Hello marketers, CEOs and business owners!
Thanks for being here! Are you trying to find the most valuable market segment in Malaysia? You are at the right place.
This is a rather unique article on market segmentation and targeting, particularly in Malaysia.
Be prepared for a wild ride. Hopefully the bits of information here helps you in your marketing effort and journey to more sales.
PICK A SUBSTANTIAL MARKET SEGMENT TO TALK TO
No matter what your niche is, you need to sell your products, services and communications to a substantial market, especially if you’re not selling a high-ticket item.
Many businesses make the mistake of targeting niche segments like vegans. I will tell you 3 reasons why this is marketing suicide.
The Malaysian market is relatively small, we don’t have a 300million population like the US.
You can focus on a growing niche like vegan products, but to grow that niche, you need to educate the people who are next-in-line to buy your product. If we go back to the vegan example, maybe they are not currently a vegan, but they could be a more mature audience, or health conscious person who might be a vegan in a year or two. Or a non-vegan who will buy vegan products once in a while for healthy meals.
If your product is relatively low or averagely priced, you will have limitation in setting up a reasonable marketing budget to be successful. Think selling an RM10 product to 10,000 people, vs selling it to 100,000 people.
However, a substantial market is not mass market. Advertising in mass market would be a huge waste of money. Successful brands like Nestle has divided their communications for different products and target specific market segments.
WHICH MARKET SEGMENT IS SUBSTANTIAL IN MALAYSIA?
Here’s more on how to pick a valuable market segment in Malaysia, assuming if your product can be potentially used or consumed by everyone.
Demographic, Value and Lifestage
Age group between 25 – 45 – This is the age group with the highest spending power in Malaysia. Most have the highest level of income in this life stage. Interestingly, this is also largest age group population in Malaysia.
Life stage – People between 25 – 45 are also more likely to have a family and this presents many more different needs to have a happy home.
High income – B40 (household income below RM4,850 per month) in Malaysia have enough income to only buy necessities. Most products do not fall under the necessity category.
Education level – This is more of a guideline rather than a rule. Generally, people who are better educated will be able to appreciate the benefits of some products and services in the market. They’re easier to explain to, they understand your USP better and also they are more likely to buy what you have to offer.
The Right Location
Let us shed some light on the biggest segment of top Malaysian income earners:
T20 population in Malaysia – 53.81% are Bumiputera households.
T10 population in Malaysia – 47.5% are Bumiputera households.
M40 population in Malaysia – 64.17% are Bumiputera households.
In short, the biggest segment of high-income population in Malaysia are Bumiputeras.
But what has this got to do with geographical location? A lot apparently. 60% of T20 population resides in Klang Valley. The balance of 40% are in the other cities in Malaysia.
If you cross target the Bumiputeras with Klang Valley urban audience, you will end up with the most valuable market segment in Malaysia.
Okay, so I know this market segment now. How do I reach out to them?
Here are 2 key points:
#1 Use the BM language
This is important because many people are under the impression that the affluent people in Malaysia only consume media in English. The data shows otherwise. In fact, a sizeable Malay community in Singapore reads Berita Harian Singapura despite being very fluent in English. People are just more comfortable with their native languages.
#2 Be selective in your media buy
Avoid BM mass media that focuses on news, gossips, entertainment-related content. Talk about the conversations that interest them – their well-being. The T20 community constantly up their game in health, home & living, financial planning, parenting and others.
AND THAT IS PRECISELY WHAT WE’RE DOING
As an overview, we are a credible and loved Urban Malay Health & Lifestyle Website in Malaysia with over 300,000 unique monthly visitors, viewing 700,000 pages per month.
We have a unique offering in that we’re able to help you reach out to the biggest, most valuable target audience to market your products and services.
The number of our readers, followers and subscribers are growing rapidly and they’re more engaged than ever in conversations about how they can improve their lives.
Here is another useful article >