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MKT428 A3R ER Project Mid-Checkpoint Presentation

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Ah Yang

on 11 November 2012

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Transcript of MKT428 A3R ER Project Mid-Checkpoint Presentation

Entry of Mode
Target Market
Product Positioning
Market Strategies Demographics
Political Issues
Legal & Regulation Issues
Economic Situation
Competitor Analysis
Distribution Network Entry of Mode
Target Market
Product Positioning
Market Penetration Mid-Checkpoint Presentation
A3R Holdings Sdn Bhd
ViCTORIAN CIGARETTE Group Member: Tan Sue Ann
Yeong Sze Wei
Tung Chew Yi
Zhou Bo Yuan Initial Identification - Myanmar Strategies to Penetrate in Australia Strategies to Penetrate in Myanmar Initial Identification -
Australia Demographics
Political Issues
Legal & Regulation Issues
Economic Situation
Competitor Analysis
Distribution Network Australia - Demographics Population Rate: 22.8 millions (15/10/12)
6 states 2 mainland territories
Types of Cities: Capital cities,
Urban areas,
Local government areas,
Rural Area
Remote and Very Remote
Prevalence in Smoking: Decline (18++)
Smoking Rate: Male (30-39, 40-49 - 20.2%)
Female (40-49 - 18.8%)
14 yrs old onwards start smoking Australia - Political Issues Stable, open, and progressive environment

Safe destination for investment

High degree of confidence and certainty

Transparency and effectiveness of government

Low corruption rate Australia - Economic Situation Highly competitive economy

Strong, independent financial sector & effective financial system

Provide a sound platform & open trade and foreign investment

GDP : $919.7 billion (2011)
Inflation Rate: 3.4% (2011)
Interest Rate: 3.25% (2012)
Currency Exchange Rate: $1 (AUD) = RM3,1424 Australia - Competitor Analysis Australia - Competitor Analysis Australia - Competitor Analysis Australia - Competitor Analysis Australia - Distribution Network Grocery Outlets

Supermarkets – Coles, IGA


Convenience Stores


Online Selling – Alibaba Service Stations



Corner Shops

Tobacco Vending Machine Australia - Legal & Regulation Issues Australian government is still being ambiguous about the legality of e-cigarettes

Electronic cigarette hardware is not considered illegal, the nicotine solution that is the root of the problem.( the perceived usage does)

Malaysia is Australia’s 10th largest trading partner, with two-way trade worth A$16 billion in 2011

Malaysia-Australia Free Trade Agreement (MAFTA) is expected to commence implementation on 1 January 2013. Australia - Distribution Network Australia - Distribution Network Prominent Pro Tobacco Retail Groups Alliance of Australian Retailers (AAR)

Australasian Association of Convenience Stores (AACS)

National Association of Tobacco Retailers (NATR)

National Association of Retail Grocers of Australia (NARGA)

Australian Retailers Association

Australian Newsagents' Federation

Service Station Association Council of Small Business in Australia
Free Choice Stores

Master Grocers Australia

Tobacco Station Group

Independent Retailers Association

Retail Confectionery

Mixed Business Association

Duty Free Store – Nuance Group Australia - Entry Of Mode Australia - Target Market Australia - Product Positioning Australia - Market Strategies Myanmar - Demographics Myanmar - Political Issues Myanmar - Legal & Regulation Issues Myanmar - Economic Situation Myanmar - Competitor Analysis Myanmar - Distribution Network Myanmar - Entry Of Mode Myanmar - Target Market Myanmar - Product Positioning Myanmar - Marketing Strategies Population: 59.1millions (June 2012)

Smoking prevalence: 20-23 percent of the population (33% of men and 15% of women)

Smoking prevalence – decline

Smokeless tobacco prevalence – increase

Cheroots are smoked by 75% of current smokers in Myanmar Political situation: Instability

More than 30 ethnic armed groups against the central government

Fight for democracy Electronic Transactions Law

Import and Export Act, 1947

The State Law and Order Restoration Council Law No. 2/92 one of the poorest countries in South East Asia
economic overview: depression
 high risk destination for overseas investment GDP:  $82.72 billion (2011) 
$78.34 billion (2010) 
$74.36 billion (2009) Inflation rate: 8.9% (2011) 
7.7% (2010) Currency rate: RM1=Kyat278.3499 Grocery Outlets



Convenience Stores Exporting
- Direct Exporting State: Yangon Region, Mandalay Region
Cities: Yangon
-Population: 4.3millions
-The largest city
: Mandalay
-Population: 1.03millions
Age: 18-45 years old
Gender: Male & Female
Income Level: Medium Income Electronic Equipment ( E-Cigarette)
Zero-Tar, No harm to health
Environmental Friendly

Taxation: 5%-30% (Commercial Tax Rates) Price Strategies
Price maker
Price penetration

Promotion Strategies

Distribution Strategies
Direct exporting
Grocery outlets, supermarkets, hypermarkets, convenience stores Pricing Strategy
- Price penetration
- Cheaper price

Product Strategy
- Product characteristics

Distribution Strategy
- Groceries, supermarkets, convenience stores, retailers

Promotion Strategy
- Advertising (Vending Machine)
- Banner (Shelves) State: Queensland

City: Gold Coast-Tweed

Age: 18-49 years old

Gender: M & F

Income Level: Lower, Middle, Middle Upper, Upper level

Landmark: Tourism

Good & Service Tax (GST) :10% Indirect Exporting
Direct Exporting

Foreign Direct Investment Product Category:
Health & Medical
Rehabilitation Therapy Supplies
Zero-Tar Cigarette
Entertainment Product - Customs Tariff Act 1995
- Import Taxation & Tariffs Therapeutic goods administration (TGA)
Australian Register of Therapeutic Goods (ARTG)
Full transcript