CHAPTER 1

1.1 INTRODUCTION

Boh Tea

Boh Tea is under BOH Plantations Sdn Bhd. And it is the leading tea grower in Malaysia with four tea gardens – Boh, Sungei Palas and Fairlie situated in Cameron Highlands, and Bukit Cheeding in Selangor – constituting a total land area of 1200 hectares. With a production capacity approaching 3000kgs per hectare, the Company produces 4 million kgs of tea annually which translates to about 5.5 million cups per day. This represents about 70% of all tea produced in Malaysia.

BOH dominates the domestic retail market. While maintaining its market position locally, the Company is also expanding into foreign niche markets. Today BOH exports its brand of prime grade teas to various countries including the USA, United Arab Emirates, Japan, Singapore and Brunei. The Company is one of the few vertically-integrated tea companies in the world. It has operations ranging the entire spectrum of tea manufacture - from cultivation and processing to the packaging and marketing of its wide range of locally grown robust black teas.

BOH’s operations are mechanised while application of fertilisers is carried out aerially and harvesting is done by hand-held machines or raised tractor harvesters. Each of BOH’s tea gardens has its own processing facility and the Fairlie tea garden utilises some of the most modern machines in the world. BOH also packs all its tea at its packing facility in Bukit Cheeding. In keeping with its commitment to quality, BOH conducts long-term research and development to ensure that only the best tea clones are cultivated. In-house tea quality teams are at hand to ensure that strict quality requirements are met at every level of processing.

BOH believes in playing an active role in the community and is keen supporter of the local performing arts scene. The Company is also an advocate for animal and environmental conservation.BOH has won numerous awards. The Company’s packing facility in Bukit Cheeding received the ISO 9002 certification and the Company was awarded Superbrand status three consecutive years in a row. BOH also emerged as winner of the Superbrand Excellence Trophy award in Food & Beverage category in 2004. As an acknowledgement of its excellent brand identity, BOH received the National Creativity & Innovation Award from Malaysia Design Technology Centre.

Today, BOH is the Number One brand of tea in Malaysia. Yet, the Company is not one to rest on its laurels. BOH keeps abreast of its evolving consumer demographic and industry trends while continuing to produce distinctive teas for both domestic and international customers.

1.2 PROBLEM STATEMENT AND ISSUE

Tea also can be considered as the most Malaysian favourite nowadays. Boh has created many types of tea and one of them is Boh Ice Tea which is have five flavour in market and it is Blackcurrant, Green Tea, Orchard splash, Lemon Lime and also Peach. The industry for Boh Ice Tea now is average even had so many competitors with other brands. Competitors like Lipton, Nestle The Wangi Ros, Teh Orang Kampung. With good advertising strategy will normally boost up the sales. This is because people nowadays just not buy a product based on the brand and price,but they are also more attracting to the promotion of the product that’s going on.

· Lack of promotion such as advertising,promotiona and exposure on market.

· Had been so long in market without any strategies to boost up the sales.

· Overshadowed by Lipton Ice tea and Nestea from Nestle.

· Competitors have a good advertising strategy and market strategies to promote their brand.

1.3 OBJECTIVES & AIM

· OBJECTIVES

§ To identify the market situation

§ To identify the product competitors and their strategies.

§ To know in depth and well about the product strength and weakness.

§ To solve the problem encountered and identified by the company.

§ To find out the consumer needs and wants.

· AIM

§ To create a new advertising promotional strategies to enhance the product market with a new fresh idea to attract people to buy this Boh Ice Tea in future.