COMPANY PROFILE

BOH Tea is under BOH Plantation Sdn. Bhd and it is one of the largest tea-growing companies in
Malaysia with 1200 hectares of tea gardens. BOH is also the nation’s leading brand of black tea,
consistently offering exceptional quality and exquisite flavours. J.A. Russell founded BOH Plantations
in 1929. He was optimistic of the tea plantation business due to huge strains despite of the
worldwide great depression. BOH is a brand that reaches out and gets together Malaysians from all
walks of life. The quintessential slogan of BOH Tea products is “BOH ada Ummph!” Today BOH has
the biggest combined acreage of tea gardens and remains committed to produce great-tasting
distinctive teas for generations to come.

TARGET MARKETS AND POSITIONING STRATEGY

GEOGRAPHIC TARGET

BOH controls the domestic retails market. To retaining the market position locally, BOH Tea
Company also enlarging into foreign niche market. Today BOH exports its brand of prime grade teas
to different countries including Singapore, Brunei, USA, Japan and others.

DEMOGRAPHIC TARGET

As tea is benefit for health, hence in demographic target, BOH tea is targeting for all ages, race, and
gender. Besides that, selling at the reasonable price is another demographic target as it is affordable
for any income group.

PSYCHOGRAPHIC TARGET

Psychologic divides market segment based on interest, attitudes, values, lifestyle of consumers and
personality traits. BOH is offering different types of products such as Green Tea Latte, which is
keeping the trend with consumer’s preference for healthier beverages. While for product, Jumbo
Tea Potbag, it is aimed to target consumers who like to enjoy strong tea among family and friends.

POSITIONING STRATEGY

BOH Tea has been positioned in Malaysia market as “Largest producer of premium black teas and
the country’s No.1 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 consumers.

COMPETITOR ANALYSIS

Direct competitors of BOH Tea is Lipton Tea and Nestle Tea. Lipton Tea is a brand of tea belonging to
Unilever. Lipton available in over 110 countries, and its 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 vendor or vending
machines. Indirect competitors it is all kind of beverage company which is Nescafe, Milo, Horlicks
and others. Nescafe is a brand of coffee that made by Nestle. Nescafe is the world’s most trusted
and enjoyed coffee and it is one of the world’s most well-known brand which rich in natural
goodness, flavours and convenient. Besides, Milo is the world’s prominent chocolate malt beverages
that can mix with hot and cold water. It developed into breakfast cereals and snack bars as well.
Milo is supposedly high n energy and marked as “Energy food drink”. Not only that, Horlicks is one of
the indirect competitors of BOH Tea because it is a malted milk hot drink beverage.

BOH CURRENT PRODUCTS OVERVIEW

Beverages
BOH
Tea Leaves Tea Bag Sachet Instant tea mix
Cameron Highlands Tea Gold Blend Teh Ice Tea
Green Tea Seri Songket Tarik 3 In 1
Sencha Green Tea Herb and fruit infusions tea Cham 2 in 1
Garden Teas
Gold Blend
Seri Songket   

From the diagram above, it shows a variety of BOH’s existing products. Due to the fact that BOH’s
current products include only tea-related beverages, hence the diagram above presents only a single
product line. BOH Company does not have any product mix at the moment.

BOH CURRENT PROMOTIONAL MIX OVERVIEW

The promotional mix that BOH Company is currently using to promote their existing products are
advertising and public relations.

BOH Company have doing the in-store advertising and they give some free T-shirt and free sample of
testing for the consumers. During the evening, they came out their advertising during the tea hours
in order to target the audience on a specific time. They also did with the radio advertising with Hits
FM about the BOHFIE contest by taking creative photos and post it on social media.

As the Public Relation, BOH Company have come out some events which gain the target audiences.
BOH Company have created outdoor event which is marathon mane is as “BOH Highlands Charity
Fun Run” for 5km and they provided a free T-shirt with logo on it. During National Day, BOH
Company comes out with a slogan “CHAM FIESTA BOH” “Shares the Ummph!” with BOH CHAM and
BOH 3in1 Less Sugar.
SWOT ANALYSIS OF BOH COMPANY

For the strength of the BOH Company which is they are the global leader in instant tea. They
have the first tea manufacturer in Malaysia. BOH Company comes with a strong foundation
and knowledge about the plantation. This is will provide a good quality of product with a
miscellaneous flavour to let the consumer to choose. It is also provided an affordable price to
consumer when they are purchasing the product too.
For the weakness of the BOH Company they are been long in the market but their target
audience is just mainly focusing on the tea lovers only. are several brands with same product
had been involved in the market already , so the competitors will having the stronger
marketing and advertising than BOH company . For example, Lipton Tea is the one of the
biggest competitors that they are facing it.
For the opportunities of the BOH Company they have a plantation which can enlarge their
market by producing more different flavour to the people. Malaysia consider as a stable
politician county, this will lead the BOH Company to prevent some legal conflict and
provided for their management team that can plan easily on their future plan.
For the threats, there are a lot of people do not like to drink it the tea as the beverage, so it
compete with others drinks like Fanta and Lipton Ice Tea. The climate change of the weather
is threatening the production of tea and it will also increasing the cost of raw materials.

PROPOSED PRODUCT STRATEGIES

PRODUCT MODIFICATION: Style Modification (Packaging & Tea Flavour)

Product Modification indicates an adjustment or improvement of the existing product by generating

variations in the product’s characteristics such as design, magnitude, quality or features in order to
let it remerge virtually as a new creation. Product modification mainly comprises changes in
function, quality and style. It is important for companies to attract a wider range of customers and
trigger new sales. Style changes focus on altering the sensory appeal of a manufactured good by
varying its smell, taste, sound, texture, or visual physiognomies, yet the quality or function of the
product remains unchanged. Since the consumer’s purchase decision is very much influenced by the
smell, taste and encapsulation of a product, BOH is suggested to attempt aesthetic style modification
on its current products without upgrading or downgrading the quality of the tea leaves. For
instances, BOH can meliorate the packages or the packaging designs to become more enthralling to
the consumers. Moreover, BOH can multiply the product alternatives by inventing diverse flavours of
tea which are unique and distinctive such as rooibos and honey bush, blackcurrants, apricot, ginger,
honey goji, oolong and white tea, to reach out to an extensive range of consumers with various
preferences and distinguish itself from the competitors.

DEVELOPING NEW PRODUCT

BOH TEA DESSERTS: ICECREAM, CHOCOLATE AND BISCUITS

It is well-known that BOH Plantation Sdn. Bhd is Malaysia’s largest producer of premium black teas.
In order to increase sales, BOH Plantations Sdn. Bhd can develop new products that are closely
associated with existing products which are tea beverages but are devised to fulfil diverse
customer’s needs and wants in particular, since there is sufficient amount of tea leaves supply. New
products development of a firm refers to augmentation in its product mix and expansion in the
depth of product lines. For example, in the food market such as BOH Tea flavoured chocolate, ice-
cream or biscuits to lure customers who are having sweet tooth.

BOH BLACK TEA SKIN CARE PRODUCTS: FACIAL MASKS AND BODY LOTIONS

Not only that, BOH can invade into skin care industry as well by introducing BOH Black Tea cosmetics
products such as facial masks and hand lotion since black tea contains abundant minerals such as
potassium, zinc and magnesium, profuse vitamins B2,C and E, and certain vital polyphenols and
tannin. These essential polyphenols and tannins helps in improving blood circulation, hastening the
process of skin regeneration, fighting the bacteria in human body, protecting your skin from the
harmful impact of environment, and hence, inhibiting human being from severe skin diseases. Plus,
antioxidants presenting in black tea prominently aid anti-aging, reducing wrinkles and preventing
pimples. Thus, BOH can feasibly manufacture facial masks and body lotion as their new products to
extend its product line.

PROPOSED PROMOTIONAL STRATEGIES

PROMOTIONAL OBJECTIVES

A company’s promotional objectives must be well-defined in order to make the promotion effective.

INFORMATIVE OBJECTIVES

Informative Objectives aim to deliver clear, consistent and compelling messages with the intention
to inform consumers the existence and availability of the new product. For example, when BOH
launches BOH tea flavoured biscuits, the uniqueness creates curiosity and excitement which build
product awareness and create consumer’s interest.

PERSUASION OBJECTIVES
Persuasion Objectives are used when company faces a number of competitors who offer similar
products. BOH can show its customers that its products are better than its competitors’ by using
promotion or added value offers approaches.

REMINDER OBJECTIVES

Reminder Objectives aim to keep a company’s business in the mind of consumers and maintain
consumers’ awareness. BOH is an old brand in the marketplace which is facing declining stage in the
product-life-cycle needs to be reminded and keeping in touch with its consumers to prevent
customers loss.

PROMOTIONAL MIXES

Promotional mixes are tools used to communicate with customers and build customer relationship
effectively in order to achieve long and short term success.

ADVERTISING

Newspapers, television, radio and magazines are traditional forms of advertising. Company uses
these advertising to promote ideas and products. It provides one-way communication which allows
company to deliver messages to its target market. With technological changes, these traditional
forms of advertising have slowly obsoleted and are replaced by social media advertising such as
Facebook. Facebook is widely used by people in this modern 21 st century as it is fast, easy and
convenient. BOH can advertise their products with new packaging on Facebook and get responses
and feedbacks from consumers instantly via the amounts of likes, shares and comments. The
number of likes and comments reflects the responses by consumers which can determine whether
consumers like the new packaging or not. Positive comments on Facebook possess the power as
word of mouth which can build a positive image for BOH indirectly. Besides, it saves cost for BOH as
when people like and share the post, it is a kind of free advertising for BOH. The more people like
and share the post, the wider the advertisement is being spread. This is suitable for BOH to advertise
and introduce their new products such as BOH Tea Desserts series and BOH Black Tea Skincare
Product series as it is effective and cost-saving.

SALES PROMOTION

Sales promotion is used to increase short-term sales and inform potential customers about new
products. Examples of sales promotion are coupons, vouchers, discounts, and product samples. BOH
can invest on sales promotion to promote its new products. For example, BOH gives out promotion
of 20% off on its new BOH Tea Desserts series products to compete with its competitors and attract
customers. With 20% off, BOH products will be relatively cheaper and customers are more willing to
purchase and try as they find it worth to not purchase at a full price. BOH can also send out coupons
and product samples f BOH Black Tea Skincare Product series to customers to raise their interests
and attentions to the new products especially to those old and lost customers. BOH can also come
out with “package” promotion such as purchase two body lotions and get one free mask. This is an
effective way as people love free staff and it reduces cost on the free stuff that BOH giveaway.