Sakae Sushi – Marketing Strategies
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1.0 Introduction
Sakae Sushi is the current market leader in Singapore which sells sushi with wide range of product and has more than 30 outlets located throughout Singapore. Sakae Sushi is the flagship brand of Apex Pal International Ltd. Its first outlet was established in September 1997 at Raffles Place, in the heart of Singapores financial.
2.0 Market research & Primary research
Market research is for discovering what people want, or need. It can also involve discovering how they act. Once that research is completed, it can be used to determine how to market your product.
2.1.0 Primary research
Involves the collection of information that does not exist yet, this can be through numerous forms, including questionnaires and telephone interviews amongst others. This information may be collected from questionnaires, magazines and interviews.
2.1.1 Observation research
Is the gathering of primary data by observing people, their actions, relevant situation first hand information obtained from field research such as interviews, focus group, observation, postal surveys and telephone questionnaires, etc.
2.2.0 SWOT Analysis
SWOT Analysis, the firms identifies and evaluates its most significant strengths, weaknesses, opportunities, and threats. To fulfil its mission, the organization needs to capitalize on its key strengths, overcome or alleviate its major weaknesses, avoid significant threats, and take advantage of promising opportunities.
2.2.1 Strengths
2.2.1.1 Brand name
The Sakae frog symbolizes a brand that is far sighted and poised to grow by leaps and bounds. Its smile indicates a friendly company, welcoming all. Its Asian heritage is reflected through the lower body of the frog that is reminiscent of a Chinese gold ingot, and a bowl filled with rice. The frogs head and belly also symbolises the number “8” that is an auspicious number.
2.2.1.2 Quality Food and Services
Sakae Sushi use fresh food and its rice are enriched with vitamin E so it will attract many customers. Sakae Sushi service is also special, it use computer system to take order, this can save time for customers and it also can improve efficiency. For the service convenience, each table is equipped with its own hot water tap so that people can have freshly steeped green tea any time they want.
2.2.2 Weaknesses
2.2.2.1 It does not advertise
Sakae Sushi does not place great emphasis on advertisements. Alternately, they are considered to be non-aggressive in their promotional companies. Obviously, compared to other sushi shops propaganda is not enough.
Firstly, is that the customers can not receive the new messages immediately. The Sakae Sushi motives for purchasing the products will not be publicly understood.
Secondly, is about the pervasiveness. Advertising is pervasive medium that permits the seller to repeat a message many times. It also allows the buyer to receive and compare the messages of various competitors.
2.2.2.2 High operational costs
Firstly, as Sakae Sushi offers its customer with fresh food, so if the food isnt sold today, cannot be used for tomorrow, the cost of materials are too high. On the other hand, some food air transports from Japan or other areas, following the disadvantage is high freight commitment. The limitation to it pricing strategy and it could not attract all of it intended target customers.
Secondly, the shops which located in shopping centre, these rentals cost rather more than many in the suburbs.
Thirdly, high-quality food needs of the high-tech cooks, relative to the payment of their salaries more and more than the same industry.
2.2.2.3 Diversified product
Sakae Sushi has a diversified range of Japanese food. However, the income of the firm is still heavily dependent upon its share of the Japanese food market. This may leave it vulnerable if for any reason its market share erodes.
2.2.3 Opportunities
2.2.3.1 Expand the unexploited market
Sakae Sushi has the opportunity to expand its global operations. New markets for Japanese cuisine such as North Korea and South Africa are beginning to emerge. Sakae also has the opportunity to expand the teenager market.
2.2.3.2 Innovation
Over the years Sakae Sushi has exhibited the ability to innovate to distinguish them from their competition. It adopted a simple two-tier price structure with colour plates going for merely S$2.99 and premium red plates at S$5.99, you can sit back and enjoy your meal without having to constantly worry about the bill. It also can innovative new product, such as a variety of desserts. This process of innovation can generates interest among customers to go there.
2.2.4 Threats
2.2.4.1 Emergence of Substitute Product
At present, many similar Japanese Restaurants have established in Singapore, and they set its price lower, and they promote their product use different ways. Such as when you consume $100, you can enjoy 40% discount, or buy two get one free. Customer always sensitive to the price, they will compare Sakae Sushis price with other restaurants, if these restaurants have similar product, but price is lower, then customer will shift to other restaurant. Consumer price sensitivity is a potential external threat to Sakae Sushi.
2.2.4.2 Market Entrant
As Sakae Sushi in a highly competitive market, so it has lower barriers to entry. Many enterprisers who want to enter the sushi restaurant business can get a loan, lease a building and start serving the sushi without too much trouble. Such situation causes Sakae will face many competitors, these new firm entries the market will cause sushis price to decrease, and Sakae will not make high profit in the future.
2.3.0 Survey Research
Survey research is very suited for obtaining descriptive information. For instance, if we wish to know about consumers knowledge, attitudes, preferences, or purchasing behaviour, consumer acceptable pricing,