1.

Introduction

The purpose of this marketing report is to develop an effective marketing plan of

the new Fruit Delight Cafe. “Market planning involves deciding on market
strategies that will help the company attain its overall strategic objectives. A
detailed market plan is needed for each business, product or brand” (Kotler &
Armstrong 2008, p. 50). The evaluation of this report is based on a SWOT
analysis carried out to identify the internal and external factors that are favorable
and unfavorable in order to achieve the objective of the business, followed by a
market segmentation to determine the market positioning of the cafe. Finally the
last section of the report will outline the marketing actvities of Fruit Delight Cafe
and last but not least, recommendations for future improvement of the business.

2. Brief Overview

Fruit Delight Cafe is a dessert cafe located in Bugis Street which is within walking
distance to many shopping centers and with easy access to MRT, buses and
taxis. Also within the vicinity are the National Library, private universities and
hotels such as Intercontinental Singapore and Carlton Hotel. Hence, there is
always a high traffic flow of people, especially during the weekends.

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, Fruit Delight Cafe will be having a “Fruit Day”
at the last week of every month by giving away free fruits to customers and staff.

Fruit Delight Cafe also offers a trendy and fun place to enjoy mouth-watering fruit
desserts in a relaxed cafe atmosphere. 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 flavours by choosing any two different fruits of their choice.

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 Fruit Delight Cafe employs an ‘open-concept’ theme 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.

3. SWOT Analysis

“SWOT Analysis aims to identify the strengths and weaknesses of an

organization and the opportunities and threats in the environment. Having
identified these factors, strategies are developed which may build on the
strengths, eliminate the weaknesses, exploit the opportunities or counter the
threats” (Dyson 2002, p. 632). A SWOT analysis is important to the marketing
plan of Fruit Delight Cafe as it can determine how well the company performs
from the interaction of the business management with its internal and external
environment.

3.1 SWOT Table

STRENGTH WEAKNESS

o Location of the cafe o Lack of awareness from the public

o Lack of quality in customer service

o Fruits are full of nutrition and help keep
a person healthy

o Fruit Delight Cafe only uses fruits of the

freshest quality in making its desserts

o Provides a stylish social environment

for customers to chill out on any other
occasions

o An open concept bar area that allows

customers to see how their desserts
are made

o A unique and original ‘Design-your-

Own’ concept

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 OPPORTUNITIES THREATS
o Standard of living in Singapore is o Many established dessert cafes in
improving hence more Singaporeans Singapore
are becoming more health conscious
o Employers being poached away by
o New technologies being introduced competitors or quitting abruptly

o Working with the local government o Inflation of prices

Health Promotion Board to promote
healthy eating o Ideas and concepts being copied by
competitors
o Establish an excellent reputation in the
market and also a strong relationship o Availability of fresh fruits from suppliers
with its customers

3.1.1 Strengths

o Fruit Delight Cafe is located in Bugis Street, one of Singapore most famous
streetwear fashion street which is easily accessible by public transports and
many people and tourist go there for their shopping.
o Fruits are packed with vitamins and materials hence they are highly nutritious
and healthy food. Fruits also reduce the risk of cancers and other heart-
related diseases.
o Fruit Delight Cafe strives to meet customers’ expectations by consistently
using fruits of the freshest quality to make its desserts.
o The main attraction and selling point of Fruit Delight Cafe is its open concept
bar area where customers can watch how their desserts are being made.
Fruit Delight Cafe. Secondly, Fruit Delight Cafe has a ‘Design-Your-Own’
concept where customers can get to choose any two fruits available in the
cafe to create their own unique desserts.
o Singapore being a tropical country where most of the time the weather is hot
and humid, Fruit Delight Cafe provides a relaxed atmosphere for people to
chill out on any other occasions.

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3.1.3 Weaknesses

o Not many people may be aware of Fruit Delight Cafe as it is a newly opened
dessert cafe.
o As Fruit Delight Cafe is a relatively new business, fresh employees may be
unsure about the importance of customer service hence the quality of
customer service in the cafe may varies.

3.1.3 Opportunities

o As standard of living in Singapore is improving, Singaporeans are becoming

more health conscious. Fruit Delight Cafe aims to target these groups of
Singaporeans.
o In order to entice the target market, Fruit Delight Cafe can capitalise on the
recent technology trend such as introducing the Online Food Ordering
System that allows customers to place their order online.
o Fruit Delight Cafe will partner with the Singapore Health Promotion Board to
promote healthy eating and raise awareness on fruit nutrition.
o As Fruit Delight Cafe is new to the market scene, there are many
opportunities for Fruit Delight Cafe to capitalise on and excel in so as to
establish a strong customer base.
o (Kotler & Armstrong 2008, p. 13) states that “the key to building lasting
customer relationship is to create superior customer value and satisfaction.
Satisfied customers are more likely to be loyal customers and to give the
company a larger share of their business”.

3.1.4 Threats

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o Competition in the dessert industry is tense as “more cafes and restaurants
devoted to just serving desserts are opening” (The Sunday Times, 2007).
o Fruit Delight Cafe faces a threat
which is hardly avoidable when employers are being poached away by fellow
competitors or employers quitting without giving ample notice.
o Food inflation price can be a
major threat to the business as the cost of desserts will have to increase so
as not to suffer any major loss.
o Competitors may copy Fruit
Delight Cafe’s idea and concept.
o Fruit Delight Cafe faces a major
threat if there is a shortage of fresh fruits from the supplier.

3.2 TWOS Matrix Table

Strength
Opportunit
o A tropical country like Singapore
ies where most of the time it is hot and
humid, Fruit Delight Cafe also serve
can as a refreshment area for people
to get away from the heat.
o Standard of living in Singapore is
improving hence more Singaporeans
are becoming health conscious.
 A ‘Design-Your-Own’ concept
which means customers is
given the freedom of choice to
choose any 2 fruits available
for their dessert order.
 An open concept bar area that
allows customers to watch how
their desserts are being made.
Weakness
o Fruit Delight Cafe will
partner with the Singapore Health Promotion
Board to promote healthy eating and raise
awareness on fruit nutrition. Secondly, facts
about fruit nutrition will be displayed on the
menu and eating tables to create more
awareness.
o Service staff will be encouraged to do
suggestive selling by recommending ‘Fruit of
the Day’ dessert and explaining the nutritious
facts of it
o In conjunction with
promoting healthy lifestyle, Fruit Delight Cafe
will have a “Fruit Day” on the last day of
every month by giving away free fruit to
customers and staff.
o To keep up with the pace of technology trends
and upgrades, the cafe can implement new
technology system such as Online Food
Ordering System.

o Fruit Delight Cafe will

have its own website site to promote itself to
the public.

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Threats
o To ensure quality assurance to
customers, Fruit Delight cafe uses
only fresh fruits for making their
desserts.
o Adopting a ‘Relationship Marketing’
strategy; placing feedback forms on
eating tables for customers to
evaluate on the services provided in
the cafe. From these feedbacks, the
cafe management will have an
overview on how to further improve
the food quality or service provided.
o Incentives for employers that receives
compliments from customers at the end of
every 3 months.
o Forging a good relationship with the supplier
and staff members. Selling desserts at
discounted price for members of the supplier
or cafe.
o Establish good relationship with a few fruit
suppliers

o There are already many established

dessert cafes in Singapore. In order to
stand out among other competitors,
Fruit Delight Cafe strive to provide
better customer service hence staff
members will undergo teambuilding
and training workshop to further
improve the quality of their customer
service skills.

4. Market Segmentation

According to Kotler and Armstrong (2006, p. 46), the market consists of many
types of customers, products and needs hence it is important for the marketer to
determine which segments offer the best opportunities for his or her business.
(Kotler and Armstrong 2006, p. 46) defines market Segmentation as “the process
of dividing a market into distinct groups of buyers who have different needs,
characteristics, or behaviours, who might require separate products or market
programs”. Market segmentation encourages customer orientation by keeping
businesses closely in touch with their customers, ensuring more efficient
resource allocation and resulting in marketing programs which are better attuned
to customer needs (Albert 2003; Beane and Ennis 1987; Freytag and Clarke
2001). According to Wong and Saunders (1993), by improving customer
orientation, market segmentation also has the potential to develop competitive
advantage and improve business profitability.

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Therefore, by applying the market segmentation strategy, Fruit Delight Cafe is
able to break down the overall market into different segments and target its
customer more effectively.

Fruit Delight Cafe uses the demographic segmentation variable to segment the
market. Demographic segmentation divides the market into groups based on
variables such as age, gender, family size, family life cycle, income, occupation,
education, religion and race. Demographic segmentation is used as the
consumers’ needs and wants often vary closely with the demographic variables.
By using the demographic segmentation, the following markets identified were
families, teenagers, working adults, middle aged, the elderly and retirees.

4.1Target Market

After the process of demographic segmentation, the next step is to identify

potential customers by deciding on which markets Fruit Delight Cafe wishes to
target at. Kotler and Armstrong (2006, p. 183) state that in the evaluation of the
different market segments, an organization must look at three main factors:
segment size and growth, segment structural attractiveness, and company
objectives and resources. Fruit Delight Cafe must first collect and analyze data
on the current segment sales, growth rates and expected profitability for each
segments. Secondly, Fruit Delight Cafe also needs to examine the external
environmental factors that affect the long-run attractiveness of each segment.
Last but not least, Fruit Delight Cafe must consider its own objectives and
resources in relation to each segment.

Fruit Delight Cafe focuses on the local market targeting Singaporeans who are
health conscious. Singapore provides an excellent climate for Fruit Delight Cafe
as people are willing to spend on healthy food.

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Health Conscious Singaporeans

A National Nutrition Survey was conducted by the Health Promotion Board in

2004 to find out more on the diet of Singaporeans.

Fig.1 (Source: National Nutrition Survey 2004)

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Fig.2 (Source: National Nutrition Survey 2004)

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Fig.3 (Source: National Nutrition Survey 2004)

Fig.4 (Source: ACNielsen CATI Omnibus June 2005)

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Based on the above statistics, fruits are one of the major contributors of dietary
fibres in the diet of Singaporeans. Singaporeans are also a health 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.4, almost 60% of
Singaporeans are found to be health conscious when it comes to their diet.
Based on these findings, there is definitely a market for Fruit Delight Cafe to
capitalize on.

After much research and evaluation of the market segments, Fruit Delight Cafe
will target two groups of customers, teenagers and working adults.

Working Adults

Fig.5 (Source: National Nutrition Survey 2004)

Results showed that the most common choices found among Singaporean adults
include fruits in their diet (39.3%).

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Teenagers

Fig.6 (Source: National Nutrition Survey 2004)

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The statistics in Fig.6 show that Singaporeans between the age of 18 and 19
include fruits in their diet.

Hence from the above findings, there is definitely a market for Fruit Delight Cafe
to focus on which is the working adults and teenagers.

Market Positioning

After deciding on which segment of the market Fruit Delight Cafe aims to target,
the management must now decide on where to position the cafe within the
chosen markets so as to create a distinct image or identity in the minds of their
target markets for its products. As Kotler and Armstrong (2006, p. 191) states, a
product’s position is the place that occupies consumers’ minds relative to
competing products. It is important for Fruit Delight Cafe to employ marketing
strategies to determine its position as Fruit Delight Cafe need to gain a
competitive advantage over the other cafes and food court around the vicinity of
Bugis Street.

To determine the position of Fruit Delight Cafe, product differentiation strategy

will be used. Product differentiation can come about by physical attributes,
service, personnel, location or image (Kotler et al. 2009, p. 215). Fruit Delight
Cafe will position itself according to image as the idea and concept of Fruit
Delight Cafe’s selling point is an original one. Fruit Delight will strive to create an
image of a colourful and trendy relaxed environment where customers can chill
out while having a bowl of refreshing fruit desserts. Fruit Delight Cafe will also
differentiate itself based on service excellence. Fruit Delight Cafe recognized that
first-rate services are crucial to enhancing customer satisfaction. Hence, Fruit
Delight Cafe staff members are encouraged to go all out to serve and provide
valuable services for their customers.

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Marketing Activities and Budget Planning

With a given budget of $30,000, the management need to select the most
appropriate marketing activities to successfully promote and launch Fruit Delight
Cafe into the market. These marketing activities must be able to create
awareness to the public before and after the opening of the cafe.
The list of chosen activities and timeframe for each of them are listed below.

Activities with Budget Remarks Timeframe

Market Research Market research will be carried out via internet and Ongoing
[$2000.00] street surveys in order to find out more about customers
awareness on the importance healthy eating and how to
eat healthy.

Newspaper Newspaper advertising is chosen to gain recognition 1 month

Straits Time from the local people. The advantage of newspaper [Before opening of
Newpaper advertising is due to its huge market coverage. cafe]
Lianhe Wanbao
[ $1000.00]
Magazines By advertising in magazines, Fruit Delight Cafe can 1 month
8Days reach out to its target audience, educate them about its [Before opening of
Lifestyle products or services, and move them closer to making a cafe]
Teens purchase.
[$2000.00]
Social networking Social networking websites such as Facebook is a very Unlimited
websites common trend among IT savvy Singaporeans now.
Facebook One of the major benefits of advertising on a social
Online food forum networking site is that advertisers can take advantage of
the users’ demographic information and target their ads
appropriately.
TV advertisement Fruit Delight Cafe chooses TV advertising as one of its 6 weeks
[$10,000.00] marketing activities as commercial advertising has
excellent market coverage and can reach out to the
masses easily. A few advantages of advertising by
television are that it allows us to convey our message
with sight, sound and colour which can be very
effective in grabbing the audience attention. Secondly,
it also gives us the opportunity to be creative and attach
a personality to the business.
Flyers/Brochures Flyers and brochures will be distributed around the 1 Week
[$3500.00] vicinity of Bugis Street before and after the opening of [After opening of
Fruit Delight Cafe. cafe]

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Internet Website for Fruit Fruit Delight Cafe will have its own website to promote Unlimited
Delight Cafe itself to the mass audience. Visitors to the site will be
[$3000.00] able to browse its online menu and be aware of its
future promotions of the cafe.

Health Road show Fruit Delight Cafe will work in conjunction with the 3 days
[$5000.00] Singapore health Promotion Board to conduct a road [After opening of
show in orchard road to promote its business and also cafe]
to educate the public on the importance of healthy
eating lifestyle.
Invitation of local media During the opening ceremony of Fruit Delight Cafe, the Opening day
to the opening ceremony local media will be invited to promote the cafe. ceremony of Fruit
of the café Journalists will also be invited to for the ceremony and Delight Cafe
Cocktail reception do a write up on the cafe. Mini fruit hampers will also
Buffet be given away to all members of the public. This form
[$3000.00] of marketing is called buzz marketing.

Conclusion

In conclusion, Fruit Delight Cafe not only offers healthy fruit desserts to its
customers but it also educates the public on the importance of healthy eating.
Based on this report, the major strengths and weakness of the cafe were
highlighted. The target markets chosen for Fruit Delight Cafe are teenagers and
working adults and the cafe will position itself towards these market groups
according to image and service. With a given budget of $30,000, Fruit Delight
Cafe has also come with a list of cost effective marketing activities with a holistic
marketing mix to promote itself to the public.

Recommendations

o Nutrition facts of fruits to be printed out on the brochures and flyers used for
distribution.
o Internet website of the cafe to be designed and created at least 2 months
before the opening of the cafe. Date of opening will be displayed on the
website.
o Arrange with the fruit supplier to make sure that the supplies are delivered
on time in preparation for the opening ceremony.

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o Fruit Delight Cafe will have a ‘Fruit Day’ on the last day of every month by
giving away free fruits to customers and staff.
o Develop partnerships with the local Ministry of Health and Health Promotion
Board to organize events and road shows in the future.
o Review the success of the marketing activities and analyze on how future
marketing activities can be improved.

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