Advices for Singapore Companies that Are Planning on Venturing Their Business Overseas

Introduction

The purpose of this report is to help and give a brief outlook of business expansion to Singapore companies that are planning on venturing their business overseas in terms of showing them the various opportunities that they might get or the challenges they might face as well as the tips and tricks to tackle and solve them. Also, this proposal includes the steps taken to achieve success, knowing the right time to grab hold of your opportunities are all carefully listed.

This report highlights the recommendations that ensures the success for Singapore companies that are venturing overseas as well as a overview of the company that we have chosen based in Singapore that has already been branched overseas. We are mainly focusing on the 3 main key factors that they might face when venturing overseas and the steps that they should take or follow, the opportunities and challenges they may face and lastly, providing them with valuable recommendations to further improve their business or strategies that they could apply on to tackle potential challenges or issues.

This report will not include the following: The network of the company, how the company choose to market their products via the various or different media platforms and whether if the local government provides any form of financial support to company that wants to venture overseas.

In this report, most of our secondary sources are obtained from reliable Internet reports found online, newspaper articles and academic journals like the straits times, tripadvisor, and the official website of Old Chang Kee.

Singapore companies are being encouraged by the government to venture overseas. SMEs are being funded by the government to help them to grow their businesses. By having Singapore companies venturing abroad, it not only helps companies to overcome the constraints of domestic market as Singapore is relatively small as compared to other countries. It is also important for companies to internationalise for access to global market, resources and to expand their country as these companies will help to escalate needs for services. By having more Singapore companies overseas, it will help Singapore grow into a value-creating economy.

Finding and analysis

Corporate profile

Started in 1956 as a small stall in a coffee shop near the then Rex Cinema along Mackenzie Road, Old Chang Kee quickly gained its popularity among many Singaporeans. From across the country, Singaporeans would come to try the delicious curry puffs then known as the ‘Rex Curry Puffs’. Because it was well-loved by many Singaporeans, Old Chang Kee started growing bigger as a company, having up to 80 outlets across Singapore.

By 1993, Old Chang Kee has already expanded their business to Kuala Lumpur, Malaysia. In the following years, they also started expanding to Australia and Indonesia. There are a total of 9 outlets in Australia, Indonesia and Malaysia.

Revenue for the past few years of old chang kee

The revenue of Old Chang Kee for 2018 has an increased in revenue of S$7.1 million of about 9.1%. the revenue from new outlets and the increase in revenue from the existing outlets that they have. There are also other forms of revenues such as delivery, catering service which led to an increase of approximately S$65,000 as the demand for delivering and catering services have increased. (table form)

Number of stores overseas

Old Chang Kee have an approximately of 9 outlets overseas which are respectively at Australia, Indonesia, Malaysia as these countries are nearer to Singapore and they may have the same taste of food as Singapore and will most probably support this brand which have ventured overseas.

Growth in customer base

Recently, Old Chang Kee as achieved “Halal” certification so as to reach out to the Muslim community. With it being “Halal” certified, it enables them to reach out to a larger pool of people as the Muslims will also get to purchase their product and helping them to gain more customers and receiving more revenue. With the brand being halal certified, it means that it will cover a higher percentage of customers as due to their religion they cannot consume food that are not halal certified.

Also, by choosing other Asia countries to venture abroad, they have similar taste to what the locals will eat and they will be more accepting towards the new product and may support the brand to be establish there.

Factor 1- Branding

Singapore is a highly respectable and well established country worldwide and thus, it is well-known amongst foreigners. Singapore is unconsciously a brand itself as well, just by hearing the word “Singapore”, most people will have the perspective that the products, goods or services being sold are of top quality and it must be real good.

Especially in this case, a Singapore local delight (Old Chang Kee) that is loved by many Singaporeans is being sold in a foreign land will spark interest and curiosity amongst the locals living there but also with the mindset that “Oh! It’s from Singapore so it should taste great!”.

Old Chang Kee uses the colour yellow as it is the most luminous among all colours of the spectrum. It’s the color that captures our attention due to it being very striking making us notice it immediately when we see it. When we notice it, we will most probably look at what they sell and maybe will purchase the items there. It also has a close similarity to the golden-brown colour.

Old Chang kee official website has information which enables customer to learn more about the brand story and marketing activities. Allowing customers to know the newest promotion and the knowing the newest unleashed new flavour.

Old Chang Kee’s name is easy to remember in terms of as old Chang Kee is a dialect which makes it easy for people to remember as they people in Asia knows how to speak dialect and the food are also Asian food which will suit Asians taste bud. Also, they have built a rather established and reputable position in the food and beverage industry throughout the years of their business operation. Through their manufacturing of the standard but famous original curry puff as well as the innovative creation of new flavours of curry puff and a wide variety of others fried and delicious snacks to choose from. The style of their outlets is simple and traditional looking, which is a representation of their historical background.

Factor 2- Product Differentiation

Products that are different in terms of its tastes and outlook will be recognised immediately by the locals as it is different from the food that they eat in their country as the looks, taste and how it is being packaged is different from how the locals pack their stuffs.

For Old Chang Kee, they have different flavours of curry puff that differentiate them from the normal traditional curry puff that we will normally buy. This will allow people in other countries to know the brand due to the food that it gives to consumer is different. It allows them to remember the unique flavor of it.

Old Chang Kee curry puffs are different from Malaysia’s curry puffs in terms of flavours and ingredients used. While traditional Malaysian curry puffs consist of the typical potatoes and chicken bits, Old Chang Kee curry puffs have more option in terms of flavour like Sardine, Kaya, Jackfruit, Nasi Lemak, Durian, Chilli Crab etc. Thus, people are given a range of options to choose from; making Old Chang Kee the go-to place to buy their curry puffs.

Old Chang Kee is also well- known for their other fried foods which will cater to the taste of people. Also with different flavours of curry puff, it will make consumer wanting to try out the product as traditional curry puff only has potato or sardines flavours.

Factor 3- Consumer growth strategy

If Singapore companies are intending to expand overseas, they will have to consider the difference in consumers taste. As Everyone has different taste and preference for food, sometimes the liking of the locals may not be well-liked by the people overseas. Maybe it is due to how they are used to consuming the food they have overseas and may not be used to a newly introduce food in their country. By catching the consumer's taste, it will ensure that the company will do well as they know what the locals in that country want and more people will buy if it suits their taste.

Old chang kee has been featured in TripAdvisor Malaysia, on Old Chang Kee, states that travellers give out comments such as the curry puff is not disappointing and very nicely done, the price is reasonable and it is convenient to access to as it is located in a shopping mall. Customers are also commended the wide range of curry puffs to choose from and at the side there are cakes and drinks sold.

Old Chang Kee also has outlets in Indonesia, a Muslim country, by getting it halal certified it can attract more customers to buy their products. As curry puff is an a malay food and it is slightly different from the traditional curry puff, it will make customers curious and want to try it. As Old Chang Kee sells food such as curry puffs, sotong balls and other kind of fried food, it will cater to the taste of Asia if they expand at Asia countries such as Indonesia, Malaysia. Also, Indonesians love to eat spicy food, if old chang kee curry puff can be made spicier in Indonesia, it will probably be able to attract more people making old chang kee successful in venturing overseas.

Conclusion

After doing our research, we found out various crucial factors that affects the successfulness of companies expanding overseas. These factors includes the company’s branding, products differentiation and lastly, consumer tastes. Hence, we have came up with the top 3 recommendations that will further help them to ensure success in their business such as conducting detailed market surveys, setting up of interviews with company’s personnel and lastly, the use of physical or digital marketing to promote their brand.

All in all, the process of expanding a businesses overseas requires time and careful planning, you will also need to pay particular attention to the cultural differences that may require you to alter your normal business processes but it is still important to stick to the roots of your products and not change it too differently. With expansion of local businesses overseas brings greater exposure as well as increased awareness of our local eats.