BOH Plantation Sdn Bhd

Name of the lecturer: Dr. Noor Hazarina Hashim

SHAF 3103 Tourism Marketing
Section 1

NO GROUP MEMBER MATRIC NUMBER

1. NUR EDRINNA BINTI AHMAD HASHIM A17HA0159

2. SHARIFAH HAREEZAN BATELLER BINTI SYED A17HA0233

CHARLES

3. MARIELA EVGENIEVA KOLEVA  X19BS3013

4. ILI AYUNI BINTI SAHBUDIN@SAHABUDIN A17HA0055

5. AINA AYUNIE BINTI MOHAMAD A17HA0004

6. FOUZIEAH BINTI AZMI A17HA0048

Inhalt
1.0 REVIEW – by Mariela Evgenieva Koleva (X19BS3013)................................................3
1.1 More about the company and its mission..................................................................3
1.2 BOH PRODUCT........................................................................................................4
1.3 Strategy, Strengths & Weaknesses...........................................................................4
2.0 MARKET ANALYSIS – by Sharifah Hareezan Bataller Binti Syed Charles
(A17HA0233)...................................................................................................................... 7
2.1 Environmental Audit..................................................................................................7
2.2 Product Life Cycle...................................................................................................10
2.3 PESTEL Analysis of BOH Tea Company................................................................10
3.0 COMPETITIVE ANALYSIS - NUR EDRINNA BINTI AHMAD HASHIM (A17HA0159) 12
3.1 Competitor indirect and direct..................................................................................12
3.2 Market share breakdown.............................................................................................13
3.3 Competitive advantage............................................................................................13
3.4 PRODUCT POSITIONING.....................................................................................14
4.0 CONSUMER ANALYSIS/PROFILE - ILI AYUNI BINTI SAHBUDIN@SAHABUDIN
(A17HA0055).................................................................................................................... 16
4.1 Market segmentation..........................................................................................16
4.2 Consumer demographics................................................................................17
4.3 Target audiences............................................................................................17
4.4 Market research..............................................................................................18
5. STRATEGY ANSOFF MATRIX – by Sharifah Hareezan Bataller Binti Syed Charles
(A17HA0233).................................................................................................................... 19
5.1 Penetration Strategies.............................................................................................19
5.2 Product development..............................................................................................20
5.3 Market development................................................................................................20
6. MARKET MIX ANALYSIS - FOUZIEAH BINTI AZMI (A17HA0048)..............................20
6.1 Product....................................................................................................................20
6.2 Place....................................................................................................................... 20
6.3 Price........................................................................................................................ 21
6.4 Promotion................................................................................................................ 21
6.5 People..................................................................................................................... 21
7.0 RECOMMENDATION & CONCLUSION - FOUZIEAH BINTI AZMI (A17HA0048)......22
REFERENCES.................................................................................................................23
1.0 REVIEW – by Mariela Evgenieva Koleva (X19BS3013)

1.1 More about the company and its mission

BOH Plantation Sdn Bhd, known as BOH, is the largest
black tea manufacturer in Malaysia, but also the largest
tea plantation in the country. BOH was founded 1929
during the British colonial era in Malaysia by J. A. Russel.
The founder is a British-born and British-educated
businessman. The Company is located at Cameron Highlands, Pahang, Malaysia.
The name BOH was derived from “Bohea” – the hills in Fujian Province, where tea
was originally thought to have been discovered. Also, Bohea was the name of a
premium tea grade in the early China tea trade. The meaning of the word “boh”
translated from mandarin is “happiness”. (website of BOH; about us; the BOH
legacy)

At the time this manufactory was founded it was the worldwide Great Depression,
but Russel (the founder) managed to make the first BOH tea garden in Habu, also
the first tea garden in the Cameron Highlands at all. Now (information by 2016) BOH
Plantation owns four tea gardens. These plantations total about 1200 hectares of
land and can produce around 4 million kilograms tea per year, which is about 5.5
million cups of tea per day. This accounting for about 70 % of the Malaysian tea
production. While maintaining its market position locally, BOH is also expanding into
foreign niche markets. Today this company exports its brand of prime grade teas to
various countries including the USA, United Arab Emirates, Japan, Singapore, and
Brunei. (website of BOH; about us; home of boh)

Besides, the BOH rea estate is not just important for the output of Malaysia, this
is also a major tourist attraction in the country, especially in Cameron Highlands.
Because of its expansive green tea fields and the fact that it is the largest
manufacturer this bring a large number of visitors and foreign tourists. That makes
the manufacturer very important for the tourism industry. Extremely in hard times
as now – the pandemic situation (COVID 19) ruined the industry worldwide, one of
the most suffer industry is the Tourism one. The countries would need support from
domestic and international visitors to start fixing the situation.

BOH is one of the few fully integrated tea companies in the world - from the
cultivation and the processing to the packaging and marketing of its wide range of
locally grown robust black teas. The consumption of BOH teas is ingrained in
community life, the mission of the company is to not stop maintain the position of
the company at the top by staying abreast of evolving consumers’ aspirations,
lifestyles at least but not last - their needs. Moreover, BOH team is trying to adapt its
collections to suit requirements.
1.2 BOH PRODUCT

BOH Plantations Sdn Bhd is mostly concentrated on producing premium black tea
from the tea plant known as Camellia Sinensis. BOH Plantation targets the general
market for groups of people from a variety of ages which are generally concerned
with beverages. On the picture is to see the most classical BOH tea. (I have also
bought to myself this one when I was in Malaysia. This was offered to me as a
typical and loved Malay Tea, so I had to tried it. In my opinion the quality was very
high, the tea taste very strong and has a good scent, moreover the packing was
fancy but traditional in the same time. I will buy again if I find it in Europe or come
back to “truly Asia”: Mariela)

1.3 Strategy, Strengths & Weaknesses

Through its websites BOH extent the reach in delivering distinctive teas to both
domestic and international. Since BOH is exporting its premium teas over the sea,
in different regions, became a new era for the company. Some of the markets with
which BOH cooperate are Germany, Denmark, Taiwan, South Korea, and Japan,
Brunei, Singapore, USA, as I have already mentioned.
Locations is one of the very important factors for the future success. It is important to
get a right place to run the operations, because these are long term decisions and
companies should take all relevant factors that might be influenced by the location.
Normally, the companies look for environmental factors, for example economy and
political environment or technological and socio-cultural factors. In this situation any
key variables are labour productivity, accessibility to natural resources, etc. Also, the
business can be based on “location and innovation” or “location and cost”. The
company with “location and cost” focus is trying to minimize the cost and to
maximize the profit. By innovation focused company the cost is not the rolling
principal. BOH Plantation Sdn Bhd has the focus on the costs. This is making an
effort to produce great products with high quality with lowest budget (lowest cost).
Therefore, the new director of the company (Tristan) wants to improve yield and
quality, whilst constantly discovering new modern streams of innovation, therefore it
invests in research and development of the harvesting process. He says “…where
once 27 people were needed for the rolling room, today only one minds the
machines”. Probably this is one of the reasons how BOH become one of the best
tea brands in Malaysia. (website of BOH; about us)

For location base BOH chose Malaysia because Malaysia can offer stable and
healthy political environment. Moreover, the hard working and wages are affordable
and low-cost in comparison to those developed countries such as Japan, Sought
Korea and more. Thus, Cameron Highland became BOH’s factory location. But also,
this location is near the main raw materials – the tea plantations. Besides, the
company can save from transportation if the faculty and the plantations are at the
same place, so the tea leaves can go direct into production after plucking it from the
trees and produces high quality tea.

BOH is recognised as a company with high standards in product quality, esteemed

brand identity and community initiatives. Some others of its strengths are the many
years of experience-over 90 years of existence; also the brand is connected with the
nation’s history and culture diversity; nurtured by generations of tea experts and
devoted to producing teas of exceptional quality, character, aroma, and freshness.
(website of BOH; about us) As very important USP for this brand is this hight
standards of food safety and quality, therefore BOH has been awarded many
accolades and certification that approve that. These helps the brand to be a trusted
consumer brand in Malaysia. (website of BOH; the boh legacy)

Malaysia is one of the vibrant parts of S. E. Asia. It is known with its lush landscapes
Cameron Highlands the home from BOH. Cameron Highlands is one of the
Malaysian’s most fertile agricultural spots, possessing all the right attributes for
growing outstanding tea, and is situated over 5 000 feet above sea level on the main
mountain range of Malaysia. The character of the BOH tea is influenced by the
conditions at the tea estates. The landscapes and stunning panoramic views with
plantations are delightful and quaint. One of the BOH’s tea gardens – Sungei Palas
Tea Garden greets visitors with a panoramic sight of undulating tea fields. There is a
café that offers unforgettable viewpoints for visitors plus a taste of BOH tea. In
addition to the tea experience the visitor can see how BOH crafts the teas and at the
and to take with themselves part from the BOH Brand from the Tea shop. That helps
the customers to make real experiences with the brand and to remember BOH and
Malaysia with positive memories. This could change the customers’ attitude to the
brand and make its image stronger. (website of BOH; about us; home of boh)

As a part of the nowadays strategy is also the unveiling new tea sorts making the
assortment bigger. The BOH Tea company can generate more and more new taste
of the tea leaf. To make for everyone something BOH adopt the use of stevia leaf
extract to some of its products. This is the branch approach to deliver healthier
beverage options for the customers that are adopted for adults and for children. That
make the target group even bigger.

After a research about the strength and weaknesses I found something about their
production process. BOH factory does not allow the tea leaves to wither by
themselves, BOH uses an exhaust fan to pump heated air throughout the
department. This used process can wither tea leaves faster than leaving them doing
that by themselves on racks, but the weakness this faculty’s choice is this creation
could cost more – for electricity, but also if the fan breaks down. That could stop the
production process.

As I said BOH made the location decision choosing a place which is near to their raw
materials. There are many strengths and weaknesses for this decision. Again, the
transportation cost is very low. With this choice the company can reduce inbound
transportation cost, which is a huge benefit to the company, sometimes the
transportation cost is the main cost and can affect to the total win.

On the other hand, to find workers in place like Cameron Highland could be very
difficult. Mostly, young people prefer to move to the big city to work. Therefore, to
make the jobs offers more attractive BOH have to pay more salary or to give very
good benefits to the employee and this make extra costs to the company and it may
have an effect of the profit.

Furthermore, the location has a very big weakness. Unfortunately, in Cameron

Highland, BOH is not the only tea manufacturer. Comeron Vallez Tea is one of the
BOH’s rivals.

Normally, tea products have a relatively slow product life cycle (PLC). This is very
good for the brand, that means its product should not be replaced too quickly. It is
not a trend that has to be “up-to-time” always. This is a classic product liked and
drank many years backward.
2.0 MARKET ANALYSIS – by Sharifah Hareezan Bataller Binti
Syed Charles (A17HA0233)

2.1 Environmental Audit

2.1.1 Production Process

The BOH’s tea factory production process is categorized in five main processes
which are withering, rolling, fermenting, drying and sorting. This discussion will focus
on the process used to produce black tea from the tea plant. The first process is
withering. All raw green tea leaves, which are collected from tea plantations, will be
delivered to the withering. In this process, all the excess water is removed from the
leaves. As stated by Holy Trading Mountain Company (2011) “The leaves are thinly
spread to wither either naturally (where the climate is suitable) or by means of
heated air forced over the withering racks. The object is to evaporate as much of the
tea leaf’s water content so that the leaf becomes pliable like soft leather gloves.”

Once the withering process is done, the tea leaves will be sent automatically to the
ground floor which is the rolling department where the tea leaves are crushed into
smaller pieces that soon will release the juice from the tea and become the flavour.
The development of the essential oil begins when the juices which remain on the leaf
are exposed to the air. The third process of making tea is fermentation in the
fermentation department. This will finalize the type of tea produced. Based on Ten
Ren Tea, n.d., one method of classifying teas is based on the degree of fermentation
like non-fermented and very light fermentation, semi-fermented, lastly fully
fermented. For the non-fermented category, green tea will fall in this category as the
taste of tea will be lesser than the original taste. Meanwhile, for semi fermented, it
represents slight yellow and hue that also possess a subtle fragrant aroma and lastly
for fully fermented, the tea will be produced in black teas where it brings a dark red
hue and malt sugar aroma will come out. The key step for the tea manufacturing
process is finding the real type of the tea which can only be found in the accurate
fermentation process that allows the undergo enzymatic oxidation by allowing the
freshly picked tea leaves to dry.

Then moving on to the drying department, where it is basically useful to stop the
fermentation process as well as to moisture the leaf. The main function for this
process is to stop the oxidation in the process by frying the leaf consistently without
scorching (Holy Mountain Trading Company (2011). They also added the tea driers
automatically by a large iron box that has tea leaves in it, trays spread, a top to
bottom movement that the force to the box resulted from continuous blast of hot dry
air. A successful firing is perfectly done if the careful regulations of the temperature
and the speed of the movement of the trays. Lastly, the last process is not one but
sorting departments. The sorting is based on the leaf size and the level of the leaf.
This is a packing process that took place that soon was placed in the store.

2.1.2 Facility layout

The objective for the layout design is to develop a cost effective layout that meet a
company’s competitive requirement. A facility's physical layout will determine the
successfulness of the firm operations otherwise it will only affect the work flow of the
production as well as its productivity and utilization of equipment with space. This
can be done if the machinery carefully arranged. Bot to forget the expenses to
implementing the type of layout for the machines as the main objective is to meet the
company competitive requirement that is by developing a cost-effective layout
design.

In contrast, since BOH Plantations Sdn Bhd uses a product-oriented layout which is
more familiar, a flow shop layout can be used as another alternative layout. This
type is primarily used to produce large volumes of single or family products. The
progressive steps are also applied in this firm for their machines and work in
process.

2.1.3 Location Strategy

As it is vital to have a strategic location to run the productions. Since location

strategy falls into a long-term decision, the firm is infrequent to make location
decisions. With this decision, some other accounts such as all the resources and its
cost are unchangeable. Hence, in order to find the most suitable location, the firm
can benefit from a relevant factor that can be influenced by the location into the
account. Companies look out for environmental factors such as the economy and
political environment with other important variables as a first strategy. Those
variables are labor productivity, accessibility to natural resources and also wages.
The business often decides the location direction such as “location and cost” or
“location and innovation” If the firm wants to minimize the cost and maximize the
profit, they will apply location and cost direction. Otherwise, they can choose location
and innovation if the firm's main concern is not cost. BOH organization is mainly
focused on the cost focused company. This is because the firm will want to produce
great quality products which also produce from the lowest cost possible. This is the
reason why the firm are able to sustain in a competitive industry and become one of
the best tea brands in Malaysia

Malaysia becomes BOH’s main base as it has a stability and healthy political
environment that will secure the position of the company. With a hard working labor
in Malaysia, not to forget the lower wages as compared to those developed
countries. For factory location, BOH has chosen to operate in Cameron Highland
that is located in Fairlie and Sungei Palas. This is because the main raw materials
with it plantation is closer to their factory. Cameron is the place that is strategic
because of its environmental condition as wine is more likely like wine where it
depends on the great environment condition to produce so that the final character
grows with good impact. Also, the reason why BOH chose Fairlie and Sungei Palas
is because they believe they can get a lower inbound transportation cost where the
tea can be directly go to the productions after freshly plucked from its trees. Hence it
will help to ensure the tea-leaves are fresh and in highly quality condition.

2.1.4 Design of goods and services strategy

The objective of designing the goods and its service strategy can enable a new
product to design, develop and to market. The demand on the market place can be
obtained mainly in development and implementation. The tea product produced
gives a unique tea sensation service toward their customer when they visit the
factory In Cameron Highlands. The person who is in charge of the design of goods
and services is the product design management. The objective of BOH Tea
Company is to establish new designs and packages of BOH premium black tea.
They are hoping to influence their customers’ mind with such a good image. In terms
of product strategy, the variable of differentiation, low cost, and rapid response
provides competitive advantages. BOH Tea Company is mainly on their core product
such as their brand, design, packages, and others. They also consider the fact of
how to satisfy their customers through their product.

Next, a competitive edge can be created as the result of effective design meaning a
great design can influence the competitive to become more interesting. As it will
affect the goods and service quality, cost and customer satisfaction. BOH Tea
Company needs to design their product that matches the requirements from their
customer satisfaction. It needed to design new packages in the short run. They can
design the goods and services depending on the customer satisfaction, which
packages are preferred by the customer.

2.2 Product Life Cycle

BOH Tea company is now in the maturity stage. In this stage, the product has
reached the peak in other words, the product has achieved considerable advantage
over their competitors. The thing is when a firm falls in at this stage, it will be the
longest phase for the product. The BOH Tea company achieve mature stage when
the customers are satisfied with their products which means that the firm has already
reached the considerable advantage. BOH Tea company can stay in this stage by
attracting a loyal customer. The Company is advised to make a retention to their
product-line by looking into the account of other competitors. In the product family,
there are many tastes of tea leaf such as blackcurrant, green tea, and others. BOH
Tea Company can generate more distinctive taste in product family and factory is
improving by use the modern machines to make more tea leaf

2.3 PESTEL Analysis of BOH Tea Company

2.3.1 Political

Political balance is very important for the organization as can effects the stability of
the company immediately or indirectly. For instance, like the taxes charge by the
government will definitely impact the business term for their earnings. Malaysia can
be considered as a country with steady politic, therefore it can help BOH to avoid
any legal issues. It can also help BOH's management team to plan their future
strategy smoothly. Hence, the political stability is a vital factor that effect company
the location decision to choose Malaysia as their basic phase to run their company.

2.3.2 Economical

The Malaysia economic stability helps BOH Tea company maintain their businesses
without suffering from unexpected fluctuations in situations like scarcity of workers or
lack of product or restrictions triggered by economic balance. Since Malaysia is such
a peaceful country and free from war, BOH Tea company is prevented from being
subjected to any manufacturing plant pillages or hostile takeovers by the federal
government.

2.3.3 Social

With a stable society, it helps the BOH Tea company utilize their production in a
normal efficiency. There is no need for shocking ramp up productions or suffering
from lay off workers resulting in fluctuations in social stability. The tea requirements
will also be unchangeable as tea is categorized as food or beverage and the
absorption of the tea products will be relatively steady. Based on cultural health of
the workforce employed, from good stability of social aspect, the personnel are less
unwilling to be on strike.

2.3.4 Technological

The impact of global technological factors won’t give much impact for BOH since the
technology of producing tea products is not really necessary. The equipment is not
required to be constantly replaced to keep up with changing scientific events and
structures. BOH remains with the individual worker as to pick tea leaves as naturally
the ground of tea is planted on the hillsides and there is still no affordable technology
that is available to replace workers to scale the mountain of tea plantation in a short
period. The technology might be accessible but it may not be beneficial to the cost
set up and use a new technology to assist in tea harvesting anytime soon.
2.3.5 Environmental

The global environmental factors should not cause a significant danger to the BOH
Plantation operations. As the tea products are still controllable and will not bring
endanger the environment. A heavy fertilization in the plantation as well as utilization
of pesticides might cause some damage to the environment but in overall, the
development process will not lead much in harm to the environment. BOH
Plantations should not be distressed by environmental factors anytime soon as there
are no increase in environmental restrictions and new laws or regulations
considering in pesticides control. However, BOH tea might need to find new ways of
refining tea plantations, maybe determining the use for garden greenhouse or glass
homes so that the tea crops are located inside, away from pests to reduce the use of
pest control products if there is a new law being created.

2.3.6 Legal

The legal factor does not risk BOH plantation much as there are only few rules
governing the development of tea products. However, BOH may still need to follow
some guidelines such as nutritional health of these products by making sure that
there is no poisonous chemical in the product that soon are harmful for the end user.
and BOH would not be too intensely damaged by these factors as these rules aren't
difficult to obey.

3.0 COMPETITIVE ANALYSIS - NUR EDRINNA BINTI AHMAD

HASHIM (A17HA0159)

3.1 Competitor indirect and direct

3.1.1 Direct competition

Direct competition is a situation in which two or more businesses offer products or
services that are essentially the same as such the businesses are competing for the
same potential market. Direct competitors of BOH Tea are Lipton Tea, Nestle Tea
and Sabah Tea. Lipton Tea is a brand of tea belonging to Unilever. Lipton is
available in over 110 countries, and it is particularly well known in Europe, North
America and Middle East, parts of Asia, Australia and New Zealand. Nestle Tea is a
brand of iced tea manufactured by Nestle and distributed by Nestle company’s
beverage department in the US. It provides a selection of tea products in regular and
diet forms, including liquid and powdered tea concentrates, refrigeratable teas, and
ready-to-drink bottles dispensed by vendors or vending machines. Sabah Tea is
originally owned by Sabah Tea Sdn Bhd and Desa Tea Sdn Bhd, it is the largest tea
producer in Borneo, with both domestic and international distribution especially after
became part of the Yee Lee Corporation Bhd who increase the export both in locals
and internationally.

3.1.2 Indirect competition

Indirect competition is the conflict between vendors whose products or services are
not the same but that could satisfy the same consumer need. In addition, it refers to
a business whose products or services are different from yours but potentially could
satisfy the same need and reach the same goal. Indirect competitors are all kinds of
beverage companies which are Nescafe, Milo, Horlicks and others. Nescafe is a
brand of coffee that is made by Nestle. Nescafe is the world’s most trusted and
enjoyed coffee and it is one of the world’s most well-known brands, which is rich in
natural goodness, flavours and convenient. Besides, Milo is the world’s prominent
chocolate malt beverages that can be prepared with hot or cold milk or water.
Horlicks is the name of a company, this company offers malted milk powder that you
can mix with warm milk to make a drink. It is wheatier, and less malty-tasting.

3.2 Market share breakdown

BOH Tea have 36% of market share while Lipton Tea have 22%. Nestea (from
Nestle) has 14%, while Sabah Tea has 10% of the market share.
3.3 Competitive advantage
Competitor is the leverage a business has over its competitors. This can be gained
by offering clients better and greater value. It also contributes to higher prices, more
customers, and brand loyalty. For Boh Tea, their competitive advantage includes
this:

3.3.1 Differentiation

Boh Tea concentrated on producing high grade black tea from the tea plant known
as Camellia Sinensis. Black tea is normally stronger in flavor and possesses more
caffeine than the less oxidized teas. BOH Plantation focuses on the general market
for communities of people from a variety of ages which can be concerned with drinks
and this what makes them outstanding.

Besides that, the effective design also provides a competitive edge. For Boh Tea,
they imply good design for their packaging for example relying upon the clients'
satisfaction. They also match the merchandise or service characteristics with
customer requirements The goods look that they imply and might typically impact
goods and services quality, goods and services cost and customer satisfaction.
3.3.2 Low cost

Even with so many decisions have been made, a lot of things such as resources and
ingredients upgrading, their costs still remain unchangeable. This happen when Boh
Tea manages and cope with technological change. It can bring cost efficiency, which
has well planned operations and less worker needed. It helps to save the labor cost,
save time to produce and increase the production of tea leaf. Modern machines will
still maintain the quality of the tea.

3.4 PRODUCT POSITIONING

BOH tea has been positioned in the Malaysian market as the largest producer of
premium black teas and the country’s number one preferred brand. To maintain and
grow the positioning of BOH all over the world, BOH is constantly adding and
developing new flavour and products to meet the diverse taste of the consumer.

3.4.1 CREATING UNIQUE, CONSISTENT, AND RECOGNIZED PERCEPTION

ABOUT BOH IMAGE IN THE EYES OF THE CUSTOMER TO DISTINCT US FROM
THE COMPETITORS.
BOH Tea is the largest tea producer in Malaysia, established in 1929. BOH Tea is
passionate in creating unique and distinctive tea that brings together people from all
walks of life for meaningful conversations. They recently started exporting tea
throughout the Asia Pacific region and are now having to compete with the world’s
global tea players. Sage 300 has provided them with automated tax compliance and
a customized dashboard that enables them to monitor the health of their business in
real time. This means they can spend more time on the things that matter the most
to them in creating great tasting, distinctive tea for generations to come.

3.4.2 WE POSITION BOH PRODUCT AS COMPETITIVE LOWER PRICE WITH

HIGH QUALITY TEA THAT COMES WITH GOOD AROMA AND TASTE.
Costs focus companies basically would like to minimize the cost and maximize the
profit. On the other hand, costs are not the main factor that concerns the innovation
focus companies. BOH can be considered as a cost focus company. It is because
BOH is a manufacturing company which seeks for lowest cost but produces great
quality of the products. It is the reason BOH can sustain in such a competitive
industry and become one of the best tea brands in Malaysia.

3.4.3 OUR SECOND POSITIONING IS FOR HEALTH-CONSCIOUS PEOPLE IN

LARGE NUMBERS. “A QUALITY BRAND FOR EVERYONE WISHING FOR A
HEALTHY AND ACTIVE LIFESTYLE”.
For the past decade, health benefits have caught the attention of the wide coverage
of the media. Numerous studies have shown that the antioxidant polyphenols of tea
have the anti-cancer properties and are able to reduce the risk of gastric, and skin
cancer. These health benefits have increased the demand of tea in the market.
Prevention is better than cure; this statement has driven consumers to seek a
solution in reducing the chance of getting sick and that is mainly the problem faced
by consumers. This is where tea becomes the problem solver. This is where BOH
tea as Malaysian leading brand provides high quality tea that satisfies and produces
a healthier lifestyle for the consumer in Malaysia.

4.0 CONSUMER ANALYSIS/PROFILE - ILI AYUNI BINTI

SAHBUDIN@SAHABUDIN (A17HA0055)

4.1 Market segmentation

4.1.1 Geographic segment

BOH controls the domestic retails market. To retain the market position locally, BOH
Tea Company also has been enlarging the business into foreign niche markets.
Today BOH exports its brand of prime grade teas to different countries which are in
urban areas with high population concentration like Madrid and Barcelona and
including Singapore, Brunei, USA, Japan, and others.

4.1.2 Demographic segment

As tea is also one of the benefits for health focus, hence in the demographic target,
BOH tea is targeting for all ages, race, and gender. Besides that, selling at a
reasonable price is another demographic target as it is affordable for any income
group especially for working adults with stable income.
4.1.3 Psychographic segment
Psychologic divides market segments based on interest, attitudes, values, lifestyle of
consumers and personality traits. BOH is offering many types of products such as
Green Tea Latte, which is keeping the trend with consumer’s preference for healthier
beverages. While for the product, Jumbo Tea Pot bag, it is aimed to target
consumers who like to enjoy strong tea among family and friends.

4.1.4 Socio economic segment

It is the division of the market according to a mixture of occupation, status of life and
income. Each socio-economic group has broadly similar characteristics, which infer
taste, lifestyle, and level of disposable income. BOH tea is targeting the middle- and
higher-income earner, which most of them can afford to buy BOH tea. It also targets
a single or married group, housewives and the group with skilled and educated
people.

4.2 Consumer demographics

Demographic variables such as income, gender, education, ethnicity, and family size
are basically tied to subculture and segmentation. As tea is beneficial for health,
hence in the demographic target, BOH tea is targeting people from all race, gender
and age’s groups except children because there is no harm drinking tea but provides
health benefits so it is highly recommended by every age group. Besides that, selling
at the reasonable price is another demographic target as it is affordable for any
income group.

Age : 12 – 65 years old

Gender : Both male and female

Education : Professionals, graduates, students

Occupation : Manager, officers (working adults with stable income)

Income (monthly) : RM 100 - RM 1000 (Any income group)

Race & Ethnicity : All races

4.3 Target audiences

BOH Tea targets the groups of people with a variety of ages which are generally
concerned with beverages. They target audiences into two sets, one who are the
consumers on the go which are students, professionals or whoever lead a busy life.
Two, who are more health conscious.

4.3.1 Coffee drinker (Health conscious)

Target this user to prefer Tea. Country that consumes the most coffee is Finland with
12 kg per one person per year. A report from Nordic Coffee Culture found that 6% of
Finnish women and 14% of Finnish men drink more than ten cups of coffee per day.
It would be a major market to convert this consumer to tea consuming by use or
marketing tactics and demonstrating the harmful effects of too much coffee
consumption and benefits of Tea.

4.3.2 Whoever have a busy life (students, professionals, lecturer)

Target this user to grab the fast drink but with the health conscious. According to
Khademalhossini, Ahmad & Khademalhosseini (2016) the most general population in
Iran thinks that tea is good for relaxation and rest. Besides, we will feel
uncomfortable if we consume coffee after a busy day because it will boost energy
and sometimes people cannot sleep because of coffee whereas we want to get a
sleep or rest after the busy day.

4.4 Market research

In the case of BOH tea, since it is the leading tea brand in Malaysia it is important to
strengthen the brands leadership by creating awareness for their product through
sales promotion and advertising. BOH tea has to provide extensive information about
their quality and innovative tea products, in order for consumer to obtain knowledge
of their tea easily

4.4.1 Internal Research

Internal research is an attempt to search for information in the form of pre-existing

knowledge, such as attitudes and problem beliefs. However, if the problem is new to
the customer, then decision taking is insufficient, and external analysis is a
requirement. This research is not entirely resourceful because during the
consumption process , consumers may not be able to recall the reason for buying
the product or the opinion they made.

To leave a good impression on BOH tea, their catchy phrase "ada Ummph," which
basically means "more than words can describe" kind of feeling shows the great
quality of tea that BOH tea produces. This sentence will strongly record the brand
name in the consumer's mind, so that the next time they want to buy tea, BOH tea
will be their first choice as the phrase "ada Ummph" shows that consumers will never
regret consuming their tea.

Above is the example of the catchy phrase placed on the BOH tea product which
always reminds people to enjoy the goodness of tea while enjoying a relaxing time, it
has specialized BOH tea from different tea brands such as Nestea, Sabahtea and
Lipton.

4.4.2 External Research

External research provides more resourceful organizational information, friends,

families, society, and much more. Consumers are willing to access secondary
information from online resources, advertisements, brochures and much more to
give them the excess knowledge to purchase their choice of computer.

Tea drinkers in Malaysia will not escape BOH tea's attention, as most retail outlets
will purchase their drug. BOH tea has also marketed their tea through newspaper
ads, television advertisements, and promotions as well. BOH tea promotes their tea
by bonding with lovers by creating moments of fellowship with loved ones. This is to
demonstrate that a cup of tea can unite everybody without any restrictions. One way
to inform consumers about BOH tea is by giving away free samplings and
conducting customer contests.

This is why high buying participation needs comprehensive knowledge research to

reduce anxiety and increase the level of trust when buying the product they want.
Consumers will remain loyal to BOH tea, as the company is constantly conducting
research to meet future consumer needs.
5. STRATEGY ANSOFF MATRIX – by Sharifah Hareezan
Bataller Binti Syed Charles (A17HA0233)

5.1 Penetration Strategies

BOH Tea company is recommended by selling the tea in kind of drinking cans or
bottles. Therefore, the business can apply market penetration as it has the existing
product with existing market but with a new image and packaging for their product.
For example, like other competitors like Lipton, they use the drinking cans or bottles
for their packaging. The consumers are able to instantly drink their tea and can get it
easily in any store in Malaysia. Furthermore, BOH Tea company can also improve
their commercial strategy using penetration strategies to develop more appealing
commercials to promote their product. This is because to gain more customers and
to create a unique value so that it can attract more consumers also to retain loyalty.
From advertising, it can help the company to change the new perspective of
consumers towards their products.

5.2 Product development

BOH Tea company can invest more in R&D to introduce a new “special tea”. The
main reason is because not everyone is able to be served with tea specially for the
person who suffered from acid reflux. This will avoid the person to prevent
themselves from consuming any type of tea as the tea brings not only an acid con
flux, but also has caffeine which will also bring another problem such as insomnia
because of the caffeine content will affect the ability for the person who consumes
the caffeine. However, with this problem, COPIKO, a coffee brand has introduced a
new kind of coffee with low-acid for those who suffer from acid reflux. BOH tea can
apply the same thing to their products. This will also help in capturing this type of
target market.

5.3 Market development

BOH tea can expand their business and capture a broader target market. Compare
to other competitors like Lipton, BOH’s targeted countries are not that many. Lipton
has managed to export their product nearly to 110 countries which are 22 times
more than the country that BOH is targeting. Therefore, BOH tea needs to expand
their target market to be able to compete with other competitors and to gain
competitive advantage.
6. MARKET MIX ANALYSIS - FOUZIEAH BINTI AZMI
(A17HA0048)

6.1 Product
BOH Tea is Malaysia’s most popular brand. Grown in the cool climates of Cameron
Highlands, this broken orange pekoe is flavoury and robust with a distinctive, unique
character. BOH continues to produce a variety of new teas to cater to the increasing
demand for variety by tea drinkers. For example, The Teh Tarik Kurang Manis,
Sencha Green Tea and Green Tea Latte were introduced. BOH strive to serve better
and produce more great products in future to make sure they keep to be the best tea
brand in Malaysia.

6.2 Place
Cameron Highlands has attracted visitors to its cool jungles, quaint Tudor-style
houses, fresh vegetables and fragrant teas. Cameron Highlands is one of the
country’s most fertile agricultural spots, possessing all the right attributes for growing
outstanding tea, and is situated over 5,000 feet above sea level on the main
mountain range of Malaysia is the most suitable place to grow tea.. The true
character of BOH tea is greatly influenced by the conditions at the tea estates;
namely high altitude, low temperatures, abundant rainfall and acidic soil. With
amazing landscapes and stunning panoramic views, the plantations are truly
picturesque. The Sungei Palas Tea Garden greets visitors with a panoramic sights of
undulating tea fields that stretch out for acres. The cafe, which is comprised of J.A.’s
Balcony and Tristan’s Terrace, offers spectacular viewpoints for visitors to indulge in
while sipping on a cup of tea. In fact, the iconic 20-foot overarching balcony facing
the backdrop of the tea garden, is a must-see view for traveller to Cameron
Highlands.
Adding to the holistic tea experience is the tea factory tour that showcases how BOH
crafts their finest teas. Visitors can also explore the exhibition area which showcases
BOH’s history as well as the art of perfecting tea. Visitors can also drop by the tea
shop to take back BOH’s teas that are made for tea lovers to enjoy, wherever they
are.

6.3 Price
BOH can sustain in such a competitive industry and become one of the best tea
brands in Malaysia because their tea price is reasonable and affordable for
household in Malaysia. Though they produce good quality of tea, the price of the tea
remain cheap compare to others brand. The price is different for different product
categories. Everyone can afford a best quality of tea and be happy.
6.4 Promotion
BOH Tea have a website and everything is included there such as their product and
behind the story of BOH. Since they already in maturity stage of product life cycle,
BOH tea remains strong in the market because they have a brand awareness and
has many loyal customers.
BOH Tea has been in the industry since 1929 and already exporting their market to
various countries including the USA, Denmark, Germany, South Korea,Taiwan,
Japan, Singapore and Brunei so that their consumers overseas get the opportunity
to revel in a truly Malaysian tea experience. This is a great promotion of Malaysia to
the worldwide.

6.5 People
BOH has been at the heart of communities in Malaysia for decades. As they strive to
satisfy the palates of the customers with their beloved teas, it is this satisfaction,
along with that of their employees that drives they forward. BOH community actively
invest in programs and initiatives, with both their public and private partners, to
collaborate on specific issues supporting communities in which they serve. BOH
support employees through a range of incentive and reward schemes, and
endeavour to make BOH a wonderful and safe place to work.

7.0 RECOMMENDATION & CONCLUSION - FOUZIEAH BINTI

AZMI (A17HA0048)

BOH has been a leading tea producer in Malaysia since 1929 and has became one
of the few fully-integrated tea companies in the world, BOH grows, processes, packs
and markets its own brand of authentic, home-grown, Malaysian teas.
As a longstanding market leader in the region, consumption of BOH teas is ingrained
in community life. BOH need to continue to maintain their position at the top by
staying abreast of evolving consumer needs, aspirations, lifestyles and adapting their
collections to suit. It’s a new era for BOH as they extend their reach in delivering
distinctive teas to both domestic and international tea lovers through their website.
All in all, BOH tea has shown us and to the world that a company can grow stronger
with a dedication to do so. Today, BOH is proud to be amongst some of the finest
tea specialists in the world, mastering the art of tea, from tea bush to teacup. BOH
tea are constantly committed to producing distinctive teas that are flavourful and
brisk, with lots of colour and body as testament to the great legacy left by the
pioneering founder, J.A. Russell, for generations to come.
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