The paper 'TNA Market Profit Potential in Malaysia and Vietnam" is a good example of a marketing case study. TNA Pty. Ltd. (TNA) is an Australian engineering and manufacturing company. It provides equipment and machinery for use in the food processing and packaging industry. It is a well-established company in Australia, having been founded in 1982 by an engineer working in the food industry. The company seeks to be the leading producer of its kind in the world. Thus far, it has succeeded in taking over the Australian market by storm, and the owners of the company are seeking to expand overseas.
This is an analysis of two potential markets, Malaysia and Vietnam, and their market profit potential for TNA. Malaysia Malaysia has a very richly diverse population in terms of culture and natural resources. This, combined with its lush tropical climate, makes the country a great and convenient place for all manner of food cultivation and research. For this reason, Malaysia is on its way to becoming one of the leading countries in food processing and production in Asia (Malaysian Investment Development Authority (MIDA), 2015). Advantages Malaysia has an economic freedom score of 71.5, as of 2016, ranking 29th in economic freedom in the world.
The country’ s economic freedom has been on a steady rise over the years, improving by 5.1 points since 2012. It has made especially great strides in the management of public finance and trade freedom (Heritage. org, 2016). Malaysia has attained the status of “ mostly free” . The number of government subsidies has been reduced, and the corporate tax is set to be reduced this year. Malaysia’ s regulatory efficiency has also improved greatly.
The government has put in place new measures to ensure this. Starting a business in Malaysia is very easy; it only takes three steps, and there is no stipulated minimum capital (Heritage. org, 2016). The country also has open markets. Malaysia’ s economic freedom (Heritage. org, 2016) Malaysia has recorded a steady population growth rate of about 2% per annum. The country’ s living standards have also been increasing along with the population increase. There is, therefore, an annual increasing demand for healthy and convenient foods, which in effect means that food factories continue to record the growing market.
The steadily increasing demand for packaged food in Malaysia makes the country a prime market for TNA, seeing as the food factories will require more machines, both in quality and quantity, for greater production. The food processing industry in Malaysia is already well established, which means that TNA already has a market in the country. This takes off the burden of having to introduce the market to their products. It is also worth noting that the food processing industry in Malaysia is rather successful. In 2013, Malaysia exported roughly 6.7 billion US dollars’ worth of food products, to approximately 200 countries, all from its local food processing and production industry.
This value was only 10% of the total output from Malaysia’ s food industry, which is dominated by small to medium scale companies. Processing technology has also been advancing in the country, and TNA can tap into this wave since there are more investors in the food industry now than ever before in Malaysia.
Austrade, Australian Government, ASEAN Food and Beverage markets - Updates and insights from the region - Google Search. ASEAN Food and Beverage markets - Updates and insights from the region - Google Search. Available at: https://www.google.com/search?q=asean food and beverage markets - updates and insights from the region [Accessed September 18, 2016].
Ayupp, K., 2013. Malaysian Food Processing Industry: Strategies for Growth. International Journal of Business and Social Science, 4(16).
Country-facts.findthedata.com. (2016). Vietnam vs Malaysia- Country Facts Comparison. [online] Available at: http://country-facts.findthedata.com/compare/25-81/Vietnam-vs-Malaysia [Accessed 30 September, 2016].
Czinkota, M.R., Ronkainen, I.A., Moffett, M.H., Ang, S.H., Shanker, D., Ahmad, A., and Lok, P., 2009. Fundamentals of international business, 1st Asia-Pacific Edition. Wessex.
Department for International Trade. Overseas Business Risk - Malaysia. - GOV.UK. Available at: https://www.gov.uk/government/publications/overseas-business-risk-malaysia/overseas-business-risk-malaysia#human-rights [Accessed September 18, 2016].
Department for International Trade. Overseas Business Risk - Vietnam. - GOV.UK. Available at: https://www.gov.uk/government/publications/overseas-business-risk-vietnam/overseas-business-risk-vietnam#terrorism-threat [Accessed September 18, 2016].
Heritage.org. (2016). Malaysia Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. [online] Available at http://www.heritage.org/index/country/malaysia [Accessed September 27, 2016].
Heritage.org. (2016). Vietnam Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. [online] Available at http://www.heritage.org/index/country/vietnam [Accessed September 27, 2016].
International Markets Bureau, 2011. Packaged Food in Vietnam. Agriculture and Agri-Food Canada. Available at: https://www.gov.mb.ca/agriculture/market-prices-and-statistics/trade-statistics/pubs/vietnam_packaged_food_en.pdf [Accessed September 18, 2016].
Ironpaper, 2016. 6 Marketing Tips for Manufacturing Companies. WebIntel by Ironpaper. Available at: http://www.ironpaper.com/webintel/articles/6-marketing-tips-manufacturing-companies/ [Accessed September 18, 2016].
Kelley, C., 2014. 5 Ways Manufacturing Companies Can Use Social Media Marketing. 5 Ways Manufacturing Companies Can Use Social Media Marketing. Available at: http://blog.marketingv2.com/5-ways-manufacturing-companies-can-use-social-media-marketing [Accessed September 18, 2016].
Komack, A., 2008. 7 Search Marketing Strategies for Manufacturers & Distributors | KoMarketing. B2B Search Engine Marketing Social Media Blog KoMarketing Associates. Available at: http://www.komarketingassociates.com/blog/7-search-marketing-strategies-for-manufacturers-distributors/ [Accessed September 18, 2016].
Malaysian Investment Development Authority, 2015. Food Industry in Malaysia. Available at: http://www.mida.gov.my/home/administrator/system_files/modules/photo/uploads/20150922201955_food_v1.pdf [Accessed September 18, 2016].
Murphy, S. & Jamian, Z., Halal food: 3 insights for breaking into a $1 trillion food industry. Research Industry Voices. Available at: http://researchindustryvoices.com/2015/03/17/halal-food-3-insights-for-breaking-into-a-1-trillion-food-industry/ [Accessed September 18, 2016].
TMF Group, Top 10 challenges of doing business in Vietnam. Top 10 challenges of doing business in Vietnam. Available at: http://www.tmf-group.com/en/media-centre/resources/top-challenges/apac/vietnam [Accessed September 18, 2016].
Trankiem, L., Ahmed, Z.U., Jevons, C. and Jan, T.A.K., 2000. Doing Business in Vietnam: Implications for International Investors. Journal of Transnational Management Development, 5(4), pp.3-24.
Vietbiz, 2008. Vietnam Processed Foodstuff Industry. Available at: http://www.vietrade.gov.vn/images/stories/an_pham/vietbiz_processed_food_stuff_industry.swf [Accessed September 18, 2016].
Wee, C.F., Seizing the halal market's potential | Future Ready Singapore. Seizing the halal market's potential | Future Ready Singapore. Available at: https://www.futurereadysingapore.com/2016/seizing-the-halal-markets-potential.html [Accessed September 18, 2016].
Zurhelle, K., Demaurex, L., Kocholl, M., Hess, D. Export | Switzerland Global Enterprise, S-GE. Export | Switzerland Global Enterprise, S-GE. Available at: http://www.s-ge.com/en/blog/doing-business-vietnam-opportunities-and-threats [Accessed September 18, 2016].