IMKT Assessment: Marketing Plan for Auntie Anne's Franchise in Myanmar

This report presents a detailed marketing plan for franchising Auntie Anne's in Myanmar. It begins with an introduction to the brand's history and menu, followed by an external environmental analysis, including a risk assessment of the local market. The report addresses potential risks associated with international franchising and proposes solving methods, including the use of quantitative analysis. It also examines the impact of local laws on the marketing mix, covering product, price, distribution, and promotion strategies. A competitor analysis is conducted, assessing market size and key competitors like Breaktalk and Crispy Crème. The report then delves into market segmentation based on age group, income level, occupation, and social group. The selection of market entry methods, such as exporting and franchising, is discussed, with a focus on the franchising model. The report also includes information on training, obligations, restrictions, and financial assistance related to the Auntie Anne's franchise. The overall aim is to provide a strategic roadmap for successfully launching and managing the Auntie Anne's brand in the Myanmar market.

Higher Diploma in Business
Assessment Kit
INTERNATIONAL MARKETING (IMKT)
August 2019
MODULE TITLE: INTERNATIONAL MARKETING -
(IMKT)
ASSESSMENT KIT CONTENTS:
Marketing Plan - Individual work
Executive Summary
1 | P a g e

When you summarized about franchising Auntie Anne’s in our country, make sure to know
about history and market size of that brand initiated country. Also as a second part, need to know
about risk and impact of the marketing because this is the best way to beat up competitors of the
local similar food chain brand and can be more focused on marking and pricing of the franchised
product.
Table of Contents
1. INTRODUCTION 4
2 | P a g e

1.1 History 4
1.2 Menu 4
2. External Environmental Analysis 5
2.1 Risk 5
2.2 Solving Methods 6
2.3 Impact of law according to the marketing……………………………………………………..7
3. Competitors Analysis………………………………………………………8
3.1 Market size……………………………………………………………………………8
3.2 Competitors………………………………………………………………………….9
4. Market Segmentation and Target Marketing…………………………..10
5. Selection of Market……………………………………………………….11
6. International Marketing Style……………………………………………………12
7. Conclusion…………………………………………………………………………….13
8. References……………………………………………………………………………..14
1. INTRODUCTION
3 | P a g e

1.1 History
First of all, Auntie Annie is a freshly baked pretzel since 1988, and it was founded by Anne F. at
Downingtown, Pennsylvania, United States and it is 31 years old already now. The background
of this company is simple and it started with a couple mechanic (Jonas) and a single housewife
(Annie). This couple started with of business with $6,000 and according to their location while
others stores are investing around 25,000 to 200.000 a year.
Before they have expansion into several Asian countries, rolled into airports and train stations,
Key of Auntie Annie is working steadily through the malls of America in the mid-1990s. The
branch had 344 stores at the end of 1995 and dominated competitors such as Pretzel Time and
Gretel’s Pretzels. In the mid of 2000, the company was reached into Thailand, Singapore,
Indonesia, the Philippines, and Malaysia and so on.
1.2 Menu
Under Auntie Annie’s, there has to be soft pretzels, pretzel nuggets, pretzels dogs and Dip. From
the list, two products of the taste, will suitable with local are Cinnamon Sugar Pretzels and Mini
Pretzel Dogs.
1) Mini Pretzel Dogs - This is the one which bundled up one at a time and
baked fresh every time menu which can be eat a piece by a bite.
2) Cinnamon Sugar Pretzel - which is a soft cinnamon sugar, will satisfy any
spirits, sweet sugar and handed right over.
When franchising a food brand, we have to take care not only for the menu but also the regional
and foreign laws, risks, place, time, budgets, and so on.
2. External Environmental Analysis
4 | P a g e

2.1 Risk
For franchising of international brand to our country (Myanmar) is not as easy the way as we
though. For example, if doing partnership with oversea company, we have to make an
assessment on the political risk as in our country and the principal size. There are four kinds of
risk that we should take care of it:
1) General instability risk- internal and external threats to the government, it means
that we need to negotiate rule of opening shop under our country and the
principal side.
2) Ownership risk- this refers to the risk to property and the lives of the untouchable
employees, it means that company has to take care of the places and
responsibility of the workers.
3) Operating risk- this refers to the disturbance and nosiness in the firm’s
operations, means owner has to be aware of the things that comes out when
operating the process.
4) Transfer risk- this is the process of moving funds between countries or back
home, for example, repatriation of profits, wealth and payments. (Jain,1996)
2.2 Solving Methods
However, the following are the ways that we can solve for the above assessments:
1) The grand Tour
2) The old hand
3) The Delphi technique
4) Quantitative
According from these, quantitative method is the best way to solve because the competitors’ food
franchising companies (KFC, break talk, lotteria etc..) which will describe at 4.3 are also solving of them
with this method. The meaning of the quantitative method involves gathering different types of data and
5 | P a g e

expert clarification to develop a mathematical relationship between a series of factors. This relationship
used to predict the likelihood of certain events.
2.3 Impact of law according to the marketing
If you want to take branching of popular brand of food into our country, should take care of the impact of
the products because this law applying to the marketing mix. In the law, there are four main impacts,
which will show below;
1) Product
This is the most important and make sure to care for all of the food product owner because this law
usually cover the physical and chemical features of the product. For the food products especially ready to
eat or fast food like Auntie Annie must be taking care of this law, most of the menus are based on bread
include yeast and other ingredients and need to clean when packaging food whatever customers will eat
right after came out from oven or not.
2) Price
For the pricing of the food brand in local, however the food is franchise from oversea, price of the market
should be relevant with our country. Sometimes direct pricing is more expensive than local market price
(according to the ingredients and taxes), should negotiate with local. The national health laws and
government price controls can be also effect on the prices that may be charged in a oversea market.
3) Distribution
Of course, this fact is must also be the priority of the company because distribution channels (online,
offline shops, door to door delivery system and etc…) and distribution techniques may have differences
according to the law firm. For example, online distribution in our country have brand authorization of
official from principal side because of the trust of the customers.
4) Promotion
The promotion of the food marketing need to be attract to the customers and not to deviate customers to
the dangerous food that they are consuming is the key fact.
6 | P a g e

3. Competitors Analysis
3.1 Market size
Before we should talk about market targeting and international marketing strategy, learning of
global market size of pretzels and competitors. The global market for pretzels is expected to
reach a value of $491.30 million by 2024, registering of 2.7% over the expected period
(Forecast).
Germany is reflected the birthplace of the pretzel. Hard pretzels sell more than soft pretzels as it
has longer lifespan with the rise of the craft beer movement, pretzel craft stores are opening up to
give customers the opportunity to pair beers with pretzels. The increase in the number of diabetes
populations is one of the main reasons for the growth of the pretzel market. Pretzel is considered
a healthier snack and is consumed mainly by health conscious customers. The growth in snack
and is an important driver of the market. In the US, a large percentage of the population
consumes pretzel at least once a day (Forecast).
3.2 Competitors
“Pretzels INC and Fritolay” are the competitors brand in US, but in Myanmar there is no same
products of pretzels selling companies. Whether, it has competitors like “Breaktalk and Crispy
Crème”, whose are the most popular and franchised brand recently.
7 | P a g e

4. Market Segmentation and Target Marketing
4.1 Market Segmentation
When do you want to distribute your brand in the market, you should know which kind of
segmentation will go to market. For example, for this food brand, we should segment according
to the age group, income level, Social group and Occupation.
4.1.1 Age Group
For the sake of this food brand, sure that people over 50 will not consumes because this types of
pretzels were attracted age between 12 to 50 because when people are over 50, they would
definitely care about diseases of the health such as diabetes, cancer and etc…. When you
penetrate into market, you should avoid these kind of aged people.
4.1.2 Income Level
Customers money incoming level is also need to taking care of when you do marketing of this
food brand. When we calculate of one pretzel will cost around 2600mmks, and most of the low
income level people cannot earn to use to consume this food. So that we need to focus our
market according to the level of the income by customers.
4.1.3 Occupation
Right after the income level, we should be taking care of the place to open store according to the
place that are crowded with middle income money value consumers.
4.1.4 Social Group
The last not the least method, social group is also effecting on marketing because when you care
of one customer, who is really good at social influencing, there will be a lot regular customers
8 | P a g e

will come according to the recommend of that person. So that, you don’t need to wasting time by
making market with flyers or calling customers in front of the shop.
5. Selection of Market
When you are working with international brand, you should select the most minimum risk of
entering market such as like Exporting and Franchising.
5.1 Exporting
This is the best method for low risk because this is low cost but low entry method that Japan was
used into USA market in the 1960s. When you use this method, in this business, just do
exporting with the ingredient and the others products can be used by local market price
5.2 Franchising
This method is using wisely in Myanmar not only in food industry but also in other franchising
fashion and other brands. In this method the franchisor will get academic fee as in return
according to the agreements. Sometimes, the principal side (client) also describe brand name,
marketing technique and business system and even food menu, that are relevant according to the
franchised country. The franchisor should only be taking care about the market size and logistic
of the local country.
Preparing Overview: For the primary shop, the franchisor requires that the franchisee sends at
least three people to introductory preparing. All preparation participants must be beyond 18 years
old. These people going to the preparation should effectively finish all periods of the preparation
program. Franchisees and their underlying store manager(s) must visit and effectively complete
the preparation program before the opening of the shop. Introductory Training will cover
numerous parts of the activity of the shop including budgetary controls, sanitation and support
strategies, showcasing and promoting systems, administration and operational methods,
nourishment arrangement, acclimation with plans and cooking methodology, organization of
work and upkeep of value measures, as the franchisor considers vital and suitable. The program
9 | P a g e

will be led at the franchisor's Support Center in Lancaster, Pennsylvania or different areas
approved by the franchisor, now and again. To encourage the opening of the shop, the franchisor
will send at least one of its agents to the shop, at the franchisor's cost, for at least two days
simultaneous with starting tasks. The franchisor may require, or franchisees may ask for, on
location preparing whenever. The franchisor may intermittently direct a meeting, show, program,
or extra instructional course.
Obligation and Restrictions: If the franchisee is an individual, the person should either fill in as
or give an administrator. A substance franchisee must assign a director, who may likewise be the
Primary Contact. The chief, who will have everyday administration obligation regarding the
shop, will practice on-premises supervision and by and by take an interest in the immediate
activity of the shop. Franchisees are required to go to all booked Auntie Anne's territorial and
framework wide corporate occasions that the franchisor expects of all franchisees in the
framework. Franchisees may offer in the shop to clients just the Approved Products that the
franchisor has affirmed recorded as a hard copy. Franchisees may not deliver or offer any items
(I) that the franchisor doesn't approve franchisees to create or sell or (ii) that the franchisor
coordinates franchisees not to create or sell.
Financial Assistance: The franchisor doesn't offer financing for exchange installations, opening
stock, or some other reason. The franchisor may allude franchisees to renting or financing
organizations not associated with it. As of now, the franchisor doesn't ensure a franchisee's note,
rent or commitment. The franchisor may draw in a counsel who will give counseling
administrations to franchisees to help them with verifying financing, and the franchisor may pay
the counselor for this help to franchisees. The franchisor won't be in charge of the advisor's
arrangement of administrations to franchisees and if franchisees utilize the specialist, they should
sign the expert's type of understanding. Aunt Anne's likewise takes part in the Small Business
Administration (SBA) Franchise Registry Program. The franchisor may alter the Franchise
Agreement, if fundamental, to conform to SBA necessities for franchisees to take an interest in
certain SBA credit programs.
10 | P a g e

6. International Marketing Style
When you franchise a brand or branding, also need to care about packaging and labelling. After
this, pricing is also one of the important thing in basic structure of the product.
6.1 Pricing
When you discussing tagging label to food, should thinking about whether we should tag
according to the currency raise and decrease or whether should label according the range of the
local ingredients. But food like Auntie Annie should label half by half because some of the
ingredients like flour, machine and etc… need to order form foreign and employee and others
can be use local. Such this kind is little bit high measurement of the risk management according
to the dollar market.
6.2 Promotion
When you promote your product, advertising is the major criteria, which mean that showing
advantage of your products by promoting videos on TV or public transport. In additionally, there
are door to door delivery system company, e-commerce and online marketing, which are now
come out and famous nowadays. Most of the customers are using some apps to order foods
instead of coming out from home and eat at shop because there are lot of traffic in Yangon.
6.3 Distribution
For the distribution, this type of food company can only choose import agent to direct customers
because these types of foods cannot last for long days. Customers need to eat within an hour if
not pretzels will get hard, that’s why we cannot pack this and seller from retailer to customers.
11 | P a g e

Quiet, Auntie Anne's offers an important exercise in drawing in purchasers on the web – the
organization the two prizes positive remarks and reacts to negative ones. When one social
supporter tweeted about Auntie Anne's "going downhill" in the wake of being offered to an
Atlanta-based business, the organization answered to the tweet: "Disclose to me more. I need to
facilitate any worries u may have." It was then ready to address her questions about quality
consistency by portraying the extra assets the organization picked up in the deal.
Organizations can accept this fruitful trade as a token of 360i's ongoing examination that Brafton
detailed uncovered Twitter clients need somewhat more discussion from brands they pursue.
Likewise, by transforming pessimistic remarks into a chance to draw in Facebook and Twitter
devotees, brands may increase far-fetched brand advocates from naysayers who welcome the
individual consideration from brands.
Prominently, exchange open to both negative and positive remarks is the main factor in whether
shoppers trust organizations on social destinations, as per an Invoke overview handed-off by
eMarketer.
7. Conclusion
Myanmar is set to be the most recent expansion for the American delicate pretzel establishment.
Aunt Anne's has 1,800 outlets crosswise over 30 nations and has built up a solid nearness in the
ASEAN area, including Thailand, Philippines, Cambodia, Indonesia, Malaysia, Vietnam, Laos
and Singapore.
Regardless of the administration's frustrating treatment of the economy and falling financial
specialist certainty, ongoing years have seen worldwide brands coming in and extending their
12 | P a g e