Coffee

Beans

GROUP 4
TARGET MARKET: Malaysia
PRODUCT: Robusta & Arabica beans
COMPANY: Tuan Loc Commodities
 01 Tran Ngoc Phuong 05 Ho Anh Quan

02 Vu Ngoc Anh
06 Mai Nhan Anh Quan

03 Nguyen Hoang Anh 07 Nguyen Thi Phuong Tra

04 Le Minh Thao 08 Tran Thi Thuy Linh

MEMBERS
 Economic
01 About Us
04 Analysis

Country Market
02 Overview 05 Potential

Political &
03 Legal Analysis

CONTENT INDEX
 Tuan Loc
ABOUT Commodities
US Tuan Loc Commodities is a Vietnamese
coffee production and distribution
company.

Tuan Loc Commodities - top three groups in Vietnam, focusing on the

coffee business for over 30 years.
. Providing Arabica and Robusta from all over Vietnam
. Owning a few warehouses, farms, and two coffee bean processing plant
. Vietnam's coffee beans are used in the commercial field, and the price
is more advantageous.

* a solid counterparty and a reliable partner for the global coffee

industry. We plan to expand our market to Asia (Malaysia - the coffee
importing country).
 In Malaysia, coffee is a beloved beverage. However, the nation
faces a unique situation: consumption far outstrips production

Malaysia -> boasts fertile land suitable for coffee cultivation, only a small
portion is currently utilized.
=> relies heavily on imports -> This trend is expected to continue,
driven by a population with increasingly refined palates.

we considered several factors:

Trade
Political Economic Government
agreements
status development expenditure
and policies
 PROBLEM:

OUR
Malaysians have a preference for different coffee profiles,
particularly Liberica while Vietnamese coffee is often strong and
bold (due to Robusta dominance)

DECISION => Our main export product are Robusta and Arabica coffee beans.

OPPORTUNITY:
The import of Vietnamese coffee in Malaysia is still not so big.

=> New exporters in the market like us, can benefit from the
foothold-free Vietnam’s biggest coffee exporter in Malaysia and
gain our own reputation in this potential market.

Malaysian is growing interest in Robusta

=>

=> We dicide to export our coffee to Malaysia market

 SECTION 1
COUNTRY OVERVIEW
A. FACTUAL DATA
1. Geographic location
Separated by the East Sea into two land
regions on the Malay Peninsula and the
island of Borneo
Coastline length of about 4,809 kilometers
3. Population
In 2022, the total population of Malaysia is
33,938,221.
0.43% of the world's total population and
1.09% higher than that of 2021
2. Neighboring countries
Malaysia is bordered by:
Land Borders: Thailand, Brunei, Indonesia
Maritime Borders: Singapore, Vietnam,
Philippines
4. Natural resources
Minerals (tin, bauxite (aluminum ore), iron
ore, copper, and gold), fossil fuels, timber,
agriculture resources (rubber, palm oil,
cocoa, and rice).
A. FACTUAL DATA

5. Main industries and locations within country

Electrical and Electronics (E&E):
Location: Penang, Selangor, Johor, and Melaka – all strategically located near ports for
easy export.
Rubber and Palm Oil Processing:
Location: Scattered throughout the country but major regions are Kedah, Perak,
Selangor, and Johor.
Petroleum Production:
Location: in the East Sea and off the coast of Sarawak in East Malaysia.
 B. BACKGROUND
1. Historical Development
Malaysia's story stretches back millennia.
Early civilizations thrived on the peninsula,
while powerful kingdoms like Malacca rose
and fell, controlling trade routes between
East and West.
First the Portuguese, then Dutch and
British, arrived in the 16th century.
In 1957, Malaya gained independence, later
merging with Singapore, Sabah, and
Sarawak in 1963.
2. History of key industries
Pre-colonial times saw a flourishing tin trade
European influence spurred rubber
plantations.
Independence brought on diversifying
beyond raw materials.
In the 1970s, Malaysia shift towards
manufacturing, particularly electronics.
Today, Malaysia is majoring in palm oil and
rubber processing.
 SECTION 2
POLITICAL & LEGAI
ANALYSIS
A. Political ideology
Wide participation
Malaysia establishes universal suffrage (age 21
and over) and regularly holds general elections
at the state and federal levels. Opposition
parties can run in the country’s elections.
Pace of progress
Malaysia experienced a political shift during
the 15th general election in November 2022.
Democracy
Malaysia is a parliamentary democracy with
a constitutional monarchy.
 SECTION 2
POLITICAL ANALYSIS
B. Political risk
Level of Political Risk

October 2022

0 64,8 100

The political rate index of Malaysia is considered moderate among

the world’s nations. Malaysia can be considered a “safe” business
environment to export to regarding its political situation.
 Political crisis Region and race
Malaysia has various
Political instability
ethnicities and religions.
of Malaysia can influence
Vietnam’s coffee bean
Perceived insensitivity or
exports to Malaysia.
disregard for cultural and
Sources of religious practices can
lead to negative reactions
political risk and harm our brand
image.

National country’s security Corruption

Malaysia's potential extremist infiltration and its Malaysia’s Corruption Perceptions Index has dropped.
strategic location, along with political instability, can indicating increased corruption concerns. This can
affect the export quality of coffee beans. negatively impact export operations.
 How to
adapt to the
Adaptation: Incorporate risk into our business strategies
political risk

How to
adapt to the Information gathering: Stay informed and adapt
political risk

How to
adapt to the Influence local politics: Present our firm’s view on political matters
political risk
 SECTION 2
POLITICAL ANALYSIS
C. Legal System
 LEGAL SYSTEM

The legal system of Malaysia is primarily based on the common law legal system, a direct result
of British colonization from the early 19th century to the 1960s. The country practices a
parliamentary democracy and has a constitutional monarchy, similar to the United Kingdom. The
government comprises three arms: the Legislature, the Executive, and the Judiciary.
SIMILARITIES AND DIFFERENCES

SIMILARITIES
Influenced by their historical ties with colonial powers, which have shaped their
current legal frameworks.
Place a high importance on legislation as a source of law, and their courts are
subordinate to their respective legislatures.
VIETNAM MALAYSIA
Based on the civil law system, with Based on the common law legal system, a
modifications from Marxist-Leninist ideology. direct result of British colonization from the
The most important source of law in Vietnam early 19th century to the 1960s.
is legislation, and courts are subordinate to The supreme law of Malaysia is the
the legislature. Constitution of Malaysia, which sets out the
Includes international treaties, which become legal framework and rights of Malaysian
a source of law after being ratified by the citizens.
National Assembly. Practices a parliamentary democracy and has
a constitutional monarchy.
NATIONAL ENFORCEMENT OF PROPERTY RIGHTS
Trademarks:
Trade Marks Act 2019 and the Trademark
Regulations 2019
Providing protection for distinctive signs,
logos, and symbols used to identify goods
and services.
Civil enforcement:
Rights holders can initiate civil lawsuits to
seek remedies such as injunctions, damages,
and the destruction of infringing goods.
Copyrights:
The Copyright Act 1987 safeguards
literary, artistic, and musical works,
ensuring creators’ rights.
Criminal enforcement:
Available for specific IP violations, such
as copyright infringement and trademark
counterfeiting.
Malaysia's robust product safety and liability laws

Consumer Protection Act 1999

LAWS Set high standards for safety and hold manufacturers accountable
for the products they introduce to the market

For our company to export to Malaysia, strict adherence to these

regulations is vital to meet safety standards, gain consumer trust,
and avoid legal issues.
IMPACT
However, the varied legal application may pose challenges in terms
of cost and time for exporting activities.
LEVEL AND FOCUS OF TAXATION

Progressive income Flat corporate tax

tax for individuals 24%
0% to 30% (for resident
companies)

Goods and Services

Digital Service Tax
Tax
6% 6%

Coffee has a 0% import duty, providing a cost advantage for exporting Vietnamese Robusta and
Arabica coffee beans to Malaysia. Understanding and complying with these tax structures are
crucial for our company, ensuring competitiveness in the market and potential profitability,
considering production, transportation, and other associated expenses.
 SECTION 2
POLITICAL ANALYSIS
D. International relations
 GENERAL RELATIONS
WITH OTHER COUNTRIES
Significant trade ties with China and the USA
Its relationship with China is marked by economic partnerships and cultural exchanges, though
concerns persist over territorial disputes and human rights.
The USA is a longstanding "Comprehensive Partner"
Vietnam aligns with Malaysia in the South China Sea disputes, potentially allowing for
increased trade opportunities with Malaysia amid concerns affecting China-Malaysia
relations.
MULTILATERAL AGREEMENTS
WITH OTHER NATIONS
Comprehensive trade framework, boasting seven bilateral FTAs, nine regional FTAs, and
membership in regional blocs like ASEAN, APEC, and TPP.
The longstanding relationship and agreements between Malaysia and Vietnam have
facilitated easier and more cost-effective trading.
=> Malaysia's open market policies and historical ties with Vietnam offer favorable conditions
for our exporting coffee, allowing for reduced trade barriers.
 SECTION 3
ECONOMIC ANALYSIS
A. Economic System
1. MIXED ECONOMIC SYSTEM

Malaysia’s economy
includes elements of both

Mixed capitalism and socialism.

including a variety of private

economic Impact
freedom, combined with
centralized economic
system Building stronger and longer
business relationships
planning and government between companies of the two
regulation. countries.
2. FISCAL POLICIES
Taxes: Malaysia is one of the lowest tax revenue collectors in Southeast Asia
at around 11.8 percent of gross domestic product (GDP)

Government spending:
Fiscal The Malaysian government has proposed a fiscal policy with Budget
policies 2023 having a total allocation of RM373.3bil as compared to RM385.3bil in
2022.
The Government also spends on subsidies and social assistance
programmes to RM485bil from 2000 to 2021.

Pros:
Creating opportunities for our company expanding business
The government allocates a significant portion of its budget to social
welfare programs => increased demand for goods and services
Impact
Cons:
The government provides subsidies => which can create an uneven
playing field for foreign agricultural enterprises => pricing competition
 3. MONETARY POLICIES

Money supply:
The economy of Malaysia recorded an average money supply
growth rate of 5,4% in the decade to 2022. This lower growth rate
compared to other developed countries has led to an increase in the
value of the ringgit compared to other currencies.

Interest rates:
The OPR (Overnight Policy Rate) is Malaysia Central Bank’s policy
interest rate that influences, among others, banks’ lending and
financing rates, as well as deposit rates
The OPR in Malaysia ended 2022 at 2.75%, up in line with the 1.75%
end-2021 value

IMPACT: 1. The higher OPR, the higher exchange rate for businesses
2. Decreased in demand for bank loans
3. Increased costs if Malaysian banks raise lending rates => higher expenses for financing
working capital and trade transactions
 SECTION 3
ECONOMIC ANALYSIS
B. Economic Development
1. GDP & GDP PER CAPITA

World Bank: The Gross Domestic Product (GDP) in The Gross Domestic Product per capita in Malaysia
Malaysia was worth 407.03 billion US dollars in 2022. was last recorded at 28383.62 US dollars in 2022,
when adjusted by purchasing power parity (PPP).

CONCLUSION:
GDP and GDP per capita are on the rising trend, indicating positive economic growth and improved
living standards within Malaysia, so Malaysia has a large need to import food products, such as rice,
coffee, vegetables, tubers, etc => we will have more chances to be successful in this market
2. LEVEL OF BLACK MARKET COMPANY
Malaysia’s shadow economy is estimated to be as large as
30.2 % of the country’s gross domestic product - which is low
compared to the global rate.

Some challenges
Competition from cheaper
smuggled goods: the
smuggling of items that are
70% to 80% is more
affordable than their legally
imported counterparts =>
making it more challenging
to sell them at a profitable
price.
Regulatory challenges: The
Malaysian government has
implemented measures to
counter black market
activities, leading to more
stringent regulations and
enforcement actions.
3. Level of human development

Malaysia’s Life Expectancy ranks 4 out of 11 countries in With GNI per capita PPP at $32,250, Malaysia ranks 60
Southeast Asia and 80 out of 191 countries in the world, out of 191 countries in the world. The Gross National
maintaining at a relatively high level Income Index of Malaysia is also at a very high level,
which is 0,872

CONCLUSION:
The Malaysia Human Development Index (HDI) in 2022 showed that the index score increased by 1.2%
to 0.816 as compared to 0.806 in 2021 => ranks 62/191 countries => Very High Human Development
=>Malaysian has relatively higher purchasing power => more willing to spend and pay more for
premium and specialty coffee products.
4. COUNTRY CLASSIFICATION

World Economic Situation and Prospects (WESP) 2022:

Malaysia is classified as a developing country, based
on its level of economic development and structural
characteristics.
Malaysia is one of the most open economies in the
world, that it has a high degree of trade and
investment with other countries.

=> Exporting coffee beans to Malaysia with fewer trade

barriers and more policies to promote import of goods.
 5. MACROECONOMIC

Inflation rate Unemployment rate

Inflation rate in Malaysia started rising
again in 2020 from -1.14% to 3.38% in 2022
(Macrotrend, Statista).
=> This figure is a little bit higher than the
acceptable rate (1-2%)
In 2022, Malaysia's unemployment rate
averaged 3.73%, signifying a tight labor
market compared to historical trends. There
is a downward trend in the figure compared
to that of 2021 (4.05%)
=> an increase in the total income of the
entire society
 SECTION 3
ECONOMIC ANALYSIS
C. Financial market
EXCHANGE RATE WITH KEY CURRENCY AND RECENT TRENDS

Key currency
Malaysia ringgit (MYR) - formalize in 1974

Exchange rate
1 USD = 4.5075 MYR (US dollar to MYR)
EXCHANGE RATE WITH KEY CURRENCY AND RECENT TRENDS

Current trends
MYR experienced a period of continuous depreciation compared to the USD in 2022
US Federal Reserve increased policy interest rate by 425 point to address inflation
Global trend: Depreciation => not sign any underlying weakness
EXCHANGE RATE WITH KEY CURRENCY AND RECENT TRENDS

Conclusion

POSITIVE NEGATIVE

More attractive price Rising in import cost

Enhancing competitiveness Directly affect consumers
More affordable imported goods Lower purchasing power of the
for Malaysian consumers local market.

=> How to take advatage: Having flexibility to adjust the pricing strategy
PRESENCE OF CURRENCY CONTROLS/RESTRICTIONS

PRIMARY CONTROL ORGANIZATION

The Exchange Control Act established in 1953 governs foreign exchange control in
Malaysia, with the Governor of BNM acting as the controller and regulator

PURPOSE
Enhance the economy's competitiveness by creating a supportive environment for
trade, business, and investment activities

CONCLUSION
POSITIVE NEGATIVE
Exporting easier More competition with other
enterprises in the same industry
 SECTION 3
ECONOMIC ANALYSIS
D. Infrastructure forces
TRANSPORTATION

Characteristic
Well - developed infrastructure
Many types: roads, railways, ports and airports

PORTS
20 major ports: 7 federal ports + 13
state ports.
Most common mode of transportation
for exporting goods from Vietnam to
Malaysia.
Two main ports for shipping from
Vietnam to Malaysia: Ho Chi Minh City
and Hai Phong.
AIRPORTS
40 airports: 5 international airports +
35 domestic airports
Fastest mode of transportation
The main airport in Vietnam for air
freight is Tan Son Nhat International
Airport in Ho Chi Minh City
TRANSPORTATION

Conclusion

POSITIVE NEGATIVE

Reduce the transportation costs and Outdated ship technology

time Limitations in the seaport system
Save money and time Lack of properly trained human
Improve customer satisfaction and resources
build loyalty Risks to goods during transportation
COMMUNICATION

Characteristic
Play crucial role
Second-highest internet penetration rate country in SEA - 88.79%
94 % population connect to the internet (2022)
Estimated 89 % of Malaysians have access to mobile internet through smartphones
Many popular platforms: Facebook, Instagram, Twitter, LinkedIn, and WhatsApp

Conclusion
Reach target audience more effectively
Streamline supply chain management
Enhance marketing efforts
Facilitate real-time communication with local partners
Bolstering market presence and competitiveness
 SECTION 4
MARKET POTENTIAL
A. Identify basic appeal
1. SUITABILITY OF CLIMATE

Malaysia
Tropical climate
Not have altitude high enough
=> NOT ideal for the high-quality robusta and arabica beans

Vietnam
Major producer of both robusta and arabica beans
Tropical climate
Have altitude high enough & suitable humidity
Can providing Malaysia with a wider range and quality of coffee products

Conclusion
This can help our company reach more potential customers in Malaysia.
2. ABSOLUTE PRODUCT BANS

Not have any absolute product bans for coffee.

Malaysia still has some import regulations and requirements that coffee importers need to
comply with such as import permits, import duties and taxes,...

Conclusion
It benefits to our exporting activities
If we comprehend the demands of the Malaysian market, coffee is a secure option for
export.
3. ACCESS TO FINANCING
Various trade financing options:
banker's acceptance and trust receipt
=> Helping importers obtain credit,
reduce risks, and manage cash flow
Tariff incentives from Free Trade
Agreements: EVFTA and CPTPP
The tax on coffee: 0%
=> Making Vietnamese coffee more
competitively priced than before
Initiatives and programs: the Coffee
Industry Development Fund and the
Malaysia Coffee Association
=> Supporting the coffee industry
Well-
developed Conclusion
financing Tuan Loc's Commodities can benefit
from the financial assistance and
incentives available in Malaysia.
 SECTION 4
MARKET POTENTIAL
B. Measure market potential
1. CURRENT LEVEL OF IMPORTS

Making it the 27th largest importer of coffee in the world

$303M
Coffee was the most imported product in Malaysia
162nd in the same year (2022)
The main providers of coffee to Malaysia include: Colombia,
Indonesia, Brazil , Vietnam , and Ethiopia

Conclusion
Vietnamese coffee takes a relatively high stand in the coffee market of Malaysia.
Though the export growth of coffee from Vietnam to Malaysia has dropped slightly in recent two years, the
growth rate of coffee import in Malaysia is still increasing
=> Indicating a potential of promotion in Vietnam export into Malaysia in the future.
2. CURRENT LEVEL OF SALES
The coffee market in Malaysia is growing steadily

Revenue Revenue
projected to grow at a CARG of
US$221.4M 3,9%
(2022) (2022-2028)

The ready-to-drink (RTD) coffee market in Malaysia is also growing rapidly

Revenue Revenue
projected to grow at a CARG of
US$185.9M 12,47%
(2022) (2022-2027)

Conclusion This indicates that there is a high demand for coffee in Malaysia, both
in traditional and newer, more convenient forms.
3. MARKET POTENTIAL
INDICATORS

Market size: Market Growth Rate:

Malaysia’s current population is Total GDP: 407.03 billion USD
33,938,221 GDP growth rate: 8.65%
Evaluation: 3 out of 100 Evaluation: 52 out of 100

Market Intensity: Import of coffee:

Total household consumption: Level of import: reached 77 tons - worth
234.433.403.854 USD $177.59M
Household Consumption Growth Rate: 11.2% Import growth: MYR9.06M (9.04%)
Evaluation: 39 out of 100 Evaluation : 76 out of 100
 3. MARKET POTENTIAL
INDICATORS
GlobalEdge's market potential index: Malaysia scores a 27
=> Moderate potential for businesses.
=> Suggesting a confluence of positive and negative factors influencing market attractiveness.

POSITIVE NEGATIVE
Growing middle class with increasing disposable income Bureaucracy and corruption
=> Making it an attractive consumer base => hindering market entry and expansion
Strategic location in Southeast Asia for some companies
=> Making it a regional trade hub, providing access to a wider market Political stability, though generally
The government's focus on developing infrastructure and attracting good, can be influenced by regional
foreign investment tensions.
=> Creating a business-friendly environment

Conclusion A deeper analysis is necessary to understand industry-specific regulations, identify

potential partners, and navigate cultural nuances.
Despite the moderate overall ranking, Malaysia shows promise in sectors such as e-
commerce, halal products, and tourism.
4. QUALITY OF INFRASTRUCTURE

Malaysia has a well-developed infrastructure

that supports the trade and transport of coffee

Logistics performance index (LPI) score of

3.6 out of 5

Ranking 35th out of 160 countries in 2022

Malaysia also has a digital infrastructure that offers various trade financing options and incentives
for importers:
The Coffee Industry Development Fund
The Coffee Industry Development Plan
The Malaysia Coffee Association.

Conclusion
The coffee import market in Malaysia is supported by strong infrastructure and government initiatives
=> Benefiting the coffee import of our company
C. SELECT THE MARKET OR SITE Conduct a survey of
purchasing trends
and tastes of local
people
Conduct a survey of
commercial
infrastructure
1. Field
Trip Make connections and
build communication
with local businesses
 2.COMPETITOR
ANALYSIS
a. Number of competitors
3 main groups of competitors:

+ Other countries
+ Local coffee roasters
+ Vietnamese coffee bean companies.
 2. COMPETITOR
ANALYSIS
Vietnamese coffee
Other countries Local coffee roasters
beans companies
Boncafe, The Coffee Bean & Tea Leaf,
Colombia, Indonesia, Helena Coffee Vietnam, Trung Nguyen
Nestlé Farms, Sabah Tea Garden, Old
Brazil, Vietnam, and Legend, Intimex Group, Bon Mua
Town Berhad, Chek Hup, OldTown White
Ethiopia Oregon, and Simexco.
Coffee, My Liberica,...

=>> Understand the industry's landscape and build suitable

strategies that allow us to stand out from the crowd.
b. MARKET SHARE OF EACH COMPETITOR

Malaysia imports 36.14 thousand tons of coffee worth 61 million USD from Vietnam in the first 9 months
of 2021. This represents an increase of 8% in volume and 11.7% in value compared to the same period in
2020.

Vietnam's coffee market share in Malaysia's total imports increased from 39.91% in the first 9 months
of 2020 to 46.92% in the first 9 months of 2021.

CONCLUSION: From 2020 to 2021, Vietnam was the largest coffee supplier to Malaysia
b. MARKET SHARE OF EACH COMPETITOR

Local businesses in Malaysia:

Oldtown Berhad is a major player - over 200 outlets
The Coffee Bean & Tea Leaf and Boncafe - around 50 outlets
Sabah Tea Garden is a smaller business - a limited presence in the country.

Vietnam Companies:
In the 2013/14 crop year, Vietnam exported 1.66 million tons of coffee - earning a turnover of 3.4
billion USD - an increase of 17.2% in volume - 12.5% in turnover.

A list of the 100 largest coffee exporters in Vietnam - the leaders being Intimex Group Joint Stock
Company, Tin Nghia Corporation Limited, and Louis Dreyfus Company Limited,…
 C. APPEAL OF COMPETITORS TO SEGMENTS OR MARKET -Other countries

Key
Strengths Weaknesses
Competitors

Infrastructure: well-established Geography: far from

Position: largest coffee producer in the world Malaysia => transportation
Feature of coffee beans: more challenging and
+ Small, oval, dark in color costly.
+ Contain many natural nutrients
+ High-quality Brazilian coffee is actually much more Tension: cultural and
fruity than it used to be. political tensions between
Brazil Brazil and Malaysia
Processing: grown on giant farms, cultivated and => impact trade relations.
harvested using advanced machinery to maximize
production output. Quality: Brazilian coffee's
reputation has been tied
Weather condition: Brazil is located on the coffee to one saying: “Quantity
belt - a land with cool weather all year round, over Quality”
abundant rainfall and not too harsh sunshine
C. APPEAL OF COMPETITORS TO SEGMENTS OR MARKET - Local coffee roasters:

Key
Strengths Weaknesses
Competitors

Types: offers a wide range of coffee bean

types, including single-origin beans and blends.
Limited focus on single-origin
or specialty coffee beans.
Position: a well-established brand in Malaysia
Oldtown and has a strong presence in the local market.
Competition: faces
Berhad competition from both local
Feature of coffee beans:
and international coffee
+ produces high-quality coffee beans
brands.
+ uses a unique blend of Arabica and Robusta
beans to create a rich, full-bodied flavor
C. APPEAL OF COMPETITORS TO SEGMENTS OR MARKET - Vietnam’s coffee beans companies:

Key
Strengths Weaknesses
Competitors

Position: one of Vietnam's leading coffee International partner:

exporters. heavily dependent on a
few markets
Quality:
+ has a strong network of suppliers and buyers
Capacity: limited
+ has a strict quality control process
Intimex
Group Types:
The price of coffee beans
+ offers a wide range of coffee products, including
is highly unpredictable
roasted coffee, instant coffee, and green coffee
beans,... Competition: The coffee
+ owns 11 export coffee processing factories with industry is highly
a total capacity of 570,000 tons/year. competitive
C. APPEAL OF COMPETITORS TO SEGMENTS OR MARKET
Our company: a strong
financial base and an
extensive network of coffee
assets, including upcountry
mills and warehouses near
sea-ports.
We prioritizequality by selecting
firm, shiny coffee beans that
meet high standards before
exporting to foreign countries,
particularly Malaysia.
Conclusion We also have a team of experts with
experience in growing and analyzing
coffee beans, and using analytics and
the latest technologies in our
operations.
d. CUSTOMER LOYAL TO COMPETITORS
Figure 1: Brazil Coffee Exports to Malaysia Figure 2: Colombia Coffee Exports to Malaysia

Figure 3: Indonesia Coffee Exports to Malaysia

d. CUSTOMER LOYAL TO COMPETITORS

Customer loyalty of Malaysians for Colombia’s coffee was the highest

- the number of coffee exported to Malaysia from Colombia tends to increase by a large amount in 10 years

Established brands in Malaysia like Nestlé Farms, Old Town Berhad, and Chek Hup have strong brand
recognition and a positive reputation in Malaysia
=>Customer loyalty can be high due to trust and familiarity with these brands.

Vietnamese coffee bean exporters own their competitive advantage.

+ Trung Nguyen Legend is a well-known brand, and its strong presence might lead to a loyal customer
base
+ Intimex Group has a robust distribution network and established relationships with local businesses.
d. CUSTOMER LOYAL TO COMPETITORS

Emphasize and maintain clearly define and communicate

high-quality standards in the unique selling propositions of
coffee production for Vietnamese coffee with
quality assurance competitive pricing strategies.

Foster a strong Conclusion

relationship with
customers through
effective communication develop marketing campaigns
channels and strengthen that resonate with Malaysian
relationships with local culture and values
distributors, cafes, and
retailers
E. THREAD FROM SUBSTITUTE PRODUCTS

Substitute
products Analysis Comparison

Market Dynamics:
Different Experience:
Rich tea-drinking culture, and
While tea and coffee share
various prevalent local and
similarities in terms of caffeine
international tea brands
content, the flavor profiles and
cultural
Consumer Preferences:
experiences are distinct.
Malaysian consumers often choose
Tea
tea for its diverse flavors, such as Teh
Target Audience:
Tarik and popular imported teas.
Our business can
target consumers looking for a
Cultural Influence:
different taste experience or position
Tea is deeply embedded in
their coffee as a complement to tea
Malaysian culture, and social rituals
in various social settings.
often revolve around tea consumption.
Substitute
products Analysis Comparison

Wellness Trend:
Unique Characteristics:
Consumers opt for herbal infusions
Coffee's distinct taste, aroma,
due to their perceived health
and cultural significance provide a
benefits and natural ingredients.
unique selling proposition.
Herbal
Flavor Varieties:
Premium Positioning:
Infusions Specialty beverages often offer
Our Vietnamese coffee can be
unique flavor profiles and
positioned as a premium, high-
ingredients, appealing to
quality option, emphasizing its
adventurous consumers.
natural attributes and authenticity.
Coffee
Beans

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