Markting Asgmt

Macroenvironmental Analysis
2 market opportunities and ways that company can make use to increase company’s
performance
1. Growing demand for specialty coffee
Chek Hup White Coffee is a coffee chain that operates in the highly competitive
coffee industry. To succeed, the company needs to understand its major forces in
company’s macroenvironment and identify market opportunities that exist or may
exist. A macroenvironmental analysis considers the external factors that affect a
business including demographic, economic, natural, technological, political and
cultural factors. Coffee provides a revitalizing effect as it contains caffeine. It is one
of the most consumed and popular drinks worldwide. It is prepared and presented in
different ways. According to a report by Mordor Intelligence, the coffee market is
projected to register a CAGR (Compound Annual Growth rate) of 2.5% during the
forecast period from 2022 to 2027.This growth is driven by factors such as increasing
customer interest in high-quality and unique coffee, rising popularity of artisanal
coffee shops and growing demand for organic and fair trade coffee. Chek Hup White
Coffee could tap into this market opportunity by positioning itself as a premium
specialty coffee brand by highlighting its unique flavour and production process, also
targeting on coffee connoisseurs and aficionados. Despite the incredibly challenging
working environment imposed by Covid-19 restrictions, consumers have still been
able to access markets, largely owing to the resilience of coffee producers and supply
chains. The impact of Covid-19 on coffee production is relatively minor. As per some
clinical studies, modest coffee consumption is gentle or slightly beneficial for healthy
adults. The shifting work culture, specifically in the corporate industry, along with
enhancing living standards, is further anticipated to boost the demand in the global
market. According to the International Coffee Organization, in 2020, coffee
consumption in the Asia-Pacific and European regions was 36.5 million and 54.1
million (60 kg bags), respectively, which was 36.0 million and 53.4 million 60 kg
bags in 2019. Long-term demand is set to grow in the coming years, making it
potentially one of the fastest-growing markets.
Ways that company can make use of opportunity of growing demans for
specialty coffee to increase company’s performance
Chek Hup Ipoh White Coffee can take advantage of the growing demand for specialty
coffee in several ways to increase the company's performance. One of the ways is
investing in marketing and branding to attract specialty coffee consumers. For
example, Chek Hup can invest in marketing campaigns that emphasize the quality and
uniqueness of their product. Marketing campaigns such as social media campaigns
where social media including platforms like Instagram, Facebook and Twitter that
have millions of users, is a powerful tool to reach consumers and wider audience.
According to M.Ridder (2022), nearly half of 18-24 years old drinks coffee.
Therefore, Chek Hup Ipoh White Coffee can take advantage of the power of social
media especially on targeting young generations who are likely to be interested in
especialty coffee. Other than that, social media campaigns can use high-quality
photos, videos or graphics to showcase the quality and uniqueness of Chek Hup's
white coffee. This can help to attract consumers who are interested in visually
appealing products and who may be more likely to try something new and special.
Besides that, a successful social media campaign can also help Chek Hup engage with
consumers by responding to comments and messages for example by using hashtags
to join conversations about specialty coffee. This type of engagement can help to
build brand loyalty and create a community of fans who are excited about Chek Hup's
products.
2. Expansion into international markets

According to an article in The Star, Chek Hup Ipoh White Coffee has already
expanded into several international markets such as Singapore, Taiwan and China and
is planning to enter new market such as Japan, South Korea and the United States. As
stated by Chek Hup Sdn Bhd managing director Joseph Tan Huang Kew, they first
penetrated the Chinese market back in 2010 and until now, their products were only
vailable online on Taobao. In China alone, some one million packs of Chek Hup
beverages worth RM10mil are currently being sold annually, Tan said. This exciting
development could potentially see Chek Hup capturing a bigger market share of the
instant beverage business in China whose population size was recorded at 1.37bil in
2015.This figure constitutes about 25% of Chek Hup’s total sales in the Asia Pacific
region.This also presents an opportunity for the company to tap into new customer
segments who may not been aware of their product before, increase brand awareness
and generate revenue growth. provide the company with opportunities to build its
brand and increase brand recognition. By entering new markets and building a
presence in those regions, the company can increase its brand awareness and
reputation. This can help the company build a loyal customer base, which can lead to
sustained growth over the long term.
Ways that company can make use of expansion into international market to
increase company’s performance
Chek Hup Ipoh White Coffee can take advantage of the expansion into international
markets in several ways to increase the company's performance.
Conducting market research is a critical step for Chek Hup Ipoh White Coffee to take
in order to increase company’s performance. Market research involves gathering and
analyzing information about the new market to understand its needs, preferences and
behaviors. By conducting market research, the company can make informed decisions
about how to adapt its product offerings, marketing strategies, and distribution
channels to the new market, which can ultimately lead to increased performance and
success. Specifically, it is crucial to understand customer needs and preferences of
customers in the new market. Market research can help by gathering data on customer
behavior, therefore the company can tailor its products and marketing strategies to
meet the specific demands of the new market, which can lead to increased customer
satisfaction and loyalty.Furthermore,market research can help on assessing regulatory
and legal requirements. For example,each country has its own set of regulatory and
legal requirements that businesses must adhere to. By doing so, it can help the
company understand these requirements and ensure that it is compliant with all local
regulations and laws.
Reference
Chan Li Leen. (2017, April 8). Ipoh White Coffee set to go to China this quarter. The
Star
https://www.thestar.com.my/business/business-news/2017/04/08/ipoh-white-coffee-
set-to-go-to-china-this-quarter/

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Macroenvironmental Analysis

2. Expansion into international markets

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