Yeo Hup Seng Essay Example

Seng vision’s is to be the No. 1 Asian Food and Beverage Company in Malaysia. The main targets are to be No. 1 in Instant Noodle category and to be No. 1 in Canned Food category.

For Instant Noodle it has two range which is normal range (Assam Laksa flavor, Asli flavor, Curry flavor and Mushroom flavor) and non fried noodle.For canned food product it has Chicken Curry, Chicken Kurma, Chicken Vindaloo, Satay Chicken, Beef Curry, Beef Rendang, Lamb Curry, Mutton Curry with Potatoes, Cuttlefish in Soya Sauce, Fish with Salted Black Beans, Sardine in Tomato Sauce, Fish Sambal, Tuna with Chilli and Basil Leaf, Tuna with Sliced Chilli, Tuna Flakes in Vegetable Oil, Prawn Sambal, Cockles Curry, Clamps, Seri Kaya, Salted Black Beans, Salted Soya Beans, Baked Beans in Tomato Sauce, Cream Style Sweet Corn, and Processed Peas.Canned drinks products it consists of Fizzi Cola, Fizzi Orange, Fizzi Pomelo, Fizzi Rootbeer, Fizzi Sarsi, Fizzi Soursoup, Grass Jelly Drink, Green Tea, Herbal Tea, Soya Milk, Sugar Cane Baverage, and Winter Melon Tea. TB drinks (packet drinks) products it consists of Black Soy Drink, Chrysanthemum Tea, Green Tea, Herbal Tea, Laichi, Lemon Tea, Justea Green Tea with Lemon, Justea Green Tea with Peach, Justea Ice Tea with Lemon, Soya Bean Milk, Sugar Cane Baverage and Winter Melon Tea. For Sauces it has Chilli Sauce and Tomato Sauce.

YHSM continued to maintain its position as market leader in non-carbonated drinks. Yeo's Justea was an outstanding product for the Group this year. Boosted by new launches of exciting flavours, vibrant packaging designs and refreshing taste profile, the Justea range contributed 6% of revenue of YHSM. Justea won the Gold Brand

Equity Award in the RM50 million category.

The Award is conferred by Brand Equity, a magazine that recognises the performance of both local and international brands operating in Malaysia. Business Strategy Consumer Focus Yhsm has long been a consumer-focused food and beverage company.Focus on the consumer is based on the well-known adage that "The Customer is King". In order to serve consumers better, YHSM carries out market and consumer research to identify customer needs, wants and expectations. Consumer trends are closely and constantly monitored through extensive research to keep abreast of the changing needs of the consumer.

Results of researches help YHSM procure new product ideas and make innovative changes to existing products. Improvements have been made to past innovations such as packaged ready-to-drink teas and soya beverages.Emphasis on fair pricing is another important factor that contributes to the sales of Yeo’s products. As YHSM products are targeted to the general audience made up of various income groups, effort is taken to ensure that consumers get quality and value in a product. Creative advertising and marketing strategies employed are targeted towards reaching our consumers. Clear and informative, our advertising and marketing campaigns are designed to inform the public about latest Yeo’s products in the markets, on-going promotions and also act as a reminder to consumers on the wide range of quality products YHSM has to offer.

YHSM gives priority to customer’s feedback because it serves as the driving force behind YHSM operations. Category Leadership Yhs has been among the pioneers in the food and beverage industry in South East Asia. This Category Leadership position is achieved through innovative research and sound marketing strategy. The sale of packaged teas

and soyabeans, which are among the favourites of today’s consumers, has helped YHSM maintain its leadership position. YHS are the category leaders in several segments namely in non-carbonated drinks such as the soyabean, cooling drinks and ready-to-drink teas.

Focus and priority is given to the fast-growing and strategic category. YHS’s Product Research and Development Division is actively searching for new ideas and exciting variants in our range of beverages. Channel Management Quality products require strategic and efficient distribution to reach the consumers; the consumers are met through the extensive YHS distribution channels via supermarkets, mini-markets, wholesale outlets, institutions, provision shop, coffee shops and convenience store. Outlets in Malaysia that carry YHSM products possess varying and unique characteristics.

The YHSM distribution network takes these characteristics into account and accommodates these variances. Yeo’s well-trained sales and marketing personnel service these outlets on a regular basis. A marketing mix has been tailored to each of these outlets with regards to the product, pricing, promotion and place (location). Even packaging formats for products differ for each outlet, to meet the needs of consumers in each particular town. Believing that communication is the foundation of effective marketing, YHSM ensures that its staff undergoes extensive training to be competent service providers.

Cost control, not to be confused with cost cutting, is one of YHSM methods of allocating cost of operation. Personnel of YHSM are required to be trained on cost controlling. YHSM strives to reach optimum efficiencies in its operations. At YHSM, cost control in the purchasing of raw material, in factory operations, warehousing, marketing, distribution and administration are applied. Cost control is implemented without compromising on quality and improvements. Hence, no cost is

spared when it comes to investing in new technologies to increase efficiency and production quality at YHSM.

Through its Management Information Systems, the finance department at YHSM provides timely information and measurements to all departments, ensuring that a certain level of control is maintained. Confidence Strategy and Planning Training sets the goals of the employees against those of the company and is aimed towards rationalizing and achieving the two goals. Implementation of Actions Plans are formulated to convert goals agreed upon into an action plan. Skills Personnel are provided with adequate training for the execution of the agreed plan.Communication Personnel in each department are provided with the required communication skills for effective communication throughout the organization. This is to gear employees towards attaining excellence in their jobs, which in turn will ensure a team spirit that will drive YHSM to greater heights.

Marketing department is responsible for product management of non-carbonated drinks, carbonated drinks, canned sweetened, condensed milk, canned food, instant noodles, sauces, processed meat, non food product.YHSM have the single most extensive Fast Moving Consumer Goods (FMCG) sales distribution network in the country with sales offices in Alor Setar, Ipoh, Johor Bahru, Kota Bahru, Kota Kinabalu, Kuala Terengganu, Kuantan, Kuching, Melaka, Mentakab, Miri, Petaling Jaya, Prai, Sandakan, Shah Alam, Sibu, and Taiping. Led by experiencing Area Sales Managers, YHSM have teams of salesmen equipeed with the lates hand held computers providing personal services directly to customers which comprise sundry shops, coffee shops, Chinese medical halls, minimarkets, supermarkets, hypermarkets and hotel.YHSM is a company which was experiencing rapid growth, and a diversification into related fields was a natural move. At the beginning, YHSM introduced the Schweppes range

of canned drinks in 1985 while in 1984, became the first in Malaysia to develop and pack carbonated tropical fruit flavour drinks such as pomelo, lychee and soursop under the "Fizzi" brand name in 325ml cans.

That year also saw YHSM becoming the first in the country to introduce 100% mixed fruit juices in 125ml tetra briks under the "Junior Juice" brand. This was followed by the launch of Yeo's sweetened condensed milk in 1992.By 1994, Yeo's was already a household name in both Malaysia and Singapore. It was time for the company's expansion plans to take effect. YHSM established a joint venture with Worldgrain Co. Ltd to produce canned Asian drinks and in 1995, YHSM acquired subsidiary Rengo International Investment Ltd Hong Kong which operates Xiamen Rengo Food Co.

Ltd. to manufacture and distribute instant noodles in China. Back home, the innovation and research & development did not let off as YHSM produced non-fried instant noodles; a first in Malaysia.With the newly established opportunities abroad and a bold new outlook domestically, the company had to physically reflect the great changes it was undergoing. The familiar Yeo's logo was redesigned to give it a fresher and more dynamic look and was subsequently introduced to the Malaysian community in 1996.

As 40 years in Malaysia, YHSM has produced many “offspring” and developed alliances with other companies which share goals and commitment to quality. YHSM’s Wholly Owned Subsidiaries Include: Bestcan Food Technological Industry Sdn. BHD. produces and manufactures nstant noodles. Households may be familiar with "Cintan" noodles' "Chicken Mushroom" or "Assam Laksa" flavours as well as “Goodtaste” Non-Fried Noodles.

Esin Canning Industry Sdn. BHD. is involved in the production of canned

food. Leong Sin Nam Farms Bhd is involved in the production and distribution of processed meat and livestock.

Yeo Hiap Seng (Sarawak) Sdn. BHD. produces a wide range of sauces and beverages which covers the Yeo's range as well as the range from Pepsi International. Yeo Hiap Seng Trading is responsible for the operation of YYeo Hiap Seng's wide distribution network.The Group's trading arm distributes food, beverages and other non-food products.

Due to the distribution network's strength, Yeo Hiap Seng Trading also distributes products for other reputable manufacturers. Rengo International Investment Ltd is a Hong Kong incorporated company where YHSM enjoys 54. 83% share ownership. The company acts as an investment holding representing Yeo Hiap Seng's interest in China's huge consumer-based market.

Rengo International Investment Ltd's subsidiary, Xiamen Rengo Food Co. Ltd manufactures and distributes instant noodles in the Fujian Province of China under the brands of "Wei-Wei" and "Yeo's".YHSM’s Indirect Subsidiary Companies Comprise: Xiamen Rengo Food Co. LTD is registered in the People's Republic of China where it undertakes the manufacture and distribution of instant noodles in Fujian Province. The company is a wholly owned subsidiary of Rengo International Investment Ltd based in Hong Kong where Yeo Hiap Seng enjoys 54.

83% share ownership. Xiamen Rengo Food Co. Ltd commenced its operations in Jun 1994 after which YHSM assumed management on 4th June 1995. The brand names currently carried under the Xiamen Rengo Food Co. Ltd banner are "Wei-Wei" and "Yeo's".YHSM Associated Companies: YEO HIAP SENG currently owns 23.

85% of the shares in Senawang Edible Oil (Sendirian) Bhd. The company is in the processing and trading of palm oil products. Sarawak Coconut Enterprise Sdn Bhd manufactures and distributes

coconut related products. Currently supplying the local market, the company has the potential for widening the market to include marketing coconut cream powder overseas. One of the notable products produced is the "Goodtase Santan" instant coconut cream powder which is completely water soluble for cooking convenience.Yeo Hiap Seng's Bumiputera joint-venture partner, Yakin Aneka Sdn.

BHD. was formed as part of the company's employee development plan to encourage greater Bumiputera participation in the food & beverage business. Yakin Aneka Sdn Bhd is involved in the trade of instant noodles, cordials and packet drinks targeted at the Bumiputera market. The company actively seeks to spread its reach geographically to identify and secure new markets in emerging townships.

WY CO. LTD represents YHSM's major push into the Thai consumer market.This joint venture between Yeo Hiap Seng And World Grain Co. LTD was formed in October 1993 and registered in Thailand.

WY CO. LTD manufactures and distributes non-carbonated canned drinks under the "Eliza" brand name. Current flavours include soyabean, chrysanthemum tea, herbal tea (known as "cheng liang" in Thailand), lo han guo, longan-wintermelon, orange tea, peach tea as well as lemon tea. The company also produces drinks in PE bottles. Flavours include lychee juice, strawberry juice, orange juice, pineapple juice and grape juice.