YANGON UNIVERSITY OF ECONOMICS

DEPARTMENT OF COMMERCE
PhD PROGRAMME

ANALYSIS ON RELATIONSHIP BETWEEN

MARKETING MIX AND PERFORMANCE OF
PURIFIED DRINKING WATER MANUFACTURING
BUSINESSES IN YANGON

YAN YAN MYO NAING

JUNE, 2018
 CERTIFICATION

I hereby certify that content of this dissertation is wholly my own work unless
otherwise referenced or acknowledged. Information from sources is referenced with
original comments and ideas from the writer herself/himself.

Yan Yan Myo Naing

4 Ph.D Za-3
 YANGON UNIVERSITY OF ECONOMICS
DEPARTMENT OF COMMERCE
PhD PROGRAMME

Analysis on Relationship between Marketing Mix and

Performance of Purified Drinking Water Manufacturing
Businesses in Yangon

Submitted in partial fulfillment of the requirements for the degree of

Doctor of Philosophy (PhD) of Commerce, Yangon University of
Economics, Myanmar

Supervised by: Submitted by:

Dr. Myint Myint Kyi Yan Yan Myo Naing

Professor 4.Ph.DZa – 3
Department of Management Studies
Yangon University of Economics
 YANGON UNIVERSITY OF ECONOMICS
DEPARTMENT OF COMMERCE
PhD PROGRAMME
This is to certify that this dissertation entitled “Analysis on Relationship
between Marketing Mix and Performance of Purified Drinking Water
Manufacturing Businesses in Yangon” submitted as the requirement for the Degree
of Doctor of Philosophy (PhD) has been accepted by the Board of Examiners.
BOARD OF EXAMINERS

Prof. Dr. Tun Aung

(Chairman)
Pro Rector, Yangon University of Economics

Prof. Dr. Khin Naing Oo Prof. Dr. Khin May Hla

(External Examiner) (Referee)
Rector (Retired) Pro Rector (Retired)
Yangon University of Economics Yangon University of Economics

Prof. Dr. Sein Min Prof. Dr. Daw Soe Thu

(External Examiner) (Internal Examiner)
Department of Economics Head of Department
Yangon University of Distance Education Department of Commerce
Yangon University of Economics

Prof. Dr. Moe Moe Khaing Prof. Dr. Tin Tin Htwe
(Internal Examiner) (Member)
Head of Department Department of Commerce
Department of Management Studies Yangon University of Economics
Yangon University of Economics

Prof. Dr. Mya Thandar Prof. Dr. Myint Myint Kyi

(Member) (Promoter)
Department of Statistics Department of Management Studies
Yangon University of Economics Yangon University of Economics

JUNE, 2018
 Abstract

This study aims to analyse the effect of marketing mix on performance of

purified drinking water manufacturing businesses in Yangon. The specific objectives
are to investigate the marketing mix practices dominating in those businesses, to
examine the relationship between characteristics of businesses and their marketing
mix practices, and to analyse the effect of their marketing mix on performance.
Business characteristics considered in this study are age, size and ownership form of
businesses. Only four elements of marketing mix (product, price, place, and
promotion) are accounted for this study. Performance is measured with four criteria
such as sales revenue, sales volume, profit and number of employees. In this research,
the simple random sampling method is applied by doing survey on 84 businesses
which are located in Yangon. To collect primary data from those businesses, personal
interview method is applied by using structured questionnaire. Data are collected
during 2016 and 2017. To reach research objectives, the hypotheses are tested by
applying linear regression analysis. From the analysis, it is found that the firms’
marketing-mix practices are related to characteristics of businesses such as age and
size. Large and old businesses are emphasizing more on product quality and
promotion tools while small and young manufacturers are more committed in
practicing delivery function tactfully. However, the large and old businesses invested
more in building distribution networks and for delivery human resources. The study
found that performance measured by sales revenue, sales volume, profit and number
of employees is largely related to distribution practices, and performance measured by
sales revenue is also related to pricing practices. Thus, for market share and for
staying only at the above survival level in market, purified drinking water
manufacturing businesses should compete with the use of pricing strategy. However,
for long-term success with good sales revenue, profit and business growth by
recruiting more employees, they should pay attention to establishment of effective and
efficient distribution structure.

i
 ACKNOWLEDGEMENTS

First and foremost, I would like to thank Professor Dr. Khin Naing Oo, Former
Rector, and Dr. Tun Aung, Pro-Rector of Yangon University of Economics for giving
me an opportunity to write this Ph.D thesis.
I hereby wish to enthusiastically show my sincere appreciation to my beloved
and honorable teachers and members of Ph.D Steering Committee for their guidance
and valuable suggestions in my thesis. I am also deeply thankful to Professor Dr. Daw
Soe Thu, Professor and Head, Department of Commerce, Yangon University of
Economics, for taking responsibilities of the Chairman of Ph.D Steering Committee
and for her kind and generous support to finish this thesis.
I would like to convey an exceptional heartfelt gratefulness to my supervisor,
Dr. Myint Myint Kyi, Professor of Department of Management Studies for her
tolerant and kind supervision throughout various stages of this thesis, and her
enthusiasm and exhausted energy bring this paper to light.
I would also like to thank purified drinking water manufacturing business
owners/managers interviewed for this research. They all kindly share me their
knowledge, experience and information about marketing mix practices in small,
medium and large sized businesses they are running.
Special thanks go to my colleagues of Yangon, Meiktila, and Monywa
Universities of Economics for their kind assistance in doing research and giving
seminars, and also for their encouragement. I thank with pleasure to all who lovingly
and patiently have helped and given me special assistance in the accomplishment of
this thesis.
And last but not least to my beloved parents and family, for their full support
and encouragement throughout my research work. Without their support, the
completion of this paper is impossible. Thanks also go to my brothers and sister for
their empathy and understanding in letting me devote all the time busy with this
research.
Yan Yan Myo Naing
Ph.D Za (3)

ii
 TABLE OF CONTENTS

Page
Abstract i
Acknowledgements ii
Table of Contents iii
List of Tables v
List of Figures vi
List of Abbreviations vii

Chapter 1 Introduction
1.1 Rationale of the Study 4
1.2 Problem Statement of the Study 7
1.3 Research Questions 11
1.4 Objectives of the Study 11
1.5 Hypotheses of the Study 11
1.6 Scope and Method of the Study 12
1.7 Organization of the Study 13

Chapter 2 Theoretical Background of the Study

2.1 Concept of Marketing Mix 15
2.2 Marketing Mix Elements 16
2.3 Empirical Studies of Marketing Mix and Performance 23
2.4 Conceptual Models of Previous Researchers 28
2.5 Items to be Measured for Marketing Mix and Performance 33
2.6 Conceptual Model of the Study 34
2.7 Analytical Framework of the Study 35

Chapter 3 Research Methodology

3.1 Sampling Procedure 38
3.2 Pilot Study 39
3.3 Reliability and Validity Test 39
3.4 Research Instrument 49
3.5 Data Collection and Data Analysis Methods 53

iii
 3.6 Assumptions of Multiple Linear Regressions 54
3.7 Dummy Variables and Interactions in Regression Analysis 55

Chapter 4 Analysis on Relationship between Marketing Mix and

Performance of Purified Drinking Water Manufacturing
Businesses in Yangon

4.1 Profile of Purified Drinking Water Manufacturing 57

Businesses
4.2 Barriers to Practice Marketing Mix 60
4.3 Marketing Mix of Purified Drinking Water 61
Manufacturing Businesses
4.4 Dominant Marketing Mix Practices in 71
Purified Drinking Water Manufacturing Businesses
4.5 Descriptive Analysis on Firm’s Characteristics and 78
Marketing Mix
4.6 Analysis on Effect of Firm’s Characteristics on 84
Marketing Mix
4.7 Analysis on Effect of Marketing Mix on Firm’s 97
Performance

Chapter 5 Conclusion
5.1 Findings and Discussions 106
5.2 Suggestions and Recommendations 110
5.3 Needs for Further Studies 117

References
Appendices

iv
 LIST OF TABLES

Table No. Title Page

3.1 Question Items Removed After Pilot Study 39
3.2 Reliability of Data for Marketing Mix Elements 40
3.3 Validity of Data for Marketing Mix Elements 42
3.4 Factor Loadings of Product Variable 43
3.5 Factor Loadings of Price Variable 44
3.6 Factor Loadings of Place Variable 45
3.7 Factor Loadings of Promotion Variable 47
3.8 Factor Loadings of Performance 48
4.1 Profile of Purified Drinking Water Manufacturing 59
Businesses
4.2 Practices on Product 61
4.3 Pricing Practices 63
4.4 Practices for Place 64
4.5 Promotion Practices 69
4.6 Marketing Mix 71
4.7 Dominant Marketing Mix in Businesses 72
4.8 Marketing Mix Based on Size of Businesses 79
4.9 Marketing Mix Based on Ownership Form of Businesses 80
4.10 Marketing Mix Based on Age of Businesses 82
4.11 Effect of Marketing Mix on Sales Revenue 99
4.12 Effect of Marketing Mix on Sales Volume 100
4.13 Effect of Marketing Mix on Number of Employees 102
4.14 Effect of Marketing Mix on Profit 104

v
 LIST OF FIGURES

Figure No. Title Page

2.1 Four P Elements of Marketing Mix 17
2.2 Factors Influencing Marketing Mix and Its Effect on Performance 29
2.3 Conceptual Model of Organization-Environment-Strategy- 31
Performance (OESP)
2.4 The Relationship between Marketing Mix Strategy and Drivers of 32
Export Performance
2.5 Conceptual Model of the Study 35
2.6 Analytical Framework of the Study 36

vi
 LIST OF ABBREVIATIONS

ANOVA Analysis of Variance

BEF Broad Environmental Factors
CAGR Compound Annual Growth Rate
DISI Directorate of Industrial Supervision and Inspection
FDA Food and Drug Administration
HACCP Hazard Analysis and Critical Control Points
MIDC Myanmar Industrial Development Committee
MM Marketing Mix
MP Marketing Performance
OESP Organization – Environment – Strategy – Performance
PE Polyethylene
PP Polypropylene
RBV Resource – Based View
ROI Return On Investment
SME Small and Medium Enterprises
SPSS Statistical Packages for Social Science
STP Segmentation, Targeting and Positioning
TEF Task Environmental Factors
YCDC Yangon City Development Committee

vii
 Chapter 1
Introduction

Purified drinking water manufacturing was started in Myanmar during 1970s.

However, Myanmar consumers were not aware of this product and the product had
not developed at that time. The market for this product has developed only after the
introduction of Market Oriented Economy in 1988.
Drinking water should be free from the dangers such as lead, arsenic and other
toxic minerals. Purified drinking water is produced through distillation, deionization,
reverse osmosis, ultra violet radiation and ozonaion water treatment process. Purified
drinking water manufacturing businesses are controlled by Yangon City Development
Committee, (YCDC) supervised by Directorate of Industrial Supervision and
Inspection (DISI), Myanmar Industrial Development Committee (MIDC) and Food
and Drug Administration (FDA) for quality product. All water purification
entrepreneurs have to apply the permit for digging tube well from YCDC because
only raw water from tube well is allowed to be used for water purification.
Afterwards, they need to register at DISI, under the Ministry of Industrial (1) and (2).
Then they submit report to MIDC for the license. In the last stage, every
manufactured drinking water is tested by FDA for qualified product and the qualified
enterprise receives the purified drinking water production certificate. Thus DISI and
FDA control and inspect these enterprises. The number of purified drinking water
brands has been rising. However, some were not registered legally (Myawaddy News,
July 22, 2016). Recently, FDA has shut down 13 unregistered drinking water brands
in Yangon.
In this decade, people recognize that using purified drinking water is the sign
of modernization, safety for health, and higher living status. Habit of drinking
purified water has become more increased than before. To take advantage on these
opportunities, some of the Myanmar entrepreneurs have set up purified drinking water
manufacturing businesses. In almost all areas of Myanmar, people can find purified

1
drinking water although the products vary in terms of price, brand, packaging, product
quality and other characteristics.
Bottle sizes of purified drinking water in Myanmar are 0.3, 0.6, 1, 5, 20 liters.
Package size for 0.3 liter is 15-bottlle case, 0.6 liter is 12-bottle plastic pack, 1 liter is
6-bottle plastic pack respectively. Most of the small businesses produce only one
category (20 litre). Containers for 20 liters can be classified into two types. They are
Polyethylene (PE) container and Polypropylene (PP) container. Polyethylene is
flexible, durable and tear-resistant and these three characteristics are extremely
important to contain heavy items. Most of the businesses use polyethylene for purified
drinking water. Other characteristics of PP are crystal clear for great product
presentation, stiff and hard plastic rough surface has the potential to produce scratches
outstanding vapor and moisture barrier meets FDA specifications.
PE bottles possess low cost, strength and flexibility. Most of the businesses
prefer PE bottles. However, most of the consumers prefer PP bottles to PE bottles. For
manufacturers, PP bottles have high cost, low strength and rigidity. In the market, the
price of PE bottle is about 2500 ks and PP bottle is about 4000ks. The scrap value of
both of these bottles is between 500ks and 1000ks.
The purified drinking water market could be evaluated with registered brands
in Yangon because one fourth of the total number of brands are sourced in Yangon. In
Yangon, a large number of brands are sourced from Hlaing Township and Shwe Pyi
Thar Township. In Shwe Pyi Thar Township, there is an industrial zone, and due to
this point, many purified drinking water enterprises are located at that industrial zone.
Although there is no industrial zone in Hlaing Township, the raw water source is in
relatively better condition in that township. Therefore, the firms which consider
location (raw water resource) advantage established their enterprises at Hlaing
Township.
Purified drinking water market is growing significantly in the local market;
however, some existing brands evaporate without knowing because they cannot
survive in the world of rapidly changing customer‟s attitude, behavior. As number of
brands is increasing, consumers are not satisfied with what they want from the
product. Many brands are assumed to be reliable for health, but some are not. It is not
sure that the most important factors of consumer‟s satisfaction are not only prices and
taste of water but also the cleanliness of bottles and right time delivery services.

2
 The success of a purified drinking water manufacturing business, in a chaotic
environment, depends much on the proper marketing mix. In Myanmar, although
some customers have health awareness on drinking water, many people have not yet
aware well on effect of drinking water on health. Some people may pay more
attention to price and convenience while others emphasize on product quality and
promotion messages when making buying decision on drinking water. Moreover,
some people may be more conscious in buying purified drinking water, they may
consider all factors such as product, price, place, and promotion. Thus, in this market,
it is not obvious that which marketing mix will lead to success and sustainable
competitive advantage in Myanmar purified drinking water market. Only one
common finding is that manufacturers must not neglect the marketing mix factors –
product quality and attributes, pricing strategies, distribution practices (place where
consumers feel convenience to buy), and promotion tools – for gaining success, even
for survival in highly competitive market. Many authors also argue that understanding
the customer‟s attitude toward 4Ps marketing mix is important (Purnomo, Ende,
Vanapalli, & Mugele, 2008) in marketing products for which customer needs are
continually growing; loyalty is lacking, and changes in intensive competitive
environment occur. Therefore, firms should sense and respond to these changes much
more quickly than competitors to create competitive advantage. To achieve
competitive advantage, proper marketing mix is important.
Most purified drinking water manufacturing businesses invest and strategize
more on production than on sales and/or marketing. On the other hand, the main tool
that some businesses used to fight competition seems to remain in the pricing
practices. The method apart from the price competition is product proliferation and
differentiation, as well as product development. Manufacturers who emphasize on
distinctiveness of product rely also on promotion practices for customers‟ impression
on their products and brands. Moreover, it cannot be concluded that Myanmar
purified drinking water manufacturers do not consider the place (distribution) and
promotion strategies. Although some purified drinking water manufacturing
businesses are largely accepted by wholesale and retail markets, some are not. These
businesses are trying to get market by providing place utility to customers:
establishing small factories near the targeted group of customers and sending products
right to their customers‟ places. Thus, in purified drinking water market in Myanmar,

3
the hidden issue is that which marketing mix element is influencing on the
performance by the growth of sales, profit and number of employees.
In this study, the effect of marketing mix on performance of purified drinking
water manufacturing businesses is analyzed for some beneficiaries such as potential
purified drinking water manufacturing businesses and other interesting parties to
purified drinking water market in Myanmar.

1.1 Rationale of the Study

In Myanmar, bottled water is main source of drinking water for urban
people. Even in rural areas, purified drinking water consumption has been steadily
growing due to decreasing quality and availability of well water in rural areas. Tap
water source is also not reliable, particularly for drinking, due to lack of distribution
of water sufficiently by local governments, and lack of maintenance and service for
water distribution system. There has not yet established an organization to take care
about water from public water system as drinking water. Thus, most people do not
depend on tap water source for drinking, even for cooking in some areas. Tap water
supply is still only for other uses such as for washing, taking bath and so on. Thus, for
drinking, bottled purified drinking water would be necessary for daily lives of
Myanmar people.
Myanmar‟s economic growth of recent years has led to rising demand for
bottled drinking water in both urban and rural areas. In some industries (for example;
travelling agencies, highway express service firms, airlines), bottled purified drinking
water is necessary accompanying goods to provide flawless services to their
customers. There are many businesses also requiring purified drinking water for their
business use. It is one of the essential resources at various kinds of restaurants, and
food and beverages firms. Although some importers are distributing water purifying
products and machines; they cannot penetrate into broad market due to price, and
convenience to use for most households and businesses, especially in low income
households and small-sized businesses. Thus, in Myanmar, purified drinking water
manufacturing firms are penetrating into both consumer market and industrial market.
In the other side, as bottled water become most popular in Myanmar, there are
too much private water purification factories all over the country and in almost every
town. Setting up a small and medium-sized purification facility is fairly simple and
can even be done in a residential house or a compound, and evan small facilities can
4
produce about fifty to a hundred 20-liter bottles per day. Such facilities had
proliferated in recent years (Myanmar Now Newspaper, 2-5-2016). By law, drinking
water manufacturers are required to register with FDA and allow it to inspect their
facilities for hygiene, production methods and quality tests. If FDA found illegal
practices, it will subsequently release a list of banned brands and their production
locations.
FDA works with municipal authorities to enforce drinking water controls. The
agency conducts test and check, and issues recommendations while local authorities
are responsible for granting licenses and implementing a ban and shutdown of
facilities. In Myanmar, particularly in Yangon, many small and medium-sized
manufacturers had entered the growing drinking water market in a bid to capture a
share, however, only few cared little for quality and hygiene standards. These small
and medium-sized bottled water manufacturers distribute their products to near by
residential quarters in townships. Their perception is that they focus on hygiene of the
water although they have not yet been inspected by FDA. They perceived that
consumers of their water have nothing to fear (Myanmar Now Newspaper, 2-5-2016).
With more manufacturers entering the purified drinking water industry, market
share and profit margin of early established manufacturing businesses are being
squeezed. Small-scale manufacturers either licensed or unlicensed are delivering
water door-to-door with lower prices to near by households. In Yangon, most
residents of outskirts reckon it is healthier to buy bottled water from the delivery
people, particularly for drinking, instead of using tap water. In these townships, there
are several different ways this business can work. Most delivery people pay a one-
time deposit to the factories before obtaining the 20-liter bottles. They then sell it at a
mark-up, or they can get the commission from factories. Factories do not need to
spend marketing expenses for promotion and delivery facilities and human resources;
they need only to emphasize on production. The freelance delivery men will take
responsibilities not only for delivery but also for customer loyalty.
Manufacturers who are running with own employees might have had difficulty
finding customers. Most houses already have a delivery person and do not want to
order a new brand. They want to stick with the one they trust. In such markets, it is
also difficult for systematically established manufacturers to prove that their brands of
water are properly treated and are safe. Households would be price sensitive to
purified drinking water. It seems that manufacturers who pay less attention to water
5
quality and promotion would gain more market acceptance in such markets due to
their lower prices and delivery persons‟ commitment. They could reduce price by
investing less amount in location and facilities, and also by controlling marketing
expenses.
On the other side, it can also be found that there are many purified drinking
water manufacturing businesses established with larger amount of capital outlay,
located at industrial zone, running with systematic recruited employees; and by
spending larger amount of money for branding, promotion and distribution channels.
They have been trying for market coverage and market share. They also gained public
awareness on brand names and public recognition on product quality. However, it is
not sure that their performance is better or not than mom-and-pop manufacturers.
In purified drinking water industry, in Yangon, although some mom-and-pop
bottled water manufacturers were shut down for failing to comply with standards or
health guidelines, many manufacturers are still alive with compliance to law although
their product quality is just at minimum acceptable level.
Customers‟ choice on brands may or may not be related to either their
awareness on quality (safety) or price. At present, although many people choose the
purified drinking water instead of municipal water, it is not sure which factors can
justify their selection of brands. The only obvious point is that the attractiveness of
this industry is high due to increasing demand potential not only in consumer market
but also in business market and relatively easy to establish. Individuals and businesses
are getting more and more willingness to pay for purified drinking water, instead of
using tap water. At the manufacturer side, they can manage this business for
satisfactory return on investment with lower operating costs. With this condition, the
purified drinking water remains a product with high profits (Olson, 1999). This
incentive can attract many entrepreneurs to push production and sales of purified
drinking water.
Although the industry attractiveness is high, marketing activities of successful
purified drinking water manufacturing businesses cannot be seen obviously. By
exploring those activities of successful players of purified drinking water market, it is
beneficial for persons who would like to know the nature of purified drinking water
market and who would like to gain success in that market. Developing a
comprehensive understanding of how marketing practices are linked with business
performance is critical for both business academics and managers.
6
 During the recent time, particularly in 2017-2018, some brands became
leading brands in purified drinking water industry while many brands have gone from
industry. A significant number of brands are also still gaining satisfactory return on
investment, and covering satisfactory area of market. Although they are not public
figures in market, they are not weak to out of market: they can survive for a long-time
with satisfactory level of return on investment. Thus, it is difficult to conclude that
successful firms are practicing mass marketing or they are trying for niche market
because some firms can attract their consumers with innovative design, quality
assurance of product, and using relatively higher promotion budget while others are
gaining profits coming from just trying for availability and targeting to households
who are not too conscious on water quality.
At the view from state level, the purified drinking water industry urgently
needs sophisticated guidelines and effective support from government for industry‟s
sustainability. If FDA‟s inspection and follow up action is not strong and capable
enough to move out low quality brands from market, quality brands will be out of
market soon. During the time of lack of government‟s capacity to supply sufficient
purified drinking water to public, the contribution of industry sector would be crucial
for public health, well being, and living standard. In this industry, the financial returns
of businesses are largely relating to their marketing mix practices: product quality,
pricing, distribution and promotion. Manufacturers may be getting sales and profit
due to product quality and brand image, price attractiveness, or flawless delivery.
According to the points mentioned above, in Myanmar, there are a number of
factors that make this study a valuable area to investigate. The reliable research
findings are needed so that government can develop an action plan for industry‟s
sustainability, and existing businesses can also focus on factors influencing their
performance and can get knowledge on barriers to success. Thus, this study focuses
on factors influencing manufacturers‟ sales, profit and firm‟s growth in purified
drinking water manufacturing businesses in Myanmar.

1.2 Problem Statement of the Study

The problem statement of the study is come out with the question of what are
the important marketing mix elements that affect performance and how the purified
drinking water manufacturing businesses will be highly performed.

7
 Some purified drinking water manufacturing businesses have been in the
market for many years. However, some of the businesses disappeared into oblivion
from the market and some have been abolished. When the cause of the businesses'
economic fall is observed, it is not very clear whether they fail because of poor
marketing mix or not. Likewise, there is no concrete evidence whether the businesses
are successful because of the best fit marketing mix.
The following premises have cast doubt of points as mentioned above. The
first thing is the nature or characteristics of product. As water is very different from
other products, there is no brand addiction or brand loyalty for water labels among the
consumers. Moreover, the health education concerned with purified drinking water is
not very high among the public of Myanmar. For these reasons, it is not very sure
whether persuasive approach with water quality is the reliable source of success and it
is not very easy to come to know in what percentage the consumers consider the
quality for the selection of purified drinking water although FDA is supporting and
encouraging upgrading quality. Marketers have not yet sure which is the optimum
way between just trying to be compliance with FDA standards and putting high
commitment to premium quality and prestigious packaging.
The historical background of the purified drinking water industry is the second
issue which could be a constraint on the ability of today businesses to practice some
marketing practices. The pioneering drinking water production in Myanmar is Dagon
purified drinking water. It was produced by Ministry of Industry (1). At that time,
purified drinking water was assumed as a luxury. As there was no publicity campaign,
the product could not publicize well. Even the manufacturers seemed to assume that it
did not need to advertise because water is a daily commodity like salt, oil or rice. The
packing design was not able to be transparent. The packing design when these were
delivered to the customers as wholesales or retails was in wooden boxes.
The time has come that the purified drinking water production enterprises are
very competitive to create a famous brand in the market because of the influences of
the neighboring countries' civil cultures, the transition of ways of lives of Myanmar
people, and the competitive publicity campaigns of the purified drinking water
productions. Although the purified drinking water is assumed as a commodity
product, the effect of promotion practices can be seen in the purified drinking water
market because some brands could make a fortune by using a considerable amount of
advertising budgets. As some industries could seize the opportunities by establishing a
8
famous brand among the public, they could own most of the market shares and
became the market leader. However, the historical effect is still strong on minds of
Myanmar people when they make buying decision on drinking water. Thus,
promotion practices and brand image would not be effective to pull them to buy this
product. Competitive price offer would be more effective to attract them. It is still
complex to marketers between increase in promotion budget and reduction in price.
During last decade, a variety of brands came into the market. The purified
drinking water changed from a luxury product into essential goods. The technology
and machinery for producing the purified drinking water could be obtained easily in
the market. The loan money could be attained by means of SME development
programme, and the water purification machines came into existence almost in every
township of Yangon. Since there is a lack of finance for promotion, the small
businesses compete against the large businesses by using a tactic of reducing price.
However, for manufacturing businesses with either large size or small size, it is not
sure which is more important: price or promotion.
As the consumers decided the quality of the drinking water through the naked
eyes by the time there is no handy measurable machine for the public to test the
sanitation of the water, the consumers bought only cheap drinking water due to the
thought of the same quality with cheaper price compared to the branded drinking
water. Instead of reducing the price of their established brands, the large
manufacturers defended against the fighter brands by means of producing new brands
with low price.
Some unethical manufacturers took advantage of the situation in which the
public cannot measure the quality of the purified drinking water by selling low quality
water at the price as low as they can. However, at the other side, public consciousness
on quality of water, health education by word of mouth, public awareness on FDA
campaigns has also been increasing.
According to the circumstances and situations, the purified drinking water
producers strived to own the certificates of quality (FDA, HACCP, etc.). The product
designs also changed from the former designs such as rectangle and transparent
bottles with blue labels on it into the innovative and persuasive designs to meet the
customers' wants and needs. The size of the purified drinking water bottles varied
such as 0.6 litre, 0.3 litre, 0.2 litre, etc. in order to meet the different preferences of the
customers. At that time, most of the complaints about the purified drinking water
9
were more concerned with the quality of the water (E.g. there were thick slime, moss,
dirt and dust in the water or something else like the decline of the flavour of the water,
etc.).
There are some customers preferred the brand with premium price as they
thought these had better quality while many people still consumed the brand with low
price without taking into account of the quality. Some customers choose the brand
based on attractive, portable size and convenience design. Some customers selected
their preferences based on the facts such as the flavour of the water, the sanitation of
the factories and the change of the colour of water when it is boiled and put tea, etc.
Thus, it is also not obvious for marketers to pay more attention on which marketing
mix factors: product or price.
Concerning the place (distribution) factor, on the one hand, the inherent reason
of buying purified drinking water may be convenience. Thus, the place factor or
availability at place where the buyers want the product to use may be important for
growing sales of businesses. Some businesses in Myanmar are trying to provide their
products to end users directly. Some businesses rely on distribution network for sales
growth and market share. Although businesses can change pricing, promotion and
product strategies more easily; depending on financial strength; the things that can
bestow the businesses such as the establishment of network, the relationship with the
customers, the attainability of better dealers and the faithful and mutual beneficial
wholesalers and retailers cannot happen within a short time. Even though the water
purification industries can be built and established within a short time, it takes a lot of
time to have the regular consumers and to have the intermediary dealers. In this
context, the businesses which have a broad range of regular and loyal customers could
get the upper hand and became the dominant figures in the market.
As mentioned above, for gaining success, the purified drinking water
manufacturing businesses today seems to need ability to handle marketing mix
However, it is not sure for them to what extent they should do for each of these four
elements. Moreover, firms‟ characteristics and capabilities such as firm‟s size and age
can also be influencing factors in ability to practice such marketing mix activities.
Businesses encounter difficulty to decide which element of marketing mix is
being applied as a priority in the 4Ps: product, price, place, and promotion. This study
focuses on analyzing the relationship between marketing mix elements and
performance of purified drinking water manufacturing businesses in Yangon. The
10
knowledge of the relationship between marketing mix and performances can
contribute as a helping hand for the betterment of the purified drinking water
manufacturing, as well as to sustain the existence of this industry. As most of the
purified drinking water manufacturing businesses are SMEs, the research can also
play a support role for the SMEs developments.

1.3 Research Questions

This study intends to give reliable and accurate answers to the following
research questions:
Research Question 1: Which element of marketing mix is dominating in
purified drinking water manufacturing businesses?
Research Question 2: Should characteristics of businesses be taken into
account in designing the marketing mix?
Research Question 3: Which marketing mix element(s) is important for
success of purified drinking water manufacturing businesses?

1.4 Objectives of the Study

The objectives of the study are:
1. To investigate the marketing mix practices which are dominating in
purified drinking water manufacturing businesses in Yangon.
2. To analyze the effect of characteristics of businesses on the marketing
mix practices of purified drinking water manufacturing businesses in Yangon.
3. To analyze the effect of marketing mix practices on performance of
purified drinking water manufacturing businesses in Yangon.

1.5 Hypotheses of the Study

To reach the research objectives as mentioned above, the following
hypotheses are tested in analysis part of this study:
Hypothesis 1: There is an effect of firm‟s size on marketing mix practices of
purified drinking water manufacturing businesses in Yangon.
Hypothesis 2: The ownership form of purified drinking water manufacturing
businesses in Yangon is relating to their marketing mix practices.
Hypothesis 3: There is a relationship between firm‟s age and marketing mix
practices in purified drinking water manufacturing businesses in Yangon.
11
 Hypothesis 4: There is an effect of marketing mix practices of purified
drinking water manufacturing businesses in Yangon on their performance.
Since performance is measured with four criteria in this study, hypothesis (4)
is divided into four sub parts:
Hypothesis 4(a): There is an effect of marketing mix practices on performance
by sales revenue.
Hypothesis 4(b): There is an effect of marketing mix practices on performance
by sales volume.
Hypothesis 4(c): Performance measured with growth by number of employees
is relating to marketing mix practices.
Hypothesis 4(d): Performance measured with profit is relating to marketing
mix practices.

1.6 Scope and Method of the Study

The study only focuses on relationship between marketing mix activities and
performance of purified drinking water manufacturing businesses in Yangon.
Marketing mix is composed of product, price, place and promotion. The sampled
population includes manufacturers or marketing managers of purified drinking water
manufacturing businesses which are located in Yangon.
In this study, descriptive research and empirical research are employed.
Descriptive research is utilized in order to explore the current status of marketing mix
practices and the business characteristics. Empirical research is appropriate when
proof is sought the effect of marketing mix elements on performance in some way.
In this study, both primary and secondary sources of data are used to collect
the required information. The primary data are collected from manufacturers or
marketing managers of purified drinking water manufacturing businesses in Yangon
by conducting interviews with structured questionnaires. Secondary data are obtained
from profile and reports of selected purified drinking water manufacturing businesses,
relevant text books, theses and previous research papers and journals from internet
websites.
The research design is mainly quantitative with some qualitative data to
support and expand upon the research findings.
The total number of purified drinking water manufacturing businesses in
Myanmar is about “974”. “344” out of “974” (35%) are located in Yangon (FDA,
12
2016). In this study, by using the formula developed by Yamane (1973) with 90%
level of precision, the sample size is “78”. Thus, it may not be representative of
Myanmar as a whole or even of Yangon city as a whole.
In this study, sample random sampling method is applied. Although sample
size is “78”, “84” businesses are randomly selected in this study. The analysis is
conducted by groups of businesses such as small, medium, and large. The firm‟s size
is classified based on the number of employees employing in the businesses according
to the revised private industrial enterprise law (2011).
Since the study‟s major focus is on the marketing mix elements (functional
level strategy), this study does not consider the corporate level strategies, business
level strategies and other functional strategies such as production, finance, human
resources, buying, etc. In addition, this study only focuses on purified drinking water
manufacturing businesses that are located in Yangon. There are various approaches to
marketing strategies such as competitive marketing strategies (Miles and Snow,
1978), product/market mix strategies (Ansoff, 1957), generic strategies (Porter, 1996)
and so on. However, in this study, the scope is limited to marketing mix elements
such as product, price, place, and promotion (Kotler 2006).

1.7 Organization of the Study

This study consists of five chapters. Chapter one is the introduction which
includes rationale of the study, problem statement, research questions, objectives of
the study, hypotheses of the study, scope and method of the study and organization of
the study. Chapter two is concerned with the theoretical framework related to
marketing mix and performance. The aim is to build up a comprehensive framework
for the first part of the research frame work with the marketing mix and performance.
After that, analytical framework is established. Chapter three presents research
methodology which consists of sampling procedure, pilot study, reliability and
validity test, research instrument, data collection and data analysis method,
assumptions of multiple linear regressions, dummy variables and interactions in
regression analysis. Chapter four examines effect of business characteristics on
marketing mix activities, and marketing mix activities on performance of purified
drinking water manufacturing businesses in Yangon. In this chapter, the results of the
analysis are explained in detail. Finally, chapter five reveals conclusions concerning
findings and discussions of marketing mix practices of purified drinking water
13
manufacturing businesses, suggestions and recommendations which are concerned
with the future development of purified drinking water manufacturing businesses in
Myanmar, and needs for further study.

14
 Chapter 2
Theoretical Background of the Study

This chapter presents the theories and concepts that form the theoretical
framework of the study. The aim of this chapter is to review theories and concepts of
the marketing mix and performance. The output of the observation is a conceptual
framework of the study, which forms the basis of using analytical study on the
marketing mix of the purified drinking water manufacturing businesses.

2.1 Concept of Marketing Mix

Marketing mix means the product, distribution, promotion and pricing
strategies to produce and carry out exchanges and achieve the target markets.
“Marketing Mix – interrelated actions and solutions to meet consumer needs and to
achieve the company‟s marketing goals, a whole” (Sereikiene and Abromaityte,
2013). “Marketing mix – a set of relevant factors and solutions that enable customers
to meet the (national) needs and achieve the goals set by the company (Pruskus,
2015). According to Singh (2016), marketing is a complex range of marketing mix
solution variables used in businesses seeking to sell their goods and services.
According to some authors cited by Goi, 2009:
“Marketing mix is originating from the single P (price) of
microeconomic theory (Chong, 2003). McCarthy (1964) offered the
“marketing mix”, often referred to as the “4Ps”, as a means of translating
marketing planning into practice (Bennett, 1997). Marketing mix is not a
scientific theory, but merely a conceptual framework that identifies the
principal decision making managers make in configuring their offerings to
suit consumers’ needs. The tools can be used to develop both long-term
strategies and short-term tactical programmes (Palmer, 2004)”
According to Riaz (2011) defined marketing mix as a set of controllable
marketing tools that a company uses to create a desired response in the targeted
market. Set of these tools is generally referred to as 4P‟s of Marketing, being Product,
15
Price, Promotion and Place. Rad, Akbari (2014) also described that it is meant that the
four Ps (product, price, place, promotion) should have an established and coordinated
systematic approach in order to have effective influence on persuading the customers.
In other words, the right product at affordable prices is accompanied by better
distribution and use of appropriate communication techniques and they act together in
customers‟ views.
Singh (2012) defined marketing mix as the combination of different marketing
decision variables being used by the firm to market its goods and services. From this
point of view, decision to combine marketing practices or activities should follow to
identifying the market and gathering the basic information about it. An optimum
combination of all marketing ingredients will lead businesses to realize performance
by profit, sales volume, market share, and return on investment etc.). Therefore, to
satisfy needs of customers, businesses make decision related to the product, its price,
distribution/place and promotion, and the four of the group is considered to be the key
marketing mix elements also called – “4P” marketing mix. However, these marketing
mix elements that work in isolation could be supported by research studies on effect
of marketing mix on performance.

2.2 Marketing Mix Elements

According to the theoretical aspects on marketing mix as mentioned above, it
is clear that marketing mix consists of four elements namely product, price,
promotion, and place/distribution. Although these four are described as elements of
marketing mix, these should be viewed as practices or activities because marketers
usually decide how to develop the action plan upon these four to be practiced in
markets. Marketers usually consider how to create a product at the conception stage,
then they decide how to price, how to distribute, and how to promote this product to
fulfill the needs of targeted customers. In this study, the concept adapted is that the
marketing mix is a set of controllable practices (product, price, place, and promotion)
that businesses use to produce the response they want from their target markets.
Figure (2.1) shows the marketing mix elements in detail.

16
 Figure (2.1) Four P Elements of Marketing Mix

Marketing

Product Target
Product variety Place
Quality Channels
Design Coverage
Features Price Locations
Brand name List price Promotion Inventory
Packaging Discounts Sales promotion Transport
Sizes Allowances Advertising
Services Payment period Sales force
Credit terms Public relations
Direct marketing

Source: Kotler (2000)

According to this figure, the first element of marketing mix is product which is
considered as the core of the marketing strategy. Product is usually a combination of
goods, services, and even people (Ferrell & Hartline 2002). Strategic pricing is the
second element which consists of three major driven factors such as cost, market, and
competitor driven pricing (Nagle, Hogan, & Zale 2000). Moving product to the right
place in the right time and cost-efficient manner by efficient system is to be adopted
by business management (Vignali, 2001). Promotion activities are needed for
businesses to communicate the feature and the benefits of products to their intended
markets, and promotion mix in a particular marketing strategy which depends on the
nature of the promoted products (Czinkota, Michael, Ronkainen, & Ikka,2002).

(a) Product
Kotler & Armstrong (2006) defined a product as anything that can be offered
to a market for attention, acquisition, use, or consumption that might satisfy a want or
need. Many attributes of a company‟s products including brand name, quality,
17
newness, and complexity can affect consumer behaviour. The physical appearance of
the product, packaging, and labeling information can also influence whether
consumers notice a product, examine it, and purchase it. One of the key tasks of
marketers is to differentiate their products from those of their competitors and create
consumer perceptions that the product is worth purchasing (Peter & Donnally, 2007).
Product involves considerably more than just producing goods or services and
focuses on benefits. It includes decisions about package design, brand names,
trademarks, warranties, product image, new-product development and customer
service (Boone, 2007).
When organizations are trying to differentiate themselves, this can be achieved
by having a range of products (product mix or product assortment), means of
branding, packaging and labeling, after sales service and customer service (Levitt
1983, Ennew & Watkins 1992, Kotler 2000, Baker 2000 and McDonald 2002). In this
study, offering product lines, new product development, customer service, unique and
attractive packaging, packaging sizes, labeling and developing long-term relationship
with key customers are included in the product variable. All these activities of product
variable are being practical in purified drinking water manufacturing businesses in
Myanmar, especially in Yangon.

(b) Pricing
Pricing is one of the 4 Ps outlined in the marketing mix activities of a
company. The price of products and services often influences whether consumers
purchase them at all and, if so, which competitive offering is selected. For some
offerings, higher prices may not deter purchase because consumers believe that the
products or services are of higher quality or are more prestigious. However, many of
today‟s value-conscious consumers may buy products more on the basis of price than
other attributes.
Price is the only one of the four Ps that produces revenue. In setting prices, a
company follows a six-step procedure: (1) select the pricing objective, (2) determine
demand, (3) estimate costs, (4) analyze competitors‟ costs, prices, and offers, (5)
select a pricing method, and (6) select the final price (Kotler, 2000).
There are many variables (Tung, Capella, & Tat, 1997; Carson, David,
Gilmore, Audrey, Cummins, Darryl, 1998) that have important effects on price setting
which many of them are not seen under a business control (Tung et al 1997). These
18
variables, which are exclusive rather than inclusive, are the unique characteristics of
product (Levitt 1981; Berry, Leonard, Yadav, & Manjit, 1996; Kasper, Helsdingen, &
Vries, 1999; Zeithaml and Bitner 2000), the supply and demand patterns in the
marketplace (Marn and Rosiello 1992), understanding the costs structure in the
company (Howcroft and Lavis 1989), the ability of the company to have some
elements (superior customer service) that differentiate itself from its rivals,
competitors pricing strategies (Arnold, Danny, Hoffman, McComick, & James, 1989;
Ziethaml and Bitner 2000), and different environmental forces in the product business
environment in which it operates (Cannon, Hugh, Morgan, & Fred, 1990; Mitra and
Capella 1997).
Zeithaml (1988) discussed the concept of perceived value. Exploratory
research has shown that respondents who have discussed the concept of perceived
value have used the value concept in different ways. An increasing number of
companies base price on customers‟ perceived value. They see the buyers‟
perceptions of value, not the seller‟s cost, as the key to pricing. Then they use the
other marketing-mix elements such as advertising, to build up perceived value in
buyers‟ minds.
Mitra and Capella (1997) defended the price differentiation approach.
Differential pricing involves selling the same product to different buyers under a
variety of prices. This is the practice of charging different buyers different prices for
the same quantity & quality of products or services. Differential pricing works
because the market is heterogeneous or simpler differences in reaction to price
existing among consumers or consumer segments in the market.
They argue that price discrimination is affected by two broad categories;
intrinsic factors and extrinsic factors. Intrinsic factors are criticality, customization of
product, demand fluctuations, products characteristics. Extrinsic/environmental
factors refer to the nature of the served market and degree of competition. The nature
of the target market refers to the elasticity of demand and prices charged in a market
segment that is being served by the company.
Companies do not usually set a single price, but rather a pricing structure that
reflects variations in geographical demand and costs, market-segment requirements,
purchase timing, order levels, and other factors. Several price-adaptation strategies are
available: (1) geographical pricing; (2) price discounts and allowances; (3)
promotional pricing; (4) discriminatory pricing, in which the company sells a product
19
at different prices to different market segments; and (5) product-mix pricing, which
includes setting prices for product lines, optional features, captive products, two-part
items, by-products, and product bundles (Kotler, 2000).
After developing pricing strategies, firms often face situations in which they
need to change prices by initiating price cuts or price increases. In these situations,
companies need to consider how stakeholders react to price changes. In addition,
marketers must develop strategies for responding to competitors‟ price changes. The
firm‟s strategy often depends on whether it is producing homogeneous or
nonhomogeneous products. Market leaders who are attacked by lower-priced
competitors can choose to maintain price, raise the perceived quality of their product,
reduce price, increase price and improve quality, or launch a low-price fighter line
(Kotler, 2000).
In this study, setting prices based on the offering something different, different
customer groups or different target market segments, customization, customers‟
ability to pay, competitors‟ price, customers‟ perceived value, price promotions and
discounts and price changes are included in the pricing activities. All these activities
of pricing variable are carried out in some degree by purified drinking water
manufacturing businesses.

(c) Place
Kotler and Armstrong (2006) define place or distribution as a set of
interdependent organizations involved in the process of making a product available
for use or consumption by consumers. Place strategy calls for effective distribution of
products among the marketing channels such as the wholesalers or retailers (Berman,
1996). Place strategy in retail stores includes more than the question of how
consumers access the stores and it also includes the availability of products in such
stores (Kotler, Ang, Leong and Tan 2003). A store can position or reposition a
product by locating that product within a store. The dimensions of place are channels,
coverage, assortment, location, inventory, and transport (Borden, 1984).
Distribution is a fundamental element in the marketing mix (Harrison 2000)
by which companies can cover target markets and gain access and deliver services to
customers (Devlin 1995; Easingwood and Storey 1996; Shumrak 1996). The
distribution element has a profound role on company operations, which may enable

20
the company to differentiate itself from rivals and achieve a competitive advantage in
the marketplace (Friars, Gregor, & Reid 1985; Devlin 1995; Shumrak 1996).
Using multiple channels provides access to multiple market segments
(Easingwood and Storey 1996). Furthermore, any employee in the company, either
external e. g., intermediaries or internal e. g., employees, in contact with the customer
is potentially in a personal selling role (Tina, 2000). In the past, many companies sold
to a single market through a single channel. Today, with the proliferation of customer
segments and channel possibilities, more companies have adopted multichannel
marketing. Multichannel marketing occurs when a single firm uses two or more
marketing channels to reach one or more customer segments.
Easingwood and Storey (1996) found that there were four clear-cut and very
different distribution strategies. They are intermediary strategy, balanced strategy,
arm‟s length strategy and network strategy. Intermediary strategy is using a single
channel strategy with occasional support from direct response advertising. Balanced
strategy is the most widely used strategy drawing on all the distribution methods. It is
the only strategy that made significant use of the direct selling root. The emphasis of
arm‟s length strategy is put on using three main methods which are direct response
advertising, direct mail, and intermediaries without using any direct personal contact
between the firm and its customers. Network strategy is the second most widely used
employed strategy by making a heavy use of networks, either the company network or
a network of intermediaries.
Arnold, Wheeler, Abernathy and Bates (1999) argue that there has been an
increasing use of direct response marketing channels which include telemarketing,
direct mail, and the Internet based marketing. It is expected that these methods are the
most important methods in the near future. The Internet is an important direct
marketing tool which can afford electronic services 24 hours a day, 7 days a week and
365 days a year and it is an effective way to market information to different market
segments of consumers (Arnold et at., 1999).
In this study, using multi-distribution channels, channel member relationship
based on network strategy, recruitments and trainings of all marketing and sales
personnel, retaining high qualified salespersons, using electronic distribution channels
and choosing effective and efficient transportation mode, providing proper delivery
routes and maintaining contact with delivery drivers are comprised in place variable.

21
Almost all of these activities are applied in some extent by purified drinking water
manufacturing businesses.

(d) Promotion
Promotion is the avenue by which businesses provide information about
products, prices, and different delivery channels to a wide range of audiences.
Promotion can provide an opportunity to companies to differentiate themselves at
corporate and brand levels (Thwaites, Watkins, & Wright 1998). Tina (2000) has
presented six major promotional tools that can be utilized by companies to enable
them to communicate with different audiences. These promotional tools are
advertising, personal selling, publicity and public relations, sales promotion, direct
marketing, and sponsorship. Promotions such as price discounts and buying one get
one free are also effective promotional tools for encouraging consumers to buy more.
In general, firms can use two types of communication channels. They are
personal and non-personal communication channels. Personal communication
channels involve two or more persons communicating directly with each other face to
face, person to audience, on the telephone, or through e-mail. These channels derive
their effectiveness through the opportunities for individualizing the presentation and
feedback. Personal selling is the most expensive form of promotion (Adebisi &
Babatunde, 2011). Companies that use more of personal selling are said to be
adopting push strategy while those of advertising are using pull strategy. Personal
selling has three distinctive qualities. They are personal confrontation (it involves an
immediate and interactive relationship between two or more persons), cultivation (it
permits all kinds of relationships to spring up, ranging from a matter-of-fact selling
relationship to a deep personal friendship) and response (it makes the buyer feel under
some obligation for having listened to the sales talk).
People in businesses have a central role to play in promoting products. Ennew
and Watkins (1992) argue that that personnel selling is an integral component of any
marketing mix, and is of critical importance because the essence of the delivery
system is based on people. In the same context, Thwaites, Watkins, & Wright, (1998)
views personal selling as an important element in the promotion which can contribute
to a range of objectives such as gaining acceptance of new products by existing
customers, attracting new customers for existing products, maintaining customers

22
loyalty, gathering market information, and facilitating future sales by provision of
advice to prospects or influencers (Thwaites , Watkins, & Wright 1998).
Non personal channels include media, atmospheres, and events. Media consist
of print media (newspapers, magazines, direct mail), broadcast media (radio,
television), electronic media (audiotape, videotape, CD-ROM, DVD, Web page), and
display media (billboards, signs, posters). Most non personal messages come through
paid media. Direct marketing is defined as "an interactive marketing system of
marketing which uses one or more media such as mail, fax, email, World Wide Web
and other non-personal contact tools to communicate directly with or solicit a direct
response from specific customers and prospects" (Tina, 2000).
Zeithaml and Bitner (2000) focus on what the company promises in its
marketing communications. Customers' expectations are shaped by uncontrollable and
company controlled factors. Uncontrollable factors are those variables that cannot be
controlled by the company which can influence customer expectations about the
company's services e.g., word-of-mouth communications and customers' experiences.
Controllable variables are advertising, personal selling, and promises made by
personnel.
Uncontrollable and controllable variables play a crucial role in shaping
customers‟ expectations and perceptions about the company and its products
(Zeithaml and Bitner 2000). In this study, advertising based on demand/supply
condition, through mass media marketing, web/internet advertising, public relation by
establishing relationship with influencing organizations, direct marketing, using sales
forces, discounts, free sample, free of charge and paying competitive commission are
combined to design the promotion variable. All or some of these activities are
performed by purified drinking water manufacturing businesses in Yangon.

2.3 Empirical Studies of Marketing Mix and Performance

In global market, bottled water marketers emphasize close links with nature,
name and bottle label, design and wording to launch their products internationally.
Major transnational food companies such as Nestle, Pepsi and Coca-Cola have all
moved into water. More than 2900 brands of bottled water are produced in over 115
countries and the majority of these emphases on some kind of link between product
and place (John, 2006).

23
 Consumers choose to drink bottled water for several reasons. In many cases, it
is because the consumers think bottled water tastes better than tap water, which they
think is a sign for better quality. Furthermore, consumers are very health conscious, so
they perceive bottled water as safer and of better quality (Ferrier, 2001). The
increasing usage of bottled water represents a change in ways of life, for example, the
increasing urbanization deteriorates the quality of tap water, but at the same time, the
increasing standard of living enables people to drive far and bring home heavy and
expensive bottled water (Ferrier, 2001).
Dupont (2005) claimed that while bottled water purchases may be due to
convenience, health concerns may also play a role. Rosemann (2005) pointed out that
drinking water demand depends on household‟s income. According to Gonzalez
(2005), in this study points out that choosing bottled water captured health related,
purity, relaxing, refreshing, image, energizing, price and taste.
Anitha (2011) stated that the people‟s consumption of packaged water has
increased considerably. To attract consumers, the companies producing packaged
water give advertisements and have good distribution network for marketing the
same. Ogbuji (2011) found that branding is one of the most intriguing marketing
strategies used for the purpose of winning or overcoming competition; its efficacy is
not in doubt.
Joanna (2011) concluded that bottled water was the primary source of drinking
water for almost all households. Veidung (2011) presented that there is a relationship
between bottled water‟s design and the consumers‟ perception of the quality of the
water contained in the bottle as well as consumers‟ purchase intention. Although the
entrepreneurship literature criticizes smaller firms as lacking in marketing abilities
and different from larger firms, the findings of this study argue that in a modern
world, in fact, there were similarities in practice across firm size. In terms of
performance measurement, the results of the study show that smaller firms tend to
rely primarily on financial indicators. Larger firms are more comprehensive in this
task. Although both types of firm focus on financial indicators, smaller firms do not
use other types of measures (especially competitive comparisons) to the same extent.
Moreover, they also presented that the current business practices of both smaller and
larger firms involve managing the marketing mix to attract customers. They also
emphasize the development and management of personal relationships with individual
customers and efforts to position the firm in a net of various market relationships.
24
 With respect to the previous study on marketing strategy and performance,
Nashwan & Abdullah (2015) revealed that all the marketing mix variables have an
impact on the overall firm performance. In addition, the author also asserted that
product homogeneity has moderating effects on firm performance. Moreover,
Mamoun & Awwad (2003) revealed that the marketing strategy elements have a
positive and significant effect on the companies' performance measured by financial
and non-financial (marketplace and customer) criteria. The effect of the marketing
strategy components was found to have varied according to the companies'
performance criteria measured by financial and, non-financial (marketplace and
customer based) criteria.
In addition, Yiming (2005) presented that long-term differentiation marketing
strategy, R&D as a percentage of sales, and years in business are positively associated
with a small firm‟s business performance in China.
Akinyele (2011) asserted that strategic marketing is a driver of organizational
positioning in a dynamic environment, and that it helps to enhance the development of
new product/service for existing markets. With respect to strategic marketing and its
effect on business performance, Matti 2006) revealed that the effect of inside-out
marketing capabilities on financial performance is the strongest, followed by
innovation orientation, outside-in marketing capabilities and market orientation.
Effective marketing mix have greatly contributed towards improved business
performance in different aspects of a firm such as the growth in sales volume, the
level of the return on investment as well as maintenance of the goodwill. This implies
that effective marketing mix strengthen the level of competitiveness and the market
share.
Cravens & Piercy (2009) stated that the performance marketing is the
contribution of the implementation of marketing strategies and the creation of value
on corporate profits measured by sales, operating profit, and market share. According
to Haghighinasab, Sattari, Ebrahimi and Roghanian (2013) cited by Ebitu (2016),
performance can be measured based on growth, market share and profitability.
Growth reflects performance trends in terms of sales and market share gains. Growth
in sales and market share are important to a business to ensure long-term validity and
resources availability.
Venkatraman (1990) argued that in strategy research, profitability (efficiency
orientation) is the most common dimension of performance. In the same vein, Day
25
and Wensley (1988) argue that the most common indicators of marketing
effectiveness and competitive advantage are market share and profitability. According
to Laitinen (2002), performance can be defined as the ability of an object to produce
results in a dimension determined a priori, relative to a target.
Profitability reflects an efficiency of current performance. Some marketing
authors such as Hunt and Morgan (1995) have viewed profitability as the ultimate
organizational outcome and it is commonly used in strategic marketing studies. Fahy,
Graham, Cox, Beracs, & Jozsef (2000).sought to use relative profitability measures
and to supplement them with additional market-based performance measures. Four
performance criteria were used, two financial (profit and ROI) and two market-based
measures (sales volume and market share).
Market performance can be measured by sales growth or market share. There
has been much interest in the evaluation of company's performance from both
academic and practitioners' perspectives (Dess and Robinson 1984). Both academic
literature and perspectives of managers normally view a business as successful if it
achieves sound financial performance and enhances its position in the marketplace.
The study focuses on profit, sales revenue, production volume and number of
employee because they are widely recognized as the most important indicators of
performance (Capon, Farley, and Hoenig, 1990 and Kaplan and Norton, 1996) and
because of their relevance regardless of strategy level or strategy type.

Product and Performance

Kotler et at., (2003) sees a product as about quality, design, features, brand
name and sizes which influences purchase. Mustapha, (2013) also assert that product
is the physical appearance of the product, packaging, and labelling information, which
can influence behaviour whether consumers notice a product in-store, examine it,
and/or purchases it. However, in all circumstances a product's quality should be
consistent with other elements of the marketing mix. Product influences have a
significant impact on business performance (Gbolagade & Ouewale 2013). Similarly,
prior researchers have clearly suggested that product influences have a significant
impact on business performance (Owomoyela, Oyeniyi, & Ola, 2013).

26
 Price and Performance
Kotler et.at (2003) defines price as a cost of producing, delivering and
promoting the product to be exchanged by the organization. Zeithaml (1988) is of the
view that monetary cost is one of the factors that influence consumer‟s perception of a
products value. Price can be stated as the actual or total rated value of a product which
is up for exchange. The price set for product or service plays a significant role in its
marketability.
Pricing for products or services that are more commonly available and
acceptable to the market is more elastic, meaning that unit sales go up or down more
responsively in reaction to price changes. Factors that influence price elasticity are
supply and demand, the availability of the product or service and of good substitutes,
their respective prices, and the extent to which the product or service is desired.
Price component can be controlled by the entrepreneur. Although there could
be a number of value propositions, businesses could find the greatest likelihood for
business success by competing with high price, offering customers better value. As an
alternative, an effective market-entry strategy for a new business venture might be
pricing at the high end especially when the customer perceives the product or service
to provide greater customer value. In some instances, a business owner might presume
that their customers always purchase on the basis of lower price. Contrary to that
belief, however, experience often shows that customers often pay significantly higher
prices for better service, better quality, preferred brand or image, and customer
convenience. In a study by Owomoyela et al, (2013) they establish significant
relationship between price and business performance.

Place and Performance

McCharty, Perreault and Cannon (2011) define place as any way that the
customer can obtain a product or receive a service. They also defined distribution as
another name for place. According to them, it is the third element of the marketing
mix, and it encompasses all decisions and tools which relate to making products and
services available to customers. Armstrong, Gary, & Kotler (2011) also define place
or distribution as a set of interdependent organizations involved in the process of
making a product available for use or consumption by consumers. Owomoyela et al.
(2013) agreed that place has significant effect on business performance. Many

27
businesses effectively leverage the place component of the marketing mix through
effective use of location variables.

Promotion and Performance

Promotion appears as an issue of how to create an optimal mix of marketing
communication tools in order to get a product's message and brand from the producer
to the consumer. Businesses that understand promotions as part of an integrated
marketing campaign recognize the importance of this. Integrated marketing links
public relations, advertising, direct marketing, and other marketing activities in a
coordinated fashion. In the same vein, Zeithaml, Berry, & Parasuraman (1996)
describes promotion as part of specific effort to encourage customers to tell others
about their sundries. They also report that promotion appears as an issue of how to
create an optimal mix of marketing communication tools in order to get a product's
message and brand from the producer to the consumer. Kotler, et at (2003) discovers
that promotions have become a critical factor in the product marketing mix which
consists of the specific blend of advertising, personal selling, sales promotion, public
relations and direct marketing tools that the company uses to pursue its advertising
and marketing objective.
Ferle and Steven (2006) found that the effectiveness of product advertisement
in television is still doubtful. Ailawadi & Bari (2006), found that the net impact of
promotions is still negative. In another research, Gedenk and Scott (1999) reported
that in-store price promotions are associated with negative purchase event feedback
compared to non-promotion purchases.

2.4 Conceptual Models of Previous Researchers

This study‟s conceptual model comes out from review on some conceptual
models developed by previous researchers. This study‟s conceptual model is adapted
to three previous researchers‟ models which are closely related to basic assumptions
of this study. The first model is not limited to a specific industry; its focus is on
Chinese owned businesses running in Jordan. The second model is about the
environment, marketing strategies including marketing mix strategies, and
performance in property (real estate) industry. The third model emphasized on
influencing factors, marketing mix and performance of cloths exporting businesses.

28
 The first model adapted by this study is developed by Lilin, Muhammad, &
Younes, (2013), and this model is shown in Figure (2.2).

Figure 2.2 Factors Influencing Marketing Mix and Its Effect on

Performance

Broad Environmental Factors

- Basic infrastructure
- Economic
- Technology
- Political / Legal
- Socio-Cultural Marketing Mix Marketing
- Demographical characteristics - Product Performance
- Price - Total sales
Task Environmental Factors - Promotion volume
- Business customers - Place - Market share
- Business suppliers - Total revenue
- Business competitors - Profitability
- Business intermediaries
- Government agency and
administrators

Company Demographic Characteristics

- Company type
- Company age
- Company size : Capital
- Company size : Number of employees

Source: Lilin, Muhammad, & Younes, (2013)

Figure (2.2) presents the factors influencing marketing mix, and the effect of
marketing mix on performance of Chinese owned businesses running in Jordan. Since
the first part of their research focus is to analyse the influence of host country‟s
environmental factors on firms‟ marketing mix, they accounted not only for the effect
of company‟s demographic factors but also the effect of broad environmental factors
and task environment factors on marketing mix of home country‟s companies.
Since this study focuses only on Myanmar companies running in Yangon, the
broad environmental factors such as political and legal, economic, social,
technological factors and demographic factors of citizens are neglected in this study.
Moreover, this study also excludes the effect of task environment factors such as
customers‟ information; forces from suppliers, competitors, intermediaries and
government agencies on marketing mix. The assumption of excluding these factors in
29
this study is that all the businesses analysed in this study are running in a specific
industry so that all the broad and task environment factors are same for this industry‟s
businesses. The marketing mix would be varied only with firms‟ characteristics. Thus,
this study only emphasizes on the effect of incumbent businesses‟ characteristics such
as type of ownership, firm‟s age, and firm‟s size on their marketing mix. Although the
previous study considered the firm‟s size by both capital amount and by number of
employees, this study considered only by number of employees due to difficulty of
availability of financial data.
This previous research approached marketing mix with four elements such as
product, price, place, and promotion. The same approach is adapted by this study. In
this study, the marketing mix of purified drinking water manufacturing businesses is
also assessed with four Ps (product, price, place/distribution, and promotion).
In this previous study, firm‟s performance is measured with four criteria such
as sales volume, sales revenue, profitability, and market share. In Myanmar, the
market share data of businesses running in various industries, especially in purified
drinking water industry, is very difficult to be obtained, and even if it is available, the
reliability and accuracy of data will be questionable. Instead of using the market share
as a criterion to measure performance, in this study, firm‟s growth by increase in
number of employees is taken into account. All other three criteria (sales volume,
sales revenue, and profitability) are used as the criteria to measure the performance.
However, instead of profitability, the data of increase in profit amount is used in this
study.
Although the time horizon to assess the effect of marketing mix on
performance is not mentioned clearly in this previous research, a relevant time
horizon for this study is identified by concerning industry‟s current market factors.
The time horizon to measure the effect of marketing mix on performance of purified
drinking water manufacturing businesses in Myanmar should not be long because of
the nature of product (consumable product), price sensitivity of most consumers, and
relatively faster response from customers to marketing practices of businesses.
Moreover, most marketers of purified drinking water inn Myanmar normally do not
devote much time to wait the return form changing in marketing mix. They have to be
flexible to change their marketing mix to respond to market. Thus, in this study, the
time horizon to measure the effect of marketing mix on performance is one-year
(during 2016 and 2017).
30
 The second model considered in this study is the model developed by Chih
(2003). This previous model is shown in Figure (2.3).

Figure 2.3 Conceptual Model of Organization-Environment-Strategy-

Performance (OESP)

Environment
- External environment (E)
- Internal environment (O)

Marketing strategies (S) Marketing performance (P)

- Product – market strategy - Sales growth
- Marketing programme - Sales growth per employee
- ROI (Return on Investment)
- ROS (Return on Sales)

Source: Chih (2003)

The model shown in Figure 2.3 pointed out those marketing strategies can be
seen with two approaches: product-market strategy approach and marketing
programme approach. Product-market approach is based on the product-market matrix
developed by Ansoff (1957). In this matrix, there are four product-market strategies
such as market penetration, market development, product development, and
diversification strategies which can be seen as non-price competitive strategies.
This study‟s scope does not cover the area of product-market strategies
practiced by purified drinking water manufacturing businesses. This study only
focuses on the second approach of previous research: marketing programme
approach. Marketers develop the marketing programme which consists of decisions
on marketing mix activities such as product development, pricing, distribution and
promotion practices. This study accounted for this second approach (marketing
programme or marketing mix approach) of previous research.

31
 In previous study as shown in Figure (2.3), the marketing strategies are
relating to both external environment and internal environment factors of businesses.
This previous research is limited to businesses running in the property market, and it
assumed that the perception on environment will be varied with firms‟ capabilities. In
this study, most respondent businesses are SMEs, thus their capabilities would not be
largely different between each other. Significant difference would be seen only in
firm‟s age and size. Moreover, the focus of this study is only on the effect of firm‟s
characteristics on marketing mix, and the effect of marketing mix on performance.
Thus, in this study, the effect of environment on marketing mix is excluded. However,
the relationship between marketing mix and performance analysed in previous
research is considered in this study. Although the performance is measured with sales
growth, sales growth by employees, return on investment, and return on sales in
previous research, this study accounted for more relevant measures such as sales
revenue, sales volume, profitability and number of employees. Instead of return on
sales and return on investment, profitability data is more available and also more
reliable in Myanmar. Sales growth per employee is also not relevant to measure firm‟s
performance in purified drinking water manufacturing businesses in Myanamr.
The third model adapted in this study is model developed by Erdil and
Ozdemir (2016), and this previous research‟s conceptual model is shown in Figure
(2.4).

Figure (2.4) Relationship between Marketing Mix Strategy and Drivers of

Export Performance

Firm
characteristics Export Performance
- Strategic
Environmental
performance
characteristics
Marketing mix strategy - Financial
International performance
commitment - Competitive
performance
International
experience
Source: Erdil & Ozdemir (2016)
32
 In this previous research; firm characteristics, environmental characteristics,
international commitment and international experience are considered as factors
influencing marketing mix and export performance of cloths exporting businesses in
Turkish. It also analysed the relationship between marketing mix and export
performance.
In this study, although the effect of firm‟s characteristics on marketing mix in
purified drinking water manufacturing businesses is considered; the effect of
environmental characteristics, international commitment and international experience
on marketing mix is not accounted. This study only focuses on domestic businesses
and only on domestic market, not on international businesses and international
market. Thus, influences of such factors are neglected.
In previous research, performance is measured with strategic performance,
financial performance, and competitive performance. Since these performance data
are collected with Likert scale questions, this approach is not adapted in this study
with intention for more validity and accuracy. In this study, the performance is
measured with scale type (approximate quantity) data. Thus, in this study, the
strategic performance and competitive performance are excluding.

2.5 Items to be Measured for Marketing Mix and Performance

The main sources of formulating the questions that are used for constructing
the research questionnaire are the examination of conceptualizations and previous
empirical studies, literature of marketing strategy formulation and companies'
performance measurement that have been conducted in different business contexts.
The most critical point in developing and designing a questionnaire is visiting and
revisiting the research objectives where a good research questionnaire is one that
accomplishes its objectives. Consequently, an operational definition for each variable
was constructed as precisely as possible, which enabled the researcher to develop the
questionnaire.
Questionnaire for marketing mix elements is developed mainly based on
previous papers. Items for product element - range of product, product quality and
new product development are recommended (Stanley & Eric, 2001). Customer service
item is recommended by Matti (2006). Items such as after sales services, packaging
and labeling are acquired from the previous study of Meghna & Fang (2012).

33
 Concerning with the price element, items - cost based pricing and perceived
value pricing are recommended by Matti (2006). Rugut (2012) recommends
competition based pricing, differentiation based pricing and discrimination based
pricing for price element.
In case of place element, company sale force and intermediaries are
recommended by Matti (2006). Meghna & Fang (2012) recommends multi-
distribution channel, telemarketing distribution, using direct mail and using internet to
be included in the place activities.
In concern with the promotion element, advertising, personal selling, publicity
and public relations are recommended by Stanley & Eric (2001). In addition, sales
promotion and direct marketing are recommended by Meghna & Fang (2012). In case
of performance measurement, profit, sales revenue, sales volume and numbers of
employee are recommended by Stanley & Eric (2001), Chih (2003) and Lilin,
Muhammad, & Younes (2013). Thus this source is based, and the four items are
applied to measure the performance relative to last financial year.

2.6 Conceptual Model of the Study

The conceptual model of this study is developed by concerning the factors
mentioned above with theoretical aspects, and previous researchers‟ findings. The
conceptual model of this study is depicted as shown in Figure (2.5).

34
 Figure (2.5) Conceptual Model of the Study

Firm Performance
Sales Revenue
Marketing Mix Sales Volume
Firm’s Characteristics
Product
Age
Price Firm Performance
Ownership Form
Place Profit
Size
Promotion
Firm Performance
Number of Employees

Source: Own Compilation

In this study, the two major assumptions are developed: the firm‟s
characteristics such as firm‟s age, ownership form and firm‟s size are relating to
marketing mix; and there is an effect of marketing mix on firm‟s performance in
purified drinking water manufacturing businesses in Yangon. The concept adapted is
that the marketing mix is a set of controllable practices (product, price, place and
promotion) that business use to produce to produce the response they want from their
target market (Raiz, 2011)

2.7 Analytical Framework of the Study

To prove the background concept of this study, the empirical tests are taken by
using an analytical framework. The analytical framework is based on the above
mentioned models of previous researchers and conceptual model. The analytical
framework of this study is illustrated in Figure 2.6.

35
 Figure (2.6) Analytical Framework of the Study
Marketing Mix
Product
- Product development
- Product quality
- Branding
- Packaging
- Labeling
- Customer service

Price
- Competition based pricing
- Differentiation based
pricing
- Discrimination based
pricing
Characteristics of - Perceived value pricing
- Price discount and Performance
Businesses - Sales Revenue
H1 allowance pricing
-Size - Sales Volume
H4 - Number of
H2
-Ownership Form Employees
H3 Place - Profit
-Age - Multi-distribution channel
- Intermediaries
- Company sale force
- Telemarketing distribution
- Electronic distribution
channel
- Transportation

Promotion
- Advertising
- Sales promotion
- Personal selling
- Direct marketing
- Publicity and public
relations

Source: Own Compilation

The analytical framework of this study consists of three main parts. They are
business characteristics, marketing mix and performance. Business characteristics
consist of size, ownership form and firm‟s age. The elements of marketing mix are
product, price, place and promotion. The measurements of performance are profit,
sales revenue, sales volume and number of employees.
36
 To analyse the marketing mix element (product), the factors considered as
question items in questionnaire are product development, product quality, branding,
packaging, labeling, warranty, and customer service. For second element of marketing
mix (price) is analysed with the factors such as competition based pricing,
differentiation based pricing, discrimination based pricing, perceived value pricing,
and price discount and allowance pricing. The third element (place) is assessed with
the factors such as multi-distribution channel, intermediaries, company sale force,
telemarketing distribution, electronic distribution channel, and transportation. The
forth element of marketing mix is analysed with the factors such as advertising, sales
promotion, personal selling, direct marketing, and publicity and public relations. In
this study, the extent of manufacturers‟ commitment on each of the marketing mix
elements is analysed. In the study, the relationships between firm‟s characteristics and
marketing mix, and the effect of marketing mix on firm‟s performance are also
analysed.

37
 Chapter 3
Research Methodology

This chapter consists of six components such as sampling procedure, pilot

study, reliability and validity test, research instruments, data collection and data
analysis method, and testing assumptions of multiple linear regression method.

3.1 Sampling Procedure

According to the FDA statistics (August, 2016), total number of purified
drinking water manufacturing businesses in Myanmar is (974). Among them (344) are
located in Yangon. Specifically, these businesses are situated in (24) townships in
Yangon region. This is the targeted population of the study.
To identify the sample size, the following formula of Yamane (1973) is
applied:

In this formula, the sampling deviation (e) is 0.1 (90% of level of precision).

Thus, the sample size is 78.

Although the sample size is “78”, the study focuses on “84” businesses.
Sample design employed in this study is simple random sampling.
The findings cannot generalize for all purified drinking water manufacturing
of Myanmar. However, the selected area is the most purified drinking water
manufacturing businesses populated area of Myanmar. Moreover, Yangon is well-
known city where well-known branded purified drinking water manufacturing
businesses are located. Moreover, there are relatively more opportunities (e.g., easy
access to raw materials, population density, modern lifestyles and so on) are attractive
in Yangon for purified drinking water manufacturing businesses.

38
3.2 Pilot Study
Pilot survey is conducted with two objectives: to modify the questionnaire and
to set the hypotheses of this study. To complete and to validate the questionnaire, the
pilot study is conducted during 2017 by making personal interviews with 15 owners /
marketing managers who are responsible for designing marketing strategy. After pilot
study, the questionnaire (first version) is modified by removing some question items
which are ambiguous and unnecessary to be included in final version. The
modifications made after pilot can be seen in Table (3.1).

Table (3.1) Question Items Removed After Pilot Study

Sr. No. Variable No. of Question No. of Question Items
Items Removed Left after Removing
1 Product 6 7
2 Price 2 8
3 Place 1 9
4 Promotion 4 10

Source: Survey Data (2017-2018)

As shown in Table (3.1), questions for all four variables are modified
after the pilot study.

3.3 Reliability and Validity Test

The validity and reliability of research measures are crucial parts of any
survey, which must be assessed and examined in order to make sure of the goodness
of the measures used in the research. A reliable research instrument may not be
necessarily valid.
The reliability is in need but it is not a sufficient condition for validity. The
reason for this is that a reliable measure may be reliable but it can be measuring
something else other than what it is originally designed to measure. This suggests that
assessing the validity of a research instrument is more difficult than assessing its
reliability. However, both validity and reliability are crucial aspects for measures that

39
are interconnected and overlap to some degree (Moser and Kalton 1971; Oppenheim
1992; Sekaran 2000; Churchill & Gilbert, 2001).
In this study, the questionnaire is developed by referring to the previous
research papers. After the pilot study, the items with Likert type scale are tested for
reliability by calculating the Cronbach‟s Alpha values. Such items are also tested for
validity with factor analysis.

3.3.1 Reliability Test

For reliability of data collected from 84 respondents, the Cronbach‟s Alpha
values are tested for all variables for which Likert type scale questions items are
developed. The Cronbach‟s Alpha values of marketing mix and performance are
shown in Table (3.2).

Table (3.2) Reliability of Data for Marketing Mix Elements

Sr. No. Variables Cronbach’s Alpha No. of Items
1 Product 0.837 7
2 Price 0.854 8
3 Place 0.925 9
4 Promotion 0.910 10
5 Performance 0.946 4

Source: Survey Data (2017-2018)

As shown in Table (3.2); Cronbach‟s Alpha values for product, price, place
and promotion and performance are greater than 0.71. Thus, the reliability of data for
these variables is acceptable.
In this study, the performance is measured with measurements (profit, sales
revenue, sales volume and number of employees). Performance growth percent
relative to last financial year is applied. The reliability test is also conducted for this
measure. The Cronbach‟s Alpha value for this measure of four items is 0.946. Thus,
the reliability is strong for this variable.
1
The reliability coefficient of .70 or higher is considered “acceptable” in most social science
research situations (Cohen R, Swerdlik M, 2010)

40
3.3.2 Validity Test
In this study, the question items‟ validity is also tested are also tested with
factor analysis. As preliminary analysis, the R-matrix (correlation matrix) is checked.
The top half of this matrix contains the Pearson correlation coefficient between all
pairs of questions whereas the bottom half contains the one-tailed significance of
these coefficients. First, the significance values are scanned for any variable for which
the majority of values are greater than 0.05. Then, the correlation coefficients are
scanned for any greater than 0.9. If any are found then check the determinant of the
correlation matrix to avoid the problem of singularity in the data. The determinant
should be greater than the necessary value of 0.00001. If the determinant value is
greater than 0.00001, multicollinearity is not a problem for these data. If there is
problem, it will be needed to eliminate variables causing the problem.
After preliminary analysis, the other important parts should be evaluated.
These parts are Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy and
Bartlett‟s test of sphericity. The KMO statistic varies between 0 and 1. A value of „0‟
indicates that the sum of partial correlations is large relative to the sum of
correlations, indicating diffusion in the pattern of correlations. Thus, factor analysis is
likely to be inappropriate. A value close to 1 indicates that patterns of correlations are
relatively compact and so factor analysis should yield distinct and reliable factors.
Kaiser (1974) recommends accepting values greater than 0.5 as acceptable. Values
below this should lead to either collect more data or rethink which variables to
include. For factor analysis to work, the test should be significant with value less than
0.05 from Bartlett‟s measure. If the significance value is less than 0.05, there are some
relationships between variables and the R-matrix is not identity matrix. Thus, the
factor analysis will work for the test.

Validity Test for Marketing Mix

There are 4 variables (marketing mix) which are assumed as factors
influencing performance of purified drinking water manufacturing businesses. The
factors (with Likert type scale) applied in this study to test their influence on
performance of purified drinking water manufacturing businesses are product, price,
place and promotion. The important indicators of factor analysis for these 4 variables
are shown in Table (3.3).

41
 Table (3.3) Validity of Data for Marketing Mix Elements
Sr. No. Variables Determinant KMO Significance
1 Product 0.069 0.825 .000
2 Price 0.041 0.844 .000
3 Place 0.001 0.852 .000
4 Promotion 0.002 0.855 .000
5 Performance 0.011 0.819 .000
Source: Survey Data (2017-2018)

This study assumes that marketing mix can influence the performance of
purified drinking water manufacturing businesses in Yangon. The marketing mix
(with Likert type scale) applied in this study to test their influence on performance of
purified drinking water manufacturing businesses are product, price, place and
promotion.
The data for the profile of purified drinking water manufacturing businesses
and marketing managers or owners of these businesses are not collected with Likert
type scale. The profile is in category type. The data are converted into 1,2,3,4 and 5.

Product
According to the feedback from pilot survey with 15, the question item
number (2) which is “our company develops products that have broad market appeal”,
number (3) which is “our company achieves or maintains superior product quality”,
number (4) which is “our company‟s staff possess hygiene certificates”, number (7)
which is “our company provides superior post-sale service quality”, number (10)
which is “our company‟s products are packed in hygienic condition” and number (11)
which is “our company establishes bottle machines within purified drinking water
plant compound for hygiene reason” are quite ambiguous for respondents, and many
respondents cannot give answer for these items. Thus, these items are removed from
questionnaire. The data collected for the rest seven items are tested for validity.
To identify the product variable, seven items are applied. The five point
Likert-type scale is exploited, too. The data collected for seven items are tested for
reliability and validity.
The results of factor analysis for product variable are shown in Table (3.4).

42
 Table (3.4) Factor Loadings of Product Variable
Items loaded Loadings
1. Offers a broad product line. (0.3, 0.6, 1, 20 litres) 0.61
2. Introduces new product development as a strategic tool for growth 0.82
and continuation of business.
3. Provides service for our company‟s product.(home delivery, no 0.60
bottle deposit for 20 litres container, keep promise in concern with
delivery)
4. Provides unique and attractive product packaging (crush, colour, 0.80
design, shape, packaging size)
5. Provides package sizes which focus on customers‟ needs and 0.82
wants based on R&D data.
6. Labels product in concern with open dating (expired date) (to 0.62
describe product freshness), purifying technology, source of water
(address).
7. Develops long-term relationships with key customers. 0.64
Eigenvalue 3.561
Determinant 0.069
Cronbach’s alpha 0.837
Source: Survey Data (2017-2018)

From reliability analysis, the Cronbach‟s Alpha value is 0.837 2 which is

greater than 0.7 (acceptable value for reliability). From validity test with factor
analysis, the determinant is 0.069. This value is greater than 0.00001. Thus
multicollinearity is not a problem for these data. Thus the patterns of correlation are
relatively compact and the factor analysis yields distinct and reliable factors. Bartlett‟s
test is highly significant (p<0.05), and therefore factor analysis is appropriate. R-
matrix is not the identity matrix. This means some relationships between the variables
include in analysis (Field, 2005). The communality for all items is 1. After factor
loadings, none of the items is deleted while retaining seven items with Eigenvalues
greater than 1 and loading value above 0.5.

2
George and Mallery (2003) provide the rules of thumb; “– > .9 is excellent, – > .8 is good, –
> .7 is acceptable, – > .6 is questionable, – > .5 is poor, and – < 0.5 is unacceptable” (p. 231).

43
Price
According to the feedback from pilot survey, the question item number (1)
which is “setting prices on the basis of costs of producing plus a fixed margin for
profit” and number (2) setting prices based on the competitive prices in the
marketplace” are quite ambiguous for respondents, and many respondents cannot give
answer for these items. Thus, these items are removed from questionnaire. The data
collected for the rest eight items are tested for validity.
To identify the price variable, eight items are applied. Data are collected with
five point Likert scale. In this study, these eight items are tested for validity and
reliability.
The results of factor analysis for price variables are shown in Table (3.5).

Table (3.5) Factor Loadings of Price Variable

Items loaded Loadings
1. Sets prices based on the offering something different (home 0.77
delivery, no bottle deposit for 20 liters)
2. Sets price based on different customer groups or different target 0.78
market segments.
3. Sets price based on customization. (shape, customer logo on 0.79
product packing, size)
4. Sets price based on customers‟ ability to pay. (affordability) 0.51
5. Sets a price based on competitors‟ price to increase sales and 0.67
market share.
6. Sets a price based on the customer‟s perceived value compared to 0.73
the competitors‟ products.
7. Uses price promotions and discounts. (one buy one get, 0.64
competitive sales commission to dealers)
8. Communicates pricing changes to our customers when required. 0.73
Eigenvalue 4.021
Determinant 0.041
Cronbach’s alpha 0.854
Source: Survey Data (2017-2018)

44
 The Cronbach‟s Alpha value is 0.854 which is greater than 0.7 (acceptable
value for reliability). From validity test with factor analysis, the determinant is 0.041.
This value is greater than 0.00001. Thus multicollinearity is not a problem for these
data. Thus the patterns of correlation are relatively compact and the factor analysis
yields distinct and reliable factors. Bartlett‟s test is highly significant (p<0.05), and
therefore factor analysis is appropriate. R-matrix is not the identity matrix. This
means some relationships between the variables include in analysis. The
communalities for all items are 1. Thus the data are also strong. After factor loadings,
not one item is deleted while retaining eight items with Eigenvalues greater than 1 and
loading value above 0.5.

Place
According to the feedback from pilot survey, the question item number (10)
which is “our company is better performance in product availability and accessibility,
easy to carry and delivery lead time than competitors” is quite ambiguous for
respondents, and many respondents cannot give answer for this item. Thus, this item
is removed from questionnaire. The data collected for the rest nine items are tested for
validity.
To identify the place variable, nine items are applied. Data are collected with
five point Likert scale. In this study, these nine items are tested for validity and
reliability.
The results of factor analysis for place variable are shown in Table (3.6).

Table (3.6) Factor Loadings of Place Variable

Items loaded Loadings
1. Uses multi-distribution channels to deliver our product to different 0.70
customer groups. (Not only direct distribution but also distribution
through intermediaries such as retailers, wholesalers, dealers,
business partners).
2. Efficiently and effectively manages relationships with channel 0.81
members who are willing to commit to take delivery of large
volumes on a continuing, long-term basis.
3. Carefully recruits and trains all marketing and sales personnel. 0.86

45
 Items loaded Loadings
4. Retains qualified salespersons who possess selling certificate, or 0.70
well-trained or experience in selling purified drinking water.
5. Uses telemarketing to deliver our product 0.74
6. Uses electronic distribution channels such as the internet to deliver 0.72
our product. (supermarket)
7. Chooses effective and efficient transportation mode to distribute 0.90
our products. (right time and low costs)
8. Provides delivery routes which are properly planned and executed. 0.86
9. Arranges for delivery drivers to maintain contact with the main 0.87
office during the day. (to control drivers and to fulfill the irregular
order)
Eigenvalue 5.725
Determinant 0.001
Cronbach’s alpha 0.925
Source: Survey Data (2017-2018)

The data collected for these nine items are tested for reliability and validity.
From reliability analysis, the Cronbach‟s Alpha value is 0.925 which is greater than
0.7 (acceptable value for reliability). From validity test with factor analysis, the
determinant is 0.001. This value is greater than 0.00001. Thus multicollinearity is not
a problem for these data. Thus the patterns of correlation are relatively compact and
the factor analysis yields distinct and reliable factors. Bartlett‟s test is highly
significant (p<0.05), and therefore factor analysis is appropriate. R-matrix is not the
identity matrix. This means some relationships between the variables include in
analysis. The communalities for all items is 1. Thus the data are also strong. After
factor loadings, no item needs to be deleted. All the items are remained with
Eigenvalues greater than 1 and loading value above 0.5.

Promotion
According to the feedback from pilot survey, the question item number (1)
which is “our company achieves above industry average number of impressions
through advertising” and number (5) which is “our company uses sales promotions

46
such as gifts, discounts, competition” are quite ambiguous for respondents, and many
respondents cannot give answer for these items. Thus, these items are removed from
questionnaire. The data collected for the rest ten items are tested for validity.
To identify the promotion variable, ten items are applied. The five point
Likert-type scale is utilized. The data collected for these ten items are tested for
reliability and validity.
The results of factor analysis for promotion variable are shown in Table (3.7).

Table (3.7) Factor Loadings of Promotion Variable

Items loaded Loadings
1. Advertises or promotes products depending on situation 0.78
(introduction stage and based on demand and supply)
2. Advertises or promotes to consumer is through mass media 0.63
marketing (pamphlets, billboards, advertising in TV commercial,
radio, printing materials such as journal and newspaper).
3. Uses Web/Internet advertising. (establish website or through 0.78
Facebook)
4. Place great emphasis on building long term relationships with 0.73
other organizations and institutions influencing buyers‟ purchasing
decisions.
5. Uses direct marketing methods such as telemarketing, direct mail 0.80
for promoting our products and services
6. Uses sales force as the main source of promotion 0.70
7. Offers price discounts to such organizations (hospital, hotels, 0.84
restaurants)
8. Offers free sample (give away) to customers (brand introduction) 0.79
9. Supplies purified water at no charge in case of public relation. 0.72
10. Pays competitive commissions to retailers, wholesalers, dealers 0.71
and business partners who are willing to commit to take delivery
of large volumes on a continuing, long-term basis.
Eigenvalue 5.622
Determinant 0.002
Cronbach’s alpha 0.910

Source: Survey Data (2017-2018)

47
 The data collected for these ten items are tested for reliability and validity.
From reliability analysis, the Cronbach‟s Alpha value is 0.910 which is greater than
0.7 (acceptable value for reliability). From validity test with factor analysis, the
determinant is 0.002. This value is greater than 0.00001. Thus multicollinearity is not
a problem for these data. Therefore, the patterns of correlation are relatively compact
and the factor analysis yields distinct and reliable factors. Bartlett‟s test is highly
significant (p<0.05), and hence factor analysis is appropriate. R-matrix is not the
identity matrix. This means some relationships between the variables exist in analysis.
The communalities for all items are 1. Thus the data are also strong. After factor
loadings, the none of items was deleted while retaining ten items with Eigenvalues
greater than 1 and loading value above 0.5.

Performance
To identify the performance, four items are applied. Performance growth
percent relative to last financial year is applied. The data collected for these four items
are tested for reliability and validity.
The results of factor analysis for performance are shown in Table (3.8).

Table (3.8) Factor Loadings of Performance

Items loaded Loadings
1. Sales Revenues achieved related to last financial year .976
2. Sales Volume achieved related to last financial year .946
3. Profit achieved related to last financial year .922
4. Number of Employees related to last financial year .873
Eigenvalue 3.459
Determinant 0.011
Cronbach’s alpha .946
Source: Survey Data (2017-2018)

The data collected for these two items are tested for reliability and validity.
From reliability analysis, the Cronbach‟s Alpha value is 0.946 which is greater than
0.7 (acceptable value for reliability). From validity test with factor analysis, the
determinant is 0.011. This value is greater than 0.00001. Thus multicollinearity is not

48
a problem for these data. Thus the patterns of correlation are relatively compact and
the factor analysis yields distinct and reliable factors. Bartlett‟s test is highly
significant (p<0.05), and therefore factor analysis is appropriate. R-matrix is not the
identity matrix. This means some relationships between the variables are inherent in
analysis. The communalities for all items is 1. Thus the data are also strong. After
factor loadings, no item is deleted. All the items are remained with eigenvalues
greater than 1 and loading value above 0.5.

3.4 Research Instrument

As the survey instrument, the structured questionnaire is developed. The
questionnaire includes four parts: part (I) is to investigate the marketing mix elements,
part (II) is to evaluate the performance, part (III) is for profile of manufacturer or
managers and part (IV) is for profile of purified drinking water manufacturing
businesses.
Part (I) is to explore the extent of practicing marketing mix variables (product,
price, place and promotion). The marketing strategy components are the four
components of the marketing mix framework as the main variables used to formulate
a marketing strategy in the purified drinking water manufacturing businesses. Part (II)
is performance measurement which is concerned with investigating the main
performance criteria (sales revenue, sales volume, number of employees and profit)
that are being used by the purified drinking water manufacturing businesses in
Yangon for evaluating performance. Most of the items of each variable are
conceptually based on previous research papers. Part (III) reveals profile of
manufacturers or managers with age, gender, working experiences and levels of
education that are assessed. The final part, Part (IV) is for profile with ownership
form, firm‟s age, and size of businesses by number of employees.
The first draft questionnaire is used in pilot survey. After pilot survey, for the
first step, the questions complex and ambiguous for respondents are deleted. At the
second step, the reliability and validity tests are conducted. Then, no item is removed
for validity and reliability analysis.

49
3.4.1 Developing Question Items for Marketing Mix Variables
To collect data and to do analysis, question items for measuring marketing
mix variables are operationalized. For this operationalization; theoretical aspects,
items used in some empirical studies of previous researchers and some practical issues
of Myanmar purified drinking water manufacturing businesses are considered.

Developing Question Items for Product Variable

The dimensions of a product variable were operationalized as:
1. Offering a comprehensive range of products
2. New product development
3. Customer service
4. Packaging
5. Labeling
A comprehensive range of product types or classes: the rationale for including
this question is to investigate the extent to which the purified drinking water
manufacturing businesses in Yangon use comprehensive product classes (package
size) in their product offerings.
New product development: the aim of including new products development is
to investigate the extent to which it is used in creating an integrated product offering
strategy. Developing new products was operationalized by one item: introduces new
product development as a strategic tool in the company's growth and continuation.
Customer service strategy: the aim of including customer service is to
investigate the extent to which it has a role to play in developing an integrated product
offering strategy. Customer service was operationalized by two items:
a) Provides service for our company„s product such as door to door system,
allow 20 liter bottles with no deposit and exchange expired or defect
product with new one, keep promise in concern with delivery)
b) Develops long-term relationships with key customer.
Packaging: the aim of including packaging is to investigate the extent to which
it has a role to play in developing an integrate product offering strategy. Packaging
was operationalized by two items.
a) Provides unique and attractive product packaging (crush, colour, design,
shape, packaging size)

50
 b) Caters package sizes which focus on customers‟ needs and wants based on
R&D data.
Labeling: the aim of including labeling is to investigate the extent to which it
has a role to play in developing an integrate product offering strategy. Labeling was
operationalized by only one item: our company„s product is labeled in concern with
open dating (expired date) (to describe product freshness), purifying technology,
source of water, unit pricing (to state the product cost in standard measurement units),
grade labeling (to rate the quality level), and percentage labeling ( to show the
percentage of each important ingredient).

Developing Question Items for Price Variable

The aim of the questions designed to measure price variable is to investigate
what are the main pricing policies that the purified drinking water manufacturing
businesses use when they formulate their price variable. The price variable was
operationalized by eight key variables. The respondents of the purified drinking water
manufacturing businesses in Yangon were asked; when they price their products they
price them based on:
1. Set prices based on the offering something different.
2. Set prices based on group or segment.
3. Set prices based on customization.
4. Set prices based on customers‟ ability to pay.
5. Set prices based on competitors‟ price to increase sales and market share.
6. Set prices based on the customer„s perceived value compared to the competition.
7. Use price promotions and discounts.
8. Communicate pricing changes to our customers when required

Developing Question Items for Place Variable

The questions used in operationalizing this variable were designed to reveal
the distribution practices that the purified drinking water manufacturing businesses in
Yangon use when they formulate their distribution strategies. Based on the literature
review of distribution variable, it was operationalized by nine key variables.
1. Uses multi-distribution channels to deliver our product to different customer
groups. (Not only direct distribution but also distribute through intermediaries

51
 such as retailers, wholesalers, dealers, business partners). Intermediaries such as
dealer, distributor, wholesalers and/or retailers
2. Efficiently and effectively manages relationships with channel members who
are willing to commit to taking delivery of large volumes on a continuing, long
term basis.
3. Carefully recruits and trains all marketing and sales personnel.
4. Retains qualified salespersons who possess selling certificate, are well-trained or
have experience in selling purified drinking water.
5. Uses telemarketing to deliver our product.
6. Uses electronic distribution channels such as the internet to deliver our product.
7. Chooses effective and efficient transportation mode to distribute our products.
(right time and low costs).
8. Provides delivery routes which are properly planned and executed.
9. Arranges for delivery drivers to maintain contact with the main office during the
day (to control drivers and to fulfill the irregular order).

Developing Question Items for Promotion Variable

The aim of the questions was to investigate the components of promotion
variable that the purified drinking water manufacturing businesses in Yangon use
when they formulate their promotion practices. The promotion practices were
measured through asking the respondents about the components of their promotion
practices when they promote their products.
Consequently, the promotion variable was operationalized by ten key
variables:
1. Advertises or promotes products depending on situation (introduction stage and
based on demand and supply).
2. Advertises or promotes to consumer is through mass media marketing
(pamphlets, billboards, advertising in TV commercial, radio, printing materials
such as journal and newspaper).
3. Uses Web/Internet advertising (Establish website or through Facebook).
4. Places great emphasis on building long term relationships with other
organizations and institutions influencing buyers‟ purchasing decisions.
5. Uses direct marketing methods such as telemarketing, direct mail for promoting
our products and services.
52
 6. Uses sales force as the main source of promotion.
7. Offers price discounts to such organizations (hospitals, hotels, and restaurants).
8. Offers free sample (give away) to our customer (brand introduction).
9. Supplies purified water at no charge in case of public relation.
10. Pays competitive commissions to retailers, wholesalers, dealers and business
partners who are willing to commit taking delivery of large volumes on a
continuing, long-term basis.

3.4.2 Developing Question Items for Performance Variables

In operationalizing business performance, this research has conducted in-depth
interviews among purified drinking water manufacturing businesses in the Yangon
market. During those interviews, the managers described sales revenue, sales volume,
number of employees and profit as the most common performance measurement
criteria which they use for evaluating their performance. These performance criteria
are not only consistent with the literature but also accounting for the practices of
purified drinking water manufacturing businesses in Yangon environment.
Consequently, the business performance variable was operationalized by four
items. The respondents were asked to indicate the level of performance. The items
used in the questionnaire were:
1. Profit achieved relative to last financial year.
2. Sales Revenue achieved relative to last financial year.
3. Sales Volume achieved compared to last financial year.
4. Number of employees relative to last financial year.
The performance data are collected with the measurement of percentage
(increase, decrease, or stable) by comparing with last year because most interviewee-
manufacturers of in-depth interview said that most respondents will be highly hesitate
to give absolute data for their financial performance.

3.5 Data Collection and Data Analysis Methods

Although the questionnaire is structured, data are collected with long personal
interview. The data needed are very comprehensive and complex. Thus the
interviewer needs to explain parts of questionnaire in detail. Interviewers asked for
special appointments to get data from respondents. Data are collected during
December, 2017 and January, 2018. Personal interviews are conducted with key
53
figures in the purified drinking water manufacturing businesses in Yangon in order to
gain their acceptance, access and co-operation for conducting the fieldwork phase.
Using personal contacts and interrelationships with the research population or sample
and, making early contacts with potential respondents have been supported by a
number of writers (Hussey and Hussey 1997; Malhotra and Birks 2000; Easterby,
Thorpe, Richard, Lowe & Andy 2002). Interviews are conducted with owners /
managers in the purified drinking water manufacturing businesses.
A pre-notification phone call is made with each manager to arrange a meeting
with him at a certain time. Most of the questionnaires are hand delivered, and the
researcher's address cards are introduced and exchanged with managers' business
cards to give the survey more professionalism.
For data analysis, descriptive statistics methods are applied to show the
frequency tables and mean values as necessary. The factor analysis is also applied for
validity test. Multiple linear regression analysis is conducted for major findings of this
study. Dummy variable regression analysis is also conducted for nominal variables.

3.6 Assumptions of Multiple Linear Regressions

To practice the multiple linear regression method, the necessary assumptions
of this method must be tested. When running a multiple regression, there are some
assumptions to check data in order for analysis to be reliable and valid.
Assumption 1 is “the relationship between the independent variables and
dependent variable is linear”. The first assumption of Multiple Regression is that the
relationship between independent variables and dependent variable can be
characterized by a straight line. This assumption can be tested by looking at the
distribution of residuals. This can be tested by reviewing the normal probability plot.
Assumption 2 is that “there is no multicollinearity in data”. This assumption is
to test that the independent variables are not too highly correlated. This can be done in
two ways. First, in the correlations table, correlations of more than 0.8 may be
problematic. If this happens, it is needed to consider removing one or more of
independent variables. Second, it can be conducted to more formally check that
independent variables are not too highly correlated. For the assumption to be met (no
multicolliniarity in independent variables), VIFs scores to be well below 10, and
tolerance scores to be above 0.2 (Keith, 2006; Shieh, 2010).

54
 Assumption 3 is that “the values of the residuals are independent”. Durbin-
Watson statistic in model summary box of SPSS output can be checked. This test is
used to check the residuals are independent or uncorrelated. This statistic can vary
from 0 to 4. For this assumption to be met, this value should be close to 2. Values
below 1 and above 3 are caused for concern and may render analysis invalid.
Assumption 4 is that “the variance of the residuals is constant”. This
assumption (assumption of homoscedasticity) is the one that variation in the residuals
(or amount of error in the model) is similar at each point of the model. The scatter plot
should like a random array of dots. If the graph looks like a funnel shape, then it is
likely that this assumption has been violated.
Assumption 5 is that “the values of the residuals are normally distributed”.
This assumption can be tested by looking at the P-P plot for the model. The closer the
dots lie to the diagonal line, the closer to normal the residuals are distributed.
Assumption 6 is that “there are no influential cases biasing the model”. This
assumption can be tested by going back to data file and looking at the Cook‟s distance
values. Any values over 1 are likely to be significant outliers which may place undue
influence on the model, and should therefore be removed and analysis will be rerun.
All these assumptions are tested when making the multiple regression analysis
in this study. The results are explained in Chapter (4).

3.7 Dummy Variables and Interactions in Regression Analysis

In regression analysis, the dependent variables are frequently influenced not only
by ratio scale variables but also by variables that are essentially qualitative or nominal
scale. Since such variables usually indicate the presence or absence of a „quality‟ or an
attribute, they are essentially nominal scale variables.
The study demonstrates the correct use of nominal and ordinal scaled variables
in regression analysis by means of so-called „dummy variables‟. In regression
analysis, the independent variables (i.e. the variables that explain/predict the outcome
variable) have to be interval or ratio scaled. These two types of variables have values
on a fixed scale with equal distances. Ratio scaled variables have fixed intervals too,
but on top they contain a meaningful and absolute zero point, such as age:
everybody‟s life starts at 0 (years). In social sciences, interval/ratio scaled variables
are probably outnumbered by nominal and ordinal scaled variables. Nominal variables
have values as well but they serve only to distinguish between categories. In ordinal

55
variables, the values are not as unordered as in nominal variables: their values express
a hierarchy. Because nominal and ordinal scaled variables have no nicely defined
scales with fixed intervals, they are not well-suited as predictor (X) variables in
regression models. To include them in these models their categories have to be
transformed into so-called „dummy‟ variables first.
A dummy variable recodes the categories of a categorical variable using the
numeric values 0 and 1. Where appropriate, the value of 0 is assigned to the absence
of a characteristic and the value 1 is assigned to the presence of the characteristic.
Dummy variables are essentially a device to classify data into mutually exclusive
categories.
Dummy variables can be incorporated in regression models just as easily as
quantitative variables. As a matter of fact, a regression model may contain repressors
that are all exclusively dummy, or qualitative, in nature. To identify the effect of
nominal scales variable on firm‟s performance, dummy variables regression method is
used. Nominal scale variables consist of size, ownership form, and firm‟s age. The
results of dummy variable regression are explained in Chapter (4).

56
 Chapter 4
Analysis on Relationship between Marketing Mix and Performance
of Purified Drinking Water Manufacturing Businesses in Yangon

This chapter is an analysis chapter which intends to present the findings from
analysis on marketing mix practices, effect of business characteristics (age, size, and
ownership form) on manufacturers‟ commitment to marketing mix, and the
relationship between marketing mix and performance measured by sales revenue,
sales volume, profit and firm‟s growth by number of employees. In this chapter,
before starting the analysis on such points, the profile of surveyed businesses is
introduced.
Since primary data are collected with structured questionnaire and the open
discussion is also conducted immediately after filling the structured questionnaire, not
only quantitative data but also qualitative findings are presented in this chapter. The
qualitative findings focus on barriers to practice marketing mix, and marketing
strategies they are practicing accompanying with marketing mix activities.

4.1 Profile of Purified Drinking Water Manufacturing Businesses

The profile of purified drinking water manufacturing businesses consists of
ownership form of businesses, firm‟s age and number of employees. In the analysis of
ownership form of business, (83%) are sole proprietorships, (12%) are partnerships
and (5%) are private companies. The highest percent is sole proprietorship in which
most of the businesses are small and medium businesses and only a few are large
businesses. This is because most of the businesses are family businesses as only a
considerable amount of initial capital is needed for the establishment of a purified
water production business and the priority is the delivery of the products in time of
need to the present of the consumers. In this case, the family businesses in the quarter
can distribute to the homes of consumers in time rather than the large businesses.

57
 The number of private companies is the lowest per cent of all the purified
water production businesses. All of these businesses aimed at the distribution of their
products in the whole country. These businesses need to focus on the publicity of their
brand and they have to establish a strong and wide distribution network. The public
companies and the joint venture businesses are hardly found in the purified water
production business world. There are two reasons for this: the first one is the less
development of capital market in Myanmar and the second one is the joint venture is
not necessary in the purified water production businesses because only very simple
technology is utilized for the production. Joint venture business is only used in
Myanmar for the sake of technology help. The public companies are rarely found in
Myanmar not only in the purified water production businesses but also in other
businesses.
In the analysis of firms‟ age, 45 % of all the businesses have less than five
years of firms‟ age, 26% of all the businesses have five to ten years of firms‟ age and
29% of all the businesses have more than ten years of firm‟s age. Among them, the
businesses which have less than five years of firms‟ age are the highest percent. There
are two causes for this: the first one is the level of health consciousness become
higher among the public i.e. the market grows quickly and the second one is there is
easy entry for the purified water production business as the initial investment amount
is affordable for the public.
In the analysis of performance, the highest per cent of businesses are increase
in performance concerning sales revenues, sales volume and number of employees.
However, the highest per cent of businesses are unchanged in profit. This is because,
most of the businesses are not well controlled in both of marketing costs and
operating costs. In addition, labour turnover rate is high especially in hot season while
most of the businesses are needed to produce more in the hot season. To meet this
need, employees are recruited with high pay rate. Moreover, wages for overtime
(night shift) are also high in the hot season.-
According to the Revised Private Industrial Enterprise Law (2011) and SME
law for classifications for small, medium and large enterprises, number of employees
10 to 50 are classified as small businesses, 50 to 100 are medium businesses and
above 100 are large businesses. Therefore, in this study, the small business is the
highest percentage. This situation is concerned with the situation in which 83 % of the

58
businesses are sole proprietorship. Almost all of these businesses have only 10-50
employees because most of the businesses are only family businesses.

Table (4.1) Profile of Purified Drinking Water Manufacturing Businesses

Sr. Demographic Factors Number of Percent

No. Businesses (%)
1 Total Number of Businesses 84 10
2 Ownership Form of Business 0
Sole Proprietorship 70 83.33
Partnership 10 11.91
Private Company 4 4.76
3 Firm’s Age (Year)
<5 38 45.24
5-10 22 26.19
>10 24 28.57
4 Size of Business by No. of Employees
Small (10-50) 68 81.00
Medium (50-100) 8 9.50
Large (>100) 8 9.50
5 Performance of Business
Sales Revenue (Increase) 51 60.72
Sales Revenue (Unchanged) 26 30.95
Sale Revenue (Decrease) 7 8.33

Sale Volume (Increase) 51 60.72

Sales Volume (Unchanged) 26 30.95
Sales Volume (Decreased) 7 8.33

No. of Employees (Increase) 77 91.67

No. of Employees (Unchanged) 5 5.95
No. of Employees (Decrease) 2 2.38

Profit (Increase) 28 33.33

Profit (Unchanged) 48 57.14
Profit (Decrease) 8 9.53

Source: Survey Data (2017-2018)

According to the Food and Drug Administration, there are (84) purified
drinking water manufacturing businesses located in (24) townships, Yangon. Most of
the businesses are sole proprietorship. Only few of the businesses are partnership and
company. Most of the businesses are located in Thanlyin and Mingalardon townships.
The second most is Hlaing township, the third most is North Dagon township.

59
According to the respondents, Thanlyin township is the best water source among the
townships in Yangon. This point relates to the number of businesses established in
Thanlyin township.
Among the downtown townships, Hlaing township is the best water source.
Because of the crowded housings and high land price, existing businesses located in
Hlaing township cannot extend their businesses and new businesses cannot establish
in this township. Transportation is readily accessible in Hlaing township, however,
traffic congestion is a main problem in product distribution for all businesses
including Purified drinking water manufacturing businesses in Hlaing township.
Excluding Thanlyin and Hlaing townships, Mingalardon and North Dagon townships
have the better water source than any other townships.

4.2 Barriers to Practice Marketing Mix

In this study, not only personal interview with structured questionnaire but
also the open discussions for probing the barriers to practice the marketing mix
activities are conducted. From the open discussion, the barriers to practice of
marketing mix activities can be presented.
Concerning the barriers to implement product activities, getting FDA
Certificate is not advantageous for businesses because many businesses which do not
possess FDA Certificate are well competed in the market especially in the price. Most
of the consumers mainly focus on packaging rather than purity of the water because
there no easy access to the tester of the water quality in the market.
In the case of the barriers to implement pricing activities, although some of the
consumers do not consider price as the important factor, most of the consumers
consider price as the important factor. Most of the businesses focus on cost and
regional competitors‟ price in pricing decision. They rarely take into consideration of
the other pricing factors because they believe that these factors are not important.
In the analysis of the barriers to implement place activities, most of the
consumers favour convenience more than quality and price of the product because of
the nature of the product. Thus, consumers are not brand loyal in product shortage
condition especially in hot season.
Regarding the barriers to implement promotion activities, most of the purified
drinking water manufacturing businesses are not interested in promotion. They
believe that the main reason for practicing promotion functions is poor quality of the
60
product. Therefore, most of these businesses are hesitate to practice promotion
functions.

4.3 Marketing Mix of Purified Drinking Water Manufacturing Businesses

The analysis on marketing mix of purified drinking water manufacturing
businesses is conducted by using survey data. In this study, marketing mix is
approached with four elements such as product, price, place, and promotion. The
practices of surveyed businesses for their products can be seen with the mean value
data shown in Table (4.2).

Table (4.2) Practices on Product

Sr. No. Items Mean
1 Offers a broad product line. (0.3, 0.6, 1, 20 litres) 3.29
2 Introduces new product development 2.95
3 Provides service for the company‟s product 3.24
4 Provides unique and attractive product packaging 2.89
5 Provides package sizes which focus on customers‟ needs
2.95
and wants based on R&D data.
6 Labels product in concern with open dating, purifying
3.30
technology, source of water.
7 Develops long-term relationships with key customers. 3.26
Overall Mean 3.13
Source: Survey Data (2017-2018)

As shown in Table (4.2), the product variable mean score of respondents is

fairly high (greater than 3). It can be concluded that they show strength in performing
product activities. However, according to the results of each item, it is found that they
indicate weakness in introducing new product development as a strategic tool, being
unique and attractive product packaging and focusing on customers‟ needs and wants
based on R & D data for product package size. The reason for this is that most of the
purified drinking water manufacturing businesses do not introduce new product as a
strategic tool in their growth and continuation. This relates to the fact that the nature
of product quality is standardized. Moreover, most of the purified drinking water

61
manufacturing businesses do not interest in product packaging. Almost all of the
businesses are the same in package size. In addition, the types and the shapes of most
products are also similar.
In survey, open discussion with respondent is also conducted after filling the
questionnaire. In this open discussion, the marketing strategies they are conducting
for product is asked. Form this open discussion, it is found that they are practicing
both broad product line strategy and narrow product line strategy. Most businesses are
producing more than one item of product. Their products are 0.3 litre, 0.6 litre, 1 litre,
5 litres and 20 litres contained bottles. However, some businesses produce only 20
litres contained bottles.
The initial investments of the businesses which are applying broad product
line strategy are far larger than the businesses which are applying narrow product line
strategy. The machinery for producing 0.3 litre, 0.5 litre, 1 litre and 5 litres bottles is
different from the machinery which is utilized to produce 20 litres contained bottles.
If the employer of the facility which is producing 0.3 litre, 0.5 litre, 1 litre and 5 litres
bottles wants to produce 20 litres contained bottles, he must purchase the different
machinery for producing 20 litres bottles. Generally, the businesses which are
applying broad product line strategy receive more sales revenue than the narrow
product line strategy. They can provide more choices to consumers as well as to
distributors. Distributors prefer the manufacturers who are practicing broad product
line strategy because they would like to provide more choices to various customers.
Compared to the former one, the businesses which are utilizing narrow
product line strategy do not cost an arm and a leg as they need fewer initial
investment and they can concentrate on their business more as they have one product
line. As they have the exact and sole target market, they can meet the sustainable
fulfillment of the needs and wants of the customers. However, they can confront the
constraints by the time the customers are willing to purchase the other product lines as
they produce only 20 litres bottles. As 20 litre bottle producers do not sell their
bottles, they have to deal with the bottle-pawned problems. The businesses which are
producing 0.3 litre, 0.5 litre, 1 litre and 5 litres bottles cannot come across such
ownership form of problems as they sell the shells accompanied by the purified
drinking water.

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 At the second step, the analysis on marketing mix focuses on practices of
businesses on prices of their products. The pricing practices of surveyed businesses
can be assessed with the mean values shown in Table (4.3).

Table (4.3) Pricing Practices

Sr. No. Items Mean
1 Sets prices based on the offering something different 2.86
2 Sets price based on different customer groups 2.81
3 Sets price based on customization. 2.52
4 Sets price based on customers‟ ability to pay. 3.00
5 Sets a price based on competitors‟ price 3.11
6 Sets a price based on the customer‟s perceived value 3.07
7 Uses price promotions and discounts. 2.93
8 Communicates pricing changes 2.96
Overall Mean 2.91
Source: Survey Data (2017-2018)

As shown in Table (4.3), the price variable mean score of respondents is not
high (about 3). It can be concluded that the businesses indicate weakness in
performing pricing activities. In pricing their products, they mainly based on
competitors‟ price, customer‟s perceived value compared to the competitors‟ products
and also based on customers‟ ability to pay. According to the results of each item, it is
found that they usually do not practice in setting prices based on offering something
different, based on different customer groups or different target market segments and
based on customization.
As mentioned above, in open discussion section, the marketing strategies
relating to pricing are discussed with respondents. It is found that manufacturers are
practicing two types of pricing strategies: market penetration pricing strategy and
market skimming pricing strategy.
Market penetration pricing strategy will provide only a little amount of profit
from each customer and which is meant to sell a large quantity. The target market is
the townships with dense population but most of them living in such townships as
South Dagon, North Dagon, East Dagon and Hlaing Thar Yar are impoverished. This

63
pricing strategy is applied by the businesses with no brand or the businesses which are
not very eager to be a well-known brand among the public. One exception is that
some of the businesses sell their products to the restaurants and high way expresses
just with price nearly same as the production costs so as to become a famous brand
among the consumers.
Market skimming strategy is applied for the branded products or by the
businesses which are striving to become a brand of the customer's choice. Market
skimming strategy is utilized by the businesses which are interested in the connection
between the quality of a product and its price. In other words, the strategy is based on
the ideology the better the product's quality is, the higher the price is. The result of
setting high price leads to the removal of the consumers' doubts about the quality of
the products.
On the other hand, some big businesses manufacture family brand products. In
other words, these businesses produce two or three products of the same quality.
Among these products, they carefully implement one product to become a common
brand among the consumers and set the price higher than the other brands. The other
brands are used as the competitive products in the market and their prices used to be
as low as the rivals. These businesses apply both the market penetration pricing
strategy and the market skimming pricing strategy.
Sometimes, some businesses do not strive to produce a new brand in the
market. Instead, they acquire an already brand which is facing challenges to survive in
the market and continue to manufacture the products with the same name.
The third part of analysis on marketing mix is analysis on practices of
businesses for distribution (place). The level of commitment of businesses to place
practices can be seen with mean values shown in Table (4.4).
Table (4.4) Practices for Place
Sr. No. Items Mean
1 Uses multi-distribution channels 3.43
2 Build Channel members relationships 3.51
3 Carefully recruits and trains all marketing and sales
3.17
personnel.
4 Retains qualified salespersons 3.08
5 Uses telemarketing to deliver our product 3.48

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 Sr. No. Items Mean
6 Uses electronic distribution channels such as the internet to
2.41
deliver our product.
7 Chooses effective and efficient transportation modes 3.36
8 Provides delivery routes which are properly planned and
3.32
executed.
9 Arranges for delivery drivers to maintain contact with the
3.23
main office during the day.
Overall Mean 3.22
Source: Survey Data (2017-2018)

As shown in Table (4.4), the place variable mean score of respondents is fairly
high (greater than 3). It can be concluded that they show strength in performing place
activities. However, according to the results of each item, it is found that they indicate
weaknesses in using electronic distribution channels such as the internet to deliver
their product. This is because most of the purified drinking water manufacturing
businesses rarely use the Internet in case of business functions.
In open discussion with respondents, the marketing strategies for distribution
of businesses are discussed. Businesses use both single and multi-channel strategies to
deliver their products. Some businesses utilized single channel strategy and others
followed multi-channel strategy. The difference of applied place strategies depends on
the target market, the size, the labour forces, and financial strength of the production,
etc.
Most businesses which are applying single channel strategy aim at the markets
which are near to the location of the businesses as their target markets. The expression
"single channel" in this context means "direct channel which sells the products to the
consumers directly" or also "zero level channel" without the intermediaries between
the producers and the consumers. That single channel strategy is mainly applied by
the 20 liters contained bottle production businesses. In the distribution of single
channel strategy-applied businesses, some businesses target family households as
consumers and some businesses aim at the organizations and enterprises. When a
business targets the organizations and enterprises, the design of the bottles and their
consuming of the purified drinking water are connected. In other words, the

65
enterprises and organizations usually utilize the water coolers. As a result, the
businesses come to produce the purified drinking water bottles with no tap. Whether a
bottle has a tap or not is connected with the quality of the purified drinking water. The
reason for this is that not only the empty bottle but also the tap is also rinsed before it
is refilled again. The thick slime, moss, dust and dirt are usually found inside the tap.
It needs to be carefully cleaned because most of the complaints about the quality of
water are concerned with the tap.
The businesses which are applying multi-channel strategy usually aim at more
than one target market. Their target markets are the townships, the organizations, the
government offices and departments, and towns from near and far.
In analyzing the connection between the size of the businesses and place
variable, the medium and large enterprises usually produce more than one product
line and usually apply multi-channel strategy. The small enterprises usually produce
only one product line (20 liters bottles) and usually apply single channel strategy.
Only a few small enterprises produce more than one product line and apply multi-
channel strategy.
In analyzing the connectivity between the appointment of workforces and
place variable, the businesses which can maintain the continuity of the labour forces
and can appoint the workforces as much as necessary apply direct channel strategy
(single channel strategy). The businesses which cannot maintain the continuity of the
labour forces and cannot appoint the workforces as much as necessary rely on the
intermediaries to distribute their products. Therefore, these businesses distribute in
person only in a few parts of the target market. These businesses are practicing multi-
channel strategy as they not only distribute in person but also distribute with
intermediaries deal.
In analyzing the connection between the financial strength and place activities,
the businesses which have sound financial strength without many target markets need
not depend upon the intermediary's deals. They can distribute to the consumers
directly. As they have sound financial strength, they can hire the necessary
workforces and enable to purchase necessary truck cars for the delivery of the
products. They can maintain the sustainable quality of the products and need not pay
for the intermediary commission fees. On the other hand, the constraints they are
encountering are the costs for repairing the cars, the continuity of the workforces and
the punctual delivery of the products to the consumers. Moreover, it is the multi-
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channel strategy that they should apply if they want to distribute a lot of target
markets because the dealers can get more economy of scales and economy of scopes
than the producers and it can lead to the punctuality of the product delivery to the
consumers. The choice of the effective and efficient dealers is crucial for the
betterment of the distribution.
As the average price of a purified drinking water bottle is 200-500 kyats, most
of the producers apply intensive distribution. The applied distribution is intensive
distribution because the quality of the water remains the same although there are the
differences of the brand, the different technologies of producing purified drinking
water, and the various designs of the bottles. However, some purified drinking water
producers are very eager to have a famous brand among the public. They focus on
making promotion and invest a considerable amount of budget to enhance the
reputation of the brand. They usually set the premium price on the standardized
products. As the brands vary, the price setting will vary. Such enterprises usually
prefer selective distribution to intensive distribution for choosing their dealers. They
usually have standards as much as they can for the choice of their dealers.
Some businesses strive to have a well-known brand by means of maintaining
the sound quality of the products. To maintain the sustainable success, they used to
choose the dealers carefully and systematically. If the dealers store their products near
the dirty canals or somewhere in an unsanitary place, the employer will not choose
them. Therefore, it can be assumed that their strategy is neither a fully selective
strategy nor a fully intensive strategy.
Some businesses are meant not to sell their products to other businesses or
other households but to distribute only to their partner businesses since their
establishment. For instance, the transportation enterprises such as the express cars
come to produce the purified drinking water accompanied with their transportation
services. It is meant not to enhance the market share or to promote the sale volumes
but to save the expenses. There is a new culture of giveaway by the express. That is
giving the purified drinking bottles free to their customers with the same express
brand on it. As a result, the express employers come to produce the purified drinking
bottles with their express brand name by themselves. This plan is cheaper for them
than to purchase the other branded purified drinking water bottles. If there are the
remainder bottles after giving to the express cars, these remainders are sold to the
other enterprises and the consumers. As the targeted objective is to meet the needs of
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the express car customers, this ownership form of distribution may be assumed as the
exclusive distribution.
The open discussion also covers the seasonal fluctuation in demand of this
market. Not all but most of the productions confront a challenge that is the stock
shortage during the summer which is the greatest demanded moment. During the
other seasons, there is usual delivery with no stock shortage. The stock shortage
problem occurs in summer, and it is found that there are various modes of dealing
with this problem they are facing.
In general, there are two main ways of solving that problem. The first one is
recording the standardized number of customers in times of most demand and strives
to meet the needs of those customers without enhancing the market. The customers in
the limited records are the loyal and long-lasting consumers even though there are
new brand productions. They still remain as the faithful customers even though the
new rival productions have the persuasive cheap price. As a matter of fact, trying to
meet the needs of the consumers in summer bestows the businesses the less demand in
times of other seasons. In the other seasons, the demand is less than that of summer
and the machinery cannot run at full capacity in that time because of the less demand.
As a result, it is hard to achieve the economy of scale and the production cost for a
unit increase because the price cannot set high in time of less demand.
These businesses not only do not seek new customers in other seasons which
are the time of less demand but also do not accept the new orders of the new
customers in summer. Therefore, the loyalty of the present customers plays a central
role in the decision-making process of maintaining the sustainable success of that
ownership form of businesses.
The second way to solve the problem is giving persuasive promotions such as
sale or giving the empty bottles to get new customers so as to reach the standard sale
volume in moments of less demand. Moreover, new customers are accepted even in
times of highest demand. To maintain the punctual and sufficient delivery of the
supply to all customers, some businesses subcontracted the other brands with less
demand to include as a part in their delivery system. The agreements such as the
brand on the purified drinking water bottles produced by the business that is
subcontracted must be the subcontracted business's brand and the pay for it is
negotiated and decided. In other words, the brand "A" will be in the market if the
business with the brand "A" subcontracted the business with the brand "B". This type
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of solution will work all the year round. However, it can be assumed that it is not
ethical as there is no transparency for the customers.
Although the business which is subcontracted is not a famous brand among the
customers, the act of subcontract is acceptable if the quality of their product is valid.
If the quality of the product does not live up to the standard, the act of subcontract is
just misconduct.
The final part of analysis on marketing mix elements is the part of analysisng
the practices on using promotion tools. The practices for promotion of purified
drinking water manufacturing businesses can be examined with mean values shown in
Table (4.5).

Table (4.5) Promotion Practices

Sr. No. Items Mean
1 Advertises depending on situation 2.77
2 Advertises through mass media marketing 2.68
3 Uses Web/Internet advertising. 2.37
4 Building long term relationships with influencing
2.77
organizations
5 Uses direct marketing methods 2.74
6 Uses sales force as the main source of promotion 3.16
7 Offers price discounts 2.61
8 Offers free sample (give away) 2.45
9 Supplies purified water at no charge 2.41
10 Pays competitive commissions 2.92
Overall Mean 2.69
Source: Survey Data (2017-2018)

As shown in Table (4.5), the promotion variable score of respondents is at

moderate level with mean score 2.69. It can be concluded that the businesses indicate
weakness in performing promotion activities. According to the results of each item, it
is found that they show strength in using sales force as the main source of promotion
and paying competitive commissions to retailers, wholesalers, dealers and business
partners who are willing to commit taking delivery of large volumes on a continuing,

69
long-term basis. However, they indicate weakness in performing all the rest items.
This is because most of the businesses believe that practicing promotion functions
especially advertising is related to low quality of water.
In the open discussion section, the marketing strategies relating to promotion
of purified drinking water manufacturing businesses are discussed. It is found that
they are practicing two strategies: pull strategy and push strategy. It is also found that
they are also conducting other two strategies: above the line and below the line
promotion strategies. Pull strategy is the promotion strategy which is intended for the
customers to ask and purchase from the seller. Push strategy is the promotion strategy
which is intended for the distributers to make persuasive approaches to the customers.
A push and pull strategy refers to the way information and products move
between consumers and a manufacturer. This approach refers to the flow of the
promotional efforts used to sell goods or a service.
In a push strategy, suppliers push their goods towards the consumers, and in a
pull strategy, consumers pull information or products that are suitable for their needs.
A pull strategy is defined as a promotion strategy which focuses on consumers more
than a member of a marketing channel in order to facilitate the flow of goods or
service from a manufacturer to end-users (consumers). Conversely, a push strategy is
defined as a promotion strategy focused on marketing intermediaries (Wholesalers
and retailers) rather than on end-users in order to facilitate the flow of goods or
service from a manufacturer to consumers.
The findings about the push and pull strategy are that the pull strategy is
applied by the businesses which follow direct marketing channel or single channel
level or zero level channel while the push strategy is utilized by the businesses which
follow multi-level channel strategy as the pull strategy is aimed at the marketing
intermediaries.
In applying the pull strategy, it is advertised via the billboards, TVs,
pamphlets, and vinyl. The advertisements are also spread by word of mouth and
Facebook. The push strategy is carried out by means of sales visits. The sale
accountants make sale visits to the retailers to ask them to stock their products.
They are also doing above the line strategy. Above the line strategy refers to
those traditional marketing channels that strive to reach a mass audience with
messages that reinforce a brand, communicate general product information or inspire
an emotional response. Below the line activities, by comparison, traditional direct
70
marketing efforts – they aspire to establish targeted relationships between markets and
individual consumers.
In analyzing the above the line and below the line strategies of the purified
drinking water productions in Yangon, the large enterprises utilize the TVs, Radio,
Print advertising, outdoor advertising and yellow pages for above the line strategy
while the small enterprises apply advertising for this strategy. The main activities are
telemarketing, distribution of pamphlets, banners, placards, stickers, sales promotion,
and placing brochures at the point of sales.
Table (4.6) shows the practices of surveyed businesses for reach of the
marketing mix elements with the overall mean values of each variable.

Table (4.6) Marketing Mix

Sr. No Items Mean
1 Product 3.13
2 Pricing 2.91
3 Place 3.22
4 Promotion 2.69
Source: Survey Data (2017-2018)

According to table (4.6), overall mean value for place variable is more than
the other three marketing mix variables such as product, price and promotion. It
seems that businesses give more favour in practicing place activities. However, just
evaluating these mean values is not enough to make conclusion on businesses‟
priority on marketing mix practices. Thus, in this step, it is also analysed how
marketing mix practices are dominating in purified drinking water manufacturing
businesses in Yangon.

4.4 Dominant Marketing Mix Practices in Purified Drinking Water

Manufacturing Businesses
To identify the dominant marketing mix practices, mean values are used in
this study. The highest mean value among the four marketing mix elements is
assumed as dominant element.

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 According to the survey data, marketing mix practices for product is
dominating in 30 firms out of 84 firms (36%), marketing mix practices for price is
dominating in 9 firms (10%), marketing mix practices for place is dominating in 35
firms (42%), and marketing mix practices for promotion is dominating in 10 firms
(12%). The levels of dominating in this industry can be seen with mean values shown
in Table (4.7).

Table (4.7) Dominant Marketing Mix in Businesses

Product Price Place Promotion
S dominant dominant dominant dominant
Sr. Marketing Mix (30) (9) (35) (10)
No
Mean Mean Mean Mean

Product
1 3.36 2.92 2.99 2.91
Price
2 2.88 3.46 2.84 2.61
Place
3 3.08 2.83 3.54 2.57
Promotion
4 2.81 2.70 2.45 3.03
Marketing
5 Mix
28:24:25:23 24:29:24:23 25:24:30:21 26:24:23:27
Proportion
Source: Survey Data (2017-2018)

The businesses, in which product practices are dominating, are keen on

extending the broad product line and they put great effort to implement this.
Moreover, these businesses are very sensitive to their quality assurance. These
businesses usually put great effort to attain the FDA quality certificates and other
ownership form of quality assurance certificates. They used to test the quality of water
every day. Based on the situation of water, some businesses use RO (reverse osmosis)
and some businesses utilize the other types of systems in order to maintain the
nutrition in the water.
These businesses can assure the quality of the water and they also take pride in
this fact. They assumed that their sustainable success is the consequence of their
maintaining the quality of water. They used to build communication with the
consumers through the special designed labels to deliver the messages that their
products have the valid quality assurance. However, it is found that these businesses

72
are reluctant to make a promotion after the introduction stage. At the introduction
stage, they tried for public awareness on brand with the support of promotion.
Moreover, it is found that they set the premium price compared to the products of
other brands which have the normal quality. They have the better awareness of the
customer's opinion or image on the relationship between the price and the quality.
Although they pay relatively more attention to product practices, there is still a lack in
doing for distinctiveness in packaging as they think that unique and attractive
packaging is not important. It can be said that this assumption is not 100 % right
because the most valuable purified water brand includes the expensive, eye-catching,
unique and attractive packaging on top of quality water. In like manner, it is found
that the “designer water” brand can earn the premium price because of its innovative,
unique and attractive designs. Thus, quality oriented businesses should pay more
attention to packaging.
The businesses in which price practices are dominating are considering two
points. These points are customers' perceived value compared to competitors' product
and pre-communicating about price changes. It is found that the businesses are weak
in the other things concerned with the price. It is found that pricing based on
customization is an unusual thing they have not practiced much.
The businesses in which place practices are dominating make use of the
effective and efficient transportation modes in order to deliver the products to the
consumers directly with reasonable cost and they also utilize the telemarketing for
distribution. For instance, bicycles, trishaws, cycles, push carts and trolley-trucks are
used for the distribution of the products in the quarter. Yangon is suitable for these
kinds of distribution for the sake of cheap and easy delivery because there are a lot of
traffic jams and narrow lanes. However, it is found that the salespeople are assigned
with no systematic standard of recruitment and they are also very weak in retaining
the qualified salespeople in the workplace. On the other hand, it is found that they can
build an efficient and effective channel member relationship with the dealers,
distributers, wholesalers and retailers.
The businesses in which promotion practices are dominating utilize the
advertising in times of demand fall and in moments of brand introduction. Most of the
businesses advertise with vinyls through dealers and they also advertise by
distributing the pamphlets in the quarters. However, it is found that they did not
practise the mode of advertising through mass media marketing.
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 Generally, the businesses that practise the product dominantly are focusing on
labelling, home delivery, no bottle deposit service and also trying to have a broad
product line but they do not pay attention to new product development and new styles
of packaging. They practice discrimination in pricing by setting various prices for
different customers and different target market segments. They take into account the
customers' ability to pay, the competitors' price and the customers' perceived value
compared to competitors' product. However, they do not customize the size and
packaging of the bottles and they do not want to consider it in price setting even if
they have to customize it.
The businesses that pay much attention to pricing do not spend for promotion,
place, and product. To reduce price, they control costs in all these three areas by
delivering products with freelance delivery people by paying lower commission,
doing promotion with the effort of these delivery people, producing sub-standard
quality products. They neglect the practice of advertising through mass media
marketing and advertising through internet websites and social media.
The businesses emphasizing on place practices try to establish the efficient
and effective channel member relationship. However, they are weak in establishing
the recruitment system carefully and fail to train the assigned salespeople. They are
weak in retaining qualified salespeople. They are also weak in setting the delivery
routes in a systematic way. They also fail to assign the delivery drivers to maintain
contact.
Businesses favouring place practices distribute through the multi-distribution
channels either in person or via intermediaries. In this case, some businesses assign
the family members of the efficient staff as dealers with the intention of raising the
switch cost. This can help to retain the efficient employees by establishing the strong
relationship with their family members. It is actually a win-win situation because it
does not need to provide the competitive commission on top of achieving the reliable
and accountable dealers and all the dealers' family members can earn the income from
the dealers' perspective. In some businesses, it is discerned that the installation plan is
established for the dealers in that the dealers are provided with the loan money for the
dealers' outlet rent charges and the equipment used for the product delivery. Although
the efficient and effective channel member relationship of these businesses is strong
they are weak in establishing the recruitment system because they rely mainly on the
intermediaries, dealers, wholesalers and retailers.
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 It is found that businesses who favour promotion practices focus on the home
delivery, free bottle deposit, the inclusion of the product-informative things on the
label, maintaining the quality of the product, keeping promise in concern with
delivery and the allowance of interest-free credit. However, it is found that they are
not very keen on packaging-related practices and new product development. Their
prioritized things are the customers' ability to pay, competitors' price and consumers'
perceived value compared to competitors' product. However, they are weak in setting
the varied price based on the service provision and based on the customization, and
communicating the change of price to the consumers. They should consider these
weaknesses for the sake of the long term benefits especially on the point of
communicating the change of price to the consumers.
Lack of communication for price change would not be the problem in some
businesses while it is a problem in many businesses. Although the price setting is not
a problematic case for the businesses that have the loyal customers, it is surely a
worth considering case for the businesses whose customers select this brand because
of cheap price. Those types of customers are sensitive to the price. Therefore, the
amount of the changed price and the time of price change must be informed to the
customers, especially distributors, exactly. It is also worth informing the reasons of
price change until the consumers accept it. If not, the customers will switch to other
brands because of the persuasive pricing of other businesses.
It is also found that, in some markets, direct marketing is the only way to
establish the relationship with the final consumers. In this case, salespeople are
reliable not only for the direct distribution but also for the establishment of
relationship with dealers, distributers, wholesalers and retailers. In addition to this,
they are also the chief source to attain the information concerning the market and to
find out new customers. Therefore, the businesses should put the great effort on
establishing the better recruitment system, training the assigned salespeople and
retaining qualified salespeople. Moreover, they should also try to enhance the use of
internet technology i.e. they should strive to accept the orders via e-mail and the
salespeople should be provided with the portable devices that can use the Internet to
distribute effectively and efficiently by building a strong communication between
manufacturers, salespeople, and customers.
While some businesses relying on sale forces for promotion, some are
choosing other alternative. In this alternative; dealers, distributors wholesalers and
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retailers are provided with the competitive commission which is higher than the
amount paid by the other businesses. This is such a good practice that it can help to
cooperate with the efficient dealers for a long time. Moreover, some businesses also
strive to establish the public relationship because they would like to establish long
term relationship with stakeholders who can influence the buyers' purchase decisions.
Although these businesses pay relatively more favour to promotion practices, they
still overlook some practices to be focused. These weaknesses are that they rarely
advertise via Facebook or websites, they fail to give free samples at the brand
introduction stage, to build public relations by sponsoring water to the households in
the vicinity of their factories.
In the analysis of marketing mix proportion, the businesses which practice for
place as the top priority focus on the product practices as a second priority which is
followed by the price and promotion practices. Businesses which are focusing most
on place practices are implementing the three things: distributing products through
multi-distribution channels, establishing the effective and efficient channel member
relationship and using the effective and efficient transportation modes. They put less
focus on the things such as the use of internet technology for distribution, making
plan to do contract with delivery people and retaining the efficient in-house
salespeople.
The businesses which are focusing most on promotion try to establish the long
term relationship with the customers as the first priority by providing the services
such as the exchange of new bottle if it is examined that the level of water is low or if
the seal of the bottle is detached or if it is examined there is sediment in the water.
The second priority of these businesses is paying attention to place practices by
providing home delivery service, exemption of bottle deposit for the placement of
products in shops or at homes. This service is especially concerned with 20 litre bottle
manufacturing.
Free bottle deposit is an effective way of retaining the customers when there is
strong competition among the businesses. This service can cost businesses dearly.
Businesses need to spend costs for bottles of three groups. The first group of bottles
are put in factories to be ready to sell, the second group of bottles will be placed on
the delivery vehicles and the third group of bottles will be in the homes and outlets of
customers. When the free deposit bottles are damaged, the charges go to the employer
and the employer must allow employees to replace old bottles with the new ones. The
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maximum life time of a bottle is one year and its lifespan is based on the maintenance
of the handler. There are two types of bottles: the blue bottle and the white bottle in
which the white ones are cheap and durable and their counterparts are expensive and
easily worn out. However, most customers prefer the blue to the white. Moreover, the
employer usually loses the free deposit bottles when some customers migrate from
their original homes or when some intermediaries abolish or migrate their outlets
without the knowledge of the employer.
As the third priority, these businesses try to extend the product line. In the
purified water manufacturing industry, 20 litre bottles are produced first which is
followed by the manufacturing of 1 litre bottles and 0.6 litre and 0.3 litre bottles are
produced even at the last stage. Some businesses produce the 20 litre bottles chiefly
and 1 litre, 0.6 litre and 0.3 litre bottles are produced only when they have the orders.
However, these businesses do not concentrate on the packaging in terms of size,
shape, and colour. Moreover, the businesses that practice the promotion most set the
price equally for different customers and for different target market segments because
they do not take into account the customers' ability to pay and perceived value
compared to the competitors' product. They should reconsider this point. If their
competitor considers this point, they will be knocked out.
As they concentrate on the promotion most and the place least, it can be
concluded that these businesses focus on the short-term benefits rather than the lone-
term benefits. They use advertising in time of product introduction stage and in
moments in which the supply is higher than the demand. As the advertising is done in
accordance with the situation, it can be said that it is good for the businesses. They
also use of telemarketing and direct mails. In these cases, telemarketing is mainly
used for promotion. Moreover, the price discounts are offered to the well-known
hotels and restaurants with the contract system with the intention of publicizing their
brand. They also provide higher amount of competitive commission to dealers or
distributers and they mainly focus on using the effort of sale forces by means of
personal selling.
The businesses which considered the pricing is the first priority to practice pay
much attention to their competitors' price. The businesses which are not differentiated
distinctively set the price the same as their competitors. The businesses which are
significantly differentiated the product usually set the price higher than their
competitors. Their second priority would be place because they usually concern their
77
distributors to give the information about pricing. In time of price rise, they
persuasively explain the reasons of price rise until customers accept it and they
usually inform about price decrease to their distributors in time in order to give
chance to them to store the products. The third priority of these businesses is
promotion by offering discounts when necessary. Providing the price promotion and
discounts is very suitable when the businesses have no loyal customers or in the rainy
or cold season. Only when the price promotion and discounts are offered, the
businesses can maintain the economies of scale to run full capacity (for fixed cost
sharing).
In purified drinking water market, there are significant number of customers
who think of quality first when they come to choose the purified drinking water.
However, their trust on specific brands will be resulted from effective communication
of giving attractive message about reliability and quality of these brands. If they
cannot have the brand that they preferred in time of need where they want, their
purchase decision will be largely based on product availability (place). If they can get
same quality brands with high availability, they will consider the price. Thus,
businesses who consider the product practices as first priority will pay attention
secondly to place (availability and market coverage), and thirdly to price. Although
they need to practice effective promotion practices for brand building, particularly at
the introduction stage, they will withdraw their promotion activities form market at
the other stages such as growth, early maturity and late maturity stages.

4.5 Descriptive Analysis on Firm’s Characteristics and Marketing Mix

In this study, according to the interview data, among the characteristics of
purified drinking water manufacturing businesses, three types of characteristics are
recommended. This is because these characteristics are suitable in analyzing the
influence on marketing mix of purified drinking water manufacturing businesses. In
the analysis of marketing mix, three situations are specialized and studied. These are
(1) sizes of business, (2) ownership form of business, and (3) firm‟s age.

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4.5.1 Size of Business and Marketing Mix
In the cases of size of business, three types of businesses are categorized and
studied. They are small size, medium size and large size businesses. To compare the
overall mean values of small, medium and large businesses, mean values of each size
of businesses are shown in the following tables. Mean values of each size of
businesses point out the mean differences between them. Table (4.8) summarizes the
mean values of marketing mix for small, medium and large businesses.

Table (4.8) Marketing Mix Based on Size of Businesses

Small Medium Large
Sr. No. Marketing Mix (68) (8) (8)
Mean Mean Mean
1 Product 3.01 3.45 3.82
2 Price 2.82 3.05 3.56
3 Place 3.16 3.19 3.74
4 Promotion 2.51 3.20 3.65
5 Marketing Mix Proportion 26:24:28:22 27:23:25:25 26:24:25:25
Source: Survey Data (2017-2018)

The marketing mix proportion of large sized businesses is 26:24:25:25. It is

found that generally, these businesses focus on the product, the price, the place and
the promotion equally. The marketing mix proportion of medium sized businesses is
27:23:25:25. It is found that these businesses mainly focus on the product but slightly
focus on the price. The marketing mix proportion of small sized businesses is
26:24:28:22. These businesses mainly focus on the place but slightly focus on the
promotion.

4.5.2 Ownership Form and Marketing Mix

To compare the proportions of practices in marketing mix by ownership form,
overall mean values of marketing mix practices of sole proprietorships, partnerships
and companies are summarized in Table (4.9).

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 Table (4.9) Marketing Mix Based on Ownership Form of Businesses
Sole
Partnership Company
Proprietorship
(10) (4)
Sr. No Marketing Mix (70)

Mean Mean Mean

1 Product 3.09 3.19 3.68

2 Price 2.89 2.89 3.22
3 Place 3.22 3.13 3.42
4 Promotion 2.60 2.88 3.28
5 Marketing Mix
26:25:27:22 26:24:26:24 27:24:25:24
Proportion
Source: Survey Data (2017-2018)

Purified drinking water manufacturing businesses with ownership form of

private limited company emphasize much on product practices. It is relatively more
important for them to follow the guidelines of FDA and also must have the approval
from FDA. Most of such businesses are also running legally with licenses. When the
information about the product is publicized to the public, they used to highlight the
point that the brand is officially certified by the FDA. Since there are many informal
businesses – the businesses that are not certified by FDA and the businesses that do
not use systematic water purifying processes, labelling process is very important for
registered businesses to build brand image with differentiation, and to protect from
imitation their brand names by uncertified businesses. Besides they pay most favour
to product quality and design, they also pay relatively more attention to place, price,
and promotion by comparing with businesses of other ownership forms.
Since they are running as officially registered companies, they have to try for
economies of scale by covering sufficient market coverage. Thus, they have appointed
employees not only for production but also for distribution. Moreover, they must rely
also on intermediaries such as dealers, wholesalers, retailers, and businesses which
need purified drinking water bottles to sell their major products accompanying
purified drinking water bottles. Thus, place practices secondly followed to product
practices. They normally practice promotion just for public awareness on brand at the
introduction stage, and they are not striving for price competitiveness.

80
 According to the proportions of practices in marketing mix of businesses
established with sole proprietorship and partnership forms, they pay first priority to
place practices. However, they follow the different approach from the approach of
private companies to distribution (place). Most of them do not hire employees for
delivery. They can distribute drinking water bottles to their end users (households) by
giving commission to freelance delivery people. They also do not need to establish the
delivering facilities (e.g., delivery vans). Since they are targeting to households
nearby their factories, the freelance delivery people can use other low cost vehicles
such as trollies, carts and so on. Some businesses ask for deposits from such delivery
people, some do not. The price is normally fixed for all customers. They pay less
attention to product by quality and also by packaging. Although they have to be
registered to run their businesses legally, they do not have passion to follow FDA
guidelines with continuous and regular practices. They may pay attention to these
guidelines at the time of checking by FDA.
From detail analysis on price practices of businesses of all forms of
ownership, although businesses with ownership form of private company usually set
the price differently on different customers for different segments, most of the
businesses in all sole proprietorship and partnership forms set their price based on the
competitors' price. However, there are differences in some pricing factors among
them. In businesses with ownership form of company, although the transportation cost
is the same, the price distributed to the regions which have affluent socioeconomic
condition is higher than the price distributed to the regions which have the
socioeconomic condition is low. In other words, the companies took into account the
ability to pay the customers in case of price setting. Perceived value compared to
competitors' price is considered by both sole proprietorships and the companies.
Consumers have low perceived value for the products which are distributed in the
market having no certifications from FDA.
In the detail analysis of distribution practices, partnership businesses and
companies consider the efficiency and effectiveness in selecting delivery modes and
planning to set the delivery rates. The products are distributed through the multi
distribution channels especially by the partnership businesses. In companies, sale
people are recruited carefully and they are also well-trained to meet the needs of the
workplace. The companies used to plan to have instant contact with customers all the
time.
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 In the detail analysis of promotion practices, it is found that all the businesses
use two practices of promotion. The first one is using the sale forces or personal
selling for promotion. The second one is building long-term relationship with key
stakeholders who influence buyers' purchasing decisions. The sole proprietorship and
partnership businesses usually provide the competitive commissions to the dealers.
The companies utilize the method of advertising depending on the situation and they
normally use advertising through mass media.

4.5.3 Firm’s Age and Marketing Mix

In the analysis of firms‟ age, the businesses are categorized into three groups:
younger aged group (less than five year), medium aged group (between five and ten
year) and older aged group (more than ten year).
To compare the proportions of practices to marketing mix in these three
groups, mean values of marketing mix practices by firm‟s age are shown in Table
(4.9).

Table (4.10) Marketing Mix Based on Age of Businesses

Sr. No. Younger Medium-Aged
Older Group
Group Group
Marketing Mix (24)
(38) (22)
Mean Mean Mean
1 Product 3.04 3.21 3.19
2 Price 2.84 3.02 2.91
3 Place 3.15 3.29 3.27
4 Promotion 2.55 2.80 2.80
5 Marketing Mix
26:25:27:22 26:24:27:23 26:24:27:23
Proportion
Source: Survey Data (2017-2018)

The marketing mix proportion of the younger businesses is 26:25:27:22. These

businesses mainly focus on place and these businesses concentrate on the promotion
least. The marketing mix proportion of the medium-aged businesses is 26:24:27:23.
These businesses mainly focus on place and these businesses concentrate on the

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promotion least. However, it is found that the amount of concentration on the
promotion is greater than the businesses with short term firm‟s age. The marketing
mix proportion of the older businesses is 26:24:27:23. This proportion is the same as
the marketing mix proportion of medium-aged businesses. These businesses mainly
focus on place and these businesses concentrate on the promotion least.
In the analysis of product, the younger businesses usually focus on broad
product line (with different sizes and different packaging form) and labelling
functions but they are weak in practices for unique and attractive packaging. They
perceived the packaging innovation activities as not value added activities.
The medium-aged businesses usually focus on labelling and establishing long
term relationship with customers. However, they are weak at new product
development. The new product development of water can be conducted by
considering colour, taste, ingredients and water technology. Most of medium-aged
businesses are very conventional and they are not imaginative to create new product
development idea.
The older businesses have established the broad product line by providing
products with different sizes, and different packaging forms. These businesses offer
the services such as home delivery and exemption from deposit. These businesses also
strive to establish long term relationship with key customers. The size of packages is
the same as the size of competitors because the use of varied sizes needs to order the
ready-made standardized bottles and customizing the bottle sizes can cost the
businesses dearly. If businesses do not want to pay the additional charges, they have
to invest in building the bottle producing facilities for that only larger companies are
capable.
In the analysis of price, the younger businesses take into account the
competitor's price and the customers' perceived value compared to competitors'
product. They do not consider in advance how to set the price. They evaluate their
competitors‟ prices, and they try to set same price by adjusting only costs of
production, distribution, and promotion.
Although medium-aged businesses take into account the competitor's price
and the customers' perceived value compared to competitors' product, they also
conduct the price promotions and discount pricing.
The older businesses usually take into account the customers' ability to pay
and the competitors' price. In these businesses, the external environment has an effect
83
on their strategies. During this decade, businesses are running in the dynamic
environment where adaptation to the external environment plays a key role for the
sustainable success of the businesses. As these businesses can adapt to the external
environment, they can maintain their success for a long time.
In the analysis of place, the younger businesses focus on establishing strong
relationship with intermediaries and using telemarketing to distribute their products. It
can be said that in practicing of place, the younger businesses are practicing similar to
medium-aged businesses but both of these businesses have practices different from
the practices of older ones.
The older businesses usually try to utilize the multi-channel and try to focus
on establishing strong relationship with the channel members. As these businesses
usually rely on the intermediaries, they do not emphasize on retaining the qualified
salesperson.
In the analysis of promotion, the younger businesses use of the sale forces for
promotion by means of personal selling. In addition, these businesses also provide the
competitive commissions to dealers, retailers and wholesalers for promotion. It is
found that the Internet, Facebook and websites are hardly used for promotion.
Although younger businesses and medium-aged businesses provide the competitive
commissions to intermediaries, the older businesses are trying to attract intermediaries
and end users through mass media marketing. They are penetrating into broad market.

4.6 Analysis on Effect of Firm’s Characteristics on Marketing Mix

In this study, the effect of characteristics of businesses on marketing mix is
analyzed. The data type for variables of characteristics of businesses is nominal type.
For this case, linear regression analysis is not appropriate. Thus, dummy variable
regression is applied. Marketing mix practices are dependent variables and the
characteristics of businesses are independent variables. Since the four elements of
marketing mix are approached, the effect of characteristics of businesses on each of
these four is analyzed.

4.6.1 Analysis on Effect of Firm’s Size on Marketing Mix

In this analysis, two approaches are used: approach of using mean value data
and approach of using ratio data to measure marketing mix variables (dependent

84
variables). This analysis intends to test hypothesis 1 as shown in Chapter (1) relating
to effect of firm‟s size on marketing mix.

Testing Hypothesis (1): There is an effect of firm‟s size on marketing mix practices
of purified drinking water manufacturing businesses in Yangon.

In this study, the dummy variable regression is applied to test the effect of
sizes of businesses on marketing mix variables. Each element of marketing mix is the
dependent variable and the sizes of businesses are independent variables. Marketing
mix variables consist of product, price, place and promotion. Since the four variables
of marketing mix are approached, the effects of sizes of businesses on each of these
four variables are analyzed.
The result from analysis on the effect of size of business on product variable
by mean values is:

Product = 3.007 +0.814 (large) + 0.439 (medium)

SE : (0.039) (0.120) (0.120)
t : (77.161)*** (6.780)*** (3.658)***

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

As these regression results show that product mean value of small businesses
is 3.007, the coefficient of large businesses is significant at 1% level and it can be said
that there is effect of size of being large on the product variable. The mean value of
product variable of large businesses is 0.814 higher than small businesses. The
coefficient of medium businesses is significant at 1% level and it can be said that
there is effect of size of medium on the product variable. The mean value of product
variable of medium businesses is 0.439 higher than small businesses. Therefore, the
overall conclusion is that statistically the product mean values of small, medium and
large businesses are not about the same. Thus, there is significant effect of sizes of
businesses on firm‟s product variable. Small sized businesses only focus on FDA
quality certificate while medium and large sized businesses focus not only FDA
quality certificate but also product design, packaging, broad product lines and new
product development. These medium and large sized businesses focus broad market

85
target and they are strength in financial condition while small sized businesses
normally focus on target markets which are near to their plants.
The result from analysis on the effect of size of business on product variable
by marketing mix proportion ratio is:

Product = 26.176 -0.176 (large) + 0.199 (medium)

SE : (0.243) (0.750) (0.750)
t : (107.637)*** (- 0.235) (0.265)

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

These regression results show small sized businesses perform 26.18% for
product variable. It can be said that statistically the level of emphasis (ratio) on
product variable is about the same among small, medium and large size of businesses.
In this analysis, the effect of sizes of businesses on price variable is also
examined. The result from analysis on the effect of size of business on price
approached with mean value is:

Price = 2.817 +0.747 (large) + 0.231 (medium)

SE : (0.048) (0.149) (0.149)
t : (58.449)*** (5.029)*** (1.553)

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

According to these regression results, the price mean value of small businesses
is 2.817. The coefficient of large businesses is significant at 1% level. Therefore, the
overall conclusion is that statistically the price mean values of small and large
businesses are not about the same. Thus, there is significant effect of sizes of
businesses on firm‟s price practices. Most of the large businesses focus on numerous
target markets so they need to manipulate their pricing activities to meet the needs of
these different target markets.

86
 The result from analysis on the effect of size of business on price variable by
marketing mix proportion ratio is:

Price = 24.529 -0.529 (large) -0.904 (medium)

SE : (0.255) (0.787) (0.787)
t : (96.105)*** (- 0.673) (-1.150)

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

According to these regression results, small sized businesses perform 24.53%

for price variable. The overall conclusion is that statistically the level of emphasis
(ratio) on the price variable is about the same among small, medium and large size of
businesses.
In this analysis, the effect of size of business on place variable is also
examined. The result from analysis on effect of size of business on place practices
which are approached with mean value is:

Place = 3.162 +0.575 (large) + 0.031 (medium)

SE : (0.062) (0.192) (0.192)
t : (50.896)*** (3.003)*** (0.164)

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

Concerning these regression results, the place mean value of small businesses
is 3.162. The coefficient of large businesses is significant at 1% level. Therefore, the
overall conclusion is that statistically the place mean values of small and large
businesses are not about the same. It can be concluded that there is significant effect
of sizes of businesses on firm‟s place practices. Most of the small businesses focus on
direct distribution while most of the large businesses focus on not only direct
distribution but also indirect distribution by using wholesalers and retailers as
intermediaries. Besides most of the small businesses distribute their product through
freelance person by paying commission, most of the large businesses trained and
retained talented sales person to distribute their product.

87
 The result from analysis on the effect of size of business on place practices by
marketing mix proportion ratio is:

Place = 27.397 -2.147 (large) -2.647 (medium)

SE : (0.409) (1.259) (1.259)
t : (67.062)*** (- 1.705)* (-2.102)**
*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

In according with these regression results, the coefficient of large size is

significant at 10% level. The coefficient of medium size is significant at 5% level. It
can be said that there are effects of sizes of large and medium on the place variable.
Small sized businesses perform 27.4% for place variable. Therefore, the overall
conclusion is that statistically the level of emphasis (ratio) on the place variable is not
about the same. Thus, there is significant effect of sizes of businesses on firms‟ place
variable. The major strength of small businesses is their economy way of distribution
method and door to door service. They are weak in branding. So, they put more effort
and increase their level of emphasis on place variable which is their favourite element
among marketing mix variables.
In this analysis, the effect of sizes of businesses on promotion variable is also
examined. The result from analysis on the effect of size of business on promotion
evaluated with mean value is:

Promotion = 2.513 +1.137 (large) + 0.687 (medium)

SE : (0.044) (0.136) (0.136)
t : (57.133)*** (8.384)*** (5.065)***
*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level
Regarding these regression results, the promotion mean value of small
businesses is 2.513. The coefficient of large and medium businesses is significant at
1% level. Thus there is significant effect of sizes of businesses on firm‟s promotion
practices. Medium and large businesses normally focus numerous target markets and
often nation-wide target markets. So, these medium and large businesses are
practicing more on promotion activities to build their brand through mass media
marketing. Small and medium businesses only use pamphlets and vinyl to promote
their product and build their brand through word-of-mouth of their customers.

88
 Result of analysis on effect of size of business on promotion variable
approached with marketing mix proportion ratio is:

Promotion = 21.941 +2.684 (large) +2.934 (medium)

SE : (0.355) (1.094) (1.094)
t : (61.790)*** (2.452)** (2.681)***

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

The coefficient of large size is significant at 5% level. The coefficient of

medium size is significant at 1% level. It can be said that there are effect of sizes of
large and medium on the promotion variable. Small sized businesses perform 21.94%
for promotion variable. Therefore, the overall conclusion is that statistically the level
of emphasis (ratio) on the promotion variable is not about the same. So, there is
significant effect of sizes of businesses on firms‟ promotion variable. This is because
most of the medium and large businesses try to build their brands and they have
strength in financial resources to perform promotion activities such as national
advertising. Moreover, their target markets are widespread while the targets of small
businesses are narrow.
By concerning the results as shown above, the hypothesis (1) “There is an effect of
firm‟s size on marketing mix practices of purified drinking water manufacturing
businesses in Yangon” can be accepted.

4.6.2 Analysis on Effect of Ownership Form of Business on Marketing Mix

In this analysis, two approaches are used: approach of using mean value data
and approach of using ratio data to measure marketing mix variables (dependent
variables). This analysis intends to test hypothesis 2 as described in Chapter (1)
relating to effect of ownership form on marketing mix.

Testing Hypothesis (2): The ownership form of purified drinking water

manufacturing businesses in Yangon is relating to their marketing mix practices.
In this test, each element of marketing mix is the dependent variable and the
ownership forms of businesses are independent variables. Since the four elements of
marketing mix are approached, the effects of ownership form of businesses on each of

89
these four elements are analyzed. The three ownership forms of businesses such as
company, partnership and sole proprietorship are accounted for this analysis.
Result from analysis on effect of ownership form of businesses on product
practices measured with mean value is:

Product = 3.086 +0.591 (company) + 0.100 (partnership)

SE : (0.047) (0.203) (0.134)
t : (65.332)*** (2.910)*** (0.746)

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

The coefficient of company businesses is significant at 1% level and it can be

said that there is effect of type of company on the product variable. The product mean
value of sole proprietorship is 3.086. Since the product mean values of sole
proprietorship, partnership and company businesses are not the same. Thus, there is
significant effect of ownership forms of businesses on firm‟s product practices.
Result from analysis on effect of ownership form of businesses on product
variable approached by marketing mix proportion ratio is:

Product = 26.1 +0.9 (company) +0.3 (partnership)

SE : (0.239) (1.026) (0.675)
t : (109.404)*** (0.877) (0.445)

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

As these regression results show, sole proprietorships perform 26.1% for

product variable. Therefore, the overall conclusion is that statistically the level of
emphasis (ratio) on the product variable is about the same among sole proprietorships,
partnerships and companies. The reason is similar to the sizes of businesses that all
purified drinking water manufacturing businesses in this study pass the FDA
standards and water is related to health issue. These businesses try to upgrade the
water quality as much as they can. Moreover, they do the same manner especially in
customer service and customer relationship.

90
 In this analysis, the effect of ownership form of businesses on price variable is
also examined. The result from analysis on the effect of for the effect of ownership
form of business on price variable approached with mean value is:

Price = 2.895 +0.325 (company) -0.005 (partnership)

SE : (0.054) (0.232) (0.153)
t : (53.585)*** (1.399) (-0.033)

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

As these regression results show, the price mean value of sole proprietorship is
2.895. Since it is found that statistically the price mean values of sole proprietorship,
partnership and company businesses are nearly the same.
Result from analysis on the effect of ownership form of businesses on price
variable approached with marketing mix proportion ratio is:

Price = 24.5 -0.750 (company) -0.600 (partnership)

SE : (0.252) (1.086) (0.714)
t : (97.076)*** (-0.691) (-0.841)

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

As these regression results show, sole proprietorships perform 24.5% for price
variable. The overall conclusion is that statistically the level of emphasis (ratio) on the
price variable is about the same. The reason is that most of the businesses set their
price based on competitors‟ price and their target market price. Other factors in
pricing are rarely considered.
In this analysis, the effect of ownership form of businesses on place variable is
also examined. Result from analysis on effect of ownership form of businesses on
place variable approached with mean value is:

Place = 3.221 +0.194 (company) -0.087 (partnership)

SE : (0.064) (0.276) (0.182)
t : (50.131)*** (0.701) (-0.480)
*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

91
 As these regression results show, the place mean value of sole proprietorship
is 3.221. It is found that statistically the place mean values of sole proprietorship,
partnership and company businesses are nearly the same.
Result from analysis on effect of ownership form of businesses on place
variable approached with marketing mix proportion ratio is:

Place = 27.214 -1.714 (company) -1.614 (partnership)

SE : (0.412) (1.773) (1.166)
t: (66.029)*** (-0.967) (-1.385)

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

As these regression results show, sole proprietorships perform 27.21% for

place variable. The overall conclusion is that statistically the level of emphasis (ratio)
on the place variable is about the same. This is because the common practices of all
businesses are utilizing the efficient and effective channels, and establishing channel
member relationship.
In this analysis, the effect of ownership form of businesses on promotion
variable is also examined. The result for the effect of ownership form of businesses on
promotion variable approached with mean value is:

Promotion = 2.626 +0.649 (company) +0.254 (partnership)

SE : (0.060) (0.257) (0.169)
t : (43.972)*** (2.528)** (1.506)

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

As these regression results show, the promotion mean value of sole

proprietorship is 2.626. The coefficient of company businesses is significant at 5%
level and it can be said that there is effect of company businesses on the promotion
variable. It is found that statistically the promotion mean-values of sole
proprietorship, partnership and company businesses are not about the same, it can be
concluded that there is significant effect of ownership form of businesses on firm‟s
promotion variable.

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 Result from analysis on effect of ownership form of businesses on promotion
practices approached with the marketing mix proportion ratio is:

Promotion = 22.143 + 1.857(company) + 2.057 (partnership)

SE : (0.364) (1.564) (1.029)
t : (60.876)*** (1.187) (2.000)**

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

As these regression results show, sole proprietorships perform 22.14% for

place variable. The coefficient of partnership businesses is significant at 5% level. It
can be said that there is an effect of partnership businesses on the promotion variable.
Therefore, the overall conclusion is that statistically the level of emphasis (ratio) on
the promotion variable is about the same between sole proprietorship and company
and is not about the same between sole proprietorship and partnership. Thus, there is
partially significant effect of ownership form of businesses on firms‟ promotion
variable. This is because partnership businesses utilize the method of advertising
depending on situation and advertising through mass media marketing while sole
proprietorship businesses are weak in these activities. Consequently, the hypothesis
(2) “The ownership form of purified drinking water manufacturing businesses in
Yangon is relating to their marketing mix practices” is partially accepted.

4.6.3 Analysis on Effect of Firm’s Age on Marketing Mix

In this analysis, two approaches are used: approach of using mean value data
and approach of using ratio data to measure marketing mix variables (dependent
variables). This analysis intends to test hypothesis 3 as described in Chapter (1)
relating to effect of firm‟s age on marketing mix.

Testing Hypothesis (3): There is a relationship between firm‟s age and marketing
mix practices in purified drinking water manufacturing businesses in Yangon.
In this study, the effect of firm‟s age on marketing mix is also examined. Each
element of marketing mix is the dependent variable and the firm‟s age is independent
variables. Since the four elements of marketing mix are approached, the effects of

93
firm‟s age on each of these four elements are analyzed. At first, the effect of firm‟s
age on product variable is analyzed.
The effect of firm‟s age on the product variable of purified drinking water
manufacturing businesses in Yangon by using approach of measuring their practices
with mean values can be seen as:

Product= 3.038 +0.154 (long term) +0.170 (medium term)

SE : (0.066) (0.106) (0.109)
t : (45.921)*** (1.446) (1.555)

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

Depending on these regression results shown, the product mean value of

businesses (less than five operating years) is 3.038. It is found that statistically the
product mean value of businesses which have long term and medium term firm‟s age
are nearly the same.
Result from analysis on effect of firm‟s age on product practices approached
with marketing mix proportion ratio is:

Product = 26.263 -0.055(long-term) -0.263 (medium-term)

SE : (0.325) (0.523) (0.537)
t : (80.783)*** (-0.105) (-0.490)
*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

As these regression results show, the businesses which have short term firm‟s
age perform 26.26% for product variable. It is found that statistically the levels of
emphasis (ratio) on the product variable are nearly the same. This is because most of
the businesses are very conventional and they are not very imaginative to create new
product development ideas.
In this analysis, the effect of firm‟s age on price variable is also examined. The
results for the effect of firm‟s age on price variable approached with mean value are:

Price = 2.844 +0.069 (long term) +0.175 (medium term)

SE : (0.073) (0.118) (0.121)
t : (38.817)*** (0.585) (1.443)
*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

94
 Concerned with these regression results shown, the price mean value of
businesses (less than five operating years) is 2.844. It is found that statistically the
price mean values of younger, medium-aged, and older businesses are nearly the
same.
Result from analysis on effect of firm‟s age on pricing practices approached
with marketing mix proportion ratio is:

Price = 24.632 -0.757(long-term) -0.086 (medium-term)

SE : (0.341) (0.547) (0.562)
t : (72.334)*** (-1.382) (-0.153)

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

As these regression results show, the businesses which have short term firm‟s
age perform 24.63% for price variable. It is found that statistically the levels of
emphasis (ratio) on price practices of businesses with various age levels are nearly the
same. This is because most of the businesses take into account the same practices
such as competitors‟ price and customers‟ perceived value. On the other hand, they
do not consider in advance how to set the price when the customers ask for the label
that they like in place of their original label. However, this kind of request is very
rare.
In this analysis, the effect of firm‟s age on place variable is also examined.
The results for the effect of firm‟s age on place variable approached with mean value
are:

Place = 3.147 +0.122 (long term) +0.145 (medium term)

SE : (0.087) (0.140) (0.144)
t: (36.201)*** (0.877) (1.011)

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

As these regression results show, the place mean value of businesses (less than
five operating years) is 3.147. It is found that statistically the place mean values of
businesses with various age levels are nearly the same.

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 Result from analysis on effect of firm‟s age on place variable approached with
marketing mix proportion ratio is:

Place = 27.132 -0.382(long-term) -0.313 (medium-term)

SE : (0.568) (0.913) (0.938)
t : (47.789)*** (-0.418) (-0.334)

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

As these regression results show, the businesses which have short term firm‟s
age perform 27.13% for place variable. It is found that statistically the levels of
emphasis (ratio) on the place practices of businesses with various age levels are nearly
the same. This is because most of the businesses take into account the same practices
such as establishing efficient and effective channel member relationship, using
telemarketing to distribute their products. However, they do not consider internet
technology in their place variable.
In this analysis, the effect of firm‟s age on promotion variable is also
examined. The results for the effect of firm‟s age on promotion variable approached
with mean value is:

Promotion= 2.553 +0.243 (long term) +0.247 (medium term)

SE : (0.083) (0.133) (0.136)
t : (30.915)*** (1.833)* (1.814)*

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

As these regression results show, the promotion mean value of businesses (less
than five operating years) is 2.553. The coefficient of businesses which have long
term firm‟s age is significant at 10% level and it can be said that there is effect of
firm‟s age (long term) on the promotion variable. The coefficient of medium term
operated businesses is also significant at 10% level and it can be said that there is
effect of firm‟s age (medium term) on the promotion variable. Since it is found that
statistically the promotion mean-values of younger, medium-aged, and older
businesses are not about the same, it can be concluded that there is significant effect
of term of firm‟s age on firm‟s promotion practices.

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 Result from analysis on effect of firm‟s age on promotion variable approached
with marketing mix proportion ratio is:

Promotion= 22.053 + 0.864 (long-term) +0.675(medium-term)

SE : (0.505) (0.811) (0.834)
t : (43.693)*** (1.065) (0.809)

*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

As these regression results show, the businesses which have short term firm‟s
age perform 22.05% for promotion variable. The overall conclusion is that
statistically the level of emphasis (ratio) on the promotion variable is about the same.
This is because most of the businesses make use of the sale forces for promotion by
means of personal selling. In addition, these businesses also provide the competitive
commissions to dealers, retailers and wholesalers for promotion. It is found that the
Internet, Facebook and websites are hardly used for promotion. Consequently, the
hypothesis (3) “There is a relationship between firm‟s age and marketing mix
practices in purified drinking water manufacturing businesses in Yangon” is
fractionally accepted.

4.7 Analysis on Effect of Marketing Mix on Firm’s Performance

This analysis intends to test the hypothesis (4) as shown in Chapter (1) relating
to marketing mix and firm performance. Firm performance is measured with four
criteria such as changes in sales revenue, sales volume, profit and firm‟s growth by
number of employees during recent one year.

Testing Hypothesis (4): There is an effect of marketing mix practices of purified

drinking water manufacturing businesses in Yangon on their performance.
In this study, multiple linear regression statistics is applied to test this
hypothesis. Performance is the dependent variable and the marketing mix variables
are independent variables.
As mentioned in Chapter (3), there are six assumptions of multiple linear
regression analysis. The first assumption of Multiple Regression is that the
relationship between independent variables and dependent variable can be
characterized by a straight line. In this analysis, this assumption is tested by reviewing
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the normal probability plot. According to the output for normal probability plot, the
relationship between marketing mix variables and performance can be characterized
by a straight line (See Appendix of Regression Output).
Assumption 2 is that “there is no multicollinearity in data”. This assumption is
to test that the independent variables are not too highly correlated. For the assumption
to be met (no multicolliniarity in independent variables), VIFs scores needed to be
well below 10, and tolerance scores to be above 0.2. All these criteria are covered in
this analysis.
Assumption 3 is that “the values of the residuals are independent”. Durbin-
Watson statistics can be checked. In this analysis, this value is close to 2. Thus, the
assumption-3 is met.
Assumption 4 is that “the variance of the residuals is constant”. This
assumption (assumption of homoscedasticity) is the assumption that variation in the
residuals (or amount of error in the model) is similar at each point of the model. In
this analysis, the scatter plot is not in funnel shape. Thus, this assumption is also met.
Assumption 5 is that “the values of the residuals are normally distributed”.
This assumption can be tested by probability plot. The closer the dots lie to the
diagonal line, the closer to normal the residuals are distributed. In this analysis,
residuals are normally distributed (See Appendix of Regression Output).
Assumption 6 is that “there are no influential cases biasing the model”. This
assumption can be tested by looking at the Cook‟s distance values. All values are not
over 1. Thus, this assumption is met.
Since all the assumptions are met, the test is continued to analyze the
relationship between marketing mix and performance. In this anslysis, since the
performance is measured with four criteria, the hypothesis (4) is tested by developing
sub-hypotheses such as hypothesis (4-a), hypothesis (4-b), hypothesis (4-c), and
hypothesis (4-d) as shown in Chapter 1.

Testing Hypothesis (4-a): There is an effect of marketing mix practices on

performance by sales revenue.
In this study, multiple linear regression analysis is conducted to test the
relationship between marketing mix and the difference in sales revenue of this year
and of last year. The results for the effect of marketing mix on sales revenue are
shown in Table (4.11).
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 Table (4.11) Effect of Marketing Mix on Sales Revenue
Independent Beta Sig. t tolerance VIF
Variables
Product -.343 .920 -.100 .488 2.049
Price 5.356* .088 1.725 .489 2.043
Place 15.284*** .000 6.383 .590 1.695
Promotion 1.590 .557 .589 .494 2.024
R .740
R Square .548
Adjusted R Square .525
Durbin-Watson 2.033
F (P<0.05) 23.965
Source: Survey Data (2017-2018)
*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

As shown in Table (4.11), R (the correlation between the observed value and
the predicted value of dependent variable) is 0.740. Thus the growth levels of sales
revenue reported by respondents and the levels predicted for them by independent
variables are correlated. R2 (proportion of the variance in the dependent variable
accounted by model) is 0.548 and adjusted R2 is 0.525. Thus the model has accounted
for 52.5% of the variance in the dependent variable.
It is also found that the relationship between place variable and sales revenue
is positively significant at 95% confidence interval. Moreover, price variable is also
marginally correlated with p = 0.088. The data finding analyzed also shows that
taking all other independent variables at zero, a unit increase in place activities will
lead to a 15.284 units increase in effect on sales revenue growth. In addition, a unit
increase in price activities will lead to a 5.356 units increase in effect on sales revenue
growth while taking all other independent variables at zero. However, the relationship
between product and promotion variables and sales revenue is not significant. This is
because the health awareness concerned with purified drinking water is not very high
among the public of Myanmar and product quality is standardized in the eyes of
average customers. Moreover, the historical effect is still strong on minds of
Myanmar people when they make buying decision on drinking water. They usually
choose a few pioneer brands and they are normally low brand loyalty concerning new
coming brands.
There is no autocorrelation in sample because the Durbin Watson value is
2.033 (nearly 2). All VIFs (variance inflation factor) of independent variables are less
99
than 10. Thus there is no problem of multicollinearity (correlation between
independent variables). According to the results from the survey, it can be concluded
that there is an effect of place and price variable on sales revenue of purified drinking
water manufacturing businesses.
To increase sales revenue, place and price variable should be emphasized. All
the other marketing mix variables such as product and promotion variables are not too
supportive to the growth of sales revenue. Thus, in purified drinking water
manufacturing businesses in Yangon, effective and efficient distribution practices and
manipulating pricing decision will lead to increasing the growth of sales revenue.
Consequently, the hypothesis (4-a) “there is an effect of marketing mix practices on
performance by sales revenue” can be partially accepted.

Testing Hypothesis (4-b): There is an effect of marketing mix practices on

performance by sales volume.
In any type of businesses, performance should not be assessed only with sales
revenue because businesses would practice increasing price due to various reasons,
and if so, growth in sales revenue is not the result from increasing demand of
customers or increasing the number of customers. Thus, in this analysis, performance
is also measured with sales volume.
In this study, multiple linear regression analysis is conducted to test the
relationship between marketing mix and the growth rate of sales volume. The results
for the effect of marketing mix on sales volume are shown in Table (4.12).

Table (4.12) Effect of Marketing Mix on Sales Volume

Independent Beta Sig. t tolerance VIF
Variables
Product -.620 .877 -.156 .488 2.049
Price 5.332 .145 1.472 .489 2.043
Place 13.724*** .000 4.912 .590 1.695
Promotion -1.137 .719 -.361 .494 2.024
R .638
R Square .407
Adjusted R Square .377
Durbin-Watson 2.120
F (P<0.05) 13.552
Source: Survey Data (2017-2018)
*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

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 As shown in Table (4.12), R (the correlation between the observed value and
the predicted value of dependent variable) is 0.638. Thus the growth levels of sales
revenue reported by respondents and the levels predicted for them by independent
variables are correlated. R2 (proportion of the variance in the dependent variable
accounted by model) is 0.407 and adjusted R2 is 0.377. Thus the model has accounted
for 37.7% of the variance in the dependent variable.
It is also found that the relationship between place variable and sales volume
is positively significant at 95% confidence interval. The data finding analyzed also
shows that taking all other independent variables at zero, a unit increase in place
activities will lead to a 13.724 units increase in effect on sales volume growth.
However, the relationship between product, price and promotion variables and sales
volume is not significant. This is concerned with customers‟ ability to pay
,willingness to pay and perceived value compared to competitors‟ product. In
addition, there is no handy measurable machine for the public to test the sanitation of
the water; the consumers bought only cheap drinking water due to the thought of the
same quality with cheaper price compared to the branded drinking water.
There is no autocorrelation in sample because the Durbin Watson value is
2.120 (nearly 2). All VIFs (variance inflation factor) of independent variables are less
than 10. Thus there is no problem of multicollinearity (correlation between
independent variables). According to the results from the survey, it can be concluded
that there is an effect of place variable on sales volume of purified drinking water
manufacturing businesses.
To increase the growth rate of sales volume, place variable is necessary. All
other marketing mix variables such as product, price and promotion variables are not
too supportive to the growth of sales revenue. Thus, in purified drinking water
manufacturing businesses in Yangon, effective and efficient distribution practices will
lead to increasing the growth of sales revenue. Consequently, the hypothesis (4-b)
“There is an effect of marketing mix practices on performance by sales volume” is
partly accepted.

Testing Hypothesis (4-c): Performance measured with growth by number of

employees is relating to marketing mix practices.
Purified drinking water manufacturing businesses become largely rely on
strength of workforce when they gained success in market. If a brand is highly

101
accepted in market, manufacturers must be conscious on product availability, market
coverage, and reliable delivery service. Thus, in this industry, firm performance
should be measured also with growth in number of employees.
In this study, multiple linear regression analysis is conducted to test the
relationship between marketing mix and the growth rate of number of employees. The
results for the effect of marketing mix on number of employees are shown in Table
(4.13).
Table (4.13) Effect of Marketing Mix on Number of employees
Independent Variables Beta Sig. t tolerance VIF
Product 2.983 .464 .737 .488 2.049
Price 5.794 .119 1.576 .489 2.043
Place 13.635*** .000 4.807 .590 1.695
Promotion -3.948 .220 -1.235 .494 2.024
R .664
R Square .441
Adjusted R Square .412
Durbin-Watson 1.496
F (P<0.05) 15.559
Source: As shown
Survey in (2017-2018)
Data Table (4.13), R (the correlation between the observed value and
the**,
*, predicted value statistical
***: Indicate of dependent variable)at isthe0.664.
significance Thus 5%
10% level, the level
growthandlevels of sales
1% level
revenue reported by respondents and the levels predicted for them by independent
variables are correlated. R2 (proportion of the variance in the dependent variable
accounted by model) is 0.441 and adjusted R2 is 0.412. Thus the model has accounted
for 41.2% of the variance in the dependent variable.
It is also found that the relationship between place variable and growth of
number of employees is positively significant at 95% confidence interval. The data
finding analyzed also shows that taking all other independent variables at zero, a unit
increase in place activities will lead to a 13.635 units increase in effect on number of
employees‟ growth. However, the relationship between product, price and promotion
variables and number of employees‟ growth is not significant. The reasons relate with
the nature of product. Although purified drinking water manufacturing businesses are
not service producing businesses, this type of businesses must also provide
accompanying service to customers such as door to door service. To achieve
competitive advantage, most of these businesses are more emphasis on customer
service. So, employees are much more needed than ever before.

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 There is no autocorrelation in sample because the Durbin Watson value is
1.496 (nearly 2). All VIFs (variance inflation factor) of independent variables are less
than 10. Hence, there is no problem of multicollinearity (correlation between
independent variables). According to the results from the survey, it can be concluded
that there is an effect of place variable on growth of number of employees of purified
drinking water manufacturing businesses.
To increase the growth rate of number of employees, place variable is a
necessarity. All other marketing mix variables such as product price and promotion
variables are not too supportive to the growth of number of employees. Thus, in
purified drinking water manufacturing businesses in Yangon, effective and efficient
distribution practices will lead to increase the growth of number of employees.
Consequently, the hypothesis (4-c) “Performance measured with growth by number
of employees is relating to marketing mix practices” is fractionally accepted.

Testing Hypothesis (4-d): Performance measured with profit is relating to

marketing mix practices.
Although the type of product focused in this study is commodity type or
consumable product type, profit should not be neglected to evaluate the performance
of business. There are businesses that are gaining profit by emphasizing on narrow
market scope and price competition, and snot emphasizing on product quality and
facilities and human resources for distribution. At the other side, other businesses are
gaining profit by emphasizing on product quality, distribution network, and
promotion. Thus, to analyse the effect of marketing mix on performance of purified
drinking water manufacturing businesses, the firm performance should be measured
with changes in profit during recent one year.
In this study, multiple linear regression analysis is conducted to test the
relationship between marketing mix and the growth rate of profit. The results for the
effect of marketing mix on profit are shown in Table (4.14).

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 Table (4.14) Effect of Marketing Mix on Profit
Independent Beta Sig. t tolerance VIF
Variables
Product -4.942 .225 -1.222 .488 2.049
Price 2.337 .526 .636 .489 2.043
Place 16.556*** .000 5.846 .590 1.695
Promotion .461 .885 .145 .494 2.024
R .634
R Square .402
Adjusted R Square .372
Durbin-Watson 2.008
F (P<0.05) 13.282
Source: Survey Data (2017-2018)
*, **, ***: Indicate statistical significance at the 10% level, 5% level and 1% level

As shown in Table (4.14), R (the correlation between the observed value and
the predicted value of dependent variable) is 0.634. Thus the growth levels of
profitability reported by respondents and the levels predicted for them by independent
variables are correlated. R2 (proportion of the variance in the dependent variable
accounted by model) is 0.402 and adjusted R2 is 0.372. Thus the model has accounted
for 37.2% of the variance in the dependent variable.
It is also found that the relationship between place variable and profitability is
positively significant at 95% confidence interval. The data finding analyzed also
shows that taking all other independent variables at zero, a unit increase in place
activities will lead to a 16.556 units increase in effect on profit growth. However, the
relationship between product, price and promotion variables and profit growth is not
significant. This is because inherent reason of buying purified drinking water may be
convenience. Thus, the place factor or availability at place where the buyers want the
product to use may be important for growing profit of businesses.
There is no autocorrelation in sample because the Durbin Watson value is
2.008 (nearly 2). All VIFs (variance inflation factor) of independent variables are less
than 10. Thus there is no problem of multicollinearity (correlation between
independent variables). According to the results from the survey, it can be concluded
that there is an effect of place variable on profit of purified drinking water
manufacturing businesses.

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 To increase the growth rate of profit, place variable is necessary. All other
marketing mix variables such as product, price and promotion variables are not too
supportive to the growth of profit. Thus, in purified drinking water manufacturing
businesses in Yangon, effective and efficient distribution practices will lead to
increasing the growth of profit.
Thus, the hypothesis (4-d) “Performance measured with profit is relating to
marketing mix practices” is partially accepted.

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 Chapter 5
Conclusion

This chapter extracted significant research findings that have emerged from
the analysis of research data on businesses‟ characteristics, marketing mix and
performance of purified drinking water manufacturing businesses in Yangon. Some
discussions relating to each of these research findings are also presented in this very
first part of the chapter.
The second part of the chapter is shown with suggestions and
recommendations which are made by adding the knowledge from general observation
on this market, and in-depth interview with some selected manufacturers to the
research findings.
Any research should uncover the hidden issues of focused industry, and should
give new knowledge to solve the problems or for further improvement in this
industry. Since this study intends to give new knowledge to solve some problems of
existing businesses running in purified drinking water industry, both business
implications and policy implications are suggested in the third part of this chapter.
The final part of this chapter is for enclosing the areas which could be touched
in further studies. Thus, some limitations of this study are enclosed in this final part.

5.1 Findings and Discussions

There are (344) purified drinking water manufacturing businesses in Yangon
according to the FDA (2016). Among these “344” businesses, “84” businesses are
selected as surveyed firms for this study.
Major findings consist of the results from analysis on marketing mix,
relationship between businesses‟ characteristics and marketing mix, and effect of
marketing mix on performance of purified drinking water manufacturing businesses.
From the analysis on dominant practices of marketing mix, it is found that
product and place marketing mix elements are dominating in most of the purified
drinking water manufacturing businesses. Small businesses normally focus on target

106
markets that are proximity to their plants. Thus, these businesses can reduce their
delivery cost and they can also save money by reducing promotion expenses. Product
variable is the most emphasized variable of medium and large sized businesses. They
normally focus on numerous target markets which are both of near and far away from
their plants. Thus, these businesses cannot well control their cost because they have to
spend relatively larger amount of money for delivery. They rely on their product
quality to attract customers. To communicate their product‟s distinct attributes, they
also need to spend promotion budget.
Purified drinking water manufacturing businesses are fairly committed in
practices on product. However, according to the results of each item, it is found that
they show weaknesses in introducing new product development as a strategic tool,
being unique and attractive product packaging and focusing on customers‟ needs and
wants based on research and development data for product package size. The reason
for this is that most of the purified drinking water manufacturing businesses do not
introduce new product as a strategic tool in their growth and continuation. This relates
to the fact that the nature of product quality is standardized in the eyes of average
customers.
From survey results, it is found that most respondents are not giving priority to
pricing practices. The price-setting is mainly based on competitors‟ price, customer‟s
perceived value compared to the competitors‟ products and also based on customers‟
ability to pay. In most businesses, it is also found that there is also a lack of
commitment in practicing different promotion tools. They rely on using sales force as
the main source of promotion and the other way is paying competitive commissions to
retailers, wholesalers, dealers and business partners who are willing to do delivery of
large volumes on a continuing, long-term basis. It can be said that most of the
businesses are more favoured in practicing place activities. This can be related with
the nature of product and perception of customers.
From analysis on the relationship between firm‟s characteristics and marketing
mix, it is found that there is no significantly effect of sizes of businesses on marketing
practices for product and price. Form general observation, it can be inferred that
larger manufacturing businesses are practicing more for product quality, and smaller
businesses are emphasizing on price. Larger firms can spend more budget in
distribution and promotion and smaller firms do not have intention to spend budget in
distribution and promotion. Thus, in this study, from analysis on survey data, it can
107
be concluded that the firm‟s size can influence on practices on place and promotion.
Although larger businesses cannot handle delivery to send the product right time to
their customers, they can make effort to build their brands and they are also stronger
in financial resources to perform promotion activities such as national advertising.
Moreover, their target markets are wide spread while the targets of small businesses
are narrow.
From analysis on effect of firm‟s characteristics on marketing mix, it is also
found that the firm‟s ownership form and firm‟s age are relating to practices on
promotion although it is not relating to firm‟s practices on product, price and
place/distribution. Partnership businesses are strong to utilize the method of
advertising through mass media marketing while sole proprietorship businesses are
weak in these activities.
Concerning the age of businesses, the older businesses have already positioned
their brands in market, and they already gained market acceptance. For the new
entrants and younger firms, it is difficult to get public awareness on their brands
unless relying on promotion tools. Thus, firm‟s age is relating with promotion
practices. However, there is no effect of firm‟s age on other marketing mix elements:
product, price and place. Businesses with any age cannot manage the price because
the price is decided by customers and also by competing manufacturers. The nature of
product is a limit the manufacturers (both older and younger ones) to practice
significant innovation in product; and distribution is also not related to firm‟s age.
Although the approaches are different, both older and younger businesses are giving
same level of effort to place practices.
In the case of firm‟s performance, in general, performance of businesses
which emphasizes more on place element of marketing mix are the highest which are
followed by the businesses that are emphasizing price and product elements and the
lowest performers are businesses in which promotion activities are dominating.
However, these findings should be reviewed by taking into consideration of other
influencing factors.
According to product life cycle, younger businesses, both smaller and larger,
are normally at the introduction state. Hence, they should practice more on promotion
activities. However, older businesses are at the growth stage of product life cycle
because these businesses remain in the market for a long time and have well

108
established their brand. So, they should not more on promotion activities to build their
brand.
Concerning sized of businesses, it is impossible for small sized businesses to
expand their target market due to financial weaknesses. So these businesses only
focus the nearby target market. Maintaining the relationship with existing customers
is rather enough for small businesses. Regarding medium sized businesses, it is
necessary to practice more on promotion activities for building their brands and
protecting their market share because they focus on numerous target markets and face
attack of their competitors.
Moreover, customers‟ needs and wants, health awareness, willingness to pay,
ability to pay, etc, should also be taken into consideration in designing promotion
practices. If customers have health awareness, willingness to pay and ability to pay,
businesses should promote their products through mass media marketing. If the
customers will not like that, the businesses should not spend more budgets on
promotion activities because these customers are very low brand loyalty. Unless
customers have ability to pay in spite of having health awareness, businesses can
reduce their cost by applying economy way of promotion (such as pamphlet, vinyl,
telemarketing, etc,) and distribution, there by setting price matched with customers‟
ability to pay.
According to the above mentioned facts, it seems unreasonable to assume that
promotion dominant practicing businesses are low performer businesses. Factors such
as product life cycle, customers‟ health awareness, willingness to pay, ability to pay,
brand loyal condition, customers‟ needs and wants, financial condition and firms‟
characteristics are influencing the relationship between promotion practices and
performance. Similarly, any other dominant practicing businesses (product dominant,
price dominant and place dominant) should design their marketing mix practices by
taking into consideration the above mentioned influencing factors. As a result,
purified drinking water manufacturing businesses can increase their performance
more than before.
From analysis on effect of marketing mix on performance by sales revenue,
sales volume, profit and number of employees, it is found that only distribution
(place) practices of purified drinking water manufacturing businesses will lead to
good performance measured with all aspects. In this industry, businesses with any age
and any size are emphasizing much on practices for distribution (place). While larger
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businesses with old age have been establishing well organized distribution facilities
and networks, smaller and young businesses are penetrating into market areas by
using economy way of distribution. These market areas – outskirt areas of Yangon –
are not attractive to larger old businesses because of consumers‟ inability to pay, and
their low awareness on quality of water, and very low brand loyalty.
Smaller and young manufacturing businesses are gaining economies of scale
by tactfully practicing delivery techniques which are fitted to their capacity and also
to the willingness and ability of their customers. These businesses outsourced the
distribution function to freelance delivery persons by giving fees for delivery service.
The delivery persons will try harder to sell out the products than the delivery
employees hired by larger businesses. Their income is tied with the units sold out.
Thus, they try hard for strong relationship with customers by providing flawless
delivery by time, by availability and also by extra service. In this study, it is obviously
found that the commitment of businesses in distribution practices will lead to increase
in sales revenue and sales volume, profit, and also firm‟s growth by number of
employees.
In purified drinking water manufacturing businesses in Yangon, smaller young
businesses are penetrating into their targeted markets with price competitiveness. To
protect market share, larger old businesses are creating new brands to be launched
into markets with low prices. These pricing practices are also relating to performance
by sales volume. The pricing practices will not lead to sales revenue, profit and firm‟s
growth by adding more employees. These practices will lead only to sales volume
(units sold out).
As conclusion, in purified drinking water manufacturing industry of Yangon,
manufacturers can gain success if they can practice distribution techniques which are
favoured by their strengths as well as these techniques can overcome their
weaknesses. Moreover, for survival in market or to retain the market share, they also
need to change their pricing practices to be in line with their operation capacity and
also with the level of customers‟ willingness to pay.

5.2 Suggestions and Recommendations

Based on the findings of the analysis, most of the purified drinking water
manufacturing businesses do not introduce new product, through innovation or
improvements, as a strategic tool in their growth and continuation. This relates to the
110
fact that the nature of product quality is standardized. However, these businesses
should try to introduce new product based on taste, smell, nutritious ingredient,
purifying technology, etc, to increase their performance. Moreover, some businesses
outsource to acquire purified water to fulfill the demand in the hot season. In that
case, businesses should follow the systematic procedure to do contract/agreement
with outsource suppliers in an ethical manner. This means that outsource suppliers
must possess the FDA permission.
It is also found that most of the businesses are not interested in product
packaging. Almost all of the businesses are producing their products with the same in
package size. In addition, the types and the shapes of most products are also similar.
To broaden the interest and commitment of public in purified drinking water,
businesses should redesign their packaging based on color, size, pattern and recycle
materials.
Most of the businesses usually do not practice in setting prices by concerning
offering something different, by concerning different customer groups or different
target market segments and by concerning customization. To maintain and improve
their current existence, they should pay attention to these activities in designing price.
For business to business marketers, customization should be emphasized because
today businesses give more favour to expressing their identity. In addition, the
changes of business environment should also be considered in setting price and
maintaining quality standards and this fact is very important. In this competitive era,
the businesses are running in the dynamic environment that adaptation to the external
environment plays a key role for the sustainable success of the businesses. As these
businesses can adapt to the external environment, they can maintain their success for a
long time. If the FDA‟s intervention becomes strong enough to move out all sub-
standard quality manufacturers, and citizens‟ health awareness and their per capita
income increased, well-established and quality oriented manufacturers can gain
sustainable sales growth as well as sustainable profitability.
As some businesses usually rely on the intermediaries, they rarely retain the
qualified sale person. This is wrong behaviour because sale persons are the sources to
get up to date market information and they have product knowledge. Therefore,
businesses should carefully recruit and train sale persons and retain talented sale
persons but incentive program should be added to their pay.

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 It is also found that they indicate weaknesses in using electronic distribution
channels such as the internet to deliver their product. This is because most of the
purified drinking water manufacturing businesses rarely use internet in case of
business functions. Today era is information technology era. Hence, they should take
the advantages of such external opportunities as having the potential to expand new
geographic markets and trying to enter into large local market by using internet
technology such as email, web site, and social media – Facebook. Internet based
distribution can reduce numerous intermediaries and can contact directly with
consumers. Moreover, businesses in Yangon should detect their transportation
approach to overcome the traffic jam in an effective and efficient manner.
Most of the businesses are weak in promotion activities because of the
perception of practicing promotion functions especially advertising is related to cost.
These businesses should change their attitudes because the reasons for advertising are
more than one such as to inform, to educate, to persuade, to influence and to remind.
Advertising assists in selling by drawing attention to the characteristics of a product
which will appeal to the buying motives of customers in the target segment of the
market.
Based on the results of findings from regression analysis, place activity is
important to increase the performance. High performance businesses are establishing
channel member relationship, telemarketing, distributing through multi-channel,
careful recruit and training sale persons, choosing efficient transportation mode and
managing optimum delivery systems. All other marketing mix variables such as
product, price and promotion variables are not too supported to the performance of
purified drinking water manufacturing businesses in Yangon. Moreover, businesses
that pay highly attention to promotion have the lowest performance improvement
while the improvement of the performance of businesses that committed in place
activities is the highest.
In fact, the most influential factor for customers‟ choice of brand is
availability in time though some customers take into account the product as their
priority. Therefore, the purified drinking water businesses should put the place as their
first priority, the price as the second priority and they should play the promotion and
product strategies by looking after the changes of business environment and changes
in needs of customers. However, purified drinking water manufacturing businesses
require different unique marketing mix proportion based on their size and experience
112
because findings from results show that size and age are influencing factors on
marketing mix practices.
The study also points out general implications for the future. Consuming
unlicensed drinking water could carry health risks: fungus and bacteria in this
drinking water can pose health hazards, such as diarrhea and worms, as well as other
bad consequences depending on the harmful chemicals in the unhygienic water.
Unregistered brands will not guarantee hygiene; they might even use tap water.
However, many people who are living in countryside; where most households are
poor households; do not pay attention to hygiene when they are buying purified
drinking water. They are not conscious on health problems which would be resulted
from disqualified water. They pay more attention to convenience to buy and low
price; rather to brand image, FDA recommendation on product, and hygiene. They
just pay a little attention to cleanliness of bottles (containers) in their eyesight.
On the other side, setting-up a small-scale purification factory is fairly simple
and can even be done in a residential house or a compound, and their production
capacity is not too low: they can produce about fifty to a hundred 20-liter bottles per
day. These factories had proliferated in recent years. Although FDA instructs
registered businesses to put FDA approved stamp on the bottle if they passed FDA
recommendation, it is still difficult for FDA to inspect all new brands coming on to
the market. Even if FDA found unhygienic brands, the enforcing a ban on these
brands will also be difficult. It is easy to change the unlicensed brand names after
FDA announces that these brands are unhygienic.
Many small water-purifying facilities are built in the compound of regular
houses. They do not observe the rules of hygiene. Some operations are situated in the
open air, sometimes even near grazing cattle or sewage run-off. Although FDA works
with municipal authorities to check, test, and issue recommendations and local
authorities are taking responsibilities for granting licenses and implementing a ban
and shutdown of facilities, many unlicensed brands are still alive in industry due to
many weaknesses in getting quick information about such brands, intermittent
inspection and follow-up procedures. There are normally no further checks carried out
since to enforce the order to ban unlicensed brands.
Not all of the purified drinking water manufacturing businesses passed FDA
recommendation. In the market, both FDA passed businesses and FDA failed
businesses are in competition. In this case, some of the businesses which got FDA
113
recommendation are less competitive. To get FDA recommendation and maintain this
condition, businesses incur high cost. As a result, these FDA passed businesses are
less competitive in pricing condition. On the other hand, most of the purified drinking
water consumers neglected whether or not their chosen brands have FDA
recommendation. They assume the purity of purified drinking water is concerned with
the newness of purified drinking water container. Thus, some of the businesses are
trying to replace the new containers with the old containers rather than trying to get
FDA recommendation. Therefore, some of the businesses which got FDA
recommendation feel dilemma to maintain FDA standards.
Concerning the registered enterprises of manufacturing purified water, it is
necessary to continuously examine the quality of the water. In the other side, actions
need to be taken to the illegal enterprises of manufacturing purified water. If not so,
besides the currently registered enterprises (business), the new comers of
manufacturing purified water will become less eager to be registered. The reason is
that the businesses that have been registered do not gain particular outcomes.
Consequently, the long-term of purified water world, it would be an unpleasant
matter.
Regarding business implications for the future, purified drinking water is used
not only to drink but also to cook, and even to wash dishes and vegetables. Moreover,
purified drinking water is also used for medical purposes. While the role of purified
drinking water is significant in daily lives, to control the quality of purified drinking
water, only large businesses possess internal laboratory with sophisticated quality
control devise. Most of the small businesses control their water quality with test paper
to identify the water colour. Most of the businesses do not consider as important in
product packaging to be recycle and green purpose. Similarly, most of the consumers
do not take into account this fact as important.
Purified drinking water manufacturing businesses distribute their purified
drinking water within their townships and surrounding townships can take more
competitive advantage on price attractiveness. Most of the businesses set price for
their product based on competitors‟ price, market price and average price. Although
they are relying on market penetration strategy, market skimming strategy is utilized
by the businesses which are interested in the connection between the quality of a
product and its price. In other words, the strategy is based on the ideology that the
better the product's quality is, the higher the price is. The result of setting high price
114
leads to the removal of the consumers' doubts about the quality of the products.
Market penetration pricing strategy is applied by the businesses with no authorized
brands or the businesses which are not very eager to be well-known brands among the
public.
In the analysis of the relationship between distribution and labour turnover,
purified drinking water is seasonal product so the demand is higher in hot season than
in rainy and cold season. The hot season demands are three times the rainy and cold
season demand. In the rainy and cold season, some businesses provide financial
support to their dealers to continue their relationship. The most popular criteria among
the businesses to choose dealers are sales strength, credit and financial condition,
reputation, clean working condition, being resident and convenient with businesses‟
regular transportation route. However, these barriers to good margin can be solved if
businesses delegate the delivery and finding customer responsibilities to freelance
delivery persons.
Water is essential for human life, and the time needed for water is impossible
to postpone. As a result, right time distribution is the first priority of consumers in
selecting brands. In the past, large businesses can keep nationwide market coverage
but now local small businesses are more favorable because of any time availability
and convenience to buy especially in hot season. Most of the customers rarely switch
from one supplier to another supplier for price. The main reason for switching from
one supplier to another supplier is insufficient distribution to fulfill the customers‟
demand.
At the other side, some businesses can build relationship with reliable dealers:
they search dealers among their existing reliable employees or employees‟ family.
Some of the successful businesses treat their employees as their dealers. This means
that employees are paid based on fixed salary plus commission. This is because
demand of the product is seasonal. Labour turnover rate will be high in hot season if
the businesses practice fixed salary system.
Moreover, it is easy for intermediaries to switch to competitors if businesses
are unable to distribute their products at the right time they need. To solve this
distribution problem, businesses need to retain their employees especially in hot
season. If the target market is in downtown and the businesses distribute their product
directly to their final consumers, employees need to lift the 20 liters container to the
higher layers of the buildings. In this case, businesses allow fixed price for product to
115
their labour and their labour charge higher price from their customers for the higher
layer within the price range defined by their businesses owners.
In the hot season, the capacity of some of the businesses is not enough to
fulfill the high demand. To solve this problem, they usually practice outsourcing. To
strengthen the relationship between businesses and their dealers, the main point is to
pay high profit margin to the dealers. Generally, most of the businesses said that fifty
percent of the profit is allocated between their dealers and labour, and the rest fifty
percent is allocated to the owners.
To search the dealers, most of the large businesses mainly rely on personal
selling. Salespeople are at the best position to know about potential intermediaries.
They are often able to pick up information about likely intermediaries. They have
lined up prospective intermediaries. Promotion also concerns with collateral for 20
liters container. Some of the purified drinking water manufacturing businesses insist
on collateral for their containers. Generally, most of the businesses charge fifty
percent of containers‟ value as collateral. In markets, most of the dealers prefer
manufacturers who do not charge collateral for containers and who use nearly new
containers.
Some of the alcohol, soft drink, and also gasoline businesses used purified
drinking water as promotional materials. These manufacturing businesses used one
buy one get promotion program. As a result, beverage dealers do not buy purified
drinking water. Purified drinking water manufacturers should approach to such
businesses, not to dealers.
Promotional tools would be supportive for getting public awareness on new
brand if manufacturers would like to build brand image in market. However,
promotion tools would not be necessary for local manufacturers who would like to
take advantage on customers‟ preferences on place utility and price competitiveness.
In conclusion, purified drinking water manufacturing businesses can generally
be grouped into two: group of businesses with core values of brand prestige, quality
position in market, and targeting not only to consumer market but also to industrial
market (businesses such as hotels, travelling, restaurants, gasoline stations, and so on)
and group of businesses with objectives to penetrate niche markets, to practice cost-
focus strategy, and just to get return on investment at satisfactory level, and with no
intentions to upgrade production capacity and to expand market. Since their mission,
strategies, core values, and objectives are quite different from each other, they need to
116
choose relevant marketing mix tactics, especially place and price tactics, to be
supportive to their mission and objectives.

5.3 Needs for Further Studies

This study assesses the relationship between business characteristics and
marketing mix, and the relationship between marketing mix and firm performance of
purified drinking water manufacturing businesses in Yangon. The analyses are
conducted based on the data collected in 2017. Some business characteristics which
may influence on marketing mix are not included in this study. This study only
analyzes the effects of firm size, ownership form and age on marketing mix and
excludes the effects of other characteristics. Thus, further researchers can extend this
research by counting the other firm‟s characteristics such as the capital structure,
innovativeness, research and development facilities as influencing factors on
marketing mix in purified drinking water manufacturing businesses not only in
Yangon.
This study is limited to focus only on Yangon area. Since the need of purified
water is increasing in other areas including the rural areas and number of
establishment of small-scale facilities in such areas, further research can be done to
include the situations of such areas.
Although the marketing mix elements included in this study seems to be
enough to analyse the cases of manufacturing sector, other extended elements should
also be considered in the future. Purified drinking water businesses would not be seen
as purely manufacturing businesses in future because this type of business must also
provide accompanying service to customers. Moreover, other three extended
marketing mix elements such as process, people, and physical evidence become
critical in purified drinking water manufacturing businesses. To convince customers
with price and product; people (employees) must have product knowledge and high
health awareness relating to water, the production and delivering processes must also
be managed for controlling hygiene quality, and the physical evidence of all facilities
must also be publicized. Thus further studies should add these three elements to the
four elements of this study.
In this study, the effect of marketing mix is analysed on firm‟s performance.
To provide more new knowledge to both existing manufacturers and potential new
entrants, effect on other performance areas such as competitive performance and
117
strategic performance should also be considered. Moreover, the financial performance
is approached with incomplete quantitative measures. In this study, performance data
are collected by asking the approximate percentage of increase or decrease in sales
revenue, sales volume, profit and number of employees comparing the performance of
last year. For more validity and accuracy in results, absolute value data for such
performance criteria should be collected in further studies.

118
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 APPENDIX A
Questionnaire

Yangon University of Economics

Department of Commerce
Research Questionnaire
(Analysis on Relationship between Marketing Mix and Performance of Purified Drinking
Water Manufacturing Businesses in Yangon)
This survey only concerned with Doctor of Philosophy (PhD) conferred by Yangon
University of Economics. Please kindly answer the following questions. The result of this
study contributes the improvement of Purified Drinking Water Industry in Myanmar. Thanks
to give your precious time.

I. Marketing Mix Questionnaire

Please use the following scales to indicate the importance your firm (or business unit)
currently places on each marketing practice. The scale ranges from 1 to 5. One (1) stands for
“Strongly Disagree” and five (5) stands for “Strongly Agree”.
Scales (1) Strongly Disagree (2) Disagree (3) Neither Agree nor Disagree (4) Agree (5)
Strongly Agree
Product 1 2 3 4 5
1. Offers a broad product line. (0.3, 0.6, 1, 20 litres)
2. Introduces new product development as a strategic tool for
growth and continuation of business.
3. Provides service for our company’s product.(home
delivery, no bottle deposit for 20litres container, keep
promise in concern with delivery)
4. Provides unique and attractive product packaging (crush,
colour, design, shape, packaging size)
5. Provides package sizes which focus on customers’ needs
and wants based on R&D data.
6. Labels product in concern with open dating (expire date)
(to describe product freshness), purifying technology,
source of water (address).
7. Develops long-term relationships with key customers.
Price 1 2 3 4 5
1. Sets prices based on the offering something different
(home delivery, no bottle deposit for 20 liters)
2. Sets price based on different customer groups or different
target market segments.
3. Sets price based on customization. (shape, customer logo
on product packing, size)
4. Sets price based on customers’ ability to pay.
(affordability)
5. Sets a price based on competitors’ price to increase sales
and market share.
6. Sets a price based on the customer’s perceived value
compared to the competitors’ products.
7. Uses price promotions and discounts.
8. Communicates pricing changes to our customers when
required.
Place 1 2 3 4 5
1. Uses multi-distribution channels to deliver our product to
different customer groups. (Not only direct distribution
but also distribute through intermediaries such as retailers,
wholesalers, dealers, business partners).
2. Efficiently and effectively manages relationships with
channel members who are willing to commit to taking
delivery of large volumes on a continuing, long-term
basis.
3. Carefully recruits and trains of all marketing and sales
personnel.
4. Retains qualified sales persons who possess selling
certificate, or well-trained or experience in selling purified
drinking water.
5. Uses telemarketing to deliver our product
6. Uses electronic distribution channels such as the internet
to deliver our product. (super market)
7. Chooses effective and efficient transportation mode to
distributive our products. (right time and low costs)
8. Provides delivery routes which are properly planned and
executed.
9. Arranges for delivery drivers to maintain contact with the
main office during the day. (to control drivers and to
fulfill the irregular order)
Promotion 1 2 3 4 5
1. Advertises or promotes products depend on situation
(introduction stage and based on demand and supply)
2. Advertises or promotes to consumer is through mass
media marketing (pamphlet, billboards, advertising in TV
commercial, radio, printing materials such as journal and
newspaper).
 3. Uses Web/Internet advertising. (establish website or
through Facebook)
4. Place great emphasis on building long term relationships
with other organizations and institutions influencing
buyers’ purchasing decisions.
5. Uses direct marketing methods such as telemarketing,
direct mail for promoting our products and services
6. Uses sales force as the main source of promotion
7. Offers discounts especially in the rainy and cold season.
8. Offers free sample (give away) to our customer (brand
introduction)
9. Supplies of purified water at no charge in case of public
relation.
10. Pays competitive commissions to retailers, wholesalers,
dealers and business partners who are willing to commit
taking delivery of large volumes on a continuing, long-
term basis.

II. Business Performance Questionnaire

By comparing the performance of last year, please tick at relevant place in the following
table.

Sr. No. Performance Increase Decrease Unchanged

1. Sales revenue (Kyats)
2. Sales volume (Gallons of Water)
3. Number of employees
4. Profit

Please describe your firm’s performance in following Table with approximate percentage
change during this year and last year (base year is 2016):
If performance is increased, please insert percentage (%) with (+) sign,
If performance is decreased, please insert percentage (%) with (-) sign
If performance is unchanged, please insert “0”

Sr. No. Performance % Change

1. Sales revenue
2. Sales volume
3. Numbers of employee
4. Profit
*** If you have any other marketing activities that are not included in this questionnaire,
please note down them.
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
III. Firm Characteristics
1. Where is your company/business located?
-----------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------

2. What kind of business does your company belong to?

Sole Proprietorship Partnership
Private Company Public Company
Joint Venture Others

3. Number of years that the company operated.

< 5 years 5-10 years
> 10 years

4. How many employees are employed in your company/ business?

10-50 50-100
> 100 Others
 APPENDIX B
Product

Reliability Statistics
Cronbach's Alpha N of Items
.837 7

Validity (Factor Analysis)

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .825
Bartlett's Test of Sphericity Approx. Chi-Square 212.884
df 21
Sig. .000
Total Variance Explained
Initial Eigenvalues Extraction Sums of Squared Loadings
Component Cumulative % of
Total % of Variance Total Cumulative %
% Variance
1 3.561 50.870 50.870 3.561 50.870 50.870
2 .966 13.800 64.670
3 .798 11.401 76.072
4 .616 8.803 84.874
5 .444 6.340 91.214
6 .352 5.031 96.246
7 .263 3.754 100.000
Extraction Method: Principal Component Analysis
Component Matrixa
Component
Product
1
4 .841
5 .818
2 .815
7 .637
6 .620
1 .611
3 .596
Extraction Method: Principal Component Analysis.
a.1 components extracted
 Price
Reliability Statistics
Cronbach's Alpha N of Items
.854 8
Validity (Factor Analysis)
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .844
Bartlett's Test of Sphericity Approx. Chi-Square 254.83
df 28
Sig. .000

Extraction Method: Principal Component Analysis.

Total Variance Explained
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance Cumulative Total % of Cumulative %
Component % Variance
1 4.021 50.268 50.268 4.021 50.268 50.268
2 .956 11.950 62.218
3 .760 9.497 71.715
4 .649 8.107 79.822
5 .578 7.222 87.043
6 .461 5.765 92.808
7 .337 4.212 97.020
8 .238 2.980 100.000

Extraction Method: Principal Component Analysis

Component Matrixa
Component
Price 1
3 .793
2 .780
1 .773
6 .733
8 .728
5 .667
7 .642
4 .511
Extraction Method: Principal Component Analysis.
a.1 components extracted
 Place
Reliability Statistics

Cronbach's Alpha N of Items

.925 9

Validity (Factor Analysis)

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .852
Bartlett's Test of Sphericity Approx. Chi-Square 577.378
df 36
Sig. .000

Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Cumulative Total % of Cumulative
Component Variance % Variance %
1 5.725 63.608 63.608 5.725 63.608 63.608
2 .923 10.259 73.866
3 .621 6.902 80.769
4 .488 5.417 86.186
5 .436 4.844 91.030
6 .373 4.143 95.173
7 .188 2.093 97.266
8 .159 1.762 99.028
9 .087 .972 100.000
Extraction Method: Principal Component Analysis

Component Matrixa
Component
Place 1
7 .897
9 .870
8 .857
3 .857
2 .808
5 .742
6 .715
4 .704
1 .695
Extraction Method: Principal Component Analysis.
a.1 components extracted
 Promotion
Reliability Statistics

Cronbach's Alpha N of Items

.910 10

Validity (Factor Analysis)

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .855
Bartlett's Test of Sphericity Approx. Chi-Square 491.464
df 45
Sig. .000

Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Cumulative Total % of Cumulative %
Component Variance % Variance
1 5.622 56.220 56.220 5.622 56.220 56.220
2 .952 9.516 65.737
3 .829 8.292 74.029
4 .608 6.085 80.113
5 .522 5.224 85.338
6 .457 4.570 89.907
7 .350 3.503 93.411
8 .300 2.999 96.410
9 .237 2.366 98.776
10 .122 1.224 100.000
Extraction Method: Principal Component Analysis

Component Matrixa
Component
Promotion 1
7 .839
5 .797
8 .785
3 .784
1 .782
4 .733
9 .719
10 .712
6 .698
2 .626
Extraction Method: Principal Component Analysis.
a.1 components extracted
 Performance

Reliability Statistics
Cronbach's Alpha N of Items
.946 4

Validity (Factor Analysis)

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .819
Bartlett's Test of Sphericity Approx. Chi-Square 365.998
df 6
Sig. .000

Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings

Component Total % of Variance Cumulative % Total % of Variance Cumulative %

1 3.459 86.469 86.469 3.459 86.469 86.469

2 .326 8.139 94.608
3 .153 3.823 98.432
4 .063 1.568 100.000

Extraction Method: Principal Component Analysis.

Component Matrixa
Component
1
Sales Revenues .976
Sales Volume .946
Profit .922
Employee .873
Extraction Method: Principal Component Analysis.
a.1 components extracted

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
a
1 .635 .403 .388 .32135
a. Predictors: (Constant), dummy medium, dummy large
 ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 5.652 2 2.826 27.365 .000b
Residual 8.365 81 .103
Total 14.016 83
a. Dependent Variable: product mean
b. Predictors: (Constant), dummy medium, dummy large

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 3.007 .039 77.161 .000
dummy large .814 .120 .585 6.780 .000
dummy medium .439 .120 .316 3.658 .000
a. Dependent Variable: product mean

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .042a .002 -.023 2.00542
a. Predictors: (Constant), dummy medium, dummy large

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression .564 2 .282 .070 .932b
Residual 325.757 81 4.022
Total 326.321 83
a. Dependent Variable: product mean ratio
b. Predictors: (Constant), dummy medium, dummy large
 Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 26.176 .243 107.637 .000
dummy large -.176 .750 -.026 -.235 .814
dummy medium .199 .750 .030 .265 .792
a. Dependent Variable: product mean ratio

Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
1 .495a .245 .227 .39740
a. Predictors: (Constant), dummy medium, dummy large

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 4.161 2 2.081 13.175 .000b
Residual 12.792 81 .158
Total 16.954 83
a. Dependent Variable: price mean
b. Predictors: (Constant), dummy medium, dummy large

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 2.817 .048 58.449 .000
dummy large .747 .149 .488 5.029 .000
dummy medium .231 .149 .151 1.553 .124
a. Dependent Variable: price mean
 Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .140a .020 -.004 2.10472
a. Predictors: (Constant), dummy medium, dummy large

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 7.220 2 3.610 .815 .446b
Residual 358.816 81 4.430
Total 366.036 83
a. Dependent Variable: price mean ratio
b. Predictors: (Constant), dummy medium, dummy large

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 24.529 .255 96.105 .000
dummy large -.529 .787 -.074 -.673 .503
dummy medium -.904 .787 -.127 -1.150 .254
a. Dependent Variable: price mean ratio

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .317a .100 .078 .51237
a. Predictors: (Constant), dummy medium, dummy large

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 2.374 2 1.187 4.521 .014b
Residual 21.264 81 .263
Total 23.638 83
a. Dependent Variable: place mean
b. Predictors: (Constant), dummy medium, dummy large
 Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 3.162 .062 50.896 .000
dummy large .575 .192 .318 3.003 .004
dummy medium .031 .192 .017 .164 .870
a. Dependent Variable: place mean

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .275a .076 .053 3.36885
a. Predictors: (Constant), dummy medium, dummy large

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 75.423 2 37.711 3.323 .041b
Residual 919.279 81 11.349
Total 994.702 83
a. Dependent Variable: place mean ratio
b. Predictors: (Constant), dummy medium, dummy large

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 27.397 .409 67.062 .000
dummy large -2.147 1.259 -.183 -1.705 .092
dummy medium -2.647 1.259 -.226 -2.102 .039
a. Dependent Variable: place mean ratio
 Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .722a .521 .509 .36274
a. Predictors: (Constant), dummy medium, dummy large

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 11.578 2 5.789 43.994 .000b
Residual 10.658 81 .132
Total 22.236 83
a. Dependent Variable: promotion mean
b. Predictors: (Constant), dummy medium, dummy large

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 2.513 .044 57.133 .000
dummy large 1.137 .136 .649 8.384 .000
dummy medium .687 .136 .392 5.065 .000
a. Dependent Variable: promotion mean

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .359a .129 .107 2.92818
a. Predictors: (Constant), dummy medium, dummy large
 ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 102.438 2 51.219 5.974 .004b
Residual 694.515 81 8.574
Total 796.952 83
a. Dependent Variable: promotion mean ratio
b. Predictors: (Constant), dummy medium, dummy large

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 21.941 .355 61.790 .000
dummy large 2.684 1.094 .256 2.452 .016
dummy medium 2.934 1.094 .280 2.681 .009
a. Dependent Variable: promotion mean ratio

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .312a .097 .075 .39524
a. Predictors: (Constant), dummy partnership, dummy company

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 1.363 2 .682 4.363 .016b
Residual 12.653 81 .156
Total 14.016 83
a. Dependent Variable: product mean
b. Predictors: (Constant), dummy partnership, dummy company
 Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 3.086 .047 65.332 .000
dummy company .591 .203 .308 2.910 .005
dummy
.100 .134 .079 .746 .458
partnership
a. Dependent Variable: product mean

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .105a .011 -.013 1.99598
a. Predictors: (Constant), dummy partnership, dummy company

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 3.621 2 1.811 .455 .636b
Residual 322.700 81 3.984
Total 326.321 83
a. Dependent Variable: product mean ratio
b. Predictors: (Constant), dummy partnership, dummy company

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 26.100 .239 109.404 .000
dummy company .900 1.026 .097 .877 .383
dummy
.300 .675 .049 .445 .658
partnership
a. Dependent Variable: product mean ratio
 Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .154a .024 .000 .45201
a. Predictors: (Constant), dummy partnership, dummy company

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression .404 2 .202 .989 .376b
Residual 16.550 81 .204
Total 16.954 83
a. Dependent Variable: price mean
b. Predictors: (Constant), dummy partnership, dummy company

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 2.895 .054 53.585 .000
dummy company .325 .232 .154 1.399 .166
dummy partnership -.005 .153 -.004 -.033 .974
a. Dependent Variable: price mean

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .116a .013 -.011 2.11155
a. Predictors: (Constant), dummy partnership, dummy company
 ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 4.886 2 2.443 .548 .580b
Residual 361.150 81 4.459
Total 366.036 83
a. Dependent Variable: price mean ratio
b. Predictors: (Constant), dummy partnership, dummy company
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 24.500 .252 97.076 .000
dummy company -.750 1.086 -.077 -.691 .492
dummy partnership -.600 .714 -.093 -.841 .403
a. Dependent Variable: price mean ratio

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .098a .010 -.015 .53762
a. Predictors: (Constant), dummy partnership, dummy company

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression .226 2 .113 .391 .677b
Residual 23.412 81 .289
Total 23.638 83
a. Dependent Variable: place mean
b. Predictors: (Constant), dummy partnership, dummy company
 Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 3.221 .064 50.131 .000
dummy company .194 .276 .078 .701 .485
dummy partnership -.087 .182 -.053 -.480 .632
a. Dependent Variable: place mean

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .178a .032 .008 3.44836
a. Predictors: (Constant), dummy partnership, dummy company

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 31.517 2 15.758 1.325 .271b
Residual 963.186 81 11.891
Total 994.702 83
a. Dependent Variable: place mean ratio
b. Predictors: (Constant), dummy partnership, dummy company
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 27.214 .412 66.029 .000
dummy company -1.714 1.773 -.106 -.967 .336
dummy partnership -1.614 1.166 -.152 -1.385 .170
a. Dependent Variable: place mean ratio
 Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .301a .091 .068 .49960
a. Predictors: (Constant), dummy partnership, dummy company

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 2.018 2 1.009 4.043 .021b
Residual 20.217 81 .250
Total 22.236 83
a. Dependent Variable: promotion mean
b. Predictors: (Constant), dummy partnership, dummy company

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 2.626 .060 43.972 .000
dummy company .649 .257 .269 2.528 .013
dummy partnership .254 .169 .160 1.506 .136
a. Dependent Variable: promotion mean

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .242a .059 .035 3.04325
a. Predictors: (Constant), dummy partnership, dummy company
 ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 46.781 2 23.390 2.526 .086b
Residual 750.171 81 9.261
Total 796.952 83
a. Dependent Variable: promotion mean ratio
b. Predictors: (Constant), dummy partnership, dummy company

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 22.143 .364 60.876 .000
dummy company 1.857 1.564 .128 1.187 .239
dummy partnership 2.057 1.029 .216 2.000 .049
a. Dependent Variable: promotion mean ratio

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .197a .039 .015 .40781
a. Predictors: (Constant), dummy medium term, dummy long
term

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression .545 2 .273 1.640 .200b
Residual 13.471 81 .166
Total 14.016 83
a. Dependent Variable: product mean
b. Predictors: (Constant), dummy medium term, dummy long term
 Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 3.038 .066 45.921 .000
dummy long term .154 .106 .170 1.446 .152
dummy medium term .170 .109 .183 1.555 .124
a. Dependent Variable: product mean
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
a
1 .055 .003 -.022 2.00409
a. Predictors: (Constant), dummy medium term, dummy long term

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression .995 2 .497 .124 .884b
Residual 325.327 81 4.016
Total 326.321 83
a. Dependent Variable: product mean ratio
b. Predictors: (Constant), dummy medium term, dummy long term

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 26.263 .325 80.783 .000
dummy long term -.055 .523 -.013 -.105 .917
dummy medium term -.263 .537 -.059 -.490 .625
a. Dependent Variable: product mean ratio

Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
a
1 .158 .025 .001 .45172
a. Predictors: (Constant), dummy medium term, dummy long term
 ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression .425 2 .213 1.042 .357b
Residual 16.528 81 .204
Total 16.954 83
a. Dependent Variable: price mean
b. Predictors: (Constant), dummy medium term, dummy long term

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 2.844 .073 38.817 .000
dummy long term .069 .118 .069 .585 .560
dummy medium term .175 .121 .171 1.443 .153
a. Dependent Variable: price mean

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .158a .025 .001 2.09915
a. Predictors: (Constant), dummy medium term, dummy long
term

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 9.114 2 4.557 1.034 .360b
Residual 356.922 81 4.406
Total 366.036 83
a. Dependent Variable: price mean ratio
b. Predictors: (Constant), dummy medium term, dummy long term
 Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 24.632 .341 72.334 .000
dummy long term -.757 .547 -.164 -1.382 .171
dummy medium term -.086 .562 -.018 -.153 .879
a. Dependent Variable: price mean ratio

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .126a .016 -.008 .53590
a. Predictors: (Constant), dummy medium term, dummy long
term

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression .376 2 .188 .654 .523b
Residual 23.262 81 .287
Total 23.638 83
a. Dependent Variable: place mean
b. Predictors: (Constant), dummy medium term, dummy long term

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 3.147 .087 36.201 .000
dummy long term .122 .140 .104 .877 .383
dummy medium term .145 .144 .120 1.011 .315
a. Dependent Variable: place mean
 Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
1 .051a .003 -.022 3.49976
a. Predictors: (Constant), dummy medium term, dummy long term

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 2.588 2 1.294 .106 .900b
Residual 992.115 81 12.248
Total 994.702 83
a. Dependent Variable: place mean ratio
b. Predictors: (Constant), dummy medium term, dummy long term

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 27.132 .568 47.789 .000
dummy long term -.382 .913 -.050 -.418 .677
dummy medium term -.313 .938 -.040 -.334 .739
a. Dependent Variable: place mean ratio

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
a
1 .237 .056 .033 .50898
a. Predictors: (Constant), dummy medium term, dummy long
term
 ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 1.251 2 .626 2.415 .096b
Residual 20.984 81 .259
Total 22.236 83
a. Dependent Variable: promotion mean
b. Predictors: (Constant), dummy medium term, dummy long term

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 2.553 .083 30.915 .000
dummy long term .243 .133 .214 1.833 .071
dummy medium term .247 .136 .211 1.814 .073
a. Dependent Variable: promotion mean

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .127a .016 -.008 3.11129
a. Predictors: (Constant), dummy medium term, dummy long
term

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 12.861 2 6.430 .664 .517b
Residual 784.092 81 9.680
Total 796.952 83
a. Dependent Variable: promotion mean ratio
b. Predictors: (Constant), dummy medium term, dummy long term
 Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 22.053 .505 43.693 .000
dummy long term .864 .811 .127 1.065 .290
dummy medium term .675 .834 .096 .809 .421
a. Dependent Variable: promotion mean ratio

REGRESSION

b
Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate Durbin-Watson
a
1 .740 .548 .525 8.94177 2.033

a. Predictors: (Constant), promotion mean, place mean, price mean, product mean
b. Dependent Variable: SALES REVENUES GROWTH

a
ANOVA

Model Sum of Squares df Mean Square F Sig.

b
1 Regression 7664.486 4 1916.121 23.965 .000

Residual 6316.466 79 79.955

Total 13980.952 83

a. Dependent Variable: SALES REVENUES GROWTH

b. Predictors: (Constant), promotion mean, place mean, price mean, product mean

Coefficientsa
Unstandardized Standardized
Collinearity Statistics
Coefficients Coefficients
Model t Sig.
Std.
B Beta Tolerance
Error VIF
1 (Constant) 42.475 8.294 5.121 .000
product mean -.343 3.419 -.011 -.100 .920 .488 2.049
price mean 5.356 3.104 .187 1.725 .088 .489 2.043
place mean 15.284 2.394 .628 6.383 .000 .590 1.695
promotion
1.590 2.698 .063 .589 .557 .494 2.024
mean
a. Dependent Variable: SALES REVENUES GROWTH
 b
Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate Durbin-Watson
a
1 .638 .407 .377 10.43357 2.120

a. Predictors: (Constant), promotion mean, place mean, price mean, product mean
b. Dependent Variable: SALES VOLUME GROWTH

a
ANOVA

Model Sum of Squares df Mean Square F Sig.

b
1 Regression 5901.005 4 1475.251 13.552 .000

Residual 8599.887 79 108.859

Total 14500.893 83

a. Dependent Variable: SALES VOLUME GROWTH

b. Predictors: (Constant), promotion mean, place mean, price mean, product mean

Coefficientsa
Unstandardized Standardized
Collinearity Statistics
Coefficients Coefficients
Model t Sig.
Std.
B Beta Tolerance
Error VIF
1 (Constant) 55.823 9.678 5.768 .000
product mean -.620 3.989 -.019 -.156 .877 .488 2.049
price mean 5.332 3.622 .182 1.472 .145 .489 2.043
place mean 13.724 2.794 .554 4.912 .000 .590 1.695
promotion
-1.137 3.148 -.045 -.361 .719 .494 2.024
mean
a. Dependent Variable: SALES VOLUME GROWTH

b
Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate Durbin-Watson
a
1 .664 .441 .412 10.59204 1.496

a. Predictors: (Constant), promotion mean, place mean, price mean, product mean
b. Dependent Variable: EMPLOYEE GROWTH
 a
ANOVA

Model Sum of Squares df Mean Square F Sig.

b
1 Regression 6982.131 4 1745.533 15.559 .000

Residual 8863.107 79 112.191

Total 15845.238 83

a. Dependent Variable: EMPLOYEE GROWTH

b. Predictors: (Constant), promotion mean, place mean, price mean, product mean
Coefficientsa
Unstandardized Standardized
Collinearity Statistics
Coefficients Coefficients
Model t Sig.
Std.
B Beta Tolerance
Error VIF
1 (Constant) 67.421 9.824 6.863 .000
product
2.983 4.050 .089 .737 .464 .488 2.049
mean
price
5.794 3.677 .190 1.576 .119 .489 2.043
mean
place
13.635 2.836 .527 4.807 .000 .590 1.695
mean
promotion
-3.948 3.196 -.148 -1.235 .220 .494 2.024
mean
a. Dependent Variable: EMPLOYEE GROWTH

b
Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate Durbin-Watson
a
1 .634 .402 .372 10.57683 2.008

a. Predictors: (Constant), promotion mean, place mean, price mean, product mean
b. Dependent Variable: PROFIT GROWTH

a
ANOVA

Sum of
Model Squares df Mean Square F Sig.
b
1 Regression 5943.281 4 1485.820 13.282 .000

Residual 8837.672 79 111.869

Total 14780.952 83

a. Dependent Variable: PROFIT GROWTH

b. Predictors: (Constant), promotion mean, place mean, price mean, product mean
 a
Coefficients

Unstandardized Standardized Collinearity

Coefficients Coefficients Statistics

Model B Std. Error Beta t Sig. Tolerance VIF

1 (Constant) 63.621 9.810 6.485 .000

product mean -4.942 4.044 -.152 -1.222 .225 .488 2.049

price mean 2.337 3.672 .079 .636 .526 .489 2.043

place mean 16.556 2.832 .662 5.846 .000 .590 1.695

promotion mean .461 3.191 .018 .145 .885 .494 2.024

a. Dependent Variable: PROFIT GROWTH

Assumptions for Place
Assumptions for Product
Assumptions for Price
Assumptions for Promotion