Product-Malaysia Updated 28JUL11

8/6/2019 Product-Malaysia Updated 28JUL11

1/16

Marketing Jute Made Products inMalaysia

International marketing


2/16

Country Selection- ASEAN Member countries: Malaysia, Idonesia, Combodia, Myanmar, Brunei, Laos

,Phillipines, Singapore, Thailand, Vietnam

Parameters Malaysia Myanmar Thailand

Per Capita Income 7000$ 600$ 4716$

Political Env. StableMilitary

Regime Unstable

Religion Muslim Non-MuslimNon-

Muslim

Culture Similar Not SimilarNot

Similar

Historical Relationship Excellent Limited Good

GDP per capita 15300$ 1200$ 8500$Population 28.5Mn 45Mn 62M

Malaysia Seems a clear Choice for Our Product


3/16

Economic Overview-Malaysia:

Geographical Area: 329 Sqkm

Population: 28.6 M Unemployment: 3.2%

Per Capita Income: 7000 USD

0.3

4.25.2

7.1

5.25.9 6.3

4.6

-1.7

7.2

GDP

2002 2011

GDP Growth:


4/16

Export & Import:

Electronics

Fossil Fuel

Wood Products

Palm Oil

Rubber

Textile

Chemicals

Electronics

Machinery

Petroleum Products

Plastics

Vehicles

Iron & Steel Products

Chemicals

Export Commodities Import Commodities


5/16

SWOT Analysis:

STRENGTH Privileged facing of local products Emerging retail players

Further consolidation in the retail sector

Domestic and tourism growth to lift retail sector

Continued dominance of multinational operators

WEAKNESS The culture is more over derived from china.

Instability in buying pattern

OPPORTUNITY Fast growing industries, tourism etc.

THREAT

Intense competition


6/16


7/16

Micro-environment: Malaysia has a growing and vibrant consumer market of well over

20,000,000, distinguished by a multi cultural mix of Malay, Chinese,

Indian and many other smaller populations of Western and Japaneseexpatriates

Market segmentation according to ethnicity and language is common,as this can have a significant effect on consumer behavior.

English is spoken widely, in Malaysia, though Bahasa Melayu, Chinesedialects and Tamil are the mother tongue of many. Bahasa Melayu isthe national language, which all Malaysians are expected to master.Depending on the project, translation is often required.

Malaysia has relatively little poverty, and as a whole, those living incities are highly brand conscious, with a curious love of overseasbrands. The middle class have a large degree of discretionary income

There are strict laws relating to the advertising code, competition,quality standards and ethnic and religious discrimination which needto be taken into account in market and consumer researchundertakings in Malaysia


8/16

Income and Buying Power

Malaysia is classified as an upper-middle income country, andconsidered as one of the most developed of the developing countries.

The proportion of middle income households, defined as thoseearning between MYR1,200 and MYR3,499 per month, has increasedfrom 47.7% in 1999 to 47.9% in 2002. Mean monthly gross income perhousehold increased from MYR2,472 in 1999 to MYR3,011 in 2002,denoting average growth of 6.8% per annum.

On average, households living in urban areas spent 1.5 times morethan households living in rural areas. Average consumer spendingstands at MYR1,943 per month in the urban areas and MYR1,270 permonth in the rural areas.


9/16

Consumer Behavior

Average household spending patterns::

Malaysians spend a high percentage of their household income onfood, groceries and personal care items, ranking third out of the tenmajor economies in the Asia-Pacific region (excl. Japan).

According to ACNielsen, Malaysians on average spent MYR505 permonth on food and groceries, with just under half of that on fresh foodlike meat, fruits and vegetables.


10/16

Consumer Behavior-Cont..

Lifestyles / Shopping habits::

Malaysias consumer lifestyle has been evolving and changing due in part torising affluence and education levels.

High profile international retailers and the global mass media have also playeda hand in shaping consumer-buying behavior.

Malaysians are becoming more westernized, sophisticated and cosmopolitan.

Since the emergence of the foreign-owned hypermarkets, Malaysians who livein urban areas have become accustomed to shopping for groceries athypermarkets and supermarkets.

Meanwhile rural people continue to purchase from traditional grocers,convenience stores and mini-marts


11/16

Regulatory Environment:

Following liberalization measures has been taken :

Abolishing restrictions on domestic borrowing by non resident

controlled companies

Allowing non residents to hedge committed inflows or outflows of fund

Further liberalization on maintenance of foreign currency accounts by

residents

Greater flexibility in allowing residents to borrow in foreign currency

Allowing residents to hedge committed and anticipatory inflows or

outflows of funds

Increasing the threshold for investment abroad by Malaysian residents

and companies


12/16


13/16

Jute Made Products:


14/16

Market Channels:

Provision stores Convenience stores

Drugstores

Supermarkets

Hypermarkets

Resorts, Hotels

Industries (sack, pulp, absorbent etc)

Challenges:

Competition

Tariff Barrier

Bargaining Power of Buyers


15/16

QA???


16/16

Thank You

Documents

Product-Malaysia Updated 28JUL11