ReportOnSingapore Beverage Consumption

Submitted By:ESG1406016EMBA

Executive Summary3Introduction3Brief introduction of the industry3Objective of the study3Study Design4Data Analysis, Results and Their Interpretation47Findings and Recommendations9The Product9Market Analysis9Conclusion10

Executive SummaryThe beverage consumption among Singaporeans when having a meal or a snack is one of the predominant habit noted event. However understanding the beverage consumption pattern among the Singapore diaspora of population was one of the least concentrated areas. A recent study was conducted to understand the Beverage consumption pattern among a section of working and student population. Following the analysis of data reveals a lot of interesting and emerging patterns. Along with the consumption pattern, new opportunities also seem to be possible in the horizon.This report is the presentation to the management on the details of the study conducted followed by a brief analysis on the Data collected. Based on the analysis the team has proposed recommendation on the launch of a new beverage targeted to the particular segments of the working and student population.IntroductionBrief introduction of the industrySingapores Food & Beverage (F&B) services industry has an important role to play, as its vibrancy supports the internationalism and cosmopolitan flavor of Singapore. Establishments in the F&B industry comprise all types of food services and drinking establishments from inexpensive cafeterias and fast-food joints to fine-dining restaurants. F&B outlets are also making a foray into new areas such as community centers, bringing offerings closer to their customers. The outlook for the F&B industry in Singapore is bright, with the buoyant economic conditions supporting strong domestic demand. The facelift of Dempsey Hill and the entry of many new F&B concepts in the new shopping malls have added to the buzz generated to attract visitors.Objective of the studyThe Objective of the study is To analyze the beverage consumption pattern among Singapore Student and Working population. Segment the market based on some dominant beverage consumption pattern. Target the segment to intensively market specific beverage that is of interest to them through different marketing mixes.Study Design The research was designed to target the different groups of the Singapore population with 10 specific questions to study on their beverage consumption pattern. The below link was used by the respondents to register their inputs. https://www.surveymonkey.com/create/?sm=V5QXud9Y6XD9ZO4EoIxKVJCn343M65c5n4vZrL0hsNc%3d80 responses were recorded for the survey and the data were analyzed based on demographic details.The below table describes the factor analysis details done on the respondents based on Nationality and profession. The analysis of the data showed that the dominant groups were the employed and students. The employed and the students comprised 65% and 18% of the sample size respectively. StudentEmployedSelf-employedHomemakerTotal

Singaporean7141123

Indian0141520

Malaysian02002

Philipino5184229

Korean10001

Others01001

Chinese10001

Total144968

Data Analysis, Results and Their InterpretationThe students and employed group were chosen as the target group and further analysis were performed on the age group and the spending patterns of those age groups and the below charts gave interesting insights to the Beverage consumption patterns.

In the above chart we narrowed down our scope to analyze the section of Students and Professionals who spend S$ 5 and above on their daily beverage consumption. The chart shows that Age group between 18 and 25 spend more than S$6 on their daily beverages. This also holds good for the working professionals Aged 42 and above.We have chosen the target population whose spending pattern is S$6 and above because The beverage segment below $5 is saturated with heavily competing products. The products competing in the below S$5 category is also highly segmented to target the niche population. There is not much soft drink available in the Singapore market in the S$6 and above category.The below chart showing the weekend beverage consumption over the weekend shows that 3 age groups belonging to 18 to 25 years, 34-41 years and 42-49 years all spend S$6 and above for their beverage consumption.

This clearly shows that there is a lot of potential for beverages that can be priced at a premium. The Clustering analysis on the sample population showed the following results to further substantiate that there is a possibility of segmentation based on the demographic and consumption profile.The below results were obtained for the clustering done based on 6 input parameters, broadly categorized as below: Employment Gender Daily spending on BeveragesThe common characteristics noted among the sample population is that they have rated Cold, Carbonated and fresh Juices drinks as their most preferred choice of drink.The cluster quality was close to good and the cluster size ratio also showed healthy 1.44(any size below 3 is good)3 clusters were formed, namely Middle aged employed Men (40%) Middle aged employed Women (27%) Young Students (33%)

The 3 clusters show that there is a 23% spread in the weekend spend of the Employed men cluster. Whereas 36% spend is noted among young student cluster, both on a weekend and weekday. Similarly 22% and 33% spend is noted in the working Women cluster on a Weekday and weekend respectively.

Further to this spending pattern we also analyzed on the age group of the sample population and the following information reveals further details to the age group of the spending population. The student cluster showed 91% of them are aged between 18 and 25. Employed men population is spread across all age groups from 18 years to 50 and above. The Employed women population is dominant in the age group of 42-49 years. 56% of them fall in the age group.

Findings and RecommendationsThe ProductThe Young Students and the Employed Women segment should be selected as the target segment in launching the premium beverage products.The following characteristics profile the soft drink that should be targeting the Young students: Cold CarbonatedThe following characteristics profile the soft drink that should be targeting the Employed women category: Fresh fruit JuicesMarket AnalysisStudents constitute 6% of the total Singapore population of 5.26 million. The below projection shows that approximately S$500,000 daily demand is estimated in the students segment.

Total Population5,260,000

Student 315,600

Students below 18 189,360

Students in 18 and above 126,240

Market Potential per day on Above 18 students $ 757,440

10% discount in estimates $ 681,696

The Singapore Women population in the 25-54 years age category is 1.4 million. The statistics shows that 75% of them were employed. Based on the figures it is conservatively estimated that the market potential among working women population is S$ 3million in revenue per day.Women population in 25-54 years1,400,000

75% of them are employed 1,050,000

Market potential perday @ $6 per drinkS$ 6,300,000

disount on estmates (@50%) S$ 3,150,000

ConclusionBased on the recommendation, an in-depth market research need to be conducted among the target segment to further probe into the nature of the product that needs to be launched to the respective audience.