Marketing Plan for Remedy Kombucha in Malaysia

This report provides a marketing plan for Remedy Kombucha to explore and flourish the business in Malaysia. It includes market environment summary, competitor analysis, STPD and marketing mix strategies, and modes of entry.

Running head: International marketing
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Executive summary
It is the continuation part of the assignment 1. The primary aim of this task is to provide brief
information about the marketing plan of the company. Kombucha product has been chosen in the
assignment 1. Here is the discussion about the marketing readiness, SWOT analysis and
marketing research. STPD and marketing mix strategies have been explained in the task. Along
with this, the paper also discusses the objectives of the company. A brief information about the
competitors has also been provided in the task. It explains that how the company is overcoming
on the competitors by using unique strategies within the organization.
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Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Marketing objectives...................................................................................................................................4
Market environment summary.....................................................................................................................4
Competitor analysis.....................................................................................................................................5
Marker readiness.........................................................................................................................................6
Modes of entry............................................................................................................................................8
STPD strategy.............................................................................................................................................8
Product strategy.........................................................................................................................................10
Price strategy.............................................................................................................................................11
Promotion strategy....................................................................................................................................12
Distribution strategy..................................................................................................................................13
Conclusion.................................................................................................................................................14
References.................................................................................................................................................15
Appendices................................................................................................................................................18
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Introduction
The main aim of this report is to make a marketing plan for exploring and flourishing the
business in Malaysia. Kombucha product has been taken in the task. Kombucha is a conventional
fermented tea based beverage that provides ample of benefits to the customers. The well known
flavor of Kombucha are herbs, berries, citrus, flowers, apple and others (Malbaša Radomir et al,
2011). The company sells its products in various countries such as North America, Europe,
Africa, Latin America and Asia pacific. Furthermore, the paper also explains the marketing mix
and STPD strategy that are used by the firm while imitating the business in Malaysia. Modes of
entry and environmental analysis have also been discussed in the task. More detail of the task has
been detailed below.
Remedy Kombucha is a traditional health drink products. It has been found that Remedy
Kombucha Company was incorporated in 2012 in Melbourne (Ebersole et al, 2017). Remedy
Kombucha is the global market leader in the Australia. The Kombucha is an organic acid that are
good for the health and wellbeing (S. E. Harris, 2004). The company is produces more than
150,000 bottles a week to sell at around 4,000 sites across Australia.
Marketing objectives
The marketing objectives of the company have been detailed below.
 To develop and increase high market quality by exploring the business in Malaysia.
 To provide high quality of the products to the customers across the world.
 To provide Kombucha at appropriate prices.
 To have a high competency of the products and services to its customers.
 To increase the sales and revenue of the organization by providing unique and good
quality of products and services to the customers in Malaysia. In this way, the company
has been able to beat the competitors in the international market.
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Market environment summary
It has been noted that Malaysia is known for its location at crossroads of trade between the West
and East. The country is one of the significant economies in the world and it became one of the
biggest exporters of electronic parts and other components (Anon, 2017). It is stated that
Malaysia is a multicultural community and the language spoken by the people is Malay that is
language spoken across the country (Businesswest, 2018The country is the second biggest
trading partner in ASEAN. Malaysia is strategically situated in the heart of Southeast Asia and it
offers cost benefits and competitive advantages for the investors (Anon, 2008). High growth
economy can provide long term advantages to the company while implementing the business
activities in Malaysia (Gentempo and Patrick, Jr, 2009). There are various procedures involved
while establishing the new business in the country which should be taken care by the firm. The
market of the country has been a meeting place for a diverse range of religions and external
cultures. The market of the country is generally open to explore and flourish in new business. All
the entry modes are permitted to enter in the country. The market of the country is the best to
know and analyze the key players of the market.. Marketing research and survey is essential to
explore the business activities in Malaysia. It will help to reduce the key challenges and risks of
the market. Furthermore, it also helps in gaining competitive benefits in such country(Czinkota
and Ronkainen, 2013). The pestle analysis for Remedy Kombucha has been detailed below.
Political factor: UMNO is the most political party in the country therefore it can affect the
growth of the Remedy kombucha company in Malaysia. The other part is Pakatan. Along with
this, various rules, regulations and norms could also have direct impact on the performance and
productivity of the firm. The political condition of the country is unique and stable that can help
the company to increase the sale and revenue of the product in such country (Tietenberg and
Lewis, 2016).
Economic factor: It has been found that Malaysia is a third richest country in its region. The
GDP per person is approx $11000 in the year 2014. The economic factors such as employment
rate, interest rate, and exchange rate could also affect the sustainability of the firm in the
Malaysia. It is analyzed that labor force is very expensive in the country as compared to other
countries. Thus, the labor force can affect the profitability of Remedy Kombucha company in
such country (Anon, 2011).
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Social factor: The social issues such as unemployment, poverty, exploitation of the employees
do not exist in the country. There is no discrimination among the people in the Malaysia. The
other social factors include culture, values, beliefs and age of the people. All people are
considered equal in the country hence there is no partiality in the country on the basis of
religious and sex. These factors can help the company to grow its business in Malaysian country.
Technological factors: It has been found that advanced technology and resources are available
in the country. The people of the country are well skilled and intelligent therefore, the company
can gain ample of advantages while implementing the business functions in such country.
Environmental factor: The environment of Malaysia is highly impacted by the pollution and
deforestation. The country has been blessed by diverse range of fauna and flora. The pollution
and deforestation could have many adverse effects on the environment therefore it can also affect
the sustainability of Remedy Kombucha (Naidu et al., 2018).
Legal factor: It analyzed that Malaysian law and rules have been affected by the Great Britain.
The Malaysian rules, legislations and law are based on the Indian and Australian law. All these
factors could also impact on the outcomes of the firm (Zawawi & Abdul Ghani Azmi, 2014).
Competitor analysis
There are ample of competitors that affect the success and progress of the firm. The main
competitors include GT’s Kombucha, Bucha, Healthy crush, Kevita, PepSico, and honest. These
competitors may influence revenue and profitability of the company in the Malaysia. It is has
been noted that Kombucha market is the growing and leading market in the functional beverage
category (Fleisher and Bensoussan, 2015). That is why the firm needs to analyze and identify the
needs, demands and requirements of the customers in the international market. Various analysis
is done by the company to analyze the position and products of the competitors in the global
market (Fleisher and Bensoussan, 2015). One of the significant analysis that done by the
company is porter five forces analysis. The porter five forces analysis for Remedy Kombucha
have been detailed below (Winston et al, 2013). Remedy Kombucha has a revenue of $1million
and 87 employees. Along with this, the company has received a total of $2million in funding.
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Name of the companies Market share
Bucha 22% (122 million)
Healthy crush 28% (738 million)
Kevita 6% ($24 million)
PepSico 22% (AUD $ 432.44 Million)
Bargaining power of suppliers: It is one of the significant and effective forces that have direct
impact on the sustainability and outcomes of the company in Malaysia. It has been stated that
suppliers play a less role in the marketplace because the organization direct sell the products to
the customers in the country (E. Dobbs, 2014). It is stated that bargaining power in the hands of
the customers is low in Malaysia market. Along with this, the company uses ample of channels
to distribute the products in such market (Grant, 2016).
Bargaining power of suppliers: It is noted that bargaining power in the hands of the buyer is
high that is because the consumers demands high Kombucha products in Malaysia. This product
is important for all the customers in the marketplace (Narayanan & Fahey, 2005). Rising health
issues, and changing lifestyle are some of the components driving the market for Kombucha
products. It is analyzed that Kombucha product is important for all the customers (Wong, Soh
and Le Chong, 2016).
Intensity of existing rivalry: After the various research, it has been studied that existing
rivalries in the same industry could also affect the productivity of the firm (Porter, 2008).
Furthermore, it is revealed that existing rivalries are low in such market because customers are
having fewer demands for this product in the Malaysia. There are few competitors existed in the
international market (Rothaermel, 2015).
Threats of substitutes: It is analyzed that threats of substitutes are lesser due to few competitors
available in the marketplace. Due to lower competitors, the firm has been able to differentiate its
products from the rivalries. It also helps the company to beat the competitors in such market
(Anon, 2012).
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Threats of new competitors: It is stated that customers are loyal to the existing brands
therefore, competition do not affect the choices and tastes of the consumers. Along with this,
strong and unique distribution network is required to gain the long term rivalries benefits
(Dobbs, 2012).
Marker readiness
Marker readiness research may be defined as a process by which a company or firm ensures that
their product is ready to be introduced in the global market (Der Wiel et al, 2014). It helps to
increase and boost the productivity and efficiency of the company and employees as well (Salleh
and Emelifeonwu, 2017). If the Remedy Kombucha decides in marketing internationally then
market survey and research is done by the company. Marker readiness helps the firm to analyze
and identify the key challenges and obstacles of the organization. This is why the firm has been
able to meet its long term expectations and targets. By using market readiness, the organization
can identify the opportunities and threats of the market and it also helps in identifying the
changing trends of the market (Abolfazli et al, 2015). It is stated that market readiness process
involves interviewing potential users to see if the product and service solves a specific user
needs, wants or whether the product will help users become more effective and unique at the task
(olbina, 2015). This process will also help Remedy Kombucha to avoid and eliminate the risk
and hurdles in the Malaysia (Ingaldi Manuela & Škůrková Katarína Lestyánszka, 2014). Timely
and systematic preparation is done by the firm for an initial public offering in the success of the
transaction that means that the company is offering the products at reasonable prices (Non,
2015). No company can implement its business activities in foreign market without using market
readiness (Reio Jr and Whitehead, 2014). The company conducts SWOT analysis to analyze the
strengths and weaknesses of the firm that has been detailed below.
Strengths Weaknesses
 The company maintains strong
management and uses unique strategies.
 Cost advantages and economies of
scale.
 Innovative culture and offers unique
 Weak supply chain and lack of scale.
 Intense competition in beverage
industry.
 Weak and poor brand.
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products.
Opportunities Threats
 Fragmented market
 The company can offers new products
to the customers.
 Emerging markets.
 High and immense competition is one
of the biggest threats for the firm.
 Changes in tastes and preferences also
affect the success of the firm.
Modes of entry
There are plenty of modes that can be used by the company to implement the market in
Malaysia. The modes of entry include exporting, joint venture, outsourcing, franchising, foreign
direct investment, licensing, strategic alliance and merger and acquisition (Veronica Baena,
2012). The entry modes helps Kombucha company to eliminate the threats of the market.
Furthermore, the firm can use advanced and unique technology with the help of entry modes
(Guyet al, 2012). Along with this, it helps in providing skilled and experienced employees and
further entry modes also provide support to reduce the cost of the company. One of the
significant entry modes that used by the company is strategic alliance. It is a voluntary agreement
between two organizations to use their resources to attain the common desired goals and
objectives while remaining independent entities. It is mostly used by Remedy Kombucha to
explore the production capacity and maximize the market share for a product (Usuf Zekiri,
2016). Alliances help in developing and improving the innovative technologies and utilizing
brand image and market knowledge of both the companies. The company can also use this entry
mode because it reduces the cost of the company and further, it maximizes the outcomes in the
international market (Baena, 2013).
STPD strategy
The STPD strategy is initiated by the company to stand out against the competitors. The STPD
strategy of Remedy Kombucha has been detailed below.
Segmentation: It is the process of dividing the market into different group of people in the
marketplace. It is done to increase and enhance the sale of Kombucha in the Malaysia. The
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market is classified by the firm on the basis of demographic, geographic, behavioral and
psychographic areas. In demographic area, the company focuses on the age, income level, and
gender and education level of the people. In geographic area, the firm identifies the weather,
climate and pollution of the country that can help to implement the business activities in the
Malaysia. In psychographic area, the company examines and analyzes the luxury oriented
customers and social disclosures of the people to ear maximum outputs in such country. It has
been noted that Remedy Kombucha also focuses on the behavioral factors such as awareness,
attributes and values of the people (Anon, 2017). It also helps in evaluating the purchasing power
of the consumers in the competitive market. It has been revealed that if the Remedy Kombucha
wants to enhance and boost the sale and profitability then market segmentation is done by the
firm Ho (Kim, Jae Ko and Min Park, 2013).
Targeting: The main target market of the Remedy Kampuchea is the middle class and upper
class that accounts for nearly between 250-300 million. The company also is targeting the youth
promoting them to embrace social message and positioning itself as a social awakener brand.
The firm is also targeting women who mainly like Kombucha products and maintain high
income level in the Malaysia (West, Ford and Ibrahim, 2015). Along with this, the firm also
examines the tastes and preferences of the consumers in the new market to strive with
competitors. The company can augment their profits and revenue without analyzing the effective
and unique target audience. The target audience also helps the company to maintain a strong and
unique image in the minds of the customers in Malaysia. It has been noted that market research is
conducted by Remedy Kombucha to analyze the purchasing power of the consumers in such
market. The company uses porter five forces analysis to determine the long term attractiveness of
the market or market segment of the company in Malaysia (Armstrong et al, 2015).
Positioning: This strategy refers to an overall strategy that aims to make a brand occupy a
distinct position relative to the competing brands in the minds of the consumers. After the
various studies, it has been noted that positioning is good for the Kombucha products. It is one of
most important strategies that used by Remedy Kombucha while implementing the business
actions in Malaysia (Tanner and Raymond, 2015). By using positioning strategy, the company
has been able to make a dynamic and significant financial position in the eyes of the consumers.
The positioning strategy may influence the consumer perception in terms of a brand or product
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relative to the rivalries. The main purpose of the positioning strategy is to set an effective image
or identify of a brand in the global market (Mellentin, 2016). This strategy also helps in
identifying and measuring the appropriate niche market for a product, service and brand image.
Positioning is a heart of any marketing strategy therefore, it also provides ample of benefits to
Kombucha. Positioning strategy also helps to gain new consumers and succeed in securing the
more customers than competing products (Roberts, 2012). By using this strategy, the
organization can capture the entire market. Besides this, it also helps in attracting the different
types of consumers in the Malaysia. Moreover, the organization can communicate and
collaborate with consumers effectively and successfully with the help of positioning strategy
(Solomon et al, 2014).
Differentiation: It is noted that there are various international and domestic companies
manufacturing Kombucha products. Apart from this, various beverage brands are trying to enter
into this market (Cottrell, 2017). Due to its health benefits, government in various nations are
taking initiatives for manufacturing, regulating and marketing the production and consumption of
Kombucha. Differentiation is one of the unique strategies that can be adopted by any firm
(Gibbons & Rinker, 2015). Various campaigns and programs are conducted by the company to
differentiate its products from the competitors (Brenes, Montoya and Ciravegna, 2014). The firm
uses this strategy to set the appropriate prices of the product. This strategy is used by the firm to
create a good value in the marketplace. Apart from this, differentiation strategy creates brand
loyalty among the customers in Malaysia. This strategy encourages people for buying the
products of Remedy Kombucha (Aschali, 2017). In addition, it eliminates the extra cost of the
firm and furthermore, it provides various growth opportunities to the clients in the Malaysia
(Huo et al, 2014). By using differentiation strategy, the firm has been able to know and analyze
the plans, strategies and policies of the competitors. In this way, the firm can explore its brand
image in the competitive market (Baschali, 2017).
Product strategy
Product strategy can be initiated by the company to gain rivalries advantages in the global
market. A product strategy is the foundation of a product life cycle and the execution plan for the
further development. This strategy helps the firm to increase and enhance of the demand of the
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Kombucha products (Anon, 2018). It is the process of bringing a new innovation to consumers
from the concept to testing the products through distribution. It also improves quality of existing
products to stay in the Malaysian market. The company uses this strategy to analyze and
evaluates the size, features and quality of the competitor’s products. It will help the firm to tap
the entire market of the Malaysia. This strategy helps the company to achieve business goals and
objectives such as entering new market, selling more products to the customers and wining
business from competitors.
An effective and unique product development strategy can also maximize the revenue and
outputs but careful planning s required to reduce the risk of costly mistakes. This strategy helps
the company to improve and enhance the quality of the products in the Malaysian market. Along
with this, it averts the cost of Kombucha products to improve and boost the competitiveness
(Anon, 2018). In this way, the company should use effective and unique product strategy to sell
the Kombucha products in the international market. It has been stated that the firm should also
focus on the product development strategy to create new products in the Malaysian market. New
revenue can be used to promote new products. By continuous striving to resolve new problems
and issues that consumers face, Kombucha is constantly creating the chance to generate
maximum revenue. It has been stated that the firm should focus on the development and
expansion of the new products to meet the needs and requirements of the customers. It also helps
in creating a higher value proposition for the core demographics of a business and brand. Higher
value proposition creates more repeat customers that can lead to higher revenue and outcomes.
Innovative product strategy will attract maximum number of people in the Malaysia. Hence,
Remedy Kombucha must focus on the product strategy to hit the rivalries and to earn maximum
outcomes in the foreign market. The product overview of the product has been detailed below.
Price strategy
The pricing strategy is a process of finding rivalries of a product and service. This strategy is
combined with the other marketing pricing strategies to retain the existing customers in the
international market. A survey and research is done by the company to identify and analyze the
prices of the competitors in Malaysian market. The company cannot attain growth in such market
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without analyzing the prices of the existing competitors. In this way, the organization can
overcome the competitors in Malaysian market. The pricing strategy let the business to control
and manage the competition by reducing and eliminating the losing market share and consumers
to the competitors. By using pricing strategy, the firm can respond every move of the rivalries.
As a result, the organization has been able to get better position in the market towards the various
strategic decisions of competitors (Acosta, 2016).
If the organization is using pricing strategy then it will also help in online shopping. By using
pricing strategy, the firm can also attract the online retailers in the foreign market. The pricing
strategy provides ample of benefits to the customers after monitoring the prices of the
competitors. This strategy maintains a balance between supply and demand of the products.
Under this strategy, Remedy Kombucha should set the suitable prices of the products to enhance
and promote the sale of Kombucha in Malaysian market. If the company set the suitable prices
then it can also attract the lower class people in the competitive market. The firm needs to focus
on the expectations and interest of the consumers to set the appropriate prices of the products. It
will encourage more and more consumers in the Malaysia (Guisado-González, Ferro-Soto &
Guisado-Tato, 2016). It has been found that unique and effective marketing research shall be done
by the company to analyze the prices of the competitors. Apart from this, enormous campaigns
and programs must also be help by the firm in the Malaysia to evaluate and identify the product
cost of the competitors. By initiating this strategy, Kombucha Company can take various
competitive benefits in the foreign market. Price is one of the significant elements of the
marketing mix that helps to destroy the competitors in the new market. By using this strategy, the
organization can become a one of leading companies in the Malaysian market (Acosta, 2016).
Promotion strategy
It is stated that promotional mix strategy can consist of various things that affects the growth of
the firm. Promotional strategy helps the company to encourage the Kombucha products.
Research is don e that details market research, budget and segmentation (Fuhrman, 2010). The
company chooses promotional strategy to create wide range of customers in Malaysia (Anon,
2002). Apart from this, the organization conducts various campaigns, and programs to identify
the right and potential consumers in the global market (Arris et al., 2016). Under promotional
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strategy, sale promotion can be done by the firm to maximize the sale and outcomes of the firm.
The firm also maintains strong and unique relationship with customers to maximize the buyers
for the product. Direct marketing is other option to promote the product of the firm. In addition,
Remedy Kombucha can use digital marketing for enhancing the selling and revenue. There is
high and immense competition exist in the Malaysian market therefore it is vital the marketer to
choose their promotional avenue carefully and effectively. In today’s era, Remedy Kombucha
needs to find right and appropriate way to promote their businesses and to compete with the
competitors (Sun & Pan, 2011).
Online promotions can be used by the firm to beat and hit the rivalries in the global market.
Besides this, the organization can use advertisement strategy to keep an eye on the choices and
needs of the customers. In this way, the Kombucha can retain the target audience in the
competitive market. Promotional and advertising strategy plays an empirical role to tap the entire
market of Malaysia. It is an effective and unique strategy that helps the firm to implement the
business actions and activities in the Malaysian market. If Kombucha uses attractive promotional
methods then it can help the firm to grow and enhance the market share (Anonymous, 2010).
Apart from this, promotional and advertising build and develop company’s reputation and image
among the consumers (Cernivec and Stephanie, 2013). Remedy Kombucha should try to increase
and enhance the promotions and advertising to inspire the large number of consumers (Anon,
2006). The sale and direct promotion can help the firm provide information to potential and
effective customers that aids them in making unique and effective decisions. This can be
beneficial for the new and innovative Kombucha products that are complicated to consumers. By
using this strategy, the organization can build a good brand image in the international market.
Furthermore, it a fundamental tool to motivate the customers for buying the Kombucha products.
Distribution strategy
It is a fundamental strategy that can be implemented by Kombucha Company to distribute the
products in the Malaysian market. Distribution strategy is a strategy or plan to make a product or
service available to the target customers through its supply chain (Anon, 2017). A plan and
strategy is created by the firm that specifies how the company intends to transfer its products to
retailers, intermediaries and end consumers (Chidi and George, 2013). The firm can use various
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types of distribution strategies to distribute the products across the world. The company cannot
distribute the products in Malaysian market without using various distribution channels and
strategies (Lobo & Shenoy, 2015). The ample of distribution strategies include intensive
distribution, exclusive distribution, selective distribution and different distribution strategy
(Anon, 2011). Along with this, distribution channels include wholesalers, retailers and
distributors. It has been analyzed that Remedy Kombucha should use distribution strategy to
fulfill the needs and expectations of the consumers (Blut, Teller & Floh, 2018).
Conclusion
From the above mentioned analysis, it has been concluded that Remedy Kombucha can easily
expand and explore the business in Malaysia by making effective and unique marketing plan. To
expand and explore the business, marketing research and survey is done by the company in the
Malaysia. Furthermore, the firm selects unique entry modes to initiate the business in Malaysian
market. The above analysis shows that Remedy Kombucha uses effective STPD strategy and
marketing mix. It has been found that it is the continuation part of the assignment 1 which
explains the marketing plan for Remedy Kombucha Company. It is stated that the firm can
overcome on the rivalries after analyzing the marketing conditions of the Malaysia. Now it is
recommended that the organization should focus on the business level strategies to stay in the
competitive market.
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Appendices
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Business facts
Facts Notes
Founded in 2012, Melbourne
Kombucha fermented products are sold by the
company
The Kombucha products in various flavors are
sold by the company in all over the world.
Focus on the target market of Malaysia It can be seen in STPD and pestle analysis
Segmentation
Demographic segmentation Mostly young and older customers buy
Kombucha products.
Geographic segmentation The company divides its market on the basis of
weather, and climate of the country.
Psychographic Segmentation The prices range is reasonable in the Malaysian
market.
Behavioral segmentation The company focuses on the nature and
responses of the customers.
Product
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Product range or
group
Product Characteristic or
flavor or
features
Size or volume or
weight
Price (AUD)
Range 1
name
Green tea
Kombucha
Prevent variety
of disease
1 Cup( 20 gram) 2
Pronatura
Kombucha
Support a
healthy gut
2 Cup (40 gram) 2.5
Range 2
name
Yogi tea Prevent heal
stomach ulcers
1cup(30gram) 1.5
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