Table of Contents
Executive Summary.........................................................4
Page 2
Marketing
Environment................
Organization.16-18
Marketing Activities, Implementation and Recommendations....................................................19-20 Control, Performance Standard and Conclusions........21-22 Reference .23
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Not counted in the 14 pages; Executive Summary & Product and Plan Review
Case Analysis: Marketing Strategy Analysis Telecommunication Company in Malaysia; Identify Marketing Environment, Marketing Organization, Product Mix, Pricing Mix & Strategy, Distribution Strategy, Marketing Communication Strategy, Challenges and Recommendations for the Mobile Broadband in the organization.
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Executive Summary Celcom Malaysia Bhd formed in 1988 as STM Cellular Communications with Fleet Group, currently known as Celcom Axiata Berhad (CAB). The oldest and foremost mobile telecommunications company in Malaysia, originally listed on Bursa Saham but become private after the merger with Telekom Malaysia in 2003. In 2007 with Telekom Malaysias revamp plan, renamed to AXIATA and be part of telecom consortium in South East Asia as separate business entity. Core business is providing mobile postpaid and prepaid services which offer the widest coverage area with 11.2 million users. CAB is the Malaysian partner of the Vodafone network is also achieving significant growth in other areas of business; m-commerce, enterprise solution, whole sales services, growing data segment and mobile
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broadband. Celcom is giving the customers greater control and freedom to live to the fullest; Its Your Hands. (Dato Sri Jamaludin Ibrahim, President, Celcom) Long Term Business Objective Continue to be No. 1 mobile broadband service provider in Malaysia and be Long Term Brand Driven by excelling beyond expectations of our stakeholders and customers. Challenge Faced Stability and Speed; Convincing the public of the validity, quality services claim and prove to the loyal customers with the continuous use of the service, the connection will still be stable and unaffected by long usage or even the bad weather. Increasing the profit and maintaining the competitive advantage in Malaysia Market is another challenge. Situational Analysis Malaysia broadband providers categorized to; Fixed Broadband are used at home, office and runs on cable (Telekom Malaysia; Streamyx and Unifi, Maxis) and Mobile Broadband are wireless internet which flexible for users to access internet from anywhere (Celcom, Maxis, Digi, P1 and YTL). Mobile broadband Celcom Broadband that runs on 3G and HSDPA network was launched in 2007 with affordable plans. This is part of Celcoms aggressive strategy to compete in Evolution of Mobile Broadband by further expanding the customer base which has attracted 876,000 subscribers, be the biggest
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share of the mobile broadband services in Malaysia and has the most extensive coverage across the nation. Celcom broadband packages for consumer and business are based on volume and speed where all new signups will be offered at lower price due to Governments call for more affordable packages to encourage higher broadband penetration, especially in rural areas. As Malaysias No.1 Mobile Broadband Provided and have being awarded the prestigious Frost & Sullivans Mobile Broadband Provider for three years, motivated Celcom to provide continuously improving quality of service, a dedicated customer service, performing higher than stakeholders
expectation as to meet broadband traffic growth and enhance customer experience. Better network quality by upgrading the existing sites and enhancing its network coverage where 900 additional new sites nationwide will be installed by end of the year and to introduce Wideband Code Division Multiple Access (WCDMA) 900 in rural areas to provide extended 3G service. Capacity will be increase by four fold by end of the year via upgrading its existing sites to High Speed Packet Access Plus (HSPA+) or High Speed Uplink Packet Access (HSUPA), transferring its sites to Internet Protocolenabled (IP-enabled) base stations and fiberising all key backhaul nodes. Celcom has also commissioned new IP transit in Kuching to cater for increasing broadband demand in Sabah and Sarawak. Product and Plan Review
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Fee
Vol Net Safe Musicube ume 1.5G Free 1 Free 1 month B 4GB 6GB 10G B month Free month Free Free 1 Free months Free months Free months 3 12 12
Instanet; No frills, no hassle, ready to go! Instanet Plans Daily; when you want Weekly; several times a week Monthly; frequently surf and Usage 24 hours 7 days Speed Up Volum e to 500 Fee RM1 5 RM1 8 RM5 0
download 30 days
Use Broadband Plan Pay Per use; casual browse Fee RM0.10 Speed 10kb Volume Unlimite
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Up 512kbps Up
Weekly; connected a few times a RM18 weekly week mLite; option for Internet on-the- RM28 go mBasic; Internet needs mAdvanced; more Volume mPro; as much as needed month RM38 month RM58 month RM88 month
Volume Purchase; Heavy usage at lightweight rates Volume 1GB 5GB RM15 RM50 Fee
The following are details of Business Celcom Broadband Plans; Broadband; Hua Wei E1 73 and ZTE MF190 Mobile Broadband Bundle; HP Mini Net book 110, HP Notebook G42 and MiFi Router
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RM 50*
RM 68
RM 68 *
RM 90
Up to Up to Up to 700 512 512 Up to 1.5 Mbps kbps kbps kbps 500 MB 1 GB 1.5 GB 12 months RM 100 24 months FREE 3 GB 12 months RM 88 24 months FREE 4 GB 12 months RM 88 24 months FREE
and wants to prove their capability in telecommunications area network. In the Celcom webpage, customer service on line is provided to deal and to give solutions on any matter arises on the service or products. By receiving ideas, suggestion and opinions can influence the marketing decision in Celcom Axiata Berhad since Customer is always Right. We will prioritize enhancing our operational efficiencies and improving our value retention and growth, with a greater emphasis on customer satisfaction and fulfillment. (Datuk Seri Shazalli Ramly, CEO, Celcom Axiata Berhad)
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various
attractive
packages,
better
product,
internet
speed,
affordable and good customer service to stay competitive but Celcom Broadband remain as the market leader with 124% growth . Higher demand received for broadband due price points of smart phones and net books leads the Telco Company to market similar products and services but with different plan or packages. By offering low rates and such new features, Celcom believe that this will attract the Generation Y and able to gain more market share. Competitors as a group of firms producing products that are close substitutes for each others. (Porters 1980)
Employees; Celcom Axiata Berhad employed employees to be a part
of their family and represents the company with good communication skills, work ethic and behavioral. Plays the important role to influence the customer to buy the product, and be good listener with problems faced by the customer such as the usage of broadband. Quality employees with good commitments will give the big positive impact for the organization and this is proven when Celcom is being awarded Best Market Performance Award! The people employed by a service provider are the front-line interface between the customer and service. (Marketing Essential Principles, New Realities)
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Macro Environment
Social Cultural; 5 key trends that shape Malaysian; Online activities
users (aged 15-64), activities such as instant messaging, downloading and chat rooms domain by youth (aged 20-24). In addition women are the biggest online shoppers while men focus on downloading. Malaysian youth (aged 8-24) enjoy games, listening online music and social networking sites. (GMID, 2009) Opportunities for Celcom to make up the package of their product for variable users with variable ways and budget; Daily, Weekly, Monthly and many more plans.
Economic; economic slowdown will give huge impact to business,
hence joint venture with Axiata to operate in other countries is a good opportunity to recognize Celcom, stabilize the business and be above nearest treat, Maxis. This solution proven when Celcom Axiata
enjoyed one of its greatest years historically having grown revenues and subscribers by close to 13 percent and 16 percent year-on-year and higher than industry average.
Technological; increase of diffusion of technology innovation even
with slow economic in Malaysia reported by the Malaysian Information Technology 3rd Quarter 2008; annual growth rate should grow of 9% over the 2007-2012 periods. In addition based on the 2008 budget it shows that 50% of the spending will be on the campaign broadband penetration by the year 2010 (Business Monitor International, 2008).
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Malaysian Broadband users in 2003 are 110,400 subscribers but in 2008 the numbers had increase to 1.4 million users. The
governments High Speed Broadband initiative will help boost demand for internet services when it is completed in 2012 (Business Monitor International, 2008).
Political/Legal; Related to broadband service, online shopping is one
of the many values that are provided by the internet. Euro-monitor International says, Malaysia is still in its infancy regarding online shopping but likely to change due to lower broadband prices and with government's commitment to 50% broadband penetration by 2010 (GMID, 2009). Law of consumer protection is also another issue due to online fraud cases; 66 people were cheated out of RM73, 445.10 (US$20,547) during purchasing the cosmetics from a website named Big Pussycat (GMID, 2009). Immature cyber law regarding consumer protection need
improvement as it may affect the way broadband is used in Malaysia. Porters 5 Forces Model
Rivalry among Present Competitors; Celcom vs. Maxis, Offers
better, products, packages, and internet speed and customer services. Products are differentiated but do not promise customers will not switch to other brands even if with lower switching cost.
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needed in to have the appropriate technology and limited suppliers that support broadband in Malaysia.
Bargaining Power of Buyers; More buyers leads to high bargaining
power and influence the sellers in setting up prices. Technology and coverage area will retain the current and attract potential customers.
Bargaining Power of Suppliers; Limited suppliers to provide
materials, software and equipments will leads to higher switching cost and challenging.
Threat from Substitute Products; Customers may switch to
wireless internet service; Streamyx or go to cafes; Starbucks that has Wi-Fi for internet connection. SWOT Analysis
Strength; Market leader in mobile broadband provider in Malaysia
with various type of plans and affordable without contract offers customer to choose without worrying about budget. Easy to launch and recognized as customers able to use the internet everywhere and anywhere since coverage most of the area in Malaysia, package plan is value for money and gain customer satisfaction, confident and loyalty. Connections speed consistent with free modem, friendly customer service with good communication and having quality employees with a very little turnover. Good and long relationship
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with major suppliers to the results of common knowledge about the product with the requirements, compliance with quality standards and a common vision during the whole process of development and production.
Weakness; Offer different segments and promotions with higher
cost and known as setting higher price and rate compared to the other competitors, hence customers may start thinking the lower rate may not able to give good services plus with the issue of The Pricy Add-ons Service and Out of Quota.
Opportunities; Widest with most extensive coverage nationwide,
compared to other Telco and with expansion of users. Increase of preference for mobility, broadband, m-commerce and e-business able to do things such as paying bills online. Trend shows increasing preference for full mobility, doing things on the go and online connectivity (GMID, 2009). Malaysia providing education, medical, tourism and public service lead in gaining more market share by targeting Generation Y and Millennial, students. Government policy protects business, low tax and also known to be creative and motivate to have more new ideas for consumers.
Threats; Rival to Maxis and Digi is offering similar product with
different price and launch as their latest products. Hence, Celcom needs to develop, innovating new products or plan to retain the
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customer loyalty. Preference in wired broadband and free wireless services because wireless broadband still not very advanced. Many people to use free facilities wired internet in office and home. Free Wi-Fi is also available in many restaurants; Mc D, Starbucks, Old Town. Market Segmentation, Strategy and Positioning Segmentation is a process of separating customers into groups with different characteristics, behavior and needs. (Chin, 2002) Celcom Broadband has attractions from the aspects of the rate and its promotions made by Celcom especially with the affordable package for students by promoting at colleges, universities in Malaysia, family and business. The target customers and segments can be identifying thru age, income, education and occupation. At the same time, lifestyle and personality of consumers will give different demand where they may prefer higher speed due to hectic life. Celcom will continue to accelerate its mobile broadband initiatives and focus on advancing its data strategy by enhancing its data and Value-Added services (VAS). As a result, Celcom signs up approximately 20,000 broadband users in Central region every month. Broadband is widely used by consumers with its advantage of portable, convenient and suitable for travelling as the internet is always in their pocket. Dividing the consumer and business market based on the segmentation will help Celcom to target potential customers This will
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benefit customers, suppliers, agents, promoters and Celcom as it boost the market, better services, profits and sales for all. Celcom Axiata Berhad is using Differentiated Marketing Strategy or Multi Segment Marketing by providing multi products but using different and unique strategies which creates more sales but costly. Celcom understand their target customers (age, income, working, student, place and lifestyle) by offering many plans for customers to choose according to their needs, as example for broadband plan; lite, basic, advance and pro. Promotions done in everywhere and anywhere; malls, college, universities, schools, supermarket and many more places even just at the right of the road corner. In addition, best rate being offered and implement it hardly as to achieve higher sales and to get the best place in every segments. The variety segmentations have different promotions, advertising, not
applicable to same place or market; business and consumer market. For example it is not suitable to promote Broadband Pro Plan to business people or students which is more suitable for family with heavy users and downloads. This market strategy costly due to higher manpower, places, promotions and affects the cost of rate. Normally celcom will offer lower rate than normal for certain period to gain more subscribers. Celcom Broadband is one of the networks you could rely on for its wide coverage with affordable plan and Malaysias No.1 Mobile Provider for the since last 2008.
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Product Mix, Pricing Mix and Distribution Strategy Celcom developed an intangible attributes to the new products,
continuously fulfills or beyond customers expectation, fast response to customers demand and attribute anticipate new customer needs. One of the variety way taken; Celcom Broadband has increased Speed and data Volume for Lite Plan (384 to 700 kbps, 1GB to 1,5GB @ RM48) and Basic Plan (512 kbps to 1.5MBps, 3GB to 4GB @ RM68) but with same fee. In addition, all Celcom Broadband users can enjoy MUSICUBE for free to get latest songs from both local and international artistes and able to download an unlimited number of songs. This will attract the youngsters or customers that love music. Celcom Broadband is now secure with Net Safe; enhanced Internet Security Suite that keeps all Internet threats at bay. It helps you to feel more secure every time online by having the Antivirus, Firewall, Browsing Protection, Anti-Spyware & Anti-Phishing, Anti-Spam, and Parental Control with Real-Time Protection that will alert you automatically whenever it detects an online threat. The price plan is very affordable as low as RM48 to RM138 monthly, RM250 unlimited, RM0.10/10kb per use, daily at RM5 and weekly at RM18 which leave more choices to customer the subscribe the plan base on their needs. Celcom may set lower price and rate similar to Digi Broadband range from RM38 to RM158. Celcom Broadband is not just leading in mobile broadband consumer front but also the trade front as a major role moving forward by putting full effort,
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focus and energy behind building a strong distribution infrastructure for mobile broadband. 300 IT resellers had been appointed since 2006 and forecasting that mobile broadband would enter the competition foray. The investment paid off as now since they have a solid distribution network to support their rapidly growing mobile broadband business. Special Price and commissions are given to them and create awareness by supporting them in print ad like posters and brochures. Marketing Communication Strategy Inform people on our new products, services and changing our images by rebranding new image and focus on products differentiation and
competitive advantages. The best media and agency will help in promoting our products as to reach our target, sales promotion and public relation. Nationwide coverage using TV, Radio, Newspapers, Magazines and Internet will attract market attention as to inform and persuade the public aware and support the products. Fliers, banners and posters with free samples for limited quantity and to use spoke person or group reference to promote and benefit the market for Celcom Broadband and bring more followers. Event marketing can display on our products, road shows at the university, colleges, shopping mall and kiosk as to share more information with the public. This will keep people connected to each other, helping companies sell goods and services as well as keeping them close to their customers.
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Formulation pro-market, customer-oriented and U-verse has developed a pattern of progress; in penetration pricing, better understanding of existing customers needs and the service is to be able to use its existing technology and knowledge. Here is the example off marketing strategy by Celcom Bhd, In 2009 Broadband Prepaid was launched; mobile broadband service for cell phones to tourists and business travelers in the country. The programme involves decking out 400 limousines operating at KLIA by providing the Celcom Broadband stickers and lighted signs on the vehicle roofs. Brochures and pamphlets with details on the products were place in the Limo and the drivers are capable to answer queries from the passengers. The drivers would have Celcom Broadband Prepaid starter packs to sell to the interested passengers especially travelers that need to stay connected on line. This broaden the Celcom Broadband users and with the RM1ml marketing campaign, expect to sells 400 prepaid packs in a day. This beneficial travelers that need to use the broadband services for social networkings sites; twitter and face book. Market Research It is important as to serve the customer better by analyzing and identifying the needs and behavior of the target market. Survey can be distributed to get feedback from the customers on Celcom vs. Competitors products which will provide the information on satisfaction level from customers by
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sharing their view, opinions and determine the success of new products launched. Marketing Team in Celcom should have brainstorming session for post mortem and to discuss the next step and innovative steps to be taken in order to achieve the target for current and future products. Market Organization Configuration-quality team of directors and staffs, Celcom has transited from the first generation to second-generation market leaders and take communication seriously. Hence, products and services geared to keep the voices of business; products and services business prepaid plan, the plan of additional businesses, post-paid plan and satellite companies. Normally new product requires extensive commercialization to match customers need; hence the marketing function will be organized by customer groups. This is session for Celcom to understand and to focus its effort on the need and specifications of each target market. The following marketing groups are those who involved with the brainstorming session; 1] manufacturing group, 2] business-to-business group, 3] customer satisfaction group and 4] customer relationship group. Sales Manager will be leading each group and have the full authority in decision making, responsible for marketing of the new product to the target customers within the segment and will be report to the Marketing Director. The restructure in the organization chart leads Celcom will be more creative and flexible in fulfilling the customers' need,
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reduce
highly
centralized
management
hierarchy
and
give
better
the dealers on the benefits which will be held in public area during weekend; Sg Wang, Bukit Bintang, Sunway Pyramid, Pavilion, Berjaya Times Square, The Curve and any other crowded places where young people hang out and family outing. It can also be done by having kiosk at universities and colleges during week days and having Celcom Broadband Mobile transport painted with logo and colors. Celcom spoke person will be responsible delivering information on the products to attract the target market youngsters, family and company for business mobile broadband.
Advertisement; In holiday season due to higher buying power and to
get the attention of the target market where with more promotions and events will encourage public to purchase the product. The advertising campaign in Television at peak time (7-9pm) will gain maximum exposure as it Is the strongest technique for television as seeing is believing (Belch et al., 2009) and Newspapers/Magazine; the printed ads will keep in cohesion with the television commercials.
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attract the working adults and fast food restaurants; Mc D and KFC to attract the youngsters or students. Reason being is that people not just having food, drinks but to enjoy the ambience where distribution of these outlets is wide and it is easy to which the product name and device will always be easily seen, building awareness, reminding the public and creating interest in Celcom Broadband service.
Student Package; Having the student plan for short term contract with
value for money is more appealing as the students live in dynamic environment and value their freedom of choice. Eligible for
consumers that present the student card or identity that must be valid for at least 6 months from the contract period.
Place;
Increase
availability
at
7-11
convenience
stores
within
coverage as currently only at 300 IT resellers. This is more suitable for Celcom Prepaid Broadband where it is cheaper and flexi for the students.
Kiosk; An additional for the retailers to build their own kiosks at
institutions as it convenience to buy top up, services for mobile broadband and even hand phone repaired. Joint venture; Promote the broadband by computer company like Acer or HP since Celcom is not just for the hand phone user but also providing the service for laptop or computer user. Best price can be
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offered especially among the youth because almost the people of them are the laptop and computer users.
Packaging; Change packaging will attract more subscribers as to gain
more sales with variety of packaging for different products, hence make more variable in shapes and colors.
Control and Performance Standard The following are standard performance and finances suggested;
Research and customer survey will be equal to 80 percent of the
salaries and direct expenses. Marketing director responsible for compliance of project budget and report to the president's excesses once a week.
New product will be evaluated on a quarterly basis to determine
profitability. Conclusions In my opinion, Celcom need to focus in pushing the target to double its customer base as growth layer for the company due to great growth and mobile broadband market is still vibrant and growing fast. Segmentation based on Celcom; consumer market and business market. The main strategies is the age segment in gaining more customers with suitable rate
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based, hence variety plan published and produced for school students, universities, colleges students and for the executives plan, everyone will get valuable benefits and profitability and satisfaction as promises. Speeding up the promotions everywhere even in Sabah and Sarawak using the same rate but initial starter pack may be higher due to shipping cost or postage cost. Currently, Celcom launched a new Broadband with a new service that enables customers to enjoy high-speed data connectivity on the go for both business and leisure. Celcom Broadband offers the customers wireless
Internet access, with the widest 3G and 3GX coverage in Malaysia which structured to provide flexibility and full mobility to users with a low entry cost and commitment. The CEO Celcom have brings many changes, introduce variable and attractive products with good understanding that the customer comes from variety of ages, family background, races, jobs and many more. I believe this will leads Celcom to grow and bring more innovations from the world of mobile technology with powerful new devices with multiple capabilities.
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References;
http://www.celcom.com.my/ http://www.celcom.com.my/broadband/support_faq.php http://news.wooeb.com/965371/a70079/celcom-axiata-berhad-strategicswot-analysis-review-new-company-profile http://en.wikipedia.org/wiki/Celcom http://www.frost.com/prod/servlet/exec-brief-movers-feature.pag? mode=open&sid=204528820 http://www.articlesbase.com/corporate-articles/celcom-malaysia-corporateand-business-analysis-4786210.html http://findarticles.com/p/articles/mi_qn6207/is_20070816/ai_n24911519/? tag=content;col1 http://www.docstoc.com/docs/59567562/Telecommunication-industries-inMalaysia
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http://www.marketingteacher.com/lesson-store/lesson-marketingenvironment.html http://www.brainmates.com.au/brainrants/what-does-a-market-drivenproduct-really-mean http://www.scribd.com/doc/41288588/celcom http://www.infogrok.com/index.php/vmchk/2169-swot/celcom-axiataberhad-swot-profile/flypage.pbv.tpl.html Jonathan Groucutt, P. Leadley, Patrick Forysth (2004), Marketing Essential Principles, New Realities. http://www.malaysianwireless.com/2008/11/celcom-uox-site/ http://www.adoimagazine.com/newhome/index.php? option=com_content&view=article&id=5486:celcom-awarded-best-marketperfomance-award&catid=1:breaking-news
http://widgetsstudy.info/celcom-malaysia-corporate-and-business-analysis/
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