market. 1. First part, understand the background of South Beauty Restaurant of China. 2. Second part, understands the market environment of Singapore, and bases the SWOT to analysis South Beauty Restaurant for market entry strategies selection. 3. Last part, built a market entry plan with Simulation data of marketing budget for South Beauty Restaurant entry to Singapore market.
The international market expansion is an important decision for every enterprise development. At present, Chinese catering enterprise are backward phenomenons at international expansion. As the first brand of South Beauty in Chinese catering industry, has a strong development potential lead by chairwomen Ms.Zhang Lan. With the development of the enterprise, The South Beauty expansion to foreign market has become inevitable. In order to realize the expansion strategy better, make Chinese famous catering enterprises entering Singapore which is the target market, this paper introduced The South Beauty background and history, understand the Singapore market environment, through the SWOT method, Analysis and budgeting the South Beauty enter the Singapore market. If The South Beauty can smoothly enter the Singapore market, become a crucial step of the Chinese catering enterprises to towards to internationalization development, also is the key measure of national economic development. At the same time, also promote the unique Chinese Food to the people of all ethnic groups in the world.
2.2 Background of South Beauty Restaurant
The South Beauty Restaurant (Chinese named: Qiao Jiang Nan) was founded on May of 2000 by Ms Zhang Lan, She opened the first restaurant of South Beauty in CBD international trade center of Beijing. In 2002, the first exotic restaurant launched in Times Square of Huaihai Road in Shanghai, that is South Beauty expanded beyond Beijing since then chain restaurant begins. At the end of September 2012, South Beauty Restaurants has founded 70 restaurants throughout 18 cities within 15 provinces of China. With many years’ experience and development to possessing nearly 70 restaurants, make it becoming the chain enterprise leader of Chinese style dinner. The South Beauty Restaurant Built “Fashion, classical, grade, reverence” as corporate business philosophy to show their unique enterprise spirit. Propagate culinary culture of the five thousand years traditional culture of china, to devote the South Beauty Restaurant to a world-class Chinese dinner brand as the pursuit of business objectives.
The founder of South Beauty keeps the corporate social responsibility (CSR) into their enterprise culture. They announced was “CSR is not only the key constituent part of South Beauty for developmental strategy, but also the key constituent part of South Beauty’s enterprise culture”. And separate the CSR to 4 parts as below: 1. For Investor: The Board devotes South Beauty to healthy food, keeps the profit margin for the enterprise, and makes shareholders get optimistic prospect and lasting for their investment.
2. For Society: According to the Government Law, the enterprise pays the tax, performs the civic duty, and creates more employment opportunity, become pillar enterprise in catering field. 3. For Consumer: Provides the high quality foods, healthy dishes to the consumers with more professional service. Make customers satisfaction. 4. For Staff: Creates a platform for employees to perform their abilities. Offer study and promotion opportunities, make the staff pleasure, positive and has the sense of responsibility in work.
2.3 Food features of South Beauty Restaurant
Szechuan Cuisine is the one of Chinese eight cuisines series which has broad and profound cultural connotation. With different dishes, there are different delicacy feelings and all dishes are exquisite, it has red-hot tastes and strong delicacy famous in domestic and abroad. South Beauty is the leader brand in Chinese catering industry which has propagates the spirit and inherits of the culture of Sichuan cuisine. Based on the features of Chengdu and Chongqing cuisine, creates the real spirit which reaches to boutique Szechuan cuisine in South Beauty. In order to guarantee orthodox taste, the delicious ingredients including seasoning which come from the globe and local of Szechuan ware selected by South Beauty. It is good at variation such as makes the color, aroma and taste expressed fully, also makes flavor suit the corresponding dish.
All of these have presented a real boutique Szechuan cuisine South Beauty features are aims at creation, health and fashion, based on Chinese traditional Szechuan cuisine, assisted by elements of Cantonese cuisine and Tan cuisine, to digest the classical culinary culture, break through tradition and pursue perfection. Create the model of “Chinese food eaten with western method” and “combine catering with art” in China firstly. South Beauty wins the worldwide praise depend on creative management idea and fashion, healthy, delicious boutique dishes.
South Beauty to promote the Chinese food culture over the years, advocating a healthy life style as their responsibility, spare no effort from the traditional culture of the deep foundation to absorb nutrients, committed to innovation and improvement, to create another legendary food myths. The South Beauty dishes are different from others; the ordinary charm relies in the quality of raw materials carefully selected, on the inheritance and innovation of traditional cuisine methods, and rigid guarantee of dishes nutrition and worthy pursuit to the visual effect. The South Beauty Boutique food dishes Depend on strictly requirements are fully expression to modern culinary art.
2.4 History of South Beauty Restaurant
• On 20th May 2000 South Beauty’s first brand restaurant was launched in Guo Mao of Beijing and which marks South Beauty march formally into Chinese style dinner market. • On 16th Jan 2002 South Beauty shop located in Times Square of Shanghai was launched which marks South Beauty’s cross-regional business begins. • On Mar 2007, South Beauty becomes formally catering service provider for the eight competition stadiums of Beijing Olympic Games of 2008. • On Apr 2007, South Beauty joins Air France and Air Netherlands to launch new Chinese style service on airplane. • On Nov 2007, South Beauty is formally awarded “Chinese famous trademark” and obtains the sole protected trademark by international law in China. • On Apr 2009, South Beauty formally signs contract with Shanghai World Expo, the content is to provide Food Service for Chinese and foreign guests. • On Jul 2010, South Beauty changes its name for South Beauty Limited Liability Company. • On Jan 2012, South Beauty sets up the first sub-branch in Taiwan.
3. Market environment analysis
3.1 Culture and Environment of Singapore
Singapore has been established by Thomas Stamford Raffles on 1819, as a trading post, the small sea town attracted migrants and merchants from the world especially the China, the Malay Peninsula, the Indonesia, the Indian sub-continent and the Middle East. The country’s geographical location and commercial success make Singapore have the one of the most remarkable aspects—the truly cosmopolitan nature of her population. The better prospect has attracted immigrants from all over the world which they brought their own culture, language, customs and festivals, through intermarriage and integrated formed a multicultural society, giving Singapore is full of vitality and diversified cultural heritage, also became one of most cosmopolitan cities in Asia.
The main ethnic groups in Singapore are Chinese, Malays, Indians, Peranakans and Eurasians. The ethnic Chinese form 74.2%, the Malays 13.4%, the Indians 9.2%, The Eurasians, Peranakans and others combined 3.2%. Singapore near 20% expatriates of non-resident such as blue collar workers and white collar workers. In Singapore’s constitution, has adopted representative language from four main ethnic or “racial” groups. The official languages are English, Chinese, Malay and Tamil. For recognition of the status of the Malay people as the indigenous community, the National language of Singapore is Bahasa Melayu or The Malay Language. The varieties of language have obviously influenced on the English that in Singapore, especially apparent in informal English, and English-based Creole that commonly known as Singlish.
The hybrid form of the language which includes words from Malay, Chinese, or Indian are representing an identity for many Singaporeans. The English and Mandarin are the commonly used languages in Singapore. Most of Children growths up bilingual from infancy even many people speaking three or four. They also learn own mother tongues to ensure that stay in touch with traditional roots, such as different Chinese dialects includes Hokkien, Teochew, Cantonese, Hakka, Hainanese and Foochow. The various cultural precincts and religious landmarks around the island ensure to catch a glimpse of a multicultural society of Singapore which includes the impressive history, cultural diversity and lifestyles.
3.2 Food Beverage Industry in Singapore
Singapore serves the rich flavors and foods with its Multi-national culture, find out the local cuisines on the menu which reflection multicultural of Singapore. In diverse neighborhoods are available in food centers and restaurants across Singapore, a variety of flavors cuisines such as Halal Malay, South Indian Vegetarian Thali, North Indian Naans and Briyani, Cantonese Dim Sum, Hainanese Chicken Rice, Peking duck, Hokkien Mee and Popiah (The Spring rolls). The Main gastronomic representative in Singapore is Chinese cuisine, and the Chinese believe the combining food ingredients to enhance the harmony and used for symbolic. For example, the noodles for longevity, the oysters for good fortune and the fishes for prosperity.
The Singapore offers an opportunity to trial the dishes from the different parts of China, the Cantonese dim sum, the Spicy dishes of Szechuan, Hainan Chicken rice, the Bean curd of Hakka, noodles of Hokkien and seafood porridge of Teochew, especially have local Chinese favorites such as chili crab, Bak Kut The, Fish head curry or Rojak. A lot of Indian foods in Singapore, whether from southern or northern of India sub-continent, the Vegetarian Thosai, fiery curries enriched with coconut milk. Tandoori, fluffy naan breads and creamy yogurt based dishes. The Indian cuisines are infuses with flavored spices such as cardamom, cloves, cumin, coriander and chilies. Try the local Indian-Muslim dishes, a taste of popular in Singapore, such as Roti Pratas, Murtabak, Nasi briyani and saffron rice dish.
All the dishes go well with the absolutely satisfying creamy and frothy milk tea—Tek Tarik. The Malay cuisine always savor an array of spices and herbs, the ginger, turmeric, galangal, and lemon grass, curry leaves, pungent Belachan (shrimp paste) and chilies. The cuisine put the spicy but without unbearably hot. Peanut sauce occupies a pride of place in dishes of Malay, like Gado Gado, fried bean curd.
From the unique Peranakans offers a blend of Chinese, Malay, Indonesian flavors called Nonya food, the famous Nonya dish mix rice vermicelli, coconut milk and garnished with seafood or chicken, combines the spices and aromatic herb such as lemongrass, chilies, tamarind paste, shrimp past, create rich cuisine of braised dishes. Singapore also offers a wide range of international cuisines such as Thai, Korean, Vietnamese and Mongolian food. Whether the Japanese Sushi, the Italian Meal and Casual French bistro. All can find all in the city state. 3.3 SWOT analysis of South Beauty Restaurant
4. Market entry Plan
4.1 Objective of market entry plan
Singapore is an open economy country and strongly committed to maintaining the free trade market, pay more attention to public sector service quality, support every investor’s development positively. Analyze the Singapore market entry of The South Beauty with SWOT method, understand the South Beauty weaknesses and threats when enter the Singapore market, through their own advantages into market opportunities. Market entry plan to use the results of SWOT analysis, establish market entry strategies, and planning necessary budget of market entry, Support the management team to make marketing decision with these references.
4.2 Market entry strategies
It is recommended that South Beauty consider the following marketing strategies and issues before entering the Singapore market: 1. Management Localization: whether the local Management team or the local agent, Better to understand the local market and consumer habits, will support the product promotion and market development, improves the competitive advantages of South Beauty. 2. Language Support: even the English is the main Language of Singapore, but Singapore ethnic characteristics, most of people speaking English but miscellaneous various national Language, multilingual services to meet different customer needs, but positive guarantee clarity Westernized understanding of English is also important.
3. Official Endorsement: Singapore government authentications marks are the symbol of accept by Singapore consumers, to reach these standards for the authentication is the requisite of the market development. 4. Social effect: public figures in Singapore has great influence, celebrity effect to participation actively of market compaign,positive to participating the public topic, to bring more restaurant visibility and customer flow. 5. Product Control: Singaporeanvery attention on food safety and quality of service, the products ensure to safety, and continue to improve the service quality, will be affect the business successful. 3. Marketing Strategies
How a product is marketed and promoted will have a major impact on its success in Singapore. For the South Beauty expansion the market into Singapore, the Marketing mix is comprised of four approaches as following as (1) Products and services, (2) Advertising and promotion, (3) Distribution, and (4) Pricing. 1) Products and Service: The quality and taste is most important things for catering business, a lot of Chinese food in Singapore and South Beauty must be offers the unique Chinese cuisines with his special materials and cooking methods. Another most of important thing is to get the Hearth Authority from the Government to make consumer’s trust. Also the exceptional customer service very important to making the customers’ satisfaction and the business successful.
2) Advertising and Promotion: For the new coming restaurant in Singapore will select several different ways for their advertising and promotion campaign, attracting the consumers focus and trial. To keep some of the customer’s royalty. The methods of advertising are News paper; Television, Ratio, MRT Post, but the internet is a new type of method for the advertising. All the advertising can be using the star effect such as Ms Hsu from Taiwan. The promotions have some ways for the South Beauty. For example, Credit card payment promotion, new launch cuisines voucher, members discount or Free offers etc. 3) Distribution: The restaurant distributions are base on internal of operation. When the customer sit into the restaurant, the menu clean to View, the order convenient, the serving velocity, and easy payment, finally clean up fast. The others are materials and catalogues enough and fresh, keep the customers satisfaction. 4) Pricing: The pricing scheme is designed base on costs with fair margin, but must to be competitive, accord with consumption level. . Marketing Budget Plan
Singapore is an important part for any enterprise can be used as a springboard into the international market. And the multicultural market is good adptive process for the internatinal development strategy of The South Beauty. Based on the analysis of the The South Beauty, we can clearly found that Singapore is not only a good market, at the same time to the first brand of Chinese catering enterprise; it is also a rare experience. Singapore’s government management and social culture if big different with China, but a large extent reflects the overseas Chinese and westerners to Chinese food attitude. With The South Beauty enter Singapore market, can from higher taste to understand and familiar with the Chinese food culture for Singapore residents, and promote the diversified food culture in Singapore.
7. List of References
Fighting off Sars to make a business of Sichuan cuisine (11.2011), BBC News, http://www.bbc.co.uk/news/business-15670333
Restaurant chain South Beauty may relaunch IPO next year, (12.2011), China Business, http://www.scmp.com/business/china-business/
South Beauty’s ugly side exposed, (09.2011), People’s Daily http://english.peopledaily.com.cn/90882/7587516.html
Food & Beverage in Singapore, (07.2011), New Zealand Exporter Guide
Kristie Lorette, Marketing Strategies for Food Brands, (2011) Demand Media
Singapore Food and Beverages Industry Comparative Analysis and Companies Ranking, (2011), Market Publishers, http://www.marketpublishers.com/