This is a brief presentation of Hutch Sri Lanka.

2. Introduction
• What is HUTCH?
 A Hutchison Whampoa Company
 A member of Hutchison Asia Telecom
 Sri Lankan operation is known as Hutch
 Launched its GSM service in 2004

3. Company Vision
• “Making every Lankan a mobile phone owner”

4. Company Mission
• As the first objective to get a mobile phone into everyone’s
hand, Hutch have to address the facts ;
– “What obstacles keep a person away from having a mobile
phone?”
– “What are their problems? How can we resolve them?”

5. SWOT Analysis
• SWOT Analysis involves understanding and analyzing
strengths and weaknesses of the company and identifying
opportunities in the market place as well as threats to the
business.
Strengths Weaknesses
Opportunities Threats

6. • Strengths:
 Access to affordable telephone services
 Effective & strong service coverage for their customer
base
• Weaknesses:
SWOT Analysis
 Incapability of introducing 4G network , yet.
 Limited network coverage throughout the island
 Deficiency of strong promotion strategies

7. • Opportunities:
SWOT Analysis
 Have a wide range of packages, so can share the services
of each sector
 Proposed 4G Technology
 Mobile Phone users are increasing day by day
 Greater emphasis on Research

8. • Threats:
SWOT Analysis
Innovative package systems from other competing service
providers
Advanced technology used by competitors
New government policies
Government protection by the use of liscence

9. PEST analysis
• PEST analysis is designed to achieve to collect and analyze
environmental information in a well-structured way.
Political
Factors
PEST
Social Factors
Technological
Factors
Economical
Factors

10. PEST analysis
• Political Environment:
 Reduction of Taxes on electronics
 VAT – Value Added Tax
 Bounded by government regulations

11. PEST analysis
• Economical Environment
Increased Tax on 2013
Inflation
Income distribution
Consumer spending patterns

12. PEST analysis
• Social Environment
Trends & Fashions
Cultural preferences
Environmental issues

13. • Technological Factors
Digitalization
Constant research & Development
New Technological Advances
Power Availability issues
Network Issues
PEST analysis

14. Competitor Analysis
• i.e. a set of activities which examines the comparative
position of competing enterprises within a given strategic
sector
 Main Competitors
 Objectives of Competitors
 Their strategies and how successful are they
 Strengths & Weaknesses of them
 Their behavior in relative to Hutch’s actions

15. Competitor Analysis
• Competitors Hutch Deals with are,

16. Competitor Analysis
• Strengths of Competitors
 Customer Reliance - Mobitel, 20 years of service and being he National
service provider
 Enormous Network Coverage – Dialog Axiata PLC is Sri Lanka's largest
telecommunication service provider with the country's
largest mobile phone network of over 8.7 million
subscribers
 International Recognition – Airtel is currently operating in over 20
countries across Asia and Africa

17. Porter’s Five Forces
• Porter’s Five forces help to understand where power lies in a
business situation
New Entrants
> Huge investment needed
> Taxes & Legislations
> Difficult to compete with well established firms
like Dialog
Industry Rivalry
> Market Growth for 3G, IDD
etc…
> Competition with market
leaders like Dialog, Mobitel
Suppliers
> Regulations of National
Service Provider
Substitutes
> Customer satisfaction towards well known firms as
Dialog & Mobitel
> Vast Coverage of Dialog
> 4G Technology of Dialog & Mobitel
Buyers
> Low service rates
> Various Packages
Threat of new entrants
Threat of substitutes
Bargaining power of Buyers
Bargaining power of Suppliers

18. Market Segmentation
• It is the process by which customers in markets with some
heterogeneity can be grouped into smaller, more similar or
homogeneous segments
• Major Segmentation variables:
 Geographic Segmentation
 Demographic Segmentation
 Psychographic Segmentation
 Behavioral Segmentation

19. Market Segmentation
• Hutch follows a Demographic Segmentation
 Prepaid Packages
 Postpaid Packages
 Value Added Services
 Web Services
 Out Side Roaming
for both Voice & Internet

20. Targeting Strategies
• It is the task of prioritizing the segment or segments on which
an organization should focus its sales and marketing activities
 Three Basic Targeting Strategies:
Undifferentiated Strategy
Concentrated Strategy
Differentiated Strategy
 Hutch Sri Lanka follows the Differentiated Strategy to maintain their
customer base

21. Targeting Strategies
• Prepaid Services:
Value Internet – targeting daily internet users
Always Internet – for 24x7 Internet users
Per Minute Plan

22. Targeting Strategies
• Post Paid Services
Post Paid Lite – low bill rentals
Smartphone Plans – for smartphone users, basically young crowd

23. Targeting Strategies
• Value Added Services
• E channeling - to customers who prefer online channeling
• Facebook on SMS - targeting young crowd
• Learn English - target segment is students
• SMS Banking
and many more…

24. Positioning
• It is the act of designing the image of the company to occupy
a distinctive place in the customer’s mind
 Basically, Positioning is not what is done to the product, it’s what is
created in the minds of target customers
 Hutch has positioned themselves with the tag line,
“ ”
 Low Rates
 Innovative packaging systems
 Limited but better coverage

25. BCG Growth-Share Matrix
• BCG Matrix is the observation of a company's business units can be
classified into four categories based on market growth and market share
Relative Market Share
Market Growth
Star Problem Child
Cash Cow Dog

26. BCG Growth-Share Matrix
• Hutch is a business unit with low market share in a relatively
high market growth
• Falls into Problem Child Category
• Hutch had a market share of 11% in February 2014

27. Ansoff’s Matrix
• The Ansoff Matrix is a strategic planning tool that provides a framework to
help marketers devise strategies for future growth.

28. Ansoff’s Matrix
• Market Penetration - Hutch try to achieve increased market
share through aggressive advertising
Hutch Sri Lanka advertisement, September 2014
Hutch 3G – Touch. Feel. Love

29. Ansoff’s Matrix
• Product Development – Hutch launched their 3G network
(GSM 2100) in 2012
• Market Development –Ghost Internet package for heavy
downloaders

30. Marketing Cost, Distribution & Promotions
• Factors influenced for their pricing methods
 Installation fees
 Raw materials for Infrastructure
 Facilities associated with latest Technology

31. Marketing Cost, Distribution & Promotions
• Distribution methods and their locations
 Hutch Shops

32. Marketing Cost, Distribution & Promotions
 Voice & 3G Network Coverage

33. Marketing Cost, Distribution & Promotions
• Promotional strategies
 IDD Promotions  SMS Promotions

34. Marketing Cost, Distribution & Promotions
 Hello Tunes Promotions
 Go Kart Racing with BNS

35. Marketing Cost, Distribution & Promotions
 Trendy Tips Promotions  Astrology Services Promotion

36. Marketing Cost, Distribution & Promotions
• Promotional strategies

37. Marketing Cost, Distribution & Promotions
Hutch Mi-Fi Router on 0% interest for HSBC Cardholders

38. Marketing Cost, Distribution & Promotions
Different Data Plans for 3G users

39. Thank You !