Monday, July 18, 2011

CHAPTER 3



THE COMPANY

3.1 COMPANY OVERVIEW

BOH Plantations Sdn Bhd 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’s operations are mechanised while application of fertilisers is carried out aerial

ly 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.

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.

3.2 BUSINESS DESCRIPTION

Boh Plantation Sdn.Bhd is one of the tea grower in Malaysia with four tea gardens - Boh, Sungei Palas and Fairlie situated in Cameron Highlands. Boh Plantation distributed all tea and black tea products. BOH 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. BOH understands this unique feature better than anyone. After all, BOH is today the nation’s leading brand. BOH dominates the domestic retail market. While maintaining its market position locally, the Company is also expanding into foreign markets. Today BOH exports its brand of prime grade tea’s to various countries including the USA, United Arab Emirates, Japan, Singapore and Brunei.

3.3 COMPANY HISTORY

Boh Plantation Sdn.Bhd

The story of BOH begins in 1890 when seven-year-old J.A. Russell arrived in Kuala Lumpur, Malaya with his father. At that time, the capital was a mishmash of tin miners' shanties, houses built by Chinese immigrants and palatial new buildings designed by British government architects.

J.A. was educated in England, but upon his return to Malaya, he began

his career in the Straits Trading Company where he became fluent in as many as 5 Chinese dialects as well as Bahasa Melayu. This, together with his close contacts with wealthy Chinese tin-miners, paved the way for his investment in the country's flourishing mining industry.

In partnership with his brothers Philip, Donald and Robert, J.A. soon started diversifying his business interests. In 1908, he ventured into the rubber industry, which was then still in its infancy. He was also involved in the construction business and, together with Philip, was contracted to build the Kuala Lumpur railway station.

In 1913, J.A transacted one of the most remarkable business deals in his career where he acquired almost a third of the town of Ipoh.

Around the same time, he established a colliery at Batu Arang in Selangor. In this venture, he was assisted by his brother Donald, a mining engineer trained at the Colorado School of Mines. Their foresight and initiative helped transform this jungle area into a thriving industrial centre just 25 km from Kuala Lumpur.

But it was his business venture in 1929 that has left an indelible mark on the country. J.A. saw the potential of tea as an important crop for Malaya which until that time had been substantially dependent upon rubber and tin. Together with A.B. Milne, a veteran tea planter from Ceylon, he applied for and was granted a concession of land in Cameron Highlands.

Equipped with a single steamroller, some labourers and several mules, they proceeded to transform steep virgin jungle slopes into the tea garden we now know as Boh, the first highland tea garden in the country.

Thus, BOH Plantations, the current market leader for tea, was born.

J.A. Russell was a scholarly yet dynamic person. When he died in 1933 at the early age of 50, the obituary carried by The Malay Mail, the local English language newspaper, aptly described his life in Malaya:

'His whole career has been a business romance of such magnitude that it cannot be compared with the achievements of any other European in Malaya – past or present.’

3.4 KEY PEOPLE

· Caroline Russell

o Chief Excutive Officer (CEO)

o Chairmain of the Board Directors

o Chairmain of the Audit Committee.

· Tristian Russell

o Chairman of the Board directors.

· Chen Chaw Chang

o Head of Marketing

· Jason Foo / Caroline Russell

o Chief Financial Officer

o Managing Director

· Estate Controller

· Caroline Russell

o Chief technical Officer

· Mr. Patma Nathan

o Manager of Information Systems

3.5 LOCATION AND SUBSIDIARIES


CORPORATE OFFICE:

BOH PLANTATIONS SDN BHD
No. 9, Persiaran Hampshire off Jalan Ampang
50450 Kuala Lumpur Malaysia

P.O. Box 10245
50708 Kuala Lumpur
Tel: +603 2164 6555 Fax: +603 2164 6610


BOH TEA CENTRES:

BOH TEA GARDEN
39200 Ringlet
Cameron Highlands

Tel: +605 493 1324

SUNGEI PALAS GARDEN39100 Brinchang
Cameron Highlands

Tel: +605 496 2096



BRANDS, MAJOR PRODUCT AND SERVICES

1. Boh Tea Leaves

Malaysia’s most popular brand. Grown in the cool climates of Cameron Highlands, this broken orange pekoe is flavoury and robust with a distinctive, unique character.

2. Boh Ice Tea

This is a speciality and new product in Malaysia by the famous Boh Plantations. It is a ealy invigorating and tastey mix of tea and fruit to give a complete refreshing drink. Comes with 5 flavors.

3. Boh Teacino

Teacino Classic is the original masterpiece. Indulge yourself in the creamy, full bodied taste of tea, deliciously blended with milk and sugar for those irresistibly frothy moments.

Teacino Chocolate Mint features exhilarating mint combined with the full flavour of chocolate.

4. Boh Teamix

BOH Instant Tea Mix- 3 in 1 / Instant Tea Mix makes it easy to experience the robust full flavor of Boh tea. Pre-blended with tasty creamer and sweetened with sugar, for smoother and creamer taste. Simply add water for a quick and refreshing cup of tea.

5. Boh Garden Tea’s

A lowland breakfast tea of robust and full-bodied character from the tea garden.

6. Boh Cameronian Gold Blend Tea’s

Another BOH best seller, the BOH Cameronian Gold Blend is a true masterpiece cultivated in Cameron Highlands from which it takes its name. Aromatic and delicate, this smooth golden blend uses only the tender shoots of the Manipuri and Rajghur jats.

7. Boh Alternative Tea

Range of non-traditional tea’s and refreshing selection of fruits infusions, herb infusions and green tea.

8. Boh Seri Songket Tea’s

Each tea in this range is an exotic blend of spices, fruit and flowers. May be served hot, iced, as a spritzer or nightcap.

9. Boh Teh Tarik Kurang Manis

Experience the robust, full flavour of Boh Teh Tarik Kurang Manis – with less sugar in each convenient sachet.

3.7 CORPORATE VISSION

· Boh Plantations Sdn Bhd vision is to be a leading beverages company in Asia and also including the USA, United Arab Emirates, Japan, Singapore and Brunei in the world to providing customers need’s and want’s with a healthy product at affordable price range.

3.8 CORPORATE MISSION

· Providing the best product throughout the day with the unique experience of anticipating consumers needs and wants in creating solutions.

· Enhance the commitment to enabling and encouraging a balanced and a healthy life style.

· Organizational capabilities and passion that compete in the present and build for the future.

3.9 COMPANY CURRENT PROMOTIONAL STRATEGY

Boh Plantation sdn Bhd promotional strategy is organized some event and promotional contest in order to promote their brands.

1 UMMPH, 1 SMILE, 1 MALAYSIA CAMPAIGN


May 2010, Kuala Lumpur ‘A smile is a curve that sets everything right.’ As we go through the hustle and bustle of our busy lives, we tend to forget that a simple action like a smile can create wonder to those around.

EDTAU GADDUNG FESTIVAL

BOH Plantations (BOH), together with WWF-Malaysia organised this trip with the aim to create awareness on the Edtau Gaddung festival – a unique tree planting event organised by the local communities in Kampung Bilit, Sabah – that lends support towards forest rehabilitation and wildlife conservation efforts.



KINABATANGAN TRIP FOR SCHOOL PROGRAM WINNER


January 2010, Kuala Lumpur Nothing beats having to trek through the dense rainforest in Sabah and trudge through muddy / hilly terrains just to have a first-hand experience at saving the orang-utans. This was the unanimous feeling shared by students who won the New Hope for Orang-utan School Programme by BOH Plantations and WWF Malaysia.



NEW HOPE FOR ORANG-ORANG UTAN SCHOOL PROGRAMMES


BOH Plantations Sdn Bhd (BOH), Malaysia’s favorite and leading tea brand, together with WWF-Malaysia (WWF) and TV9 are joining forces to raise awareness on the plight of the ‘Man of the Forest’. The New Hope For Orang-utan School Programme was conceived with the purpose of continuing to create awareness on the plight of the orang-utan among youths and to empower them to play a role in spreading the message of conservation of these primates.

3.10 PRODUCT SALES HISTORY



3.11 CURRENT MARKETING OBJECTIVES

SHORT TERM OBJECTIVE

· Improve product quality to boost up the sales.

· Promote all the product with a new advertising promotional to attract consumer.

LONG TERM OBJECTIVE

· Developing on brand image and implications of the product.

· Make Boh Plantation be the 1st in the top ranked in the world.


3.12 MEDIA EXPENDITURE

Boh Plantation has used the media greatly in order to promote their product and campaign that they are doing. TVC is used to promote the new product in their line to attract people to buy the new item in market. While the press ad and print ad is doing the same thing to promote the new item on the rack and also be a brochure or pamphlet to consumer about the new info of Boh Tea.

TVC :


PRESS AD & PRINT AD



CHAPTER 4

CONSUMER AND STACKHOLDERS

4.1 CURRENT CONSUMER’S CHARACTERISTICS

4.1.1 DEMOGRAPHICS

AGE : 17 – 40 Years old

GENDER : Male and Female

EDUCATION : Secondary,Undergraduate,College or University

OCCUPATION : Working salaries range and student

INCOME : Allowance to RM 4000

GEOGRAPHIC LOCATION : Rural,Sub-Urban and Urban

4.1.2 PSYCHOGRAPHICS

PERCEPTION : People who loves the assortment flavour of tea.

LEARNING : Friends and Family, Tv Advertisement & Newspaper.

MOTIVATION & NEEDS : Demand for a good quality of tea in various flavour.

ATTITUDE & PERSONALITY : Taste conscious

LIFESTYLE : Leisure,Relaxing,Enjoyment

4.2 STAKEHOLDER’S CHARACTERISTICS

4.2.1 PRIMARY

· Chairman

Set u the company goals and supervising company development with all the boards of director.

· Boards of Directors

Directing the employees of the company to achieve the goal and expenditure.

· Shareholders

Investing money to make the company go on and also on a share on the profit.

· Employees

Contributing to the company. Make all the jobs to achieve the goals.

· Consumers

Spending money for the goods produced by the company.

4.2.2 SECONDARY

· Retailers

The outlets that sells the product to the trade or end consumers.

· Distributors

An organization or set of organizations (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user.

· Media

Help to advertise the promotional items of the brands and create the awareness among the consumers.

· Bank

Provides loan as funding backup to the company. To generate the profit.

CHAPTER 5


INDUSTRY AND MARKETPLACE

THE INDUSTRY

5.1.1 THE DEFINITION OF THE INDUSTRY

Malaysia had a great experienced in Tea industry. Tea was ejoyed a bullish year in 2010 with a higher growth rate. There are a lot of company which produced tea also such as Nestle,Lipton,Teh Wangi and etc. Nowadays tea has been consumed as a daily routine basis for all Malaysian. They prefer the instant tea to let them be more easier to drink and to bring it everywhere even they are going to picnic. The young generation is much more like to have an instant tea with a flavour such as peach,blackurrant and etc. While the others generation is love to have their premium black tea without any flavour.

F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage", which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. The largest section of F&B employees are in restaurants and bars, including hotels, resorts, and casinos.

5.1.2 SHAPE OF THE INDUSTRY

Tea is a popular drink in the world after coffee and it was in the top five in world ranked most consumed beverages in the world. Tea becomes popular since a long time ago and beside that tea also can be as a medicine and give consumer a good health lifestyle.

Tea was discovered in Malaysia since the early of 1900s. More than 5000ft above sea level, on the main mountain range of Malaysia, is one of the most fertile agricultural spots in the country: Cameron Highlands. So in 1929, J.A. established Boh Tea Garden, the country’s first highland tea garden in Cameron Highlands. Today, BOH Plantations owns two more tea gardens in Cameron Highlands: Fairlie and Sungei Palas.

Tea is very much like wine; the conditions in which the crop is grown have great influence on its final character. BOH’s tea gardens, bringing together the ideal environmental conditions of Cameron Highlands and the precision of mechanised operations, yield a tea with superb characteristics – bright and brisk complemented by a delightful aroma.

BOH packs its own teas which are marketed in both domestic and international markets.

Today, BOH has the largest combined acreage of tea gardens in the country. The Company remains committed to the legacy left behind by J.A. Russell: to produce great-tasting distinctive teas for generations to come.

The shape of tea industry in Malaysia is in the growing stage. Now people will not only think about the brands and the taste but they will much more concerned on the quality of the tea. Tea,now has become a daily routine activities in their life. Sales for the tea market now are increasing due to the highly demand of consumer in market.

5.1.3 DEVELOPMENT OF THE INDUSTRY

Most Malaysian people now love to have a tea in all their activities. Tea is easier to serve to others people even when you have a meeting with clients and also if u want to have a picnic since tea now also can be found in sachet like Boh Ice Tea,Lipton Teatime and etc. At the same time, tea is a beverage that transcends creed or culture. Regardless of favourite football teams, political opinions or religious beliefs, every Malaysian is sure to find common ground when it comes to having a cup of tea.

Black tea, oolong / red tea and green tea are made by different processes and have their own particular characters. Green tea and oolong tea are usually drunk without milk, while black tea can be drunk either with or without milk. Strong liquoring types of black tea such as Assam, Kenya and BOH are well-suited for use with milk. Light liquoring, fragrant Darjeeling and artificially flavoured teas such as Earl Grey are probably best without milk. Tea also be popular because some of them come with their own function like green tea,oolong tea and others.

This is the essence of this simple yet great-tasting brew. Whether tarik-ed and frothy, ice-c old with a squeeze of lime or steaming and fragrant, tea brings people together.

It is essential to recognise that the way you make tea, even the same type of tea, can greatly influence how it will taste. The local water can also have a marked influence.The most important thing is to get the strength right for your taste. This depends on how much tea you use relative to the amount of milk and sugar. If the brew is too weak, use more tea; if it is too strong use less.

Many Malaysians make tea with sweetened condensed milk. A strong coloured brew is needed to counterbalance the milk's flavour. If you try drinking the same brew without milk, it will be unpleasant.

5.2 THE MARKETPLACE

5.2.1 CURRENT CONDITION OF THE MARKETPLACE

The market for tea is now in growing and had an intensive competiton with others brands due to the highly demand in consumers. There are a lot of company now competing with others to boost up their sales in market and they were come out with a new all advertisement and promotion. Lipton, Yeos and Nestle is the big competitors for Boh plantation now a days.

5.2.2 CHANGE IN MARKET PLACE

· POSITIVE

o Comes with a new fresh idea to promote the product in market to boost up the sales.

o Put more effort to make their product being well known in market and through the world.

· NEGATIVE

o Because there is so many new product in market now,so the sales for the current product may be decrease due to the demanding of the consumers.

o The product will not be in all stores/supermarket/hypermarket. Might be can be found in certain place.