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PLDT Marketing Plan

By donnes Oct 13, 2014 1397 Words


A Marketing Plan
Presented to the
Faculty of the Department of Business Administration
School of Business and Economics
University of San Carlos
Cebu City, Philippines

In Partial Fulfillment
Of the Requirements for the Course
MW 10:30 AM - 12:00 PM



October 2014



Title Page i
Acknowledgement ii
Table of Contents iv
List of Tables v
List of Figures vi


A. The Marketing Environment
1. Competitive Forces
2. Economic Forces
3. Political Forces
4. Legal and Regulatory Forces
5. Technological Forces
6. Sociocultural Forces
B. Target Market(s)
C. Current Marketing Objectives and Performance

A. Strengths
B. Weaknesses
C. Opportunities
D. Threats
E. Matching Strength to Opportunities/ Converting Weaknesses
And Threats


A. Target Market(s)
B. Marketing Mix
1. Products
2. Price
3. Distribution
4. Promotion

A. Marketing Organization
B. Activities, Responsibility, and Timetable for Completion

A. Performance Standards and Financial Controls
B. Monitoring Procedures

1Research Flow Chart
2Location Map
3Plant Lay out


Unpublished Materials

Internet Resources

In signing this document, I am giving my consent to be a participant of the research that will be conducted by MR DONNES M. DAYO, MS KAREN KEITH S. GO, MS MADELEINE G. LABAJOSA, MS MERYLL KAYE P. PACIFICO, MS DIANNE M. ROSERO of the Department of Business Administration, School of Business and Economics, University of San Carlos, Cebu City, Philippines. I understand that the research is done in partial fulfillment of the completion of their course in Principles of Marketing (BA 101).

I understand that the interviews will be conducted in my office located in Osmeña Blvd., Sta. Cruz, Cebu City, Cebu. I will be made to answer questions based on an interview guide.

I understand that I was selected to participate in the study because my business is pertinent to their research activity.

My participation in the interviews is granted freely. I have been informed that participation in the interview is entirely voluntary and I can refuse to answer any specific question. I have been told that my answers to questions will be included in the research study.

I understand that the results of this research will be given to me if I ask for them and that the researchers, MR DONNES M. DAYO, MS KAREN KEITH S. GO, MS MADELEINE G. LABAJOSA, MS MERYLL KAYE P. PACIFICO, MS DIANNE M. ROSERO, are the persons to contact if I have any questions about the study or about my rights as a study participant.

Signed this 10th day of October 2014.

DENVER C. AMONTOSOctober 10, 2014








Being the largest company in the Philippines, The Philippine Long Distance Telephone Company (PLDT) provides a wide range of telecommunication services, including fixed line, cellular and broadband services. For the past few years, a revolution has taken place in the telecommunications industry and the PLDT dominance in the industry has been threatened. Competing in a maturing industry, Revenue growth for PLDT has been stagnant for a few years and revenues decline for the first time in 2009. The future outlook is not prospective for PLDT either, as competition will be intensified by a change in government attitude in promoting market liberalization in the telecommunications industry. The current situation and the dimmed prospects facing PLDT have led to a 22% drop in share price as investors and shareholders fear that they could not achieve reasonable rates of return for their investment in PLDT.

To regain investors’ confidence, we propose PLDT to integrate the services in mobile, fixed voice and data. This strategy, when implemented, will minimize the negative effect of revenue cannibalization. In addition, it will put PLDT in a better position to capture the advantage of the rising availability of PCs and arrival of faster internet access phones in the intermediate term and become more attractive to outsourced companies in Philippines. Finally, it will enable PLDT to exploit positive synergies among existing business units, exploit Long Tail opportunities and be well poised to progress and tap onto the opportunities presented by the diminishing boundary between technology, media, and telecommunications (TMT) industries.


A. The Marketing Environment
1. Competitive Forces
Philippine Long Distance Telephone Company (PLDT) is the leading telecommunications provider in the Philippines with approximately 41 wireless subscribers and nearly 2 million fixed lines. PLDT offers primarily prepaid mobile services under the Smart, Talk 'N Text, and CURE brands; it also offers mobile broadband and satellite service. PLDT's fixed-line services encompass local, long-distance, data transmission and network access over a core fiber-optic network. The company provides information technology services, consulting, online gaming, and communication software development through its information and communications technology (ICT) unit; Internet access services are sold by its Infocom subsidiary. PLDT’s main competitors are Globe Telecom and Digitel in both the fixed-line and mobile (via Smart's competition with Globe) markets. Bayan Telecommunications (BayanTel) is also a major fixed-line competitor.

2. Economic Forces
PLDT’s economic forecasts for the Philippines are key assumptions for the global economy covering growth, inflation, employment, trade and investment, interest and exchange rates. Stability and Exchange Rates - The country's per capita income has barely grown in the past 21 years. The per capita income of P12,913 in 2003 is only P318 higher than P12,595 in 1980. The value of the peso has depreciated by as much as 1,373 percent against the dollar. In line with their aim to ensure business stability to meet its debt reduction target, PLDT may be greatly affected when economy fluctuates more so of its balance debt as of 2003 of $2.5 billion dollars.

3. Political Forces
PLDT evaluates the short and medium-term threats posed by government instability, adverse economic policy-making, deterioration in the business environment and external shocks. Risks - PLDT assess explicit short and long-term risks to political stability; latest ratings, rankings and trends for the Philippines' risk are compared with Asia regional and global averages. Current Administration and Policy-Making in the Philippines - Threats to the continuity of Philippine economic policy would likely change the business operating environment. War Threats - Continuous operations of the company may be interrupted due to this factor similar to what happened in 1942-46.

4. Legal and Regulatory Forces
DOTC and NTC - The telecommunications industry operates under close government regulation. The Department of Transportation and Communication (DOTC) and National Telecommunications Office (NTC) oversee the industry. RA 7925 - The Public Telecommunications Policy Act lays down the administrative and regulatory framework designated for the development of the Philippine telecommunications industry. Competition Legislations - The Philippines does not have a comprehensive competition policy; currently, there is no central agency created towards the implementation of fair trade laws.

5. Technological Forces
PLDT assesses development on technology, the effects from its these development and cost structure Fast Technological Change - PLDT is faced with a constant threat of innovation to its products and services to keep up with the fast evolution of technology in order to sustain a competitive advantage in the market. Demand For Technological Change Would Redefine Cost Structure - Cost is incurred in developing or adapting to new changes in technology.

6. Sociocultural Forces
PLDT assesses levels of transparency, flexibility of labor market, tax burden, infrastructure and IT, and trade liberalization in the Philippines Strain in Making Consumers Need the Product - With PLDT’s diversified services and various products, several marketing strategies be develop in order to impose a greater impact in building the need to want the services and products being offered in the market. Position a Product That Caters to Various Market Segment - In proportion to Philippines’ demography on income earners, PLDT needs to explore more on areas where possible consumers limits its purchase power to their level of income.

B. Target Market(s)
PLDT's target markets are information and communications technology sectors, as well as the operation of Vitro data center, customer interaction solutions and knowledge processing solutions business and serve all customer categories.

C. Current Marketing Objectives and Performance

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