Myanmar can learn new experience. It is undoubtedly

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Myanmar can learn new experience. It is undoubtedly

Myanmar is a developing country that has been walking
up to full Democracy. Since the Military Government had ruled the country with
Isolationism, it encountered economic recession. Lately Myanmar opens its door
again to foreign investors so the economy boomed in within 4 or 5 years. According
to a report by the Central Statistics Organization, Myanmar, FDI in Myanmar
increased to 905.77 USD Million in February of 2015 from 339.41USD Million in
January of 2015. (Siam University, n.d.) These days many
foreign investors are still attracted to Myanmar, however, the government is
still reforming process.

            Myanmar budding beauty sector has been increasing as
Myanmar people has become aware of beauty conscious that they want to be
smoother and blemish free skin. From 2008 to 2012, for hair care,
the average increase was 97.5% (with a 181% increase in 2012); while
for facial skin care products the average increase was 70.25% (an
129% increase in 2012). For body care, the average increase was lowest, at
63%, however 2012 saw a spike in spending of 170%. (Mudditt, Democratising beauty: Myanmar’s cosmetics
market, 2013)

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Increasing
Foreign Investment, we can have a lot of advantages in the country. It gives a
long-term relationship between two countries and provides new markets and
cheaper production facilities. For these reasons, multinational corporations
are likely to appear throughout our country. It means that it is the growth of
our country’s economy. It helps job creation because they create new jobs and
opportunities by opening new companies in the country. By means of this,
increment in income will rise for the country. The foreign companies usually
offer higher salaries than local companies. Not only most of the local people
are employed but also skilled workers and technicians can learn new experience.
It is undoubtedly true that it enhances the development of human resources
implicitly. Transferring technologies, sharing knowledge and providing
facilities are considered to be overall economic growth. Though Myanmar is one
of the poor countries in Asia, there is still sales opportunities for foreign
companies. Most of the companies in the global beauty is waiting
to enter into the country with a middle class that will be twice in number by
2020 and a potential customer base of nearly 60 million across age groups. (The
Booming BeautyBusiness, 2014)

Medi
Myanmar Company see the future ahead so acts as distribution channels for Estee
Lauder companies and delivers high quality products to Myanmar beauty market.
Exploitation of opportunities in the booming market is the benefits of gaining
its sales and revenue in the market.

 

Negative
Impacts

            On
the other hand, increasing foreign investments can deeply affect to local
firms. The local firms have to struggle in market competition with foreign
firms. It is not easy task for local firms to survive substantially and to get
profit maximization through the foreign firms and they may even break down.
Most international brands, mainly Korea skincare and makeup products, are
flooding in the market since 2012 and it is easy to buy different ranges of
products like facial cleansers, toners, moisturizers, serums and latest creams
that are offered by L’oreal, Revlon, Maybelline, Kanebo, Shiseido and so on.

As soon as technology is advanced, the company can
access huge volumes of information like closer targeting of potential customers
and more promotional activities. It is the development of doing business as it
provides open system to anyone with internet access to connect to World Wide
Web (WWW).  Advancement of technology
software keeps the collection, storage and analysis of both product and
customer data by storage in databases. This allocates company to analyse and
manipulate the data in providing management with detailed information to get a
deeper understanding of their customers and of product knowledge. Due to
technological development of the internet, a lot of changes in marketing
activities. That can be undertaken directly with the customers through
e-commerce, direct mail, email marketing and telemarketing. (Marketing
policy, planning and communication) We can make
immediate response any enquiries along with the price of Estee Lauder products
and enable to give the knowledge of product details on the site. Moreover, it
is able to calculate the number of visits to site, customer preference, range
of products purchased and the consistency of purchasing specific brands

Medi Myanmar Group Ltd is a pharmaceutical company
consisting of distribution industry that offers products to customers from
reliable manufacturers. In 2013, the company started to introduce cosmetic
brands to Myanmar as people want to spend more money in order to look good. Due
to the popularity of Korea movies, Korea makeup trend is dominant among young
women. This is one of the challenging tasks for the company to gain market share
as western cosmetic brands and it is still risky as foreign investment
companies in doing business in Myanmar mainly due to lack of infrastructure and
high commercial rents.

We have imported one of
the world leading and prestige cosmetic brand, Estee Lauder which has been
distributed since 2013 in Myanmar. Estee Lauder brand was launched in 1946 and
now is reaching 150 countries through retail channels and digital commerce. (Estee Lauder Companies, n.d.) People in Myanmar
would like to buy authentic skincare and cosmetic US products directly even
though they have to pay more than usual price as they are concerns that the
products are fake. Under the control of brand owner, we’ve marketed and
distributed into the market so that consumers can totally rely on. By having
restricted number of outlets, value service level is likely to be added to the
market served. Staff are also trained in order to contribute and to deliver
satisfaction and value to customers.

Research and development
was undertaken into Myanmar beauty industry before Estee Lauder brand hadn’t
been delivered to market. Lately change in the consumer behaviour is dramatic
concerning the growth of the skin and beauty sector. Getting available a wider
range of skincare and cosmetics products, competitors in Myanmar beauty market
highly exist. Many smuggled cosmetic products are dumped and predominantly
imported from China and Thailand. In order to prevent from fake products, Food
and Drug Administration (FDA) permission is still required. Decision making of
manager is important to decide exactly what we need to find and to collect the
right kind of information that is crucial to the success of management
objectives. In accordance with distribution management, a wider range of
activities carefully has been applied in detailed logistics, transportation,
warehousing, and storage. Inventory management is crucially important to keep
products fresh and healthy especially pharmaceutical products, food supplements
and cosmetics and skincare products.

Thanaka is yellow-white paste which is made of Thanaka
wood. Myanmar people still prefer Thanaka as a traditional and organic one that
take care of their face from direct exposure of sunlight. Although foreign
brands have been increasingly interested by Myanmar consumers, Thanaka stands
one of the trusted cosmetic items in Myanmar and is quite cheap. Shwe Pyi Nann
Group of Companies is the largest manufacturer of Myanmar traditional cosmetic
Thanaka. Due to popularity of Thanaka, entering the new market is still a
greater barrier for new skincare and cosmetic products. (Mudditt, Myanmar’s beauty market poised for growth,
2016)

Estee Lauder companies is top manufacturers and
marketers in the world with regard to skincare, makeup, fragrance and hair care
products. Firstly, Estee Lauder brand was started with just four skincare
products and its sales were round the local salons and hotels. From 1946 to
2017, Estee Lauder companies owns 25 major brands including Bobbi Brown, MAC,
Clinique, Jo Malone, Crème de la Mer, Tom Ford and Origins. Estee Lauder brands
hold a good image in cosmetic market with mission statement, “Every woman can
be beautiful”. (Shetty, 2011)Their products are pricey but delivering
good quality. Starting from 2013, Estee Lauder brands made agreement with Medi
Myanmar Group Company.

 

When profitable Myanmar beauty industry will create a
centre of attraction to new entrants that engender the existing companies to
decrease profits and revenue. Thailand and China are significantly importing
cosmetics to Myanmar market that can make distribution of Estee Lauder,
Clinique brands difficult because there is no law right now to prevent illegal
cosmetics imports to Myanmar. As Medi Myanmar Group Ltd must continuously not
only monitor possibility of new entrants but also maintain brand customer
loyalty. Product differentiation,
high quality, customer service and after sales service are required to promote
brands.

Nowadays, Korea drama series are influencing Myanmar
culture. People would like to try do makeup like Korea Stars and use Korea
skincare and cosmetics as substitute products in the place of high-end brands
like Estee Lauder. Buyer switching costs is also low and availability of
substitute products highly exist.

            So,
competition in the market is strong in resulting direct impacts to the
company’s marketing strategies. South Korea and Japan are importing their local
brands, SK II, Shiseido, Nature Republic as well as western brands. Level of
advertising expense and powerful competitive strategy are always necessary to
consider from managers. As a result, customers can switch easily between
brands. Buyer power is high unless they can perceive uniqueness.

Partnership relationship between Estee Lauder
companies (Manufacturers) and Medi Myanmar Group company (Distributor) has to
be strong to help both partners meet their goals. Manufacturers and distributor
is responsible to make sure managing the relationship of both parties’
alignment. Marketing, branding and product development requires closer
collaboration to be successful in a longer term. Distributor is an independent
business with their own objectives. Manufacturers give support promotional and
sales materials to support distributors’ sales efforts, training, pricing,
quality issues of skincare and cosmetic  (Marx, 2016)

We are
experts in dealing with getting our imported products in the hand of customers
directly. The teamwork in the workplace is essential to the success of
business. When the team work together, we understand the strength and weakness
of each team member. It mainly depends on the team leader in dividing up the
tasks and getting things done by through the qualified members. Delegation of
responsibilities has been practising in each team. Human Resource Department
recruits the potential employees and trains the staffs to engage their
commitment in achieving targets. The well-trained and competent work group and
team carry out and complete the sales target that is set weekly/ monthly by
management that is tailored to generate more revenue.

            Each team is well aware of its own
abilities and the groups can work together effectively as opposed to disjointed
groups of employees who may not be familiar with how to work together. (III,
Importance of Teamwork at Work, n.d.)In the team, team
members generate ideas or suggestions when they feel comfortable with each
other. They are going to work together that the company will benefit from
various suggestions. By the time they face difficult challenges, they support
each other to improve their performance as well as professional development.

            Distribution managers, leaders and
supervisors have eight critical competencies in building relationship, career
management, communication and feedback, difficult conversation, critical
thinking, conflict resolution, adaptive leadership and performance management.
Our success is measured in
the confidence we gain, the improved team morale they foster, the conversations
we no longer struggle to initiate and the conflicts they are able to
resolve. The interpersonal soft skills employees are learning—and the
insights they are gaining—form the foundation upon which they will coach and
mentor employees to higher performance; and make informed business
decisions; and lead our company through future industry challenges and market
forces. (8 Critical Competencies Necessary for Frontline Leaders in the Wholesale
Distribution Industry, n.d.)All of the leadership
competencies in action have the potential to benefit the business and the
bottom line. Competency-based
learning is the basis for a leadership development program to change current
knowledge, skills and attitude of our staff in preparing internal changes that
directly influence joining up new business and continuous technical
improvement. To fill the soft skills gap, management provide leadership
training to potential employees to make incremental improvement for the benefit
of the company.

 

            Lately, high speed internet gets available
in Yangon and Mandalay mainly. The advantages of distribution company are
online marketing for building customer relationships by virtue of its personal,
one to one nature. The implications of electronic resources help to improve
management and implementation of marketing activities in an effective and
efficient way. It makes easier to conduct marketing activities like information
provision, data and information acquisition, communication and relationship management,
transaction management and distribution and logistics management.

            Marketing
manager need to be aware of any changes and prepare for these which may take
place. E.g. ever-improving technology in transport and electronics and changing
tastes of buyers. The increasing popularity of social networking sites as in
Facebook, Whatsapp give chances to create virtual marketplace to sell skincare
and makeup by making online transaction. It is so much simple to purchase items
with less time and effort. It instigates impulse buying to customer by having
web pages on the internet.

            The
new technologies are having an impact on the distribution and logistics, order
processing as well. By using low-cost incremental technology that software applied
to inventory control, order selection, short interval scheduling as well as
sales forecasting. Company have managed to reduce their inventory levels
through just-in-time system, electronic direct interchange (EDI) and extranet
enabling retailer and supplier to be in constant touch. Electronic warehousing
systems are used for the storage of information. (Marketing
policy, planning and communication)

For any changes which may
occur, the company must be ready to adapt by having IT department that will
handles all the technological issues. Our company didn’t have IT department
before, however, assisting in the use of data management to all functions in
the company is essential and we became realised how valuable it is.

            Offering Estee
Lauder products better and greater value at reputable store by authorised
distributor is one of the advantages among the competitors. Estee Lauder brand
has positioning high quality and high price in the beauty industry. Using
IDEA’s data-formatting standards have a competitive advantage over those who do
not. (idea, 2007)

 

After identifying the
risk factors, the company adopts plans to resolve and monitor the plans whether
it does work or not. Manufactures and distributors need to overcome by means of
interacting with an effective communication and work together that results each
partner has successful outcomes. Risk can be minimized by practising risk
management.

 

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