COMPANY PROFILE

Our company is “Pristinus Milk Pvt. Ltd “ dealing in dairy business .It is among the top three dairy company in India, our home country. We are now interested in expanding our business for that we chose to operate in Singapore .

SINGAPOREThe Singapore consumer market in overview

Singapore's population is currently estimated at about 4.3 million persons, which includes citizens, permanent residents and other residents that are

permitted to live in Singapore, e.g. persons with work permits. Its population is expected to grow to 5 million by 2010.

Citizens and permanent residents comprise more than 80% of residents. Expatriate families from Developed World regions or countries, e.g. North

America, the EU, Japan, Australia and New Zealand, number about 120,000 persons.

• Singapore (GDP per capita: US$ 26,833 in 2005) has one of the most affluent consumer markets in East Asia. Singapore's economy appears to have stabilised after a number of years of turbulence, which started with the Asian Economic Crisis and ended with the SARS outbreak. GDP per capita in 2005 was the highest reported in Singapore's history. Business confidence has been increasing since 2004, as has consumer confidence, albeit more slowly because of lingering concerns in some sections of the population over job security. About 95% of the population is now reported to be middle and upper income group consumers. This, taken together with the fact that Singapore relies very heavily on imported food supplies, makes it a good target for committed exporters of food and drinks.

Singapore Company at a Glance• Excellent tax benefits from small-to-midsize companies: 0% taxes on 100K

annual profits (first 3 years), approx. 9% tax on annual profits up-to 300K • Low overall tax rate of 18% on profits above 300K • Zero taxes on capital gains in general • We can incorporate a Singapore company in one day

(after incorporation documents are signed by you) • 100% foreign shareholding allowed • Minimum paid-up capital of $1 only • Singapore rated as #1 in ease of doing business in the world • Singapore rated as the best place to work and live in Asia • Immigration visa (entrepreneur pass) available for company owners

wishing to relocate to Singapore to run their new Singapore company • Advancing • High per capita consumption, • strong urban consumption, • decline in local production,• high value-added, full product range

PESTEL ANALYSIS

POLITICAL ANALYSIS

Singapore is a parliamentary democracy, with President SR Nathan its Head of State. Under the Singapore constitution. The Singapore parliamentary cabinet is led by Prime Minister Mr Lee Hsieng Loong, who is appointed by the President. Mr Lee leads the People’s Action Party (PAP) .Action Party (PAP) which has dominated Singaporen politics since 1959 and shows no signs of waning.PAP holds 82 of 84 elected seats in parliament.OTHER POLITICAL PARTIES ARE:- 1 Singapore Democratic Alliance or SDA [CHIAM See Tong]; 2 Singapore Democratic Party or SDP [CHEE Soon Juan]; 3 Workers' Party or WP [Sylvia LIM Swee Lian]

ECONOMIC ANALYSISCurrent Economic Situation

• Singapore has a highly developed and successful free-market economy.• It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP equal to that of the four largest West European countries.• The economy depends heavily on exports, particularly in consumer electronics and information technology products. • It is a major hub for transshipments within South East Asia •one of the Four Asian Tigers•busiest port in the world in terms of tonnage shipped

•Singapore is the world's fourth largest foreign exchange trading centre

GDP (purchasing power parity): $228.1 billion (2007 est.)

Reserves of foreign exchange and gold: $163 billion (31 December 2007 est.)

Estimated current per capita gross domestic product (GDP) isapproximately US$40,000 (purchasing power parity compared with average US$35,000 for OECD countries). GDP growth is estimated to be 7.5% in 2007 with a much smaller 4.9% predicted for 2008. Airports: 8(2007)Roadways:total: 3,262 km paved: 3,262 km (includes 150 km of expressways) (2006)

SOCIAL ANALYSISEthnic groups:Chinese 76.8%, Malay 13.9%, Indian 7.9%, other 1.4% (2000 census)

Religions:Buddhist 42.5%, Muslim 14.9%, Taoist 8.5%, Hindu 4%, Catholic 4.8%, other Christian 9.8%, other 0.7%, none 14.8% (2000 census)

Languages:Mandarin 35%, English 23%, Malay 14.1%, Hokkien 11.4%, Cantonese 5.7%, Teochew 4.9%, Tamil 3.2%, other Chinese dialects 1.8%, other 0.9% (2000 census)

LITERACY

Definition: age 15 and over can read and write

total population: 92.5%

male: 96.6%

female: 88.6% (2000 census)

Population: 4,553,009 (July 2007 estimated).

Adult Literacy: 92.5%

Singaporeans place a lot of importance on relationship building and often work outside business hours to do this, for example, at dinner. The exchange of business cards is very important.

TECHNOLOGICAL ANALYSIS

Singapore aims to be the hub of knowledge based industry. It has implemented the Singapore One concept which connects the whole island through fiber optic cables. Services within the IT industry which are in demand include: internet applications including electronic commerce; software development and applications; networking systems (LAN/WAN products); and IT training and education. it has more than 1.8 million mobile users. Internet subscribers stand at 1.7 million. 42% of homes in Singapore have internet access.

ENVIRONMENTAL ANALYSIS

Climate:Tropical: hot, humid, rainy

Two distinct monsoon seasons - Northeastern monsoon (December to March) and Southwestern

monsoon (June to September); inter-monsoon - frequent afternoon and early evening thunderstorms

Land use:

arable land: 1.47% permanent crops: 1.47% other: 97.06% (2005)

LEGAL ANALYSISTariffs, regulations and customs• Most goods can be imported freely into Singapore. The

Agri Food and Veterinary Authority (AVA) regulates the safety of all imported or locally produced food until just before it hits the retail market.

• AVA is responsible for setting and enforcing food safety standards as well as overseeing food labeling.

• AVA's expertise in accrediting food sources, backed by its up-to-date diagnostic capabilities, ensures that food arriving at the retail end is safe and wholesome.

• There are relatively few restrictions on imports into Singapore.

• The Food Regulations provide specific requirements on the processing and constituents of food products.

DAIRY INDUSTRY IN SINGAPORE

Singapore relies on imports for a large proportion of its domestic food and beverage needs.

There is no primary agriculture and virtually all raw materials for food manufacturing are imported.

. The European Union, Australia and New Zealand are major suppliers for dairy

products to Singapore. There is a significant market potential for bulk dry milk powder for repackaging

into consumer size packs. Singapore traders are looking to distribute this re packed milk powder to

other emerging Asian markets. Other dairy products with potential are cheese, yogurt and ice cream.

Dairy Industry –

The industry has strengthened in this region since dairy deregulation.10% growth per annum consistently over the last 10 years.Many farming operations are investing heavily in on-farm developments.To accommodate this increased production, the industry needs to invest $50 million

Singapore’s population of 4 million to enjoy access to one of the region’s most developed food markets, with sophisticated retailing and food service channels.Singapore has virtually no agricultural production of its own and depends on imported food ingredients and retail food products to satisfy around 90% of its food market requirements. It has an open economy with no tariffs on imported food or beverage products from Australia Singapore’s food retail sector is sophisticated and highly concentrated. Several of the world’s major food retail groups have a presence in the market. Exports of milk powder accounted for 70% of dairy exports with a value of $92 million.

DAIRY PRODUCTS: Our Company Exports Liquid milk. Ice cream. Yoghurt. Retail packed milk powders. Infant formula. Butter and ghee. Cheese in all forms. Cream. Condensed and evaporated milk. Dairy ingredients, including skim milk powder, whole milk powder,

sweetened milk, powders, buttermilk, whey, anhydrous milk powder, lactose and casein/caseinates.

STRENGTH DEMAND PROFILE: ABSOLUTELY OPTIMISTIC.• ADEQUATE FINANCIAL RESOURCES• GOOD COMPETITIVE SKILL• STRONG MARKET IMAGE AND MARKET LEADER• FLEXIBILITY OF PRODUCT MIX IS TREMENDOUS. WITH BALANCING EQUIPMENT,

YOU CAN KEEP ON ADDING TO YOUR PRODUCT LINE.• ABUNDANT AVAILABILITY OF RAW MATERIAL.• WELL-CONCEIVED FUNCTIONAL AREA STRATEGIES• ACCESS TO ECONOMIES OF SCALE• AHEAD OF STRONG COMPETITIVE PRESSURES• COST ADVANTAGES• BETTER ADVERTISING CAMPAIGNS• PRODUCT INNOVATION SKILLS• BETTER MANUFACTURING CAPABILITY• SUPERIOR TECHNOLOGICAL SKILLS• TECHNICAL MANPOWER• LOGISTICS OF PROCUREMENT• STRONG DISTRIBUTION

WEAKNESS

• HIGHLY PERISHABLE PRODUCT• OBSOLETE FACILITIES•· MISSING SOME KEY SKILLS OR COMPETENCE•·POOR TRACK RECORD IN IMPLEMENTING STRATEGY•· FALLING BEHIND IN R AND D•· TOO NARROW A PRODUCT LINE•. LACK OF CONTROL OVER YIELD

OPPORTUNITY• SERVE ADDITIONAL CUSTOMER GROUPS• ENTER NEW MARKET OR SEGMENTS• EXPAND PRODUCT LINE TO MEET BROADER RANGE OF CUSTOMER NEEDS• DIVERSIFY INTO RELATED PRODUCTS• VERTICAL INTEGRATION• FALLING TRADE BARRIERS IN ATTRACTIVE FOREIGN MARKETS• COMPLACENCY AMONG RIVAL FIRMS• SINGAPORE'S AGEING POPULATION • RISING AVERAGE INCOME LEVELS AMONG THE WHOLE POPULATION .• BAN ON CHINA BY SINGAPORE GOVT. HAVE GIVEN A GREAT

OPPORTUNITY TO OTHER COUNTRIES SPECIALLY INDIA.• CONSUMERS SEEKING CONVENIENCE • GREATER ‘WESTERNISATION’ THAN IN NEIGHBORING COUNTRIES• VALUE ADDITION: THERE IS A PHENOMENAL SCOPE FOR INNOVATIONS IN

PRODUCT DEVELOPMENT, PACKAGING AND PRESENTATION.

THREATS

• ENTRY OF LOWER-COST COMPETITORS• RISING SALES OF SUBSTITUTE PRODUCTS• LOWER MARKET GROWTH• ADVERSE SHIFTS IN FOREIGN EXCHANGE RATES AND TRADE

POLICIES OF FOREIGN GOVERNMENTS• COSTLY REGULATORY REQUIREMENTS• GROWING BARGAINING POWER OF CUSTOMERS OR

SUPPLIERS• CHANGING BUYER NEEDS AND TASTES• ADVERSE DEMOGRAPHIC CHANGES

SEGMENTATION

TARGETING

POSITIONING

“Positioning is the art of designing company’s offering & image so that they occupy a meaningful / distinct competitive position in the target customer’s mind.”

• Differentiation is based on:- 1)Product, in terms of features like: quality,

freshness, health. 2)Channel, in terms of distribution.• Positioning strategy is based on attributes of

products like:- Purity, healthy, quality, freshness and taste.

Potential Entrants(Mobility Threat)

Competitor (Segment Rivalry)

Substitutes(Threat of Substitutes)

Suppliers(Supplier Power)

Buyers(Buyer Power)

Threats of competitors:

• Segment is unattractive if:– Segment contains numerous / strong / aggressive competitors.– Fixed costs are high.

• Above may lead to:– Price wars.– More advertising cost. – Multiple new product introductions which may be expensive.

• There are large number of competitors in the market. Hence we need to work efficiently on marketing efforts.

• If more no of competitors are there, consumer will have variety of option to choose from to get the desired product at lowest cost.

Threat of New Entrants:

Low stable returns

Low risky returns

High stable returns

High

Risky Returns

low

EntryBarrier

High

Stable Returns risky

•Dairy industry in Singapore is observing very good growth,hence large number of players want to enter in to this industry.•Ban on china dairy products resulted into more scope to other players to export their products.

Threat of Substitute Product:

• If actual/ potential substitute cost, then there is a limitation on price/ profit.

• Impact of technology change / competition is more in substitutes. Industry need to be monitored.

• The risk of substitutes can be eliminated by offering innovative products and giving them delight.

Threat of Buyers Growing Bargaining Power:

• This may happen when:• Buyers get organized.• If more no of competitors are there, consumer will

have variety of option to choose from to get the desired product at lowest cost.

• If buyer is purchasing any product after every specific interval of time, he may ask either for credit or lower the price.

• If product is undifferentiated, buyers can switch.

Threat of Suppliers Growing Bargaining Power:

• May be evident through suppliers:• Increasing price• Reducing quality.

• Happens when situation similar \ reverse of buyer’s threat occurs.

• Firm needs to :• Develop multiple supply sources.• Develop win-win relationship with suppliers.

•

MARKET ENTRY STRATEGIES

To enter in Singapore market we are using strategies like:-

1) Direct export: In this case market research, market contact, pricing, export documentation etc.are done by manufacture who actually exports.

2) Strategic alliance: A firm may form an alliance (not JV) with a company abroad (generally, a competitor) to share each others’ strength on reciprocal basis. Here we can use the distribution channel of an established firm with a strong distribution channel.

PROMOTION

Every business needs a means of communicating with its customers (and potential customers) to promote its products or company image.

Since our product is unknown in Singapore, so we need to communicate it.For this the strategy used is:

Pull Strategies Promotional strategies that pull the product toward the end user by enticing the

consumer to buy the product. - For this we will go for advertising because advertising is geared to attract a

customer's attention to help win his/her loyalty .For this we will use radio, television, billboards and the printed press.

-We will also go for consumer sales promotions such as we will be giving free coupons for purchasing more than 4 products of our company and free samples in small packets.

DISTRIBUTION CHANNEL

THANK YOU