The Survival of Non Alcoholic Beverages in Malaysia

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Evaluate what are the factors that can contribute towards the success of the non alcoholic beverages


The largest consumer markets in the world today are the Muslims. Whereby, Muslims count for an estimate of 1.6 billion of the world population (Central Intelligence Agency, 2008 as cited in Zakaria and Abdul-Talib, 2010) which gives rise to the market for Halal goods and services. Today the Halal goods and services exported globally is worth US$2.1 trillion (Central Intelligence Agency, 2008 as cited in Zakaria and Abdul-Talib, 2010). Furthermore, the increase in the population of Asia Pacific region (APAC), tend to give rise to 700 million new consumers by 2020 (Accenture, 2008) which also will give rise to the demand for food and beverages. In which it was estimated that food and nonalcoholic beverages would be a $us781 billion market in APAC by 2010 (Accenture, 2008). Thus, the market for non-alcoholic beverages has given rise in the past few years. Whereby, it is expected that it will expand at a moderate rate of 3.8 percent in APAC. Malaysia has been of no exception as a market for nonalcoholic beverages, in which they already have in their market a number of non- alcoholic brands (made fruit contents and malts) namely: 1- ISTAK from Arpanoosh Industrial Co

2- MALTA from Guinness Anchor Berhad

3- NUTRIMALT from Carlsberg Malaysia

4- BARBICAN from Aujan Industries.

Target Market for Non-Alcoholic Beverages

Figure 1: Target Market for Non-Alcoholic Beverages
Figure 1 shows the target market for nonalcoholic product based on the compiled facts of the contents in the existing brands in the Malaysian market (Refer to Appendix One). The product is basically portrayed as Halal whereby, it specifies the alcoholic level in the drink. It is also marketed as a healthy fruit and malt based product designed for the healthy lifestyle groups, youth, as well as women who are pregnant and who are breast feeding.

Marketing Strategies and Tactic
Malaysia is a multiracial, multi religious and multicultural society. However, the dominant ethnic group is Muslim Malays (Cyril De Run et al., 2010). As businesses which provide nonalcoholic beverages in Malaysia, they need to ensure that they target the right customer’s segmentations and use the right marketing strategies.

In avoiding using the term Halal, and labeling of the product as nonalcoholic demonstrates an understanding of the Muslim psyche (Wilson and Liu, 2010) which is a successful marketing tactic used by the producers to gain the trust of the Muslim society. As, it can be deemed by Muslims that the drink to be Halal and circumvent the potential for greater consumer scrutiny (Wilson and Liu, 2010) this may have contributed to the success of the product till today.

In this day where competition is high the product should create a buzz in order to be known to the market. One strategy used recently in Malaysia was entering into the market through exhibition. As such, ISTAK brand was introduced in the Mihas Exhibition held in 2009 for nonalcoholic beverage. Whereby, it created awareness among the consumers on the availability of nonalcoholic beverages.

Factors that can contribute towards the success and failure of the product.

Rising middle class and urbanization has influenced the consumer preferences. Whereby, they look for convenience, healthy choices and new taste options (Accenture, 2008) As such localization of the products is a must for the survival of the product in the foreign market. Nonalcoholic drinks cater to this market by way of offering different flavored drinks to its consumers based on the local taste buds. Malaysia is an emerging country with lower market competitiveness. And there is room for business to grow especially in food and nonalcoholic beverage industry (Accenture, 2008). There is also a shift in non-carbonated alternatives to nonalcoholic beverages in the Asia Pacific Region (Accenture,...
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