Xenus Consultancy is being engaged to provide a professional diagnostic of the current marketing strategy on Celcom's mobile broadband services in line with their expansion and to enhance sales and compete with the current market share competition of large and up-and-coming mobile broadband service providers with better and different technology and marketing strategies. Xenus is also to provide qualified opinions and practical recommendations to improve on the current marketing strategy for Celcom mobile broadband services. Situation Analysis
Marketing Environment (PESTLE)
Economic and Social factors
With the competitive market of mobile broadband packages available by three dominant telecommunication companies in Malaysia (Celcom, Maxis and DIGI), consumers are spoilt for choice. Factors like purchasing power, time constraint, ease of usage and installation, the need for download speed (a random oral survey was performed at a local IT fair recently with 80% of participants complaining of slow bandwidth and lack of coverage), along with work and play mobility, it even intensify the need to compete with these companies for subscriber market share with better and more attractive mobile broadband plans in terms of higher bandwidth, quota, pricing, etc. For Celcom, pricing is comparable with the other competitors but other factors require improvement. In addition, the local ideology has always been "getting the best service offered with the lowest price possible". Economically, Celcom has set aside RM3billion (approximately 40%) for capital expenditure (capex) until 2012 to expand their hi-speed Internet, data operations and broadband capacity. This includes expanding of network coverage and capacity (bandwidth) as well as investing more in network infrastructure, (The Edge Malaysia, 2010).
SWOT Analysis of Current Marketing Strategy
Porter's Five Forces Analysis
This is a powerful tool to further analyze the current Celcom marketing strategy for mobile broadband and it is divided into 5 categories: * Threat of New Entrants
The mobile broadband market is still growing with many new entrants to the business by means of new technology (Wifi, Wimax etc.) to boost the network coverage instead of using traditional transmission tower dishes. Even though some legal and political environmental factors do affect new entrants but the Government is now more lenient in awarding licenses in terms of their new policy of encouraging the usage of internet as the medium to gain knowledge, perform research, communicate and even in the political arena, to campaign for votes. In addition, new entrants have studied basic marketing strategies of the mobile broadband dominators like Celcom, Maxis and DIGI (to name a few) to design their own competitive marketing strategy to obtain part of the market share.
* Threat of Substitution
This threat is mostly on technological factor whereby non-telecommunications company uses Wimax or Wifi to provide mobile broadband transmission. However, some of these technologies have weaknesses (e.g. a certain mobile broadband service requires to station the modem dongle near a window each time a consumer has to go online to gain better reception). network coverage possible.
The available mobile broadband plans from Celcom. There are currently 4 plans; Lite, Basic, Advance and Professional (Pro). All these plans do not require the consumers to be a mobile number subscriber (post-paid or pre-paid phone lines) to register. In addition, there is no contractual commitment to these plans, hence there is no penalty fees if consumers decide to terminate the mobile broadband service after 2 months of usage due to unanticipated circumstances. Celcom has actually revised its plans especially the quota and bandwidth of certain plans to compete with the other 2 telecommunications company...