marketing planning and implementation- p1wimax

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

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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

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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.

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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

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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

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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

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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)

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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

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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

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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

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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.

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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

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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).

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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)

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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).

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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

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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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


.

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

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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


Lim Kok Wing, MMU, MSU, Intech College, RIMA College, German Malaysia Institute

TV advertisements Introduce the

“Anywhere-Anytime” concept

Channel V Astro Ria AXN


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


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

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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


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


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


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