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10 STEP
Marketing Plan for
SUN Cellular Broadband postpaid

              Li Huaijun
            February 2012




      http://huaijunli.blogspot.com
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.
          http://huaijunli.blogspot.com
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

           http://huaijunli.blogspot.com
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
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,)

         http://huaijunli.blogspot.com
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




                     http://huaijunli.blogspot.com
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
                   http://huaijunli.blogspot.com
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.




          http://huaijunli.blogspot.com
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.


          http://huaijunli.blogspot.com
3b. Create 2 Positioning Maps

1st Map:Price vs. speed


2nd Map: Functional Benefit vs. Brands/ Variants




          http://huaijunli.blogspot.com
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
           http://huaijunli.blogspot.com
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


                        http://huaijunli.blogspot.com
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.

          http://huaijunli.blogspot.com
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
                           http://huaijunli.blogspot.com
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/


                            http://huaijunli.blogspot.com
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

                 http://huaijunli.blogspot.com
5c2. Estimate the market size
using customer data

   Average customer spending
    php250/week
   29.7M×250×52=38.6B




         http://huaijunli.blogspot.com
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




         http://huaijunli.blogspot.com
6a. Photo of product category
of sun and competitors




      http://huaijunli.blogspot.com
6a. Sun postpaid vs.
competition




      http://huaijunli.blogspot.com
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.

       http://huaijunli.blogspot.com
7. Price

   SBW Plan 799 SBW Plan 649 SBW
    Plan 1399

   SMART PLAN 799 SMART PLAN1500

   GLOBE999 GLOBE1499


         http://huaijunli.blogspot.com
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.

             http://huaijunli.blogspot.com
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%

         http://huaijunli.blogspot.com
Conclude on what pricing
strategy is being used

   Lowest price
   Differentiation (fast connection)




          http://huaijunli.blogspot.com
8a. Which of these modes
    does your product use?


1

2




                   3



         http://huaijunli.blogspot.com
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)
         http://huaijunli.blogspot.com
8a. Get 25% off




     http://huaijunli.blogspot.com
Lowest unlimited internet




     http://huaijunli.blogspot.com
8a. Sun broadband 3mbps




http://www.youtube.com/watch?v=30ex4BZsb8s

         http://huaijunli.blogspot.com
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




        http://huaijunli.blogspot.com
8b. Globe tattoo promo




     http://huaijunli.blogspot.com
8b. Globe tattoo on line
presence




   http://www.youtube.com/watch?v=aNP
    du41XkUs

         http://huaijunli.blogspot.com
Globe tattoo sponsored event






      http://huaijunli.blogspot.com
9. Place

   Where is your product available?
       Sun shops, Retail shops, Convenience
        stores, Laptop shops
       Nationwide
       Over the counter, Via internet ordered




            http://huaijunli.blogspot.com
10. What is the generic
winning strategy?

Which of the 4 strategies are being used?
     Low Cost Producer
     Supply and Distribution Leverage
     Differentiation
     Niche




          http://huaijunli.blogspot.com
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


          http://huaijunli.blogspot.com
SUMMARY




http://huaijunli.blogspot.com   37
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
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
10 STEP
Marketing Plan for
SUN Cellular Broadband postpaid

              Li Huaijun
            February 2012




       http://huaijunli.blogspot.com

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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. http://huaijunli.blogspot.com
  • 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 http://huaijunli.blogspot.com
  • 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 http://huaijunli.blogspot.com
  • 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,) http://huaijunli.blogspot.com
  • 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 http://huaijunli.blogspot.com
  • 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 http://huaijunli.blogspot.com
  • 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. http://huaijunli.blogspot.com
  • 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. http://huaijunli.blogspot.com
  • 10. 3b. Create 2 Positioning Maps 1st Map:Price vs. speed 2nd Map: Functional Benefit vs. Brands/ Variants http://huaijunli.blogspot.com
  • 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 http://huaijunli.blogspot.com
  • 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 http://huaijunli.blogspot.com
  • 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. http://huaijunli.blogspot.com
  • 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 http://huaijunli.blogspot.com
  • 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/ http://huaijunli.blogspot.com
  • 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 http://huaijunli.blogspot.com
  • 17. 5c2. Estimate the market size using customer data  Average customer spending php250/week  29.7M×250×52=38.6B http://huaijunli.blogspot.com
  • 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 http://huaijunli.blogspot.com
  • 19. 6a. Photo of product category of sun and competitors http://huaijunli.blogspot.com
  • 20. 6a. Sun postpaid vs. competition http://huaijunli.blogspot.com
  • 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. http://huaijunli.blogspot.com
  • 22. 7. Price  SBW Plan 799 SBW Plan 649 SBW Plan 1399  SMART PLAN 799 SMART PLAN1500  GLOBE999 GLOBE1499 http://huaijunli.blogspot.com
  • 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. http://huaijunli.blogspot.com
  • 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% http://huaijunli.blogspot.com
  • 25. Conclude on what pricing strategy is being used  Lowest price  Differentiation (fast connection) http://huaijunli.blogspot.com
  • 26. 8a. Which of these modes does your product use? 1 2 3 http://huaijunli.blogspot.com
  • 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)  http://huaijunli.blogspot.com
  • 28. 8a. Get 25% off http://huaijunli.blogspot.com
  • 29. Lowest unlimited internet http://huaijunli.blogspot.com
  • 30. 8a. Sun broadband 3mbps http://www.youtube.com/watch?v=30ex4BZsb8s http://huaijunli.blogspot.com
  • 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 http://huaijunli.blogspot.com
  • 32. 8b. Globe tattoo promo http://huaijunli.blogspot.com
  • 33. 8b. Globe tattoo on line presence  http://www.youtube.com/watch?v=aNP du41XkUs http://huaijunli.blogspot.com
  • 34. Globe tattoo sponsored event  http://huaijunli.blogspot.com
  • 35. 9. Place  Where is your product available?  Sun shops, Retail shops, Convenience stores, Laptop shops  Nationwide  Over the counter, Via internet ordered http://huaijunli.blogspot.com
  • 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 http://huaijunli.blogspot.com
  • 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 http://huaijunli.blogspot.com
  • 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