Cold Storage Strategies
Beginnings
In its early years, Cold Storage was an independent small retail depot selling mainly frozen meat from Australia, and its target customers were mostly Europeans. From 1965, to achieve economies of scale, Cold storage adopted the concept of multiple retailing, where bulk buying activities and distribution of food products to a network of stores throughout Singapore and Malay Peninsula was carried out (Goh 2003). Cold Storage also pioneered the manufacturing of condensed milk and other milk products such as UHT milk, Magnolia soft drinks and soya bean milk to serve the ever changing consumer taste buds (Goh 2003).
In 1993, Cold Storage, with 11 stores at that time, was acquired by Dairy Farm International Holdings who had plans on expanding its operations in Singapore. Even after being acquired, Cold Storage’s primary vision (strategy) remains unchanged; always to cater to customers’ unique needs. This case study highlights the background and how Cold Storage attained its current success to-date. It also emphasizes the present environmental factors which led to their strategic decision to sustain its competitiveness.
Competitions
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Source: EuroMonitor International 2009
Like all other companies, Cold Storage faces intensive competitions. Till date their major competitor in the supermarkets industry is NTUC FairPrice, with a total of 81 outlets islandwide. The co-operative makes much of its efforts to keep prices low on basic products for the benefit of the less well-off. Initially, Cold Storage targeted middle to upper income segments of the consumer market, emphasizing on freshness and quality (Goh, 2003). In contrast NTUC FairPrice focuses on patriotism and low prices to promote sales (Euromonitor, 2004). Recently, NTUC FairPrice Co-operative Pte Ltd launched new concept stores; FairPrice Finest in 2008, to compete with Cold Storage in the upper income segment of the supermarket industry.
Coming a distant third in the supermarket segment, domestic
In its early years, Cold Storage was an independent small retail depot selling mainly frozen meat from Australia, and its target customers were mostly Europeans. From 1965, to achieve economies of scale, Cold storage adopted the concept of multiple retailing, where bulk buying activities and distribution of food products to a network of stores throughout Singapore and Malay Peninsula was carried out (Goh 2003). Cold Storage also pioneered the manufacturing of condensed milk and other milk products such as UHT milk, Magnolia soft drinks and soya bean milk to serve the ever changing consumer taste buds (Goh 2003).
In 1993, Cold Storage, with 11 stores at that time, was acquired by Dairy Farm International Holdings who had plans on expanding its operations in Singapore. Even after being acquired, Cold Storage’s primary vision (strategy) remains unchanged; always to cater to customers’ unique needs. This case study highlights the background and how Cold Storage attained its current success to-date. It also emphasizes the present environmental factors which led to their strategic decision to sustain its competitiveness.
Competitions
[pic]
Source: EuroMonitor International 2009
Like all other companies, Cold Storage faces intensive competitions. Till date their major competitor in the supermarkets industry is NTUC FairPrice, with a total of 81 outlets islandwide. The co-operative makes much of its efforts to keep prices low on basic products for the benefit of the less well-off. Initially, Cold Storage targeted middle to upper income segments of the consumer market, emphasizing on freshness and quality (Goh, 2003). In contrast NTUC FairPrice focuses on patriotism and low prices to promote sales (Euromonitor, 2004). Recently, NTUC FairPrice Co-operative Pte Ltd launched new concept stores; FairPrice Finest in 2008, to compete with Cold Storage in the upper income segment of the supermarket industry.
Coming a distant third in the supermarket segment, domestic
References: Books Goh, CB, 2003, ‘Serving Singapore, A Hundred Years of Cold Storage, 1903-2003’, Cold Storage Singapore, Singapore