1. Company Background
Cha-Yu-Qian-Xun is a Neo-Chinese Style tea beverage brand that combines traditional tea culture with contemporary flavors, renowned for innovative tea products. Malaysia was selected as the first international expansion destination based on the country's thriving food & beverage industry and the growing tea consumption trend.
| Role | Name | Student ID |
|---|---|---|
| CEO | CHU YIFEI | P158125 |
| CMO | YANG JINGWEN | P159933 |
| CFO | TANG XUTONG | P159586 |
| Senior Manager | LI WENJIE | P159756 |
| Manager | CHEN WEIXIONG | P160184 |
| Economist | LIU YAN | P159852 |
2. Market Analysis
Market Characteristics: Malaysia's tea beverage market exhibits monopolistic competition structure with numerous brands, significant product differentiation, and free entry/exit. Demand is driven by rising income and young consumer preferences; supply side faces intense competition with many local and international brands entering the market.
3. Quantitative Analysis
Elasticity Analysis Results
| Elasticity Type | Value | Economic Meaning |
|---|---|---|
| Own-Price Elasticity | -0.40 | Inelastic demand, price increase boosts revenue |
| Cross-Price Elasticity | +0.30 | Coffee serves as substitute goods |
| Income Elasticity | +0.42 | Normal goods, demand grows with income |
4. Porter's Five Forces Analysis
Industry Rivalry
Fragmented market with numerous brands and intense price competition
Threat of New Entrants
Low entry barriers, but brand barriers are forming
Threat of Substitutes
Numerous substitutes like coffee and fruit juices
Buyer Power
Price-sensitive consumers with low switching costs
Supplier Power
Multiple ingredient suppliers favor cost control
5. Strategic Recommendations
5.1 Premium Positioning
Position as "Premium Neo-Chinese Style tea" through high quality and cultural experience differentiation. Based on MR=MC principle, theoretical optimal price is RM 19, but considering competition, we recommend RM 12-15.
5.2 Product Localization
Launch localized beverages like "Coconut Sugar Pearl Milk Tea" that integrate local flavors. Ensure all products obtain Halal certification. Import core ingredients from China, source common ingredients locally.
5.3 Brand Marketing
Initial advertising investment at 25% of sales, focus on social media and local KOL collaborations. Highlight the unique "Chinese Tea Heritage" story and premium ingredients.
5.4 Long-term Innovation
Continuous product innovation and brand building to create new differentiation, delay the slide toward long-run zero-profit equilibrium, and maintain competitive advantage.
Conclusion
Cha-Yu-Qian-Xun's entry into Malaysia market has solid economic foundation and strategic feasibility
Through differentiated positioning, data-driven pricing, localized product strategy, and efficient operations, the brand is poised to succeed in the Malaysian market. The key lies in establishing a unique consumer perception of "High-Quality Neo-Chinese Style tea" as a strong competitive moat.
Thank you, Professor. Thank you, Everyone!