Professional Documents
Culture Documents
In this project, we choose Axiata as our company and U-verse as the new telecommunication
service which we are going to design a marketing plan for. The marketing plan is designed
using Phillip Kottlers Method.
The assignment is goes into detail, about the company, the new products and the marketing
strategies to be implemented. This strategies are based on our proper understanding of the
marketing mix, cognitive marketing implementation and financial.
A swot analysis is of the company, shows their weakness and threats as well as revealing the
opportunities and strengths the company need to take advantage of. The ending section of the
project shows how these strategies would be carried out through our controls and
implementation.
The project was based on essential researches, which we combined to design the informal
marketing plan for the above mentioned company. It is a challenge we couldnt afford to lose
that is why we had to go deeper into understanding what marketing plan is all about and how
they are implemented.
The conclusion is a summary of the whole project and references shows guides for further
reading. The whole project is general designed to teach new user about marketing plan and
how this strategies are implemented, that is own main reason for using clear and simple
language to aid easy understanding. Important issues are either highlighted or bolded
throughout the whole project to aid faster display of key information.
COMPANYPROFILE
Type
Public
Industry
Telecommunications
Founded
12 June 1992
Headquarters
Key people
Products
Revenue
Net income
Number of
employees
25,000 (groupwide)
Subsidiaries
PT XL Axiata Tbk
Robi Axiata Limited
Smart Axiata Company Limited
Tune Talk Sdn Bhd
"Advancing Asia (Menerajui Asia)"
Slogan
1.1
INTRODUCTION
Axiata Group Berhad (Axiata) is one of the largest Asian telecommunications
groups in Asia with over 260 million customers. Axiatas vision is to be a regional
champion by 2015 by piecing together the best throughout the region in connectivity,
technology and talent, uniting them towards a single goal: Advancing Asia.
Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri
Lanka, Bangladesh and Cambodia with significant strategic stakes in India and
Singapore. In addition, the Malaysian grown holding company has a stake in nonmobile telecommunications operations in Pakistan.
The Groups mobile subsidiaries and associates operate under the brand name
Celcom in Malaysia, XL in Indonesia, Dialog in Sri Lanka, Robi in
Bangladesh, Smart in Cambodia, Idea in India and M1 in Singapore. Added to
this, the Group has established a communications infrastructure solutions and services
company called edotco.
The Group revenue for 2014 was RM18.7 billion (USD5.7 billion). Its market
capitalisation stood at over RM60.5 billion (USD18.5 billion) at the end of 2014.
The Group provides employment to over 25,000 people across Asia.
Axiata was awarded the Frost & Sullivan Asia Pacific ICT Award for Best
Telecom Group for six consecutive years in 2009, 2010, 2011, 2012, 2013 and 2014
and the Telecom Asia Best Regional Mobile Group 2010 and 2011 for its operations
in multiple Asian markets. In 2011, Axiata was the only Malaysian company to make
the Forbes Asia Fab 50 List
Month 1
Month 2
Month 3
2.0
To build win-win relationship with all our business partners, based on mutual trust,
respect and support
To work to bridge the digital divide, to build our nation and to enhance its standing
abroad.
Together with all our stakeholders, we will make Axiata Malaysia a premium brand: a brand
that symbolizes the spirit of freedom, aspiration, confidence, dynamism, timelessness,
universality and globalism. (Axiata Official Website, 2014)
on 25 April 2008. He is currently the president and group chief executive officer of Axiata
group berhad (formerly known as Tm International Berhad). (Axiata Official Website, 2014)
2.1
MARKET SUMMARY
Technology is improve rapidly and causes the 3G phone become more common to
customers.
3G phone is become more cheaper with the rapid change of technology.
2.2
SWOT ANALYSIS
2.2.1 STRENGTH
A long-term relationship with the primary suppliers results in shared knowledge of the
products requirements, adherence to quality standards, and a common vision
throughout the development and production process.
The high percentage of sales, suggest a satisfied customer base as well as positive
word of mouth, which generates new business per year.
Being the oldest telecommunications service provider in Malaysia, has given Axiata a
competitive edge and increased customers trust and loyalty to the brand.
2.2.2 WEAKNESS
Axiatas current facilities are crowded; there is little room for new employers or
equipments to fit into the company.
Axiata is reactive rather than assertive in its marketing efforts because of its heavy
reliance on customers reaction for product satisfaction.
While the staff size improves growth and communication, it also impedes
commitment on the side of the staff and lack of specialization.
Both the product line and the client base lack diversification. Dependence on current
recorder rates could bleed complacency, invite competition, or create false sense of
customer satisfaction. Development of a product that would provide better quality
service by the competitors would probably put Axiata out of business.
The poor niche market could be a competitive advantage for their competitors to gain
an advantage over them, and this could lead to a dramatic decrease in customers
loyalty.
High cost of products and service could alter the buying power of the consumers,
especially in this time of global recession.
2.2.3 OPPORTUNITIES
More than 20 million ringgit is spent on specialty advertisement which is the potential
for Axiatas growth.
Axiata is currently doing nationwide promotion using power icons like including
international footballers Steven Garrard, Michael Owen, Ryan Gigs and Robert Pires
and Chinese entertainers JJ Lin and Wang Lee Hom as well as local actress Maya
Karim.
Axiata currently has the widest 3G and HSDPA coverage in Malaysia since its launch
on 17th May, 2005.
Axiata provides many products and services that suites different customer needs,
ranging from economic, business, and family and leisure satisfaction.
The director and manager of the company, Dato Sri Jamaludin Ibrahim is currently
working with the company for the seventh year, this is different when compared with
other telecommunication service providing companies and with his full experience, he
has helped guide Axiata to a resting edge with quality management.
As more and more Malaysians look for ways to keep in touch with each other,
Axiatas popularity and quality services has helped draw more customers to the
company through customer relationship and brand loyalty.
2.2.4 THREATS
Specialty advertisement through promotional items relies on gadgetry and ideas that
are new and different. As a result, product life cycle may be quite short.
High cost of products and service would be a competitive advantage to their rivals
over customers, through implementing low cost quality products and services.
There are no barriers of entry and this could be a great threat because it could make
new fast productive companies to come into the market and try to gain a stand of their
own.
Fast technological advancements would result in faster product life cycle, increase the
need for improvement and might result in low sale of less quality products, or
products with less technological features.
The acceptance of technological advances and the desire to control time creates a
potential need for technologically rich products with varieties of features.
Axiata must modify its management hierarchy, empowering its employees through a
more decentralized marketing organization.
Axiata should consider diversifying its product line to satisfy new market niche, as
well as developing products that are seasonal to boost sale.
Axiata should consider surveying its current customers and its customers client to
better understand their needs and changing dreams.
Have gone into partnership with Vodafone, Axiata should consider establishments in
its neighbouring countries, especially the lower technologically advanced ones like
Vietnam, Laos, Myanmar etc.
2.3
COMPETITION ANALYSIS
Competitors: the major competitors are Maxis, Digi respectively according to their level of
threat.
MAXIS
Maxis are the market leader in this industry as they are the first mobile communication
provider in Malaysia. The customers are very loyal to Maxis. Basically, Maxis provides the
same products and services with the other competitors, but Maxis are doing well on their
marketing, this makes their sales are high and gain big market share. In broadband
connection, Axiata and DiGi are doing better than Maxis.
DIGI
DiGi claims that they are the leading mobile communication company. However, they are
only ranked the 3rd in market share. They provide a comprehensive range of affordable,
convenient, and easy to use services.
Premium branding and customer care continue to attract and retain subscribers. This is
further supported by long-term iPhone plans.
Much wider 3G/3.5G coverage than Digi and similar coverage as Axiata
Largest postpaid subscriber base of c. 43% is critical to future market trend towards
more postpaid subscribers.
Managements track record for its transparency and ability to deliver performance.
Good loyalty programmed with, perhaps the best family plan in Malaysia in our view.
The deal gives Maxis an opportunity to move into a rapidly growing market place,
equipped with full management control and board representation.
Gaining control of Aircel will give Maxis access (i) to the number one mobile
operator in Tamil Nadu and the city of Chennai, (ii) new operations in five more
circles and (iii) a further potential five circles.
Maxis do not offer triple play of mobile, broadband, and pay TV.
Growing enterprise business may entail more capex and Maxis can only selectively
grow its enterprise business.
Earnings dilutive expected for the first two years, with break-even estimated in year
three and profitable only in year four or five onwards.
Network capacity expansion to consume sizeable amount of profit at the initial stages
with high financing costs
3.8
Being the oldest and most experienced amongst the three, Axiata has many competitive
advantages against its major rivals Maxis and Digi. They currently posses the highest trend in
the market share, giving the highest coverage, many products features and having the highest
customer size in the Malaysian market. They are applying many future strategies to maintain
their position as the market leader in the Malaysian market like niche marketing, business
package development, intercontinental and international service expansion.
2.4
Axiata provides varieties of products and service to their customer, which is why they are
presently the best in Malaysia. But we intent to launch a new product (U-verse), that lets
customers, pay their bills through phone, book online flight tickets and hotel reservations.
U-verse: this is a popular product offered by AT&T in the United States. The products allow
customers to pay their bill. Following our counter parts, in developing a cutting edge
technology, we enhanced the U-verse service into paying bills, booking flight tickets and
making hotel reservation. A service designed for both travelers and the market in general.
This would be the first of its kind in South East Asia, and it would go long to way to convince
Axiata customers about the companys commitments towards providing the best service to
keep them delighted and in developing the country into a globally connected nation with the
best telecommunications service.
2.5
DISTRIBUTION
With over five thousand trade channels in Malaysia, the distribution of the service wont be
difficult. The service (U-verse) is designed in a way that it can be automatically activated
once a customer purchases a SIM CARD, by clicking *128#, then U-verse and following the
instructions, or by going to any Axiata dealer near him for activation. The distribution
channel is designed in a way that it is so efficient for customers and increases potential sales
for the company. Axiata dealers can be found in over 90 per cent of Shopping Malls,
Colleges, Universities, Recreation Centres and Mega Stores across Malaysia, making it easy
for the customers to reach.
3.0
MARKETING MIX
3.1 OBJECTIVES
Axiata has been in the telecommunication business with the primary objective to keep people
connected and helping companies to market their goods and services as well as keeping them
close to their customers. Besides formulating a market-orientated and customer-focused
mission statement, Axiata has established and objective to achieve cumulative growth in the
next five years with a 50 per cent net profit for the newly launched U-verse.
To accomplish these objectives, Axiata has developed a benchmark for progress in three
different categories. Firstly, through using a market penetration pricing, the service will be
brought to the customers at affordable and reasonable prices. Secondly, by gaining a better
understanding of the need and satisfaction of the current customers, they will improve the
service to encourage re-orders. Finally, the service is to be able to utilize its current
technology and knowledge base, and research as well would be conduct on similar products
with an eye towards developing the services to a specialty advertising product.(Williams &
Ferrell 1997, p. 364)
3.3
POSITIONING
Axiata has since its establishment, positioned itself as the number one Malaysian network in
the Malaysia market. This they have done by providing efficient network connectivity and
linking of individuals together. Today Axiata stands in the heart of every Malaysia as the
telecommunication service provider that offers a more for more customer satisfaction, by
providing the customers with products to keep them satisfied above their competitors and
charging them more money for the quality they yield in the products. It has made our work so
easy, that by launching this service as the first in south East Asia, it will go a long way
towards convincing the present customers that Axiata is truly the number one Malaysian
network, persuading the non-customers both in Malaysia, and the neighbouring countries
where Axiata is currently expanding to join the leading network. Physiologically, Axiata has
influenced the status of their customers, because they are considered to be financial capable
by using Axiata services.
3.4 STRATEGIES
By understanding the customers needs, Axiata has used its strength to fill the needs of the
customers more than any other telecommunications service provider in Malaysia presently.
This has given them a competitive advantage, boosted enthusiastic sale and increased more
customer loyalties.
Through careful and in-dept research in the characteristics if the Malaysian market, Axiata
has created distinctive target markets for its products through creating a strategic marketing
mix that just not makes the product available, but also affordable, convenient and unique at a
consistent and flexible level. This is geared towards improving new and existing products as
well as profit to the company.
3.5
MARKETING MIX
3.5.1 PRODUCT
Axiata has developed an intangible attributes to the new products, to consistently meet or
exceed customers expectation, enhance speedy response to customers demand and attribute
anticipate new customer needs. This will be achieved through investing in research for
consumer buying behaviour and product development. (Axiata Official Website, 2009)
Product is anything that can be offered to a market for attention, acquisition, use or
consumption and that might satisfy a want or need. The product classification can be divide
into three categories which are consumer product, industrial product and other market
offering. Axiata broadband is categorized under the unsought goods. Axiata broadband is a
new innovation and does not often thought about by the consumer. Therefore, Axiata need to
do a lot of marketing and advertising in order to attract more customers to buy their product
and introduce their broadband to the market.
Axiata put effort in the individual product and services decisions which is the product
attributes, branding, packaging, labeling and product support services. First, is the product
attributes. Axiata has maintained their broadband quality by provide features such as widest
coverage in Malaysia and also fastest speed in surfing internet to their customer. Axiata has
launched several packages to customers which are Axiata Broadband Lite, Axiata Broadband
Basic and Axiata Broadband Advance. Besides, Axiata recently also introduced their limited
edition USB modem which is the Fortune Mask to their customer. Customer can choose
their own modem design according to their zodiac sign.
Next, is the branding. Axiata has registered their brand name and also the broadband logo.
The purpose of doing this is to prevent others from imitating their products and also provide
protection for unique product features. Besides, they can also prevent their customer from
buying imitate and faulty product. The quality of the products can be maintained so the
customers can have the same features and quality each time they buy the product.
Moreover, Axiata also put effort in designing their broadbands packaging. They have design
their broadband in small size, portable and light so that the customer can easily bring the
broadband to anywhere they go. Furthermore, the cover of the Axiata broadband are also
environmental friendly and recyclable. While, in the labeling part, Axiata broadbands cover
has clearly stated about the broadband serial number, manufacture place, logo and also others
information that related to the broadband on the cover of the broadband. This makes the
customer have the peace of mind to use their product safely.
In the product support services part, Axiata broadband has provided some extra services to
delight their customer. Examples, Axiata broadband provide services such as Axiatas
Money-back Guarantee to their customer. Customer may take back their money within 7
days after they have subscribed the broadband due to dissatisfaction toward their services or
poor coverage in their living area.
3.5.2 PRICE
With high availability of internets across the Malaysian globes, a price penetration strategy is
advisable to enhance customers usage, and introducing the service. On the other hand, they
would use that opportunity to increase price on improved products. Axiata should also be
sensitive to the price elasticity of its product and overall consumer demand. (Axiata Official
Website, 2009)
Axiata is in the oligopolistic competition market. This is because there are only a few
companies involved in the mobile telecommunication industry which is Maxis, Digi and Umobile. Due to there is an intense competition among the companies, customers are sensitive
to the companys product price. Customer tends to purchase product from company which
offer lower price since all the company within the mobile telecommunication industry
offering the same product function.
The pricing strategy used by Axiata broadband is the market penetration strategies.
Broadband with low price and good quality are offered by Axiata to the market. Few years
ago, Axiata launched its new Broadband packages that start from as low as RM48 per month,
as compared with RM68 per month previously. During the promotional period, all new
signups for Axiata Broadband packages will be offered a RM10 discount, bringing the price
even lower to RM38, for the first three months. The Entry Package also comes with free USB
modem, offering volume of 1GB at 384Kbps. By using this strategy, Axiata can attract a large
number of buyers quickly and win a large market share.
While in the pricing mix strategy, Axiata has adapted product line pricing strategies. Axiata
set their different broadband packages in different price. For example, Axiata Broadband Lite
package is RM48 per month, Axiata Broadband Basic package is RM 68 month and the
Axiata Broadband Advance is RM98 per month. Each broadband packages also pack with
different features and suitable for different categories of customer. Examples, Axiata
Broadband Lite suitable for those light users. While, Axiata Broadband Basic suitable for
normal usage user and the Axiata Broadband Advance is suitable for those heavy users.
3.5.3 PROMOTION
Through educating consumers on product improvement and creating awareness to nonconsumers, advertisement and sales promotion would be used to introduce the new service to
the Malaysian market. (Axiata Official Website, 2009)
3.5.4 DISTRIBUTION
Through gaining retailers cooperation and distribution channels across Malaysia, it would be
easy for the service to reach the targe market. The SIM PACK is light weight and would be
easy to transport huge number of the product with the service in it across Malaysian market.
(Axiata Official Website, 2009)
3.6
MARKET RESEARCH
4.0
FINANCIAL STRATEGY
4.1
The total budget for launching the new product, research, and customers survey will
be equal to 80 percent of the annual promotional budget for the product introduction
year.
Each team is responsible for reporting all financial expenditures, including personnel
salaries and direct expenses, for their segment of the project. A standardized reporting
form will be developed and provided by the marketing director.
The marketing director is responsible for adherence to the project budget and will
report overages to the company president on a weekly basis. The marketing director
also is responsible for any redirection of budget dollars, as required for each project of
the business analysis team.
The new product offering would be evaluated on quarterly bases to determine its
profitability. Product development expenses will be distributed over a two year
period, and will be compared with gross income generated during the same time
period.
5.0
CONTROLS STRATEGY
5.1
IMPLEMENTATION SCHEDULE
Activities, responsibilities and time for completion: all implementation are designed to create
customer awareness and boost sales and are to begin along with the New Year on January 1,
2014.
On January 1, create sales manager position along with marketing and advertising
director. The marketing director will serve as a project leader for a new business
analysis team, while the advertising director will take full charge of advertisement
By January 18, the business analysis team will review all recommendations from the
project managers.
By February 2, develop a plan for one year product offering along with potential
customer. The business analysis team is responsible.
By February 15, analyses and report the result of all customer satisfaction survey and
evaluate new product offering. The market director is responsible.
Re-establish the objectives of the business analysis team for the New Year. The
directors are responsible.
5.2
MARKET ORGANIZATION
Because the new product requires extensive commercialisation to match customers need, it is
necessary to organize the marketing function by customer groups. This will give Axiata the
opportunity to focus its effort on the need and specifications of each target market. Axiata
marketing efforts will be organized around the following marketing groups:
1] manufacturing group,
2] business-to-business group,
3] customer satisfaction group, and
4] customer relationship group. It group will be headed by a sales manager who will report to
the marketing director.
Each group will have full decision making authority and responsible for marketing the new
product to the target customers within the segment. These changes in marketing organization,
enables Axiata to be more creative and flexible in meeting customers need, reduce highly
centralized management hierarchy and finally, give better opportunities to monitor the
activities of competitors.
6.1
CONCLUSION
For any given organization to market any new product, marketing planning is strategy used to
coordinate a well planned product testing and launching. A well designed marketing planning
ends up bring back positive results for companies.
This project covered the main point as well as other minor strategies and implementations
involved in building a cognitive marketing plan. We designed the above marketing plan based
on intensive research and broader understanding marketing in general.
As shown above, the new product U-verse is the first of its kind in the whole of South East
Asia. As pioneers, the chances of gaining higher market shares and being the market leaders
is what we looked into, a well planned strategy has be designed to make that happen.
These strategies if implement as stated would probably bring out a well balanced positive
result. The by understanding the environmental factors and analysis the strength, weakness,
opportunities and threats of Axiata, we had the better opportunity to look into the situation as
if we were their new product managers. This gave us the chances to build a better marketing
plan that if well implemented, would bring in a positive result.
6.1
6.2
6.3
To conclude, Axiata is one of the market leaders in the industry. Currently Axiata provides
many products and services that suites different customer needs, ranging from economic,
business, and family and leisure satisfaction. Without information technology, Axiata will not
be able to grow and become one of the most successful companies as it is right now. In
addition, information technology does affect its daily operation as it makes the business
process more convenient, organized and save more time. Moreover, as more and more
Malaysians look for ways to keep in touch with each other, Axiatas popularity and quality
services has helped draw more customers to the company through customer relationship and
brand loyalty as well as able to compete with other industries such as Maxis, Digi and
uMobile for a better network coverage and generate more revenues in the future.
REFERENCES
Joe, T, John, B & Keith, P, 2005, managing innovation: integrating technological, market and
organizational change, 3rd Ed, john Wiley, England
Philip, K & Armstrong, G2001, principles of marketing, 9th edit, Prentice Hall, New Jersey.
William, D & Jemore, M 1999, Basic marketing; a global-management approach, McGrawhill, London
William, M & Ferrel, 2005, marketing: concept and strategies, 10th Edition, Houghton
Mifflin, New York.
Corporate Strategic Management Transport (EMM) manual provided by IGE.