SWOT Analysis of Axiata Group Berhad with USP, Competition, STP (Segmentation, Targeting,

Positioning) - Marketing Analysis

Axiata Group Berhad

Parent Company

Axiata Group

Category

Communication Equipment

Sector

Industrial Products

Tagline/ Slogan

Advancing Asia

USP

Axiata takes different strategies and brands to capture different markets throughout Asia

STP

Segment

Mobile telephony companies, carriers, service providers and

enterprises

Target Group

Telecom Companies, IT firms, Construction companies, Internet service providers , Consumer

mobile/telephony services

Positioning

Axiata is one of the largest Asian telecommunications companies

SWOT Analysis

Strengths

1. High price competitiveness in SE Asia

2. A very huge size and nearly 20,000 employees

3. Diversified into many segments

4. Line with evolution of the telecommunications market

5. Strong R&D department

6. Strong market reputation and presence in the sector

Weaknesses

1. Recent Low market share is a concern

2. Low margins in many segments

Opportunities

1. Market penetration in internet usage is increasing

2. Population growth and urbanization is increasing the demand

3. Growth in telecommunication service industry

4. IPO offerings in other countries

Threats

1. Subscriber War Business Practices

2. Smartphone war

3. Rapid changes in technolog

4. Competition throughaggressive advertising

Competition

Competitors

1.Deutsche Telekom AG

2.Maxis Communications Berhad

3.TeliaSonera

IT Infrastructure Case Study: Celcom

Axiata Bhd
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Mohd Omar
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Transcript of IT Infrastructure Case Study: Celcom Axiata Bhd

IT Infrastructure Case Study: Celcom Axiata Bhd

Introduction
Celcom Axiata Sdn Bhd, a Technology Resources Industries (TRI) Bhd company has been
the leading mobile cellular operator in Malaysia for the past 10 years. Celcom's main
business activity is to develop and market Mobile Services
Challenges and Solution
In line with market focus and positioning strategy, Celcom continue to focus on a more
sophisticated segment management, new product and services beyond voice. Thus this will
present few challenges for Celcom Axiata bhd to grow.
Issue: New Market
Diversification
Issue: Increasing amoung of data types and customers. Big Data phenomena
IT Infrastructure Component in Celcom
Celcom Axiata Bhd had roughly 500 employees in its IT department. This huge number of
people is provided with enough IT Infrastructure to perform their daily task.
Network/Telecommunications Platform
Networks platforms in Celcom Axiata bhd are:
Celcom Networking Infrastructure
TM Networking Infrastructure
Typical networking platform such as LAN, WAN, WWAN, and PAN is available throughout
the Celcom Axiata bhd offices.

Issue: Acceptance of new technology integration among employees in Celcom Axiata Bhd
Conclusion
As a conclusion, even with enough IT infrastructure within the company, it doesn't
necessarily the company can utilized it efficiently and effectively. In order to achieve
optimize performance, a lot of effort and planning must be made before integrating a new IT
infrastructure to be used in the company. Furthermore, doing a survey and asking opinions
from the employees will surely increase the acceptance of the new technology into the
company.
Company Background
Celcom started its operation as STM Cellular Communications in 1988 with Fleet Group and
Telekom Malaysia as shareholders. Celcom is part of Axiata Group, one of the largest Asian
telecommunication companies, focused on high growth low penetration emerging markets.
Organizational Chart
IT Performance
13.1 million subscribers, leading industry in subscriber base and optimizes its platform
For high speed data services Celcom rolls out 4G
Data revenue grew by 16%, Mobile Internet revenue grew strongly by 58%
Computer Hardware Platform
Celcom Axiata Bhd mainly use the computer hardware platform from the two computer
technology companies which is
Enterprise Software Application
Celcom Axiata Bhd had provided a lot of ES application in order for the employee to be
competent in their job. Such applications are:
Accounting software
Business intelligence
Business process management
Content management system (CMS)
Customer relationship management (CRM)
Database
Master data management (MDM)
Enterprise resource planning (ERP)
Enterprise asset management (EAM)
Supply chain management
Operating System Platform
Most of the laptop or desktops use in Celcom Axiata bhd is using Microsoft Windows as its
official OS and the server is using Linux as its OS
Internet Platform
Internet platform in Celcom is available in form of LAN and wireless to give the employee
ease of access to the internet to find information required for their daily tasks. Examples are:
Celcom LTE
Celcom Bluehouse wifi
Celcom Fibre
TM Internet Services
Data Management Storage
Celcom Axiata bhd had outsourced its Database Management Storage to Oracle as one of the
largest database company in the world. Although Oracle is hired as a vendor, the data itself
still belongs to Celcom Axiata Bhd.
Consulting and System Integration System
Several IT companies had been hired by Celcom Axiata Bhd to develop its system integration
between all system across Celcom. These vendors are:
TCS
Huawei
Accenture
Oracle
Issue: Technology advancement
Cost for new technology and maintaining existing technology surely will affect the budget of
Celcom Axiata bhd. Beside money, time is also consider one of the cost need to be expanded
in order to integrate new technology in the company.
Solution
Board of Directors should take initiatives and come up with 5 years or 10 years strategic plan
for implementing IT technology in the company. Technology that give better ROI should be
prioritized and implement at the earlies stage.
Challenges
Investing in new market will pose a serious challenges for a company that is not expert in it.
In addition, there also competition in the new market from the older company that already
well established in the particular market.
Solution
Celcom Axiata bhd must established a special department in order to investigate and research
about the new market that they want to diversification in. With enough information, Celcom
Axiata should invest in the market that provide the most benefit to the company.
Challenges
With increasing amount of customers, the data for each of the customer activities will
increase. Each new products introduce by Celcom Axiata bhd will also contribute in the
increasing number of data need to be stored.
Solution
Celcom Axiata bhd should look into implementing the Big Data technology in order to cater
to the problem. In addtion investing on cloud server might mitigate the problem in a short
term solution.
Challenges
There will be always resistent when a change is made. Implementing a new and unfamiliar
technology to be used by the employees will pose a problem to the company since the
employees need to adapt to the new technology in order to do their daily task.
Solution
Provide a clear instructions and guide on how to use the new technology. Beside that,
provided training for the employees so that they can adapt with the new technology. Doing a
feasible study before implementing the new technology will also help with the acceptance of
the new technology into the company.
Based on Jim Harvey's speech structures

Axiata Draws Strength From

Overseas Strategy
By
ELFFIE CHEW
Updated Aug. 10, 2010 2:56 p.m. ET

Axiata Group Bhd.'s earnings were dented by steep foreign-exchange losses in 2008, but the
company, Malaysia's biggest mobile-phone operator by revenue, has emerged poised to post
strong earnings in the current year, boosted by contributions from its overseas operations.
Formed in 2007 after a demerger from state-owned fixed-line operator Telekom Malaysia
Bhd., Axiata aims to be among the top three telecommunications companies in Asia in terms
of market value by 2015.

ENLARGE

Axiata's Chief Executive Jamaludin Ibrahim says the Malaysian mobile-phone operator is focusing on
organic growth rather than acquisitions. BLOOMBERG NEWS

When Jamaludin Ibrahim came on board as Axiata's chief executive at the end of 2008, he
commissioned a companywide efficiency study, comparing the company on every level with
"the best of the best in the telco industry." Armed with the findings, Mr. Jamaludin launched
a cost-management program that has cut procurement costs and improved network
efficiencies since 2009.

With more than 120 million subscribers across 10 countries, Axiata has a strong presence in
Malaysia, Indonesia, Bangladesh and Sri Lanka. But it is looking to divest itself of operations
in Thailand and Iran and concentrate on growth areas in Asia. Mr. Jamaludin spoke with
Elffie Chew at the company's headquarters in Kuala Lumpur to discuss the company's
outlook and strategy. The following is an edited version of the interview.

WSJ: What is your vision for Axiata given the changing landscape in the global
telecommunications industry and what do you need to do to achieve this goal?
Mr. Jamaludin: The last two years saw the group consolidating, enhancing the foundation
and creating a new and distinct company. Moving forward requires looking at new revenue
growth areas, especially mobile data and broadband, new ways of doing business, especially
in network areas, and product development. Demand for data is growing and we need to be
more efficient with minutes and bandwidth.
WSJ: What will be your funding requirements over the next few years for the various
markets and will there be a need to raise more cash in the foreseeable future?
Mr. Jamaludin: Key operations have turned free-cash-flow positive, with units XL Axiata
and Axiata Bangladesh Ltd. heading in the right direction. Leverage ratios for the group have
decreased over the last two years with net debt [and earnings before interest, taxes,
depreciation and amortization] as of the end 2009 at two times.
Advertisement

WSJ: Some analysts reckon that your funding needs—especially for India, where Idea
Cellular Ltd. Is based—may weigh further on your gearing. What steps, if any, have you
taken to address this potential weakness?

ENLARGE

XL Axiata staff serve customers at a Jakarta service center earlier this year. REUTERS

Mr. Jamaludin: [Shareholders of Idea Cellular] have the ability to raise funds themselves.
We remain supportive of Idea as a strategic market in our portfolio. We have a long-term
view of Idea which remains intact. There is lots of upside in this fast-growing market, with
short-term pressure but long-term gains.
WSJ: What is the Ebitda margin for each of the markets you operate in and which markets
will probably see stronger margin erosion?
Mr. Jamaludin: First-quarter margin for Malaysian unit Celcom was 45%, Indonesian unit
XL, 51%, Sri Lanka's Dialog, 34% and Bangladesh's Robi, 26%. As a group, margin
pressures are inevitable. We want to ensure Ebitda growth outpaces revenue growth. So far,
Celcom and XL have performed particularly well, under intense market competition. We are
looking at maintaining or improving margins through our cost-management program and
efficiency.
WSJ: Are you looking at more acquisitions to build your business?
Mr. Jamaludin: We evaluate all strategic opportunities. However, our strategy is to focus on
organic growth as we are not footprint-driven.
WSJ: Would China be a country that you would look at in the foreseeable future?
Mr. Jamaludin: No. The market is closed and there are no new licenses. Even if it opens up,
China won't be in our radar as the country already has two very established players [China
Mobile Ltd. and China Unicom (Hong Kong) Ltd.].
WSJ: What will be your main priorities for this year and next?
Mr. Jamaludin: Our first-quarter results showed strong signs of sustainability. We are
looking to maintain that while strengthening the foundations for future growth. This includes
maintaining our lead in mobile broadband in Malaysia and growing it in other markets. We
will also be strengthening our management team and will ensure that the talent pipeline is
strong. All the puzzle pieces must be in place to ensure sustainable growth.
WSJ: You have mentioned earlier paying a maiden dividend to shareholders when your
financial position strengthens. Is the company in a strong position this year, and will you pay
a dividend?
Mr. Jamaludin: We are in a good position to consider dividends. Our dividend policy will
be announced sometime in the third quarter.
WSJ: Analyst estimates for Axiata's net profit is 2.02 billion ringgit ($643 million) this year,
up from 1.65 billion ringgit in 2009. Some analysts think you may be able to surpass this
estimate given the strong showing from your overseas operations. Is that possible?
Mr. Jamaludin: We don't provide guidance for profits. We are constantly working toward
improving profitability and performance. We are on track to meet our key headline targets of
12.1% growth in revenue, 14.2% growth in Ebitda and return on invested capital of 10.7%.

Celcom Malaysia: Company Analysis by - Iloka

Benneth Chiemelie
Iloka Benneth Reply 09:07 A+ A-

EXECUTIVE SUMMARY

In this project, we choose Celcom as our company and U-verse as the new telecommunication service
which we are going to design a marketing plan for. The marketing plan is designed using Phillip
Kottler’s Method.
The assignment is goes into detail, about the company, the new products and the marketing strategies
to be implemented. This strategies are based on our proper understanding of the marketing mix,
cognitive marketing implementation and financial.
A swot analysis is of the company, shows their weakness and threats as well as revealing the
opportunities and strengths the company need to take advantage of. The ending section of the project
shows how these strategies would be carried out through our controls and implementation.
The project was based on essential researches, which we combined to design the informal marketing
plan for the above mentioned company. It is a challenge we couldn’t afford to lose that is why we had
to go deeper into understanding what marketing plan is all about and how they are implemented.
The conclusion is a summary of the whole project and references shows guides for further reading.
The whole project is general designed to teach new user about marketing plan and how this strategies
are implemented, that is own main reason for using clear and simple language to aid easy
understanding. Important issues are either highlighted or bolded throughout the whole project to aid
faster display of key information.
COMPANY PROFILE

Type public (privatised)

Founded 1988
Headquarters 82 Jalan Raja Muda Abdul Aziz
53100 Kuala Lumpur, Malaysia
CEO Datuk Seri Shazzalli Ramly
Industry Mobile Telecommunication Services
Products 2G, 3G and satellite mobile network computer
Website www.celcom.com.my
1.1 INTRODUCTION
1988 witnessed the dynamic birth of celcom, a leading mobile telecommunications provider in
Malaysia. Since its inception, celcom has steadily made its presence felt in the Malaysian market. It
has, always continued to spread its wings and is undeterred by the dynamic nature of the mobile
communication industry.
Our brand vision is about pleasing our customers and exceeding their expectation. It is our company’s
goal to empower the customers with choices and innovative solutions that will give them greater
control and freedom to live it to the fullest. (Dato’ Sri Jamaludin Ibrahim, C.E.O, celcom)
Setting up a team of quality directors and staffs, has transited celcom from first-generations to second-
generation market leaders. For celcom, communication is a serious business. This is why we have
mainly products and service geared toward maintaining business voices. This products and services
includes business prepaid plan, business supplementary plan, business post-paid plan and business
satellite. A major challenge facing celcom is how to increase profit and maintain their competitive
advantage in the Malaysian market. (Celcom Official Website, 2009)
An evaluation of the company’s internal strength and weakness and external threats and
opportunities served as the foundation for this strategic marketing plan. The plan focuses on the
company’s growth, strategic analysis suggesting ways in which it can build on existing customer
relationship and launching of the new product and/ or services targeted to specific customer niche.
Our new marketing focus, made explicit in this plan, renews our vision and strategic focus on adding
value to our target market segments, the small business and high-end home office users, in our local
market.
This is a sample planned market sale for the first three months of introduction to the market.

2.0 BUSINESS MISSION AND VISION

 To delight our customers.

 To build a profitable enterprise that maximizes investors return.
 To empower, develop and reward our people, to become Malaysia’s preferred employer.
 To build win-win relationship with all our business partners, based on mutual trust, respect and support
 To work to bridge the digital divide, to build our nation and to enhance its standing abroad.
 To maintain the highest levels of transparency, integrity and professionalism.
Together with all our stakeholders, we will make Celcom Malaysia a premium brand: a brand that
symbolizes the spirit of freedom, aspiration, confidence, dynamism, timelessness, universality and
globalism. (Celcom Official Website, 2009)
2.0.1 SITUATIONAL ANALYSIS
In business for twenty years, celcom was founded as a telecommunications service provider and has
evolved into high quality telecommunications provider across the Malaysian market. Dato’ Sri
Jamaludin Ibrahim was appointed as director/chairman of celcom (Malaysia) berhad on 25 April 2008.
He is currently the president and group chief executive officer of Axiata group berhad (formerly known
as Tm International Berhad). (Celcom Official Website, 2009)
2.1 MARKET SUMMARY
2.1.1 COMPETITIVE FORCE
Celcom’s competition especially in advertising industry is very strong both on local, regional and
national level, making Celcom the market leader in Malaysia. Following the sales strategy developed
by their local rivals, celcom Malaysia has improved their competitive level, through developing many
telecommunications feature, providing quality services at considerable price. The competition in the
telecommunication industry is very high with the latest introduction of a new telecommunications
service provider (U-mobile). Celcom has reduced the cost of sms from 50 cent to 25 cent and reduced
the cost of call from 35 cent to 20 cent per minute. Many other competitive measures are expected
to enter the market soon as well. (Williams & Ferrell 1997, p.600)
2.1.2 BARRIERS TO ENTRY
Basically in Malaysia, telecommunication service is not an oligopolistic business. There is full freedom
of entry once the company have meet up with the requirements and is ready to fulfil the government
obligations. There are many telecommunications service providers in Malaysia, ranging from local
service providers to international service providers. This makes the industry a purely competitive
market. Nevertheless, celcom has understood the need to make customers satisfied and providing not
just what they need today, but what they will need in the future. Through advancing technology, they
have made it difficult for small companies to enter the market, thereby, creating barrier to entry for
other small companies. (Williams & Ferrell 1997, p.600)
2.1.3 BUYING POWER (CUSTOMER)
In today’s society, consumers have less time for work and leisure. The hallmark characteristics for
today’s product are convenience and ease-of-use. In fact, if the product does not save time and is not
easy to use, customers will simply ignore it. Such is the same for Malaysian market. The customer’s
ideology of “quality service – less price” is still the ruling key to purchase. Understanding this is basics
in every industry. Have been provided with many choices, the consumers in Malaysia normally go for
the best service that offers the least price. (Williams & Ferrell 1997, p.600)
2.1.4 PURCHASING POWER (SUPPLIER)
Technology plays the most important role in this sector of the Malaysian market. Manufacturers
understand the consequences of delayed supply, or insufficient supply when the demand and market
price is high. This is why they make use of the best technology available to provide quality service to
their customers. Many suppliers in Malaysia are more capital oriented than service oriented. This
means that they can only provide you with the best for the highest cost that is a “more-for-more”
marketing strategy.
This makes the purchasing power to be vested more on the hand of the market leaders, and this is
another competitive advantage celcom has over its competitors in the Malaysian market. (Williams &
Ferrell 1997, p.600)
2.1.5 POLITICAL FORCES
There are no expected political influences or events that could affect the operation of celcom in
Malaysia. This is because; celcom is a registered company and functions under company provisions
Act of the Malaysian law. But as a company in Malaysia, they have to function under the directions of
the Act
2.1.6 TECHNOLOGICAL FORCES
Celcom currently offers the best broadband network in Malaysia. Technology is the fastest growing
market trend nowadays. To maintain their position as market leader, celcom has enhanced their
products technologically to keep the Malaysian telecommunications updated with ever technological
advancement. (Williams & Ferrell 1997, p.600)
2.1.7 CURRENT MARKETING OBJECTIVES AND PERFORMANCE
Celcom sends personal sales representatives to market their products on potential customers and
create service concepts for their business or choice of order. Specifications are then sent to suppliers.
This enhances more customer loyalty and relationship with the company. Although some of the
customers do go on credit, %20 of the annual sales are obtained from this form of marketing sales and
this is designed to reach their objectives of being the market leader and providing quality services for
the customer and profit to the company in return. This is a potential advantage they have over their
competitors as well.

Celcom’s current marketing strategy to maintain customer-company relationship with

potential customer.

2.2 SWOT ANALYSIS

2.2.1 STRENGTH

 Celcom maintains a product differentiation strategy resulting from a strong market orientation, commitment to
high quality, and customization of products and services.
 There is little turnover among well-compensated employees who are liked by customers. The relatively big size of
the staff fosters communication and quick response to client’s needs.
 A long-term relationship with the primary suppliers results in shared knowledge of the product’s requirements,
adherence to quality standards, and a common vision throughout the development and production process.
 The high percentage of sales, suggest a satisfied customer base as well as positive word of mouth, which
generates new business per year.
 Being the oldest telecommunications service provider in Malaysia, has given celcom a competitive edge and
increased customer’s trust and loyalty to the brand.
2.2.2 WEAKNESS

 Celcom’s current facilities are crowded; there is little room for new employers or equipments to fit into the
company.
 Celcom is reactive rather than assertive in its marketing efforts because of its heavy reliance on customer’s
reaction for product satisfaction.
 While the staff size improves growth and communication, it also impedes commitment on the side of the staff
and lack of specialization.
 Both the product line and the client base lack diversification. Dependence on current recorder rates could bleed
complacency, invite competition, or create false sense of customer satisfaction. Development of a product that would
provide better quality service by the competitors would probably put celcom out of business.
 The non-seasonality of the products and services creates bottleneck in productivity and cash flows, places
excessive stress on the personnel and strains on the facility.
 The poor niche market could be a competitive advantage for their competitors to gain an advantage over them,
and this could lead to a dramatic decrease in customer’s loyalty.
 High cost of products and service could alter the buying power of the consumers, especially in this time of global
recession.
2.2.3 OPPORTUNITIES

 Advertisement in Malaysia alone exceeds 200 million Malaysian ringgit annually. More than 20 million ringgit is
spent on specialty advertisement which is the potential for celcom’s growth.
 Celcom is currently the Malaysian partner of Vodafone.
 Celcom is currently doing nationwide promotion using power icons like including international footballers Steven
Garrard, Michael Owen, Ryan Gigs and Robert Pires and Chinese entertainers JJ Lin and Wang Lee Hom as well as local
actress Maya Karim.
 Celcom currently has the widest 3G and HSDPA coverage in Malaysia since its launch on 17thmay, 2005.
 Celcom provides many products and services that suites different customer needs, ranging from economic,
business, and family and leisure satisfaction.
 The director and manager of the company, Dato’ Sri Jamaludin Ibrahim is currently working with the company for
the seventh year, this is different when compared with other telecommunication service providing companies and with his
full experience, he has helped guide celcom to a resting edge with quality management.
 As more and more Malaysians look for ways to keep in touch with each other, celcom’s popularity and quality
services has helped draw more customers to the company through customer relationship and brand loyalty.
2.2.4 THREATS
 Reengineering, right-sizing and outsourcing trends in management may alter traditional channel relationship with
brokers, dealers, and distributors or even lead to elimination of the channel.
 Specialty advertisement through promotional items relies on gadgetry and ideas that are new and different. As a
result, product life cycle may be quite short.
 Completion from other telecommunications service providers is strong.
 High cost of products and service would be a competitive advantage to their rivals over customers, through
implementing low cost quality products and services.
 There are no barriers of entry and this could be a great threat because it could make new fast productive
companies to come into the market and try to gain a stand of their own.
 Fast technological advancements would result in faster product life cycle, increase the need for improvement
and might result in low sale of less quality products, or products with less technological features.
2.2.5 MATCHING STRENGTH TO OPPORTUNITIES & CONVERTING WEAKNESS AND THREATS
 The acceptance of technological advances and the desire to control time creates a potential need for
technologically rich products with varieties of features.
 Celcom must modify its management hierarchy, empowering its employees through a more decentralized
marketing organization.
 Celcom should consider diversifying its product line to satisfy new market niche, as well as developing products
that are seasonal to boost sale.
 Celcom should consider surveying its current customers and its customers’ client to better understand their
needs and changing dreams.
 Have gone into partnership with Vodafone, celcom should consider establishments in its neighbouring countries,
especially the lower technologically advanced ones like Vietnam, Laos, Myanmar etc.
2.3 COMPETITION ANALYSIS
Competitors: the major competitors are Digi and Maxis respectively according to their level of threat.
2.3.1 OBJECTIVES AND STRATEGY OF DIGI
The main objectives of Digi are to become the main market leader in Malaysian market. This they have
done by implementing many marketing strategies to persuade customers. This strategy includes the
Digi family and friends, 18 cent per any local call, reward on reload according to the amount reloaded
within a month and mass advertisement.
2.3.2 STRENGTHS OF DIGI
The main strength of Digi is the market size they occupy through their extensive marketing strategy
and promotions. This has made them one of the market leaders and their service are largely
demanded across the Malaysian market.
2.3.3 WEAKNESS OF DIGI
Their main weakness is limited coverage across Malaysia and the world. For example, sometimes when
you send message to African continent with Digi, the message will not be delivered to the recipient.
2.3.4 SIZE AND TREND OF DIGI IN THE MARKET SHARES
Digi currently holds the second largest trend in the Malaysian market shares.
2.3.5 OBJECTIVES AND STRATEGY OF MAXIS
Maxis are one of the new entries into the telecommunication service providers market, and their main
objective is to get as much customers as they could. This they have down through mass advertisement,
sponsoring sports programmes, rewards to their customers and organizing shows for students and the
public at large.
2.3.6 STRENGTH OF MAXIS
Their sponsorships for sporting programming is drawing many customers attention since Malaysia is
a country vast in sporting activities
2.3.7 WEAKNESS OF MAXIS
Their services are inconsistent, due to poor and limited coverage as well as products features.
Back to top
2.3.8 CELCOM’S COMPETITIVE ADVANTAGE
Being the oldest and most experienced amongst the three, celcom has many competitive advantages
against its major rivals Digi and Maxis. They currently posses the highest trend in the market share,
giving the highest coverage, many products features and having the highest customer size in the
Malaysian market. They are applying many future strategies to maintain their position as the market
leader in the Malaysian market like niche marketing, business package development, intercontinental
and international service expansion.
2.3.9 FUTURE COMPETITIVE MEASURES
In other to maintain their current market position celcom has developed competitive measures to
fight off their rivals both at the present and in the future, this ranges from delighting their customers
with their numerous service features, developing greater customer relationship strategy,
implementing more societal marketing schemes and supporting the government. (Celcom Official
Website, 2009)
2.4 PRODUCT OFFERING BY CELCOM
Celcom provides varieties of products and service to their customer, which is why they are presently
the best in Malaysia. But we intent to launch a new product (U-verse), that lets customers, pay their
bills through phone, book online flight tickets and hotel reservations.
U-verse: this is a popular product offered by AT&T in the United States. The products allow customers
to pay their bill. Following our counter parts, in developing a cutting edge technology, we enhanced
the U-verse service into paying bills, booking flight tickets and making hotel reservation. A service
designed for both travellers and the market in general. This would be the first of its kind in South East
Asia, and it would go long to way to convince celcom customers about the company’s commitments
towards providing the best service to keep them delighted and in developing the country into a
globally connected nation with the best telecommunications service.
2.5 DISTRIBUTION
With over five thousand trade channels in Malaysia, the distribution of the service won’t be difficult.
The service (U-verse) is designed in a way that it can be automatically activated once a customer
purchases a SIM CARD, by clicking *128#, then U-verse and following the instructions, or by going to
any celcom dealer near him for activation. The distribution channel is designed in a way that it is so
efficient for customers and increases potential sales for the company. Celcom dealers can be found in
over 90 per cent of Shopping Malls, Colleges, Universities, Recreation Centres and Mega Stores across
Malaysia, making it easy for the customers to reach.
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3.0 MARKETING STRATEGY
3.1 OBJECTIVES
Celcom has been in the telecommunication business with the primary objective to keep people
connected and helping companies to market their goods and services as well as keeping them close
to their customers. Besides formulating a market-orientated and customer-focused mission
statement, celcom has established and objective to achieve cumulative growth in the next five years
with a 50 per cent net profit for the newly launched U-verse.
To accomplish these objectives, celcom has developed a benchmark for progress in three different
categories. Firstly, through using a market penetration pricing, the service will be brought to the
customers at affordable and reasonable prices. Secondly, by gaining a better understanding of the
need and satisfaction of the current customers, they will improve the service to encourage re-orders.
Finally, the service is to be able to utilize it’s current technology and knowledge base, and research as
well would be conduct on similar products with an eye towards developing the services to a speciality
advertising product.(Williams & Ferrell 1997, p. 364)
3.2 TARGET MARKET
3.2.1 TARGET MARKET 1

 large travel agencies or holiday planners

For example, travel agencies like wahtung sdn brh, can use the service to provide 24/7 travel
planning’s to their numerous customers, thereby increasing the companies ticket sales and profit.
3.2.2 TARGET MARKET 2

 Niche market of business travellers

For example, business men and women who normally use online system for their reservation will find
it easy to make reservations and flight booking by just a simple press on the button, and that would
be more convenient to travellers.
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3.2.3 TARGET MARKET 3

 Direct consumer market of hand phone user.

For example, this service can be utilized in our day to day life, like paying bills and checking account
balance, making it easier for our families by just pressing a button instead of having to go to the
company or bank to pay our bills.
3.3 POSITIONING
Celcom has since its establishment, positioned itself as the number one Malaysian network in the
Malaysia market. This they have done by providing efficient network connectivity and linking of
individuals together. Today celcom stands in the heart of every Malaysia as the telecommunication
service provider that offers a “more for more” customer satisfaction, by providing the customers with
products to keep them satisfied above their competitors and charging them more money for the
quality they yield in the products. It has made our work so easy, that by launching this service as the
first in south East Asia, it will go a long way towards convincing the present customers that celcom is
truly the number one Malaysian network, persuading the non-customers both in Malaysia, and the
neighbouring countries where celcom is currently expanding to join the leading network.
Physiologically, celcom has influenced the status of their customers, because they are considered to
be financial capable by using celcom services.
3.4 STRATEGIES
By understanding the customer’s needs, celcom has used its strength to fill the needs of the customers
more than any other telecommunications service provider in Malaysia presently. This has given them
a competitive advantage, boosted enthusiastic sale and increased more customer loyalties.
Through careful and in-dept research in the characteristics if the Malaysian market, celcom has
created distinctive target markets for its products through creating a strategic marketing mix that just
not makes the product available, but also affordable, convenient and unique at a consistent and
flexible level. This is geared towards improving new and existing products as well as profit to the
company.
3.5MARKETINGMIX
3.5.1 PRODUCT
Celcom has developed an intangible attributes to the new products, to consistently meet or exceed
customer’s expectation, enhance speedy response to customers demand and attribute anticipate new
customer needs. This will be achieved through investing in research for consumer buying behaviour
and product development. (Celcom Official Website, 2009)
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3.5.2 PRICE
With high availability of internets across the Malaysian globes, a price penetration strategy is advisable
to enhance customer’s usage, and introducing the service. On the other hand, they would use that
opportunity to increase price on improved products. Celcom should also be sensitive to the price
elasticity of its product and overall consumer demand. (Celcom Official Website, 2009)
3.5.3 DISTRIBUTION
Through gaining retailers cooperation and distribution channels across Malaysia, it would be easy for
the service to reach the targe market. The SIM PACK is light weight and would be easy to transport
huge number of the product with the service in it across Malaysian market. (Celcom Official Website,
2009)
3.5.4 PROMOTION
Through educating consumers on product improvement and creating awareness to non-consumers,
advertisement and sales promotion would be used to introduce the new service to the Malaysian
market. (Celcom Official Website, 2009)
3.6 MARKET RESEARCH
Extensive market research is to be implemented to regulate customer’s satisfaction, anticipate and
understand customer’s new need, and improve the products to either make the customers delighted
or satisfied. This marketing research comprises of two types, firstly the internal marketing research
which would be done by team employed and directed by Celcom, and secondly research paid
institutions. The result from both researches will be compared and analysed by the customer
relationship team, to find a new year of maintaining quality customer-company relationship and brand
loyalty. (Celcom Official Website, 2009)
4.0 FINANCIAL STRATEGY
4.1 CONTROL AND PERFORMANCES STANDARDS
The following performance standards and financials are suggested.

 The total budget for launching the new product, research, and customer’s survey will be equal to80 percent of
the annual promotional budget for the product introduction year.
 Each team is responsible for reporting all financial expenditures, including personnel salaries and direct expenses,
for their segment of the project. A standardized reporting form will be developed and provided by the marketing director.
 The marketing director is responsible for adherence to the project budget and will report overages to the
company president on a weekly basis. The marketing director also is responsible for any redirection of budget dollars, as
required for each project of the business analysis team.
 The new product offering would be evaluated on quarterly bases to determine its profitability. Product
development expenses will be distributed over a two year period, and will be compared with gross income generated
during the same time period.
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5.0 CONTROLS STRATEGY
5.1 IMPLEMENTATION SCHEDULE
Activities, responsibilities and time for completion: all implementation are designed to create
customer awareness and boost sales and are to begin along with the New Year on January 1 2010
 On January 1, create sales manager position along with marketing and advertising director. The marketing
director will serve as a project leader for a new business analysis team, while the advertising director will take full charge of
advertisement
 By January 18, the business analysis team will review all recommendations from the project managers.
 By January 20, develop a marketing information system to monitor client reorder patterns and consumer
satisfaction. The managers are responsible.
 By February 2, develop a plan for one year product offering along with potential customer. The business analysis
team is responsible.
 By February 5, finalize customer satisfaction for current customers.
 By February 10, implement a new product offering advertisement and sample to potential customers. The
business analysis team is responsible.
 By February 15, analyse and report the result of all customer satisfaction survey and evaluate new product
offering. The market director is responsible.
 Re-establish the objectives of the business analysis team for the New Year. The directors are responsible.
5.2 MARKET ORGANIZATION
Because the new product requires extensive commercialisation to match customers need, it is
necessary to organize the marketing function by customer groups. This will give celcom the
opportunity to focus its effort on the need and specifications of each target market. Celcom marketing
efforts will be organized around the following marketing groups: 1] manufacturing group, 2] business-
to-business group, 3] customer satisfaction group, and 4] customer relationship group. It group will
be headed by a saes manger who will report to the marketing director. Each group will have full
decision making authority and responsible for marketing the new product to the target customers
within the segment.
These changes in marketing organization, enables celcom to be more creative and flexible in meeting
customers’ need, reduce highly centralized management hierarchy and finally, give better
opportunities to monitor the activities of competitors.

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CONCLUSION
For any given organization to market any new product, marketing planning is strategy used to
coordinate a well planned product testing and launching. A well designed marketing planning ends up
bring back positive results for companies.
This project covered the main point as well as other minor strategies and implementations involved
in building a cognitive marketing plan. We designed the above marketing plan based on intensive
research and broader understanding marketing in general.
As shown above, the new product U-verse is the first of its kind in the whole of South East Asia. As
pioneers, the chances of gaining higher market shares and being the market leaders is what we looked
into, a well planned strategy has be designed to make that happen.
These strategies if implement as stated would probably bring out a well balanced positive result. The
by understanding the environmental factors and analysis the strength, weakness, opportunities and
threats of Celcom, we had the better opportunity to look into the situation as if we were their new
product managers. This gave us the chances to build a better marketing plan that if well implemented,
would bring in a positive result.
3

Opportunities = Growth in global telecommunication service industry

Celcom claims to have the widest and most extensive coveragenationwide, compared to other
cellular services in Malaysia.

Expansion of users

= Initial public offerings in other countries

Success in Sri Lanka and Pakistan

Also success in 10 other countries

Threats = Subscriber War Business Practices

To respond to user needs, the industry engaged in subscriber war business practices. Three years
ago that Celcom was still very much astruggling entity. It was on the verge of decline in terms of
revenue andsubscriber base.

= Enter the Smartphone war

Celcom CEO, Dato¶ Seri

Mohammed Shazalli Ramly said the company¶sinfrastructure can support the device but a big
hurdle to securing the iPhonedeal is the commercial terms that both parties cannot agree on.

A HTC Smartphone (left) and an Apple iPhone seen at a mobile phone shop. TheiPhone
phenomenon has revolutionized the global mobile phone industry.

STRATEGIES TO REMAIN COMPETITIVE IN THE INDUSTRYDouble its mobile broadband customer base
to one million by end- 2010

will focus on pushing its mobile broadband service to sustain its quarterly growth streak

Its primary target now is to double its mobile broadband customer base to one million byend-2010
from 475,000 in the third quarter ended September 30 2009.

In the third-generation (3G) mobile broadband space, Celcom currently leads other mobile operators
in terms of subscriber base. Maxis Bhd has fewer than 200,000subscribers as of the third quarter of
this year.

Its third quarter net profit of RM404 million is the highest quarterly net profit in itshistory.

y
They will be implementing new synergies focusing on customer touch points, humancapital and
strengthening position with renewed zest and commitment. This will be doneconcurrently with an
accelerated broadband push and continued 'smart spending' costmanagement.

Opportunities of the new telcoscape

The integration of Celcom and TM Cellular has expanded and enhanced our network, interms of
geographical coverage and network quality. In line with the strategy to providethe best network
quality to the customers, they have allocated a substantial portion of theannual capital expenditure
to improve the capacity and quality.

Long-term strategy is to expand the business beyond mobile voice communications andinto new
market segments to access new revenue streams. To meet the ever-changing andsophisticated
needs of our customers, we will continue to introduce more mobile dataservices and solutions to
keep people connected anywhere, anytime.

OPINION AND SUGGESTIONS TO IMPROVE THE OVERALL PERFORMANCE

In my opinion, Celcom have do well for their market. They also has controlling interest inmobile
operator in Asian. They got the cheapest plan for subscriber with minimum budget. Theyimprove
quite a lot in wider coverage also.I also like to suggest on Blackberry package that they offer to
users. For young adults, I believe amonthly RM50 commitment fee for voice call will suffice. Celcom
price for monthlysubscription fee at RM118,meanwhile Digi at RM108 and of course Maxis is the
expensiveabout RM200. About the Term and Condition on Blackberry Plans, I hope they will state
aclearly Term and Condition compared to Maxis. They have very detailed Term and Condition.

REFERENCES

Summary

Celcom Axiata Berhad (Celcom) is a provider of mobile communications services. It offers a broad
spectrum of prepaid and postpaid mobile services to over 13 million subscribers and mobile
broadband services to more than 1.2 million subscribers. Its communication services include SMS,
MMS, voice calls, video calls and data plans. It has deployed several technologies such as GSM,
GPRS, EDGE, 3G, HSPA, and 4G LTE across Malaysia. Celcom incorporates the broadest
network covering 95.2% of Malaysia’s population with 2G network and 82.6% of the population
with 3G. The company offers its users with roaming services spanning across 193 countries with
more than 550 network partners. The company sells smartphones and tablets from established
vendors such as Samsung, Sony, HTC, Motorola, LG, BlackBerry, and Apple. It operates as a
subsidiary of Axiata Group Berhad. Celcom is headquartered in Kuala Lumpur, Malaysia.

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