In partial fulfillment of the requirements of the course
I. Introduction and Marketing Background.
A. The Dynamics of the market that client brand plays in
1. Market Trends
In recent years, the Philippines has gained the title of the “text capital” of the world. From a luxury only the upper classes could afford, mobile phone usage has morphed into a necessity. Filipinos of all walks of life now own cell phones, and even a walk through the most decrepit areas of the country will show you people using their phones, mostly to text or to call.
While other uses for mobile phones like internet, banking and the like exist, texting and calling have become deeply ingrained into the everyday life of the Filipinos. Especially since the emergence of unlimited call and text promotions, which has made cellphone use a lot cheaper. People may opt to avail of prepaid or postpaid subscriptions, which are provided by telecom networks. The Philippines’ affinity for mobile communications has allowed telecom networks to thrive. The local market for mobile telecom is dominated by a small number of networks, each with large advertising budgets and strong brand identities. The top three are Globe Telecom, Smart Communications and the newer, but equally competitive, Sun Cellular. Two other rising players in the telecommunications market are Touch Mobile, a sub-brand under Globe, and Red Mobile, a sub brand of Smart. There is cutthroat competition between telecom networks. This is especially because hard times, due to the financial crisis, have created a need to shift prices downward and create value-laden promotions that make phone use more affordable. 2. STEPLE
* Telecommunications has become the primary form of indirect communication in the country * Mobile phone use has become widespread among classes A-D * People look to texting and mobile phone calling as the most convenient way to communicate both locally and internationally * Rising fear of the abolishment of unlimited text and call programs due to PLDT’s acquisition of Digitel, under which is Sun Cellular b. Technological
* Widespread Internet usage allows for online promotions and electronic loading * People can now access the Internet from their mobile phone through Broadband 3G * Credit sharing between subscribers and e-load from any location now exists * Increase in cell sites even in remote areas
* Continuous emergence of technologically advanced and affordable mobile phone models c. Economic
* Recent acquisition of 52% of Digitel, which owns Sun Cellular, by PLDT, which also owns Smart Communications * Increasing globalization
* A huge increase or decrease in income distribution of the country * Increase in number of Overseas Filipino Workers and Filipinos going abroad allows for greater income * There is a change in inflation and deflation rate.
* change in interest rate or economic growth
* There has been a decline in the cost of handset mobile phones. * changes in labor cost and changes in unemployment rate
* Telecommunication companies are subject to the laws of Republic Act 7925, The Public Telecommunications Policy Act of the Philippines * Laws being pushed for the abolition of prepaid load expiry * The National Telecommunications Commission establishes rates and tariffs for telecommunications entities. * Firms must comply with the Cell site Tower Ordinance, which mandates that telecom first must be granted business and building permits from the city government * Taxation laws govern tariffs of telecommunication firms e. Legal
* National campaign of Nationalism and patronizing local products * Funding, grants and initiatives change
* Protests against placement of illegal cell sites and price of load exist