Malaysian Market

Topics: Carbonated water, Coca-Cola, Soft drink Pages: 12 (3827 words) Published: June 11, 2013
Market analysis and market segmentation4
Product Positioning4
Market Entry Strategy5
Competitors in Industry5
Five force analysis7
SWOT analysis9
Marketing Strategy Mix11
Product Life Cycle11

The inception of the soft drink was in 1830’s. Due to the technological advances in production and higher product availability, the consumption has increased steadily. It is also becoming difficult to ignore the existence of soft drink in today’s market. The soft drink products have been overtaking the hot drink or water gradually and becoming as the biggest beverage sector in the world. This situation also applicable in Malaysia, it was reported that the number of people consumers soft drink is very high and up to 1000 cans per minutes. In the midst of the rapidly growing soft drink demand, it seems like the soft drink industry leads to generate greater influence for the food and beverage market in Malaysia.

However, there was a study conducted in Malaysia, The National Health Morbidity Survey data revealed that in adults, 20.7% were overweight and 5.8% obese; the prevalence of obesity was clearly greater in women than in men. In women, obesity rates were higher in Indian and Malay women than in Chinese women, while in men the Chinese recorded the highest obesity prevalence followed by the Malay and Indians. Hence, current nutrition and health surveys reveal that Malaysians are already affected by western health problems, such as consumption of soft drink. The escalation of obesity, once thought to be an urban phenomenon, has now spread to the rural population at an alarming rate. As Malaysia proceeds rapidly towards a developed economy status, the health of its population will probably continue to deteriorate. Therefore, a national strategy needs to be developed to tackle both dietary and activity contributors to the excess weight gain of the Malaysian population. Moreover, the issue of obese children also is another severe problem of the national health concern. The parents in Malaysia are concern about the changing to some healthy drink instead of soft drink, in order to prevent their children fall into the categories of the young obesity.

Therefore, our team will introduce a smart way to enjoy soda with healthy concern to the food and beverage market in Malaysia. Sodastream is an appliance that makes the water and juices into great-tasting, fizzy beverages. The products that we going to introduce is fashionable, fun, sleek, and easy to be use. Besides, the Sodastream also provided a better quality of drink produce and also it is healthier than the soft drink in the market.

Market analysis and market segmentation
Malaysia is regarded as an upper middle income group country. Gross Domestic Product (GDP) growth is forecast a 4 percent for 2012, with this expected to expand to 5.6 percent in 2013-2016. Furthermore, Sales within the Malaysian food and beverage retail industry were forecast to reach of US$15.69 billion in 2011 and are predicted to grow to US$21.17bn by 2015. There are a lot of opportunities for the Malaysian food and beverage retail market. It is expected to grow by estimate 10 percent annually. This is a vast global market opportunities, where the carbonated beverages costs $264 billion, which are the carbonated soft drinks costs $225 billion and sparkling water for another $39 billion in the markets. Basically, Malaysian household spend around 24 percent of household income on the purchase of food and beverage average. Thus, this is a very good opportunities for the appliance that we going to introduce. The Malaysian market is relatively competitive and price sensitive. However, Malaysia aims to be the market leader and the main halal hub for the world and its halal certification requirements are likely to become more stringent over time. For us, we going to penetrate the market...

References: 1. Abdullah, L. Asngari, H. (2001). Factor Analysis Evidence in Describing Consumer Preferences for a soft drink Product in Malaysia. Journal of Applied Science, vol. 11(1). pg 139-144.
2. New Zealand Trade & Enterprise. (2012). Exporter Guide – Food and beverage in Malaysia. Market profile, January 2012.
3. SodaStream Cooperation Presentation, March 2012.
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