International Marketing Myanmar Presentation 1

Introducing McDonald’s to MyanmarBy Dionna McLeod, Emily De Padua, Andrew Poole, & Yamaris Rodriguez

Geography Smaller than TexasBetween Bangladesh and Thailand

with India, China and Laos tooTerrain: central lowlands ringed by steep,

rugged highlandsStrategically placed near Indian shipping

lanes

DemographicsMostly Buddhist CountryOver 55 million peopleMost of the population is literateEmployment:

Agriculture 70%Service 23%Industry 7%Unemployment 5.4%

33% of the population is below the poverty line

History (brief)

1824-1886, Britain conquered Burmaincorporated the country into its Indian Empire

province until 19371948, self governingmilitary governing 1962-1988

Culture89% BuddhistHigh Context

Anade- Fear of imposing, embarrassing, or inconveniencing other people

Respect for elderselders served first

Tend to live with three generations of family

Food CultureEating beef is uncommonSoup and rice important parts of the

mealAll meals (including rice) are served

at one time in the middle of the table in a “family style”Generally, drinks include non-

alcoholic beverages such as water, green tea, or juice.

Meals are typically eaten with hands, however forks and spoons can be used.

Business Operations/ProtocolSilverware available upon requestDrink choices:

Green TeaWaterJuice

Self-service drinksLow, round tables

GovernmentSixty years of regime lifestyle ended in 2010Support from U.S. for reforms by Obama

Administration Joined WTO in 1995, reviewing trade policiesJuly 2013, expiration of Burmese Freedom

and Democracy Act (BFDA) ban on imports from Burma, 2 exceptions

Industries and EconomyIndustries of BurmaAgriculture 70%Services 23%Industry 7%Unemployment = 5.4%33% of population living

below poverty line

The Economy relies upon Agricultural exportation for 50% of its GDP.

The exchange rate between the kyats (MMK) per US dollar in 2013 was 947.9 (est.), a rate that has been rising in the last two years

Market Growth & SegmentationWorking class makes 60% of the populationPricing measured by classFast food 10% growth in Thailand, 2012

change from sit-in eating to fast paced in younger generation

Fast Food Already In MyanmarChewy Junior’s (Singapore)Lotteria and BBQ Chicken (Korea)Mary Brown (Malaysia)ICFC (KFC Knockoff)Food Carts

Fried FoodsStreet Vendors

Market SegmentsFocus on…

Lower-middle working class

Cities

Marketing to children

Possible LocationsRangoon (Pop: 4.3 million)Mandalay (Pop: 1 million)Naypyitaw (Pop: 990,000)Mawlamyine (Pop: 450,000)Bago (Pop: 249,000)

Pros/Cons of Entering the MarketPros:Close by to other successful markets,

along with respected trade partners nearby

A large labor force to employ which is literate

Plenty of agriculture to use for our food, along with funding local farmers to raise our public image

Myanmar/Burma has a positive view on U.S. products

Cons:Majority of population is below

poverty lineEating beef is uncommonKeeping food Fresh

82% of land undevelopedCorrupt governmentLimited Internet access affects

marketingTrademark Laws