B. Measure market potential
1. Measure current level of imports of your product category At a glance, Vietnam’s tea for export is one of the nation’s three rising agricultural products in 2012, with a total amount of 148 thousand tons of exported tea. The tea import trend of Malaysia from Vietnam is on the increase but the percentage remains relatively low. In 2010, Malaysia tea import account for 1,4% of total Vietnam tea export turnover. In 2012, it almost doubles up to 2.4%. It may reveal a positive sign but the risks remain critical as Malays prefer strong teas and brands like Boh (Boh Plantations Sdn Bhd) and Lipton (Unilever (M) Holdings Sdn Bhd) that can be mixed with condensed milk and sugar, while Chinese consumers generally prefer lighter Chinese teas such as tie kuan yin, pu er, oolong and green tea.. Therefore, tea exported from Vietnam is often drunk my Chinese group living in Malaysia. So, the need for tea import from Vietnam remains stably low.
2. Measure current level of sales
Green tea tends to appeal to a small segment of society, especially Chinese and Malaysian consumers living in urban centres. Total amount of household consumption is 45,359 million USD with the growth rate of 4.9% in the period of 1990-2011. Value tea sales are likely to continue growing, albeit at a slightly slower rate than that seen over the review period. Fast-paced lifestyles among working urban consumers will result in increased demand for tea. This will be due to the trends of people increasingly consuming tea after a meal, as well as opting for tea as a product to help them through their busy day, especially those with specific health positioning, as such products are considered to offer specific health benefits and improve health overall. Therefore, the level of tea sales in Malaysia is expected to be increasing.
3. Quality of infrastructure
The infrastructure is at good level. The government launched a privatization...
Please join StudyMode to read the full document