Project Report

On

Business Opportunity In Myanmar

By

Aarti Singh [11541]

Shivprakash Singh Baghel [ 11550 ]
Falguni Mahera [11570]
Ankit Sharma [11584]

Submitted to
Dr. Jay Desai

Batch: 2015-17

B.K. School of Business Management

Gujarat University
Ahmedabad, Gujarat-380009
2017
BUSINESS POTENTIAL IN MYANMAR

Myanmar is a highly unusual but promising prospect for businesses and investorsan
underdeveloped economy with many advantages, in the heart of the worlds fastest-growing
region. Home to 60 million inhabitants (46 million of working age), this Asian nation has abundant
natural resources and is close to a market of half a billion people. And the countrys early stage of
economic development gives it a greenfield advantage: an opportunity to build a fit for
purpose economy to suit the modern world.

Only a diversified economy can double its labor productivity; relying exclusively on energy and
mining would not suffice. All the fundamentalspolitical and macroeconomic stability, the rule of
law, enablers such as skills and infrastructuremust be in place. The report also finds that four
areas, which have thus far received little attention, could underpin growth and productivity.

1. Harnessing digital technology:

Myanmar is beginning its economic-development journey in the digital age, when mobile
and Internet technology are increasingly affordable. Harnessing these tools to the fullest
could help the country leapfrog to a more advanced stage of development, but that would
call for an aggressive telecommunications-infrastructure plan.

2. Supporting a structural shift toward manufacturing:

While other emerging economies have experienced a structural shift away from
agriculture toward manufacturing, Myanmars reliance on agriculture has increased.
Today, the countrys manufacturing sector is small in absolute termsless than half the
size of Vietnamsbut it has the potential to be Myanmars largest by 2030.

3. Preparing for urbanization:

The vast majority of Myanmars citizens live in rural areas, but this is likely to change
rapidly. The share of the population in large cities could double, from just 13 percent today
to around 25 percent in 2030an additional ten million people, or two cities the size of
Yangon. Myanmar would benefit from preparing for this change through investment,
planning, and a shift to local governance.

4. Connecting to the world:

Myanmar must consider the best way of reconnecting to the global economy through
investment, trade, and flows of people. The nation potentially needs more than $170 billion
of foreign capital to meet its overall investment requirement of $650 billion and should
develop a targeted strategy to attract it. Trade volumes are not only low but also
undiversified, and Myanmar could expand its trade opportunities and increase population
flows to encourage knowledge transfers, the building of skills, and expanded tourism.

To implement that agenda, Myanmars government is likely to require more capacity and may
consider setting up a delivery unit dedicated to solving problems and driving the implementation
of change. The nations businesses could consider their opportunities in different markets, quickly
reach international quality standards, and explore foreign partnerships. International companies
must move fast, be prepared to commit to Myanmar for the long term, and consider partnerships
with local firms.

INTRODUCTION OF SOFT INDUSTRY IN MYANMAR

The numbers of consumers are growing in Myanmar. Moreover, consumers are not limited
only to local people but foreign visitors also. In 2016 more than 4.5 million visitors landed in
Myanmar Airport.

Three major companies producing and distributing soft drinks in Myanmar:

Myanmar Golden star Co. Ltd

Pinya Manufacturing Co. Ltd
Loi Hein Co. Ltd
SWOT ANALYSIS

Strength:

The cost of living in Myanmar is low

Myanmar has growing number of consumers for soft drink

The law and Policy are encourage the fruit and other agriculture

Development of Retail and Wholesale market

Government give subsidies for agriculture business

Myanmar has lots of land for growing crop and fruit

Weaknesses:

Myanmars small population limits its market size

High taxation policy for foreign marketers

Very long process for ISO certificate

Garbage and Environment problems

Opportunities:

Renewable Resources

Renewable Technology

Corporate Social Responsibility initiatives

Well establish market niche

Threats:

Difficult to compete with other local soft drink companies

High level of cost

Local customers are more preferred local soft drinks brand

Follow well establish corporate ethics and workplace right policy

 Threats for change of rules and regulation because of changing Ministry of Industry

PESTEL ANALYSIS

Political:

New political party change new set of rules and regulation for the marketers. Resident
companies corporate tax rate is 10% and non-Resident companies corporate tax rate
is 40%.

All the soft drink manufacturers are under the control of Food and Drug
Administration (FDA).

Economic:

50% income tax relief on revenue from products sold overseas for the next five years.

The government provides insurance against political risk for both domestic and
foreign firms which positively affect international business.

Social:

Myanmar is socially very adoptable and every person or business group will
effortlessly will be able to adopt the culture of Myanmar and establish a new business
venture in Myanmar.

Social media outlets (i.e. Facebook, Twitter,) keep consumers directly connected to
the brand.

Their life style and trend are encourage to consume the soft drink products.

Technology:

New tech advancement in manufacturing and quality improvement concepts are

improving bottling operations efficiency.

Advance Packaging Technology in Myanmar increase the utility of employees and

capital, which increases productivity.

Environment:

Myanmars hottest climate helps to selling cool soft drink products.

LEGAL:

The legal and judicial system is corrupt to the core and in no state of protecting the
citizens and foreign investors. They have been bribed in the past by the military to
 feed their core interests and hence the whole institution has lost its credibility and
soundness.

Myanmars new government has to make sure that it take steps and make policies that
are necessary to win back everyones trust.
Business Plan

General Plan:

Company Name Naturals Private Limited

Naturals Companys Products

Fresh Orange

Fresh Mango

Fresh Masala Soda

Fresh Lemon

Fresh Lime

Target Customers

Wholesaler

Mall

Multiplex

General public

Retail shop

Pricing Strategy (1 IND RS = 20.57 Myanmar Kyats)

Distribution Price of 200 ml Price of 600 ml Price of 1

Channel Members (Rs.) (Rs.) ltr.(Rs.)

Wholesaler 8 14 19

Multiplex/Mall 8 14 19

Retailer 9 16 21

Customer 10 18 25
Raw Material Supplier

Purchase Fruits from Farmers

Purchase Sugar from Sugar Producers

Purchase raw material of Glass

Marketing Plan:

We are Introduce our products to public and give product awareness for using Advertising
media.

Advertising Media:

Television advertisement

Banner

Hoardings

Display of Purchase

Human resource

The human resource agency will be contacted for hiring employees

For employees that need to be hired on temporary basis a contract company supplying
human resource will be contacted

Do campus interview for recruiting employee