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Embracing New Horizons
Embracing New Horizons
- Business Strategy Development
- Organisational Culture Consulting
- Customer Strategy
Founded in 2000, Siam Coconut (SC) is a family-owned business that specialises in the supply and distribution of coconuts, coconut water, affiliated produce and health-centric products. The brand’s efforts to provide quality products has led it to become one of Singapore’s top coconut suppliers, distributing to over 600 establishments, including but not limited to hotels, restaurants, and ice creameries.
Siam Coconut had five challenges they needed help addressing. The brand’s drink product, “COCOLOCO” had a limited market reach, its target, only niche audiences of specific demographics, and was only selectively distributed.
Furthermore, with the growing trend towards healthy lifestyle and the increasing application base of coconut, the market for coconut derivatives is expected to register growth in the coming years. Siam Coconut wanted to leverage the growing demand for coconut derivatives in the food and beverages industry.
Besides taking advantage of the emerging demand for coconut derivatives, Siam Coconut sought to extend its brand equity to reach other consumer groups and drinking occasions in other categories, as coconut water continues to become mainstream.
Lastly, they desired to enhance their market penetration to satisfy a variety of tastes and boost their Green Branding profile to become associated with environmental conservation and sustainable business practices.
Business Strategy Development
- Thrust: to re-brand COCOLOCO from ‘Taste’ to ‘Well-being’
Globally, consumers are getting more health-conscious and seeking healthier products such as coconut water, which are marketed as a dehydrator, a natural diuretic, digestive soother, and cholesterol-lowering product. The growing demand for low calorie sodas and increased awareness of the benefits of coconut water will drive the demand for pure coconut water in the years to come.
We recommended that SC should update and work towards strengthening its marketing and branding strategies by building new product awareness and social media buzz among core segments in the coconut water market. A host of marketing initiatives were proposed to SC in a 5-year Business Plan (2023-2027). A human-centric approach to marketing was adopted to help SC better understand consumers’ motivations in relation to their brand positioning and communication. We also helped SC develop a marketing plan.
- Thrust: to expand coconut water from ‘product’ to ‘platform base ingredient’
With the growing trend towards healthy lifestyle and increasing application base of coconut, the market for Coconut Derivatives is expected to register growth in forthcoming years. Coconut derivatives are derived or extracted from coconuts such as coconut oil, coconut water, coconut milk, coconut sugar and coconut flour.
While liquid coconut water accounted for the largest revenue share of more than 80% in 2019, the Powder Coconut Water segment is expected to register the fastest CAGR of 16.5% from 2020 to 2027.
Organisational Culture Consulting
- Thrust: Exclusive distributorship
SC will be taking up the role of an Exclusive Distributor for the distribution and sale of a selected range of Harmless Harvest beverage products in Singapore. In addition to the expansion in product portfolio, this partnership will also further enhance the company’s Green Branding with more organic, sustainable, and ethically-sourced products.
Customer Strategy
- Thrust: Mass customisation.
According to a consumer review by Deloitte, 36% of customers express interest in purchasing personalised products[3]. 1 in 5 consumers who expressed an interest in personalised products.
On basis of packaging – SC is encouraged to mirror the success of COCOLOCO 1L Tetra Pak, and further penetrate the mass consumer market with Tetra Pak Prisma® Aseptic 330ml (or 200 and 250 Edge) with DreamCap™ packaging, which is perfect for on-the-go consumption.
On the basis of customer demographics – SC could expand coconut water into a variety for children – COCOLOCO KIDS, which brings fun and functionality to the children’s beverage while appealing to health-conscious moms.
- Thrust: to optimise flavour formulation.
As consumers demonstrate a willingness to try new beverage alternatives to juices and soft drinks, there are opportunities for SC to optimise flavour formulation and product development using the functional power of coconut water.
Examples of coconut water variations proposed include: flavoured coconut water, sparkling coconut water, cultured probiotic coconut water, coconut-based products fortified with vitamins, etc.
Coconut water is a versatile liquid, with huge potential to move into other beverage categories. A Beverage Mapping was developed for SC to illustrate the potential of coconut water as a versatile drink.
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- To achieve a 15% market share growth for pure coconut water in terms of sales over the next three years.
- The coconut derivatives’ product is expected to contribute to about 5% of Siam Coconut’s total revenue.
- To expand the product portfolio by introducing additional 3 new products over the next 2 years.
- To achieve a contribution of 5% of total revenue from new product launch in the first year.
- Improved Green Branding
- Improved earnings – this will help SC to double its EBITDA from $94,000 to $187,000 over three years (based on a projection of sales of $500,000 in year one, with an increment of $250,000/year and reaching $1,000,000 in year three)