Bengawan Solo A. Category Definition
A retail confectionary chain selling premium-quality cakes and desserts to serve special occasions, especially Full Month Celebrations, Birthdays, Chinese New Year, and the Mid-Autumn Festival. It also specializes in retailing handmade traditional Indonesian desserts. B. Main Competitors 1. PrimaDéli – Confectionary chain with large retail network. Retails mid-priced freshly prepared goods to consumers as snacks, and also sells cakes and seasonal baked goods. (Prima Deli) 2. Polar Puffs and Cakes (“Polar”) – Retail confectionary chain which additionally differentiates itself emphasis on savoury puffs. (Polar Puffs & Cakes) It also retails baked goods for special occasions. Polar enjoys…show more content…
Opening more cafés in strategic locations such as outside supermarkets would attract tired shoppers just as the need for a rest strikes them. Furthermore, there are no Peranakan cafés in the Singapore market at present; thus Bengawan Solo would serve to satisfy an unexplored market. In addition, cafés are an excellent avenue for Bengawan Solo to conduct small-scale product testing on customers, and gain immediate feedback on new products. They would also benefit from a branding perspective, as the café would immerse customers in the full Bengawan Solo experience, thus building brand equity.
1. Threat of New Entrants. Bengawan Solo operates in the highly competitive F&B industry which has close to no barriers to entry – R&D and equipment costs are low, and it is easy to imitate products. In addition, its potential competitors are larger, established players in the F&B industries and may have greater financial and marketing resources. The entry of new competitors into the same F&B segments or into the immediate areas around the group’s retail outlets would thus affect its earnings. 2. Westernization of Consumer Tastes. Continued earnings growth for Bengawan Solo is highly reliant on the sustained popularity of its traditional cakes and desserts. However, current dessert trends in Singapore indicate increasing demand for Western-style desserts. Cupcake shops and Western-style Japanese bakeries, for example, have proliferated in the past