Sun cellular 10 step marketing plan
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  • 1. The 10 Step Marketing Plan for Sun Cellular
    Francis Benson C. Hugo
    Ateneo Graduate School of Business
    francishugo.blogspot.com
  • 2. 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
    francishugo.blogspot.com
  • 3. 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
    francishugo.blogspot.com
  • 4. Steps 1 to 5Summary headline of Sun’s PTM and market
    Sun’s PTM are teens (10-21) and the working class (22-59)
    Who want to feel always connected to their family, friends and preferred sex.
    Can choose Smart & Globe
    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
    Market size is 86.4M subscribers, Sun’s niche is 15.2M (18%)
    francishugo.blogspot.com
  • 5. Sun Postpaid, Prepaid, Broadband and International services
    Affordable
    Uses all forms of media, internet and print ads
    Is distributed nationwide
    Generic Strategy is Niche
    Steps 6 to 10Summary of Sun’s marketing mix & strategy
    francishugo.blogspot.com
  • 6. 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
    francishugo.blogspot.com
  • 7. 2. Sun’s PTM needs
    I am happy if I’m always connected
    I want to be loved
    Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler
    7
    francishugo.blogspot.com
  • 8. 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 demand
    cheap means of communication, excellent customer service, and the feeling of security to be always connected to other people
    francishugo.blogspot.com
  • 9. 3a. Sun has two gigantic direct competitors
    “The Power to Lead”
    “Abot mo ang mundo.”
    francishugo.blogspot.com
  • 10. 3a. Other indirect competitors
    Indirect:
    Internet
    Snail Mail
    Email
    Telephone
    Personal/face-to-face communication
    francishugo.blogspot.com
  • 11. 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
    francishugo.blogspot.com
  • 12. Competitive Position Map for Telecom providers
    as of 2010
    Price vs. Age Matrix
    Smart
    Globe
    Globe
    Smart
    Globe
    Smart
    Sun
    Sun
    Sun
    francishugo.blogspot.com
  • 13. Benefit positioning vs. brand map for telecommunications provider
    Benefit Positioning vs. Brand Matrix
    francishugo.blogspot.com
  • 14. 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
    francishugo.blogspot.com
  • 15. 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
    francishugo.blogspot.com
  • 16. 5b. Estimation of market size using Sun’sdata
    Claimed market share: 18%
    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
    Historical sales (Digitel’s wireless service segment based on its 2010 Annual Report) :
    • 2008 – P 7B
    • 17. 2009 – P 10B
    • 18. 2010 – P 13B
    francishugo.blogspot.com
  • 19. 5c. Estimation of market size using customer data: Philippine Demographic Population
    Source: NSO
    66.291M out of 94.013M or 71% of the total population
    francishugo.blogspot.com
  • 20. 5c. Estimation of market size using customer data: Philippine Demographic Population
    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
    francishugo.blogspot.com
  • 21. 5. Market size in pesos, based on year 2010 data
    Competitor (Smart) data= 95B sales in 2010 / 53% market share = P179B
    Company (Sun)data = 13B sales in 2010 / 18% market share = P 72B
    Customer Usage (2010 projected Phil. Population) data = P604.9B
    market size = P604B
    Note: a person can subscribe to more than 1 network provider
    francishugo.blogspot.com
  • 22. 6a. Prepaid SIM Cards on the market
    Globe Prepaid SIM
    Smart Prepaid SIM
    Sun Prepaid SIM
    francishugo.blogspot.com
  • 23. 6a. Sun’s Regular Prepaid Cards
    francishugo.blogspot.com
  • 24. 6a. Prepaid Cards of Competitors
    francishugo.blogspot.com
  • 25. 6a. Show how Sun product looks vs. competition
    Direct competitor
    Indirect competitors
    Sun products displayed in The Sun Shop @ Shangri-La Mall
    francishugo.blogspot.com
  • 26. 6b. Sun Product Description
    Describe the physical features, specifications, attributes of the product.
    Info may be in product packaging, label, brochures or website.
    francishugo.blogspot.com
  • 27. 6b. Sun Product Description
    Prepaid Products
    francishugo.blogspot.com
  • 28. 6b. Sun Product Description
    Prepaid Products
    francishugo.blogspot.com
  • 29. 6b. Sun Product Description
    Prepaid Products
    francishugo.blogspot.com
  • 30. 7. Price
    Comparison of Call and Text Rates
    Pricing strategy used: Penetration pricing
    francishugo.blogspot.com
  • 31. 7. Price
    Comparison of Prepaid Call & Text Cards
    Sun offers more free texts
    francishugo.blogspot.com
  • 32. 8a. Modes of communication that Sun uses** ranking, 1-highest use
    2
    1
    3
    francishugo.blogspot.com
  • 33. 8a. Sun’s TV commercials
    Underscores its “UNLIMITED” brand equity always, in a very affordable price
    francishugo.blogspot.com
  • 34. 8a. Sun’s latest Promos from its website
    Hot deals offered
    francishugo.blogspot.com
  • 35. 8a. Sun’s latest Promos from its website
    Call abroad for only P2/min with Sun P20 for 10 service!
    Todo IDD now has lower rates to more countries!
    Ideal for families with OFWs
    francishugo.blogspot.com
  • 36. 8a. Sun’s latest Promos from its website
    francishugo.blogspot.com
  • 37. 8a. Sun’s latest Promos from flyers/print ads
    Thru testimonials of other people
    francishugo.blogspot.com
  • 38. 8a. Sun’s latest Promos from flyers/print ads
    Thru offering affordable deals
    francishugo.blogspot.com
  • 39. 8a. Sun’s latest Promos from flyers/print ads
    Affordable and reasonable postpaid plans
    francishugo.blogspot.com
  • 40. 8a. Sun’s latest Promos from flyers/print ads
    Thru communicating its UNLIMITED packages in every product/service
    francishugo.blogspot.com
  • 41. 8a. Sun’s latest Promos from flyers/print ads
    It also shows that it has products suited for the upper working class
    francishugo.blogspot.com
  • 42. Sun’s website
    It shows the awards received by the Company in spite of being a relatively new player in the industry
    francishugo.blogspot.com
  • 43. 8b. Globe website
    Communicates the idea of the customer as being the king- he can do whatever he wants, in his way
    francishugo.blogspot.com
  • 44. 8b. Globe latest TV commercial
    Communicates the idea of the customer as being the king- he can do whatever he wants, in his way
    francishugo.blogspot.com
  • 45. 8b. Globe promos
    Hottest Android devices
    More than 200,000 apps
    Mobile Internet Plans
    francishugo.blogspot.com
  • 46. 8b. Globe promos
    Additional services
    Promo is exclusive to Globe Prepaid subscribers.
    francishugo.blogspot.com
  • 47. 8b. Globe promos
    Additional services
    francishugo.blogspot.com
  • 48. 8b. Globe promos
    Additional services
    francishugo.blogspot.com
  • 49. 8b. Globe promos
    Additional services
    francishugo.blogspot.com
  • 50. 8b. Smart website
    Shows that the company has many things to offer
    francishugo.blogspot.com
  • 51. 8b. Smart TV commercial
    Shows that its PTM are mostly high end consumers
    francishugo.blogspot.com
  • 52. 8b. Smart promotions from Ads
    Sponsorships
    francishugo.blogspot.com
  • 53. 8b. Smart promotions
    Sponsorships
    francishugo.blogspot.com
  • 54. 8b. Smart promotions
    francishugo.blogspot.com
  • 55. 8b. Why Sun’s communication stands out
    • Consistent theme in every mode of communication used : UNLIMITED
    Company website
    TV commercial
    francishugo.blogspot.com
  • 56. 8b. Why Sun’s communication stands out
    • Appealing to the masses : affordable packages
    TV commercial
    Company website
    francishugo.blogspot.com
  • 57. 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 companies
    francishugo.blogspot.com
  • 58. The Sun Shop at SM Megamall
    francishugo.blogspot.com
  • 59. Globe Store at SM Megamall
    francishugo.blogspot.com
  • 60. 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
    francishugo.blogspot.com
  • 61. 59
    SUMMARY
    francishugo.blogspot.com
  • 62. Steps 1 to 5Summary headline of Sun’s PTM and market
    Sun’s PTM are teens (10-21) and the working class (22-59)
    Who want to feel always connected to their family, friends and preferred sex.
    Can choose Smart & Globe
    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
    Market size is 86.4M subscribers, Sun’s niche is 15.2M (18%)
    francishugo.blogspot.com
  • 63. Sun Postpaid, Prepaid, Broadband and International services
    Affordable
    Uses all forms of media, internet and print ads
    Is distributed nationwide
    Generic Strategy is Niche
    Steps 6 to 10Summary of Sun’s marketing mix & strategy
    francishugo.blogspot.com
  • 64. 62
    10 STEP Marketing Plan for Sun Cellular
    Francis Benson C. Hugo
    May 2011
    francishugo.blogspot.com