Académique Documents
Professionnel Documents
Culture Documents
Acknowledgements
I would love to convey my gratitude and respect towards my business teacher, Mrs.
Samuya Pandey, for spending her precious time to guide me throughout the project.
I would like to thank the owner of the company Mr. Hla shwe, and the competitors of
the company Mr. Soe Lwin and Mr. Maung Chit without them my project wouldnt be
possible at all, they have spent their time to provide me with data during the
interview that are essential for completing the project.
I would also like to thank my mom to help me translate the questionnaire and
interview transcript into Burmese language. Finally, I would like to thanks the
customers who spent their time to help me fill the survey.
Hnin
Wit Ye Shwe
1 | Page
Table of contents
Acknowledgements
Executive Summary
3
The Research Proposal
4
Introduction
6
-
Methodology Employed
9
Research and Findings from Customers Survey and interviews
11
Analysis and discussions
i.
ii.
18
Pricing strategy
iii.
iv.
20
Promotion
Strategic Alliance
23
24
Conclusion
25
Bibliography
26
Appendices
27
2 | Page
I will be using an abbreviation for U.H.S Myanmar Company Ltd which will be
UHSMCL.
3 | Page
Executive Summary
4 | Page
Fishbone diagram
Pricing strategy
Promotion mix
Strategic Alliance
Methods to be used to collect and analyze data and the reason for
choosing them
Primary research,
A face to face interview with the owner of U.H.S Myanmar Company, Mr. Hla
Shwe and its competitors will be conducted to investigate problem they are
facing based on that the research question will be framed.
Secondary research
Secondary sources were used to find out about the market situation in
Myanmar for the housing and commercial market.
5 | Page
3. Anticipated difficulties:
To fix meeting with the competitors
To interview the competitors because
they keep on asking the reason behind
the data.
To get an unbiased customer survey
4. Action Plan
Activities
Date
22/6/15
23/6/15-30/6/15
6 | Page
1/7/15- 4/7/15
Modifications
1/7/15- 9/7/15
9/7/15-12/7/15
13/7/15-20/7/15
21/7/15- 27 /7/15
1/8/15- 15/8/15
1/8/15
11
14
16/8/15- 21/8/15
Writing
the
main
research
Editing the final draft
22/8/15- 22/9/15
30
21/2/16
Introduction
UHSMCL was established 5 years ago and it imports house decoration timber
products such as (e.g. laminate flooring, doors, plywood, ceiling sheets and so on)
from China, Malaysia, Korea and Vietnam to Myanmar.
The company imports high quality products from different countries so prices are
high but customers are not aware of the quality and price conscious customers can
get a substitute at a low price from competitors hence they prefer competitors
product even though it is low quality. U.H.S Myanmar Company doesnt want to
import low quality product and sell because it will affect their image hence, the
company loses their customers to competitors. The company sees this as a threat
for their business because it affects the profit of the company for long run and they
might have to shut down. So, this research focuses on how to attract more
customers in order to increase profit for the business.
Research question:
7 | Page
Figure (a)
Figure (b)
1 "Myanmar's 2012 Tourism Statistics: A Close Look at the Numbers - TigerMine Ventures."
TigerMine Ventures. http://www.tigermine.com/2013/01/20/myanmar-tourism-statistics/. N.p.
20 Jan. 2013. Web. 14 Aug. 2015.
8 | Page
By observing the graphs, the changes in the Myanmar economy is evident that
there exists an opportunity for companies like U.H.S Myanmar Export Import
Company which are selling Timber items as doors , flooring, and so on. Hence it is
the right time for UHSMCL to analyze the reasons for attracting more customers to
increase its sale in house decoration materials and hence increase its profitability.
Methodology employed
Primary research
1. A face to face interview will be conducted with the owner and the competitors
of the company to identify the main problem of the company. Face to face
interview will help UHSMCL to revise its marketing strategies; however, these
interviews are very difficult to arrange with the owner or competitors of
UHSMCL.4
3. Internet had been used to find out the market situation in Myanmar. Due to
non-availability of data on the internet on Timber companies in Myanmar or
timber industry in Myanmar I will try to extrapolate this data by studying the
housing and commercial market of Myanmar because if the demand of
housing and commercial is increasing it would also lead to an increase in
demand of timber products like doors, flooring, ceiling sheets etc.
4. Ishikawas Fish bone Diagram will be used to identify the root causes of the
UHSMCLs problems. However, the fish bone diagram model tends to be too
simple for some problems.6
5. Pricing strategy analysis will be used to evaluate which pricing strategy
UHSMCL is using, is it appropriate or should it be change.
6. Promotion can be used in UHSMCL to inform customers about timber products
but they tend to be extremely expensive. 7
7. Strategic alliance- UHSMCL can ties up with construction companies to enjoy
benefits.8
4 Hoang, Paul. Interviews In Business and Management, by Paul Hoang, Pg. 379,
Victoria: IBID Press, 2014.
5 Hoang, Paul. Surveys In Business and Management, by Paul Hoang, Pg. 376,
Victoria: IBID Press, 2014.
6 Hoang, Paul. Fishbone diagram In Business and Management, by Paul Hoang,
Pg. 98-99 Victoria: IBID Press, 2014.
7 Hoang, Paul. Promotion In Business and Management, by Paul Hoang, Pg. 415,
Victoria: IBID Press, 2014.
8 Hoang, Paul. Strategic Alliance In Business and Management, by Paul Hoang, Pg. 87,
Victoria: IBID Press, 2014.
10 | P a g e
Competitor 1
Sate tine kya
Competitor 2
SHWE DAUN
TAUNG Co.Ltd.
Product
Flooring
Laminate Flooring
Dont sell
Laminate Flooring
Price
165000
125000
Quality
(10ft * 10ft)
Polished
It doesnt get
spoiled easily, last
longed
Malaysia
(10ft*10ft) Not
Polished - Can get
scratches easily and
doesnt last long
Suppliers
China
Product
Door
Teak Door
Price
135000
20000-35000
Quality
Plastic
Suppliers
Product
Wood Flooring
Vietnam
Teak Parquet
Local distributors
Teak Parquet
Prices
250000-500000
150000-500000
Quality
Size
11 | P a g e
Size
Teak Door
65000
Second class Teak
door usually use for
construction
business
Local Distributors
Dont sell
Suppliers
Local distributors
The table below shows the comparison between UHSMCL and its
competitors main products, prices, quality and their supplier. All prices in
Kyats (1 USD = 13OO Kyats)
The products that customer like to buy from UHSMCL
35%
30%
25%
20%
15%
10%
5%
0%
Figure (1)
12 | P a g e
32%
32%
20%
8%
8%
36%
32%
20%
8%
4%
Figure (2)
Price
16%
8%
28%
Figure (3)
13 | P a g e
Quality
48%
Features of the
product
Trust the Company
38%
Price affect
62%
Figure (4)
UHSMCL must focus on offering a competitive price to attract customers.
The conditions that the consumer choose while buying a timber product
32%
68%
Figure (5)
It is also evidence from figure (3) and (4), we can see that price is the main factor which
affects the consumers purchasing decision. Thus, the UHSMCL should offer products at a
competitive price in order to attract customer.
14 | P a g e
Good service
12%
8%
16%
Good Quality
0%
64%
10%
20%
30%
40%
50%
60%
70%
Figure (6)
The reson behind conumers buying from the competitors of the UHSMCL.
Good service
13%
7%
Good quality
60%
20%
0% 10%20%30%40%50%60%70%
Figure (7)
Price is the main focus of the customers purchasing decision. Hence, In order for the
UHSMCL to win back its customers from the competitors they should lower their prices.
15 | P a g e
32%
Satsify
Not Satisfy
68%
Figure (8)
18%
12%
Customer Service
Price
Quality
71%
Figure (9)
16 | P a g e
48%
50%
40%
30%
20%
32%
20%
10%
0%
Figure (10)
Figure (10) shows that most of the consumers have been buying more than two years from
the UHSMCL which implies that they are the loyal customers of the UHSMCL. Only 20%
have been buying less than 1 year which implies that the UHSMCL is not attracting new
customers.
17 | P a g e
Poor Location
Cost
18 | P a g e
Discussion:
o
The green box shows that the prices UHSMCL is charging are very high
High prices are deterring many customers from buying timber products
of UHSMCL.
The blue box shows that UHSMCL is not tying up with construction companies
The company is selling high quality product, construction companies
will have better knowledge about high quality timber products than normal
customers .UHSMCL should use this opportunity and make a strategic alliance
with the construction companies.
19 | P a g e
Cost of
one
product
(Kyats)
16500
Teak Door
Teak
Parquet
Laminate
Flooring
20 | P a g e
Current
Price
(Kyats)
Quantity
Sold
(Monthly)
Total
cost
(Kyats)
Revenue
(Kyats)
Profit
(Kyats)
165000
60
990000
9900000
8910000
13500
135000
150
2025000
20250000
1822500
0
25000
250000
40
1000000
10000000
9000000
Product
Cost of
one
product
(Kyats)
New
Reduced
Prices
Laminate
Flooring
16500
135000
New
Quantit
y Sold
(Monthl
y)
150
New
Total
Cost
New
Revenu
e
New
Profit
2475000
2025000
0
17775000
Teak Door
13500
105000
300
4050000
3150000
0
27450000
Teak
Parquet
25000
220000
50
1250000
1100000
0
9750000
If UHSMCL lower its prices then we can see that the profit of the company increases
by selling more quantity. Hence, UHSMCL should lower its prices so that it can
attract more customers; increase its sale and profitability.
21 | P a g e
Option 2: Promotion
Although promotional activities are very important for UHSMCL but
they can also be extremely expensive and determining the optimum budget
and forecasting is important.
Produc
t
Laminat
e
Flooring
Cost of
one
produc
t
(Kyats
)
16500
Total
cost
(Kyats
)
Approxi
mate
Advertis
e-ment
Cost
Original
Price
New
Quantit
y Sold
(Monthl
y)
New
Revenu
e
New
Profit
2000000
Total
cost +
Advertis
e-ment
cost
(Kyats)
2990000
990000
165000
200
4950000
0
465100
00
Teak
Door
13500
202500
0
2000000
4025000
105000
400
6300000
0
589750
00
Teak
Parquet
25000
100000
0
2000000
3000000
250000
100
2500000
0
220000
00
22 | P a g e
Promotion Analysis
The main issue emerges from the research as well as from fishbone
diagram and pricing strategy that UHSMCL was not promoting. UHSMCL can
use promotion to promote high quality timber products. I would to suggest
them to use more of BTL then ATL because ATL is expensive for a small firm
like UHSMCL:
1. Television advertising - UHSMCL can use television advertising to promote
their USP which is high quality timber products imported from foreign
countries because many people around the world watch television and hence
television advertising can attract many customers. However, it is very costly
to broadcast.
2. Personal selling - UHSMCL can use door- to door sales, which means the
salesperson will visit customers house and promote the timber product. The
benefit would be building a strong relationship with their customers but sales
agents can be very expensive to hire.
3. Brochures are cheap and easy to make but go unnoticed.
4. Sales promotion - UHSMCL can use discount vouchers as they can sway
customers away from the rival brands. However price discount on a timber
product add to the marketing costs of a business.
5. Stands for fairs construction UHSMCL can have stands for their business
in construction fairs and constructors tends to have more knowledge about
the timber products so UHSMCL might attract more customers.
6. Social media- UHSMCL can use Facebook, to promote their high quality
timber product. However, they might not have control over what is written or
shared thus it will affect the image of the company.
23 | P a g e
24 | P a g e
Conclusion
According to Fishbone analysis, the major causes which need further
investigation for UHSMCL losing customers to competitors are no promotion,
not tying up with construction companies and the prices of the timber
products are very high. UHSMCL was using price skimming to recoup the cost
of importing timber products. Instead of using price skimming, UHSMCL
should use going rate pricing to match the prices with competitor which will
eventually increase the profit of UHSMCL. As a future course of action I would
like to recommend the company to use a lot of promotion. These are some of
the methods UHSMCL can use to promote its high quality products: Television
advertising, Personal selling, Brochures, Sales promotion, Stands for fairs
construction and Social media. The company should also to tie up with
construction companies because they have better knowledge of good quality
product and by tying up both the parties will gain benefit.
25 | P a g e
26 | P a g e
Appendices
Questionnaire for the consumers of U.H.S Myanmar Export Import
Company
1. What
1.
2.
3.
4.
House decor
Interview with Mr. Hla Shwe (Owner of U.H.S Myanmar Export Import Co.
Ltd)
28 | P a g e
customers can get a substitute at a low price from the competitors hence they
prefer the competitors product even though it is low quality. My company
doesnt want to import low quality product and sell because it will affect my
image hence, my company loses my customers to competitors. I see this as a
threat for my business because it affects the profit of the company for long run
and I might even have to shut down if I continue to lose customers.
5. What are the objectives of U.H.S Myanmar Export Import Co. Ltd?
My company objectives are to win back my customers from my competitors, to
increase the profit for my company, and to maintain a better image in the
market.
6. Do you wish to promote the timber product to win back your
customers?
Yes and I am ready to spend my budget for the cost of promotion in order to
attract customers from the competitors.
30 | P a g e
Interview with Mr. Soe Lwin (Owner of Sate tine kya) and competitor of
U.H.S Myanmar Export Import Co. Ltd.
1. What are the main products that you are selling?
The main products that I am selling are Wood lathe, PVC doors and Wood flooring.
2. What are the qualities of your product and their prices?
The PVC door prices are 20000-35000 dependent on the quality of plastic. The wood
lathe quality and prices 150015000 are depended on the size and the Wood
flooring (Parquet) quality is depended on the type of wood used for the parquet but
at my shop I only sell teak parquet so the quality and prices 150000-500000 are
depended only on the size.
3. Who are your suppliers?
Wood Lathe and Wood flooring are made in my own factory to market them but the
PVC plastic door I buy from the local distributors and then sell them to my
customers.
4. How do you provide customer service?
I give customer service by sending the timber products the customer bought to
their houses without charging the transportation cost.
5. What type of customer are you selling your products to?
I only sell to customers directly one-by-one and I dont sell to other firms.
6. In which type of market you are selling your products?
I only market in Yangon.
7. How many shops do you have?
I only have one shop but I have a factory where I use my own resources to produce
the timber products and market them.
8. What kind of promotion are you using?
According to me my business doesnt need promotion as it is only a small business.
31 | P a g e
Interview with Mr. Maung Chit (Owner of SHWE DAUN TAUNG Co. Ltd.) and
competitor of U.H.S Myanmar Export Import Co. Ltd.
1. What are the main products that you are selling?
The main products that I am selling are door, window, window frame and flooring
2. What are the qualities of your product and their prices?
The teak door quality that I am selling is second class teak it is usually used for the
construction businesses and the price for 1 door is 65000 and I sell window which
is made up of teak also and for 1 square feet the price is 3500 and the window
frame that I sell is made up of two different kinds of timber products and one of
them is made up of teak and the prices are 4*2 inches 1 feet 4000 kyats and 5*2
inches 1 feet 5500 and another window frame is made up of Pyin Ka Doe and the
prices are 4*2 inches 1 feet - 1400 and 5*2 inches 1 feet 1700. I also sell
laminate flooring Not Polished 10ft *10ft 135000.
3. Who are your suppliers?
Teak door, Teak window and window frame and also Pyin Ka Doe I buy from local
distributors and I sell them in my shop. Laminate flooring I import from China.
4. How do you provide customer service?
I give customer service to customer who buys laminate flooring by helping them
floored their house without charging transportation and labor cost. We give 10000
kyats discount for laminate flooring (10ft * 10 ft.) for the customers from rural
areas.
5. What type of customer are you selling your products to?
I sell to customers directly I get from customers from rural areas as well and I also
sell to businesses.
6. In which type of market you are selling your products?
I sell timber product to whole of Myanmar.
7. How many shops they have?
I owned a company from which I import laminate flooring from china and I owned 2
shops where I market all the products.
32 | P a g e
33 | P a g e