DOMINOS PIZZA

IN MYANMAR

James Rilley
Ron Lunsford
Ahmed Kamal

PRESENTATION AGENDA
DEPLOYING DOMINOS PIZZA IN MYANMAR

GENERAL ANALYSIS
COUNTRY ANALYSIS
INDUSTRY ANALASIS
MARKET OBJECTIVES
SWOT
PORTERS 5 FORCES MODEL
ETHICAL DILEMMAS
CSR STRATEGY
FEASIBILITY
CONCLUSION
QUESTIONS
REFERENCES

GENERAL ANALYSIS
OVERVIEW
WHY WE CHOSE DOMINOS
POSITIVES

International pizza delivery business

11,700 stores/75 locations
Very strong brand equity
Comprehensive Ethics/CSR
Proven success in Asia/Pacific (15 countries)
Soft competition/substitutes in Myanmar

GENERAL ANALYSIS
OVERVIEW
WHY WE CHOSE DOMINOS
NEGATIVES

Governmental Regulatory Issues

Demand? (Unknown)
Supply Chains
Low Profit Margins

GENERAL ANALYSIS
REQUIREMENTS
Franchise Business Model
Master Franchise.
Development is based on potential of market size benefits.

Sub-Franchise.
Master franchisers are able to sub-franchise within their market.

GENERAL ANALYSIS
CULTURE
Dominos Values vs.
Myanmar Culture?

COST
Will entry costs (dollar and
opportunity) impede or
enable?

GENERAL ANALYSIS
SUSTAINABILITY
Long term prospect

FEASIBILITY
To be determined!

Country analysis

DOMINOS HISTORY:
Domino's Pizza Inc. International franchise
pizza delivery .
Founded in 1960.
Second-largest pizza chain in the United
States.
Largest worldwide, over 12,000 stores in 70
countries.
9

DOMINOS HISTORY:
Dominick's Pizza began in Ypsilanti, Michigan.
Renamed to Domino's Pizza, Inc. in 1965.
First franchise store opened May, 1983.
First international store opened in Winnipeg,
Canada.
1998, sold 93% to Bain Capital Inc. for ~ $1
billion.
Went public in 2004 (DPZ).

10

COMPANY PROFILE:

Type:
Public
Traded as:
NYSE: DPZ
Industry: Restaurants
Founded:
Ypsilanti, Michigan on June 10, 1960
Headquarters: Domino Farms Office Park Ann Arbor Charter
Township, Michigan, United States
Area served: Worldwide
Key people:
Tom Monaghan, Founder J. Patrick Doyle, CEO
Products:
Italian-American cuisine, Pizza, pasta, chicken
wings, submarine sandwiches, wraps, desserts
Revenue:
Increase $1.802 billion USD (2013)
Slogan:
Get the door, it's Domino's
Website:
https://order.dominos.com/en/
Number of employees: 220,000 (Dec 2013)
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SHORT COUNTRY
PROFILE OF MYANMAR:
POPULATION:
53.26 million. (2013)
MAJOR RELIGIONS IN MYANMAR:
Buddhism 89%.
Christian 4%.
Muslims 4%.
Hindus 3%.
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ETHNIC ORIGINS IN MYANMAR

(Estimated)

13

AGE STRUCTURE:
(2014 est.)

0-14 years:
15-24 years:
25-54 years:
55-64 years:
65 years +:

26.4% (male 7.5M / female 7.2M)

18.3% (male 5.2M / female 5.0M)
43.1% (male 12.0M / female 12.0M)
7%
(male 1.8 / female 2.0M)
5.3%
(male 1.3M / female 1.7M)

14

AGE STRUCTURE:

15

DEPENDENCY RATIOS:
Total Dependency Ratio: 42.5 %
Youth Dependency Ratio: 35 %
Elderly Dependency Ratio: 7.6 %
Potential Support Ratio: 13.2 (2014 estimate)

16

MEDIAN AGE:
Total: 27.9 Years.

Male: 27.3 Years.

Female: 28.5 Years. (2014 Est.)

17

POPULATION GROWTH
RATE:
1.03% (2014 Est.)
BIRTH RATE:
18.65 Births/1,000 Population. (2014 Est.)
DEATH RATE:
8.01 deaths/1,000 population. (2014 Est.)
NET MIGRATION RATE:
-0.3 Migrant(S)/1,000 Population. (2014 Est.)

18

URBANIZATION:
Urban Population: 32.6% of Total Population.
(2011 Est.)

Rate of Urbanization: 2.49% Annual Rate of

Change. (2010-15 Est.)

19

MAJOR URBAN AREAS POPULATION:

YANGON 4.457 million.

MANDALAY 1.063 million.

NAY PYI DAW 1.06 million. (rapid growth)

20

INDUSTRY ANALYSIS:
Increasing disposable income, combined with
a large market and ongoing economic reform will
drive opportunities for food & drink companies in
Myanmar. In particular, the emergence of a
middle class will make the country increasingly
attractive for fast food chains. Myanmar is among
the next frontier markets for fast food companies,
By entering the Burmese market, fast food can
pursue its expansion strategy in emerging
markets. Fast food chains such as KFC are
capitalizing on a booming food & drink sector in
Myanmar.
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INDUSTRY ANALYSIS:
Strong opportunities will remain in the sector over the
next few years, as we forecast per capita food
consumption (in local currency terms) to grow at a
compound annual rate of 11.7% over 2013-2018. A
2013
study
from
the Boston
Consulting
Group estimates that less than 40% of Burmese
consumers frequent restaurants, leaving strong room
for growth in fast foods. However, it also highlights
the price sensitivity of most consumers which,
combined with the ongoing increase in real estate
prices in major cities since the reintegration of
Myanmar into the world economy, will be the main
obstacle for fast food chains.
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FOOD CONSUMPTION
GROWTH

23

NEXT UP

Handover to Ahmed.

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MARKET OBJECTIVES

Gain New Customers.

Build Customer Loyalty.
Increase in Fast Food Market Share.
Fulfill the Demand of the Customers.
Maintain the Competitive Edge of the
Innovations.
Increase Profitability and Growth.

SWOT ANALYSIS
Strengths.
Weaknesses.
Opportunities.
Threats.

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STRENGTHS

Home delivery service within 30 minutes.

Quick service at outlets.
Customer Satisfaction.
Low Price.
Provision of offers and discount coupons.
Largest worldwide pizza chain.
Fast delivery of services.
Large range of products.
Supply chain & distribution network.
Strong brand equity .
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WEAKNESSES
Leaning tower of pizza.
Menu not elaborated and modified as compared
to other chains.
Its ambiance is not up to its competitors.
No option for birthday parties and corporate.

Outlets lack space.

Minimally decorated outlets.
Franchise management.
High calorific value of food.

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OPPORTUNITIES
Growing presence in Myanmar market.
Leverage supply chain & distribution system to
introduce new products.
Gain stronger hold of online and mobile orders.
Introduce new toppings that are region specific.
Go after emerging markets.
Yet to foray into the restaurant business.

29

THREATS
Threat of competition in future.
Increasing awareness about health related
issues.
Intensive competition from fragmented number
of small competitors.
Increase in labor and food prices.
Franchise operations affected by currency
exchange fluctuations.
No take away counters.

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PORTERS 5 FORCES
MODEL

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PORTERS 5 FORCES
MODEL
BARGAINING POWER OF SUPPLIERS:

LOW
BARGAINING POWER OF CUSTOMERS:

LOW
THREATS OF NEW ENTRANTS:
HIGH
THREAT OF SUBSITUTES:
HIGH

COMPETITIVE RIVALRY WITHIN AN INDUSTRY:

LOW

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ETHICAL DILEMMAS CAN BE

FACED BY DONINOS IN
MYANMAR:
Fair Work, Fair Pay.

Decent Food Products.

Fast Food and Obesity.

33

DOMINOS CSR
Market opportunities:
Demand is high.
Customers are present.
Market has a strong potential.
A very strong need is also present as there is
no such type of chain.
Dominos has a huge ratio of success factor
present.

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DOMINOS VALUES AND

GUIDING PRINCIPLES
To deliver freshly made, quality pizza.
To drive reduction to carbon footprint by monitoring
energy, waste and emissions within the business and
setting targets accordingly.
To encourage career development and cater for the
wellbeing of employees.
To invest and give back to the communities in which
the business operates.
To demonstrate clear leadership, governance and
values by integrating our CSR plan into the strategic
Company mission.
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CSR Strategy of
Dominos

Food premium quality, great tasting,

innovative.
Environment reduce energy consumption,
reduce, recycle and reuse waste and reduce
emissions.
Employees happy staff, healthy staff,
engaged staff.
Delivering to the Community to care, to
share and to be at the heart of our local
communities.
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CSR Strategy

37

Food Delivering Great

Tasting Food
Nutrition.

Product Sourcing.

Working In
Partnership
With Our Suppliers.
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ENVIRONMENT
Driving Energy
Efficiency.
Delivering Smarter.
Striving For Zero
Waste To Landfill.

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A GREAT PLACE TO
WORK
Performance &
Development.

Attracting Talent.

Engagement &
Wellbeing.
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COMMUNITY MATTERS
Charitable Funding.

Supporting Education.

Creating Jobs.

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FEASIBILITY/
CONCLUSION

Government Regulatory.
Supply Chain.
Demand.
Venture Type.
Capital.
Funding.

FEASIBILITY/
CONCLUSION

Location.
Number of Store.
Projected Sales and Growth.

ANSWER
Can the Dominoes CSR work.

44

REFERENCES
http://
www.mckinsey.com/insights/asia-pacific/myanmars_mo
ment/
http://myanmar-responsiblebusiness.org
http://cpi.transparency.org/cpi2013/results/
https://
www.gov.uk/country-cover-policy-and-indicators#burm
a-myanmar
http://www.ukti.gov.uk/export/howwehelp/businessopport
unityalerts.html

THANK YOU!

ETHICS/CSR
Opposes illegal and unethical treatment of individuals, including acts of slavery or human
trafficking.
Standard agreement that requires its suppliers to comply with all applicable laws, which
includes labor laws.
Provides suppliers with a Code of Ethics that notifies of their obligation to comply with all
applicable laws and also provides avenues for reporting illegal or unethical behavior.
Conducts periodic assessments of suppliers and is determining whether to expand this
assessment to obtain information about its suppliers' activities related to the California
Transparency in Supply Chains Act of 2010.
Considering implementing requests for certification from its suppliers and audits of
suppliers.
Do not plan on any third party to perform any verifications or audits.
Evaluate whether training and/or changes in accountability standards and procedures for its
employees/contractors are appropriate.