Malaysia Market Segmentation Harvard Case Solution & Analysis

Malaysia Market Segmentation Case Solution


The Malaysian geographical outlay is separated into two distinct parts. Peninsular Malaysia, the eastern side is full of forested mountain ranges, this unsheltered coast consists of peaceful beaches backed upon dense jungle. The specific area at which the unit will be sold is integral to its success, as higher humidity and heat will result in the extenuated need for cooling apparatus’.

 The more rural forest-inhabited areas could be an interesting market to observe, as the low operating-costs of the machine and its ability to run on portable power means that consumers living in hostile environments without a reliable power-source would enjoy the product on a different level to others. However, the problem of finding suitable shopfronts will be a problem Close Comfort must overcome. On the other hand, the main shopping district (Kuala Lumpur) has a consistently high average temperature, ranging from a low of 27*C in January to a high of 28*C in March. These more populated areas, where temperatures are fairly consistent and highly humid are the main targets for Close Comfort, as they also have the most expensive cost of living, and are therefore susceptible to quality products which can also offer economic value.


In terms of gender, the brand doesn’t necessarily need to specify its product, as air-conditioners are fairly universally used items and can safely be considered unisex. That being said, Close comfort will most likely target people looking to live comfortably, or looking to care for others, which may be a characteristic more closely attributed to women and their caring & nurturing nature. However, this could involve wide range of people, with a large dependence upon their income and ability to spend money on luxury items such as this. Generally a focus would be put on families looking to care for younger children, in this case the ages could range anywhere between 25-45 years of age. This is largely due to their disposable income and need to create a suitable environment for their young ones, a focus could then be placed upon the health advantage of cool and comfortable surroundings on younger children. This could also be equally advantageous for young/middle-aged adults taking care of their parents or the elderly, who certainly need an air-conditioned environment especially in the more humid parts of Malaysia. In this way, an air-conditioning system such as this can target a market who are unable to care for themselves, however this also means that they are usually unable to individually purchase the item.The middle-aged Malaysian population has also spiked in recent years, which means an increased market with considerable purchase power & willingness to buy. Their age also results in an acceptance of new brands and products, and a heightened susceptibility to social media – which is another advantage for Close Comfort as they are a generally unknown brand and will rely heavily upon their ability to advertise and promote their product. The promotion of quality will also be important, as young families will look for reliability within their products, a life-cycle of only a few months won’t be acceptable for young families looking to provide comfort for their young children over numerous years – therefore a dependence upon the quality of the product is integral in its sale. The larger brands such as Panasonic and LG hold a large share within the market, however Close Comfort has the additional advantage of being a specialised product. They can therefore appeal to their market segment through ‘reliability’, as they are a brand which sells only one specific product. The Malaysian air-conditioning industry has grown remarkably over the past two years, with a double digit growth rate, and an expected retention of stable volume growth over the forecast period.............

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