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Presented By: Advance Myanmar Group


Marke&ng Plan as of July 2012

Advance Myanmar Group


AMG aims to be a leading distributor of quality food and beverage & lifestyle products in Myanmar as well as a leading restaurant operator. AMG is in alia@on with Water and Wine, an interna@onal distribu@on company. Our distribu@on oces include Hong Kong, Singapore, and Thailand. Our porIolio includes wines from France, Italy, Spain, USA, Australia, New Zealand, Chile and Argen@na. Besides wines, we are also the importer for premium waters, namely Chateldon and Thonon from France, Italy, Denmark and UK. We are also the importer for premium glassware such as Riedel and Spiegelau. AMG is the sister company of Infohost Pte Ltd (www.igroupnet.com) which is owned by Mr. Pote Lee. He is Burmese by birth and had graduated in Myanmar before moving on to Thailand to do his Masters in water resource. Infohost employs about 600 stas with oces around the world with an annual turnover of about US$100 million.

Myanmar: An Overview

The Basics

Popula@on: 54,584,650 (July 2012 est.) Ocial Language: Burmese Division: 7 Regions, 7 States Capital: Nay Pyi Taw Major City: Yangon Monetary Unit: 865 Kyats is approximately 1 USD (28 Jun 12) Major exports: Teak, pulses and beans, prawns, sh, rice, opiates, oil and gas

The Poli9cs

President Thein Sein The recent victory of Aung San Suu Kyis poli@cal party signies the country movement toward democracy opening doors to foreign investments In 2012: US eased their sanc@ons while the EU lihed all non- military sanc@ons Major foreign investors: China, India and South Korean

Source: h9ps://www.cia.gov and h9p://www.bbc.co.uk/news/world-asia-pacic-12992883

+ Myanmar: The Opportunity



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Foreign Investments

Myanmar is a country that is rich in natural resources such as petroleum, @mber, @n, copper, marble, limestone, natural gas and hydropower.
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Since the country was closed for a long @me, these resources were underexploited. Hence, large foreign investment can be expected now that the country is open for interna@onal businesses. The Asian Economics Community (AEC) in 2015 will also lead the country to many more opportuni@es: Increase in number of expats increase in employment higher purchasing power and growing middle upper class higher recogni@on and demand for interna@onal brands and quality products

Myanmar: The Opportunity Tourism


Burma's wealth of Buddhist temples has boosted the increasingly important tourism industry, which is the most obvious area for any future foreign investment.1 -- BBC
h9p://www.bbc.co.uk/news/world-asia-pacic-12990563

Increasing Number of Hotels and Tourists 2008-2011


740 720 700 680 660 640 620 600 580 560 2008 2009 Tourist Arrivals 2010 Hotels 2011 840 People (thousands) 820 800 780 760 740 720 700 680

Rooms

The growing tourism industry means higher demand for interna@onally excepted service standard and quality products. Tourists will also look for brands and standards that they are familiar with to ensure quality. Increasing number of 4-5 stars hotels and ne dining restaurants shows that there is higher demand for quality lifestyle.

h9p://www.myanmartourism.org/journals/Tourism%20Sta&s&cs%202011.pdf

The Coee Market


Our market study in Yangon shows that coee is part of the Burmese peoples daily life explained by the various coee caf inside the malls, stand-alone coee shops, expansive coee menu and supermarket shelves occupancy. Briey, we can segment the coee market by product types: Instant 3 in 1 coee: supermarket most popular among the mass people hence the price. The most popular brand is Nescafe. Coee beans: used in caf and restaurants, also available in supermarket Coee capsule: not widely use but presence in high-end supermarket and specialty caf By brand posi&oning and product nature, we would only analyze the coee beans and coee capsule market for Segafredo.

+ The Compe@@on: Coee Beans and Coee Capsule


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Exis9ng players
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Illy (Italian) n currently used by an Italian restaurant the distributor n beans, pods, capsules and capsule machine are available in CityMart (high-end supermarket) Lavazza (Italian) most ac9ve n Presence in some airport Aroma (Thai) Zicae (Italian) Highland (Vietnam) n Available in supermarket Local coee n Such as Ananda beans sold in its own caf and Yangon airport Nespresso n No ocial distributor just being used in a famous specialty store

Prices

Illy (as seen in MarketPlace)


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Coee Capsule: 14 Euro for a can of 21 capsules Capsule machine with milk frother: 400 Euro Ground coee: 15 Euro for a 250 gram can

Coee Market: The Opportunity


To further analyze the market, we can segment the customers into 2 segments: HORECA and retail customers
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During our visits to hotels and restaurants, we observed that no brands are fully ac@ve in selling to these channels. These places are s@ll using unbranded local coee and lack professional training in making good coee. As for retail customers, coee capsule is not widely popular. This might be because of price and accessibility since we only saw Illy machine being distributed in a single supermarket with no ac@ve promo@ons or educa@on for the consumers.

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SWOT Analysis
Weakness
S@ll need to educate local maket to dieren@ate quality coee compared to average ones Price compared to local brands

Strength
Good connec@ons with poten@al customers (retailers, HORECA, and upperclass customers) Can use Water Library as endorser Quality products and varie@es

Opportunity
Growing numbers of expats and tourists Growing number of HORECA and foreign oces

Threat
Exis@ng players with similar posi@oning: Illy and Lavazza

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The Plan

Our Strategy
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Target:
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Upper middle upper income customers (including expats) 4+ stars HORECA

Posi@oning
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Segafredo in Myanmar aims to be the number one premium Italian coee brand that oer quality products, reasonable pricing and promo@on, as well as great service which include training and maintenance to all our customers.

Product & Tenta@ve Plan


We will launch both the ground coee + SM machines & SZ Coee system products at the same &me (once we are ready with a well trained barista and a technician)
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Ground Coee
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Once we have a barista, we will start selling, targe@ng ones with exis@ng espresso machine to switch to our beans Main target: HORECA & Oces with exis@ng machines

SM Machines
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Once we have a barista and a technician we will start selling- as a package with ground coee Main target: HORECA who really wants semiautoma@c machines
n Coee System
nWe will start selling this at the same @me as ground coee and

will use coee system as the main product for adver@sement nMain target: HORECA, oces, retail customers
n Segafredo Franchise

nThis will be done at later stage, once the brand is well recognized

and once there is signicant increase in number of tourists and expats (Maybe with the happening of AEC in 2015)

Places and Prospects


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HORECA n Hotels: We will begin with ci@es with the highest number of 4+ stars hotels such as Yangon, Bagan and Mandalay
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Restaurants: Upper-casual ne dining, star@ng in Yangon: Water library Caf: specialty coee caf with upper- middle to premium price range: Sharkys

Retail Customers Distribu@on through high end supermarket such as MarketPlace, specialty store such as Sharkys Direct sale by our sale team

Campaigns & Adver@sement


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Launch event at a happening and exclusive place poten@ally at Water Library with celebri@es and respected people in the society Pre-order to create buzz and premium image Fes@ve booth in MarketPlace
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Light fes@val (Late October) Christmas and New Year (December) Valen@nes (February)

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Invite columnists to feature Segafredo in their magazine Encourage or provide HORECA with menu that features Segafredo logo

Pricing, Special Package & Goal

Retail minus 20% from MarktPlace One Espresso Capsule Machine with frother 250 gram ground coffee 0.66 319.00 11.95

Tentative for Segafredo 0.46 222.00 7.35

*this price is not nal. It s&ll needs to take into account other compe&tors as well as other costs including adver&sing, promo&on and sta

Thank You

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