Bengawan Solo Pbm

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Bengawan Solo 
A. Category Definition
A retail confectionary chain selling premium-quality cakes and desserts to serve special occasions, especially Full Month Celebrations, Birthdays, Chinese New Year, and the Mid-Autumn Festival. It also specializes in retailing handmade traditional Indonesian desserts. B. Main Competitors

1. PrimaDéli – Confectionary chain with large retail network. Retails mid-priced freshly prepared goods to consumers as snacks, and also sells cakes and seasonal baked goods. (Prima Deli) 2. Polar Puffs and Cakes (“Polar”) – Retail confectionary chain which additionally differentiates itself emphasis on savoury puffs. (Polar Puffs & Cakes) It also retails baked goods for special occasions. Polar enjoys high brand presence because of its partnership with ExxonMobil, which has culminated in Polar’s goods are retailed at over 60 petrol stations islandwide (ExxonMobil Singapore). 3. BreadTalk – A confectionary retail chain with a shorter history but much stronger branding. It is presently one of Singapore’s most recognized retail confectionaries. Breadtalk specializes in bread, and is highly visible due to its choice of highly visible retail locations. (BreadTalk) 4. Neighbourhood Confectionaries – Independent confectionaries situated in the heart of neighbourhoods. While their products are generic, their locations are convenient, and loyal customers claim that they have a unique flavour, and constantly return in pursuit of that flavour. All abovementioned confectionaries sell festive goods seasonally, and can provide for common celebrations such as Full Month celebrations. PrimaDeli, Polar Puffs and BreadTalk all have strong presence in popular shopping malls with high pedestrian traffic. This makes them key competitors with each other, as their products and target markets are highly similar.

1. High Brand Equity. Bengawan Solo is one of Singapore’s most recognized brands. It has appeared regularly on the Singapore “Enterprise 50” list ever since 1997 (Bengawan Solo), and is highly recognized as a producer of cakes and traditional Nonya desserts using traditional, authentic recipes. Bengawan Solo also featured in prominent local publications in 2010, because it sold traditional Indonesian desserts popularized by a local television drama. 2. Premium Product Perception. Bengawan Solo is constantly focused on improving the recipes and production process of its traditional products (Pan). This has resulted in the creation of a superior product that is perceived as premium, and customers purchase it because the perceived value begotten often exceeds the monetary cost to them.

1. Seasonality of Sales. Due to the nature of its business, Bengawan Solo generates much higher sales during festive seasons such as the Lunar New Year, and the Mid-Autumn Festival, when Singaporean consumers customarily exchange gifts of traditional desserts. However, usage frequency during non-festive seasons is generally much lower. This affects increases its risks, as its survival is highly dependent on sales during the festive season even as it incurs operations costs for the entire fiscal year. 2. Vulnerability to Cost Increases. Bengawan Solo’s retail outlets are mostly rented. This makes Bengawan Solo particularly vulnerable to losing their prime locations due to exorbitant rent increases. In addition, Bengawan Solo’s raw materials (i.e., flour, pandan leaves) are sourced from external vendors. This makes Bengawan Solo highly susceptible to increased costs due to supply shortage in the event of unforeseen natural or political unrest. Opportunities

1. Craving for Snack-sized Portions. Current research has demonstrated that bite-sized desserts have made the top five restaurant trends for the past four years, as customers seek increased variety without consuming more calories or spending more (Michelle Locke, 2011). Bengawan Solo’s bite-sized...
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