Advertising is a new and growing industry in Myanmar, (a.k.a. Burma) where billings could reach a record US$8 million this year. But the new industry is a fragile one and may yet prove a casualty of international disapproval of Burma’s military regime, the State Law and Order Restoration Council (SLORC). The main advertisers are all foreign marketing companies, many of whom are now under pressure to pull out of the country or suspend operations until the SLORC heeds international pressures for democratization and improves its human rights record.

Many US firms, including OshKosh B’Gosh, Levi Strauss, Coca-Cola, Starbucks, Amoco, Columbia Sportswear have pulled out or canceled investment plans. Pepsi is still bottled and promoted in Myanmar, but PepsiCo have sold their equity Myanmar to local partners. Heineken and Carlsberg both canceled investment plans following the June death in prison of Denmark’s honorary consul who had been convicted of illegally owning a fax machine, a major crime in Myanmar. Agency sources say that Unilever and other European firms are re-examining plans for the country.

But for the time being, outdoor hoardings carry ads for international brands from the likes of British American Tobacco, and Unilever, as well as government slogans such as "Crush all internal and external destructive elements."

"It’s a complex situation," says Iskander Poole-Johnson, general manager of Bates Myanmar, "when a western company pulls out, companies from ASEAN, Korea, or Japan are ready to take their place and invest. Withdrawal removes the opportunity either to set an example or to build relationships."

With billings approaching US$ 3 million, Bates is the largest agency in Myanmar where, until four years ago, none existed. Now there are nine, all joint ventures with local partners, others are: Myanmar Media International Co., Myanmar Lintas Macom , New Generation Co., Crab Co., A Advertising Group, Sail Advertising Co. (a McCann Erickson joint venture), and Prakit & AMP FCB (Myanmar). JWT and a roster of Japanese agencies - Dentsu, Hakuhodo, Asatsu, Chuo Senko, and Nikkeisha are also looking for partners. Euro RSCG have started limited operations and may soon open an office, according to local sources.

Media opportunities are limited so promotional know-how is at least as important in building brands in Myanmar. Over the past year, Bates has dubbed the James Bond film "Golden Eye" into Burmese in a tie up with BAT’s "555" brand, organized rock concerts for Benson & Hedges, arranged live broadcasts for the 1995 SEA Asian Games, installed "555" branded electronic flight information boards at Rangoon airport, and erected Myanmar’s first trivision outdoor billboards.

In addition to outdoor, media opportunities are limited to two government television channels broadcasting for about five hours per day during the week and eight hours at weekend. Print media, which carry few ads, are limited to three national newspapers a provincial paper in Mandalay plus about a dozen magazines that both publish regularly and carry some advertising . There is also one AM radio station in Rangoon.

Most marketing activities are centered on Rangoon, a bustling consumer market. The first A.C. Nielsen SRG Media Index survey of Myanmar shows that almost any consumer product is available in the capital, Rangoon. "You can buy and rent laser disks of the latest movies, young people drive sports cars, jewelry shops are bustling," says Jan Standaert, of Nielsen SRG Myanmar. Their survey, of 3,100 people throughout the country, was conducted in November and December 1995 and published this July.

Though average incomes in Myanmar are less than in Bangladesh, the capital Rangoon is more affluent. Half of those surveyed in Rangoon own a television set (80% are color sets), while 31% own televisions nationwide. In Rangoon, 47% of viewers watch television every day, compared with a countrywide figure of 28%. Twenty-three percent of Rangoon residents own a videocassette recorder, compared with 13% countrywide. Radio use is widespread, with 72% ownership in Rangoon and 56% countrywide. Bicycles are the main mode of personal transportation outside the city, with 56% owning a bike countrywide, compared with 26% in Rangoon. But ownership of other durables such as cars, motorcycles and telephones is very low, even in Rangoon, where only 8% own a telephone, 4% own a car and 3% a motorcycle.

As for consumer goods such as beer, tobacco and toiletries, local and Chinese brands are generally the most often used, but international brands are growing in popularity, according to the survey. Duya, a local cigarette brand, is the most popular, followed by Lucky Strike, London and State Express 555. Fuhuana, a Chinese toothpaste brand, is the most popular, followed by Unilever’s Pepsodent and Close-Up and Colgate-Palmolive Co.’s Colgate. The one area where an international brand has surged ahead is in soft drinks. Pepsi is by far the most popular soft drink. ‘Coca-Cola is negligible,’ Standaert says. Pepsi-Cola is followed by Miranda and then a large number of generic local brands in flavors such as lemon barley, he says.