Dunkin Donuts is a restaurant chain famous for its varieties of donuts worldwide. The company is looking forward to set up their business in Myanmar. The company need to expand and grow its business in Myanmar to cover up the Asian markets. The place will provide a new taste and variety of snacks to people in Myanmar. The company aims at creating its place in the food and beverage market of the country. The company will face the legal implications of the country. The company will need to get a foreign investment permit. The company need to plan and ensure that how business will be carried on in Myanmar. The company is looking for a perfect entry medium in the Myanmar market which will reduce the business complexities and increase their profits in the new country (Chang, 2016).
The business of Dunkin Donuts started in 1946 by Bill Rosenberg. The business is 65 years old which energize and reward the customers by proving great taste in products, excellent services and innovative marketing. The company operates in many countries through franchises and build awareness for their brand through exceptional marketing efforts. The brand is a part of everyday life for many people in USA. The company face challenges and move forward to compete against the competitors. The company is successfully grabbing opportunities in the market is growing successfully (Dunkin Donuts, 2017).
Figure 1: Dunkin Donuts
The company deals in different bakery products and beverages and its main specialised product is donuts. Following are the product categories of Dunkin donuts:
Baked goods
Hot beverages
Iced beverages
Sandwiches
Frozen beverages (Dunkin Donuts, 2017)
Figure 2: Products of Dunkin Donuts
For setting up a retail chain in Myanmar, the characteristics of Myanmar Restaurant Industry has to be studied so that further decisions can be taken by the company. The economy of Myanmar has made a considerable progress in recent years and the food and beverage has also developed. The government is supporting US restaurants by easing the US imposed sanctions and improving bilateral trade so that more financial transactions could take place. Dunkin Donuts can get benefit of this governmental support and it could enter into the market (Thiha, 2016).
The local population of Myanmar belongs to the medium income families who prefers quality over the price but cannot pay premium prices for the products. They need convenient buying and good quality products in average prices (Thiha, 2016).
It is recommended that the company should enter through franchisees in Myanmar which would be controlled by the parent company Dunkin Brands in USA. It will be a big expansion and it needs contractual agreement where the franchisor will be allowed to sell the products of the company in return for a royalty paid to the parent company. The franchisee will offer a right to operate a restaurant and sell the products of Dunkin Donuts only. The products include Doughnuts, bagels, muffins, pizzas, etc. which are approved by Dunkin Donuts. Within the targeted area, the company will develop a network of restaurants through franchises (Barua, 2014).
Franchisee is recommended because it is best way to integrate the business norms of Myanmar and the work terms of the company. The franchisees will sell the products approved by the company and will keep their prices and other set up just same as directed by the parent company but the royalty fee is to be paid in order to do business in their brand name. Franchising mode of entry is suggested because Dunkin Donuts offers the best franchisee support in this industry and they also provide their experts to help throughout the application of franchising and in the further processes (Dunkin Donuts, 2017).
Figure 3: Franchising support by Dunkin Donuts
Source: Dunkin Donuts (2017)
Myanmar government passed a law in 2012 which waved off interest in the country so it created opportunities for the businesses but there are risks some risks involved when Dunkin donuts will invest in the country. The country’s political situation is unstable. There are ongoing religious conflicts which might protest an American brand in the country. The infrastructural support is poor and the company lacks in skilled labour. The population of Myanmar might support the local businesses rather than foreign brand (Thiha, 2016).
The legal reforms of the country attract the foreign investments of the country. The country has Yangon Stock exchange which improves the local business access to the capital markets. The economic reform in the country brings political liberalisation and stability. Economic plans are made which focuses on five areas fiscal prudence, efficient government, monetary and fiscal stability, infrastructure and agriculture. This supports the establishment of new business also.
The company will face competition from the local bakery and beverage product brands of Myanmar. Dunkin Donuts will face a tough competition from Sonoco, a local brand of beverages. The second competitor is Nilar group of companies providing food stuff to the population. The foreign brands like Coca cola and Starbucks are also set to enter the industry of Myanmar which will give tough competition to the Dunkin Donuts (Maierbrugger, 2013).
For analysing the current marketing position, a situational analysis is required. PESTEL analysis and SWOT analysis will be done which will let the company determine where it stands and what factors could affect its performance. The company’s strengths, weakness, opportunities and threats will be determined to know what steps should be taken further for expansion of the business (Taylor & Video Education Australasia, 2009).
The target market of Dunkin Donuts is kids, Youth and adults. The business has to consider many factors to determine the target market like demographics, behaviour and psychographics. It is required so that the business could provide the required products and services to the potential customers and can attract them towards the company’s offerings. The company will further design its promotional strategies to attract the target market.
The company has to develop and adopt strategies for product, pricing, placement and promotion. Different strategies are made in order to achieve the main objectives of the business.
Product: The Company will provide high quality bakery goods and beverages in different varieties to attract the local population of Myanmar.
Price: The prices of the products should be sold at moderate levels so that the average income group of population which holds majority of population can afford to buy these products. Competitive pricing should be adopted to beat off the competition from local competitors.
Promotion: The Company will have to adopt different promotional strategies so that the population can get attracted and start buying from Dunkin Donuts. For e.g. they can provide a free cookie on the purchase of two donuts. They canalso use other channels for promotion.
Place: The Company should identify the famous food streets and markets where the visibility of the franchisee stores of Dunkin donuts will be more. They can also start giving the facility of online ordering to the customers (Zacharakis, Spinelli & Timmons, 2011).
Some strategies are to be determined so that smooth business operations can be maintained. Some of the internal operations and controls are:
Cash: Physical verification of cash is important.
Inventory: Physical verification of Inventory is to be done compulsorily and the invoices should be checked with the records (Lavinsky, 2013).
The company need resources in order to complete its objective of opening retail chain in Myanmar.
Staff: There is a lack of skilled labour but are available in cheap rates. The company will have to make arrangements of training for making the resources skilled. For a single store, the staffing requirements are:
Store manager- 1
Marketing manager- 1
Marketing team- 2
Finance manager- 1
Kitchen staff- 4
Trainer-1
Time: The Company need a 1 year time to plan, execution and management of the activities which helps in getting the successful expansion of the business. The company have to prepare a blueprint so that the business can be set up successfully following the blueprint (Lavinsky, 2013).
The Company will need finance resources for expanding its operations in Myanmar. A financial plan is made for the smooth operations in the country. The company will sell its franchisee in return of the royalty fee. The company will have to prepare an estimated balance sheet, income statement and cash flow statement. To know the expenses and profit estimations of the business (Zacharakis, Spinelli & Timmons, 2011)
References
Barua, D (2014). Market Entry Mode Strategies. Linnaeus University, Växjö.
Chang, M (2016). Entrepreneurship your business plan. IEEE Engineering Management Review. vol. 44. no. 1. pp. 21-23.
Dunkin Donuts (2017). What’s available. Retrieved from https://www.dunkinfranchising.com/franchisee/en/whatsavailable.html.
Lavinsky, D (2013). Marketing Plan Template: Exactly What To Include. Forbes.
Maierbrugger, A (2013). Finally: Starbucks set to enter Myanmar. Investvine.
PWC (2016). Doing Business in Myanmar. Myanmar Business Guide.
Taylor, S & Video Education Australasia (2009). The business plan. Video Education Australasia, Bendigo, Vic.
Thiha. (2016). Myanmar restaurants seek more govt support. Consult- Myanmar.
Zacharakis, A, Spinelli, S, Jr & Timmons, J A (2011). Business plans that work: a guide for small business. 2nd edn, McGraw-Hill. New York.
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