1. Introduction

Singapore is a popular retailer market for both citizens and foreigners with a

variety brands and products. The consumers have a lot of choices to choose where

to find retailer markets. It has a wet market or traditional and supermarket or non

traditional and online shops to buy some products. Wet market is a having a fresh

products and supermarket also selling a fresh products including the expired,

hygiene, compotation and others, with the strong economic in Singapore, all

citizens and foreign can afford to shop in more modern location for more

comfortable and more choices.

The concept of marketing is very important for company whereas there are

always interacting and communicate with consumers. In this assignment, we are

going to define the market stores between Cold Storage and Sheng Siong. These

two companies have a highly competent in the market. And the market’s target is

differed from their segments. Beside the multiculturalism people in Singapore in

which there are four major races such as Chineses, Malays, Indians. The market

segments of needs and wants are very high. Those two brands have a big nuber of

stores in Singapore retailer market. Cold storage and Sheng Siong already have

their own market target with marketing strategies in low and high incomes people.

2. The Cold Storage and Sheng Siong targeting and segmenting area

Sheng Siong was founded in 1985 by three brothers (Hock Eng, Hock Chee

and Hock Leng) as a small supermarket selling groceries, fresh foods and

necessities to nearby residents. The first Sheng Siong store was opened by BLK

122 Ang Mo Kio Ave 3 and it’s still operating today. (Spring Singapore, 2009)

Sheng Siong is one of the largest retailers in Singapore right now with the annual

revenue of $628 million. It has 23 stores spreading throughout the whole island.

Ever since it first opened, Sheng Siong has tried to offer the lowest market price to

its customer. With an emphasis on offering value-for-money products, it targets a

customer base of low-and-middle-income households. That’s their main segments.

Sheng Siong store locations (www.shengsiong.com.sg, 2011)

Sheng Siong is usually located near or in the HDB area because that’s

where most of its consumers stay. You can’t and won’t be able to find any Sheng

Siong stores in downtown areas like Orchard. The image of Sheng Siong doesn’t fit

in there. When the customer thinks of Sheng Siong, the store is always dirty, small,

crowded and slippery. Therefore it won’t go well with the professional and

cleanliness of the downtown area.

On the other hand, Cold Storage is also a big supermarket chain in

Singapore. Cold Storage was established in 1903. With over 100 years of

experiences, Cold Storage is the market leader. The Cold Storage supermarket

chain consists of 39 stores island wide that sell high quality product and offer great

services, 6 market places stores which specialize in selling widest range of quality,

good value, and international merchandise for customers with high standards for

their living. The customers that Cold Storage is targeting are completely different

from Sheng Siong. It aims for people with high incomes and standards. The Cold

Storage outlets and staffs look very professional. You can immediately tell that it’s

different from Sheng Siong.

The prices of the products in Cold Storage are generally higher than the

other supermarkets because of that reasons. In addition to that, Cold Storage also

partners with SingaporeONE to offer the first cybermarket in Singapore to its

customers in 1997. Cold Storage’s professional image shows the market segment

that it’s going for which is the higher incomes people. Cold Storage is doing pretty

well despise the economic crisis that the world is facing.

Cold Storage store locations (Google Maps, 2011)

3. The cold Storage and Sheng Siong target segments

From the look, kind of products, websites, and location of the stores, Cold

storage and Sheng Shiong have a different segments of market. From

perspectives of products , Where Cold Storage was originally sold imported

products such as australia products that now had expand it store to a premier

retailer in Singapore. Cold storage are more concerns about quality, wellness for

life, and food safety. Such as, packaging of products, refirgerator products, dry

goods products, and hygeine. This is important service for cold storage to maintain

it profesional images. and the sheng shiong are more concern about affordable

prices with good value of their product.

From the setting of the products location inside the two stores also different,

because Cold Storage sell not only local products but also imported product. Cold

storage locations are differed with sheng shiong. Cold storage store are more in

shopping centre and strategy area. In other hand, sheng shiong store are in the

largest consumer stay area, such as HDB, etc. Sheng Shiong are selling more

products around south east asia region.

When enter the Cold Storage store from the right side, the customers can find

the vegetables and fruits section, with a bakery and fresh live seafood. The middle

area is a frozen foods, chilled products and the other basic product’s kind. The left

side is the place for winery and alcohol drinks and juices.

Where in Sheng Shiong’s store, the fresh vegettables and fruits can be found in

front of the store. One can just pick the amount they think they need and to straight

to the weighting station to get the price tag. The in-store is completely different

from Cold Storage. Cold Storage’s products are well organized into sections while

in Sheng Siong you can find the same product in different coners of the store. You

can walk at ease while shopping and feel free to wander around a wide selection of

product. It’s normal to bring home something that you didn’t intent to buy when you

first enter. When a customer shops in Sheng Siong, the walking space is very

narrow that they usually have to squeeze in the get through. If one get distracted

while walking, he can easily run into someone else.

The products that the customer can choose from is limited. A customer

normally come to Sheng Siong knowing what he need. He comes to the stores, get

the product and go home. Nobody wander around Shengsiong just to look.

Because of that, also Cold Storage have a higher prices than Sheng Siong. The

quality that they give to the customer is different. People who shops at Cold

Storage is the one who seek for high quality and imported products without

consider the price. It is a different people that shops at Sheng Siong, where they

look after a standard quality products that suitable with their daily budgets.

Cold Storage also have a service that Sheng Siong can’t compete. It is an

online shopping that you can order it online and they will deliver it to you. This is

the service that really makes the customer convinience and still satisfied with the

order that they made. We can see the difference between Cold Storage and Sheng

Siong not only from the products, store lay out or the services they have. All this

things will determine their target segments of the potential buyers and also will

determine the right location of the stores, like Sheng Siong is now located on the

Community Center and HDB area where moderate people can afford it and Cold

Storage located on the landed house area and the center of the activity on that

area.

4. Perceptual map positioning and important buying dimensions of Cold

Storage and Sheng Siong.

Perceptual Maps are used in marketing to provide a visual representation of

customer perceptions of products, brands or companies. And how are they

positioned in the marketplace.  The maps is drawn according to data that the

company get from the respondents in a survey on the likelihood to purchase and

whether they’re satisfied about the services and products of the company.  Once

the data is collected, aggregated and analyzed the objects can be plotted in

multidimensional space.

The perceptual map above is showing the evaluation of the entire

supermarket in Singapore. The column shows the range of the products, how

plenty of it, and the row shows the prices of these supermarket. We can see very

clearly that Sheng Siong is shown as a supermarket has low price because the

products are from China and Asia Countries, and the range of the product is not so

high. Sheng Siong is specially targets on the customers in low income group

include students.

In the other hand, Cold Storage is shown with the high cost and wide range

of products. Most of the products are imported from Australia; the target of Cold

Storage is a group with high income or local people (Singaporean). Beside that,

Fair Price which is on top now, there are about more than 100 outlets in Singapore.

The range of product is same as Cold storage but the price is low as Sheng Siong.

Giant with high range of products and the price is so so in the middle, not

expensive but also not so cheap. And there some more store brand like 7 eleven,

Cheers which are very expensive but the range of product is small.

5. how the Cold Storage and Sheng Siong integrating their

communication system.

It is to communicate to chosen position to concern on promotion,

advertising, selling, public relation. Sheng Shiong and cold storage are targeting

different segment. So, they are strategies will be different . they are usually have

some sells and promotion on special location on holiday. Both of supermarkets try

to give a perceived value by offering what they want and not just what they need.

For cold storage, they are a premier retailer brand in Singapore. They give

their customer a great value of their products. Cold Storage often organize some

events to promote and support the community and try to build friendly, image of the

supermarket such as August 2010 Heartbeat Many People, One Community

they are being part of the orange Ribbon Celebration, they are trying to

communicate and put together all peoples into one community. they also have to

poor people such as giving a donation around 2000kg of rice to all peoples that are

need it.

Cold storage and Sheng Siong have a different way of integrated marketing

communications. To provide good consumers needs and wants, Cold storage and

Sheng Siong must identify the target market. Cold storage have identify their target

of the high income peoples. They have increased their market belief and achieved

a good quality of products and services. Cold storage is holding a certificate and

some slogan for the supermarket like “ the fresh food people”. It is not only to make

sure the performance of the succession is being good setting, Cold Storage also

support the Singapore government to give a good health and giving a health

promotion advertisement for customers. They are also having online shopping for

customers; we can look at the place of sell such as Centre point at orchard, china

square, Great wall city and others. It shows that Cold Storage is aiming the

customer who is tourism, working in the office and peoples that go to a busy place

like orchard.

In other hand, Sheng Siong has a differed target of market. Sheng Siong

has identified their target of low-income peoples. Sheng Siong is a supermarkets

are operating in a particular place with a lot of customers every day, the customers

probability are in economical peoples.They bid a great price through the slogan “

all for you “. Sheng Siong is popular because of the cheaper value. At Sheng

Siong, everyone can look at the kind of a wide assortment of live, fresh and chilled

produce, such as seafood, meat and vegetables. T

his is one of the operating to stay ambitious benefit among Cold Storage

and other brand. Sheng Siong doesn’t do much to market itself to the customer. It

was opened in 1985 but its first promotion was in 2010 which is The Sheng Siong

Show program on TV. To attract more customer, Sheng Siong work with Diners

Club to come up with Sheng Siong – Diners Club Cobrand Credit Card to offer its

customer better value from every times that they purchase

6. Future market positioning strategies for Cold Storage and Sheng

Siong.

It is necessary for Cold storage and Sheng Siong to develop the operating

and characteristic. It is good for Sheng Shiong to improve or concern on the

service and healthy store and Cold storage is better concern for a loyal customer.

The marketing manager should find some ways to attract some customers not only

through advertisement and others. they should try to internal and external source

of information within customers to support their supermarkets. All the marketer has

to make sure that their customers are happy with all the products, environment and

services in the supermarket.

The management can analyze this market problem form internal data,

marketing intelligence, and marketing research. Cold storage and Sheng shiong

must enter the new technology environment,. They can market their fresh and

chilled products to technological environment. because nowadays , there are many

of internet user. So, the consumers can browse the price and product before they

go to the Cold storage and Sheng Shiong. The Cold storage’s consumer are more

superior than Sheng Shiong. This idea will provide the easiest way for consumers.

Such as, android os, apple os, blackberry os, Symbian os application for consumer

to browse and compare about the products.

Cold Storage can conduct an activity to promote and advertise their

supermarket in a national day or in a public holiday. It is because this supermarket

has quite expensive products if they keep conducting a lot of activity and

advertising, in the customer point of view Cold storage is having standard price as

they are so popular in Singapore. The company can give an advertisement, a gift,

special offer for a customer that having a member card or birthday. It is to attract

some customers to buy the products.

Cold Storage can advertise more in the website, newspaper and giving a

promotion price in every week, it is to make sure that Cold Storage is one of the

famous supermarkets to compare with other famous supermarkets like Faire Price

in Singapore. Cold storage should more innovative to attract a lot buyers. If cold

storage is so popular in the future, they should try to open a new market and enter

globalization market, and expand in other countries like Indonesia, Thailand,

Myanmar, Vietnam and other Asian countries .So, they will earn a lot of profit next

time.

Sheng Siong has to develop their services and keep cleaning the

supermarket. Because Sheng Shiong are designed for “ wet and dry “ shopping

options. So, the customer will feel convenient and satisfy to buy something. This is

the way to make the customer loyal to Sheng Siong. As we know that Sheng

Shiong is having a cheaper price. So, they should try to make a great

advertisement such as putting some actress’s Singapore to their advertisement to

support them and attract more customers. They have to make sure that they have

imported all the food and drinks from other place to stay healthy for customers

Conclusions

Through two stores, which are cold storage and Sheng Siong, we can see how

important the concept of positioning in marketing. Sheng Siong and Cold Storage

have the same way of value proposition in Singapore market. The different

between cold storage and sheng siong are the concept and market segment. Cold

Storage has their own target segment, they are more targets in high-income people

and therefore Sheng siong, and their market segments are low-income people. For

achieving organization’ objectives and goals, Cold Storage and Sheng Siong have

defined interpret the quality of products and services in the market. Cold Storage

more concern about their products before sell in the market such as they are doing

packaging their wet products, and provide safety about the foods especially halal

meets for Muslim. Sheng Siong more concern about the price within fresh delivery

system. The perceptual positioning maps pointed out that Sheng Siong with low

price, with people have low income and students who study abroad; Sheng Siong

is the first choice. Cold Storage is pointed out that it’s is one of the most expensive

supermarket in Singapore, the range of foods are wider than Sheng Siong, foods

from Australia and different countries. It suits European and the one with high

salary. Both supermarkets are trying to promote their supermarkets with some

ways . Cold Storage is trying to promote their store through organizing some

events and supports in particular community, it is to make a good friendly with all

peoples and they also have special offer for holidays. Cold storage is targeting a

customers with a high income, working peoples and tourism. They are located at

busy places such as orchard.in other hand, they are trying to promote through tv

programs, working together with a club that comes up with sheng shiong. They are

targeting customes with low incomes, an economical peoples and they are located

at the very crowded peoples.

For future positioning as a market leader, Cold storage and Sheng Siong

must keep improve their quality and service to their consumers. The management

of this two stores must keep innovative to attract consumer buying. Not only by

advertisements, through technology environment such as new idea of consumer

buying system from internet. They can provide their services with the latest and

easiest way to maintain their market segments.

Referances

SPRING - Singapore . 2009. SPRING - Sheng Siong Supermarket Pte Ltd .

[ONLINE] Available at: http://www.spring.gov.sg/Resources/CD/Pages/sheng-

siong-supermarket-pte-ltd.aspx. [Accessed 09 September 2011].

Superbrands.com. 2011. Sheng Siong . [ONLINE] Available at:

http://www.superbrands.com/sg/pdfs/CSB_SG_FA_SHENGSIONG.pdf. [Accessed

09 September 2011].

Cold Storage. 2011. About us. [ONLINE] Available at:

http://www.coldstorage.com.sg/corporate/public/Corporate_AboutUs.html.

[Accessed 09 September 2011].

 themarketinganalysts.com. 2011.Perceptual Maps: Strategic Product & Brand

Positioning Perceptual Maps . [ONLINE] Available

at: http://www.themarketinganalysts.com/en/pages/perceptual-maps-strategic-

product-brand-positioning-/. [Accessed 11 September 2011]