How Does Yeo Hiap Seng Employ Market Segmentaion
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The Company, Yeo Hiap Seng Ltd, is based in Singapore with three business divisions have sales revenue of S$402,217,000 in 2009 while the Malaysian Subsidiaries, Yeo Hiap Seng (Malaysia) Berhad is based in Jalan Tandang, Petaling Jaya, Malaysia with 2009 sales revenue of M$$546,040,000, 4% sales decrease compared to 2008. (Yeo Hiap Seng’s Annual Report, 2009). The sales have been on declining trend from 2006 onward. The project proposal is to find out how Yeo Hiap Seng employs the market segmentation to increase the sales not only in Malaysia but as a company group in the Food and Beverage products for the market.
The soft drink industry remained flat from 2001 to 2006 and is projected to decline as much as one percent by 2011 (Healthmad 2009). In order to compete in the market from the Malaysian manufacturing products, Yeo Hiap Seng has to improvise new trendy and healthy products for the new generation. In the next two decades, Malaysia will still have a moderately “young” population with those within the age group 0-14 constituting about 30 percent of the total population while those in the age group, 15-24 years will constitute about 17 percent of the total population in 2020. (Commission on population, 2007)
“Market Segmentation” (Theodore Levitt, 2006) is the method of how a company target its products to an upcoming specialize market. The segmenting of a market is to allow the marketing program to focus on the prospects that are ‘most likely’ to purchase the products offering. Market Segment are becoming important today due to the growing power of the consumers, increased Lifestyle activities, fragmentation of the consumer market and brand proliferation. The research will be Qualitative research, with specific questions for effective results.
The objectives are:
To gather a Literature Review of Market Segmentation.
To investigate what segmentation activities are employed by Yeo Hiap Seng
To conclude and recommend how Yeo Hiap Seng can enhance their segmentation activities.
The author will be conducting on the literature relating to Market Segmentation strategies, before reviewing to understand the current business model that Yeo Hiap Seng employed in the past years from their websites and annual reports. Secondary research documented to identify the Market Segmentation theories.
Secondly, primary research through the Qualitative research questionnaire will be gathered to provide relevant data analysis of the project. The research will adopted the grounded theory practice whereby it will be based on in the observation or data from which the results gathered and making unattached findings. The findings from the data analysis will be compared against the theories adopted here.
A set of questionnaires will be planned by the author to be conduct on 200 consumers (unrestricted random sampling) either by interviews or focus group. The author will also establish the qualitative research validity before the data will be presented in statistical format using charts. The focused research will be used to understand the attitudes of potential customers towards the product and subsequent quantitative research might be need to measure how widespread these attitudes are. The observer impression interpretive technique will be used by the author in the data analysis to examine the data, interpret it then to form an impression before reporting their impression in a structured form.
The conclusion results will be transposed to the Sales Promotions which Yeo Hiap Seng can look into either New Business or Sales Force Promotions such as trade shows, conventions, contest and specialty media advertising can be implemented to introduce new brand product sales.
The author is aware that the collections of primary and secondary data required the granted access to online Yeo Hiap Seng Ltd Annual reports (2009) and Yeo Hiap Seng (M) Sdn Bhd Annual reports (2008).
HealthMad (2009) ‘Drink Trend: What are the Hottest Beverages?’ [online]
Available from: http://healthmad.com/nutrition/2009-drink-trends-what-are-the-hottest-beverages/ (Accessed 23rd February 2010)
McDonald Malcolm (2004) ‘Market Segmentation: How to do it, how to profit from it’ 3rd Edition, A Butterworth-Heinemann
Saunder, M. Thornhill, A. and Lewis P. (2009) ‘Research Methods for business Students’ 5th Edition, Pearson Education Canada.
Theodore Levitt (2006) ‘Marketing Success Through Differentiation – of Anything’ Havard Business Review (March 3, 2009)
Wright Investor Service ‘Wright Reports’ [Online]
Available:http://wrightreports.ecnext.com/comse/reportdesc_COMPANY_C45895780 (Accessed 25th February 2010)