sun cellular 10 step marketing plan
TRANSCRIPT
The 10 Step Marketing Plan for Sun Cellular
Francis Benson C. HugoAteneo Graduate School of Business
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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.
Disclaimer
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Sun Cellular offers the latest in GSM technology, providing voice services (local, national, international calling), messaging services (short text or multimedia messaging), outbound and inbound international roaming, broadband wireless technology, and value-added services such as Mobile Internet, and up-to-date downloadable contents like ringtones, dial tunes, picture messages, and logos.
Company Profile
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1. Sun’s PTM are teens (10-21) and the working class (22-59)
2. Who want to feel always connected to their family, friends and preferred sex.
3. Can choose Smart & Globe4. Gap is focus on prepaid and postpaid
services. Mobile broadband market (WAP, GPRS, MMS) and users using 3G and HSPA need to be developed and tapped as well
5. Market size is 86.4M subscribers, Sun’s niche is 15.2M (18%)
Steps 1 to 5
Summary headline of Sun’s PTM and market
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6. Sun Postpaid, Prepaid, Broadband and International services
7. Affordable8. Uses all forms of media, internet
and print ads 9. Is distributed nationwide10. Generic Strategy is Niche
Steps 6 to 10
Summary of Sun’s marketing mix & strategy
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1. Sun lights the way of both young and adult Filipinos
Demographics: teens and working class Male or female, single or married, belongs to
whatever social class Lifestyle: on-the-go: those who love to have 24/7 call
and text messaging to family, wide network of friends and preferred sex
Students (high school, college, grad, med and law) Professionals (CEOs, lawyers, doctors, etc.) Employed or self-employed, businessmen,
investors Behavior: Filipinos consume most of their time texting
and calling- whoever, wherever and whenever; always ensure their cell phone has a load
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2. Sun’s PTM needs
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Esteem Needs (Recognition, Status)
Social Needs (sense of belonging, love)
Safety Needs (security, protection)
Physiological needs (food, water, shelter)
Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler
I want to be loved
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I am happy if I’m always connected
2. Teens and the working class have basically the same needs
Teens and the working class people need to belong, to be loved, and self-actualization
Teens and working class people prefer Sun cellular over other telecommunication providers because of cheap call & text rates, excellent customer service and the brand’s promise of 24/7 unlimited connection with loved ones
Teens and working class sector demandcheap means of communication, excellent customer service, and the feeling of security to be always connected to other people
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3a. Sun has two gigantic direct competitors
“The Power to Lead”
“Abot mo ang mundo.”
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3a. Other indirect competitors Indirect:
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InternetEmail
Snail Mail
TelephonePersonal/face-to-face communication
3a. Principal bases of competition Variables:
Price
Coverage
Quality of service support
Speed of network access
Availability of calling features
Value-for-money products & services
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Competitive Position Map for Telecom providers
Price/ Age Matrix
10-21 yrs 22-59 yrs 50yrs up
High price
Low Price
Globe
Smart
Smart
Sun Sun
Price vs. Age Matrix as of 2010
Sun
Globe
Smart
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Globe
Benefit positioning vs. brand map for telecommunications provider
Benefit Positioning vs. Brand Matrix
Functional BenefitGlobe
PostpaidGlobe
Prepaid
Globe Broadband
Sun Postpaid
Sun Prepaid
Sun Broadband
Smart Postpaid
Smart Prepaid
Smart Broadband
Flexibility to choose FREE phoneChoice of way to spendReliable Unlimited service (call & text)Unlimited mobile surfingInternet browsingAffordableSaves money/ offers cheapest rateValidity of load extensionSending load to friends/loved ones
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4. Gap between Sun customers and competition
Where is the marketing opportunity?boost and develop mobile broadband networks and other value-added services
What NWDs are not being addressed?mobile broadband, improvement of current 3G and HSPA
What can be the unique selling proposition for the new product (totally new or repositioned.)Longer talking time for its 24/7 unlimited call and text, lower call and text rates
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5a. Estimation of market size using competitor data: Smart
1. Sales of Smart from PLDT 2010 Annual Report (source: PLDT website) Total Sales (service revenues from its
Wireless business) – P 95B % of sales from multi-product:
95B revenues from wireless segment / 144B consolidated revenues = 65.89%
2. As of December 2010, it has 45.6M subscribers (Smart website)
3. 45.6M / 86.4M subscribers = 53% market share
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5b. Estimation of market size using Sun’s data
1. Claimed market share: 18%2. Guesstimate on market share
Fair share of market: 15.2M subscribers (August 2010) Distribution extent
The company makes its Prepaid Services available through its thousands of:
Xpressload retailers, Distributors and The Sun Shop outlets
Postpaid Services are provided to individuals, families, small and medium enterprises, and local companies
3. Historical sales (Digitel’s wireless service segment based on its 2010 Annual Report) :
2008 – P 7B 2009 – P 10B 2010 – P 13B
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5c. Estimation of market size using customer data: Philippine Demographic Population
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Source: NSO66.291M out of 94.013M or 71% of the total population
1. Usage per day or per year Per person (ages 10-59)
66.291M x P25 ave. load per day = P1.657B P1.657B daily x 365 days = P 604.9B
Per household Average persons in a household = 4 (source:
NSO) P1.657B / 4 = P414M per household per day P414M x 365 days = P151B per year
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5c. Estimation of market size using customer data: Philippine Demographic Population
5. Market size in pesos, based on year 2010 data
1. Competitor (Smart) data= 95B sales in 2010 / 53% market share = P179B
2. Company (Sun) data = 13B sales in 2010 / 18% market share = P 72B
3. Customer Usage (2010 projected Phil. Population) data = P604.9B
market size = P604BNote: a person can subscribe to more than 1 network provider
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6a. Prepaid SIM Cards on the market
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Globe Prepaid SIM
Smart Prepaid SIM
Sun Prepaid SIM
6a. Sun’s Regular Prepaid Cards
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6a. Prepaid Cards of Competitors
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6a. Show how Sun product looks vs. competition
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Sun products displayed in The Sun Shop @ Shangri-La Mall
Indirect competitors
Direct competitor
6b. Sun Product Description
Describe the physical features, specifications, attributes of the product.
Info may be in product packaging, label, brochures or website.
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6b. Sun Product Description
Prepaid Products
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6b. Sun Product Description
Prepaid Products
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6b. Sun Product Description
Prepaid Products
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Call and Text RatesGlobe
Prepaid RateSun Prepaid
Rate
Smart Prepaid
RateVoice Rates (per minute) Network to same network P 6.50 P 5.50 P 6.50 Network to other networks P 7.50 P 6.50 P 7.50 Network to landline P 7.50 P 6.50 P 7.50Text Messages Network to same network P 1.00 P 0.50 P 1.00 Network to other networks P 1.00 P 1.00 P 1.00
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Comparison of Call and Text Rates
7. Price
Pricing strategy used: Penetration pricing
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Comparison of Prepaid Call & Text Cards
7. Price
Sun offers more free texts
8a. Modes of communication that Sun uses** ranking, 1-highest use
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2
3
8a. Sun’s TV commercials
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Underscores its “UNLIMITED” brand equity always, in a very affordable price
8a. Sun’s latest Promos from its website
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Hot deals offered
8a. Sun’s latest Promos from its website
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Ideal for families with OFWs
Call abroad for only P2/min with Sun P20 for 10 service!
Todo IDD now has lower rates to more countries!
8a. Sun’s latest Promos from its website
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8a. Sun’s latest Promos from flyers/print ads
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Thru testimonials of other people
8a. Sun’s latest Promos from flyers/print ads
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Thru offering affordable deals
8a. Sun’s latest Promos from flyers/print ads
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Affordable and reasonable postpaid plans
8a. Sun’s latest Promos from flyers/print ads
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Thru communicating its UNLIMITED packages in every product/service
8a. Sun’s latest Promos from flyers/print ads
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It also shows that it has products suited for the upper working class
Sun’s website
It shows the awards received by the Company in spite of being a relatively new player in the industry
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8b. Globe website
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Communicates the idea of the customer as being the king- he can do whatever he wants, in his way
8b. Globe latest TV commercial
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Communicates the idea of the customer as being the king- he can do whatever he wants, in his way
8b. Globe promos
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More than 200,000 apps
Hottest Android devices
Mobile Internet Plans
8b. Globe promos
Promo is exclusive to Globe Prepaid subscribers.
Additional services
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8b. Globe promos
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Additional services
8b. Globe promos
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Additional services
8b. Globe promos
Additional services
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8b. Smart website
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Shows that the company has many things to offer
8b. Smart TV commercial
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Shows that its PTM are mostly high end consumers
8b. Smart promotions from Ads
Sponsorships
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8b. Smart promotions
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Sponsorships
8b. Smart promotions
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8b. Why Sun’s communication stands out
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Consistent theme in every mode of communication used : UNLIMITED
TV commercial
Company website
8b. Why Sun’s communication stands out
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Appealing to the masses : affordable packages
TV commercial
Company website
9. Place
Where are Sun products available? The company makes its Prepaid
Services available through its thousands of:
Xpressload retailers, The Sun Shop outlets Distributors and retail outlets
nationwide Postpaid Services are provided to
individuals, families, small and medium enterprises, and local companiesfrancishugo.blogspot.com
The Sun Shop at SM Megamall
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Globe Store at SM Megamall
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10. Sun’s generic winning strategy
Which of the 4 strategies are being used? (bold and underline to most dominant strategy) Low Cost Producer Supply and Distribution Leverage Differentiation Niche
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SUMMARY
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1. Sun’s PTM are teens (10-21) and the working class (22-59)
2. Who want to feel always connected to their family, friends and preferred sex.
3. Can choose Smart & Globe4. Gap is focus on prepaid and postpaid
services. Mobile broadband market (WAP, GPRS, MMS) and users using 3G and HSPA need to be developed and tapped as well
5. Market size is 86.4M subscribers, Sun’s niche is 15.2M (18%)
Steps 1 to 5
Summary headline of Sun’s PTM and market
francishugo.blogspot.com
6. Sun Postpaid, Prepaid, Broadband and International services
7. Affordable8. Uses all forms of media, internet
and print ads 9. Is distributed nationwide10. Generic Strategy is Niche
Steps 6 to 10
Summary of Sun’s marketing mix & strategy
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10 STEP Marketing Plan for Sun Cellular
Francis Benson C. HugoMay 2011
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