2. Introduction
• What is HUTCH?
A Hutchison Whampoa Company
A member of Hutchison Asia Telecom
Sri Lankan operation is known as Hutch
Launched its GSM service in 2004
4. Company Mission
• As the first objective to get a mobile phone into everyone’s
hand, Hutch have to address the facts ;
– “What obstacles keep a person away from having a mobile
phone?”
– “What are their problems? How can we resolve them?”
5. SWOT Analysis
• SWOT Analysis involves understanding and analyzing
strengths and weaknesses of the company and identifying
opportunities in the market place as well as threats to the
business.
Strengths Weaknesses
Opportunities Threats
6. • Strengths:
Access to affordable telephone services
Effective & strong service coverage for their customer
base
• Weaknesses:
SWOT Analysis
Incapability of introducing 4G network , yet.
Limited network coverage throughout the island
Deficiency of strong promotion strategies
7. • Opportunities:
SWOT Analysis
Have a wide range of packages, so can share the services
of each sector
Proposed 4G Technology
Mobile Phone users are increasing day by day
Greater emphasis on Research
8. • Threats:
SWOT Analysis
Innovative package systems from other competing service
providers
Advanced technology used by competitors
New government policies
Government protection by the use of liscence
9. PEST analysis
• PEST analysis is designed to achieve to collect and analyze
environmental information in a well-structured way.
Political
Factors
PEST
Social Factors
Technological
Factors
Economical
Factors
10. PEST analysis
• Political Environment:
Reduction of Taxes on electronics
VAT – Value Added Tax
Bounded by government regulations
11. PEST analysis
• Economical Environment
Increased Tax on 2013
Inflation
Income distribution
Consumer spending patterns
12. PEST analysis
• Social Environment
Trends & Fashions
Cultural preferences
Environmental issues
13. • Technological Factors
Digitalization
Constant research & Development
New Technological Advances
Power Availability issues
Network Issues
PEST analysis
14. Competitor Analysis
• i.e. a set of activities which examines the comparative
position of competing enterprises within a given strategic
sector
Main Competitors
Objectives of Competitors
Their strategies and how successful are they
Strengths & Weaknesses of them
Their behavior in relative to Hutch’s actions
16. Competitor Analysis
• Strengths of Competitors
Customer Reliance - Mobitel, 20 years of service and being he National
service provider
Enormous Network Coverage – Dialog Axiata PLC is Sri Lanka's largest
telecommunication service provider with the country's
largest mobile phone network of over 8.7 million
subscribers
International Recognition – Airtel is currently operating in over 20
countries across Asia and Africa
17. Porter’s Five Forces
• Porter’s Five forces help to understand where power lies in a
business situation
New Entrants
> Huge investment needed
> Taxes & Legislations
> Difficult to compete with well established firms
like Dialog
Industry Rivalry
> Market Growth for 3G, IDD
etc…
> Competition with market
leaders like Dialog, Mobitel
Suppliers
> Regulations of National
Service Provider
Substitutes
> Customer satisfaction towards well known firms as
Dialog & Mobitel
> Vast Coverage of Dialog
> 4G Technology of Dialog & Mobitel
Buyers
> Low service rates
> Various Packages
Threat of new entrants
Threat of substitutes
Bargaining power of Buyers
Bargaining power of Suppliers
18. Market Segmentation
• It is the process by which customers in markets with some
heterogeneity can be grouped into smaller, more similar or
homogeneous segments
• Major Segmentation variables:
Geographic Segmentation
Demographic Segmentation
Psychographic Segmentation
Behavioral Segmentation
19. Market Segmentation
• Hutch follows a Demographic Segmentation
Prepaid Packages
Postpaid Packages
Value Added Services
Web Services
Out Side Roaming
for both Voice & Internet
20. Targeting Strategies
• It is the task of prioritizing the segment or segments on which
an organization should focus its sales and marketing activities
Three Basic Targeting Strategies:
Undifferentiated Strategy
Concentrated Strategy
Differentiated Strategy
Hutch Sri Lanka follows the Differentiated Strategy to maintain their
customer base
21. Targeting Strategies
• Prepaid Services:
Value Internet – targeting daily internet users
Always Internet – for 24x7 Internet users
Per Minute Plan
22. Targeting Strategies
• Post Paid Services
Post Paid Lite – low bill rentals
Smartphone Plans – for smartphone users, basically young crowd
23. Targeting Strategies
• Value Added Services
• E channeling - to customers who prefer online channeling
• Facebook on SMS - targeting young crowd
• Learn English - target segment is students
• SMS Banking
and many more…
24. Positioning
• It is the act of designing the image of the company to occupy
a distinctive place in the customer’s mind
Basically, Positioning is not what is done to the product, it’s what is
created in the minds of target customers
Hutch has positioned themselves with the tag line,
“ ”
Low Rates
Innovative packaging systems
Limited but better coverage
25. BCG Growth-Share Matrix
• BCG Matrix is the observation of a company's business units can be
classified into four categories based on market growth and market share
Relative Market Share
Market Growth
Star Problem Child
Cash Cow Dog
26. BCG Growth-Share Matrix
• Hutch is a business unit with low market share in a relatively
high market growth
• Falls into Problem Child Category
• Hutch had a market share of 11% in February 2014
27. Ansoff’s Matrix
• The Ansoff Matrix is a strategic planning tool that provides a framework to
help marketers devise strategies for future growth.
28. Ansoff’s Matrix
• Market Penetration - Hutch try to achieve increased market
share through aggressive advertising
Hutch Sri Lanka advertisement, September 2014
Hutch 3G – Touch. Feel. Love
29. Ansoff’s Matrix
• Product Development – Hutch launched their 3G network
(GSM 2100) in 2012
• Market Development –Ghost Internet package for heavy
downloaders
30. Marketing Cost, Distribution & Promotions
• Factors influenced for their pricing methods
Installation fees
Raw materials for Infrastructure
Facilities associated with latest Technology
