Upload
azrul-azli
View
2.314
Download
3
Embed Size (px)
DESCRIPTION
Final year marketing project... MKW3444 (live die die die)
Citation preview
P1 WiMAX Marketing Planning and Implementation
Contents1.0 Introduction..............................................................................................................................3
1.1 Purpose.................................................................................................................................3
1.2 Scope of this report..............................................................................................................3
1.3 Methodology........................................................................................................................3
1.4 Limitations............................................................................................................................3
2.0 Situation Analysis.....................................................................................................................4
2.1 Business Definition and Scope..............................................................................................4
2.1.2 Mission, Visions and Objectives of Packet One Networks............................................4
2.1.3 Products and Services Definition of P1 WiMAX...........................................................4
2.2 External Environment...............................................................................................................5
2.2.1 Remote Environment Analysis......................................................................................5
2.2.1.1 Economic Environment...............................................................................................5
2.2.1.2 Political/Legal Environment.......................................................................................6
2.2.1.3 Social Cultural Environment.......................................................................................6
2.2.1.4 Technological Environment’.......................................................................................7
2.2.2 Near Environment Analysis...........................................................................................8
2.2.2.1 Porter’s 5 Forces Model..............................................................................................8
2.2.2.1.1 Rivalry among Present Competitors.........................................................................8
2.2.2.1.2 Threat of New Entrants............................................................................................9
2.2.2.1.3 Bargaining Power of Suppliers................................................................................9
2.2.2.1.4 Bargaining Power of Buyers..................................................................................10
2.2.2.1.5 Threat from Substitute Products.............................................................................10
2.2.2.2 Competitors Analysis................................................................................................11
2.2.2.3 SWOT Analysis........................................................................................................12
2.2.2.3.1 Strength..................................................................................................................13
2.2.2.3.2 Weakness...............................................................................................................13
2.2.2.3.3 Opportunity............................................................................................................14
2.2.2.3.4 Threats...................................................................................................................14
2.2.2.4.1 P1-Business Position..............................................................................................15
1
P1 WiMAX Marketing Planning and Implementation
2.2.2.4.2 Market Attractiveness....................................................................................16
2.2.2.4.3 GE Matrix Chart....................................................................................................16
2.2.2.5 Buyers Analysis........................................................................................................16
3.0 Marketing Objectives, Strategies and Marketing Mix.............................................................17
3.1 Marketing Objectives..........................................................................................................17
3.2 Financial Objectives............................................................................................................17
Marketing Strategy’s.................................................................................................................17
3.3.1 Untapped Segment & Brand awareness..........................................................................17
3.4 Product Life Cycle...............................................................................................................18
3.5 Segmentations, Targeting and Positioning..........................................................................19
5.0 P1WiMAX Marketing Tactics................................................................................................22
5.1 Promotion...........................................................................................................................22
5.1.1 Events..........................................................................................................................23
5.1.2 Service availability in F&B outlets..............................................................................24
5.1.3 Student Package..........................................................................................................25
5.2 Place...................................................................................................................................27
5.3 Advertising..........................................................................................................................27
5.3.1 Television....................................................................................................................28
5.3.2 Magazines/Newspapers...............................................................................................29
6.0Budgeting................................................................................................................................30
6.1 Newspaper Advertising....................................................................................................30
6.2 Television Advertising......................................................................................................30
6.4 Promotion of Service Availability in F&B outlets..........................................................31
6.5 Student Package Promotion.............................................................................................32
6.6 Place Promotion................................................................................................................32
7.0 Implementation.......................................................................................................................33
8.0 Evaluation & control...............................................................................................................36
9.0 Contingency Plan....................................................................................................................38
9.1 Contingency Plan 1.............................................................................................................38
9.2 Contingency Plan 2.............................................................................................................38
1.0 Reference List...................................................................................................................39
2
P1 WiMAX Marketing Planning and Implementation
1.0 Introduction
1.1 Purpose
The purpose of this plan is to recommend a marketing plan for the Packet One Network
(M) Pty Ltd on its latest wireless broadband service. This report will emphasize on
strategy expanding the use of Wiggy, a mobile broadband modem.
1.2 Scope of this report
In this report the information used is mostly secondary data. It’s based on reliable and
relevant, academic journals, internet websites, online news article and textbooks. To
understand the behavior of the consumers, a survey was conducted on 600 respondents is
also used in this report.
1.3 Methodology
This report will conduct a situation analysis that covers the internal and external
environments, Porter 5 industrial analysis, competitor’s analysis and SWOT analysis.
These factors have direct impact on the marketing strategy and it will help P1 Networks
to identify the appropriate strategy suggest to focus on. In addition, this plan will identify
several marketing objectives that must achieve within specific period. This also includes
financial budgets and contingency plans.
1.4 Limitations
There are certain limitations of this report, that is this report is relevant based on the
current situation and assumptions on nearest current future. Restrictions to attain latest
information on P1 Networks are faced due to the resources and operations of this
company.
3
P1 WiMAX Marketing Planning and Implementation
2.0 Situation Analysis
2.1 Business Definition and Scope
2.1.1About the Company
Packet One Networks (M) Pty Ltd or P1 is a company which provides city wide
Wi-Fi services mainly in KL and is the first WiMAX broadband company in Malaysia. It
was established in 2002 and recently in 2007 the Malaysian Government had granted
them one of the four licenses of 2.3 GHz spectrum (Yu, 2008). This enables them to start
their wireless broadband services at the beginning of third quarter in 2008. P1 is the
subsidiary of Green Packet Berhad which is a global technology company that was
founded in Silicon Valley, California, USA. Green Packet is located in Malaysia as the
head quarters for research and development of WiMAX technology. Green Packet was
established in the year 2000 which is also the developer of the next generation mobile
broadband and networking solutions that wants to provide a seamless and unified
platform for the delivery of user-centric multimedia in any conditions. Therefore in
Malaysia P1 Networks is the platform or the right arm of Green Packet Bhd in providing
a wireless broadband internet service provider.
2.1.2 Mission, Visions and Objectives of Packet One Networks
The objective of P1 Network is “to be a leader in the wireless broadband industry
thus the need to enable ubiquitous Wireless Broadband connectivity across the region”
(P1 WiMAX Malaysia, 2008). They want to be recognized as quality next generation
product and services. The mission is that they want to create a need or value beyond
broadband. P1 Networks desire to “offer non-stop cost effective data, voice, video and
other value added service for all communication needs” (P1 WiMAX Malaysia, 2008).
2.1.3 Products and Services Definition of P1 WiMAX
Mainly there are two main products/services that is provided by P1 Network in
Malaysia that is the P1 WiMAX DS300 Shared Modem that is a shared and enables to get
receiving’s of wireless broadband access up to 50 kilometers from the main station. This
4
P1 WiMAX Marketing Planning and Implementation
modem can be shared by many users in the household and this save the cost of buying
another external router. The second is the latest the Wiggy, “the device can be attached to
a notebook and will allow users to surf on the move” (The Star Online, 2009). The Wiggy
features “MIMO- multiple in, multiple out technology which utilizes multiple integrated
antennas to offer better throughput and better coverage” (The Star Online, 2009). This
means that the customers of P1 will be able to serve the net in the car, train, bus any time
anywhere within the range provided.
2.2 External Environment
Four main remote environmental forces impacting on the planning unit
including, economic, political/legal, and socio-cultural environment is to be analyzed.
These are P1 Network’s dynamic forces of change or out of control variables. The
purpose of this is to consider the future as well as determine the opportunities and threats
that each external environment factor is likely to create over the period of strategic plan
(Reed, 2007).
2.2.1 Remote Environment Analysis
2.2.1.1 Economic Environment
The economic condition in Malaysia currently slowing as household incomes and
business activity decelerates due to the effects of current world economic down-turn.
However, Malaysia is still not in a recession period as compared to Singapore or United
States. Even with the depreciation of Ringgit, “real GDP growth is forecast an increase
from 5.0% in 2008 to 5.2% on 2009” (GMID, 2009).According to a report by the
Malaysian Institute of Economic Research an economic forecast in 2010 will sluggish
and uneven “given the worsening external conditions, it is likely that Malaysia’s growth
would deteriorate as it takes the hit from the knock-on effects of a flagging global
economy” (MIER, 2009). It is “projected that Malaysia 2010 growth forecast will
downgrade from 3.3 per cent to 2.8 percent” (MIER, 2009).To support the struggling
economy the government is implementing two sizeable stimulus programs. The funds
“will be used to help credit-starved firms, boost spending, support equity investment and
fund off-budget projects” (GMID, 2009). This plan was introduce in November 2008 and
5
P1 WiMAX Marketing Planning and Implementation
this “will help to boost the boost the GDP by 9% in 2009 and 2010” (GMID, 2009).
However looking at condition is likely to conclude that the economic shows uncertainty
and this may affect P1 Networks as an internet service provider. (Refer Appendix A)
2.2.1.2 Political/Legal Environment
In 2008, Malaysia political environment had change substantially due to the results
of general elections. The Barisan Nasional “unprecedented losses were largely blame due
to the ex-Prime Minister Abdullah Ahmad Badawi for failure handle issues such as
government corruption, ethnic marginalization and inflation” (Whelan, 2009). With the
new leadership of the new Prime Minister Najib Tun Razak, it is hope that he will be able
to steer the country thru the bad political and economical condition. The political outlook
in Malaysia may be seen as uncertain. The popularity of the new premier is largely due to
“his economic liberalization agenda that has revoked some pro-Malaysian policies”
(Whelan, 2009) but this may be short lived. Thus in 4 years to come the Malaysian
political system may change in 2013 projecting the opposition will be able to retain
power. In relating to the broadband service, online shopping is one of the many values
that is provided by the internet. According to Euro-monitor International, “Malaysia is
still in its infancy regarding online shopping, however this is likely to change due to
lower broadband prices and the government's commitment to 50% broadband penetration
by 2010” (GMID, 2009). The other reason is also regarding the law of consumer
protection. Recently, “66 people were cheated out of RM73, 445.10 (US$20,547) when
trying to buy online cosmetics from a website named “Big Pussycat” (GMID, 2009).
Thus for P1, political uncertainty and immature cyber law regarding consumer protection
may affect the way broadband is used in Malaysia.
2.2.1.3 Social Cultural Environment
The population of Malaysia has increase at a steady upward level in recent years.
In 2007, the population is consisting of 27.17 million and in 2009 this number has
increase to 28.31 million. Approximately 26% of the population is consist to be between
teen and working adults. In terms of density in 2008, “density was 84.1 people per square
kilometer, up from just 42.2 people per square kilometer in 1980” (GMID, 2009). By the
6
P1 WiMAX Marketing Planning and Implementation
year 2020, the population density will grow up to 99.7 per square kilometer and Kuala
Lumpur will be the most populated area. The “degree of urbanization is increasing at a
steady pace and urban share in total population was 40.9% in 1980 and today it is around
62.9%” (GMID, 2009). By 2020, “an estimated 72.4% of the total population will be
living in urban areas” (GMID, 2009). (Refer Appendix B)
The digital trend as observed on July 2009 by Euro-monitor International, there
are 5 key trends that shape Malaysian. “Online activities appear across the 15-64 groups,
with user-generated activities such as instant messaging, downloading and chat rooms the
domain of youth aged 20-24” (GMID, 2009). 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). Health concern also
has rise substantially. In relation to the WiMAX development by P1 Networks in Penang,
the Consumers Association of Penang has put the project on hold until is proven safe. Its
chief minister said that they are willing to cancel the project within a day if non-
governmental organizations can proof there is elements that can affect the health of the
public (GMID, 2009). (Refer Appendix B)
2.2.1.4 Technological Environment’
The diffusion of technology innovation in Malaysia has dramatically increased in
recent years. These changes can be clearly seen in the IT sector based on Malaysia’s IT
spending. The Malaysian Information Technology 3rd Quarter 2008 reported that “the
compound annual growth rate should grow of 9% over the 2007-2012 periods, despite
some significant downside risks to the economic environment” (Business Monitor
International, 2008). 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). A very easy way to see the increase in IT technology is thru
the storage space available in the market. From flash drive to hard disk, the storage space
at minimum is at 2 gigabyte and this had replaced the use of CD-ROM that can only store
700MB. (Refer Appendix D)
7
P1 WiMAX Marketing Planning and Implementation
The WiMAX technology in particular has also room to expand its capability. Based on a
research in the European market, “in the near future key access technologies that will be pursued
by many new entrants will be FWA and in particular Wi-Fi and WiMAX that rely on the 3.5 and
5.8 GHz spectrum band” (Vlachos, 2006).Currently P1 WiMAX is using 2.3ghz spectrum band
and with higher frequency meaning that more coverage and in result to more subscribers. In
addition, WiMAX services can be extend more to hot spot areas such as universities, airports
and rural area without telephone service. The use of internet has had a significant impact
on Malaysia over the past several years. The number had doubled from 8.6 million users
in 2003 to 16.9 million users in 2008. This shows an upward trend of internet users and it
will increase higher in coming years. The initiation of Multimedia Super Corridor (MSC)
in 1995 was a leap to create an information age and many programs were assisted
thereafter. (Refer Appendix D)
Total telecommunication revenue in Malaysia shows a positive upward trend. For
this industry the revenue never seems to fall. In 2003 the revenue is RM 18 billion and in
2008 this number increase to RM 26 billion Ringgit. This shows that the rapid increase in
technology had contributed to the revenue. Other statistics also show an increase such as
the Malaysian Broadband users. In 2003 the subscribers were only 110400 but in 2008
the numbers had increase in a geometric aggression to 1.4 million users. “The
government’s High Speed Broadband initiative will help boost demand for internet
services when it is completed in 2012” (Business Monitor International, 2008).
2.2.2 Near Environment Analysis
2.2.2.1 Porter’s 5 Forces Model
An attractiveness of an industry is determined by Porter’s 5 competitive forces.
By highlighting the 5 forces, a company can verify its industry’s attractiveness factors.
2.2.2.1.1 Rivalry among Present Competitors
Rivalry comes into action when there are close substitute products offered by
firms in the same industry (Walker, Mullins, & Larreche, 2008). P1 WiMAX’s close and
direct competitors are basically Maxis Broadband, Celcom Broadband and Digi
Broadband. These broadband companies in Malaysia offer various attractive packages
8
P1 WiMAX Marketing Planning and Implementation
and internet speed that are always in demand by customers. Despite the competition, the
Group’s (Green Packet) revenue has seen an increase of 36.1% from 41.5million to
RM56.5million in Quarter 2 2009 compared to Quarter 1 2009 (Zoldan, 2009). This
indicates that P1 WiMAX can remain competitive, further grow or perhaps be the market
leader in future with the WiMAX technology if it takes continuous action to improve.
The company needs to come up with better products, packages and improve on its
internet speed as well as customer services. Take note that although the products are
differentiated, it does not promise that customers will not switch to other brands even if
their switching cost is low.
2.2.2.1.2 Threat of New Entrants
The threat of new entrants in the broadband industry can be relatively low mainly
because it requires high investment cost in coming up with the appropriate technology
that fits the products (i.e. Wiggy & modem) and network system in Malaysia. Based on
the Euro-monitor, the capital investment in telecommunications increases every year. It
was 4,407.0 million in year 2003 and its 5,645.6 million in the recent year (GMID, 2009)
Secondly, only four WiMAX licenses are available in Malaysia. They are Packet One
Networks (M) Sdn Bhd, REDtone International Bhd, YTL e-Solutions Bhd and
Asiaspace Dotcom Sdn Bhd (Tan, 2009). Thirdly, it is found that there are limited
numbers of suppliers that support broadband services in Malaysia. However, there is a
very high growing demand for broadband services among consumers; hence it is possible
for some new entrants to venture into the broadband industry in near future. There were
110.4 million of broadband internet subscribers in 2003 and there are exactly 1,409.2
million of broadband internet subscribers in the recent year (GMID, 2009).
2.2.2.1.3 Bargaining Power of Suppliers
The third industry attractiveness factor is concerned over the number of suppliers
in the industry. When there are limited suppliers in a particular industry, the power of
suppliers increase especially when the price of substitutes are high and when the
switching cost of suppliers are high (Walker, Mullins, & Larreche, 2008). In this case, P1
WiMAX have low bargaining power with suppliers mainly because there are not many
9
P1 WiMAX Marketing Planning and Implementation
suppliers that provide materials or telecommunications equipments such as the software,
networks and communication towers in Malaysia. Some of the few well known suppliers
are Green Packet, Huawei, and Cisco. Finding for suppliers that provide the appropriate
technologies for P1 WiMAX could be challenging in Malaysia and the switching cost of
suppliers is expected to be very high.
2.2.2.1.4 Bargaining Power of Buyers
Bargaining efforts of buyers are based on buyer profitability and switching cost
(Walker, Mullins, & Larreche, 2008). If the particular product is relatively important to
the buyers and they have a low income, the bargaining power is generally more
aggressive (Walker, Mullins, & Larreche, 2008). There are a number of broadband
companies in Malaysia as mentioned above, which easily allows P1 WiMAX’s customers
to switch to other broadband at anytime with a low switching cost. This shows that P1
WiMAX’s buyers have high bargaining power. Hence, product differentiation in terms of
technology used as compared to other players plays a major role in retaining its
customers and attracting potential customers. However, bargaining power of buyers
basically depends on the supply and demand of products (Photopla, 2007). When there
are more buyers, the buyers tend to have more power to influence the sellers in setting up
lower prices (Ezine Articles, 2008). It is stated that P1 plans to provide WiMAX
coverage to 40 percent of the population (10 million people) by the end of 2010. It
expects to provide WiMAX coverage to 60 percent of the nation's population including
urban, suburban and rural areas within five years (Caroline, 2008 ). The increasing area
coverage may attract more buyers in future, leading the buyers to a higher bargaining
power.
2.2.2.1.5 Threat from Substitute Products
It is studied that when a product or service is not easily substituted, it gains a
strong market position (O’Connell, Lancy, & Egeraat, 1999). There are quite a number of
substitute products for P1 WiMAX. For instance, customers can always choose to go for
wireless internet service such as Streamyx or simply go to cafes such as Starbucks that
has Wi-Fi for internet connection. To overcome this threat, P1 WiMAX must ensure the
best quality of internet connection; speed and service are offered to its customers and
10
P1 WiMAX Marketing Planning and Implementation
prospects. At the same time, offering affordable or reasonable price to its customers as
compared to the alternative products is crucial. P1 WiMAX who is relatively new in the
market constantly hold promotions and currently set its products at a moderate price level
so that most customers can afford and able to enjoy the broadband service at a reasonable
price. However, in long term, it seems that P1 WiMAX may be able to eliminate these
substitutes as its threat. Based on an article, comparison between P1 WiMAX 1.2MB and
TM Net Streamyx 1MB were made. It is stated that P1 WiMAX is the winner and it is
three or four times faster when downloading a file from web, streaming on YouTube and
Bit-torrent (cglow, 2008).
2.2.2.2 Competitors Analysis
According to Rouach and Santi (2001), competitor analysis can be defined as “the
collection, processing and storage of information and its dissemination to people at all
levels of the organization in order to help shape the organization’s future and its protect it
against current competitive threats”.
P1Wimax is a broadband company that uses the WiMAX technology. There is
only four WiMAX licenses that was granted by the government to four different
companies (Loh, 2009) These competitors are not strong competitors as they are
currently not utilizing the WiMAX Wireless Service. Anyhow, they are still a treat to
P1Wimax if they all built up and compete in the market share with P1.
P1’s strongest competitor would be Maxis, Celcom and Digi. Even though the
three competitors are using a different technology which is the high speed 3G network,
the product they sell are for the same use which is broadband wireless service. All four
companies compete and target the same consumers which are mainly on the go internet
users. Maxis currently hold the largest market share in the wireless broadband market
(need to find evident to support). As an establish Telco company in Malaysia, Maxis is
the market leader in the Telco service provider. It would be a lot easier for Maxis to reach
out to the market to sell the broadband service as they have already establish their name
and trust in the eye of their phone users.
11
P1 WiMAX Marketing Planning and Implementation
The three main competitor is using a 3G network as the broadband connection,
thus by just having the modem, users can surf the internet throughout Malaysia including
Sabah and Sarawak while the WiMAX license that is issued to P1 is to provide WiMAX
services is peninsula Malaysia (Loh, 2009)
Another competitor or P1 will be Streamyx. Streamyx is an internet broadband
provider via local telephone connection. Streamyx main targets are home users. In the
new era, almost every household has internet connection in their home. The most
common used internet connection is Streamyx. Streamyx can also be used via Wi-Fi
connection with a router added onto the modem. There are a lot of shops and restaurants
that currently offering free Wi-Fi to its customers. Thus internet users can surf the
internet for free in this places. Potential customers of purchasing wireless broadband will
reduce as they are able to access free Wi-Fi in many places now.
2.2.2.3 SWOT Analysis
A SWOT analysis is conducted by organizations to examine their internal
strengths and weaknesses as well as external opportunities and threats. It is an evaluative
tool used to develop an organization’s strategic profile and determine realistic delimiters
in order for the company to formulate a successful strategy and sustainable competitive
advantage (Sherman, Rowley & Armandi, 2007). Sherman, Rowley & Armandi (2007)
also noted that the analysis is also used to determine if the firm’s internal capabilities as
well as core competencies would allow growth and if the market would also sustain
growth.
The ratings are done on a scale of 1-10, 1 being the worst and 10 being the best.
The scale will indicate which is the greater strength or opportunity and which is the
biggest weakness or threat to P1WiMAX. Please refer to Appendix I for the ratings chart.
Based on the ratings done, should focus on building its brand as although it is a market
leader, among all direct and indirect competitors, the amount of market share held is still very
little. Given the rapid growth of the broadband, m-commerce and e-commerce industry, there is a
large opportunity which should be taken advantage of hence a need to capture untapped markets,
build the brand and start generating sales and good word-of-mouth. However, brand building and
12
P1 WiMAX Marketing Planning and Implementation
capturing a new market is also a focus because the competition represents a large threat to
P1WiMAX.
2.2.2.3.1 Strength
First mover & market leader advantage
Packet One (P1) is the first telecommunication firm in Malaysia to deliver WiMAX services to the public (Malaysian Country Pulse Broadband, 2009).
Technology transfer or sharing from parent company Green Packet
P1 is a subsidiary company of Green Packet, a technology company from Silicon Valley, and gets its technology and designs from Green Packet. This helps boost P1 as they can learn from their parent company.
Lower susceptibility to interference
WiMAX is also less susceptible to interference from the weather such as rain as
compared to other wired and wireless broadband (Lai, 2009). This makes it a much more
suitable choice given the local weather.
2.2.2.3.2 Weakness
Coverage – Only 35% of Malaysia
As P1’s WiMAX service is still relatively new and in the process of being fully
implemented, coverage is still not optimal especially in East Malaysia. P1 is expanding
and hoping to reach 50% coverage for Malaysia but the current low coverage of 35%
leaves a gap and opportunity for competitors to move in (Lai, 2009 & P1’s service getting
broader, 2009).
Packages offered are not as value for money
P1’s packages have Competitors such as AMAX offer unlimited bandwidth (no fair
use policy) and the early termination fee of RM999 is over the top and not many people
would accept such a term (Packet One Networks, 2009).
13
P1 WiMAX Marketing Planning and Implementation
2.2.2.3.3 Opportunity
States going wireless – Penang deal with P1
This provides opportunities as P1 may be able to take advantage of this need and be
the most widely used, known or eve sole provider in the state. This will put them ahead
of their competition as well as help to establish credibility and reputation.
Increase of preference for mobility, broadband, m-commerce and e-business
The boom of e-businesses and m-commerce, doing things such as paying bills
online and being on the go creates an opportunity for P1 as the trend is to utilize and
makes the best of all the time you have. This is due to the increasing preference for full
mobility, doing things on the go and online connectivity (GMID, 2009).The increase of
broadband users is also a sign that the market would be ready for P1 WiMAX if the
service and promotions are implemented successfully.
Technological advancement – MIMOS WiWi
The new MIMOS WiWi allows for better penetration into the broadband market such
as being able to reach rural areas where pulling cables are a more costly, time consuming
and inefficient option. If P1 is able to build a strong brand name, excellent reputation and
services, it will be able to capture the lion’s share of the market.
2.2.2.3.4 Threats
REDtone is heavily investing in East Malaysia
With REDtone heavily investing and focusing in East Malaysia (Loh, 2009),
REDtone has managed to establish themselves and build credibility there. This creates an
obstacle for P1 whose objective is to be the leader in the wireless broadband industry
(Packet One Networks, 2009). P1 will find it much harder to penetrate that market
without heavy investments in promotions and improving their services or REDtone’s
service deteriorates.
Competition (refer to Appendix A)
14
P1 WiMAX Marketing Planning and Implementation
P1 only offers 2 portable WiMAX packages, the Wiggy and the Wiggy 69. As there
are only 2 packages available, each package is placed on two extreme ends, one with a
very low speed and the other with a significantly higher but also higher price tag. There is
currently no package catering to the in between market – those who do not mind paying a
bit more and getting a slightly higher speed than that offered by Wiggy 69. Aside from
that, the competition offers a much wider range of packages and some even cater to the
“in between” market. Aside from that, more competitors are also appearing from the 3
other WiMAX licensees YTL’s Y-Max, REDtone WiMAX and Asiaspace’s AMAX
(Loh, 2009).
Preference for wired broadband and free wireless services
As wireless broadband is still not very advanced, it tends to be either more unstable or
does not have extensive coverage. As such, people may not want to pay for a wireless
broadband when options such as wired internet in the office or at home is available. Free
Wi-Fi services are also available to cater for the increasing preference for full mobility in
many places such as F&B outlets such as Starbucks, McDonalds, Secret Recipe, Old
Town cafes and the Papa Rich franchise.
2.2.2.4.1 P1-Business Position
P1WiMax endeavors to bring satisfaction to its customers in the form of the new
generation WiMAX technology for mobile broadband users (P1, 2009). As a new entrant
to the market, P1’s position is growing everyday in such a dynamic market. P1 is seen as
a company that has medium business unit strength. P1 enjoys moderate market share,
with impressive growth in its market share, brand equity is favorable. Since P1 is a
relatively new entrant to the broadband industry its relative profit margins in comparison
to its competitors are moderate. All factors considered, P1 is deemed to have ‘medium’
business unit strength (Business Monitor International, 2008).
15
P1 WiMAX Marketing Planning and Implementation
2.2.2.4.2 Market Attractiveness
The broadband market in Malaysia has been somewhat monopolized with the
partially government owned ‘Streamyx’. This lack of competition has caused a lack in
quality of product. As more tenders are released to smaller projects such as P1’s WiMAX
product, a greater sense of competition arises. With more competition available it creates
an opportunity for smaller firms and makes the market more attractive. With P1’s
WiMAX offering, it has tapped a niche in the Malaysian broadband market and has hence
enjoyed a high market growth rate on the back of saturated marketing techniques in a
significant sized market. These significantly weighted factors when determining industry
attractiveness in the GE Matrix cause P1 WiMAX to be situated in the ‘high’ category.
2.2.2.4.3 GE Matrix Chart
P1WiMax as shown above is positioned in the medium business unit
strength/high industry attractiveness category of the GE Matrix. According to Reed
(2009), this would suggest P1WiMax is at a stage where it is ready to embark on an
“Invest to build” strategy. Under this stage, P1WiMax will challenge for leadership in the
Malaysian mobile broadband market, specifically by building selectively on strengths,
and reinforcing their more vulnerable areas.
2.2.2.5 Buyers Analysis.
Buyer’s analysis is a framework that is often used in their decision process which
in this case is regarding the purchase of Wiggy. Under the pre purchase decision, there
are three criteria; the need, information search and evaluation. Under need, buyers will
find a reason why to purchase Wiggy recognize the need to access the internet on- the-go.
The information about the Wiggy can be obtain thru the P1 Website, newspapers,
brochures, sales people etc. The evaluation that buyers normally assessed is the Wiggy’s
speed, reliability and whether it suits their need. Sometimes a buyer might think that they
have free internet access at work, at home and other public places thus they don’t need to
use Wiggy. After evaluating, it’s up to the buyer whether they want to purchase or not. If
they chose to purchase the Wiggy, the satisfaction they will get is faster connection
16
P1 WiMAX Marketing Planning and Implementation
speed, larger bandwidth, reliable and stable broadband service. However if the experience
is unsatisfactory buyers would not be loyal and switch to another internet service
provider. The longer the commitment of the buyers, the loyal they would be towards P1.
3.0 Marketing Objectives, Strategies and Marketing Mix
3.1 Marketing Objectives
The Marketing Objectives for this plan would be listed below:
a) To increase to 10% market share to subscribe the P1 WiMax Wiggy at the
end of 3 month period.
- Currently, P1 has 80,000 subscribers; this plan would double
the amount to 160,000 subscribers by using Wiggy.
b) To increase 30% awareness of the company’s position and brand to the
mind of the consumers age 18-30.
3.2 Financial Objectives
a) To increase companies profit by increasing sales by 30% to ensure every
from each dollar's of sales worth of a company's assets
Marketing Strategy’s
3.3.1 Untapped Segment & Brand awareness
As a new company, adopting a head on strategy with giant competitors will create
price wars . The best strategy to adopt is by using a blue ocean strategy that is to make
the competitor irrelevant and to create an uncontested market place. This can be done by
value creation to the Wiggy by targeting segments which is not yet being focused by
others. Firstly the target market that can be captured is the college and universities
students. However, it is important to have a specific student package that dedicates to
17
I Introductory
Growth Competitive turbulence
Maturity
Months
Sales
1st -11th month
11th- 24th
24th-48th month
48th and beyond month
P1 WiMAX Marketing Planning and Implementation
serve the needs and wants of student and most importantly to create value for money.
Secondly, is by introducing the first internet service provider by to adopt the prepaid
payment system. A prepaid system can ensure higher return because people will
constantly reload their Wiggy. This will compliment the first strategy because we know
that students often reload their hand phone.
To create brand awareness, this will require mass media. The use of newspaper,
television advertisements are important to remind the consumers on P1 latest package.
Road shows are the best way to reach the students. The road show will reach areas such
as universities/colleges and exhibition in shopping malls and other attractions across
peninsular Malaysia. The road shows will explain on the student primarily on the student
package. However, not many students will subscribe to P1’s Wiggy on a road show basis
because they will to think and ask their parents for approval etc. Thus when they decided
to subscribe, they will have to find the P1 booth and this might be hard. As we know, P1
does not have a physical outlet like Maxis, Celcom and DiGi. Thus the strategy to
overcome the issue is by selling the Wiggy start up package in selected 7 elevens. This
also will compliment the prepaid system strategy. Overall, these strategies are
interconnected and will complement each other to achieve the target objective stated
above.
3.4 Product Life Cycle
Product life cycle (PLC) is basically a concept about the life of the product and
progress through different episode of life cycle stages (Reed, 2007). The stages are
introductory; growth; maturity; and decline or life cycle extension. It is very important
for marketers to understand its product position in the market to be able to undertake an
appropriate strategy as well as gain competitive advantage (Reed, 2007).
18
P1 WiMAX Marketing Planning and Implementation
The Wiggy was introduced in early April 2009 and only 6 months in the market.
Therefore it can be categorized at the introduction stage of the lifecycle. This can be
reflecting on its quarterly financial performance of Green Packet. The cumulative for 6
months period ended for June 2008 is MYR 44, 789,000 but for the period ended June
2009 it doubles to MYR 97,959, 000. Even the Wiggy sales are not define in the financial
statement but we can assume that the positive impact of new product initiatives (Wiggy)
had benefited the sales of Packet One.
3.5 Segmentations, Targeting and Positioning
Segmentation is “a process of separating customers into groups with different
characteristics, behavior and needs” (Chin, 2002). There are many types of buyers with
different needs and wants thus it’s easier to build a profile by segmenting them. Some of
the bases for segmentations for consumer markets are geographic, psychological, socio-
cultural, user related, psychographic, benefit and hybrid segmentations. For the purpose
of identifying in relation to the Wiggy, three main segmentation bases will be used. In
order to get accurate information on the current broadband users in the market, a survey
had been conducted. A total of six hundred and fourteen (614) respondents had been
participated from many areas such as Sunway, Subang Jaya, Shah Alam, Ampang, Klang,
Damansara, Kepong, Gombak, Puchong, and other Kuala Lumpur areas. All respondents
are chosen based on their most basic knowledge of WiMAX technology. The survey
results are summarized below:
Demographic factors is said to be the most popular bases for segmenting customer
groups because it helps locate the target market and customers needs and wants differ
closely with the variables demographic offers (Kotler, 2007) The first variable that will
be analyzed of the demographic segmentation will be age. Age is an important criterion
as this determines what type of product or services that are purchase. From the survey
result, 403 respondents age 21-30 are aware about the difference of WiMAX technology
and other broadband. Other age group such as below 20 and 31-40 shows a gap on their
level of awareness. This is either they are not technology savvy or they don’t require
WiMAX technology. The second variable would be income, education and occupation.
Income has always been used by marketers as a strong indicator of the ability for a
19
P1 WiMAX Marketing Planning and Implementation
consumer to afford to purchase goods and services (Chin, 2002).Eighty percent of
respondent has an average income about RM3000 and below. This is likely that they are
still studying or likely just started their career. Therefore is important to make the Wiggy
more affordable. From the survey 41.7 % of the respondents are undergraduate, degree/
professionals and 35.3 % have diplomas qualification. Fifty seven percent of the
respondents are also students followed by professionals in both private and public sector
amounts 31.8%. Occupation, income and education come hand in hand and tend to be
closely related due to the cause- effect relationship (Schiffman, 2008). High level
educated people seek out information more than low level education people. The level of
information that they receive is more due to their various sources of media in their
environment. The uses of internet are knowledge they acquired thru their participation in
completing an assignment or task in their courses. Thus this are the likely targets that P1
have to take into consideration
The second base is the user situation segmentation that is to understand the
objectives, surf location and duration (time) of using the internet. This segment is
relevant to the benefits sought for product because the usage of the product is affected by
the time and location that it is going to be applied. P1 can use this indicator influence the
consumers to use Wiggy to match to their usage. They can instill the notion the suitability
of Wiggy in certain situation. 35.5% of the respondents use internet for work purpose and
27.4% uses for study purpose. 16.1 %.of the respondents uses the internet for
downloading, social networking and other entertainment activities. The location of using
internet is also an important variable. From the survey 32.2 % of the respondents do surf
the internet outside their home such as in café, in school/ university/college, and in
shopping malls. The trend of surfing outside of the house started when many of these
public areas are equipped with free Wi-Fi services. The survey also shows that 29.8 & of
the respondents surf the internet for more than 8 hours a day. This is probably they use it
during work and study hours. Thus overall, P1 should target consumers who are actively
uses of the internet outside their home. Overall, if Wiggy successfully does connects to
the internet in the time and place the consumer desires, they will subscribe to Wiggy.
Finally the third segmentation base is psychographic/lifestyle segmentation is
basically “dividing market into the basis of lifestyle and personality” (Kotler, 2007). An
20
P1 WiMAX Marketing Planning and Implementation
individual “consumer’s lifestyle and personality is different however based on their
demographic profile, they sometimes resemble similar taste on brands or product” (Orth,
2004). From the survey, 64% respondents prefer to high speed internet access from their
broadband. From this 17.1% prefer to have connection stability and 2% prefer value for
money broadband service. This show the consumers wants a higher speed because of
their busy and hectic lifestyle. Therefore P1 have to ensure that the speed of the Wiggy
must be fast compare to other competitors.
A target market consists of a set of buyers that shares common needs or
characteristics that the company decides to supply (Schiffman, 2008). The target market
for Wiggy is based on the profile below:
Segmentation Variable Target
Age 21-30
Income Below RM 1500
Occupation Students.
Education Status College, Universities, Institutions
Location Outdoor,- in College, Café, School
Lifestyle Busy and Hectic, always on the go.
Positioning is all about how a company wants to be different in the market place.
P1 has to position themselves in the mind of consumer as a high speed broadband service.
In this case P1 has positioned “to make broadband a right for all Malaysians, to deliver
the commitment, the rapid and quality deployment of the P1 WiMAX network is crucial”
(P1 WiMAX Malaysia, 2008). It’s quite difficult to change the impression after it is
formed thus the easiest way to get into the consumers mind is to be the first. As for P1,
they the first to introduce WiMAX technology are the first but in terms of other
broadband providers they are relatively new. In an over communicated environment, the
message that P1 should focus on is to present a simplified message and make them
consistent with what consumer really believe. Consumers will simply shut out any
inconsistent with their knowledge and experience. Based on the survey results,
consumers preferred on two criteria; service quality (speed & stability) and price (value
for money).
21
Low Service Quality
Great Value for MoneyPoor Value for Money
P1 WiMAX Marketing Planning and Implementation
Referring to the perceptual map below, the vertical axis relates to the quality of
the service and the horizontal axis relates to the value for money. The P1 WiMAX is
currently has a good quality for money but low in quality and services. This is due to the
coverage area and its other limitation. The Wiggy has been position its self as ‘on-the-go’
but in actual case it’s not able to support on the go as compared to Maxis Broadband and
Celcom 3G.
However in terms of value for money, P1 has numerous packages and offer a larger
bandwidth compare to other providers. Thus P1 will have to move up the ladder to
positioned them self towards higher quality service in order to compete with others.
5.0 P1WiMAX Marketing Tactics
5.1 Promotion
Promotion refers to the set of planned activities used to communicate a product or
service’s merits and persuade the target market to purchase it (Kotler, Brown, Adam, Burton &
Armstrong, 2006). This basically refers to the activities P1WiMAX will use to inform the public
on the Wiggy’s values as well as persuade the target audience to try or purchase the Wiggy
portable USB broadband.
22
High Service Quality
P1 WiMAX Marketing Planning and Implementation
5.1.1 Events
Event marketing will be carried out in order to boost awareness, trial and purchase of the
Wiggy. Events refer to entertainment occasions performed in front of a live audience that displays
a unique picture of how a product or service can be promoted through different mediums
(Erickson, 1999). Events carried out are road shows in different areas. These events expose the
target audience and provide direct contact with the sales staff as well as experience the service.
The Wiggy road show will hit middle class malls such as 1 Utama and Mid Valley
Megamall shopping centre and private education institutions such as Sunway University College.
This is only held in universities between Mondays to Thursdays while the weekeneds will be
reserved for malls. It will progress from zone to zone, such as Kuala Lumpur and Gurney Drive.
Two teams simultaneously hit two different spots each in each zone a day during the weekdays
and one team for the weekend. When they leave the area, a kiosk and several promoters will be
set up if there is none nearby for potential customers to enquire for more information or subscribe
to the service. The road show will be held in states where P1WiMAX has coverage – Selangor,
Kuala Lumpur, Johor, Penang, Kedah, Perak, Pahang and Terengganu. The current locations can
be referred under the implementation section.
Each weekend team has a 10 person staff while the weekday team consists of 5 members
and a large “Wiggy mobile” transport them from place to place. The “Wiggy mobile” is painted
with the P1WiMAX colours and logo. In order to attract more attention to the event and service,
the staff will wear purple or green polo shirts bearing the P1WiMAX logo with coordinating face
masks bearing a large picture of the Wiggy device and announcements made by an emcee and the
mall’s announcer. For further Promotion and advertising, large banners and posters will be used
on site with several smaller posters of Wiggy devices on bright purple or green backgrounds will
be posted up in the surrounding area to direct the flow to the event.
The road show events cover a speed test and stability challenge. In the speed test,
potential customers are challenged to test out the Wiggy service by surfing the net, downloading
a song or streaming a video on the 3 laptops set up, each plugged in with the Wiggy USB modem,
manned by one promoter each. In the stability test, several potential customers are given half an
hour to play an online game from local and international servers. At the same time, the other
promoters will hand out brochures, attend to enquiries and handle on-the-spot subscriptions.
Lastly, a lucky draw contest is held for those who subscribe on-the-spot. They are given a chance
to win one out of three 3-month rebates for normal package subscriptions weekly. The serial
number of the purchased set will be used for the computer to generate the lucky draw winner.
23
P1 WiMAX Marketing Planning and Implementation
Additionally, the first 150 people at each road show who leave their contact details will win a
P1WiMAX lanyard. The student packages will also be used in the road shows.
A road show is chosen in order to maximize the reach and impact of the promotional
campaign as the people would be able to interact and participate in the events. This makes the
event more memorable, hence increasing brand awareness and recall. The logic behind the
location choices is because these places are often frequented by students and young adults, the
chosen target market. Given the current occupation and average income derived from the research
conducted, it is noted that many heavy internet users have an average monthly income of less
than RM3000. As such, the target market concentration is higher at and will most likely frequent
malls like 1 Utama over Pavilion and trust and purchase IT related products from IT malls such as
Digital Mall over buying from shops in ordinary shopping malls where products are not as low
priced. Three teams are deployed simultaneously to cover more areas and increase reach. The
“Wiggy mobile” serves a dual purpose of transportation and further to advertise and promote
P1WiMAX and the Wiggy. The uniforms, banners and posters are used to capture attention, spark
interest and curiosity and lure potential customers to the event.
The main event, the speed and stability test challenge, is chosen to emphasize and send
the message to the potential consumers that the service truly is fast and stable. Speed and stability
are chosen as marketing points as the research showed that these two factors were more
prioritised. The challenge is conducted in order to convince the public of the validity of the
service’s claims. Any service can claim that they are the cream of the crop but a challenge will
truly capture attention as the public and sceptics are given a chance to prove the claims wrong.
The gaming part of the stability challenge will allow the public to see that even with continuous
use of the service, the connection will still be stable and unaffected by long usage or even the
weather. The lucky draw on the other hand is used to serve as an incentive to the public to
immediately subscribe on the spot. It is used as a reward for P1’s wished-for behaviour of the
public.
5.1.2 Service availability in F&B outlets
Another way to promote Wiggy is by making it available in F&B outlets such as
Starbucks and Old Town branches that are under P1WiMAX’s coverage. The franchise managers
will be approached and the simple process explained to them in order to get consent. The current
system used will be replaced with the P1WiMAX Black Box and brochures for the Wiggy service
will be placed at the counters or magazine stands.
This method is used in order to demonstrate and promote the stability and speed of
P1WiMAX. Once the users get a feel of the WiMAX technology P1 provides, they will be more
24
P1 WiMAX Marketing Planning and Implementation
easily convinced to make a purchase if they are able to experience a product or service first hand
as they will make the judgement on their own. F&B outlets are selected as it is not only a hang
out place but a place where those who wish to surf the net can do so in comfort as food and
beverages are served there. It is more convenient than using the cyber café and it also provides a
change of atmosphere from surfing the net at home, the office or in an educational institution.
The two F&B franchises are chosen as many people patronize the outlets not only for the food
and drinks served but also for the ambience, WiFi services and prices. Both franchises attract the
student target market, Starbucks for those who are willing to spend more and Old Town for those
who often frequent the place or those who do not wish to spend as much. Furthermore, the
distribution of these outlets is wide and it is easy to find a Starbucks or Old Town café. Thus the
name and device will always be easily seen, building awareness, reminding the public and
creating interest in the Wiggy portable USB modem service.
5.1.3 Student Package
Communicating the benefits to the end-consumer of a mobile broadband product often
needs a ‘sweetener’ to entice the consumer to change their provider or sign up for the first time
with a new provider. Historically sales promotion has been used to boost short-term results,
however many marketing communication strategies adopt sales promotion as an “integral part” of
their strategy (Reed, 2007). Sales promotion is “a direct inducement that offers an extra value or
incentive for the product to the sales force, distributors, or the ultimate consumer with the
primary objective of creating an immediate sale” (Belch, Belch, Kerr, & Powell, 2009). Whilst
there are various sales promotional activities available to marketers, the three main activities
pursued will be premiums, price-offs and bonus packs.
An important goal for broadband providers and all companies in general is customer
retention. With a general push away from brand loyalty (Belch et al., 2009), sales promotion goes
a long way to add value to the product and hopefully in turn retain a higher percentage of their
customer base. The following tactics are designed to attract consumers to P1WiMax and
ultimately retain them as end-consumers.
Adding value and an incentive to purchase to the end-consumer is the key role of sales
promotion. The student market for mobile broadband is significant and forms the key
demographic of the target market. Building a product to consumer relationship with this
demographic is extremely important. With students sometimes paying up to RM26,000 per year
on higher tertiary education fees, a mobile internet service that is fast, reliable, portable and most
of all, affordable is most attractive. The current P1 Wiggy plans and packages are listen in
Appendix J .
25
P1 WiMAX Marketing Planning and Implementation
As an incentive for students to sign up to P1WiMax’s ‘Wiggy’ package, an exclusive package
deal for ‘students only’ would include the following:
12-Month short-term contract.
Differentiating the student plan from the ordinary 12-Month contract plan would
be a wavering of the RM299 upfront payment for the ‘Wiggy’ portable modem.
For students registering for the ‘Wiggy 69’ package, which is RM69 a month with
a download speed of up to 800Kbps and a fair usage threshold limit of 5gb, the
last month of the 12 month contract would be free-of-charge.
For students registering for the ‘Wiggy*’ package, which is more expensive at
RM149 per month with an improved download speed of up to 10mbps and a fair
usage threshold limit of 10gb, the last two months of the 12 month contract would
be free-of-charge.
A premium offered to students whilst stocks last upon signing up. The premiums
on offer would include – pen drives, mouse pads and coffee mugs all bearing the
P1WiMax logo.
In justification of the offer, a shorter term contract would be more appealing to students as
many students live in a dynamic environment and value their freedom of choice. By making the
12-month contract more attractive the student’s interest will be garnered. Essentially, by
wavering the upfront payment for the ‘Wiggy’ portable modem, the student 12-month package is
treated as a regular 24-month package. A perceived saving of RM299 on the ‘Wiggy’ portable
modem instils a greater sense of value for money in the consumer.
The refund offered at the end of the student consumer’s contract could be influential in
inducing “trial of a new product or encourage users of another brand to switch... Refund offers
can also encourage repeat purchase” (Belch et al., 2009). By offering a free month at the end of
the lower level contract, it acts as an incentive for prospective student consumers; it also finishes
the contract with the student consumer in a positive way, potentially influencing their decision to
sign a new contract with the company. In offering two free months for the more advanced
package, it instils a greater sense of value for upsizing. The greater the perceived value is in the
mind of the consumer, the more likely that consumer is to sway towards the greater offering.
Finally, the premium on offer acts as the ‘icing on the cake’. A premium is an “item of
merchandise that is offered free as an incentive or bonus for purchasers of a particular product”
(Reed, 2007). The premium mentioned is a ‘With-pack premium’ in that it “accompanies the
product” (Reed, 2007). Admittedly, the addition of a premium to the student package may not be
26
P1 WiMAX Marketing Planning and Implementation
the determining factor when a student decides whether to leave their existing internet service
provider, or to initially sign up with P1WiMax, however the added value it carries may make the
end-consumer happier with their purchase and hence greatly improves chances of customer
retention and good word of mouth. The fact that these items will carry the P1WiMax logo is an
added bonus in that it creates brand saturation and exposure peer to peer.
As it is possible for people to abuse the benefits of a student package, a control system
must be implemented, in that only consumers that present a valid student identity will be eligible
for the above package. Further, the student identity must be valid for at least 6 months of the
contract period.
5.2 Place
In order to increase availability and distribution, the distribution and convenience of 7-11
outlets will be capitalized on. The prepaid cards will be made available at the 7-11 convenience
stores that are within coverage. Only 100 outlets in major cities and towns under coverage will
participate as a trial run to see if this plan will help achieve the goals and objectives of increasing
awareness and usage. The current prepaid plan utilized can be seen in Appendix K.
Not only will the outlets be a form of promotion, letting the public know where
P1WiMAX has coverage, but it is also increase the convenience of the product. Users will easily
have access to easy reloads and be able to use the service whenever and wherever they need it. As
convenience increases, so does the attractiveness. Outlets that carry the prepaid cards will have a
large bright purple sticker bearing the words “P1WiMAX available here (name of place)”. As the
P1 WiMAX coverage increases, so does the number of 7-11 outlets carrying the reloads. This will
help build the brand as it will reinforce the message of convenience and “Anytime, Anywhere” as
explained below because there are so many 7-11 outlets and they are opened 24 hours daily. As
this message sinks in, the public will begin to know about Wiggy as well as consider it when they
want to choose a portable broadband service provider.
5.3 Advertising
An advertising campaign based using a unique selling proposition (USP) message is how
this product will be conveyed. The unique proposition will be based around the portability
attribute of our product. Portability is clearly the aspect of P1WiMax that differentiates it from
the competition, and as it has been identified P1WiMax are in a ‘Build to Invest’ stage, our
campaign should emphasise our strengths.
27
P1 WiMAX Marketing Planning and Implementation
The advertising campaign will feature three conventional forms of media, Television,
Newspapers and Magazines. The print ads will feature in Newspapers such as The Star, News
Strait Times, Berita Harian and Sin Chew Jit Poh. The television ads will be shown on free-to-air
television channels as to gain maximum exposure.
The ads will use both rational and emotional techniques, with rational being the dominant
technique. The main execution will be a demonstration type feel, showing the product working in
different areas. Utilising demonstration on a television ad is hugely beneficial as demonstration
“is the strongest technique for television as ‘seeing is believing” (Belch et al., 2009). The passive
tone in the advertisement will be humour, lightening the ad, making it more appealing to the
target market.
The ads that will be shown on television will carry over to the print ads, keeping a
cohesive message throughout the campaign. Screenshots from the television ads will form the
basis of the print ads, with the print ads containing more specific information to set them apart.
The mediums are chosen because they have large reach and the target audience is aligned with the
chosen target market for this promotion, students and young working adults.
5.3.1 Television
The television ads will be heavily focused on visuals, with only slight inaudible audio
tunes ringing in the background. There will be no words spoken until the end message. The
visuals in the commercial will show Malaysians enjoying wireless broadband internet access in
different areas around Malaysia where P1WiMax enjoy coverage. Six places have been singled
out for the purpose of this commercial; The Petronas Towers, Petaling Street (Chinatown),
Bangsar, Butterworth, Batu Caves and Sunway Pyramid. The rationale behind this is clear,
anywhere, anytime. By showing places in and around the city centre appeals greatly to the target
market because they see coverage is wide. The shot in Butterworth shows the expansion
P1WiMax are making into more regional centres.
The commercial opens with a shot of two people, a boy and a girl in their late teens holding
hands. The setting in this first shot is Bangsar. The boy has a negative body position and looks
unhappy, whilst the girl is dragging him into what appears to be another Bangsar clothing
boutique. As the girl goes into the boutique, the boy finds a place to sit, takes his computer out
and starts using the internet, at this point his body position relaxes and a smile spreads over his
face. This scene is meant to be taken lightly, and is the humorous opening of the advertisement.
The opening scene lasts for approximately 10 seconds. From there, 5 other short scenes are
flashed up in sequence:
28
P1 WiMAX Marketing Planning and Implementation
A business woman dressed appropriately sitting outside the Petronas Towers near
the fountains, on her computer, with an upward facing panning shot from bottom-
up.
A man in the middle of Petaling Street with his notebook. A birdseye angle with
the man in the centre, where the camera quickly spirals down to him.
A woman sitting at Batu Caves on her computer enjoying internet access.
A man sitting near a jetty with a sign behind him stating ‘Butterworth’ during the
sunset, with a carefree look on his face whilst he is on his computer.
A young adult woman sitting outside Sunway Pyramid on her computer, with the
Pyramid Lion distinctly visible in the background.
Each of the 5 short scenes would not go longer than 3 seconds. All computers used will be
equipped with P1WiMax laptop skins to establish the brand image. The commercial then winds
up with a black screen with a voice-over stating the tag-line. Which for this purpose will be
‘Anywhere-Anytime’.
5.3.2 Magazines/Newspapers
As stated previously, the printed ads will keep in cohesion with the television
commercials. There will be six varieties of printed ads, comprising one screenshot taken from
each of the six scenes in the television commercial. The ability to convey the same message as
the television commercials is a luxury not often afforded. The message being wherever you are, if
you’re with ‘Wiggy’ you will be able to connect to the internet. By showing the six various
characters with their respective backgrounds the message still reaches the audience. To give each
character a personal feel, and enable the audience to gain more of a connection with the
characters, a tagline on each ad will feature the; name, age, profession and location. For example:
David, 18. Student. Bangsar
These print ads, in combination with the television commercials are intended to form a
connection with the audience. The three mediums of media working in tandem are able to realise
different advantages. The magazine print ads are at a higher quality, and can feature more
information, it also has a greater sense of longevity. The Newspaper print ads are low cost, high
coverage and can be placed in appropriate places like the technology section. Finally the
television commercial enjoys mass coverage, with greater impact and high reach.
29
P1 WiMAX Marketing Planning and Implementation
6.0Budgeting6.1 Newspaper Advertising
P1 wimax advertises its products in The Star, News Strait Times (NST), Berita Harian
(Malay) and Sin Chew (Chinese) newspaper for three months.
The advertisement will be published in The Star on Tuesday with 6 insertions and
Saturday as well as Sunday with 12 insertions respectively. For Tuesday, the ads will be half a
page in color (4col x 26cm) with RM33, 917.60 per insertion. For Saturday, the ads will be full
page in color (8col x 26cm) with RM48, 635.20 per insertion. For Sunday, the ads will also be the
same as Saturday but slightly more expensive with RM51, 635.20 per insertions.
The advertisement, half a page in color (4col x 12.9cm) will be published in NST on the
weekdays with 26 insertions, RM15, 460.80 per insertion. It is the same for Berita Harian but
slightly more expensive, RM16, 115.60 per insertion.
As for Sin Chew, the advertisement will be half a page in color (5col x 53cm), published
on every weekends, Saturday and Sunday for 3 months. That amount to 24 insertions, with
RM44, 075.00 per insertion.
6.2 Television Advertising
Besides, P1 wimax is promoting their products through television (Astro Ria, AXN and
Channel V). The advertisement on the products will take about 20 seconds and advertised once
daily. Astro Ria (zone B) cost RM4, 000.00 x 90 days, gives a total of RM360, 000.00. AXN cost
RM4, 800.00 x 90 days, gives a total of RM432, 000.00. Channel V cost RM2, 400.00 x 90 days,
gives a total of RM216, 000.00. The total cost for the three channels is RM1, 008, 000.00.
6.3 Road Show
Budget for Road Show
Quantity Unit Price (RM) Total Cost
wiggy car 3 100 $300.00
laptop 6 2000 $12,000.00
Uniform 100 10 $1,000.00
banner 5 100 $500.00
brochure 100000 0.5 $50,000.00
flyer 200000 0.05 $10,000.00
bantings 20 80 $1,600.00
30
P1 WiMAX Marketing Planning and Implementation
tables 4 15 $60.00
chairs 8 8 $64.00
Mouse 3000 5 $15,000.00
Mugs 3000 4 $12,000.00
Pendrive 2400 12 $28,800.00
Landyards 15000 0.5 $7,500.00
Staff Salary 480 80 $38,400.00
Lodging 6 500 $3,000.00
Petrol $8,700.00
$188,924.00
The 3 months road shows will be divided into two categories. The first category will be
aiming at all the college and universities in Kuala Lumpur and Selangor and the second category
will be aiming at shopping centers in towns and city that has P1Wimax coverage throughout
peninsula Malaysia.
Road shows in colleges and University will held on every Monday and Thursday and will
be done in two teams. Each team consists of five members with three laptops travelling in one
Wiggy Mobile. Each team will also be bringing 800 brochures, 1500 flyers, 5 buntings and 2
banners, 2tables and 4 chairs together to organize the road show at each college. The teams will
cover two colleges per day, 4 colleges per week. The budget for the individual road show is as
below. They will also be bringing gift that consist of 30 PC mouse, 30 mugs, 20 pendrives and
200 lanyards to be given out to the subscribers as well as potential prospects.
Road shows in shopping centers will be done every Weekend (Friday, Saturday and
Sunday) for 12 weeks all around peninsula Malaysia. There will only be one team for each
weekend with the road show will be held three days at the same place. The team will consist of
10 staffs with seven laptops travelling in three Wiggy Mobile. Each team will also be bringing
4500 brochures, 9000 flyers, 15 buntings and 4 banners, 4 tables and 8 chairs together to organize
the road show at the allocated shopping center. There will be 6 weekend road show in Kuala
Lumpur and Selangor and another 6 weekend road shows in other states in peninsula Malaysia.
They will also be bringing gift that consist of 130 PC mouse, 130 mugs, 120 pendrives and 450
lanyards to be given out to the subscribers as well as potential prospects.
6.4 Promotion of Service Availability in F&B outlets
P1 will cover all the cost of installation, equipment and monthly charges for the selected F&B
outlets. The F&B outlets will not have to bare any cost by having P1 Black Box in their restaurant
31
P1 WiMAX Marketing Planning and Implementation
.
Service Availability in F&B Outlets
Quantity Unit Price (RM)
Total Cost
(RM)
Black Box 50 80 4,000.00
Month Charges estimated 150 159 23,850.00
27,850.00
6.5 Student Package Promotion
The budget below is for the new launch student package that comes together with various
gift based on first come first serve basis in all P1Wimax sales counter nationwide.
Student Promotion Package
Quantity Unit Price (RM) Total Cost (RM)
brochure 100000 0.5 50,000.00
flyer 200000 0.05 10,000.00
Mouse 10000 5 50,000.00
Mugs 15000 4 60,000.00
Pendrive 8000 12 96,000.00
Landyards 200000 0.5 100,000.00
366,000.00
6.6 Place Promotion
The P1 prepaid reload cards will be distributed in chosen 7-11 located in city centers and
towns that have P1 coverage. The three months campaign period will be the trial period for the
plan. There will be limited 7-11 outlets that carry the prepaid cards. The cost incurred will be as
below.
Prepaid Plan
Quantity Unit Price (RM)
Total Cost
(RM)
Cost for Prepaid Cards 200,000 0.05 10,000.00
Commission for Prepaid Cards 200,000 0.2 40,000.00
(Refer to Appendix L) 50,000.00
32
P1 WiMAX Marketing Planning and Implementation
7.0 Implementation
WHEN WHAT & HOW WHERE WHY WHO BUDGET
During the 3 months duration as per scheduled in the Gantt chart
Road show in shopping malls and private educational institutions- speed test
challenge- stability test
(online games)
- lucky draw- give lanyard- introduce
student packages; give mouse pads, flyers, mugs
1 Utama, Sunway Pyramid, KLCC, Sg. Wang Plaza, Mid Valley, Low Yat Plaza
Kuantan Parade Dataran Shahbandar Jusco Ipoh Queensbay Mall Johor Bahru City Square Kedah Central Square Sunway University College, Monash
University Malaysia, SeGi College, The One Academy, colleges in SS15, Taylors College, HELP Institute, IACT College, MMU, Olympia College, Utar, Unitar, KDU, KBU, UniKL, UITM, TarC, Mahsa College, International Medical Uni, International Islamic College, Institute of Public Relations, New Era College, Nottingham University, Telekom College, Technology Park College, College of Arts NIIT Malaysia, Pernas Hotel School, UniTen, Institute of Management, INTI PJ, SeGi Damansara, HELP Insitute Setapak, Sedaya College, Ikram College, Stamford College, Informatic Training Center, The Otomotif College, Taylors Hartamas,
Increase brand awareness
Introduce student packages
Generate sales Allows users a
first hand experience of the Wiggy
Reach the new target segment, student
Event manager
Road show crew e.g. promoters
RM 166,724.00
33
P1 WiMAX Marketing Planning and Implementation
Lim Kok Wing, MMU, MSU, Intech College, RIMA College, German Malaysia Institute
TV advertisements Introduce the
“Anywhere-Anytime” concept
Channel V Astro Ria AXN
Increase brand awareness
Introduce the “Anytime, Anywhere” concept
Build the P1WiMAX brand & Wiggy
P1WiMAX media director
Advertising company
RM 1, 008, 000.00
Newspaper advertisements
Introduce the “Anywhere-Anytime” concept
News Strait Times The Star Berita Harian Sin Chew Jit Poh
Increase brand awareness
Introduce the “Anytime, Anywhere” concept
Build the P1WiMAX brand & Wiggy
P1WiMAX creative director
Advertising company
RM 2, 518, 072.80
Prepaid cards availability in 7-11 outlets
Johor Bahru Kuala Lumpur Selangor Penang
Increase likeability & convenience which generates sales
Increase distribution and reach
7-11 staff RM 50,000.00
WiMAX service availability in
Starbucks & Old Town cafes under coverage in Penang, KL, Selangor,
Increase awareness
F&B outlet managers
RM 27, 850.00
34
P1 WiMAX Marketing Planning and Implementation
F&B outlets Johor, Pahang, Terengganu Demonstrate service’s stability
Prompt for sales through first hand experience
P1WiMAX technicians
Student package Introduced during the road show Available at all P1WiMAX sales
counters
Increase market share by 10% in the new target segment, students
Capture the new, untapped market
P1WiMAX marketing department
P1WiMAX promoters
RM 366, 000.00
TOTAL RM 4,191,646.80
Refer to the Gantt chart in Appendix M for the scheduling of the marketing campaign.
35
Marketing Planning and Implementation- P1 WiMAX
8.0 Evaluation & controlWhat is to be
measured
How is it to be
measured
Data source When is it to be
measured?
Brand awareness Brand recall? Interviews
/ surveys
External Concurrently
Sales Subscriptions Internal sales data Quarterly
Customer satisfaction Repurchase/
Cancellation
Internal data Yearly
Position in the
industry
Market share among
direct competitors
Trade publications Yearly
Campaign
effectivenessReturn on invested
capital (ROIC) for a
single time period
Internal dataUpon campaign
implementation
completion
Brand awareness
Brand awareness is important as it shows how well the brand is remembered and can also indicate
if the brand is the first thing thought of when a particular industry is mentioned
This is measured for P1WiMAX as it is relatively new in the industry and brand awareness
increase is one of the goals and objectives for the campaign.
Brand recall is carried out concurrently as low brand recall will indicate that the aggressiveness of
the campaign has to be increased
Focus groups, interviews and short surveys will be carried out in all major shopping malls and
private educational institutions in order to determine if the target segment, students have high
brand recall of P1WiMAX.
Sales
Sales of a product or service are measured as an indicator of the likeability and effectiveness of a
product and its advertising campaign.
The number of sales is collected quarterly internally and will indicate if the promotional efforts
for the Wiggy need to be more aggressive.
36
Marketing Planning and Implementation- P1 WiMAX
Customer satisfaction
Customer satisfaction is used in order to indicate if the expectations of the customers towards the
Wiggy based on he advertising and promotion is met.
In the event that there is a gap between the customers’ expectations and satisfaction of the Wiggy
exists, either the marketing efforts or the Wiggy has to be altered and adapted in order to close the
gap.
The information is collected on a yearly basis by judging based on the repurchase or cancellation
of the Wiggy service. High contract renewal or low cancellation rates will indicate that the gap is
relatively low. However, in order to maximize effectiveness, a short survey is also conducted at
the same time.
Position in the industry
The current position in the industry will show if P1WiMAX has managed to protect its market
leader status or not.
In order to measure this, P1WiMAX’s market share in the WiMax and broadband industry is
measured. This is chosen as it not only shows where P1WiMAX is standing in the industry but
also if the campaign has been effective in generating sales.
P1 WiMAX’s market share can be measured by comparing the number of P1WiMAX’s
subscribers to the amount of WiMAX and broadband subscribers in the local industry
No. of P1WiMAX subscribers / total no. of subscribers in Malaysia
Campaign effectiveness
The effectiveness of a campaign is measured after the entire campaign has been carried out. A
time frame 3 months is allotted before effectiveness is measured in order to see the impact of the
campaign. The effectiveness is measured to determine if the right approach to advertising and
promoting the Wiggy is taken. In the event that the measurement is low, a new approach will
have to be taken and the campaign ideas can no longer be used for further promotion after the 3-
month campaign.
Return on invested capital (ROIC) shows how well a company uses the finances given in order to
generate returns (McClure, n.d.). This will basically show how effective the campaign has been in
reeling in subscribers given the amount spent on promoting the Wiggy.
37
Net Operating Earnings before Interest & Amortization Charges, but after Cash Taxes
Total Assets – Excess Cash – Non-Interest-Bearing Current Liabilities
ROIC for a single time period =
Source: valuebasedmanagement.net, 2009
Marketing Planning and Implementation- P1 WiMAX
9.0 Contingency Plan
9.1 Contingency Plan 1
The road shows might face times when the allocated destination for the day happens to have unstable connection or even connection down. If this occurs, the road show will not be able to carry out and it will also portray a negative image on P1Wimax to the prospects.
In situation like above, the road show will be move to other destinations that has good coverage. During every road show, the crew will be given a set of destinations as a backup destination. In order to avoid allowing the prospect to know of the situation, as soon as crew members are alerted unstable connection in that area, one Wiggy mobile will leave with the laptops to check out the connection of other destinations that was provided. The rest of the crew will continue the road show only with the flyers and brochures to attract prospected to learn more about P1Wimax. Lanyards will be given out to the prospect that shows great interest in subscribing P1. The prospects will only perceived that P1 crew is there only to give out flyers and brochures, thus minimizing the negative impression of the people towards P1. As soon as the crews in the Wiggy mobile are able to allocate a destination that has stable connection, the rest of the crew will than migrate and join together to run the full road show with all the programs align.
9.2 Contingency Plan 2
The risk of failure in the proposed strategies and tactics is that the road show crews may face problems such as road accidents when they are travelling outstation to promote P1Wimax. Travelling far, from states to states every weekend throughout the 3 months campaign could be quite tiring and there is a high possibility that the crews might get into accidents.
In preparing for situation like above, the P1Wimax must have a group of crews that constantly stand by to take over in case of emergency. If the road crews got into accident, the stand by crews will be immediately informed and given a brief by the P1 Company and head straight to the selected destination. Also, P1 would have to contact the selected destination (shopping mall or university) to inform the situation and the fact that they might not be on time to carry out the road show event as scheduled earlier. Although the stand by crews might reach much later but the event is still going to be carried out as planned in the marketing campaign. In this way, the customers or prospects that are looking forward to that event would not be disappointed or have a bad impression on P1Wima
38
Marketing Planning and Implementation- P1 WiMAX
Reference ListBelch, G. E., Belch, M. A., Kerr, G. & Powell, I. (2009) Advertising and Promotion: An Integrated
Marketing Communication Perspective. McGraw-Hill.
Business Monitor International. (2008). Malaysia Information Technology Report Q3 2008. Northamptonshire, UK: Vertical Edge Ltd.
Caroline, Y. (2008 , May 15). Malaysia’s First WiMAX License Holder, Packet One Networks, Enhances WiMAX Launch Readiness . Oracle Press Release .
cglow. (2008, October 1). P1 WIMAX (W1MAX) 1.2MB vs TMNet Streamyx 1MB Review. cglow.com .
Chin, F. (2002). Segmenting Customer Brand Preference: Demographic or Psychographic? Journal of Product & Brand Management , 11(4), 249-268.
D, R., & P., S. (n.d.).
GMID. (2009, July 19). Global Market International Database. Retrieved September 1, 2009, from Euromonitor International: http://www.portal.euromonitor.com.ezproxy.lib.monash.edu.au/passport/ResultsList.aspx
Kotler, P. B. (2007). Marketing 7th ed . Frenchs Forest, NSW: Pearson Education Australia.
Loh. (2009, July 30). WiMAX licences warned to use or lose it. . Retrieved September 3rd, 2009, from The Star Online: http://thestar.com.my/news/story.asp?file=/2009/7/30/nation/20090730144154&sec=nation
McClure, B. (n.d.) Spot Quality With ROIC, Retrieved 26th September 2009 from Investopedia’s website: http://www.investopedia.com/articles/fundamental/03/050603.asp
MIER. (2009, June). Malaysian Economic Outlook. Malaysian Economic Outlook Q22009 .
Orth, R. M. (2004). Promoting brand benefits: the role of Consumer psychographics and lifestyle. Journal of Consumer Marketing , 21(2), 97-108.
P1 WiMAX Malaysia. (2008). Retrieved August 30, 2009, from P1 WiMAX: http://www.p1.com.my/aboutus/aboutus_whoweare.aspx
Reed, P. (2007). Stratergic Parketing Planning 2nd Edition. Australia: Thomason Nelson.
Rouach, D., & Santi, P. (2001). Competitive intellengence adds value: five intelligent attitude . European Management Journal , 19(5) 52-59.
Schiffman, L. B. (2008). Consumer behaviour 4th ed . NewSouth Wales: Pearson Education.
39
Marketing Planning and Implementation- P1 WiMAX
Tan, D. (2009). Packet One invests RM30mil in WiMAX broadband. Kuala Lumpur: The Star Online.
The Star Online. (2009). Wiggy On the Go. Retrieved August 30, 2009, from The Star Online: www.thestar.com.my/
Value Based Management (2009), ROIC – Return on Invested Capital, Retrieved 26th September 2009 from Value Based Management’s website http://www.valuebasedmanagement.net/methods_roic.html
Vlachos, S. E. (2006). Broadband penetration and broadband competition: evidence and analysis in the EU market. Emerald Group Publishing Limited , VOL. 8 NO. 6 2006.
Whelan, P. (2009, August). Export Developement Canada. Retrieved August 29th, 2009, from Export Developement Canada: http://www.edc.ca/english/docs/gmalaysia_e.pdf
Yu, C. (2008). Malaysia’s First WiMAX License Holder, Packet One Networks, Enhances WiMAX Launch Readiness . California, United States : Oracle .
Zoldan, A. (2009, September 2). Packet One Networks (P1) Bullish On Wimax in Malaysia.
40