Contents

CASE I. THE PROBLEM OF DECLINING SALES RATES IN

COMPETITIVE MARKET FOR THE FUTURE COMPANY 2

1.1 Introduction 3

1.2 Background History of Organization 3

1.3 Current Situation 5

1.4 Discussion Question 6

CASE II. EMPLOYEE TURNOVER ISSUE IN SKY HOTEL 7

2.1 Introduction 8

2.2 Company Profile 8

2.3 Services in Sky Hotel 9

2.4 Current Situation 10

2.5 Discussion Question 13

CASE III - DISTRIBUTION PROBLEM OF MYANMAR LION COMPANY 14

3.1 Introduction 15

3.2 Company Profile Current Situation 15

3.3 Marketing Activity of Myanmar Lion 16

3.4 Case 18

3.5 Discussion Question 21

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CASE I. The Problem of Declining Sales rates in Competitive
Market For the Future Company

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 The Problem of Declining Sales Rates in Competitive Market

For the Future Company

1.1 Introduction
Myanmar has been developing in its each business sector after establishing the
Market Oriented Economics. Myanmar’s GDP is forecast to expand by 7.7% in FY
2017/18 and 8% in FY 2018/19 on the back of improved global commodity prices and
stronger demand from trading partners. As a result of improvement in business, there
are so many private hospitals, hotels, supermarkets, condominiums, complex, high-
rise buildings. The downtown area of Yangon is a place where the high-rise buildings
are being built. So the vertical transportation such as elevator, escalator, moving walk
become the need of market improvement. Being a developing country, this vertical
transportation is highly needed for the high building in Myanmar. Thus Future
Company strongly believes that the demand of elevators is increasing nowadays. To
take advantage of the very small industry of elevator in Myanmar, and of great
potentials of the market, Future Company decided to set up a hundred percent owned
subsidiary company in Myanmar.

1.2 Background History of Organization

The Future Company is founded in 1991 selling, installing, servicing and
maintaining elevator. It started to sell the elevators branded with Fuji made in China.
The company implementing the selling, new installing, servicing and maintain the
elevators. 70 elevators were purchased by the customer, gaining 24-houre stand by
Service and call back center, responses time to caller for emergency less 30 minutes
regardless of distance and time to call, corrective action if it is necessary contract
from the company. To meet the customer’s satisfaction, the company employs the
technicians and consultants who are specialized in mechanical and electrical
engineering’s. Trainings are also provided by Future Company by the expert
engineers from China to retain more qualified technicians and engineers in the
company.

Mission of Future Company

The company aims to make people’s journeys safe, convenient and reliable.
Our vision is to deliver the best customer’s experience, by providing Ease,

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Effectiveness and Experiences to users and customers over the full life-cycle of the
buildings. Our strategy guides us towards our vision.

Likewise, Future Company aims to be progressive organizations with

professional employees providing reliable safe and efficient managing, marketing and
services.

Market Coverage of Future Company

The total demand of elevator in Yangon is 70 % of the whole Myanmar

country. Tier2 cities which are in second place of demand are Mandalay and
Naypyitaw. To implement to work efficient and rapidly, the company mainly focus in
Yangon area. Future Company also serves a few customers in other towns where
some of the business sectors are developed significantly.

Target Customer of Future Company

The company has segmented its customers in 3 types. They are from the areas
of governmental department, construction sites and the wealthy owners of some high
rise or luxurious buildings. Many of the customers of the company are either from the
area of construction or its related networks and also include the affordable owners of
the high buildings. Target customers of Future Company are show in Table (1.1).

Table (1.1): Target Customers of Future Company

No. Customer Percentage

1. Governmental department 10%
2. Construction Sites 70%
3. The wealthy owners of some building 20%
4. Total 100%
Source: Future Company Limited

Marketing Function

Marketing & Communications Manager is responsible to plan and execute the

business marketing communications strategy with a priority focus on client
management efforts during the Future Company. The Marketing Communications
Manager also has to ensure that customer-facing material is consistent with corporate
strategies, product messaging and corporate brand standards and measures.

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Essential Functions

 Manage customer satisfaction studies through client management responsibly.

 Develop and administrate internal communications campaigns to support
change management, training and other important news.
 Manage outside creative resources to ensure the efforts and resources are
utilized in a manner that provides the greatest return to the organization.
 Reliable after sales service and efficient project management for elevator
installation.

The following is the Table (1.2) which shows the number of elevators yearly sold
by the company.

Table (1.2): The Number of Elevators Yearly Sold by the Company

No. Year No. of elevator

1. 2014-2015 90
2. 2015-2016 160
3. 2016-2017 130
4. Total 380

Source: Future Company Limited

1.3 Current Situation

Future Company started to chase the market with the product of Fuji elevators.
The main problem facing comparing to other competitor brands is the country of
Origin (China). Though most of the competitors brands are also assembled in China
their country of Origin are labeled as Thailand, Korea, Spain etc. so that customers
feel more impressed with such countries of origins. Therefore, Hyundai brand
elevators from Korea which have competitive pricing with other branded elevators
and with good quality were started to be imported. In late 2008, the demands had
gradually been growing as the government mentioned that there must have the
elevators in every eight storied and above buildings. Because of that statement, the
number of the elevators which are being installed in Myanmar has obviously
increased according to the statistics of Myanmar Electrical Inspection Department.
The number of elevators yearly sold by the whole Myanmar from 2014 to 2017 is
show in the following table (1.3).

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Table (1.3): The Number of Elevators Yearly Sold by the Whole Myanmar

No. Year No. of elevator

1. 2014-2015 550
2. 2015-2016 700
3. 2016-2017 950
4. Total 2200
Source: Electrical Inspection Department (Ministry of Industry)

The following Figure (1.1) shows the comparison of the number of elevators sold by
the company and the whole Myanmar.

Figure (1.1) Number of Elevators Sold by the Company and the Whole
Myanmar

1000

800

600
By Company
400
The whole Myanmar
200
The whole Myanmar
0
By Company
2014-2015
2015-2016
2016-2017

Source: Electrical Inspection Department (Ministry of Industry)

Although the number of elevators in Myanmar increased 550 to 950 during

2014 and 2017, the elevators which are sold by the company even decrease from 160
to130. In addition, Future Company is having a challenge that the sale rates cannot
increase in the marketing department.

1.4 Discussion Question

1. Is it a good strategy to cross selling two brands of Elevators in the market?
2. Should the company change the elevators which are made from the country of
Origins to increase the sales rate of products?

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CASE II. Employee Turnover Issue in Sky Hotel

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 Employee Turnover Issue in Sky Hotel
2.1 Introduction
Today, Human Resource Management is very important role in anywhere. Its
main function is to choose the right person to the right place. To do so, the HR
Department must to recruit, hire and train employees for skillful and perfect ones. The
HR Managers’ role is very vital position to select the employees and provide
Developmental programs such as career advancement training programs, capacity
building programs and training in specialized areas.
The HR manager has to reduce the amount of the employee who had an
intention to resign. Moreover, he has to offer training so employees whether
permanent or seasonal understand their roles and how to perform them well.
Providing live, classroom-style sessions or e-training courses that target different
facets of hospitality, from marketing to menu planning are also essential for the
employee’s development. Either way, training could set an expectation for excellence
and shows our employees that we are willing to invest in them. Therefore, the HR
managers who have the ability to control the employees can solve the turnover
problem in any organization.

2.2 Company Profile

Sky Hotel Ngapali Beach resort hotel stretches along the beautiful shoreline of
Ngapali, which is a very pleasant beach resort natural and unspoiled – a place for
peace and tranquility. Ngapali Beach is one of the famous lands for resort and Sky
Hotel is a one of a kind resort located near the delightful ZeephyuKone Village at
Ngapali Beach, Myanmar.

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Figure 2.1 The organization structure of Sky Hotel

Source: Sky Hotel

2.3 Services in Sky Hotel

Accommodation
6 - Sea View Deluxe (436 sqft)
6 - Side View Superior (315 sqft)
10 - Garden View Standard (315 sqft)
All rooms are equipped with modern day comforts such as LCD TV with
cable TV channels, Coffee & Tea making facilities and bath amenities to assure a
comfortable stay.
Wireless internet capability and in-room internet access are available.
Facilities and Services

 24 hours room services

 Laundry services
 Airport shuttle
 Bar/Lounge
 Close to 18 holes golf course
 Bicycle
 Fishing boat rental
 Free Wi-Fi Internet Access

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  Big Meeting Room
 A Shuttle Bus Service to nearby Thandwe Town
 A Shuttle Bus Service to nearby Fisherman Village
Guest Room and Facilities

 Individually controlled air conditioning

 Private bathroom with separate hot &cold shower & bath
 International Direct Dial Telephone (IDD phone)
 32” Flat TV with Satellite
 Minibar
 In room safe
 Hair Dryer
 Bathrobes
 Slippers
 Purified water bottles
 Tea and Coffee making facilities
 Outdoor Shower

2.4 Current Situation

Over the years employee turnover rate of Sky hotel has become major
challenges to retain and employ new workforce
When an employee leaves their job, the hotel has to establish and appoint new
workers to fill the position vacant. This method is hard and resources area highly used
once changes happen within the work force since time, energy and expenses are
highly used throughout the turnover and rehiring process.
Disadvantages of the turnover issues are divided into two: Direct Costs and
Indirect Costs. The direct costs associated with the loss of time and money to recruit,
hire and train employees. The indirect cost is the decline in production and services
while the hotel has not found a replacement for the employee to perform work that
had previously been left behind by employees who resign or hire new employees who
do not have experience and should be given training.
It was also observed that it was relatively easy for the employees to get similar
jobs with other hotels in Ngapali Beach and employee turnover issue became very big
issue to the company. One critical problem was the lack of good performance and

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well qualified HR Manger resigned during the last six months so that overall HR
Management is controlled by Regional Manager. Consequently there are employees
who resign every month and the reason why the employee resign is they already got a
better job, want to find a better job and the job felt less suited. Those vacant
employees impact to operational activities of the hotel and service qualities are
disrupted with many customer complaints and feedbacks.
The hotel also found out that the employees feel lost and frustrated since they
are not mentored by the HR management personnel and in this case most of the
employees decide to leave to find a more focused job. Moreover, the employees do
not even get respective incentive or allowances due to the lack of close monitoring by
HR manager.
Table 2.1: Turnover Status of Sky Hotel
Season Left Turnover
Sr. Departments
Beginning Ending employee Rate
1 Front Office Department 12 7 5 53 %

Front Office Supervisor 3 2 1

Receptionist 2 1 1
Bell Boy 7 4 3

2 F&B Department 9 4 5 77 %

F&B Manager 1 1 0
Assistant F&B Manager 2 1 1
Waiter/Waitress 6 2 4

3 Kitchen Department 7 4 3 55 %

Executive Chef 1 1 0
Kitchen Supervisor 1 1 0
Kitchen Helper 4 2 2
Steward 1 0 1

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 Account & Store
6 3 3 67 %
4 Department

Senior Accountant 2 1 1
Finance Assistant 1 1 0
Storekeeper 3 1 2

House Keeping
18 8 10 77 %
5 Department

House Keeping Manager 1 1 _

House Keeping Supervisor 1 1 _
Room Attendant 12 5 7
Laundry Attendant &
4 1 3
Gardener

6 M&E Department 11 5 6 75 %

M&E Manager 1 1 0
M&E Supervisor 2 1 1
M&E Helpers 6 2 4
Pool Attendant 2 1 1

7 HR & Admin Department 8 5 4 62 %

HR & Admin Manager 0 1 0

Securities 6 2 4
Drivers 2 2 0
Source: Sky Hotel
After Management Meeting and Discussion, Head Office has decided to
recruit a well-qualified HR Manager through My World Recruiting Agency. After
proper screening processes and hiring processes among many candidates, 3 candidates
were selected. Then, HR Director has requested those 3 candidates to provide short

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presentations about the sample HR Plan and how they could execute retention and
incentive programs aligning with hotel’s annual budgets. One candidate has passed
that round and got hire by the head of HR department and appointed as an HR
manager for Sky Hotel.

2.5 Discussion Question

1. What could be a better option: Recruiting new employees or giving incentives
to existing employees?

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CASE III - Distribution Problem of Myanmar Lion Company

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 Distribution Problem of Myanmar Lion Company

3.1 Introduction
An effective distribution channel can be a source of strategic advantage for
companies. Distribution channels are pathways along which products travel from
producers and manufacturers to ultimate consumers. They are routes along which
products, information, and finance flow. While some manufacturers deal directly with
their customers, most manufacturers use a distribution channel to take products to
consumers. Considerable thought, effort, and investment are required to create and
maintain a distribution channel. Channel margins and the expense of sales efforts in
managing channels can form a substantial proportion of total marketing costs. An
effective channel can be a source of strategic advantage for companies.

3.2 Company Profile Current Situation

Myanmar Lion Group (MLG) was founded in 1996 and under whose
stewardship the group has become the largest distributor in Myanmar. Recognizing
that successful businesses depend on the strength of their relationships and reputation;
trust, fairness and integrity are core values of Myanmar Lion Group, and these are all
reflected in the strength of Myanmar Lion Group relationships with its employees,
business partners, and customers.

Myanmar Lion Group is as the market leading distributor of consumer goods

in Myanmar, with over 21 branches, 600+ nationwide, 28,000 direct retail outlets and
access to 55+ million consumers, Myanmar Lion Group offers international consumer
brands the best platform from which to significantly expand their market. To
maximize the benefit of our extensive branch network, and its wide coverage
throughout Myanmar, have developed logistics and supply chain management
expertise and infrastructure that are without equal in Myanmar and allow us to add
significant value to principals.

Myanmar Lion network infrastructure, supply chain management, distribution,

local know how and logistical expertise help consumer goods brands in Myanmar to
achieve extensive market expansion. Combing both international standards and local
knowledge, Myanmar Lion is a one stop solution for overseas goods brands looking to
enter this as yet untapped marked.

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 Myanmar Lion is not only able to distribute brands throughout Myanmar, but
by utilizing its network of high impact outdoor advertising locations, in-store
merchandising programmers, and inside knowledge of Myanmar’s distribution
framework, Myanmar Lion is able to consistently build brands throughout all regions
of Myanmar.

3.3 Marketing Activity of Myanmar Lion

Product Activities

Myanmar Lion has been conduction the marketing mix activities effectively
starting since 1996. It has been conducting marketing activities for product, price,
distribution channel and promotion with effective marketing management style.

Product is a key element in the market offering. So, Myanmar Lion offering
becomes the Lion Coffee-mix which Myanmar lion builds profitable relationships
with customers that brings value to target customers. Lion Coffee-mix is the
consumer products so that bought by final consumers for personal consumption.
Myanmar Lion is emphasized on Lion Coffee-mix to make as good as possible for
product attributes, branding, packing, labeling and supported services. Furthermore,
Myanmar Lion has been organized by product mix width their product lines, as show
in Table (3.1)

Table (3.1) Product Mix Width and Product Line Length of Myanmar Lion

Sr. Coffee Tea

1. Lion Coffee-mix Lion Tea

Source: Myanmar Lion

According to the table (3.1), Myanmar Lion Company’s product mix width,
consisting two brands. The product line depth can also be seen with number of
product item by size for each brand distributed by Myanmar Lion Company. Table
(3.2) has shown the product item by kinds and size for Myanmar Lion.

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Table (3.2): Product Items in Myanmar Lion Production.

Sachet per package (all items are 20g

Items
per Sachets)

Lion Coffee-mix 50 30 20 10

Lion Tea 50 30 - -
Source: Myanmar Lion Company

According to the table (3.2), Myanmar Lion has been distributing Lion
Coffee-mix and Lion Tea with various sizes of product items. It has shown in table
(3.2).

Pricing Activities of Myanmar Lion

Price is the only element in the marketing mix that produces revenue, but price
is also one of the most flexible elements of marketing mix. So, Myanmar Lion tries to
keep the Lion Coffee-mix’s price which is reasonable price depends on market
situation and competitors. However, Myanmar Lion pricing policies is for the set of
market penetration as taking to get a more market share. So, they use as Penetration
pricing.

For example, a package of 50 sachet’s price is 3950 kyats; sometimes they try
to use the Promotional Pricing. For example, company’s pricing activities can also
evaluate with ‘Buy two get one free’.

Promotion Activities of Myanmar Lion

Myanmar Lion uses various promotional methods to communicate with

individuals, group, and organization. There is the promotion mix to use the ways for
Lion Coffee-mix as sales promotion, public relations, direct marketing, trade fairs and
exhibitions, advertising, sponsorship. Moreover, Myanmar Lion uses some
advertising methods to attract the people for Lion Coffee-mix such as radio,
magazine, billboard, journal and television advertisement.

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Place or Distribution Channel Activities of Myanmar Lion

A Channel of distribution comprises a set of organizing which perform all of

the activities utilized to move a product and its title from production to consumption.
Myanmar Lion uses several types of marketing channels to their consumers where is
the whole country in Myanmar and export to ASEAN countries.

3.4 Case
Myanmar Lion delivers to over 32,000 retail outlets “within one month” and
provides access to Myanmar’s population of 55 million consumers. Every township
area had brand-office in Myanmar. Company’s distribution system was used by every
channel as trains, container-car, truck, air-line, shipping etc.

Figure (3.1): Myanmar Lion Marketing Channels for Lion Coffee-mix.

Source: Market Survey Data

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 Myanmar Lion for distribution channels to distribution their products in the
whole country, In channel1, Myanmar Lion sells directly to the customer, In
channel2, 3, and 4 represent indirect movement of product from Myanmar Lion to
consumers. In Channel 2, the product flow from Myanmar Lion to retailers to
consumers. Flow from Myanmar Lion to wholesalers to retailers to consumer. In
channel 4, the products flow from Myanmar Lion to wholesale market to wholesale to
retailer’s consumer, Channel 2, 3 and 4 are often used for train, air lines, container
cars and trucks. Myanmar Lion use promotion strategy to increase their sale volume
in customer’s awareness. Myanmar Lion use effective promotion methods.

Figure (3.2): Myanmar Lion Marketing Channels for Lion Coffee-mix.

Source: Market Survey Data

At shown in Figure (3.1 and 3.2), as a place strategy, Myanmar Lion has four
kinds of strategy to penetrate the market. First, Myanmar Lion was directly sold to the
customer. Second, Myanmar Lion was distributed the retailers to the end uses. Third,
Myanmar Lion was sold to the customer with respect to wholesale market to sell the
end users with their wholesalers and retailers. Fourth, Myanmar Lion was distributed
the whole sale market to the end users with their wholesalers and retailers.

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 Myanmar Lion uses not only distribution, place strategy but also promotion
methods. These methods are public relations, direct marketing, trade fairs and
exhibitions, advertising, sponsorship. Especially, management applied to use
institutional sales. This was effective and efficient ways for customer’s satisfaction to
increase sale. However, Myanmar Lion was the problem for the distribution
expenditure. The following table was to describe the distribution expenditure per
container of The Lion coffee-mix as annually.

Table (3.3): Yearly Sale Volume and Distribution Expenditure of Lion Coffee-
mix

Distribution Distribution Cost

Sale Volume
Year Expenditure Per container
(container or box)
(Kyats) (Kyats)

2015 230,000 66,000,000 286.9

2016 250,000 76,000,000 300.4

2017 220,000 70,000,000 310.8

Source: Market Survey Data

According to the Table (3.3), the distribution expenditure per container was
286.9 kyats in 2015 and 310.8 kyats in 2017. Myanmar Lion had been more
distribution expenditure because Myanmar Lion distributed the products with
institutional sales. For example: in 2015, one trip could be made to fill-up for 5
wholesalers. In 2017, it could not be done to give for 5wholesaler because
institutional sales took place for 3 wholesalers, only. So, Myanmar Lion needed to
make for another trip. It mentioned that distribution was, not only to fill-up the
products for the wholesalers and retailers, but also institutional sale was to take more
the skills employees, and more times consumption with their distributions. There were
the valuable resources have been used as costly. Finally, the cost of distribution was
higher than previous-years. But, the company could be bringing customer’s awareness
to increase.

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3.5 Discussion Question
Should the company improve the distribution channel to increase the sale volume and
customer awareness?

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