The Promotional Strategies of Smart and Globe: A Student's Perspective

Topics: Mobile phone, Philippines, Mobile network operator Pages: 7 (1841 words) Published: March 12, 2012

Starting from telegraphic and telephonic systems in the19th

Century, the field of telephonic communication has now

Expanded to make use of advanced technologies like GSM,

CDMA and WLL to the great 3G Technology in mobile phones.

Day by day, both the Public Players and the Private Players are

Putting in their resources and efforts to improve the

Telecommunication technology so as to give the maximum to

Their customers.

In business, it is important to use various and innovative promotional strategies to expand the demand of your product and to earn more consumers. It is one of the main things a business or a company must do to keep on working. There are 3 different ways to promote a product: to show information to consumers as well as others; to increase the demand; and change the product. Any use of those three is called the promotional strategy. Considering that competition in the business field is continuously growing, implementing efficient strategies through promoting products are indeed significant for all operators in any industry.

Background of the Study

Over the years since cellphones were widely used, various networking companies have succeeded in promoting their products to their subscribers. But up to this moment, only two networking companies have truly taken the top-spot of the networks – Smart and Globe Telecom – two of the most widely used networks today.

The two networking companies have been using different strategies to promote their products, such as SIM cards for cellphones and Wireless Internet connectors for computers or laptops. SMART Telecommunications, being the largest mobile operator in the Philippines, is also the Internet service subsidiary of the Philippine Long Distance Telephone Company (PLDT) for over 45 million cellular subscribers (Smart Comm. 2010).

Smart Communications, Inc. is the Philippines’ leading wireless services provider with 34.2 million subscribers on its GSM network (Smart Comm., 2008). Of its total subscriber base, 20.9 million subscribers are served under the brands Smart Buddy, Smart Gold and Smart Infinity and another 13.3 million subscribers are served through its subsidiary, Pilipino Telephone Corp., under the brand Talk ‘N Text. SMART has built a reputation for innovation, having introduced world-first wireless data services, including mobile commerce services such as Smart Money, Smart Load and Smart Padala. SMART also offers a 3G service, Smart 3G. These actually help SMART attain a very versatile service for its subscribers. (

On the other hand, Globe Telecom provides mobile, fixed line, and broadband Internet services. It is the second largest mobile operator in the Philippines, with 27 million customers second only to SMART and PLDT. It also provides various services like SIM networks and Wireless Internet connectors. “The most effective way to attract and retain the value- conscious Philippine mobile customer was to spur action through time-limited marketing promotions” (Globe Telecom, 2009)

Globe Telecom will start to offer 3G mobile services during Q2 2006. The operator will provide its next-generation services free of charge as part of a promotional campaign in select cities. As mobile growth continues at a steady pace in the Philippines - there were 36mn subscribers at the end of 2005, representing penetration of about 43% - we expect 3G services to be a key source of growth in the industry. With BMI forecasting mobile penetration rates to exceed 70% in 2009, there will be little room for further subscriber growth.Globe Telecom also recognized that the most effective way to attract and retain the value-conscious Philippine mobile customer was to spur action through time-limited marketing promotions. (

They attained more production through time valuing and speed production, because they believe that being quick brings in more services!
In such an...
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