Kazi & Kazi tea is the only substantial organic tea grower in Bangladesh. The tea garden is located at the Tetulia, the Northern district of Panchagar, only 50 km south of Darjeeling. Kazi and Kazi Tea is the pioneer of organic tea produced in Bangladesh and the first to be certified by international certifying authorities. Kazi & Kazi produces premium quality tea from their tea-estate. Their tea garden is the first and the largest tea garden in Bangladesh. Kazi & Kazi tea was most highly valued at the tea auction in 2004.
Their premium quality tea is available in Bangladesh under the brand Kazi & Kazi, which is widely, accepted by the consumers as best quality tea in Bangladesh. Kazi & Kazi tea markets its product internationally under the Brand Teatulia. The teatulia tea is promoted in the prestigious Harrods in UK and it is the only local tea brands to export tea in USA and Japan. It is also the only local tea to be carried out in the prestigious Harrods of UK the brand Teatulia is greatly accepted in USA as one of the favorite tea of the consumers.
Kazi & Kazi teas have wide variety of tea under the Kazi & Kazi and Tetulia brand.
The different types includes, Teatulia Black, Tetulia white, teatulia Green, Earl of Bengal, Bengal Breakfast, Neem Nectar, Tulsi infusion, Lemongrass Herbal Infusion, Ginger Herbal Infusion, Peppermint Herbal Infusion. Under Kazi & Kazi brand there are Kazi & Kazi Organic Black Tea, Organic Tulsi Tea, Organic Green Tea and Orthodox Black Tea. It is the only local brand to be certified organic by USDA and SGS. The mission of Kazi and Kazi tea is to produce great tea by supporting natural and social environment. The philosophy of Kazi & Kazi is to produce to not by harming nature but by sustaining it.
They have started their tea garden in virgin land of Tetulia, which has never used before for any cultivation under the permission from Bangladesh Tea board on August 6, 2000. The company is eager to engage with the community. From this they have started many social responsibility programs, which include poverty alleviation through cattle rearing, Safe hygienic distribution, Adult literacy Education, and IT education, Distribution of Herbal and Medical Plant and many more. About Malaysia Geographic Location Malaysia is located in the heart of South-East Asia, slightly north of the equator.
Malaysia consists of two geographical region named Peninsular Malaysia and East Malaysia. It is comprised of 11 states and the Federal Territory of Kuala Lumpur. Another one is East Malaysia consisting of two states and Federal Territory of Labuan. The total area of Malaysia is about 329,847 sq. km. People Malaysia is known as multi-racial country. As of 2010, the total population of Malaysia is 28. 3 million with an annual population growth rate of 1. 7%. Malays are the prominent group comprising of 53. 3% of total population. Others include 26. 0%, indigenous 11. 8%, Indian 7. 7%, and others 1. 2%.
Most of Malaysians are Muslims consisting of 60. 40% and then Buddhism 19. 2% following Christianity and others. Malaysia has a literacy rate of 93. 5%. Language Bahasa Melayu is the official language of Malaysia. However English is widely used for business. Apart from this languages Chinese and Tamil language are also common in Malaysia. Currency The local currency is Ringgit Malaysia (RM). The current exchange rate of 1 RM is 24. 54 BDT. Foreign currencies can be readily exchanged from banks or licensed moneychangers in Malaysia. Economy As of 2010 the nominal GDP of Malaysia is $ 255. 3 billion.
Annual real GDP growth rate of Malaysia was 6. 3%, 4. 6%, -1. 7% and 7. 2% for 2007, 2008, 2009 and, 2010 respectively. The estimated GDP growth rate by Malaysian government is 5-6% in 2011. Though the GDP growth rate was negative, Malaysia has positive 7. 2% GDP growth in the subsequent year. The GDP growth was largely contributed by growth in the manufacturing and service sectors. Inflation rates are also lower in Malaysia. Cultural Analysis Malaysia is a multi-cultured country because of number of people living in Malaysia is from different ethnic group. Most of the Malaysians are hospitable.
The Malaysians offer tea or coffee along with snacks to their guest. The guest must sip at least once to let accept the guest’s hospitality. Men dominate the society in Malaysia over women. Men are the decision maker in the family but in modern Malaysia this trend is decreasing and more power is going to the women. Greetings are dependent on the ethnicity of the person you are meeting. Handshake is normal in Malaysia. Most of the Malay women do not prefer to shake hands with men but with women. The businesspersons are very much friendly but formal and they prefer to exchange business cards in the first meeting.
Malaysians rely on the non-verbal communication along with the normal conversation for the harmonious purpose. Malays prefer to give a hint rather than directly putting up a statement for both negative and positive purpose. Silence is a very important element in Malaysian communication and in the purpose of different negotiations. Malaysian people do not like to the people who vent their anger in public. It embarrasses them. Overall the communication purpose should be taking into account very carefully for success. Consumption Pattern
According to a survey on the consumption pattern for Malaysian consumption pattern of Malaysian consumers in beverages it was found the 97% of the consumers regularly drink 6-7 glasses of pure drinking water. The second drunk beverages were tea, which was 47% (Norimah et al, 2008). So from this point it is obvious that the Malaysian consumers have a strong tea drinking culture. In Malaysia, the per capita tea consumption is . 80 kg (Source, Wikipedia). Price Sensitivity of Consumers Malaysian consumers are very price sensitive. In a recent survey done by the Nielsen showed that among 51 countries Malaysia is the top most bargain hunter.
Rising fuel cost and increase in the overall life style cost has the influence over the consumers to be more prices sensitive. The research also showed that, the Malaysian consumers value the larger packages. As the director of retail measurement service of Nielsen Mukund Tripathi said, “This pull factor from the retailers has not only fed the consumers’ desire of buying consumer goods at lower prices, but has also driven them to be more price-sensitive” (as cited in Ibrahim, 2011, para 5. ). From this statement it is clear that the packaging should be in bigger size and packaging should be bundle offer.
Industry Analysis PEST Analysis: Political Factors 1. Strong Government Support: Hence there is a huge demand for tea market in Malaysia, but there are very few tea companies in Malaysia; govt. tends to support the tea industry to go on their and do the business and meet the demand. 2. Taxes: In Malaysia companies both resident and non-resident have to pay 26% on all income or profits derived from Malaysia, which is comparatively higher than the other neighboring countries like Singapore (17%). 3. Political Stability: Political stability in Malaysia is a great plus point for doing business there.
People from all the communities want to live peacefully in Malaysia. 4. Required Approval from Domestic Trade Division: In Malaysia companies are allowed to do wide range of business but for carrying our wholesale and for retail trade in Malaysia, company need approval from Domestic Trade Division, Ministry of International Trade and Industry at the beginning. 5. Treaty between Malaysian Govt. and Bangladesh for Double Taxation: Malaysian govt. has treaty with Bangladesh for double taxation. Company here doesn’t need to pay double taxation for their business profit, dividends, interest and royalties.
Economic Factors: 1. Inflation Rate: Inflation rate in Malaysia is very low. Inflation rate come down to 1. 7 in 2010 from 5. 4 in 2008, which is also a very good indication to run the business in Malaysia. Because of this low inflation rate consumers can buy the products at low price and help us doing the business smoothly. 2. Trend in GDP Growth Rate: GDP is another important economic factor in business model. At present GDP growth rate of Malaysia is 7. 2%, which is really good. Though the GDP growth rate is not in balance shape in Malaysia, because last years’ GDP growth rate was -1. 0% which was really bad for the business especially like us. Government decided to focus on more exporting to bring the situation to a normal, and at the present the situation is stable and has the positive indication for our business. 3. FDI Inflows: Malaysia has been one of the most successful South East Asian Countries in attracting Foreign Direct Investment (FDI) in their country. Though their FDI inflow dropped in 2009 due to economic crisis but it’s again increased in 2010 and the govt. of Malaysia is now willing to increase this FDI inflow to better the situation of their country. Social Factors: 1.
Food Customs at Ceremonial Occasions: Malaysian is famous for its hospitality. When Malaysians have guests they tend to be very fastidious about hospitality, and they offer tea or coffee with small snacks for visitors. We can position our product and integrate it easily in these social practices. 2. Tea Culture among Chinese People: Though Malaysia a multi-racial country, there is a big propensity of people are from Chinese regions; they are the second largest community in Malaysia after Malay people. And for Chinese people tea is like a culture to them. It’s like ritual; they even celebrate “Tea Ceremony. So that’s a good sign for our demographic market as well. 3. Average Propensity to Consume: From a research it’s found that 47% of Malaysian consumers drink tea, which also says that after water Malaysian people depends on tea consumption for drinking purpose; all in all the average propensity to drink tea among Malaysian people is very high. 4. Consumers are Price Sensitive: Consumers of Malaysia is quite price sensitive. Along with that inflation rate in Malaysia is pretty low, so for at obvious reason price of the product is quite low in Malaysia rather than other neighboring countries. Technological Factors: 1.
High-tech Infrastructure: Technological advancement in Malaysia is a great advantage and can be a big push for our company. Porter Five Factor Analysis Threats of Substitutes Though the overall propensity of Malaysian drinkers to prefer tea is high (Norimah et al, 2008), the threat of substitutes is high. There are many other different drinks in Malaysian market. Starbucks are the market leader in the hot drinks market in Coffee, other teas like iced tea and different types of drinks are substitutes. The Bargaining Power of Supplier The bargaining power of supplier is low as we are the owner of the tea garden, which is in its mature stage.
The Threats of New Entrants The threats of new entrants are high. Malaysia government is flexible for the domestic firms to establish their businesses in Malaysia. As reported by the Euro monitor, affordable pricing and localized product has gained popularity amongst the consumers, which will allow the domestic company to start their business. Industry Rivalry Industry rivalry is high. There are two big companies in Malaysia to produce tea. The largest one is the BOH and the second largest is the Bharat tea plantation. They have a huge market share in Malaysia in the tea market. The Bargaining Power of the Buyer
The bargaining power of the buyer is medium. We will offer different types of tea but in Malaysia the two big companies are not offering many of our types so the bargaining power is low where we will offer different tea. But overall the bargaining power is medium as the consumers can easily get different tea from other brands, which are available through various distribution channels. They will easily compare the products. SWOT Analysis Strength: 1. Good Brand Image in the International Market: The Kazi & Kazi tea is very successful in USA in Bangladesh and is perceived as a premium quality tea in both countries.
So, the Malaysian consumers will accept the Kazi & Kazi tea as a premium tea. 2. Strong Supply Chain Management: The supply chain management of Kazi & Kazi tea is excellent. From sourcing to the final stage the distribution network is excellent. It will help to offer the consumers the best tea available all the time. Kazi & Kazi tea is also very efficient in handling the international distribution. 3. 100% Certified Organic Tea for Good Health: Kazi & Kazi has the certificate of 100 % organic from USDA and SGS. 100% organic tea is perceived as the healthiest of all teas. Consumers will take Kazi & Kazi as reliable brand to consume.
Weakness: 1. Low Brand Equity in Malaysia: The brand equity of Kazi & Kazi is low in Malaysia. Kazi & Kazi tea is also going to be the late entrant in the tea market of Malaysia as there are other big competitors. 2. Lack of Knowledge about Malaysian Market: Lack of knowledge on the market situation of Malaysia than the competitors will be a weakness initially as we do not have enough knowledge on the local market. Opportunities: 1. Few Local Competitors: There are only two (BOH and Bharat Tea Plantation) local tea producers in Malaysia, rest of them also import tea in Malaysia like us, which is a big opportunity for our company. . Good Infrastructure: Malaysia has very good infrastructure in their country. Communication network is very strong which very much recommended for doing any business in any country. It will help us to do the business smoothly. 3. Double Taxation Agreement: Bangladesh and other 67 countries have treaty with Malaysia for avoiding double taxation by the companies. Because of this treaty company don’t need to pay double taxation for their business profit, dividends and interest and royalties. 4. Positive Consumption Pattern: Malaysian consumers have shown a very good habit of tea (47%) just after the habit of plain water (99%).
The market is larger than the hot drinks market of coffee. There is a huge opportunity of the Kazi & Kazi to market the tea in Malaysia. Threats: 1. Approval of Domestic Trade Division: For carrying out wholesale and for retail selling in Malaysia first we need the approval by the Domestic Trade Division office is required, so it can be a huge threat for us for going for the business. 2. Uncertainty in GDP Growth Rate: Recently we observe that there is a huge fluctuation in GDP growth rate. The GDP went down drastically in 2009 to -1. 7%, though the GDP again get in stable position by 2010 to 7. %. So it’s a huge threat for a company especially like us to sustain in the market. 3. Change in Regulations: Change in regulations is always a matter of concerns for all the MNCs’. It’s very hard for a company to cope up with new rules and regulations in a foreign country. Competitor Analysis Direct competitor: Our direct competitors include two main tea producers in Malaysia. These are the pioneers in tea industry of Malaysia. 1. BOH: An Englishmen named J. A. Russell established BOH. BOH is in Cameron Highland and it owns Sungai Palas tea plantation.
It is the largest tea plantation in Malaysia that is about 1,200 hectare. It produces more than four million kg tea a year. This is about 70% of local output and 50 % of the local consumption (Data from tea auction). BOH is also the leading brand of Black tea in Malaysia. 2. Bharat Tea Plantation: It was established in 1933 and is also in the Cameron Highland. It is the second largest tea produces in Malaysia. Local production of Bharat tea planation is less than three million kg. (Data from Tea auction) Indirect competitor The following brands and companies are our indirect competitors.
Though they are not directly related to our products but they are in the hot drink culture and is the substitutes of tea. Nescafe Nescafe is the number one instant coffee seller in Malaysia. Nescafe stands out as one of the major competitors and is purported to currently command up to 70% of the local Malaysian market share in the coffee segment (Adam 2009). The propensity of Malaysian consumers to drink coffee is next to the tea. Starbucks, and Others Our other competitors include Starbucks and other coffee shops in Malaysia. Lipton Iced Tea Though it is not in the hot drink culture but it is one of the main substitutes of tea.
Unilever and PepsiCo jointly own it. As reported by Unilever, every seconds 1649 Lipton tea in enjoyed by the Malaysian consumers. Product Market in Malaysia Tea industry in Malaysia is on the go, there is a huge demand for tea in the market and the industry is in the maturity stage in the market. However organic tea is quite a new sort of product in Malaysian tea market. The market is growing in great extent, and though people are now-a-days becoming more health conscious they are accepting this new form of tea because of its health effectiveness.
From the data we found that 47% of people used to have tea in Malaysia, which is commendable; and after water, tea is the highest as per drinking habit. It’s the part of their hospitality where they serve tea with little snacks to the visitors at the beginning. Another important positive factor is that in Malaysia only 2 companies are local whom produce tea, rest of them are exporting tea in Malaysia. So we can use our brand image easily on the market with a new product line and can capture, and enjoy the market profitability conveniently. Malaysia Market Environment and Trend Analysis
Malaysia has always been an attractive market to the foreign investors for the supportive governments, supportive business policy, lucrative market, healthy economy, quality of life, vibrant business environment, developed infrastructure, and a huge market. We can divide the tea market into different consumers segments by where the coffee is drunk, In-home vs. out of Home; and different type of products, tea bag, and loose dry tealeaves. In a survey, it was found that, tea is the second most beverages items that are consumed by the Malaysian people. In the research it was found that 47% of Malaysian consumers drink tea (Norimah et al, 2008).
The percentage has increased recently and the tea business opportunity is increasing. Research found a positive correlation between GDP per capita and the amount of tea consumed (Kendrick, 2008). From these findings we can conclude that, as the economy of Malaysia will grow there will be more thirst for tea. The heath branding is very much frequent in this field. Companies are continuously associating their brands with the healthy lifestyle. Organic tea is healthy and consumers are running towards the health benefits. Marketing Strategy Product The products will be consists of the different types of tea.
In the initial stage we should introduce the black tea, white tea and the green tea in the Malaysian Market. In Malaysia the white tea is not available so the products will be a huge success as all the ingredients are herbal. After capturing the market share in Malaysia we should introduce the other different tea. 1. Black tea: This tea is full of unbelievably fresh aroma and is very refreshing. The color is golden with reddish hue. The dry leaves are small leaves with golden tips throughout. 2. Green tea: The dry leaves are broken leaves. The aroma of this tea is wood and fresh green and grassy like fresh clean hay. . White tea: The dry leaves are gorgeous half-inch needles with delicate soft white fuzz. It is full of rich and subtle aroma and the tea is in gorgeous golden color. Packaging There will be different packaging size offered from us. We will offer tea bags and also the multi-packs size. We will also introduce the tea jar in the Malaysian market as it is not available in Malaysia to let the consumers choose the different boiling level of their tea dry leaves. The jar will contain loose dry tealeaves. In the packaging of tea there will be clear information of the ingredients and the other instructions.
We will use both Malay and English as the language for our information. The packaging will be in bright color to attract the consumers’ mind. Black tea will be in black color packet and the tealeaves will be in golden with reddish hue. The green tea packet will be green in color and white tea will be in white color packet. In all the packets the tagline and ingredients will be mentioned. 100% organic single garden, this line will be clearly mentioned in all the packaging front sides. Price In a recent research by Nielsen, it is found that the Malaysian consumers are very price sensitive.
So we should carefully design the pricing of our products. We will follow the competitors pricing strategy and then we will price our products a bit lower to capture the market share. It will help us to increase our sales to the price sensitive consumers. The sachet, tea bags will be priced differently and the multi-pack bag will be a great value for consumers as bulk volume will be in a lower price. Following is the proposed pricing for the tea: * Black tea * 50 tea bags- USD3. 00 * 100 tea bags-USD5. 50 * 250gm. Jar- USD2. 00 * 500gm. Jar- USD3. 50 * Green Tea * 50 tea bags- USD3. 50 * 100 tea bags-USD6. 0 * 250gm. Jar- USD2. 50 * 500gm. Jar- USD4. 50 * * White Tea * 50 tea bags- USD4. 50 * 100 tea bags-USD8. 50 * 250gm. Jar- USD3. 50 * 500gm. Jar- USD6. 50 Place Our products will be available through the various retail chain outlets in Malaysia.
There is a hypermarket trend in Malaysia so it will be very good choice to choose the supermarkets. We will not choose all the super markets. Initially we will choose the popular supermarkets, which have extensive stores all over Malaysia. Our products will be available through 7- Eleven, Tesco, Jusco and Giant retail chains in Malaysia. These retail outlets cover ll parts of Malaysia and they have a very big customer base. In a research it is found that many consumers of Malaysia will buy the products if the products are delivered to their door. From the initial stage we will do this as we have a same platform in USA, which allows shopping online from our websites. Consumers will also be able to experience KK tea from fine restaurants and from different cafes. Promotion Without creating awareness among the consumers we will not be able to capture the Malaysian market. We have to run three months promotional campaign in Malaysia for the initial period. Brand Positioning
We will position our products as 100 % organic tea with new and exciting taste. Consumers need to understand the health benefits of drinking organic tea. We have to communicate with consumers that our products are new and innovative. Segmentation Demographic Segmentation Age: The product is for almost all ages. But for our segmentation we will segment the market from younger ages to the older ages. Sex: Our product is for both male and female. Income level: Middle to upper class people having a good disposable income as our products will be positioned as premium healthy tea. Geographic Segmentation
Initially we will cover the major cities of Malaysia and gradually we will spread our market to all over Malaysia. Psychographic Segmentation Attitudes and values: Our products are 100% organic and very healthy. People who are health conscious and value the pure products are our customers. Lifestyles: Consumers who want a healthy lifestyle. Behavioral Segmentation Loyalty status: Customers who are loyal to drink tea and the customers who are drinking tea of other brands. Switchers: The customers who switch the brands and find for more innovative items and products to satisfy their needs. Target Marketing
At first our target market will be the existing customer of different tea brands, who are unsatisfied with the existing tea brands and continuously searching for the new and exciting teas. We will focus on the customers who place and importance to freshness, taste, healthy, and great experience in drinking tea. We will focus on creating new demand for the existing consumers of other brands who are seeking for the perfect tea. Promotional mix Objectives of the Campaign * To create awareness among the consumers. Our initial objective will be to let the consumers know about our tea and create awareness among the consumers.
We will first run our campaign to let the consumers be familiar with our products. If we can make the consumers aware of the brand then we will be able to increase our sales. Tagline “Find the inner you in a healthy way!! ” Which is in Malay language, “Mencari dalaman anda dengan cara yang sihat. ” (translated from “Google Translator. ”) Description The tagline simply tells the refreshing feel the consumer will get drinking the tea. Find the inner you mean, finding the inner ambitions, feeling, and feeling of doing the differences. The inner you also Advertising
We will use print media, Television and out of home media to reach our target audiences. The timing of the advertisements will be selected according to the target audiences’ preferable time. We will place billboards where a. The traffic count is high b. Intersection of the roads c. Important tourist places Experience Center In collaboration with different super stores we will run this campaign to let the consumers experience the exciting taste of KK tea. We will offer consumers to taste tea in our place and then decide. We will also distribute free samples and arrange different competitions to engage customers with our brand.
It will be very critical for our success in the Malaysian market without creating consumer awareness. Interactive Marketing Now-a-days interactive marketing is very critical for the success of any company. After careful observation of our competitors marketing policy we have found that the companies use Facebook fan page for the Interactive marketing purpose. We will also open a Facebook fan page for the two-way communication between our customers and us. Customers will also know different promotional offers offered by our company. TVC Concept Concept overview: The TVC will showcase the freshness of KK tea.
It will show how drinking KK tea will refresh the mind of the person and will help to find the inner self. It is inner strength, inner peace, inner ambition and inner secret!! The TV ad will portray the fact that drinking tea will help the person to find who really the person is. This TVC will create an urge to the consumer to KK tea and be more confident to do something, so something right, do something to change the world. TVC: The TVC will start with a girl in a boat alone. She was travelling to pass time but suddenly a storm will attack and the boat will start drowning.
The boat will not drown but the girl will be sailed to a different place on the other side of the sea. The girl will see another girl who is exactly the same. He will walk to that girl and suddenly the girl will be vanished and entered into her. The girl will find her inner strength to survive in this situation. Finally, the TVC will show the girl is drinking KK tea and our tagline will appear with some message. This TVC will be completely animated with a very good jingle to associate the customers feeling with our brands. Estimated Marketing Budget
Marketing budget is one of the most important factors before launching a business. In this case we made a hypothetical marketing budget for 3 (three) months which will give us the idea of how much money we will need to do the marketing KK tea in Malaysia. Though there is a cost benefit for company as in we will enter the Malaysian market through an agent, in that case we will use the warehouse of our agent to store the products safely. The estimated marketing budget for 3 months is given below: Contents| Amount ($)| Newspaper| $55,000. 00| TVC| $105,000. 00| Billboard| $35,000. 00| Launching Event| $15,000. 0| Experience Center| $50,000. 00| Sponsorship | $15,000. 00| Website Design and Maintenance| $25,000. 00| Total| $300,000. 00|
International Logistic It is very crucial to determine how to market the products in International Market. In distribution, we are going to have our agents in Malaysia. We will have different employees from Malaysia to collect the information on Malaysian market. Our agents will comprise of local employees to know the market more and to effectively market our product in Malaysia. We will follow the same distribution policy from Bangladesh to USA in case of Malaysia.
At first both packaging and the quality will be maintained from Bangladesh and we will export the products to Malaysia through container shipments. The products will be delivered to the port Klang of Malaysia. From port Klang, the products will be delivered to our agents and then the products will be distributed in different retail stores, restaurants from our warehouse. Finally our products will be available from different superstores, which are most popular in Malaysia. We will have our warehouse and other vehicles to distribute the products in Malaysia. Barriers and Obstacles
No business is possible without any obstacles and barriers. According to Malaysian government business policy, foreign companies are allowed to engage in a wide range of business except some; e. g. to carry out wholesale and retail trade in Malaysia. But approval is granted after careful observation of the company. The approval is granted from the Domestic Trade Division, Ministry of International Trade and Industry (UHY, 2009). From this point, it is clear that we can face difficulties in setting up our agent’s office in Malaysia. Other obstacles include the delayed shipments of our products.
As we will ship our products from Bangladesh, the products shipment may be delayed and cost us money. If the demand increases in Malaysia and we fail to ship in time we may lose our business in Malaysia. Hiring the right personnel for our marketing, distribution and operations may be difficult in Malaysia. Way to Overcome the Obstacles We should have a strong supply chain network to overcome the obstacles. Managing the demand carefully will increase our chance to satisfy the consumers. Managing demand and supply effectively will ensure the right time shipments and availability of the products.
We should maintain a good inventory management and control in Malaysia. We should have our warehouse control software to manage the peaks and valleys of demand. In conclusion, the container shipment is the most cost effective way to deliver our products in large volume. Klang port is also the busiest and important port in Malaysia. Conclusion The tea market in Malaysia is very attractive market to enter. Malaysia has a strong tea drinking culture with more than 47% people prefer to drink tea. The total tea production in Malaysia is not perfectly fulfilling the demand of the consumers.
The Malaysian people are also hospitable and they like to offer their guests tea. Malaysia is very economically healthy country and there is a huge customer base with more disposable income. More and more people are becoming health conscious and going organic. Malaysian consumers prefer to buy from the superstores, which is very helpful for us as we do not want to lose the premium image of our tea in the market and we only offer our products through large retail chains and our websites. Along with other factors, another important factor is Malaysia government is very helpful in the case of doing business in Malaysia.
From economic profile Malaysia secures 18th among 183 countries’ economies in 2012, last year the position was 23 (Doing business in a more transparent world, World Bank, 2011). Considering all of these factors it is clear that, we should launch our products in Malaysia. With the right marketing strategy we will be successful in the Malaysian Market. Contingency Plan There is always high risk associated with high profit in the international business. We don’t know what will happen in future, how it will impact; but in international business very high investment is involved.
So handling uncertain situation every company keep some back up plan to hold the company in times of danger. In our case, we also set up some back up plans for the uncertain incidents like risks include economic uncertainty; fluctuations in exchange rate change in laws and tariffs; changes in peoples’ taste and demand; delayed shipment etc. As we see in Malaysia there was a huge fall in GDP growth rate as well as in FDI inflows because of economic downturn in 2009, though it become normal in 2010; this situation is uncertain and have great risk for the business. This downturn effect many businesses in Malaysia on that time.
For that reasons we have to keep an eye on the exchange risk fluctuations to overcome and can take preventive measures from before to tackle it. Change in laws and tariffs are another threat factor for international business. Government can change its rules and regulations any time for the betterment of the country, that rules sometimes might be helpful, but it can also be risky for the business as well. For this situation we have to keep friendly relation with the government and need to follow every rules and regulations from the beginning so that government have no complain against us.
Along with that we will set the price with little high margin so that any sudden change in regulations can be dealt promptly. Though tea is like tradition and part of their culture in Malaysia still peoples’ perception might change and they might want some new features in tea in the future. To tackle the problem we think of doing the survey on regular basis every year so that we can know about change in peoples’ choice and taste time to time and can satisfy their demand. For doing international business timely shipment delivery is a major issue. Although we don’t have control over the natural disasters and in other ccidents, for that reason we will observe our inventory in Malaysia time to time so that we can fulfill the demand properly. All the shipment will be on our connection all the time so that we can monitor them 24/7 until it get shipped. When the demand for the product will increase in the market we think of introducing “Just in Time” (JIT) services in Malaysian market in the future. Because that will help the consumers find it available our products all the time in the market and we will have direct monitor about our product in the retail store. Changes in exchange rate in doing international business are another big issue.
The exchange rate might increase or it might decrease as well. Both the situations create uncertainty in the business. Consumers sometimes don’t accept the sudden change in price for any reason. Keeping the problem in mind we adjusted the price of our product a bit high so that we can handle with the change in exchange rate and can keep our consumers satisfied. The demand fluctuations are a common issue in the business. There are peaks and valleys of demand. To meet the customer demand is very necessary for the continuity of business success and customer satisfaction.
If customers do not get what they want, they will be switching to other brands and eventually we will lose business. So it is very critical to maintain a advance inventory management system to meet the customer demand. To maximize our potential, we need to have a strong marketing strategy to be successful in the Malaysian Market. We have to recruit local marketing experts for s strong marketing strategy. This will help us to know the local market from the experienced people in Malaysia. Secondly, we have to introduce more of our products to the market after establishing a strong customer base of us.
The new products, which we already have in the USA market, will be a critical factor for our success. Our new products will offer the customers to taste different exciting taste of different types of tea. Thirdly, we have to be innovative for our success. We have to carefully monitor the market condition, market demand and others. We have to constantly do market research to have the latest data available and then offer the customers which our competitors didn’t though about and the customers were always looking for. Reference
Cite this Bangladesh Organic Kazi and Kazi Tea
Bangladesh Organic Kazi and Kazi Tea. (2016, Oct 14). Retrieved from https://graduateway.com/bangladesh-organic-kazi-and-kazi-tea/