This 10-step marketing plan outlines Sun Cellular Broadband's strategy to target postpaid customers. Step 1-5 define the target market as students and mobile professionals who need fast internet access anywhere. Step 3 notes competitors like Smart and Globe broadband. Step 4 positions Sun as having the lowest price while still providing high speeds. Step 5 estimates Sun had over 1 million subscribers in 2011. Steps 6-10 detail Sun's strategy of always offering low prices and discounts through various promotional activities, nationwide distribution, and differentiation through low cost and fast internet plans.
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10stepmarketingplan
1. 10 STEP
Marketing Plan for
SUN Cellular Broadband postpaid
Li Huaijun
February 2012
http://huaijunli.blogspot.com
2. Disclaimer
This 10 Step Marketing Plan is part of the mandatory
requirements of Prof. Remigio Joseph De Ungria’s
AGSB marketing management class.
The data included in this report are based on publicly
available data such as those on internet websites,
news, package declarations, public reports.
When appropriate, data are “masked” so as not to
create unexpected conflicts.
The reports are posted and linked on slideshare, blogs
and facebook so that there is easier sharing among
students from different marketing classes.
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3. Steps 1 to 5
The people who want the fast
and easy internet connect
1. PTM are the students and the people who
always “on the go”.
2. They need the internet with fast speed
anytime and anywhere.
3. Smart broadband or Globe broadband
4. Gap is the only one with the lowest price
but still can have the high speed.
5. More than one million subscribers in 2011
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4. Steps 6 to 10
Low price ≠ Low service
6. Sun Broadband prepard.
7. Low price and discount always.
8. Newspaper, TV, Print Ads, radio,
website, event
9. Nationwide distribution
10. Low cost and differentiation
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5. 1. PTM are students and the
people who always “on the
go”.
Demographics (15-38 years
old*, M/F, A B and Upper C, S/M)
Lifestyle (Study working and
connect with other people)
Behavior (anytime and
anywhere, daily use,)
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6. 2. My PTM’s NWD
Needs from Maslow’s hierarchy
Wants determine choice
Demands for them to buy the product
Note: There may be multiple answers for needs, wants demands. Of these answers,
underline and use bold font for the best answers. See examples that follow
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7. This is my behavior (why buy)
Self-Actualization
Needs
I cant live without it (Self-Development
& Realization)
Esteem Needs
(Recognition,
Status)
need to be loved Social Needs (sense of
belonging, love)
Keep my work Safety Needs (security, protection)
Physiological needs (food, water, shelter)
Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler
6
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8. 2. PTM’s needs, wants &
demands
Needs: they need keep their work (work security),need
to be loved (social need),and self actualization.
Wants: price, packaging, brand, speed
Demands: they demand the value for the cost. Anytime
and anywhere to be connected.
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9. 3a. So many competitors in
the marketing.
Direct:Smart Bro Plug-in, Globe
Tattoo,Wi-tribe Bitsy, Motorola.
Indirect:WiFi Zone,Mobile
internet,Internet coffee.
Variables: price, speed,signal,
brand,function,packaging.
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10. 3b. Create 2 Positioning Maps
1st Map:Price vs. speed
2nd Map: Functional Benefit vs. Brands/ Variants
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11. Example of a 2x2 competitive
position map for Sun
Brandband Price vs. Speed Matrix as of 2011
Price/ 512kpbs 2mpbs 3mpbs Upper
3mpbs
Speed
Matrix
Sun649/749
800- globe
smart
800+ smartglobe
1000+
sun1399
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12. Example of a benefit positioning as of 2011
vs. brand map for Sun Broadband
Benefit Positioning vs. Brand Matrix
sun smart globe
Easy 350 Sbw Plan Plan tattoo tattoo totoo
499 999 1500
799 lite 1399 799 1500
Speed up to 3mpbs
ok
Saving money
ok OK
Unilimited usage
ok ok OK OK OK OK
Nationwide coverage OK OK
Lock in less than one
year ok ok
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13. 4. the gap is lowest cost and
differentiation
Lowest cost to the customer
Only its plan1399 has offered unlimited mobile internet
at 3mpbs t speed
Globe and Smart obviously have an edge over Sun in
terms of nationwide 3G and 3.5G coverage. But Sun
is reportedly rolling out coverage outside of Metro
Manila with subscribers independently claiming that
they could get 3G and 3.5G signals already in parts
of Bulacan and Cavite.
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14. 5a. Estimate the market size
using competitor data
Research and Markets: Philippines - Broadband Market and Forecasts - 2011
* Reuters is not responsible for the content in this press release.
The broadband market in the Philippines has started to grow strongly
Wireless broadband services are increasingly popular but fixed broadband services are remaining
important, especially DSL
The demand for broadband has increased on the back of lower tariffs and availability of more flexible
offerings.
It was estimated that by 2011 broadband made up 70% of internet subscriptions.
Major operator Smart was claiming 50% of the wireless broadband market by end-2011.
PLDT
Smart Communications
Globe Telecom
Liberty Telecom
EasyCall
Major operator Smart was
Altimax
claiming 50% of the wireless
broadband market by end-2011.
http://www.reuters.com/article/2011
/11/02/idUS28664+02-Nov-
2011+BW20111102
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15. 5b. Estimate the market size
using company data
PLDT says Sun Cellular will remain a separate entity and
retain the brand. Smart already surpassed 45 million
subscribers in 2010 while Sun Cellular, which has over 16
million subs, was already inching closer to Globe Telecom
26.5 million (26.5 million).
March 29, 2011 PLDT buys majority stake of Sun Cellular
1 0share 0share New
The biggest IT story of the day is PLDT’s acquisition of Digitel which operates Sun Celluar, the 3rd largest telco player in the Philippines.
PLDT, which owns Smart Comm., becomes a much bigger operator and strengthening it’s number 1 spot in the country.
The Philippine Long Distance Telephone company announced today its acquisition of Digital Telecommunications Philippines, Inc. (Digitel)
from JG Summit amounting to Php74.1 billion or 51.55% shares in exchange of new PLDT assets worth 2,500 per share.
Digitel, which owns Sun Cellular, announced that under the new leadership the paired networks will continue to the expansion of
broadband rollout and other next generation technologies in both fixed and wired services. {source: PhilStar}
PLDT says Sun Cellular will remain a separate entity and retain the brand. Smart already surpassed 45 million subscribers in 2010 while
Sun Cellular, which has over 16 million subs, was already inching closer to Globe Telecom (26.5 million).
Smart’s rapid growth and expansion requires more wider frequency and that might have prompted the Sun Cellular buy-out. At the same
time, Sun Cellular has become a large player in terms of post-paid subscribers (even the first one to reach 1 million). Meanwhile, Smart
has only around 500k postpaid subscribers while Globe has around 900k.
From having 3 large celco players, we now have just 2 — Smart at far #1 and Globe at a minority #2.
1 0share 0share New
http://www.yugatech.com/telecoms/pldt-buys-majority-stake-
of-sun-cellular/
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16. 5c1. Estimate the market size
using customer data
Internet Usage Statistics:
29,700,000 Internet users as of June/09, 29.7% of the
population, according to Yahoo.
Latest Population Estimate:
99,900,177 population for 2010, according to the US Census Bureau.
Gross Domestic Product:
GNI per capita is US$ 1,930 according to I.M.F.
Internet Growth in Philippines:
YEARUsersPopulation% Pop.Usage
Source20002,000,00078,181,9002.6 %ITU20057,820,00084,174,0929.3
%C.I.Almanac200814,000,00096,061,68314.6
%Yahoo!200924,000,00097,976,60324.5
%Nielsen201029,700,00099,900,17729.7 %ITU
http://www.internetworldstats.com/asia/ph.htm
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17. 5c2. Estimate the market size
using customer data
Average customer spending
php250/week
29.7M×250×52=38.6B
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18. 5. Decide on market size is
40.2B
1. Competitor data=37B
2. Company data = 45B
3. Customer Usage data =38.6B
4. (37B+45B+38.6B) /3=40.2B
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19. 6a. Photo of product category
of sun and competitors
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21. 6b. Product Description
Current Sun mobile postpaid subscribers
can get an even lower rate of P649 a
month if they add a Sun Broadband
Wireless subscription to their account.
Metro Manila users who want a unlimited
postpaid mobile broadband at faster
speeds should avail of Sun’s Plan 1399
which promises speeds of up to 3 mbps.
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22. 7. Price
SBW Plan 799 SBW Plan 649 SBW
Plan 1399
SMART PLAN 799 SMART PLAN1500
GLOBE999 GLOBE1499
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23. Creatively compare vs.
competitors across different pack
sizes and variants
Brand plan plan plan
Sun 649 799 1399
Smart 799 799 1500
Globe 999 999 1499
SBW Plan 1399: The only P1399 monthly fee for
unlimited access up to 3mbps speeds with free modem.
Standard credit checks. 24-month contract.
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24. Quantify the price difference
in % terms vs. competitors
Brand plan plan plan
Sun 100% 100% 100%
Smart 123% 100% 107.2%
Globe 154% 133% 107.1%
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25. Conclude on what pricing
strategy is being used
Lowest price
Differentiation (fast connection)
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26. 8a. Which of these modes
does your product use?
1
2
3
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27. 8a. SUN broadband
postpaid Promotions
25% off on all Reebok regular priced
footwear!
Enjoy a 25% discount on all Reebok
regular priced footwear by applying
for a Sun Broadband Plan 799 and
Bundle 649. (Available in Metro
Manila only)
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30. 8a. Sun broadband 3mbps
http://www.youtube.com/watch?v=30ex4BZsb8s
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31. 8b. Globe Tattoo on line
presence
Globe tattoo 1499 start to offer 160hours
free text and calls
Globe tattoo put more on line presence
Sponsored events
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35. 9. Place
Where is your product available?
Sun shops, Retail shops, Convenience
stores, Laptop shops
Nationwide
Over the counter, Via internet ordered
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36. 10. What is the generic
winning strategy?
Which of the 4 strategies are being used?
Low Cost Producer
Supply and Distribution Leverage
Differentiation
Niche
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37. 10.Sun postpaid has the low
cost and differentiation
strategy
SUN postpaid gain the market start the
low cost producer strategy. let the
wireless internet become affordable.
Sun postpaid has differentiation
strategy such as its fast and reliable
plan 1399
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39. Steps 1 to 5
The people who want the fast
and easy internet connect
1. PTM are the students and the people who
always “on the way”.
2. They need the internet with fast speed
anytime and anywhere.
3. Smart broadband or Globe broadband
4. Gap is the only one with the lowest price
but still can have the high speed.
5. More than one million subscribers in 2011
http://huaijunli.blogspot.com
40. Steps 6 to 10
Low price ≠ Low service
6. Sun Broadband prepard.
7. Low price and discount always.
8. Newspaper, TV, Print Ads, radio,
website, event
9. Nationwide distribution
10. Low cost and differentiation
http://huaijunli.blogspot.com
41. 10 STEP
Marketing Plan for
SUN Cellular Broadband postpaid
Li Huaijun
February 2012
http://huaijunli.blogspot.com