1.

Introduction

Becoming more health conscious is a growing trend in Singapore. Located in the

town area of Singapore, Fruit Delight Cafe is a dessert outlet that offers many
varieties of fresh fruit desserts. Fruits are packed with vitamins and minerals that
help keep a person healthy. They also help in reducing the risk of heart diseases,
stroke and some cancers. Especially in a hot and humid country like Singapore,
Fruit Delight Cafe also offers a great hangout for those wanting to get away from
the heat. The purpose of this marketing report is to present a marketing research
plan for a fruit dessert cafe. The evaluation of this report is based on marketing
elements concerning competitors around the area, external influences and the
target markets. The growth and development issues are then analysed in relation
to marketing theories such as natural, technological and economic environment,
taking into account the trends, changes and alterations in these environments
which can both pose threats and reveal opportunities.

2. Brief Overview

2.1 Description

Fruit Delight Cafe offers a trendy and fun place to enjoy mouth-watering fruit
desserts in a social environment. Fruit Delight Cafe sells an extensive range of
desserts made from combinations of different fruits to create a healthy diet full of
surprises and experiences. Customers can also choose to create their own
unique flavor by choosing any two different fruits of their choice. Fruit
Delight Cafe can also be described as a quick-service restaurant where
customers sit around a bar and watch their desserts being made. The show, as
well as our fruit dessert is the main selling point. Fruit Delight Cafe aims to attract
people from all age groups especially the health conscious to indulge in a bowl of
cooling and healthy fruit dessert. Fruit Delight Cafe is committed to promoting
healthy lifestyle in Singapore. In order to raise more awareness on fruits nutrition,

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 nutrition facts of the fruits available in the cafe will be displayed on the eating
tables and menus. Service staff will also be encouraged to recommend to
customers “Fruit of the Day” dessert daily. Also in conjunction with the promotion
of healthy lifestyle by the Singapore Health Promotion Board, Fruit Delight Cafe
will be having a “Fruit Day” at the end of every week by giving away free fruits to
customers and staff.

Mission Statement

 We strive to meet customers' expectations by consistently using fruits that are

of the freshest quality.
 To provide excellent customer service teams to compete in today's customer
oriented environment.
 To promote healthy lifestyle by giving away free fruits to customers and staff.
 To be one of the leading dessert cafe in the F&B industry of Singapore.

3. Situation Analysis

3.1 Competitors

Fruit Delight Cafe faces many competitions in the dessert industry. ‘Desserts are
no longer just a sweet finish to a meal. More cafes and restaurants that are
devoted to just serving desserts are opening’ (The Sunday Times, 2007). The
purpose of a competitive strategy is to achieve a sustainable competitive
advantage in order to enhance a business performance (Bharadwaj, 1993). The
key to providing a competitive advantage in a service related industry is to
consistently exceed customer’s expectations. According to Kotler and Armstrong
(2008, p. 481), a company must understand the competitive patterns in its
industry in order to be effective in that industry. Competitors can be defined as
companies that are trying to satisfy the same customer need or build
relationships with the same customer group.

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 In recent years, there has been a growing emphasis on customer service.
Businesses are investing in training and development of their staff, setting
service standards and auditing service levels to differentiate themselves from
competitors just to keep customers coming back for more. Fruit Delight Cafe
always emphasizes the importance of customer service. Staff will undergo
teambuilding and staff training workshops in order to constantly improve the
quality of their service. Quality will also be the theme stressed by Fruit Delight
Cafe. Fruit Delight Cafe will always ensure that fresh fruits are used in the
making of its desserts. (Johns, 1999) proposes that in all service industries, there
is always some form of direct (social) contact between the customer and the
service firm. This direct (social) contact or ‘service encounter’ is so important of a
part of a service delivery that it is frequently called “Moments of Truth”. By
adopting a Relationship Marketing approach, the service organization can
virtually turn the “Moments of Truth” in its favor. Hence, customer service
feedbacks forms are placed on the eating tables for customers to evaluate the
services provided in the cafe. These feedbacks will help in enhancing the quality
of the service provided.

4. Market Issues

(Kotler & Armstrong 2008, p. 60) defines “marketing environment as the actors
and forces outside marketing that affect marketing management’s ability to build
and maintain successful relationships with target customers.” Kotler and
Armstrong (2008, p. 86) also state that the six forces that make up a company’s
macroenvironment include demographic, economic, natural, technological,
political and cultural forces. These forces shape opportunities and pose threats to
the company. As White, Varadarajan, and Dacin (2003, p. 63) state, “To survive
and prosper in a competitive marketplace, an organization must strive to respond
continuously to opportunities and threats posed by a changing environment.”

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4.1 Economic Environment

The economic environment is best described as having the “factors that affect
consumer buying power and spending patterns" (Kotler et al 1998).
Singapore's economy shrank for the first time in three quarters in the last three
months of 2009. Singapore's economy is expected to revert to positive growth
next year, thanks to the global recovery (Channel NewsAsia)
For example, it can be easily understood that during an economic downturn,
business in hawker centers and coffee shops will be better than that of expensive
restaurants. Food price inflation also plays a role in the economic environment
and it will directly affect the revenue of the cafe. Also with the high inflation,
buying and importing the necessary ingredients will be expensive thus the profit
of the cafe will be affected. The Singapore’s Ministry of Trade and Industry
propose that the best strategy against food inflation is to sustain economic
growth over the medium term and create quality jobs for Singaporeans (Channel
NewsAsia). Hence, the Food and Beverage (F&B) industry plays a vital role in
Singapore’s economy. Besides catering to local consumption, it is also a vital
component of the tourism industry (Singapore Department of Statistics).

4.2 Technological Environment

The technological environment changes rapidly and is perhaps the most dramatic
force shaping the marketing environment (Kotler & Armstrong 2008, p. 76).
The society we live in is highly driven by technological innovation. The
advancement of technology, which created the Internet and many other
technology devices means customers can be easily snatched away if a company
fails keep up with the pace of technology. There are also other technological
trends impacting on the F&B industry such as the increasing use of cash card,
mobile devices and GPS (Global Positioning System). Hence, in order to keep up
with other competitors, Fruit Delight Cafe will have its own website to promote
itself. In addition, it is also important to note that in order to stand out among the

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 rest of our competitors, Fruit Delight Cafe need to keep up with the growing trend
of technology upgrades, such as the recent Online Food Ordering System that
has taken the food industry by storm.

4.3 Natural Environment

In a tropical place like Singapore, the weather is totally unpredictable. Hence,

business in Fruit Delight Cafe can also be directly affected by the weather be it
good or bad. For instance the hot weather in Singapore is a “pull” factor that
draws customers to the dessert cafe. On the other hand, if the weather in
Singapore is rainy, consumers can choose to chill out at the cafe while waiting for
the rain to stop. In addition, the cafe also offers a great hangout for people
wanting to chill out on any other days.

5. Target Market

Fruit Delight Cafe focuses on the local market targeting people from all age
group and most importantly the health conscious. Singapore provides an
excellent climate for Fruit Delight Cafe as people are willing to spend on healthy
food.

5.1 Health Conscious

A National Nutrition Survey was conducted by the Health Promotion Board in
2004 to find out how frequently Singaporeans asked for healthier choice in their
food when they eat out. Results showed that the most common choices found
include fruits in their diet (39.3%)

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 Fig.1 (Source: National Nutrition Survey 2004)

Fig.2 (Source: ACNielsen CATI Omnibus June 2005)

According to report findings, Singaporeans are a diet-conscious lot, with the

majority of locals attempting to eat healthily whenever they can (ACNielsen
Research Singapore). A survey was conducted by ACNielsen CATI Omnibus in
late June 2005, based on the result shown in Fig.2, almost 60% of Singaporeans
are found to be health conscious when it comes to their diet.

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6. Conclusion

In conclusion, the findings in this reports show that Singaporeans are health
conscious when it comes to food. The market issues were discussed with
competition evaluated as the many dessert cafes and the new recently opened
cafes present in Singapore. Marketing issues of consumers’ purchase motivation
were analysed in relation to the economic, technological and natural environment
of the business macro environment.

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7. Reference List

The Sunday Times, 2007, ‘Dessert Bloom’,

Available at: http://www.asiaone.com/Wine%252CDine+
%2526+Unwind/Features/Topics/Story/A1Story20070807-21188.html viewed 8
Apr 2010

Bharadwaj, Sundar G, P Rajan Varardarajan & John Fahy, 1993, ‘Sustainable

competitive advantage in service industries: A conceptual model and research
propositions’, Journal of Marketing, vol.57, Oct, pp. 83-99

Kotler, P & Armstrong, G, 2008, Principles of Marketing, 12th Edn, Pearson

International Edition

Johns, N, 1999, ‘What is this thing called service?’ European Journal of

Marketing, vol.33, no. 9/10, pp. 958-973

White, Chris J., P. Rajan Varadarajan & Peter A. Dacin, 2003, ‘Market Situation
Interpretation and Response: The Role of Cognitive Style, Organizational Culture
and Information Use’, Journal of Marketing, vol.67, July, pp. 63-79

Channel NewsAsia, 2009, ‘Singapore's economy likely to be buoyed by global

recovery in 2010’
Available at:
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1026222/
1/.html viewed 8 Apr 2010

Channel NewsAsia, 2008, ‘S'pore's food inflation remains low by international

standards
Available at:
http://www.channelnewsasia.com/stories/singaporelocalnews/view/326673/1/.ht
ml viewed 8 Apr 2010

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Singapore Department of Statistics, 2008, ‘Economic Survey Series’
Available at:
http://www.singstat.gov.sg/stats/themes/economy/biz/fnb.pdf viewed 9 Apr 2010

Health Promotion Board, 2004, ‘Report of the National Nutrition Survey 2004’,
Available at:
http://www.hpb.gov.sg/uploadedFiles/HPB_Online/Publications/NNS_Report_Fin
al(Merged).pdf viewed 9 Apr 2010

ACNielsen Research Singapore, 2005, ‘From a Healthy Diet to a Balanced

Lifestyle’
Available at:
http://www.sg.nielsen.com/news/20050913.shtml viewed 9 Apr 2010