Founded in 1930, Sunshine Bakeries is one of the largest and most established bread manufacturers in Singapore. Sunshine supplies fresh and quality bread loaves of up to 10 different varieties which are delivered to around 3000 retail outlets daily. It also produces 4 different varieties of rolls and buns and 9 flavours of cream rolls. Sunshine has won many prestigious awards as testament to its quality. 1.1 Problem Identification
Sunshine faces strong competition from local brands such as Gardenia and First Choice, not to mention the increasing number of boutique bakeries such as BreadTalk that have sprung up in recent years. Last year, Sunshine recorded a loss of $700,000. To increase Sunshine’s market share and profitability, it is imperative that Sunshine retains its current customers while attracting new ones. 1.2 Hypothesis for Laggard Brand Status
1.2.1. Target Segment One - Singaporean Families with Children Hypothesis A: Consumers perceive Sunshine to be inferior in its product attributes–variety and taste. 1.2.2. Target Segment Two - Western Expatriates
Hypothesis B: Consumers perceive Sunshine to be inferior in its product attributes– freshness and taste. 1.3. Research Objectives
We will address this problem by investigating consumer behaviour patterns in buying bread and the effects on purchasing decisions. We will determine the bread attributes consumers value, and thereafter suggest marketing tactics to increase Sunshine’s market share in the bread industry. 2.Industry Analysis (Baking Industry)
2.1. Segmentation and Structure of the Market
The Singapore Bakery industry has grown from an industry dominated by small bakeries producing unbranded bread to large manufacturing bakers in the last decade. Since the late 1980s, the overall bread market has expanded at an average of 15% to 30% per year. The overall volume growth in sales of bread has increased by 11.9% from 2003 to 2008. It is also forecasted for volume in sales...