Bee Cheng Hiang is basically a company, which manufactures Asian-style food items, particularly that of Singaporean cuisine (Bee Cheng Hiang, 2018). Beginning like a marketplace stall during the year 1933 within Singapore, the corporation has spread its procedures to over 260 retail stores situated across nine different countries i.e. China, Indonesia, Hong Kong, Macau, the Philippines, Malaysia, South Korea, Singapore and lastly, Taiwan (Bee Cheng Hiang, 2018). Ever since the time of its establishment the company has sown great progress in terms of products, sales and profits. The company’s renowned product is bakkwa that is roasted and smoked pieces of pork having uniformity just as jerky. Moreover, Bee Cheng Hiang launched “Gourmet Bakkwa” during the year 2003 (that is bacon-like bakkwa slices) and during the year 2005, the “Chilli Gourmet Bakkwa”. The corporation has greatly progressed with the passing years and expanded its products to take in prawn rolls, cuttlefish, crispy pork floss and sausages etc. Additionally, Bee Cheng Hiang is not only a ‘bakkwa’ corporation (Bee Cheng Hiang, 2018).
Bakkwa, also called rougan, is basically a Chinese salty-sweet dried meat product just like jerky (Bee Cheng Hiang, 2018). Bakkwa is developed from a meat preservation and preparation approach arising from China. The standard means for production have continued to be virtually same all through the years however the methods have gradually enhanced. It’s traditionally developed of pork, mutton or beef that is made with sugar, spices, salt as well as soy sauce, while dried on racks at about 50-60 °C. These days, products having lighter color, softer texture and low sugar contents are favoured (Bee Cheng Hiang, 2018). Moreover, the shafu kind of bakkwa items hold greater water amount and therefore, has a lower sugar content and softer texture. While, the traditional bakkwa holds a water activity less than 0.7, shafu bakkwa is likely to be closer to a water activity of around 0.79. Nonetheless, shafu could hold alike shelf life as other kinds of bakkwa. Additionally, Bakkwa is highly prevalent within Malaysia and Singapore where it is regularly consumed at the time of Chinese New Year (Bee Cheng Hiang, 2018). At the time when Chinese immigrants introduced this delicacy over to Malaysia and Singapore, it started adopting on local traits. A prominent example is present in bakkwa preparation (Bee Cheng Hiang, 2018).
The key target market of the company involves consumers and bakkwa lovers between the age group of 15-50 years. These consumers are at all times ready to try new flavours of Bakkwa and have high craving for it. They also ready to shell out extra amount for different flavours and type of Bakkwa (Bee Cheng Hiang, 2018). The company’s vision is to become Asia’s renowned food corporation: offering superior products as well as services to the worldwide marketplace. Within the world where safety of food is of great significance, the buyers could enjoy the offered products with high comfort. Its bakkwa are developed with 100 percent natural ingredients, that to without adding any meat tenderizer, artificial flavouring, preservatives or colouring and MSG (Bee Cheng Hiang, 2018). Further, taking the above discussion into consideration this particular paper attempts to focus upon the expansion of Bee Cheng Hiang in Myanmar, with Bakkwa being its chief highlight and offering.
This particular section throws light upon how Bakkwa offered by Bee Cheng Hiang is appropriate for the consumers in Myanmar by adopting the SWOT Analysis tool. According to Hill and Westbrook (1998), SWOT is a highly effective tool for evaluating the strengths, weaknesses, opportunities as well as threats related to a company, product or industry. It assists in effectively examining the internal and external environment (Hill and Westbrook, 1998). Houben et. al. (1998), hold the view that SWOT works around both long-term and short-term objectives and helps in determining the immediate business atmosphere.
Myanmar is at present is facing a youth bulge wherein around 36pc of the populace belongs to the age group of 10-29 years, tagged along by 27pc belonging to the age group of 30–49 years (Countries and Their Culture, 2018). Moreover, these age groups put forward not only a young as well as ambitious workforce but also a noteworthy untapped customer base for corporations like Bee Cheng Hiang to target in Myanmar (Lintner, 2003). Additionally, the speedy paced reforms as well as incoming foreign investments have resulted in superior employment prospects, speedy growth and greater spending power particularly for the Optimists as well as Aspirants who have incorporated economic development and change. At present, just 24pc of the Myanmar populace earns over $120 monthly as major part of the populace (>60pc) persists to be employed within the unindustrialised agriculture segment (Lintner, 2003).
Nevertheless, this percentage is projected to go up to around 48pc by the year 2022 directed through increasing employment prospects within the services as well as manufacturing segments. The linked generation is categorized as being ‘voracious buyers and with greater attraction for overseas brands as well as products, are projected to drive customer spending going ahead. Also, there exists a slow but stable change of purchasing procedures and decision forming, particularly around the urban regions directed through an increase in modern trade stores. Further, the Burmese customers are considered to eat out more regularly with the speedy progress of foreign food outlets set up within Tier 1 cities (Lintner, 2003). Local contemporary retail operators like City Mart, Gamone Pwint and Capital, have augmented existence of 24-hour convenience outlets, while Hypermarkets and Supermarket are not just seen within Tier 1 regions but also within Tier 2 and 3 regions of Taunggyi, Pathein and Mawlamyine. Although buyers are impatient of catching up, signifying that the value of the services and products continues to be key with customers being more value mindful as compared to price (Lintner, 2003). Food within Myanmar shows a mix of both Indian as well as Chinese brands, with local soups and curries inserting a Burmese flair into the food item. Rice is considered as being the staple food within Myanmar, resulting in around 75% of the local diet. Normally, food meals are offered at the dining table along with the individual pieces present to make sure that the diners could serve themselves as well as build their own groupings (Lintner, 2003). A condiment prepared from preserved prawn or fish and chili powder complements the majority of meals.
It has been observed that highly rich within Myanmar are expected to become richer, the gap amid the poor and rich might increase during the next 10 years. At present, just 40 individuals within Myanmar have over US$30 million in personal wealth. It has been expected that by the year 2022 the number of highly rich would be more than 300 (Goddard, 2005). Myan mar is even now regarded as being one among the poorest within East Asia, with a projected GDP per capita of around $800 as well as $1,000 (Lintner, 2003). At present, the gap amid the poor and rich of Myanmar is the highest worldwide. The presence of the gap amid the poor and rich relies greatly upon the nation’s income distribution policy. This shows that the purchasing power of the buyers in Myanmar greatly relies upon their income i.e. the rich and medium level buyers are likely to show more interest towards buying Bee Cheng Hiang products than the lower class.
At present, just 24pc of the Myanmar populace earns over $120 monthly as major part of the populace (>60pc) persists to be employed within the unindustrialised agriculture segment. Nevertheless, this percentage is projected to go up to around 48pc by the year 2022 directed through increasing employment prospects within the services as well as manufacturing segments.
There is no doubt in the fact that food sector is highly competitive in Myanmar. While there are other global brands already set-up within Myanmar’s meat snack sector including Fragrance Foodstuff, Lim Chee Guan, Kim Joo Guan and KFC, there is at present no direct competitor, which makes available the Asian variant on jerky like Bee Cheng Hiang. In order to put forward an example, companies operating in food sector of Myanmar spend a huge amount of money in sponsoring events. The Myanmar’s political environment is primarily dominated by continuously changing government influence which has the capability to impact working of both large and small businesses. Further, constant changes in terms of public spending priorities are also a significant factor in terms of the relationships with other nations. Also, political affairs in the Myanmar are closely linked with the legal changes and laws keep on regularly upgrading, especially in the areas concerning health & safety, environmental legislation etc (Curran, 2000). Additionally, new business start-ups like Bee Cheng Hiang in Myanmar need to be familiar with the level of corruption, social & employment legislations, regulation & de-regulation trends, tax & tariff policies, consumer protection laws etc.
Moving ahead, alterations in consumer preferences, is regarded as a vital factor in the food sector. This is because the customers have different options and variety of food item to choose from at a specific time. There are a number of different brands and types of food items as well as flavours present in the market and the customers can anytime easily shift onto some other products or brands offered by the rival company (Lintner, 2003). For this reason, it is believed that the impact of this specific factor upon sales of Bakkwa offered by Bee Cheng Hiang in Myanmar is relatively high. Additionally, the bargaining powers of the buyers is high since the market for food products within Myanmar is basically a buyers’ marketplace having several small and big brands in the battle for selling their offered products to the consumers.
Myanmar is at present is facing a youth bulge wherein around 36pc of the populace belongs to the age group of 10-29 years, tagged along by 27pc belonging to the age group of 30–49 years (Goddard, 2005). Moreover, these age groups put forward not only a young as well as ambitious workforce but also a noteworthy untapped customer base for corporations like Bee Cheng Hiang to target in Myanmar. Additionally, the speedy paced reforms as well as incoming foreign investments have resulted in superior employment prospects, speedy growth and greater spending power particularly for the Optimists as well as Aspirants who have incorporated economic development and change (Lintner, 2003). At present, just 24pc of the Myanmar populace earns over $120 monthly as major part of the populace (>60pc) persists to be employed within the unindustrialised agriculture segment (USA Today, 2018).
Nevertheless, this percentage is projected to go up to around 48pc by the year 2022 directed through increasing employment prospects within the services as well as manufacturing segments (Goddard, 2005). The linked generation is categorized as being ‘voracious buyers and with greater attraction for overseas brands as well as products, are projected to drive customer spending going ahead (USA Today, 2018). Also, there exists a slow but stable change of purchasing procedures and decision forming, particularly around the urban regions directed through an increase in modern trade stores (Lintner, 2003). Further, the Burmese customers are considered to eat out more regularly with the speedy progress of foreign food outlets set up within Tier 1 cities. Local contemporary retail operators like City Mart, Gamone Pwint and Capital, have augmented existence of 24-hour convenience outlets, while Hypermarkets and Supermarket are not just seen within Tier 1 regions but also within Tier 2 and 3 regions of Taunggyi, Pathein and Mawlamyine (Goddard, 2005) Although buyers are impatient of catching up, signifying that the value of the services and products continues to be key with customers being more value mindful as compared to price.
There are around hundred different languages spoken within Myanmar (also called Burma). Moreover, Burmese, spoken through two thirds of the total populace, is the official language. Moreover, languages spoken through ethnic minorities signify six language families i.e. Sino-Tibetan, Tai–Kadai, Austro-Asiatic, Indo-European, Hmong–Mien and Austronesian (USA Today, 2018). Around 80% of the individual present within Myanma, follow Buddhism (Lintner, 2003). Theravada Buddhism is considered as being the prevalent religious belief and lays emphasis upon karma, or the notion that carrying out good results in greater good and carrying out evil results in greater evil. The majority of Mayanmarese also have belief in reincarnation. The nation provides freedom of religion as well as part of its populace follows the Christian, Muslim as well as Hindu faiths. Business associations concentrate upon developing friendship and trust (Goddard, 2005). In case if a business favor is gained, the recipient needs to repay it afterwards. Business subjects normally don’t come up in discussion at the time when two businessmen get in touch with one another for the foremost time nevertheless instead serve like an opportunity for evaluating strengths, weaknesses as well as personality.
The majority of commercial business transactions within Myanmar take place in English however business cards having Burmese translation could enable superior communication (USA Today, 2018). People living within Myanmar follow a custom of displaying respect towards their elders that could result in friction within business situations at the time when a supervisor is younger as compared to the subordinate in age (Lintner, 2003). Legal exports in Myanmar take in timber, rice, pulses, beans, fish, precious stones, garments and lastly, rice. Legal imports take in plant equipment, construction materials and customer items. The variance in the imports and exports values is covered greatly through revenue from illegal and narcotics exports. Under British colonial control, Burma was the globe’s foremost exporter of rice and rice continues to be the chief legal export of Myanmar (Lintner, 2003). The main export and import countries in Myanmar are India, India, Malaysia, and Singapore.
There is no doubt in the fact that food sector is highly competitive in Myanmar. While there are other global brands already set-up within Myanmar’s meat snack sector including Fragrance Foodstuff, Lim Chee Guan, Kim Joo Guan and KFC, there is at present no direct competitor, which makes available the Asian variant on jerky like Bee Cheng Hiang. Thus, the indirect competitors of Bee Cheng Hiang involve other sector players offering their respective forms of jerky and likewise market their items like a snacking option.
Additionally, to put forward an example, corporations functioning within food segment of Myanmar put in a good amount of funds towards promotion and making sure quality products. The threat of substitutes for the company like Bee Cheng Hiang in Myanmar is relatively high. Stated the reality that the food segment is categorized via intense level of competition with firms making available items similar to ones provided by Bee Cheng Hiang, it’s not at all astonishing that the corporation must be extremely focussed for remaining competitive and ahead of the rival companies within Myanmar (Jonathan and Lee, 2008). Further, this leads to the situation in which the company incessant needs to innovate, to remain a step ahead of the rival firms. Undoubtedly, the threat of substitutes is noteworthy for Bee Cheng Hiang in Myanmar (Jonathan and Lee, 2008). However, the customers who shift to the substitute items are price conscious group that prefer price over quality. Thus, this seats the corporation at an advantage over other competitors as the quality conscious customers would stay faithful to the company.
Porter’s five forces framework assist the corporations as well as individuals in properly assessing where exactly the control prevails in a company or industry (Porter, 2006). It can be regarded as a business strategy approach that aids in examining the magnetism along with efficiency in a market composition. As per Porter (2012) there are five different factors, which work collectively for understanding the nature and level of competition within a specific sector. These forces take in threat of new entrants, Bargaining power of buyers, Bargaining power of suppliers, Threat of substitute products and lastly, degree of competitive rivalry. These forces are considered as being highly significant from strategy development perspective. Moreover, the capability of these forces varies from product to product and industry to industry (Porter, 2006). Such factors together determine the efficiency of the market as they shape the costs, which can be charged, the expenditures which can be accepted and finally, the investment required for competing within the segment.
The threat posed by new entrants with respect to Bee Cheng Hiang in Myanmar is relatively low because high capital is required for stepping into the food industry. It is not that easy to enter a sector where there are several highly acknowledged brands that function based upon differentiation concepts. New corporations would experience problems associated with patents if they do not concentrate upon their R&D for offering pioneering and exceptional product (Park and Gill, 2006). Additionally, all these factors would together require a new entrant to establish competitive brand at the same time gaining economies of scale by making investments in developing an effective distribution model along with supply chain procedure for remaining competitive. The costs for attaining these targets result in a highly influential barrier to entry.
The bargaining power of the suppliers is relatively limited since there are various suppliers who could provide raw material to Bee Cheng Hiang in Myanmar. Just as in other sectors, the food segment also calls for a wide network of vendors to make sure that the vendors function competently. Thus, Bee Cheng Hiang would rely significantly upon its suppliers for timely provision of the raw material and therefore, any type of disruption within the supply network could prove to be bothersome.
The buyers’ bargaining power is a vital aspect in the food sector. This is because the customers have different options and variety of food item to choose from at a specific time. There are a number of different brands and types of food items as well as flavours present in the market and the customers can anytime easily shift onto some other products or brands offered by the rival company (Lintner, 2003). For this reason, it is believed that the impact of this specific factor upon sales of Bakkwa offered by Bee Cheng Hiang in Myanmar is relatively high. Additionally, the bargaining powers of the buyers is high since the market for food products within Myanmar is basically a buyers’ marketplace having several small and big brands in the battle for selling their offered products to the consumers.
The threat of substitutes for the company like Bee Cheng Hiang in Myanmar is relatively high. Stated the reality that the food segment is categorized via intense level of competition with firms making available items similar to ones provided by Bee Cheng Hiang, it’s not at all astonishing that the corporation must be extremely focussed for remaining competitive and ahead of the rival companies within Myanmar (Jonathan and Lee, 2008). Further, this leads to the situation in which the company incessant needs to innovate, to remain a step ahead of the rival firms. Undoubtedly, the threat of substitutes is noteworthy for Bee Cheng Hiang in Myanmar (Jonathan and Lee, 2008). However, the customers who shift to the substitute items are price conscious group that prefer price over quality. Thus, this seats the corporation at an advantage over other competitors as the quality conscious customers would stay faithful to the company.
The effect of this force on Bee Cheng Hiang in Myanmar is certainly high because of the presence of several small and big corporations providing similar items as the corporation. The competition level is very high and fierce, essentially in markets like Myanmar, in which the wars amongst the competitors are alike that between pepsi and coke (Lintner, 2003). Additionally, to put forward an example, corporations functioning within food segment of Myanmar put in a good amount of funds towards promotion and making sure quality products.
After having discussed the Porter’s five forces for Bee Cheng Hiang in Myanmar, the section below attempts to analyse the external environment of Bee Cheng Hiang in Myanmar in further detail using PESTEL framework.
According to Kotler (2012), PESTEL analysis is basically an approach followed to analyze and study an organizations’ surrounding environment. It helps discover Political, Economical, Social, Technological, Environmental and Legal factors that can affect business operations of a firm. David (1995) adds to it by stating that this is an extremely powerful tool and is now followed by firms all across the globe. Further, as compared to other analysis tools, PESTEL encourages to explore the wider market environment (Kotler, 2012). Moving ahead, the paragraphs below will now present the PESTEL analysis of the UK business environment to understand the issues faced by SMEs.
According to Curran (2000), the Myanmar’s political environment is primarily dominated by continuously changing government influence which has the capability to impact working of both large and small businesses. Further, constant changes in terms of public spending priorities are also a significant factor in terms of the relationships with other nations. Also, political affairs in the Myanmar are closely linked with the legal changes and laws keep on regularly upgrading, especially in the areas concerning health & safety, environmental legislation etc (Curran, 2000). Additionally, new business start-ups like Bee Cheng Hiang in Myanmar need to be familiar with the level of corruption, social & employment legislations, regulation & de-regulation trends, tax & tariff policies, consumer protection laws etc.
In Myanmar, economic factors are generally linked with social factors. The Myanmar economy is prone to constant fluctuation mainly due to slumps and constant booms (Scase, 1999). Boom can be advantageous for both big and small firms and opposite can happen during the slump. But small businesses will not suffer much since the investment and complexity is low. Further, the other economic conditions that can impact businesses include inflation rate, wages, interest rate, exchange rates, recession etc. For instance, during the period of recession, businesses like Bee Cheng Hiang involved in selling food products might not really affected and can make lots of revenue (Porter and Ketels, 2003). In terms of economic condition, a new business start up like Bee Cheng Hiang in Myanmar should be updated with the impact of globalization, labour costs, income distribution, rate of unemployment, different stages of business cycle, economic growth rate, interest rate, inflation rates etc (Curran, 2000).
Social factors for running a business in the Myanmar include lifestyle, tastes and behavior of the customers (Scase, 1999). Every single individual has his/her unique liking and disliking which makes it compulsory for businesses to understand the pattern. Further, the age structure of the overall population also keeps changing from time to time. Thus, it is always better for Bee Cheng Hiang to analyze and evaluate the social trends of the society and market situation before investing dollars in any new business (Curran, 2000). This includes growth rate of population, poverty rate, cultural aspects, work culture, level of education, ethical/regional factors, living standards, earning capacity, media views, trends, family sizes etc (Beaver and Prince, 2004).
Further, considering the fact that the Myanmar is a developed economy, technology plays a powerful role in almost all work domains especially in the 21st century era (Beaver and Prince, 2004). Organizations now possess advanced technical infrastructure and communication technologies that enable to offer excellent service to the customers. Technology could be a database, shared portals, CRM system, advanced networks etc. Similarly, before starting any new business in the Myanmar, all the existing technologies should be well analyzed in terms of their costing, licensing, advantages as well the way they can reduce operational costs (Porter and Ketels, 2003). Also, it can be beneficial to explore their role in different sectors such as transportation, waste management, energy, fuel etc.
Environmental factors include the various environmental regulations and issues that need to be well understood in order to run a business in the Myanmar (Porter and Ketels, 2003). Both the government and citizens in the Myanmar are cautious about protecting environment, wildlife etc and regularly practice activities such as waste management, recycling, carbon content etc. Thus, a new business like Bee Cheng Hiang in Myanmar should be in strict alignment with the ecological system and match the Myanmar culture.
According to Beaver and Prince (2004), starting a new business in the Myanmar is also associated with certain legal factors that include legal processes, regulatory bodies, competitive regulations, industry-specific regulations, consumer protection laws, employment laws etc. Myanmar is very strict in terms of laws and regulations. Thus, it should be ensured that there exists proper understanding of the various applicable laws.
It has been observed that highly rich within Myanmar are expected to become richer, the gap amid the poor and rich might increase during the next 10 years (Trading Economics, 2018). At present, just 40 individuals within Myanmar have over US$30 million in personal wealth. It has been expected that by the year 2022 the number of highly rich would be more than 300 (USA Today, 2018). Myan mar is even now regarded as being one among the poorest within East Asia, with a projected GDP per capita of around $800 as well as $1,000 (Trading Economics, 2018). At present, the gap amid the poor and rich of Myanmar is the highest worldwide. The presence of the gap amid the poor and rich relies greatly upon the nation’s income distribution policy. So the main target of Bee Cheng Hiang in Myanmar would be middle and rich group of the society
The Gross Domestic Product (GDP) within Myanmar was equal to 67.40 billion US dollars during the year 2016. The Myanmar’s GDP value signifies around 0.11% of the global economy (Trading Economics, 2018). GDP within Myanmar was around 31.50 USD Billion from the year 1998 till the year 2016, showing an all-time high of around 67.40 USD Billion during the year 2016 and a record low of around 6.46 USD Billion during 1998 (Trading Economics, 2018).
The GDP (Gross Domestic Product) within Myanmar extended 5.90 % during the year 2017 from the preceding. GDP Annual Growth Rate within Myanmar accounted for around 8.73% from the year 1994 till the year 2017, attaining an all-time high of around 13.84% during the year 2003 and a record low of around 3.60% during the year 2008 (Trading Economics, 2018).
The per capita in Myanmar was recorded at around 1420.50 US dollars during the year 2016. The per Capita within Myanmar is equal to 11% of the globe’s average (Trading Economics, 2018). The per capita within accounted for 391.55 USD from the year 1960 till the year 2016, gaining an all-time high of 1420.50 USD during the year 2016 and low of 150.20 USD during the year 1967 (Trading Economics, 2018).
The currency prevalent within Myanmar is MMK (Countries and Their Culture, 2018).
Myanmar is considered as being the 130 least corrupt countries of total 175 countries. Corruption Rank within Myanmar averaged around 158.33 from the year 2003 till the year 2017, touching an all-time high of around 180 during the year 2011 and low of about 129 during the year 2003. Since the level of corruption is low in Myanmar there won’t be much impact upon Bee Cheng Hiang.
In Myanmar, just as other business segments the food sector also needs to pay certain tax to the government to ensure smooth functioning of the business. With respect to Bee Cheng Hiang, the company would need to pay certain taxes governing the food sector to operate effectively. Also, there are certain taxes that overseas companies need to pay for carrying out operations in Myanmar.
Government Relations
It has been observed that Singapore and Myanmar Govt have good relationship G to level. This would greatly benefit Bee Cheng Hiang as it would help in easy penetration of the company in Myanmar. It might not have to undergo comprehensive process needed for foreign company entering Myanmar.
National Belief
Since a large number of people from Myanmar are working in Singapore the company is not likely to face any kind of resentment from people of Myanmar given the fact that Bee Cheng Hiang being a Singaporean food brand.
Language
There are around hundred different languages spoken within Myanmar (also called Burma). Moreover, Burmese, spoken through two thirds of the total populace, is the official language (Countries and Their Culture, 2018). Additionally, languages spoken through ethnic minorities signify six language families i.e. Sino-Tibetan, Tai–Kadai, Austro-Asiatic, Indo-European, Hmong–Mien and Austronesian (Goddard, 2005).
Food within Myanmar shows a mix of both Indian as well as Chinese brands, with local soups and curries inserting a Burmese flair into the food item (Lintner, 2003). Rice is considered as being the staple food within Myanmar, resulting in around 75% of the local diet (Goddard, 2005). Normally, food meals are offered at the dining table along with the individual pieces present to make sure that the diners could serve themselves as well as build their own groupings. A condiment prepared from preserved prawn or fish and chili powder complements the majority of meals. The people of Myanmar have strong craving for Chinese food. They have high food spending power and are ready to spend even extra amount for tasty and unique food items.
Around 80% of the individual present within Myanma, follow Buddhism. Theravada Buddhism is considered as being the prevalent religious belief and lays emphasis upon karma, or the notion that carrying out good results in greater good and carrying out evil results in greater evil (Goddard, 2005). The majority of Mayanmarese also have belief in reincarnation. The nation provides freedom of religion as well as part of its populace follows the Christian, Muslim as well as Hindu faiths.
Business associations concentrate upon developing friendship and trust. In case if a business favor is gained, the recipient needs to repay it afterwards (Countries and Their Culture, 2018). Business subjects normally don’t come up in discussion at the time when two businessmen get in touch with one another for the foremost time nevertheless instead serve like an opportunity for evaluating strengths, weaknesses as well as personality (Goddard, 2005). The majority of commercial business transactions within Myanmar take place in English however business cards having Burmese translation could enable superior communication (Countries and Their Culture, 2018). People living within Myanmar follow a custom of displaying respect towards their elders that could result in friction within business situations at the time when a supervisor is younger as compared to the subordinate in age (Lintner, 2003).
Trade
Legal exports in Myanmar take in timber, rice, pulses, beans, fish, precious stones, garments and lastly, rice. Legal imports take in plant equipment, construction materials and customer items (Countries and Their Culture, 2018). The variance in the imports and exports values is covered greatly through revenue from illegal and narcotics exports. Under British colonial control, Burma was the globe’s foremost exporter of rice and rice continues to be the chief legal export of Myanmar. The main export and import countries in Myanmar are India, India, Malaysia, and Singapore (Countries and Their Culture, 2018). So, this clearly makes trade practices of Bee Cheng Hiang in Myanmar quite easy.
Bee Cheng Hiang would enter Myanmar by taking into consideration both direct as well as indirect exporting. Direct exporting would involve selling products manufactured by Bee Cheng Hiang, particularly Bakkwa directly to the target buyers within the marketplace. For doing so the company will set own brand outlets all round Myanmar. Selling straight to the buyers would mean that there is no other person in the export chain sharing the profit levels (Daniels et. al., 2007). Nevertheless, in return Bee Cheng Hiang would require making bigger commitments in terms of funds as well as human resources. It requires time for making contacts and building relations, negotiating deals, understanding the marketplace and conducting marketing, particularly within an unfamiliar marketplace. As per indirect exporting Bee Cheng Hiang would consider selling to or via some channel partner in Myanmar. This is a reasonably cheap as well as simple means of entering the new marketplace. This is the quite common strategy adopted by several corporations performing business globally. Additionally, channel partners could involve distributors or agents based within the target export marketplace (Daniels et. al., 2007). Using them could prove to be a speedy means of getting the offered products and services to the ultimate user, as Bee Cheng Hiang would be selling via its present networks or consumer base.
Marketing simply implies towards a business task that helps in recognizing the buyers’ requirements, determines target marketplaces and applies products and services to be offered to such target marketplaces (Kotler and Keller, 2006). Moreover, it also considers the promotion of offered products and services among the potential buyers. Marketing is considered as being extremely significant for the success of any company, be it large of small, laying high focus upon the quality, consumer value as well as customer satisfaction. The concept extensively taken up is the “Marketing Mix”. This concept takes in four different forces i.e. 4Ps of marketing involving Product, Place, Price and lastly, Promotion (Kotler and Keller, 2006). Additionally, the marketing mix collectively combines these four factors for attaining the desired results among the target market. All four elements are equally significant and idyllically support each other (Kerinet. al., 2011). Corporations adjust individual element in the marketing mix for setting up brand recognition and Unique Selling Point (USP), or exceptional selling point that eventually makes their products superior than those of the rival (Kotler and Keller, 2006). Moreover, the chief purpose behind the marketing mix is to offer correct item at correct place at correct price and at correct time. Furthermore, the following sections throw light upon the marketing mix of Bee Cheng Hiang in Myanmar.
Products basically involve services and goods that are offered by the company for sale purpose to the target marketplace. When developing a product, the corporations also consider the quality, traits, design, consumer service, packaging and any following after-purchase provisions (Kotler and Keller, 2006). In case of Bee Cheng Hiang in Myanmar, it is quite evident that the product is intended to provide maximum contentment to the buyers. The key target market of the company involves consumers and bakkwa lovers between the age group of 15-50 years. These consumers are at all times ready to try new flavours of Bakkwa and have high craving for it. They also ready to shell out extra amount for different flavours and type of Bakkwa. The company’s vision is to become Asia’s renowned food corporation: offering superior products as well as services to the worldwide marketplace. Within the world where safety of food is of great significance, the buyers could enjoy the offered products with high comfort. Its bakkwa are developed with 100 percent natural ingredients, that to without adding any meat tenderizer, artificial flavouring, preservatives or colouring and MSG. The company would aim at offering diverse range of Bakkwa in Myanmar.
Demographic
Geographic
Behavioural
The key positioning approaches to be taken into consideration by Bee Cheng Hiang in Myanmar is differentiation. What really motivates the knowledgeable and principles directed buyers, is the comprehension that they are making an informed choice rather than a usual or highly exclusive purchasing. By externally placing Bee Cheng Hiang above its rivals in terms of quality, sustainability efforts and community initiatives, the corporation could significantly boost its reputation and would make possible for the customers holding a similar vale set for being more connected to the company. The way in which the customers think about a particular food product would consciously or sub-consciously make a difference in the purchasing patterns and also bring about a positive change in their viewpoint regarding Bee Cheng Hiang and ultimately, increase overall profitability and sales.
|
Attribute |
Positioning |
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Taste and product focussed |
· Positioning Bee Cheng Hiang as being taste and product focussed could be highly beneficial for the corporation. |
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Community minded |
· Consumer trend highlights the actuality that integrating product localization and supporting traceability is a sound way of aiding communities and ensuring that the buyers are well-informed regarding their food origin and manufacturing and gain higher level of satisfaction with food quality. · Bee Cheng Hiang brand needs to engage with the society and position itself like a society minded corporation. |
The place factor is basically concerned with the distribution, location and methods of making available particular products and services for the ultimate customers (Kotler and Keller, 2006). This involves store location, business location, logistics, distributors and retailers. The Bee Cheng Hiang in Myanmar would spread in different regions of Myanmar. The corporation would consider both direct as well as indirect distribution strategies. The direct approach would take in selling products by own brand outlet as well as indirect means would take in selling the offered products via some other food outlets and brands. Moreover, the chief aim of the company would be to offer the product at maximum possible locations and maximum consumer at the earliest possible. Bee Cheng Hiang would enter Myanmar by taking into consideration both direct as well as indirect selling. Direct selling would involve selling products manufactured by Bee Cheng Hiang, particularly Bakkwa directly to the target buyers within the marketplace. For doing so the company will set own brand outlets all round Myanmar. Selling straight to the buyers would mean that there is no other person in the export chain sharing the profit levels. Nevertheless, in return Bee Cheng Hiang would require making bigger commitments in terms of funds as well as human resources. It requires time for making contacts and building relations, negotiating deals, understanding the marketplace and conducting marketing, particularly within an unfamiliar marketplace. As per indirect selling, Bee Cheng Hiang would consider selling to or via some channel partner in Myanmar (Goddard, 2005). This is a reasonably cheap as well as simple means of entering the new marketplace. This is the quite common strategy adopted by several corporations performing business globally. Additionally, channel partners could involve distributors or agents based within the target export marketplace. Using them could prove to be a speedy means of getting the offered products and services to the ultimate user, as Bee Cheng Hiang would be selling via its present networks or consumer base.
Price basically involves the total money that the buyers must pay for buying the particular products or service (Kotler and Keller, 2006). Moreover, there are a number of considerations in terms of price that take in price setting, cash and credit purchases, discounting and finally, credit collection. In case of Bee Cheng Hiang the price would be fixed considering different costs linked to the product i.e. production cost, marketing costs, distribution cost and others. Additionally, the price of the products offered by Bee Cheng Hiang in Myanmar would be fixed taking into consideration the cost of similar products made available by the rival companies. The corporation would aim at offering superior quality products to the buyers at a reasonable price and at price that is lower than the cost of similar products offered by the competitors. Further, the company would focus upon value based pricing that involves offering best value products at offered price. The aim would be to facilitate buyers with exceptional quality Bakkwa that to at a reasonable price.
Promotion involves the act of highlighting the advantages and values of the offered product to the buyers (Kotler and Keller, 2006). It takes in persuading general buyers to become customers of the company through using diverse techniques such as advertising, personal selling, sales promotion and direct marketing (Kotler and Keller, 2006). In the same manner, Bee Cheng Hiang in Myanmar would also take in a number of marketing approaches i.e. print media, internet, sales promotion, TV advertisements, direct marketing, networking sites and personal selling (Shimizu, 2009). The media approach of Bee Cheng Hiang in Myanmar would concentrate upon direct marketing and advertisements within different newspapers and magazines.
This element is related to the location and techniques of distributing the offered items to the potential customers (Kerin et. al., 2011). The Bee Cheng Hiang in Myanmar promotion strategy would involve both push and pull strategy. Firstly, the push strategy would be actionable via marketing intermediaries as well as food stores that would form trading relationship with the Bee Cheng Hiang and in such settings the offered product would be distributed intensively. Additionally, the push approach together with intensive distribution would make possible that the provided items are be broadly available in the new marketplace and current traditional customers.
Secondly, the pull marketing approach would be executed by the sales marketing team of Bee Cheng Hiang travelling to different regions of Myanmar for distinct kinds of promotional events taking in food festivals as well as farmers marketplaces for targeting new marketplace. The awareness and sales campaigns would make possible for the customers to think positively and independently with respect to Bee Cheng Hiang brand would assist the buyers in personally realising the quality offered foodd products.
Conclusion
To conclude, it can be clearly stated from the above discussion that Bee Cheng Hiang entry into Myanmar would prove to be quite lucrative. As discussed in the above sections Myanmar holds the potential of offering sound growth prospects to the company. Food within Myanmar shows a mix of both Indian as well as Chinese brands, with local soups and curries inserting a Burmese flair into the food item. Rice is considered as being the staple food within Myanmar, resulting in around 75% of the local diet (Goddard, 2005). Normally, food meals are offered at the dining table along with the individual pieces present to make sure that the diners could serve themselves as well as build their own groupings. A condiment prepared from preserved prawn or fish and chili powder complements the majority of meals. The people in Myanmar being big lovers of Chinese food would surely like Bee Cheng Hiang, particularly Bakkwa. Additionally, as discussed in the above sections the brand can experience several growth prospects and opportunities in Myanmar. However, at the same time Bee Cheng Hiang needs to also make sure that it effectively deals with the likely threats and challenges with respect to Myanmar food sector. This will help the company to ensure long-term sustainability and existence within Myanmar.
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