1.

0 Telekom Malaysia Berhad (TM) is the largest telecommunications company in Malaysia

and the second largest in Southeast Asia. The demand for telecommunications services
currently growing rapidly. Number of clients and services has increased in both urban
and rural areas. In line with the new additional services and further expanded in line with
consumer demand both individuals and businesses. In 1946, the Jabatan of Telekom
Malaysia (JTM) which is fully funded by the government was established in line with
increase of market strengthened and better management. To develop and upgrade our
telecommunications sector, the Jabatan Telekom Malaysia was privatized in 1987, above
the name of Telekom Malaysia Berhad. It is nevertheless supervised by Ministry of
Energy, Communications and Multimedia. In line with, Telekom Malaysia Berhad has
initiated measures to grow as sustainable success in which they can increase the high
profits. Telekom Malaysia Berhad is also a big contributor in terms of development in
the telecommunications market in Malaysia progressively. The purpose of this
privatization is aimed at further improving the economic status, work efficiency and
enhance the capacity and frequency in the dynamic to face competition held either within
or outside the country. TM provides comprehensive services in terms of voice services,
information services, enterprise resource planning, internet services, mobile services,
satellite, maritime and radio, broadcast and network service expert. There are three (3)
types of business conducted in Telekom Malaysia. Small business, medium and corporate
supplying local online services and long distance calls. TM contributed to the overall
sales of the telecommunications industry as a whole. It also specializes in supplying them
and the best telecommunication infrastructure solutions to customers TM.

2.0 Marketing Mix Strategies

Marketing mix is highly important to all business sector as related to companys profit
and growth. Basically, marketing mix encounter the 4Ps which are product, price,
promotion and place (distribution channel).
Product
Careful consideration must be made in determining which products will be sold to
customers. Several thing that will be taken into concern is the design, function,
packaging, service, warranty, etc. TM is providing voice calls, internet access and
entertainment for their customer and able to deliver more value added services. The
implementation of development of HSBB has proved that TM is at the advanced in the
industry. There are several product produced by TM.

Product 1: Streamyx
Basically according to the product created by Telekom Malaysia, the market segment is
based on several traditional approach which consist buyer behavior information. For
example, Streamyx and fixed line is base of segmentation of buyer behavior variable. It
offer to capture different needs of the customers based on their financial ability.
Streamyx is mostly beneficial to residential customer with heavy internet usage.
Freedom is the key for customer to opt lower price package with speeds sufficient to their
needs while for corporate user can opt for the corporate package which can satisfy their
needs that requires zero tolerant failure of the connection. Wired internet access is much
more reliable than wireless access because of less service disruption faced. This will
ensure the satisfaction of customer while browsing the internet.

Product 2: UniFi
TMs core competences are knowledge and experiences in developing telecommunication
services. Hence, TM come out with new product named UniFi. According to the slogan
Life Made Easier, TM put UniFi as number 1 for high speed broadband (HSBB).
UniFi is a versatile service operated by TM on March 24, 2010, which provides HSBB
network. This new product covers most the needs towards the era of high definition
digital distribution of contents, consumers demand greater bandwidth capacity for their
internet connectivity. It is apparent that there is a booming demand for higher bandwidth
broadband package. UniFi has named the subscriber as a VIP residential package. The
VIP itself shows that TM put their customers need as important agenda to fulfill the
satisfaction. VIP represent:
Video : the cable TV broadcasting using fiber technology that served Hypp TV
Internet : high speed internet that used fiber technology
Phone : telephone service that comes with a wireless telephone (cordless phone)

Through this services, subscriber can download movies in DVD quality and video clips
of the music in a short period and enjoy over broadband TV (IPTV internet Protocol
Television) in which TV channels can be accessed via a private network in high definition
format with high stability. IPTV also offers interactive content through its Video-on-
Demand (VoD). In addition, for business people who love to stay closed with their
families can work from home and keep in touch with the office, clients or business
associates anywhere in the world in real time through and Internet connection, video and
high speed phone. Parallel with that, TM understand the demand in customer
requirement to do business and shopping in safety environment. Hence, subscriber can
enjoy shopping and do their e-commerce experience richer and safely without leaving
home by visiting online virtual stores. In the other hand, TM also notice that most of the
internet user love to play games and get connected around the world. Gamers subscriber
can play games online in high resolution with people from over the world. Students and
researcher also can participate in virtual classroom discussion with tutors from around the
world and create an efficient research by downloading books, journals and magazine
faster than physical meeting.

Price
Several pricing strategies can be used in order to decide the products price. Three major
segment is encounter in order to finalize the pricing. First is consumer, recognize who is
your target market. Second is cost, to encounter the profit margin and other costs that
involves such as discount given to customers and other related cost in promoting the
product. Third is competitor, get to know their product market also pricing that used to
get customers attention.
Consumer
Most customer are price sensitive. TM classified their target market through several
market segment follows their ability to purchase. Packages offer by TM have variety
choices for customer to choose based on their financial ability. The packages include
from low-high income groups, families, teenagers, professionals, youths and many more.

Cost
The introduction of GST makes many company update their price for the services, and
same goes to the leading telecommunication company, Telekom Malaysia. TM has also
began to update and revise the price of the services such as Streamyx package and UniFi
by including the GST charges. As we all know, the introduction of GST charges will
make service provider to add 6% upon their services. Hence, price for each package
offered by TM is changed. Each package offered will comes with different tools and
gear. Obviously TM has to beat the price with other competitor as TMs internet services
will attached together with the installation cost that includes wiring for cable, router and
etc. Currently, the charges to subscribe for Streamyx and UniFi are as follow:

Streamyx with Hypp TV

BB Deal 1Mbps - RM116.60
BB Deal 2Mbps - RM137.80
BB Deal 4Mbps - RM148.40
BB Deal 8Mbps - RM169.60

UniFi
VIP5 - RM157.94
VIP10 - RM210.94
VIP20 - RM263.94

It is undeniable that if we look at the list price above, the price of the package is more
costly than before. In order to maintain the interest and needs from consumer, TM gives
a discount of RM2 for every customer who opts for autopay option for their account.
Promotion
The successful of the product is depending on a good promotion strategy. Promotion is
an activity to provide or to spread about information of product to customers.
Furthermore, promotion will contribute to companys profitability and growth (to expand
their business in global market). Being in the communication industry, promotion
strategies in TM is defined by the management carefully to ensure the promotion is
effective and will give a big impact to companys revenue. Through promotion, customer
will get information about product and offers that provide by TM and will helps in
decision making to buy the product served.

Advertisement
Nowadays, people is extremely in touch with technology. TM itself is the internet
provider will use technology as medium to promote their product. Several channel that
been used by TM such as Telekom Malaysia official website at www.tm.com.my.
Through this website, customer can get information of the product and on how to
subscribe the service provided also the term and condition apply for customers. There are
special segment for each product from TM. Furthermore, TM also create Twitter account
to get in touch with the customer in order to update on the promotion and info of the
product. Twitter is the fastest way to communicate directly to customers as well as to
gather feedback from customer on the service that they received.

Sale Promotion
TM create several sale promotion in order to combine the needs and demands from
customer in a package. Some of the sale promotion made by TM recently are:

a) Jumbo Pack + VIP 10 or VIP20

with all new Hypp TV Jumbo Pack, customers will be having non-stop entertainment
and enjoy the variety of shows from Kids, Lifestyle, Knowledge/ News, Sports to
Blockbuster Movies.
 b) Autopay
Is a free service that avoid customer from late payments. Accounts paid using TM
Autopay will receive a rebate of RM2 which shall be reflected in the following
months bill.

Place (distribution channel)

Decision on distribution channel to run a business need cautious consideration as it will
affect your profitability as a whole. In order to enhance and promote their service, TM
engage with the customers and the general public to understand their needs and shape
their product and services through various activities or event nationwide.

Event 1: Roadshows at Shopping Malls

Involves more than 40 shopping malls nationwide to create awareness of broadband
packages. Hence, customer will get to know the news update on broadband promotion
and also packages of Hypp TV. This type of marketing is targeted to low-high income
groups target market as well as families with children.

Event 2: BizFest
This fest is focused on accelerating SMEs adoption of ICT. SME BizFest was held in all
states for vertical SME companies such as retails, services and manufacturing.

Outlet/Booth
TM will outsource to the 3rd party to join as personal seller for internet services that
located in most hypermarket to get attraction from customer easily.

3.0 Analysis on inappropriateness of the chosen firms existing marketing strategies

The implementation of development of HSBB has proved that TM is at the advanced in

the industry. However, TM should take note that some of the marketing strategy as
mentioned earlier might not 100% appropriate or suit with the social life. The existing
strategies are deemed inappropriate as follow:

Strategy 1: Product
TM can be classified as backbone for internet service. The HSBB network provides
fastest connection to consumer. No doubt this service is good but it will rise the black-
market as they can proceed their illegal business by downloading movie in good quality
also make a copy by record the program (especially channel that need to be purchase) and
sell it to other consumer with lower price.

Strategy 2: Price
Rumors claimed the cost of internet connection imposed by TM is a bit costly compared
to other telco companies. It is undeniable that if we refer at the list price as discussed
earlier. Compared to other telco companies, for example Maxis FTTH Home Broadband
plan has cheapest plan with RM128/month. This standard plan undercuts the package
5Mbps/60GB service by UniFi at RM149/month (price before 6% GST). Through lower
price than TM, Maxis provides 4Mbps/30GB line that perfect for households that
appreciate consistency connection and also not heave downloader users.

Strategy 3: Promotion
TM create sale promotion by combining the needs and demand from the customers
requirement. As stated above, for example Jumbo Pack + VIP10 or VIP20 will save
RM500 to customers. This promotion is generally will benefit customer but if we study
the channel given in Jumbo Pack, RM60 is not suitable compare to the original price is
RM276. TM should charge Jumbo Pack a bit higher than RM60.

Strategy 4: Place
Through Roadshows and BizFest, TM get in touch with the customers. This kind of
event will be doing according time plan. For easy information for customer, it will be
more effective if every outlet/booth located in shopping mall and hypermarket also play
 the role to create awareness of broadband package and other activities same as Roadshow
and BizFest.

4.0 Recommendation on marketing strategy

http://wheredoyouwantogoit.blogspot.com/2009/11/expensive-but-slow-broadband-
in.html
Satu strategi pemasaran yang boleh dilaksanakan telah disyorkan dengan empat
justifikasi yang sah.

One recommendation that can be improve by TM is regarding their customer experiences

journey on their product. Customer is important as TM provide service to society. Lack
of customer experience will affect TM reputation as number one service provider in
Malaysia. TM should focus on increasing their operational efficiencies, productivity and
solutions. This strategy applied from developing the products and services to
engagement with customers post-delivery, every step of the customer experience journey
are counted.

Justification 1 Connection stability

TM received huge number complains on connection stability. Customer feels they did
not get the service as what they pay to TM. For example, slow connection while sending
large file using UnifFi. Hence, TM should enhance their bandwidth so that large files a
multimedia files can be sent faster. Furthermore, optical fibre should be accelerated to all
area as soon as possible because the capability of carrying more and faster internet
access.

Justification 2 report on UniFi or Streamyx problem

Through my observation regarding failure of UniFi and Streamyx, customer mostly
disappointed with the service given by TM in solving their issue. Customer have to wait
few days for a solution. In some cases, TM already appoint contactor to do work repair
but the service given was bad from the hired contractor. TM should create awareness on
 the productivity especially in minimizing travel time by optimally the routing of
technicians and track technicians compliance to standard time on task target.

Justification 3 Channel in Hypp TV

Hypp TV get good respond from customer because its value for money. Even though
some consumer said the channel is not as what Astro have, but Hypp TV is come together
with internet connection which means customer can streaming other channel through
online. Via existing package of Hypp TV, TM should enriched the list of free channel
compare to channel that need extra payment for loyalty customer.

Justification 4 TM WiFi
Customer who already subscribe TM Broadband with a TM WiFi ID, they can just log in
anywhere, anytime on any device at over 28000 TM WiFi sites nationwide.
Unfortunately, customers mostly find difficulty to get connected while using TM WiFi.
In some cases, the configuration need to be done by connecting physically to the device
with a computer which not show the WiFi words.

5.0 Summary
http://www.scribd.com/doc/45791326/Telekom-Malaysia#scribd
http://www.scribd.com/doc/29048000/Strategic-Analysis-of-Malaysian-
Telecommunication-Industry#scribd
http://www.academia.edu/8676526/Organisation_Development_in_Telekom_Malaysia
Telekom Malaysia has been established as the telecommunication company in 1964 and
provide latest technologies in telecommunication industry of Malaysia. In 1987 it went
into privatization, forming Telekom Malaysia Berhad and has been rebranding as TM in
2005. TM as leading integrated telecommunications company in Malaysia, that am to
deliver communications, information and entertainment services and the vision is to be
Malaysias leading new generation communications provider, embracing customer needs
through innovation and execution mission strive towards customer service excellence and
operational efficiency. The achievement of TM is supported with good marketing mix.
Product TM provide voice calls, internet access and entertainment for their customer.
TM come out with product that needed by customers. Via their product, Streamyx and
UniFi, customer able to enjoy the fastest internet speed, get connected around the world
and made their life easier. Through their slogan Life Made Easier, TM enroll their
HSBB network in order to fulfill the booming demand for higher bandwidth broadband
package.

Price TM create product that value for money in order to ensure the price is reasonable
with the service provided. The price range involve the market segment from low-high
group income. The implementation of GST also give impact to TMs package price but
still TM come out with new promotion package to balance the price with the service.

Promotion TM promote its product using technology as medium to convey the

information of product to their customer. Advertisement through online is more effective
as people nowadays mostly in touch with technology and browsing the internet. They
used online method to spread the info, give update on their activities such as sale
promotion, personal sale so do program that TM take part as corporate responsibilities.

Place by setting the target market, customer can subscribe TM product through personal
seller that open booth or outlet in most hypermarket and shopping mall in Malaysia.
Besides that, TM organize various activities nationwide to get connected directly with
their customer and the general public to understand their needs and shape their products
and service accordingly through Roadshows and BizFest.