Listed on the SGX Catalist in January 2008, Old Chang Kee is one of Singapore’s most recognized household brands, with a promise to provide convenient alternatives to fast food for its consumers.
Ranked 15th amongst snack joints chain around the globe in May’s issue of Leisure and Travel Magazine in the States, Old Chang Kee currently owns more than 70 outlets in Singapore, China, Malaysia, and franchised outlets in Indonesia and the Philippines.
To deliver superior quality of hot finger food and ready made meals at a value-for-money price positioning; in a clean, and customer friendly retail environment.
Old Chang Kee aims to refine and modernize traditional food recipes for the modern and multi-cultural customers and an alternative to fast food for the city dwellers.
The Group’s product portfolio consists of a wide variety of over 40 other products such as deep fried items and other local delicacies. Endearingly known as “Curry-O”, Old Chang Kee’s signature curry puff has over 52 years of history in Singapore. In order to differentiate products from others in the market, Old Chang Kee has developed distinctive brand names such as “Yam K8”, and “Fishball OnStik”.
B. Situation Analysis
A. Microenvironment – Internal Factors
Company’s resources. Old Chang Kee has approximately 900 employees, working in 70 different retail outlets. There are also 2 central kitchens that are certified Halal by MUIS.
Performance. The popular items in Old Chang Kee includes their signature products such as the Curry Puff and Sardine Puff. On average, 500-800 puffs are sold daily. This amonts to the sales of approximately 18-25K during a non-festive month and 20K-30K during a festive month. Sales generated in the heartlands are generally higher than the city areas due to rental costs.
B. Microenvironment – External Factors
Competitive advantage. In order to appeal and entice consumerism, the Group has edged over their competitors for they have the ability to cater to a smaller yet significant consumer market – Muslims. It is a small and profitable group that should not be neglected from the Group’s business plans.
Strategic Alliance. Under Brandpact, an initiative spearheaded by the Government, Old Chang Kee works with brand experts to refine and improve business methods. All outlets are staffed by employees who are trained in product knowledge, customer service and invetory control. Old Chang Kee also implements an ERP system that will better manage inventory control through real-time data on the products that are sold, hence improving replenishing time.
Demographics. The total population in Singapore is estimated to be 8588.5(‘000) in 2012 and it comprises of 77% Chinese, 14% Malays, 8% Indians and 1% others. Majority of the population is between 15-64 years old, 4599(‘000) in 2012.
Economic. According to the Monetary Authority of Singapore, Singapore’s inflation was 7.5% in the month of August. The food prices alone rose by 8.5%. It is said that the consumer price index (CPI) was boosted by one of the factors which is the higher costs of food.
Cultural. The Government’s bid boost fertility rate in Singapore has made flexi-work arrangmenents possible. This changing job demand and fast paced lifestyle will attract consumers to purchase ready made meals or finger food at Old Chang Kee.
Technological. Technological advancement in today’s world has made life easier for consumers and businesses. The online delivery option available in Old Chang kee will open a new segment of its market.
Courtney from Study Moose
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