Marketing-Change and Environmental Scanning

Part A: (1) Introduction of Singapore Singapore is a multi-racial city-state located in the Southeast Asia with a population size approaching 5 million residents (Singapore Department of Statistics, 2010a). Established as a trading post back in the 18th century and with a favourable geographical advantage, it became one of the busiest ports in the world. After gaining independence in 1965, it took merely four decades to transform into a modern industrial economy and also one of the top financial centres in the world. The competitive environment and hunger for a higher standard of living impose a high stress level on the average earning residents. This part of the assignment will now explore the demographic and lifestyle developments over the past decade in Singapore.

Demographic and Lifestyle Developments Ageing population – The population of elderly residents aged 65 years and above increased 1.5% from 2000, building up to 8.7% of total population in 2008 (Singapore Department of Statistics, 2010a). During the same period, a contrasting decline in the population of residents aged below 15 years was recorded, developing into a higher old-age support ratio and a fast ageing nation. The growing phenomenon is due to a lower reproduction rate and increased life expectancy which are characteristics of a developed nation. People also tend to marry later and a lower reproduction rate from adopting a single child mentality in order to have a more enjoyable lifestyle and ability to provide more for the single child.

Affluent lifestyle – The rise in job opportunities and higher salary positions over the last decade have steered the working class population towards a more affluent lifestyle. The average employed households income increased from $5097 in 1999 to $7549 in 2009 (Singapore Department of Statistics, 2010b). This significant increase armed the working 1

population with a higher disposable income. They began to lead a more affluent lifestyle consuming

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