VEGA FOOD CORPS- STRATEGIC MARKETING PLAN SITUATION ANALYSIS
Name
Course
Date
Economic Environment- Income
Income
In 2021, Singapore’s median monthly income from work stood at $4,680. Compared to the figure recorded in 2020, this was an income increase of 3%. It is said that the increment rate of income among the working group in Singapore was even higher before the pandemic struck in 2019. Over the last 10 years, Singapore has seen its median income rise by 44%, compared to 2011’s figure which stood at $3,249.
Analysis and Deduction
With the income level rising among the people in Singapore, there has been an increased demand for a high-quality life. More people will be able to afford food products, meaning that there is a likelihood that the demand for Vega Food Products will rise. Therefore, the sales of Vega Food Corp will increase, and they would be forced to increase their production to meet the rising demand for food products. Population growth is also positively affected by increments in a country’s income (Gatsi and Appiah, 2020). Hence, with an increased population, the demand for food products will also increase.
From the analysis above, the following threats/ opportunities are deduced.
Threat: T1: The production cost is likely to rise when producing at huge volumes to satisfy market demands.
Opportunity: O1: Opportunity for the company to improve its competitive advantage in the market since they are likely to gain customer loyalty if they constantly maintain their supply.
Legal Environment- Labour Law
Labour Law
In Singapore, the major labor law is the Employment Act. The working conditions and terms for all employees are provided in the Employment Act. The employment Act tends to protect the employees in terms of annual leaves, public holiday entitlements, hours of work and overtime, sick leave, and CPF contributions (Rajah, 2019).
Analysis and Deduction
Vega Food Corps is a big company and an employer to numerous Singapore citizens who provide it with labour in various sectors. Therefore, it has to abide by the labour laws as provided by the government for it to continue with its operation in the country successfully. Vega Food Corps is expected to work within the provisions of the Employment Act and provide a regular Employment Contract with terms to guide their operations with the employees. Neither the employer nor the employee is allowed to go against this employment contract. The employees are likely to be motivated if their employer provides them with reasonable terms of work. Therefore, the results of the satisfied and happy employees will be translated into improved efficiency in output for the company.
From the analysis above, the following threats/ opportunities are deduced.
Opportunity: O1: Minimal lawsuits against the company. A company that abides by the law is likely to face minimal court cases, thus will not lose finances due to being sued from time to time.
Cultural Environment- Family Structure
Family Structure
In Singapore, the size of households has been reducing with time. In 1990, the average size of resident households was 4.2. This number has been reducing with it being 3.7 in 2000, and 3.4 in 20014. However, the dominant household structure remains to be the nuclear family, consisting of the father, mother, and children. Over the years, the number of nuclear families has been slowly increasing. In 2014, a huge portion of the nuclear families 95.1% included households that were based on two generations, having married couples and their children.
Analysis and Deduction
A huge portion of the population in Singapore is a part of the nuclear family. This is an important factor that Vega Food Corp should consider while considering its positioning strategies as well when structuring its 4Ps. Most of the households within the nuclear settings consist of a range of three to four people, a number which seems to be reducing overtime. Therefore, the 4ps and positioning strategies of these companies should always be made in a way that coincides with the preferences and requirements of nuclear families with a maximum of four people. For example, the packaging of the food products should be made to align to the weight and quantity that is likely to satisfy a nuclear family of such a size.
From the analysis above, the following threats/ opportunities are deduced.
Threat: T1: More investment would be needed in researching how to position the company to the needs of this target market, which is dynamic.
References
Gatsi, J.G. and Appiah, M.O., 2020. Population growth, income growth, and savings in Ghana. Journal of Economics and Development.
Rajah, M., 2019. ‘From Third World to First’*: A Case Study of Labor Laws in a Changing Singapore. Labor Law Journal, 70(1), pp.42-63.
Saguin, K., 2021. No flat, no child in Singapore: Cointegration analysis of housing, income, and fertility.
Yeung, W. J. J., & Hu, S. (Eds.). (2018). Family and population changes in Singapore. London: Routledge.
