PT. Excelcomindo Pratama, Tbk.
Marketing Assignment
By:
Susanna S. R (3094002)
Eka Darmadi (3094802)
Levina Rolanda (30948...
INTRODUCTION AND HISTORY OF THE COMPANY
PT. XL. Axiata Tbk. (XL) was established in 1989 with its name PT. Grahametropolit...
2007
Introduced its Rp1/minute tariff. ETISALAT became a shareholder.
ETISALAT is the second largest telecommunications co...
degree of product differentiation, knowledge sellers and buyers about its products and the
existence of barriers to market...
S.W.O.T
XL
Strength
1. Cheaper Call also SMS rate than other
2. Have lot of content in “XL Life”
3. The Largest Blackberry...
S.W.O.T
TELKOMSEL
Strength
1. Strong financial performance
2. First provider to introduce 3.5G Internet speed up to 7,5Mbp...
Positioning
Price (+) & Quality (-) Price (+) & Quality (+)
Price (-) & Quality (-) Price (-) & Quality (+)
Bundling Produ...
Bundling Product (-) & Package (-) Bundling Product (-) & Package (+)
Reliable Network (+) & Valuable Cust.Service (-) Rel...
Marketing Mix
 Product
XL Prepaid is a telecommunication service paid based on direct payment system. The
benefit of XL P...
 Place
XL has spread out its coverage around Indonesia except Maluku which is on the
process to create the network there....
OBSTACLES AND PROBLEMS FACED DURING THE MARKETING STRATEGY
IMPLEMENTATION
Every company must face what it is called obstac...
HOW COMPANY FIGHTS ITS WAR ON MARKET COMPETITION AND ITS
RESULT
Here are some financial data which XL is going through fro...
The XL strategy in 2007 was building coverage, XL covered 90% of population. By knowing
what its best for their consumer a...
KEY SUCCESS
1. “The challenge for us is to remain innovative in order to grow our revenue and
subscriber base. There are o...
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Pt excelcomindo pratama tbk

  1. 1. PT. Excelcomindo Pratama, Tbk. Marketing Assignment By: Susanna S. R (3094002) Eka Darmadi (3094802) Levina Rolanda (3094804) Gerry Geraldo (3094806) Christopher Tongku (3094809) May Eka (3094814) Didi S. (3094816) Faculty of Business and Economics University of Surabaya 2010
  2. 2. INTRODUCTION AND HISTORY OF THE COMPANY PT. XL. Axiata Tbk. (XL) was established in 1989 with its name PT. Grahametropolitan Lestari. Telecommunication was not the main business at that time as its business was in trading and general services. This company is owned by Axiata Group Berhad (86.5%), one of the largest cellular players in the Asia Pacific region, Emirates Telecommunications Corporation Ltd. International Indonesia (13.3%), Middle East and Africa largest cellular provider, and the public (0.2%). Starting commercial operations in 1996, XL is currently one of the leading and highest-growing mobile and cellular services providers in Indonesia, serving 31.4 million subscribers across the country by the end of 2009. XL has continuously proved itself to be a pioneer in delivering cutting-edge technologies to the telecommunications market in the country, launching the first and highest speed 3G-HSDPA (High Speed Downlink Packet Access) and more recently, through its various ground- breaking BlackBerry packages and applications. To better serve the international market, XL has also developed strong partnerships with more than 357 international providers in over 140 countries. Through its corporate values : Integrity, Teamwork and Service Excellence, XL is committed to continuously enhance its capabilities, in efforts to be the preferred telecommunications provider in Indonesia, providing extensive coverage and quality, anytime and anywhere. 1996 Obtained GSM 900 operating license and commercially launched its GSM services with focus on Jakarta, Bandung and Surabaya. 1997 Established an integrated microcell network in Jakartaʼs Golden Triangle area. 1998 Launched proXL, its prepaid cellular service brand. 1999 Entered Sumatera and Batam markets. 2001 Received a DCS 1800 spectrum allocation and finalized its fiber optic backbone. Launched M-banking and M-fun services. 2002 Expanded its network coverage to Kalimantan and Sulawesi. Launched leased line and IP (Internet Protocol) services. 2004 Revitalized the XL logo and individually marketed its prepaid and postpaid brands: jempol (prepaid), bebas(prepaid) and Xplor (postpaid). 2005 Became TM Group subsidiary company and enlisted in Indonesia Stock Exchange (previously known as JSE) under EXCL stock code. 2006 Launching XL's "The First Broadest & Fastest" 3G services.
  3. 3. 2007 Introduced its Rp1/minute tariff. ETISALAT became a shareholder. ETISALAT is the second largest telecommunications company in the Middle East. Started to consolidate brands under XL prepaid and XL postpaid. 2008 TM Group completed its demerger of TM International Berhad (TMI), whereby Indocel Holding Sdn. Bhd, a subsidiary of TMI, acquired all XL shares owned by Khazanah Nasional Berhad, increasing Indocel Holding Sdn. Bhd.ʼs stake in XL to 83.8%. OVERALL INDUSTRIAL AND MARKET FORM AND STRUCTURE CONDITION Overall Industrial XL has now taken the lead in the industry as the cellular telecommunications provider with extensive coverage throughout Indonesia. It provides services for retail customers and offers business solutions for corporate customers, including voice, data and other value-added mobile telecommunications services. XL operates its network with GSM 900/DCS 1800 and IMT-2000/3G technologies. XL also holds a Closed Regular Network License, Internet Service Provider (ISP) License, Voice over Internet Protocol (VoIP) License and Internet Interconnection Services License (NAP). Market Form Xl has enter the oligopoly market form which many company also selling the same product and it is generally such a branded product. To enter this market, we have to face many barriers and also we have to make the promotion and the marketing of our product stronger than before. This market form creates such interdependence with your company and your competitor. Somehow you cannot just rely with your own pricing and investment decision but the firm has to adjust their pricing and output to other firm which will create a likely reaction in order to take consumer attention. Structure Condition As we all know that the market structure which is usually seen from the increasing number of participants and market share will determine the company’s market conduct or behavior, which can ultimately affect firm performance. Usually it started with the increasing number of sellers then the competition will increase, so that profits will decline. Meanwhile, the
  4. 4. degree of product differentiation, knowledge sellers and buyers about its products and the existence of barriers to market entry also affect the strength of the seller in the market. XL as one of the telecommunication service providers has faced into a competitive telecommunication market which it has to struggle to face every action that the competitors took. And as one of the GSM service provider, it knows the competitors which provide the same type of product and give fierce move against us. The structure condition of the market according with the same type of product to offered. Company Product type Hutchison 3 Indosat IM3, MENTARI, MATRIX Natrindo AXIS Telkomsel SimPATI, KartuAS, KartuHALO MARKETING STRATEGIC OVERVIEW Target Market Product Type Target Market XL Prepaid Teenagers XL Postpaid Business people Segmentation Excelcomindo position its brand into few segment. Such as its prepaid product which is targeted to middle to lower economic as well as the teenagers. The latest offer for this prepaid product such as just one minute call and you will get so many bonuses like a thousand sms, a hundred minutes free call, a free 1 MB internet access obviously reflect its segmentation. And for the postpaid product which offers not just the call activity but also internet banking and information facilities such as price of gold, foreign currency, etc that reflects what the businessmen and young professionals need is for nowadays.
  5. 5. S.W.O.T XL Strength 1. Cheaper Call also SMS rate than other 2. Have lot of content in “XL Life” 3. The Largest Blackberry user 4. Steady Growing Customer Base 5. 3G Coverage Area Weakness 1. Signal issue that state XL can’t reach all region of Indonesia 2. The Internet bandwidth overload 3. Lack in system to backup the new process 4. Lack of skilled employee 5. Lack of network when they busy Opportunity 1. Can be the first provider in all “Young” Heart 2. Expand the business for 4G technology 3. Increasing 3G network in Indonesia 4. Mobile Internet Expansion 5. Research and development for new technology Thread 1. Other Provider can also give cheaper price for call and sms 2. Economic condition of Indonesia 3. Government regulation 4. Every phone will bundling with other provider 5. The wheatear broken the telecommunication line
  6. 6. S.W.O.T TELKOMSEL Strength 1. Strong financial performance 2. First provider to introduce 3.5G Internet speed up to 7,5Mbps 3. Have million of loyal customer in Indonesia 4. The signal can reach until the small town in Indonesia 5. Have lot of tender and bundling phone using Telkomsel Weakness 1. The price is higher than usual 2. Customer Service is very busy and customer must wait for long time 3. Limit of the company product 4. Lack of skilled employee 5. Can’t reach bigger market in young and teenagers Opportunity 1. Get partnership with apple (iPhone) 2. Future technology by 4G Network 3. R&D For the next market 4. Get partnership with Blackberry Thread 1. The weather damage to antenna and transmission line 2. VoIP directly competes with other wireless business 3. Other competitor has partnership with big company like Apple 4. Economic condition in Indonesia
  7. 7. Positioning Price (+) & Quality (-) Price (+) & Quality (+) Price (-) & Quality (-) Price (-) & Quality (+) Bundling Product (+) & Package (-) Bundling Product (+) & Package (+)
  8. 8. Bundling Product (-) & Package (-) Bundling Product (-) & Package (+) Reliable Network (+) & Valuable Cust.Service (-) Reliable Network (+) & Valuable Cust.Service (-) Reliable Network (-) & Valuable Cust.Service (-) Reliable Network (-) & Valuable Cust.Service (+) Internet Service (+) & Blackberry Service (-) Internet Service (+) & Blackberry Service (+) Internet Service (-) & Blackberry Service (-) Internet Service (+) & Blackberry Service (-)
  9. 9. Marketing Mix  Product XL Prepaid is a telecommunication service paid based on direct payment system. The benefit of XL Prepaid: 1. Text messaging more munificent. 2. Have variety promotional programs (call package, text messaging package, Internet package and BlackBerry package adjusted with your communication needs). 3. Communicate with relative in abroad more easy and affordable (3 minutes and you get 2 minutes free to 5 countries). 4. Can make and receive phone calls (voice roaming) while in the countries that have cooperated in this service. XL Postpaid is a telecommunication service paid based on XL billing payment system. The benefit of XL Postpaid: 1. Pay 3 seconds for 3 seconds call. 2. LANGSUNG KRING registration – Fast Registration Process. 3. Credit Limit – You are able to arrange your credit limit in using XL Post Paid (only valid for National Coverage and exclude monthly cost and tax). 4. Free No Cantik – Based on customers’ desire. 5. Check Online Billing Anytime – Type *108 OK/YES. 6. E-Billing Facility – Post Paid Billing facility through email/web, more updated and can be used anytime. 7. International Roaming Facility in more than 300 Roaming Partner 8. BlackBerry Facility – The first operator on Asia to apply daily BlackBerry tariff. 9. Free National Roaming. 10. 3G/HSDPA data access without registration.
  10. 10.  Place XL has spread out its coverage around Indonesia except Maluku which is on the process to create the network there.  Promotion XL has done some promotion like advertising and public relation. XL always follow the latest trend which happening in global trend such now on when the world is giving its biggest attention to the World Cup 2010, XL advertisement adopt that trend to be their theme for their promotion which is successfully reach public attention.  Price XL always tries to offer the lower price than the other competitor. It offers a method like you do a call activity for a few minutes than you will get a several minutes free from charges. Also the latest promo from XL which if you are using a minute for a phone call then you will get so many benefits, there are 1000 free sms, 100 minutes free call, 10 MB free internet access. In the last press conference in February 19th , the Director President of XL, Hasnul Suhaemi said,” Three years ago with 40 thousand rupiah per month people may did phone call activity for about 29 minutes but now with only 36 thousand rupiah per month people may do phone call activity for about 279 minutes. Xl will keep developing its policies and its service quality to get customer loyalty.
  11. 11. OBSTACLES AND PROBLEMS FACED DURING THE MARKETING STRATEGY IMPLEMENTATION Every company must face what it is called obstacles or problems which are create barrier between what the company want to offer to the consumer. There are some problems that ever occurred in PT. EXCELCOMINDO PRATAMA Tbk.  The last product which XL ever launched to the market, Jempol which is more emphasizing in lower rate for short message service has left behind from another XL prepaid product, Bebas. Then XL compiled it to be one product as XL prepaid that has Bebas’s good factor that has a lower rate in voice conversation and also Jempol’s good factor in lower rate of short message service.  The true challenge for XL internet service provider, cable-based internet provider such as, First Media and Speedy from Telkomsel. But we definitely offer the lower rate once again with unlimited quota to be offered to the consumer. With this way, we may easily penetrate internet provider market.  To face CDMA operator that provide very low price in call activity, XL with the full consideration also launch its CDMA product with 72 rupiah per minute while the other competitor of CDMA set about 80 rupiah per minute.
  12. 12. HOW COMPANY FIGHTS ITS WAR ON MARKET COMPETITION AND ITS RESULT Here are some financial data which XL is going through from the last 5 years. Financial Data Financial Data 2005 2006 2007 2008 2009 Operating Income1 4.302 6.466 8.365 12.156 13.880 Profit1 570 1.028 1.760 1.753 2.464 1 In billion rupiahs Operational Data Operational Data 2005 2006 2007 2008 2009 Total Subscribers2 6.978 9.528 15.469 26.016 31.438  Prepaid 6.802 9.141 14.988 25.599 31.101  Postpaid 176 387 481 417 337 Total Employees 1.854 2.042 2.136 2.097 2.038 Ratio of Efficiency3 3.764 4.666 7.242 12.406 15.426 2 in thousands 3 Total Employees/Total Subscribers As we can see from the data above that show the development of XL from 2005 to 2009, we know that XL has done a great business strategy to keep struggling in the oligopoly market. Actually, in the previous 5 years before year 2005 (2000-2004), XL also did a good performance, but we will just emphasizing the latest development. Eventhough XL has been known for the third biggest for leading mobile telecommunication service provider in Indonesia, XL has always implementing such a good management in the company to keep them move one step forward than before. To explain the strategy in brief within period 2007-2009, we can see the picture below. 2007 Building Coverage 2008 Minute Factory 2009 Driving Value
  13. 13. The XL strategy in 2007 was building coverage, XL covered 90% of population. By knowing what its best for their consumer and what they really need that they don’t need the low rate of telecommunication service but super low rate, XL could drive their consumers by encouraging them to use more minutes and increase traffic with XL’s super low rate offering. These strategies were really effective and efficient, operating income, profit, and total subscribers were increased a lot. The ratio of efficiency was also increased in 2006. In 2008, XL’s operating income has increased a lot from 2007, but actually the profit was barely constant because that was the time that XL was doing a very big business expansion, which the implementation of the “minute factory” strategy in 2008 has made XL as a pioneer in affordable rates. Therefore they had their operating income increased a lot but the profit is still constant. It was very good investment by PT XL Aviata Tbk. The “Minute factory” strategy was very successful and can generate a lot of advancement in 2009. In 2009 the XL’s strategy was “Driving Value” with the name of “Value Beyond Price”, in order to make the consumer satisfied, XL is improving quality until now. XL doesn’t want to only give the consumers with cheap price, but also giving high quality of services. Therefore XL was having the larger profit, profit increased a lot, from 1.753 billions rupiah in 2008 to 2.464 billions rupiah in 2009. With the Operating income increased from 12.156 billions rupiah in 2008 to 13.880 billions rupiah in 2009.
  14. 14. KEY SUCCESS 1. “The challenge for us is to remain innovative in order to grow our revenue and subscriber base. There are opportunities in Indonesia, and we will continue to extend our services through new businesses,” says Daniel Kristanto, manager of technical services in XL’s ERP department. 2. Aggressive promotion campaigns and relentless effort to retain its customers. It means making sure that they get consistently high quality of services. 3. Affordable price with a choice of products and services interesting and provide more value for customers. 4. Improve the customer experience. 5. Ensure adequate management of the network load and maximize the capacity and quality. 6. Maintain profitability by continuously improving market share in line with efforts to keep maintain a lean organization and management in careful cost. 7. Using opportunities in data services and Value Added Services. 8. Improving efficiency in the distribution system for produce distributor network with the performance tall, loyal, and productive. 9. Strengthen the brand attributes. 10. Know your costumer, know your competitor, know your company, and give costumer what they want better than competitor.

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