Introduction of Portable Water Purifiers in Malaysian Market - Case Study Example

?Insert Grade Insert Insert Grade Insert Introduction of portable water purifiers in Malaysian Market Introduction Globalization has brought numerous benefits for business enterprises to exploit. With highly globalised international markets, it is increasingly becoming easier for businesses to develop new products targeted for foreign markets (Waters 40). One of the major factors that have contributed to this possibility is the growing trend of technological advancement in the global arena. However, there is need for enterprises to develop appropriate marketing strategies for entry into the foreign markets. In addition, for a good marketing strategy for the new products being introduced in new markets, it is essential that enterprises engage into a critical analysis of the targeted market or region (Paul 254). This is important because it helps the marketers of the product understand the market dynamics better for enhanced product positioning. As a general rule, a product is likely to sell if the conditions of the external environment are favorable for promotion purposes. The justification behind this is that for the product to be known and accepted in the market, there must be promotion and adoption campaign. This paper identifies the Malaysian market for the purposes of introducing a portable water purifying gadget. The paper will therefore analyze the current situation of the foreign country in terms of the social, political, legal and environmental factors that might affect the introduction and promotion of the new product into the new market. This analysis will be conducted on a background of the various factors that may hinder the marketing campaign for the new product. To begin, it is important to identify the new product and the justifications for introducing it to Malaysian market. The Portable Water Purifying System The portable water purifier is an innovative product developed for the purposes of ensuring that households and even travelling individuals have access to not only clean but safe water for consumption. Water is an important component of human development. However, although most people have improved access to relatively clean water in the developing and emerging economies today, there is still a problem of making sure that the water is pure and free from disease causing germs. A sure way to eliminate this uncertainty is to have a portable ‘verification’ tool. This is the main reason why this purification gadget has been developed. With the size of a small torch, the purifier uses the ultraviolet ray technology to help purify water especially before drinking. In addition, the gadget is able to recharge using limited solar rays and therefore it is the surest way of creating purification capabilities to households and individuals even in remote areas that do not have access to other purification systems. Another advantage of the product is that it is relatively cheap and durable and hence can be used by many people regardless of their economic status. In addition, the product is user friendly because just like a conventional torch light, the portable purifier works with a slide switch that activates the beam of ultraviolet rays that are able to sterilize water within a couple of minutes before use. With this hand held simple but technologically inventive gadget, the safety of the user is assured. This is because it is able to eliminate the bacteria and other pathogens that may cause illness. This product is therefore suitable in areas that are continually faced with water shortage problems. It is a guarantee of an assisted elimination of illness related to water borne diseases. It is able to purify water in a couple of minutes and therefore ideal for tourists who may not be sure of the water they have for consumption. It can also be used for relief assistance during humanitarian crises like floods to help eliminate water borne disease. Having reviewed the product on offer, it is important to look at the situation in the target country that may make this idea most appropriate. The Malaysian Situation The country has numerous water resources with ground water being a major contributor of freshwater with a proportion of about 90%. However, even with this relative abundance of freshwater in the country, there have been challenges. The water shortage problem is increasingly becoming a challenge even to the management authorities in the country. This has been attributed to the increased pressure on the massive water resources as a result of rapid population growth, industrialization initiatives and expansion of agricultural activities that rely on irrigation. Water management is even becoming a problem for the urban areas. The implication for this is that getting access to safe drinking water is becoming a great worry for the population. Azzudin (2) decries of the biting water shortage that has even affected the hospitality sector in his locality and in most parts of the country in general. Water supply is becoming a problem for most residents in the country. However, the rural population is worst hit by this situation given that they do not have well developed infrastructure for water purification and supply. In addition, the rural areas have been constantly affected by floods during the rainy seasons that may result into increased spread of water borne diseases. This problem is in fact identified as one of the major health challenges for the country. For instance the CIA (3) fact sheet points out that food and water borne diseases are the major infectious illness reported in the country with diarrhea being one of the diseases. Given that this country is also a major tourist destination in the Asian region, there is a potential of tourists being affected by this problem. The introduction of this product to the Malayan market will therefore go a long way in mitigating the effects of the current shortage of safe water in the country. It will be a relief mostly to the rural population in the country that does not have ready access to health and sanitation facilities. Even though the water situation may improve in the future, it is important to note that this product deals with the problem of safety rather than availability given the abundance nature of water resources discussed above. Having looked at the product description and the justification of its introduction to the target market through a situational analysis, the paper will now focus on the business environment in the country that will have an impact on the promotion and introduction of the water purifying system. Market Analysis The country’s business environment provides challenges and encouragement for the promotion of this new product in equal measure (Nambiar 31). To begin, the political environment of the country is a challenging one given that the country is currently preparing for elections (Gangopadhyay 2). However, since the country’s government system is a mixed parliamentary and monarchy system, there is relative stability that will be favorable for the marketing campaign of the new product. The country largely follows the British system of governance. The political boundaries of the country see it bordering Thailand and Indonesia among other Asian emerging economies. The government has largely encouraged business growth through the development of good infrastructural facilities. The marketing campaign of the new product will therefore take advantage of this favorable environment to inform the public of the benefits of the portable purifier. However, the politics of the country has been relatively destabilizing with officials being accused of corruption. Therefore, the campaign program may be faced with lack of cooperation in some cases and therefore the importance of identifying the proper channels to follow for the success of the marketing campaign. Secondly, the economic environment of the Asian country has shown a tremendous improvement in the recent past. Malaysia is a middle income country with a GDP of about 492 US dollars as per the current estimates (World Bank 2). The economy of the country has been improving gradually in the recent years with the country among the Asian powers that did not feel the effects of the global economic crisis. With this economic outlook, the product campaign may benefit from the finances that might be cheaper to acquire. In addition, with economic empowerment, it will be easy to find partners and other business deal for entry like franchises and licenses for the distribution and promotion of the product. The country’s economic growth has also endured that infrastructure in terms of transportation and communication networks are highly developed. Technological innovation has also been fast developing in the country. The government has an ambitious economic stimulus package apart from its economic transformation program that is meant to enhance growth in the country. The product will take the advantage of this program since it provides a suitable solution of ensuring that the country’s population has cost effective ways of accessing safe water for consumption. In addition, the country is also a major tourist destination in the region. With the number of tourists increasing in the past years, the product will benefit from this since its marketing campaign will also target the tourists who may help in expansion of the market for the new product. The socio-cultural environment is equally good for the promotion of the new product. The country is largely multi ethnic with a population of about 29 million people according to the recent statistics (BBC 2). The Malays are the largest cultural group in the country forming almost more than half of the total population. The other groups are comprised of Indians and Chinese. The country is predominantly Muslim and therefore the marketing campaign must be aware of the sensitive issues surrounding the faith. Moreover, the population is composed of a youthful majority with statistics indicating that individuals aged 25 to 54 years form a massive 41.3% of the country’s population. It is also this group that is highly educated. For the success of this product, the marketing campaign will take advantage of this group for promotion of sales. The literacy levels in the country will also be important for the adoption of the product. This is because there will be high chances of understanding its importance and use. Generally, the country’s people are generally courteous and place more importance on mutual agreements. This will provide a good opportunity for the marketing campaign if well exploited. Through good relations, the campaign is likely to be effective for the newly introduced product. In addition, given that English is largely spoken in the country, the marketing initiative will be easy for the product developers. For instance, the instructions for the product’s use will be given with ease. In the legal arena, the country largely uses the English common law which may be important for foreigners. However, the product will have to contend with strict regulation in the country most specifically involving relatively high taxation and tariff rates (The Heritage Foundation 3). The country’s ecological environment will be however favorable for the marketing campaign because there have been increased calls for use of renewable and sustainable energy, which this product has taken into account. Conclusion The introduction of this product into the selected market will therefore need concerted efforts that will ensure that the challenges and opportunities that exist in the business environment are well taken care of. Generally, the Malaysian market will provide a good ground for marketing of the product given the situational analysis conducted by this paper. It is also evident that through an in depth analysis of a foreign market, introduction of new products may be a success since the marketers are accorded prior knowledge of approaching the various issues prevalent in the markets. With increased technology and globalization, there will be need for good marketing strategy which depends on such analyses. Works Cited Azuddin, Aziff. “Put an end to the water crisis!” FMT News, 2013.Web. 10 April, 2013. < http://www.freemalaysiatoday.com/category/opinion/2013/01/07/put-an-end-to-the-water-crisis/> BBC. “Malaysia Profile.” BBC Asia Pacific, 2013. Web. 10 April, 2013 CIA. “The World Fact Sheet: Malaysia.” Central Intelligence Agency, 2013. Web. 10 April, 2013 Gangopadhyay, Abhrajit. “Malaysia Chooses May 5th for Election Day.” The Wall street Journal, 2013. Web.10 April, 2013 Grant, Jeremy. “Malaysian growth hides vulnerability.” Financial Times, 2012. Web.10 April, 2013. . Nambiar, Shankaran. Trade, Investment and Reform: Challenges for Malaysia. Journal of Economic Cooperation and development, 32, (1), (2011), p31-54. Paul, Justin. International Marketing: Text and Cases. New York: McGraw Hill, 2008. Print The Heritage Foundation. “2013 Index of Economic Freedom: Malaysia.” The Heritage Foundation, 2013. Web. 10 April, 2013 The World Bank. “Country Snapshot: Malaysia.” World Bank, 2011. Web. 10 April, 2013 Waters, Malcolm. Globalization. New York: Routledge Publishers, 2001. Print Read More