Building A Brand
- Business Strategy Development
- Customer Strategy
Red Lips foods started out at a retirement hobby for founder Koh Hock Chye, and has grown steadily over the years into one of Singapore’s leading suppliers of Kueh Pie Tee.
They’re facing an issue of a limited customer base size served per annum, and they are mostly B2B clientele.
They recently delved into eCommerce platforms to try expanding into a B2C base. However, there is no solid plan nor clear goals set for the marketing campaign.
The KPT cups are very fragile. Whenever the cup loses its shape, it will lose its value. This happens especially to those loose cartons delivered to the customer, unlike those goods delivered by pallets where it is being handled by the forklift. The loose cartons tend be handled roughly during delivery, resulting in damaged goods.
The existing machinery supports innovation of products and services and the costs involved is the modification of the mould set. The management is responsible for the product research and development.
However, there is no proper product launch strategy that includes developing, launching and promoting new products properly into the market.
One of the major challenges faced by Red Lips Foods is the shelf life of their Kueh Pie Tee (KPT) cups. To preserve its taste, the KPT cups should be consumed within 6 weeks after manufacturing. They have tried to extend the shelf life of the KPT cups to 6 months with better packaging condition for export market.
However, when the goods reached overseas countries, the remaining shelf life is only less than 2 months. With a short duration, they were unable to ensure all goods are sold before expiry.
The outbreak of COVID-19 has caused severe temporary impacts on company’s economic activity. To extend the shelf life to 1 year for overseas market expansion, the company needed cold storage facilities which resulted in the higher operating costs, further hurting the company’s profitability.