Nam

Khoa Nguyen

Strategy

12.10.16

Individual Plan & Defend

ActiveSG is a national movement for sport that is all-encompassing and inclusive1. The movement
was launched by Sports Singapore in April 2014. ActiveSG offers individuals, communities and
families opportunities to experience and share the fun of living a better life through sport. How can
Haw Par Corporation utilize the national movement for sport to enhance the strategic advantage of
Tiger Balm in Singapore? To answer this question, I will first give a brief analysis of the market that
Tiger Balm is currently operating in before I suggest two options that we can carry out for the next
two years.

Tiger Balm is currently operating in the analgesics market. In 2015, the growth in the market was
approximately 6%, with sales reaching S$47 million. One of the causes that drive the growth is the
increasingly turbulent consumer lifestyles, which results in higher levels of stress, which again
causes migraines, headaches and stiff shoulders more regularly. In addition, marathons have become
more popular in Singapore and that Singapore has experienced a boom in gym openings. These
developments have led to the increase in demand of analgesics as a result of more cases of muscle
aches2.

Looking at the BCG matrix through the product life cycle, one would say that Tiger Balm is currently
in the star-phase (growth), as a result of the increase in our profit from 20133. The company has a
relatively high market share, and recent reports have shown that the company has experienced high
growth4. Another explanation for the rapid growth is the modernization of Tiger Balm. The products
have been redesigned, repackaged and reissued to target the new generation of consumers.

According to their website, ActiveSG has one main sponsor (Yonex) and one official sponsor
(Mediacorp). My first suggestion to enhance our strategic advantage is to make Tiger Balm become
one of the main sponsors of ActiveSG. The reason for this is because the brand name of Tiger Balm is
strong. Famous athletes and celebrities have been using the products and they have also endorsed
the products. This will raise awareness for new consumers of Tiger Balm. In addition, one of Tiger
Balms four ranges of products is called Active. This range of products caters to the needs of

1 ActiveSG, About ActiveSG, https://www.myactivesg.com/about-activesg

2 Euromonitor International, Analgesics in Singapore, January 2016,

http://www.euromonitor.com/analgesics-in-singapore/report
3 Singapore Management University, Tiger Balm: Roaring Back To Success, May 2016,

http://www.smu.edu.sg/perspectives/2016/05/25/tiger-balm-roaring-back-success
4 The Business Times, Haw Par rides on Tiger Balm to 31% profit growth in Q3, November 2015,

http://www.businesstimes.com.sg/companies-markets/haw-par-rides-on-tiger-balm-to-31-profit-
growth-in-q3

Nam Khoa Nguyen

Strategy

12.10.16

individuals who are constantly engaged in some form of physical activity, health conscious and
fitness oriented, which would fit the individuals of ActiveSG perfectly, which again would possibly
lead to an increase in sales and profit.

A challenge to this suggestion, however, is that some of Tiger Balms competitors in Singapore, such
as Eagle Brand (Borden Company Ltd), Amrutanjan (Amrutanjan Health Care Ltd), Salonpas
(Hisamitsu Pharmaceutical Co., Inc.) and Axe Brand (Leung Kai Fook Medical Company), could also
become one of ActiveSGs main sponsors. The brands are not so well known compared to Tiger Balm,
but they can turn the attention away from Tiger Balm to make sure that Tiger Balm does not stand
out. Also, Tiger Balm could be at risk for negative image association if ActiveSG is involved in a
scandal.

In our homepage, we state that CSR is a part of our DNA and that giving back to the community has
been one of our obligations since the foundation of the company5. Therefore, the second option that I
suggest is to engage in CSR, but in cooperation with ActiveSG. We could help ActiveSG in form of
small donations of the annual profit to help ActiveSG improve their facilities6 and create more
membership slots for Singaporean citizens. Furthermore, we could also give away free Tiger Balm
products as prizes to participants. Engaging in CSR will not only have a positive impact on the
stakeholders, such as families and the local community, but it will also have a positive impact on the
company because it will help us maintain our customers loyalty, while the customers will associate
CSR with Tiger Balm when they are purchasing eco-friendly pain-relieving ointments. Furthermore,
Tiger Balms reputation in Singapore would be enhanced by CSR.

Nevertheless, this suggestion also comes with a great risk. The shareholders of the company might be
reluctant to accept this proposition because practicing CSR could prove to be costly, and the
shareholders usually do not want us to misuse their money. Furthermore, giving away free Tiger
Balm products could also cheapen the brand, which means that the products might lose their value.
With that being said, Haw Par Corporation have been involved in many charity causes since 2004, so
this would not be a major issue because CSR is usually practiced once every year. I hope that you take
these two suggestions into consideration before you make your final decision.

5 Haw Par, Corporate Responsibility, http://www.hawpar.com/corporate-responsibility

6 The Online Citizen, ActiveSG has failed Singaporeans, October 2014

http://www.theonlinecitizen.com/2014/10/02/activesg-has-failed-singaporeans/

Nam Khoa Nguyen

Strategy

12.10.16

Sources:
ActiveSG, About ActiveSG, https://www.myactivesg.com/about-activesg

Euromonitor International, Analgesics in Singapore, January 2016,
http://www.euromonitor.com/analgesics-in-singapore/report

Singapore Management University, Tiger Balm: Roaring Back To Success, May 2016,
http://www.smu.edu.sg/perspectives/2016/05/25/tiger-balm-roaring-back-success

IESingapore, Haw Par Corporation (Healthcare): Tiger Balm Singapores iconic
ointment a huge hit in 100 countries,
http://www.iesingapore.gov.sg/sggoesglobal/hawparhealthcare

The Online Citizen, ActiveSG has failed Singaporeans, October 2014
http://www.theonlinecitizen.com/2014/10/02/activesg-has-failed-singaporeans/

Haw Par, Corporate Responsibility, http://www.hawpar.com/corporate-responsibility

The Business Times, Haw Par rides on Tiger Balm to 31% profit growth in Q3,
November 2015,
http://www.businesstimes.com.sg/companies-markets/haw-par-rides-on-tiger-balm-
to-31-profit-growth-in-q3