Old Chang Kee expands to Thailand market
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This feasibility study was commissioned to assess Old Chang Kee’s proposed marketing strategy to enter the Thailand market. This report draws attention to the analysis of the external factors of the new market, proposed entry strategy and internalization of marketing mix. The marketing objectives set for this study will remark on an increase of 15% of total international sales of Old Chang Kee’s products. Master franchising is chosen because it provides an easier entry to Thailand food industry and is cost-efficiency compared to fully owned subsidiaries system. The factor that may hinder the business growth is the political instability and the high level of pollution in Thailand. The pricing for each product will follow the market price instead of converting the price in Singapore Dollar to Thailand Bath. The place and promotion strategy emphasize on the busy district areas in Bangkok for the first year in entering Thailand.
Table of Content
About Old Chang Kee
Market Entry Strategy
Evaluation of Entry Model for OCK to Thailand
Situational Analysis: PESTEL
Marketing Mix Strategies
1. Company Background
1.1 About Old Chang Kee
Old Chang Kee is a traditional snack chain in Singapore specializing in curry puffs and other local snacks. By distinction, the Old Chang Kee brand endured strong in Singapore, and the company picked up S$14 million in sales in 2002.
In 2005, Old Chang Kee re-entered external markets with stricter regulations for external agreements. Three shops in Malaysia and Thailand were opened to preserve the property of the curly clouds, and sales outlets were opened in Malaysia, Indonesia and the Philippines. By 2008, there were 54 stores in Singapore, 2 stores in Kuala Lumpur, 4 stores in Indonesia, and 2 stores in Manila.
1.2 Product Description
Old Chang Kee sells many foods and snacks through different ideas, from huts, supermarket and shopping malls. Old Chang Kee selling a lot kinds of products such as chicken spring rolls, string balls, fish balls, crab claws, sesame balls, hot fritters and pineapple, corn and yam pies, etc
Figure 1: Old Chang Kee Outlet:
Old Chang Kee’s best seller products in Singapore:
O’Curry (Curry Puff)
Fish Ball On stik
Yam K8 (Yam cake)
Old Chang Kee additionally wants to regularly running a wide array of eminent value spicy food through food provision standardization activity, refining and modernizing traditional food recipes for the modern, multicultural customers, and provides an alternative fast food for busy city dwellers. Old Chang Kee also aims to expand their business broader and offers franchising.
1.4 Corporate Vision
The company vision is to form Old Chang Kee as a major recognizable quality in contemporary Singapore while keeping its price heritage.
2. Corporate Goals
Old Chang Kee, as a quick-service food joint, aims to increase sales among divisions in the global space. The second group goal is to open at least 5 new offices in Thailand market, mainly in the district like Bangkok. In closing, as Old Change Kee spikes in the contemporary market of Thailand, it has two main objectives. If the growth declines over this period of time, Old Chang Kee should be contemplating exiting the market or registering...
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