Myanmar Market Entry: A Case Study of Bee Cheng Hiang's Expansion

This case study delves into Bee Cheng Hiang's potential expansion into Myanmar, evaluating the market's suitability for the Singaporean food chain. It employs SWOT, PEST, and Porter's Five Forces analyses to examine the business environment and market dynamics. The analysis covers Myanmar's market characteristics, competitive landscape, cultural environment, and potential entry strategies for Bee Cheng Hiang, focusing on the viability of introducing its signature 'bakkwa' product. The study further explores the 4P's marketing mix, providing a comprehensive assessment of the opportunities and challenges Bee Cheng Hiang might encounter in Myanmar, and offers insights into how the company can leverage its strengths to succeed in this new market. Ultimately, the case study aims to determine whether Myanmar is a promising market for Bee Cheng Hiang's expansion plans.

Case Analysis of Bee Cheng Hiang Expansion in Myanmar
1

Executive Summary
There is no doubt in the fact that a large number of companies today are spreading their
operations and procedures to different companies around the globe. The chief reason behind
such expansion is increased sales, productivity and profit levels. The expansion to new
regions offer companies additional growth prospects and a whole new marketplace to offer
their products and services. Likewise, this particular paper attempts to throw light upon a
known Singapore food chain i.e. Bee Cheng Hiang, which intends to expand its operations in
Myanmar. The paper examines the market and business environment of Myanmar by
employing several different analysis tools such as SWOT, PEST and Porters five forces
analysis. The paper basically attempts to evaluate if Myanmar market is suitable for brand
like Bee Cheng Hiang or not.
2

Contents
Overview of Bee Cheng Hiang...............................................................................................................4
Analysis of Myanmar Market.................................................................................................................6
SWOT analysis...................................................................................................................................6
Market Analysis.................................................................................................................................8
Competitors Analysis.......................................................................................................................10
Porter’s Five Forces Analysis............................................................................................................11
The PESTEL Framework...................................................................................................................13
Political............................................................................................................................................13
Economic Environment....................................................................................................................15
Analysis of Cultural Environment.....................................................................................................18
Entry Strategy..................................................................................................................................20
4P’s Marketing Mix..........................................................................................................................21
Conclusion...........................................................................................................................................27
References:..........................................................................................................................................28
3

Overview of Bee Cheng Hiang
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
4

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.
Analysis of Myanmar Market
SWOT analysis
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.
Strengths
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
5

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.
Weaknesses
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
6

medium level buyers are likely to show more interest towards buying Bee Cheng Hiang
products than the lower class.
Opportunities
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.
Threats
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
7

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.
Market Analysis
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-
8

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.
Competitors Analysis
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.
9

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 Analysis
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 of new entrants
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
10

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.
Bargaining power of suppliers
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.
Bargaining power of buyers
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.
Threat of substitutes
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
11

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.
Degree of industry rivalry
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.
The 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.
Political
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
12

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.
Economical
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
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).
Technological
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
13

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
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.
Legal
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.
Economic Environment
Income Distribution
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
14

Gross Domestic Product
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).
Fig. 1 GDP Growth (Source: Trading Economy, 2018)
Myanmar GDP Annual Growth Rate
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).
15

Fig. 2 GDP Growth (Source: Trading Economy, 2018)
Per Capita Income
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).
Fig. 3 Per Capita Income (Source: Trading Economy, 2018)
Currency Exchange
16

The currency prevalent within Myanmar is MMK (Countries and Their Culture, 2018).
Corruption
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.
Fig. 4 Corruption Level (Source: Trading Economy, 2018)
Tax
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.
17

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.
Analysis of Cultural Environment
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
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.
18

Religion
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 Culture
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.
Entry Strategy
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
19

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.
4P’s Marketing Mix
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. Product
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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.
Target market
Demographic
 Individuals belonging to the age group of 15-40 years, who are food lovers and are
always ready to test new food products.
Geographic
 Urban inhabitants and well-off families
Behavioural
 Support local communities and economies by purchasing products they hold trust in
as well as through which they are capable of making sure the origin or background of
the offered product.
 Huge number of customers within progressing marketplace of environmental, ethical
and sustainable food products.
Positioning
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
21

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.
Positioning attributes
Attribute Positioning
Taste and product focussed  Positioning Bee Cheng Hiang as
being taste and product focussed
could be highly beneficial for the
corporation.
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.
Perceptual Mapping for Bee Cheng Hiang
22

Place
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
23

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
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
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.
24

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.
25
Promotion
techniques of
Bee Cheng
Hiang in
Myanmar
Direct
marketing
Newspaper
and
magazines
adverts
Networking
sites
Public
relations
Personal
selling

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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