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1. Executive summary
A. Summary of situation analysis
Sri Lanka Telecom has built over 150 years of goodwill and trust with its valued customers
protecting its brand image and company values. Long vision has guided to practical approach
to reach its mission of the company. Market leader and largest innovation company of Sri
Lanka telecommunication industry has more market capitalization in Telecommunication
industry. The company provides a huge range of domestic and international services which
include fixed and wireline voice, internet and data services that provide to a wide audience
comparing of the both corporate and domestic customers.
This is nation’s number one integrated communication service provider, leading broad group
and support infrastructure service provider for the country. The two ownership of SLT of Sri
Lankan government which holds 49.50% and global telecommunication holdings N.V of
Netherland, which owned 44.98% remaining general public.
The blue chip of SLT’s group companies’ annual turnover is exceed 66 billion and SLT
achieved the more than profit 36 billion in 2013. The SLT group has customer base of over 6
million including Multinomial Corporation, large and small corporate, public sector, retail
and domestic customers
SLT has downed assets from LKR 84,820 million to LKR 83,090 million and through a
process of acquisition and growth. SLT operating 34 regional telecom offices operates 36
teleshops, 22 maintenance center and 7 contact centers all over the country with more than
6000 permanent employees. It has less comparative advantages over to their competitors in
Sri Lanka market
Country’s largest telecommunication service provider has taken necessary steps to developed
telecommunication facility in war affected area like North, and Eastern areas and People's
purchasing power has been growing in using Megaline connection after the freedom in the
that areas also, the SLT opportunities to cover all the areas in Sri Lanka.
.
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At present the Telecommunication connection services market is mostly controlled by
multinational companies. Sri Lanka Telecom works with quality technology to grater to every
Megaline connection. The emerging new requirements of consumers, now the SLT organized
to provide all the telecommunication facility in three ways with Mega line connection,
entertainment and data services with a connection to their customers according to their
different facility.
Megaline is targeting to home and individual consumers, they need an actualization and
acceptance of their palace. Megaline is the market leader in Wireline connection in
telecommunication industry. There are no large competitive to Megaline but, there is strong
brand (Lanka Ball, Dialog CDMA and Suntel) in Sri Lankan market and it will create
competitive to Megaline.
It looks to be communication facility provide to all over the areas in Sri Lankan market. The
services competitive to increased. SLT’s consumers trusted by providing quality, standard,
stable and services. The last year Mealine connection was increased by 1.6 hundred thousand
and total connection acieved1.5 million in 2013
SLT received the distinction of being ranked No.1 on Sri Lanka’s telecommunication
industry. The national telecommunications service provider won silver. This is the first time
SLT has been recognized at the HRM Awards in 2012. SLT was recently awarded ISO
9001:2008 certification for its quality management system.
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B. Summary of marketing objective
 Retaining existing customer - by promoting best facility can retain the existing
consumers.
 Increase sales from existing customer- SLT have primary focus and that is increase of it is
sales. The increase sales objective will make the future profit margin.
 Developing new customer - The development of geographical areas to Megaline
connection will increase new customers.
 Increase usage of produce usage - by developing the innovation technology will increase
the usage of Megaline users.
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C. Summary of marketing strategies
SLT simply develop the marketing strategies by having some special resources. That strategy
focuses on SLT Megaline’s future market success. Since, the high demand for Megaline
connection as individual and corporate consumers. Megaline connection high cost compare
than other land phone connection to company as well as to the customers, but demand for this
connection has not come down. SLT Megaline corporate marketing goal is to become the no
one telecommunication service provider in the local telecommunication market while
providing ethical service to their customers.
The result of marketing mix implemented the SLT’s marketing strategies.
 Product strategy – SLT product is target the different customer to different product
packages. The product packages continue developed by containing voice, data and
entertainment. The packages also clear and quality to cover all the areas consumers in Sri
Lanka
 Pricing strategy – SLT Megaline is high valued support to their revenue of SLT. Product
line pricing increase the valuable packages as well as increase revenue to SLT also,
Megaline has use market product line pricing and penetration pricing strategy to capture
the market.
 Promotional strategy - The promotional campaign of Megaline mainly focuses on quality
of services. The percentage of marketing budget is spent on media advertising while
lesser is used for sales promotion. The promotion campaign is in clear position in target
segment.
 Distribution strategy - SLT operating 34 regional telecom offices operates 36 teleshops,
22 maintenance center and 7 contact centers all over the country with more than 6000
permanent employees. All are support to develop the Megaline connection.
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D. Summary of Financial Projection
The financial strength of SLT has by their sales. The operations of Sri Lanka Telecom
include in the main the Megaline Citylink, Peo TV, and Broadband. The Megaline
connection support is necessary to SLT.
In 2013, although aggressive competition, SLT retained its position as the certain type of
market leader in the telecommunications industry.
SLT achieved more than profit 36 billion. The SLT group has customer base of over 6
million including Multinational Corporation, large and small corporate, public sector, retail
and domestic customers. The analysis finance information assumed the secondary data of
2013 annual report
The cost of the promotion activities are proper to organize by the budget allocation. The
budget allocation is suitable to organization to Magaline connection. The Gant chart is
confirmation of one year allocation plan to Megaline connection.
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2. Vision and Mission
Vision
All Sri Lankans seamlessly connected with world class information, communication and
entertainment services.
Mission
You're trusted and proven partner for innovative and exciting communication experience
delivered with passion, quality and commitment.
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3. The company
Brief history
Sri Lanka Telecom (SLT) has built over 150 years of goodwill and trust with its valued
customers protecting its brand image and company values. It has started their operations in
1858 where the first Telegraphic Circuit established between Galle and Colombo and also the
first international telegraph communication established between Ceylon and India. In 1991
Sri Lanka Telecom became a Corporation.
In 1911 SLT has established as Central telegraph office where the installation of Automatic
Telephone Exchange established at Kahawatta in Ratnapura District in 1931. 1935 was a
golden era where International Telephone Service inaugurated.
The journey in 1991 the first Sri Lanka telecom corporation formed and they have introduced
packet switching service (1993), internet and email service (1996) and in the same year SL
corporation converted into a public company.
From the days when it was a part of Sri Lanka’s Department of Post and Telecommunications
through to the present day, the company boasts a long and rich history. Now a fully integrated
telecommunications operator.
A public Limited Liability Company incorporated in Sri Lanka in September 1996 under the
Conversion of Public Corporations or Government Owned Business Undertakings into Public
Limited Companies Act No.23 of 1987 and quoted on the Colombo Stock Exchange in
January 2003.
The year of 1997 Sri Lanka Telecom privatized with the collaboration of Nippon Telegraph
& Telephone Corporation of Japan and listed in the Colombo Stock Exchange's Milanka
Price Index.
SLT is one of Sri Lanka's most valuable blue chip companies with an annual turnover in Rs
60.14 billion. Sri Lanka Telecom provides the services broadband and backbone
infrastructures services to the counter.
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SLT received the distinction of being ranked No.1 on Sri Lanka’s telecommunication
industry. The national telecommunications service provider won silver. This is the first time
SLT has been recognized at the HRM Awards in 2012. SLT was recently awarded ISO
9001:2008 certification for its quality management system.
Current size, the areas where the company is operating, growth and profitability
 Current size - SLT has downed assets from LKR 84,820 million to LKR 83,090 million
(2012 to 2013)
 Branches - SLT operating 34 regional telecom offices operates 36 teleshops, 22
maintenance centers and 7 contact center all over the country and more than 6000
permanent employees.
 Products and services - The telecommunication industry's products are telephone services,
internet services, Digital Tv and IT services.
 Growth and profitability - In 2013, End of the year revenue increase from LKR 34.72
billion to LKR 36.78 billion
 Ownership - SLT is a most valuable blue chip company to Sri Lanka’s economy. This is
nation’s number one integrated communication service provider, leading broad group and
support infrastructure service provider for the country. The two ownership of SLT of Sri
Lankan government which holds 49.50% and the other party is global telecommunication
holdings N.V of Netherland, which owned 44.98% where the remaining balance own
with the general public.
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3.2 Internal environment
a. Staff relations
SLT which is in telecommunication and the core competence involved is providing excellent
services to customer of the company, needs to have a set of dynamic, pleasant, set of
employees from the lowest level to heights level. They in turn need to delight their consumers
in order to attract customers as well retain them in the future.
SLT has organized award ceremonies to encourage all their staff, individuals to become
champions of change. SLT continued to motivate thorough star award, sales excellent award,
services excellent award and etc.
SLT is a kind of challenging organization where it encourages its staff to learn through their
experience as well they already provided infrastructure facilities on libraries, 3 playground
facilities mainly in capital city. The SLT conduct annual income and digital life magazines
and also paper articles in Sinhala, English and Tamil languages available for internal and
external parties of SLT.
Sri Lanka Telecom has been a good employer. It has providing its staff many attractive
activates. This includes loan facilities al low rate, annual sport meets, trips, cultural programs,
Quiz competitions are some of the activities and events organized by SLT in order to build
good relationship between company, and employees as well as with their valuable customers.
b. Resources and limitations
The following shows some resources of SLT and its characteristics.
 Human resources - The main resource of SLT is the human resource. Since SLT is the
service sector, providing services to its clients, its needs to have vast number of staff.
SLT would include assessment of the existing staff’s function, location, existing rate loss
experience as well as overall standard of training and specific training standards in key
roles.
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 Financial resources -The finance resource has working capital, creditors, cash balance,
bank overdraft as well as bank loan for investing new product expand the distribution
channel.
 Physical resources - These includes location of existing production facilities, capacity and
maintenance requirements and current production process of quality, method &
organization, IT system as well distribution channels.
c. Corporate structure and culture
Corporate culture
Culture is sum of total learned values, beliefs, customs that are served to direct consumer
behavior in a particular country market. Although structure is the arrangement of parts, as
was indicated previously, culture will influence how these parts interact.
SLT culture is a very friendly one which always has been in the organization for both its
internal and external customers. The authorization and better understanding on their culture
and how to transform it, is a critical skill for leaders in SLT, trying to achieve strategic
outcomes. Strategic leaders have the best perspective, because of their position in SLT, to see
the dynamics of the culture, what should remain, and what needs transformation as well as
the rules and regulation are minimized and a very flexible approach to handle issues.
Corporate structure
SLT holds a horizontal coordination structure flexible design in order to achieve their
ultimate goals and objectives. SLT’s structure affects individual motivation and
performance. So, if people are placed in positions for which they are unsuited or allocated
work for which they are not competent there will be a detrimental effect on motivation and
performance.
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Formal structure of Sri Lanka Telecom
Chairman & the board of directors
Audit
committee
Remuneration
committee
Technology
sub committee
Senior tender
board
CEO
Leadership
Team
Synergy
Group
Operational
Review
Team
Revenue
Assurance
& Fraud M
Management Committees and their composition
Product
Marketing
Forum
Informatio
Security
Mgmt.
Forum
Strategic
Governance
Board
Enterprise
Solutions
Governanc
e Board
Transform
& C G
Board
Product
Governance
Board
IT
governance
Board
Network
governance
Board
Facilities &
Services
Governance B
Company
Secretary
Nomination
committee
Enterprise
Risk
Managemen
t
Steering
Committe
e of Q M
S
Quality
Mgmt.
System
Cross
Functional
Governanc
e
Secretariat
Board Committees and their composition
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4. The product/ service
4.1 General product story
General product story
The electric telephone was invented in the 1870s, based on earlier work with harmonic
(multi-signal) telegraphs. The first commercial telephone services were set up in 1878 and
1879 on both sides of the Atlantic in the cities of New Haven and London. Alexander
Graham Bell held the master patent for the telephone that was needed for such services in
both countries. The technology grew quickly from this point, with inter-city lines being built
and telephone exchanges in every major city of the United States by the mid-1880s. Despite
this, transatlantic voice communication remained impossible for customers until January 7,
1927 when a connection was established using radio. However no cable connection existed
until TAT-1 was inaugurated on September 25, 1956 providing 36 telephone circuits.
So, the way to Sri Lanka Telecom PLC (SLT) provides a variety of domestic and corporate
services which includes fixed and wireless telephony, internet access and IT services to
domestic, public sector & business sector customer.
This Meagline product introduces 3 type service verities. For example, voice only (Single
Play) customers, voice and broadband (Double Play) customers and voice, broadband and
PEOTV (Triple Play) customers have three different call rates. Their Triple Play services are
ready to provide unmatched future experiences to entertain their customers.
a. Development, introduction and history
Telephone connection is the core service of SLT Megaline. It is (wireline) expand in 2010.
The Megaline telephone connection has more experience in the industry. It is expanding
different variety to consumers. The Megaline strategy helped sustain their market share in the
fixed line sector (Megaline and Citylink). The Megaline strategy helped sustain their market
share in the fixed line sector (Megaline and Citylink) 57% in 2013.
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SLT Telephone connection comprehensive connection include many salary features and
benefits for it users.
b. Product category and characteristics
SLT Megaline Company is offering its wireline connections through a variety of packages
that enables people the freedom to choose which services they want, especially broadband,
internet and voice value added services, as well as making wire Magaline connectivity more
affordable to the public.
Sri Lanka Telecom (SLT) has reduced its prices of wire line connection with the introduction
of SLT Megaline, a product with variety. SLT Megaline includes of three packages to home
and office. Also the multi services of Megaline enjoying their consumer.
The SLT Megaline services offer three packages
Services
offered
Calling plan Free services Connection charges
Triple play Mega home or mega
office
Triple play vas bundle 10,000
Double play Mega home or mega
office
Double play vas
bundle
Voice + broadband
without CPR* Rs 7,000 or
Voice + Peo TV RS
11,000
Single play Mega home or mega
office
Single paly vas bundle 12,000
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c. Stage of product life Cycle
Development Introduction Growth Maturity Decline
SLT Megaline
Pre - launch Post - launch
After pre- launching Megaline connection to Sri Lanka telecommunication market in late 150
years, however due to the increase a purchasing of a new connection.
The introducing the SLT Megaline they have come across to the maturity level if PLC with a
specific time period. So, far the product life cycle in concerned, I would say SLT Megaline
connection is still in its maturiry levels.
The major reason is still Megaline keep the SLT is monopoly business of the availability of
resources and competitors. In market competitor are not high market share and still not
entering because still they are fail to invest huge investment on a new product like SLT
Megaline connection. Also SLT Megaline promises to provide high standard service to
existing and potential customer. So this reasons to say SLT Megaline is still in its maturity
stage.
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d. Any other important characteristic of Megaline
 Crystal clear voice
 Offer of voice, broadband and Peo TV services through a single line
 Single number for generation
 Safe to use - No radiation
 Island wide network coverage
 Line that is always connected - No utility powder requirement for telephone use
 Business customers are benefited when making longer call due to reducing call charges
after 3rd minute.
 Extended off-peak time band for home users
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5. The overall market (Customers)
5.1Description of the characteristics of target customers
a. Need and benefit sought
SLT Megaline’s target market is domestic customers and business organization. The
government is looking the effective and efficient service. The future segment will concern
and looking for reasonable effective and efficient service at these 3 way service in one
connection.
With SLT Megaline lot of beneficial service can made in unbelievable manner. Because, of
the increasing buyer of the people growing day by day so they need some establish service
and further for many communication requirements. At the same time government and private
sector organizations demand for internet service where they deal with day to day business
which requires quality, speedy service. In further entertainment will have a good place in
public places and domestically people who spend busiest life style.
At the same time government and private sector organizations demand for internet service
where they deal with day to day business which requires quality, speedy service. In further
entertainment will have a good place in public places and domestically people who spend
busiest life style.
b. Product usage
SLT Megaline connection mainly used by
 Home (individual consumers)
 Office (corporate consumers)
Who is using – SLT Megaline connection mainly used by users and upper middle class
families and also business and government.
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Why they use – Because consumers market need and benefit. The clear connection, network
speed and connection expand facilities to Peo TV as well as broadband.
When do they use – The consumer mostly using at home to communication their friends and
family as well as organization use official work.
How it is used - SLT Megaline has three types of services but the mainly consumer use
telephone connection because, otherwise they have to go for three separate service to get
those services.
c. Attitudes of the customer
i. As to Product category
Since the SLT include Megaline connections, enjoyed by consumer all over the Sri Lankan
target market has a high regard toward the product category. This is sharp by the mind of Sri
Lankans that perceives products high local brand and high quality.
Moreover the consumer consist the entire SLT services category offer the high quality and
clear services. Typically consumers would associate mainly due to face that the majority of
the consumers perceive Megaline connection to be SLT Megaline Brand. Therefore they give
more preference to Megaline connection when compare to the hug range and
Telecommunication products.
The Attitudes of the customer towards to these products category is depend on various topics.
Such as mainly on the income, affordability, requirements, life styles, family remembers,
quality of service, availability, after sale services, changes of the family etc.
ii. As to company’s product
SLT Megaline customers have positive attitude toward services, as the company service is
good quality and clear services by the consumers as SLT is telecommunication industry
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Since, SLT Megaline connection is a brand of the Sri Lanka first licensed the
telecommunication industry which function the principal brand is. The consumer associates
the quality of services, safety and care with excellence customer services of the category.
Megaline telephone connection is a very positive. Since the services of dedicate relationship
officer and the clear facilities are fast, the customers satisfaction is a high state and the
opinion of customers towards SLT Megaline connection is very positive.
iii. Why they like our products or not
The major reason the customer of SLT Megaline connections like this product. SLT products
in that the fixed line which facilities 3 service communications, most of the demand for their
latest technology development along with the delight customer service. Mainly, This 3 in 1
facility use by banks, hotels, shops, private and government institutions etc.
iv. Any unique character of customers
Unique character of our customer can be whatever the segment who are looking for stable,
speedy cost effective connection. And also another unique character of the customer is they
build bonds with SLT because of the delight customer service. Time, Quality, service, Trust,
relationship are the powerful factors to create unique customers at SLT
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5.2 Description of the purchasing process
a. Buying decision making process
When it comes to the purchasing process of the B2C segment they will have a buying process
as follows for the total drive.
 Problem recognition - This is first stage of the purchasing decision where the buyers
recognize a problem or need. This need can be generated by internal or external stimuli.
Generally consumer of the stage using Megaline services is low quality or slow level.
There are not in safe hands and they cannot enjoy their freedom to grow and
communicate with others.
 Information services - An aroused customer will be motivated to search for more
information through internet and external data source, they use various banking industry
data source, their web sites and advertising then they getting the details. Also, in this
stage customers can visit the each SLT branch and collect the details, they collect from
their friend and working partner.
Information search
Evaluation of alternative
Purchase decision
Post purchase behavior
Problem recognition
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 Evaluation of alternative - Once customers gather all the information they evaluate the
various option available. When evaluation the potential alternatives, customers use two
type of information. The first is the list of SLT Megaline branch from which they plan to
make their selection and second is the standards from which they plan to make their
decision. Evaluation often reflects beliefs and attitude and these are acquired by
experience and learning.
 Purchase decision - In the purchase decision stages consumer forms references the
brands. The customers may also from intention to buy most preferred brand. In executing
a preferred intention the customers considered sub decision such as brand, customer
services, timing and product features.
 Post purchase behavior - After the purchase the consumer might experience dissonance
than stems from noticing certain disquieting features or hearing favorable things about
SLT Megaline brands and will be alert to information that supports consumer decision.
However in the B2B market segment for Megaline connection there will be influencer,
gatekeepers, approvers, buyers and users
b. What source of information is sought?
The source of information sought for the Megaline connection of SLT can be identified as
 Public - Megaline connection knowledge can be also be obtained through source such as
mass media, consumer rating organization.
 Commercial - Information provided by the company in the form of advertising, website,
Facebook, fun page marketing shelf people and display about the Megaline connection
 Personal - Information obtained from working partners, religion group, family, friends
and acquaintances about the Megaline connection.
 Experimental - The information obtained from consumer through handling, examining
and using then Megaline connection.
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c. Who makes the purchase?
Some people purchase the Megaline connection and mainly home (individual) and officers
(co-operate) are making purchase, because they also know the services benefit connection.
The home connection purchases of personal user the variety of services. The head of
organization has to decide and approval the purchase of the Megaline
d. Is purchaser the consumer?
Yes, in most of times the purchaser can be the ultimate consumer or the end user for example
in domestic scenario but when it comes to organizational level consumer and the purchaser
can be two different parties but the purchaser can be the consumer in an indirect way.
e. Who or what may influence the purchase?
The influencers to the decision making units
 Family and Friends
 Office friends
 Advertising and promotion
 Relations
 Past experience
 Quality of services
 Multiple connection
The main segments in domestic scenario influencer can be other family members where
in organization staff, peers, can be influencers to make the purchase.
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6. Competition and market share
6.1 Identification of competitors
a. Primary competitors
The 2 type of primary competitors
 Lanka Bell
 Dialog CDMA
 Suntel
The three types of primary competitors are providing the same service or would be
considered as substitutes belonging to the same industry. SLT as the market leader, it would
look at those companies coming in second, third, and fourth and so on. Primary competitors
within an industry are competitors that offer a nearly identical product or service.
However, SLT does not have any direct primary competitors where they are the innovators
and monopoly service provider in fixed wire telephone line. Because other competitors are
not arriving at all segments where they are unable to afford huge cost on targeting all
population.
b. Secondary competitors
Secondary competitors are the mobile communication service providers .
 Dialog
 Etisalat
 Mobitel
 Airtel
 Hutch
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Secondary competitors are offering same products, services and marketing. Secondary
competitors offer a substitute good or service, which might be of a lower quality but still
related.
c. Possible new competitors
 PC house PLC - PCH is forefront of Sri Lanka's ICT industry providing a complete
solution for all the market in a computer hardware, software solution and value added
services. PCH was recently listed among Sri Lanka's 50 valuable brand of 2012 published
by brand finance Lanka and media services with honorable A+ bran rating. The strength
will that company will come to the telecommunication industry in Sri Lanka.
However, the possible new competitors may be in any time with new technology and satellite
facility with lower rates. Competitors may arrive at the moment no any such details or
information have find or heard by SLT.
6.2 Market share
a. Total current industry sale by market
Customers of the local wireline telecommunication market are catered by local
telecommunication companies. Local wireline telecommunication requirements in total
market are being supplied by the three industries. SLT, Lanka ball and Dialog are the three
suppliers. Also, Dialog has another separate Suntel wireline connection in Sri Lanka.
There is a total market size of Rs.13 billion annually, related to wireline telecommunication
connection in local market. But this amount will vary according to the growth or decline of
flexible packaging requirements of the customers.
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b. Comparative analysis of market share held by the company and competitors
The local wireline telecommunication market is consisted with 3 services. The local market is
catered by the local telecommunication in Sri Lanka. A comparative analysis of the market
share is mentioned in below table:
Company Market share in
connection
Market Share in Wireline
connection Market
Sri Lanka Telecom 1,571,309 57%
Lanka Bell Limited 634,037 23%
Suntel Ltd 41,3502 15%
Dialog Axiata PLC 137,834 5%
Total 2,756,682 100%
Market share of Wireline connection
57%
23%
15%
5%
Market share of Wireline connection
Sri Lanka Telecom
Lanka Bell Limited
Suntel Ltd
Dialog Axiata PLC
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c. Trends and future growth
 Significantly from the relatively SLT Megaline market which is currently as high as
51%, while 57% of connection.
 Aggressive increase in demand for Megaline due to the rise in disposable income of
people
 There is a significant interest for entertainment among the people and hence more
customers tend to watch foreign channels more than the local channels.
 Usage of Megaline by government and private organizations has significantly increased.
 The country’s Internet sector remained underdeveloped, with the take up rate of
broadband services being especially low; there were however signs that this was starting
to change.
 Fixed broadband penetration (as a percentage of population) was still only around 2% in
2013.
 The government having established the National Broadband Consultative Committee
(NBCC) in 2010, there was little evidence of it having any great impact into 2013.
d. Expected total market (demand estimates) what except in future
In 2013 financial year SLT Megaline revenue increased by 12% by adding additional 100,627
subscribers in 2013. Expected market demand is 1.75 million Megaline connection
subscribers for the year of 2014. Aggressive marketing strategies will be developed on
achieving the stated market demand and further increase the market penetration of SLT
magaline.
After the end to the war, it has become more than superficial that Sri Lanka Telecom has a
catalytic role to play in the development of the country as a whole. While physical
infrastructure is being established, connectivity remains the key to holistic development. It
was in line with this that we launched our new corporate vision, mission and values which
take us further towards transformation and customer centricity.
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Together with their values which encompass customer care, trustworthiness, innovation,
responsiveness, teamwork, excellence and the drive to achieve superior results, they have
already laid the foundation for their pragmatic vision in placing the trusses to transform their
traditional network to a Next Generation Network, investing considerably in infrastructure,
technology, training and development and other related functions
6.2 Describe following details of two player in the market and any other competitor that
would pose a threat to you or that you would be fighting with in order to enter into the
a. Background of competitors
I. Company and its size/ type
Lanka Bell Limited
Lanka Bell is a world class telecommunication
operator that provides a full range of
telecommunication service to business and
residential customers in Sri Lanka.
Dialog Axiata PLC
Dialog Axiata PLC is Sri Lanka's largest
telecommunication services providers. The
second fixed line operates in Sri Lanka.
II. Reputation
Lanka Bell Limited
Lanka ball's creation is introduced land
connection to telecommunication market. It is
ISO 9001:2008 certificate company.
Dialog Axiata PLC
Dialog Axiata PLC is the largest and fastest
growing cellular service in Sri Lanka also
operates. Dialog proud sponsor of the Sri
Lanka cricket team.
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III. Sales force and their expertise
Lanka Bell Limited
 Has expert sales and marketing team
Dialog Axiata PLC
 Has large sales force and good
experience
 Include sales special
IV. Financial strength
Lanka Bell Limited
 Have a financial resource to covering their
business operation.
Dialog Axiata PLC
 Have a good financial strength (total
assets 91,238,008,000.00 end of 2012
from 83,513,242,000.00 end of 2011)
 Investment increased
V. Technology used
Lanka Bell Limited
 WiMAX
 4G LET
Dialog Axiata PLC
 WiMAX
 4G LET
 Wi-Fi
VI. Any other important aspect
Lanka Bell Limited
 Foch the Wireline connection only
Dialog Axiata PLC
 Focus the Wireline connection with
Mobile connection, broadband and
Dialog TV.
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b. Current product strategy of competitors
Comparative analysis of competitor’s product strategy
i. Product mix
Lanka Bell Limited
Two type of CDMA phone
 Domestic Bell residence has Postpaid
services, pre-paid service, broadband,
IDD service, other features of SMS, email,
Voice SMS, bell tunes.
 Corporate Bell enterprise has Enterprise
voice, enterprise data, International
connectivity, BPO, Bell fax , Risk
management press ads disaster recovery
Dialog Axiata PLC
Three type of fixed line packages
 Huawei FP 2025 has SMS, Notifying the
incoming call number in voice, Voice
recording of an incoming call, Caller ID
display, call forwarding, call waiting, call
holding, call barring and three-way
calling
 ETS 2022 has SMS , CLI, Phone boom,
Polyphonic ringtones
 ETS 2029 has SMS , CLI, Phone boom,
Polyphonic ringtones
ii. Branding and packaging
Lanka Bell Limited
 Lower rate to IDD packages
 Lower rate to night packages
 Infinity plus package of 1000 minutes &
500 minutes
Dialog Axiata PLC
 Lower rate to IDD packages
 Lower rate to Dialong mobile call
29
iii. Positioning
Lanka Bell Limited
 Earlier consumer continue the services
Dialog Axiata PLC
 Faster network than others
iv. Image and reputation of brand
Lanka Bell Limited
 Focus only the wireline connection
Dialog Axiata PLC
 Reduce the call charge to dialog mobile
phone.
v. Product strength and weakness
Lanka Bell Limited
 Strength – more connection is continue the
without termination.
 Weakness – Not available with Wi-Fi
services, Low percentage to getting new
connection.
Dialog Axiata PLC
 Strength – coverage focus all the
consumers in Sri Lanka.
 Weakness - Low percentage to getting
new connection
30
c. Current distribution strategy of competitors
Comparative analysis about the competitor’s distribution strategy
i. Type of distribution network used
Lanka Bell Limited
The distribute through the branch & teleshops
Dialog Axiata PLC
The distribute through the branch &
teleshops
ii. Evaluation of how distribution targets accomplished
Lanka Bell Limited
 Get more market share
 Achieved profit margin
Dialog Axiata PLC
 Achieved sales target
 Reach target market
iii. Relationship with channel members
Lanka Bell Limited
 Teleshop
 Regional branch
Dialog Axiata PLC
 Teleshop
 Regional branch
iv. Strength of the channel members
Lanka Bell Limited
 Lager distribution in Sri Lanka
Dialog Axiata PLC
 Have a good market network
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d. Current price strategy
Comparative analysis of competitors prices
i. Pricing objectives
Lanka Bell Limited
 Increasing profit margin
 Attractive large consumers
 Increasing market share
Dialog Axiata PLC
 Increasing income
 Increase sales
ii. Pricing strategy
Lanka Bell Limited
 Use market skimming price
 Low call rate
Dialog Axiata PLC
 Cost based pricing strategy
 Giving discount
iii. Buyers attitude about the company prices
Lanka Bell Limited
Consumers think, Lanka ball lowest price with
quality services
Dialog Axiata PLC
Consumers think, Dialog CDMA quality
services is lowest price communicate with
dialog mobile
iv. Channel attitude of about the company’ price
Lanka Bell Limited
 Have a suitable price
Dialog Axiata PLC
 Have a suitable price
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e. Current promotional strategy
Comparative analysis of competitor promo tool and campaign
i. Promotional objectives
Lanka Bell Limited
 Increase the sales
 Increase the profit
 Get brand loyalty
 Inform new offers
Dialog Axiata PLC
 Increase sales
 Increase the profit
ii. Strategies and themes used
Lanka Bell Limited
 Two packages get 500 or 1000 minutes
outgoing to promote local call consumers.
 Viza card promotion to the models and
other country to low call rated for getting
foreign consumers.
 With lowest IDD rates to India and75%
less cost IDD call for getting foreign
consumers.
Dialog Axiata PLC
 75% less cost IDD call for getting
foreign consumers.
 Loa call rate to Dialog mobile for getting
local consumers.
iii. Promotional tools used
Lanka Bell Limited
a. Advertising - TV & website
b. Sales promotion - law call rate
c. Public relation - Media conference
Dialog Axiata PLC
a. Advertising - Facebook & website
b. Sales promotion - law call rate
c. Public relation - Sri Lanka cricket team,
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d. Direct marketing – Print campaign,
website & email
e. Personal selling - Directly to consumer
home
donation.
d. Direct marketing - Print campaign,
website & email
e. Personal selling - Directly to consumer
iv. Success and failures of promo campaigns
Lanka Bell Limited
The effective campaign are success
Dialog Axiata PLC
This is effective campaign but the sales are
increase slowly
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7. External Environment factors
PESSTEEL factors
The following PESTEEL factors are some of the key changes that are taking place in the
environment.
1. Political
 Political factors concerning telecommunications industry service is influenced by
Telecommunications Regulatory Commission of Sri Lanka.
 Legislation and condition imposed by TCRSL needed to be followed by every
telecommunication provider in Sri Lanka.
 The government takes measure to improve the economy such as SLT
 Boosting the image of Sri Lanka in global market.
 Continuous change of stand on applicability of labour legislation
2. Economic
 Promise to focus the on rural development of telecommunication facilities and other
essential services by 2011 year fiscal budget.
 The increasing the VAT reduce the customer affordability.
 Telecommunication is in growth phase and this can see through increasing contribution to
GDP and Employment.
 Declining interest rates on borrowings favorable position affordability
 Stable exchange rate
 Sri Lank GDP growth rising to 8.2 % in 2014
3. Social
 The population has been getting old employees. It has increased the pension payment to
staff
 Increasing the working employment is opportunity the market segment.
 The growing hand phone connection will reduce the home connection.
35
 Lack of the labour to work to farms.
 Donated to school, hospital, and festival function.
4. Technological
 World class ICT technology must be effectively benefit the two social and business
economy.
 Lack of adaptation of mobile technology by reduces the Wireline connection.
 Availability of management information systems and other electronic repair services
connection.
 MP3 players, computer games, online gambling and high definition TVs are all new
markets created by technological advances.
 Innovating the connecting quality
 Initial connection cost high
5. Ecological
 To be compliant with legislation and deal with environmental issues accountably
 Design and develop products that have minimum environmental Impact
 Optimize usage of energy and inculcate recycling, wherever possible
 Cascade environmental best practices to all employees through training, education and
development
 Promote environmental care and appreciation of the environment through as many forums
as possible
6. Environmental
 The climate changes in temperature can impact on many industries including farming,
tourism and insurance.
 The growing desire to protect the environment is having an impact on many industries
such as the travel and transportation industries and the general move towards more
36
environmentally friendly products and processes is affecting demand patterns and
creating business opportunities.
 Recognize the impact that their business has on the environment and thus to work in a
manner that seeks to protect the environment and minimize or eliminate any adverse
impacts caused to the environment by their day to day operations.
7. Legal
 Legal factors include discrimination law, consumer law, antitrust law, employment law,
and health and safety law. These factors can affect how a company operates, its costs, and
the demand for their products.
 Faced with the risk of changes in the regulatory environment, and steps are taken to
ensure their willingness to face sudden and unexpected regulatory changes
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8. SWOT analysis
3. G.1 Strengths
 Strong infrastructure and high-performing cable equipment are best in Sri Lanka.
 Aggressive marketing strategy allowing SLT Megaline has good and stable brand loyalty
and Excellent brand image
 As reflected in the financial analysis the financial stability of the organization with all the
current investments.
 The competent sales force and support staff enabling fast services to the client.
 The strong capital background and government support.
 Strong Public Relations that has been built up over the 150 years.
 Strong island wide distribution network.
 Greater level of customer satisfaction via high quality customer support, well established
customer base.
 Skilled and dedicated Management Team
 Have an excellent management process
 Market leadership on Megaline connection services.
3. G.3 Weaknesses
 The structures within the industry or company that are performing poorly or worse than
expected.
 Corroded cable lines, slow service and lackluster sales are three weaknesses that can hurt
for SLT.
 If corroded cable lines aren't replaced and slow service continues, for example, angry
customers will switch to a rival telecommunications company that offers better services.
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3. G.3 Opportunities
 The external structures are outside the company’s control that could potentially benefit
the company growth.
 Technological advances, an increase in communication networks and channels and new
tax incentives.
 The competition not trusts in by the SLT that the long run.
 Outside events that SLT can use to enhancement its existing strengths.
3. G.4 Threats
 The consumers mainly increase to the mobile subscriber identity module (SIM)
 The threat of a telecommunications involves the external structures outside the industries.
 Increasing competition and increased government regulations against the
telecommunications industry are just a few external threats that can limit SLT’s future
success.
 Decrease economy in Sri Lanka not suitable to grow the SLT.
 The new competitors offer fast service and cutting-edge technology to their customers.
 Less demand for telecommunications services that few days.
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9. Sales Objectives
SLT’s marketing plan for Megaline telephone connection is evolved in order to achieve the
expected sales objective. The following sales objectives
“The increase 35% revenue of the Megaline at island wide by December 2015”
The Megaline depends on the achievement of the above mention objectives and this is
profitability of the company. This achievement expects levels making it challenging for the
company to achieve its corporate objectives.
The entire marketing plan will be developed based on the above mentioned sales objectives
and the strategized will also on this objective.
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10. Marketing Objectives
Clearly defined objectives may also provide direction for SLT employees in terms of what to
achieve and in what period. They also serve as motivators for employees by creating an
attainable challenge that they can to strive achieve.
When setting marketing objective it is important to make sure always that should be SMART.
This marketing objective is not only achieving from the new customer but also current
customer retention also important to the company.
Following are some of the areas to be covered to achieve marketing objectives SLT has set.
 To increase overall existing customers of Megaline by 30% within the next 15-18 months.
 To increase the sales of Megaline existing customers by 40% within the one years.
 To increase up to 50% of use of products within the 15-18 months
 To developing new customers by 40 of Megaline within the next three years.
Following are some of the areas to be covered to achieve marketing objectives SLT has set
 Enhance customer experience by being more responsible to customer needs, delivering
high quality services faster with increase value aligned to market requirements.
 Increase the sales use for traditional business, reduce erosion, improve quality of services
and manage cost.
 Develop up to 40% of existing fixed line customers to the three way approach.(voice,
data, entertainment)
 Become market leader of Entertainment service and data service provider.
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11. Segmenting, Targeting and Positioning
a. Geographic
The geographic segment covers entire area of Sri Lanka. In this area, advance systems work
very well together with a Sri Lanka telecom. Therefore specific geographical areas are not
considered as segments. But, there are some significant geographical areas which are
significantly contributed the total Megaline revenue. Sri Lanka Telecom provides located
attractive accurate customers and can produce amazing analysis based on location. The
following the SLT Megaline geographic areas
 Urbana areas and Rural areas
 Regional division
 Geographical perspective on the market brings in many business office areas
 To strongly differentiated by population growth place.
SLT is overall fundamental facility industry in Sri Lanka. The future plan of SLT will cover
all 329 backbone connectivity across Sri Lankan for all operators. The SLT Megaline revenue
increase from wholesales has continues to increase in line with their plan to become
wholesales communicating partner in Sri Lanka. The business geographic segments
opportunities for profitable growth and supporting the connectivity requirements for SLT
Megaline.
The initiatives detailed above, sure demonstrate Sri Lank Telecom's changing your world
concept is seamlessly connecting all Sri Lanka to world class information, communication.
b. Demographic not enough
The demographic trend describes the change that may in certain demographic population over
a period of time. Demographic are often used in public policy, sociology and marketing. SLT
Megaline utilize demographic usually consider several variable and combine them
characterize demographic profile. A demographic profile, commonly referred to as a
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demographic provides sufficient information about a typical create group to create this
hypothetical collective.
Demographic are the traits a human population, demographic segment consist of the
 Family size
 Income
 Home ownership
 Location
 Employment statues
 Education level
 Ethnicity
c. Psychographic
In considering Megalin, our target market has built long term faith towards to the SLT.
Consumers believe the organization and its facility. Customers who earn fixed income,
Government servants and people stabilize their family life most of the time psychologically
would like to have a fixed wire line connection.
This is all about psychological traits of customers including attributes such as
 Personality
 Beliefs
 Values
 Lifestyle
 Attitudes
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d. Behavioral
The most consumers are familiar with a SLT Megaline connection. Behavioral segmentation
divides customers into groups based on the way consumrs respond to, use or know the
Megaline services.
Megaline’s behavioral segmentations can group consumer relationships of
 Customer services excellence
 Quality
 Innovation technology
 Benefits sought
 Brand loyalty
 Produce user rate
 Readiness to buy stage
 Buying center
 Income status
11.2 targeting
Targeting total determination will depend on several factors of SLT Magazine connection.
Target market groups are mainly
 Home (individual consumer)
 Offices ( corporate customers)
The much of the customer demand is driven by price rather than quality of Services, services
fulfillment or service assurance, however at Sri Lanka Telecom, we believe and have strategy
to provide to customer with quality, choice, efficiency and importantly, overall value for
money. This continuously drives our strategy to enhance customer experience by being
responsible, trustworthy, efficient, and reliable and delivering a quality innovation and
44
market focus to Megaline service. Penetration of fixed lines connections household stands at
around 67%.
11.3 Positioning
Sri Lanka Telecom's corporate business can be categorized into the three broad segments of
government agencies and departments, large private sectors and medium to large privet sector
companies. The government sectors include very largely national scale operations such as
ministration, hospital, defense establishment and the police.
Perceptual map of Megaline
Megaline is already positioning moderate price and high quality way in Sri Lanka market.
Absolutely, that moderate price gathers large customers to Megaline brand.
High price
 Dialog CDMA
 Lanka Ball
 Megaline
Low quality High quality
Low price
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12. Tactical marketing mix strategy developments
12.1 Product strategy
The intangible service of Megaline’s product decision has to be made. So, according to
market Megaline connection is now in majority level and they should reposition in themarket.
A product strategy can encompass any number of products, depending on the nature of SLT’s
business. They could have one strategy for each major product or, perhaps, the same strategy
for all of them. For example, the current Megaline multi connections focus the quality of
services to consumers. The Megaline connection is available to different category (Single
connection, double connection, and triple connection) income group in market. Value is add
services with provide the connection to satisfy services to different market segment.
Megaline provides service where their product is the service they offer. Their product
strategy helps them to determine exactly what services to offer. The product strategy
identifies, in broad terms, how you plan to sell your products to your marketplace. That
documents how the people in telecommunication marketplace think about SLT Megaline and
business. It documents how SLT business positions its products and services and it contains
their strategies for selling.
In order to facilitate the responding strategy of the products will change alternative consumer
perception and create image of SLT Megaline. The product strategy is a document containing
any of the following
 Business objectives
 Descriptions of target markets, usually based on results of market research
 Results of research about SLT potential clients and their needs
 How Megaline wants their product to be viewed by their clients
 Product features and benefits
 Selling strategies
 How their product features and pricing compare to their competitors.
 Product changes that might enable better market positioning of their product.
46
12.2 Pricing strategy
SLT must decide as a giant in telecommunication industry is how much to charge for their
product or service. While there is no one single right way to determine their pricing strategy,
fortunately there are some guidelines that will help SLT.
Currently, Mgaline use a competitive and more economic pricing strategy which is in the
currently market products. It available to all income target group as well as different types of
segments.
SLT Megaline industry price has major role. Price is considered the deciding factor for
Megaline connection. However, if a SLT should better services they need to pay higher
premium. The product line pricing is more suitable to SLT Megaline connection.
 Penetration Pricing - The price charged for products and services is set artificially low in
order to gain market share. Once this is achieved, the price is increased. This approach
was used by Sri Lanka Telecom. SLT needs to land grab large numbers of consumers to
make it worth their while, so they offer free telephones or satellite dishes at discounted
rates in order to get people to sign up for their services. Once there large number of
subscribers prices gradually creep up.
 Product Line Pricing - Where there is a range of products or services the pricing reflects
the benefits of parts of the range. For example when it comes to Mega line basic
connection would be Rs.12, 000, a connection plan and broadband or Peo TV offer as a
package where it will around 11,000 and a connection plan, broadband and Peo TV offer
as a package where it will around 10,000.
Premium price and Product line pricing seldom reflects the cost of making the product since
it delivers a range of prices that a consumer perceives as being fair incrementally over the
range.
It might benefit SLT to sell them singly in terms of profit margin, although they price over
the whole line. Profit is made on the range rather than single items.
47
The other price strategies that can be use
 Psychological Pricing
 Optional Product Pricing.
 Premium Pricing
 Competitive price strategy.
 Economy pricing strategy
12.3 Promotional strategy
The current promotional campaign of Megaline mainly focuses on quality of services. The
percentage of marketing budget is spent on media advertising while lesser is used for sales
promotion.
SLT Megaline connection of triple package is low price than double connection and single
connection. Based on company's past experience, a suitable agency of the campaign will be
selected. SLT will be brief on the concept and preferred mediums. The communication tools
that will be used to conduct the campaign are as flows.
Followed by ATL media next would be initiated below the line media. One awareness is
created next would be launch the social media/mail campaign, giving the opportunities for the
customers to share their customer experience with Megaline video, pictures or posting an
article, the best/ heartfelt experience will be rewarded.
Campaign will be initiated with above the line media activities. The marketing team of the
Megaline category will select and agency to develop a TV/Radio commercial to create
awareness on the campaign.
Once the ATL and BTL media activities have been carried out, publicity will be continued
via "through the line" media of poster and bill boarders.
48
Above the line media
Utilized create awareness of the product during the early stage of brand reposition. It will be
an effective enable to inform the target group, constantly remind them of the product to
encourage repeat purchases.
 Radio - The working crowd is in the habit of following radio shows on their way in and
out of work.
 Television - The advisement can be shoe during the interval of watching drama, sports
and music shows.
 Bill boards - it is placed in near crowd of Main Street, super market location.
Below the lone media
BTL communications use the media that are more niche focus to SLT. BTL communication
gives the marketer the ability to tailor their messaging in a more personal manner to the
audience.
 Special offers - Pricing to promote a product is a very common application. There are
many examples of promotional pricing including approaches such as BOGOF (Buy One
Get One Free), money off vouchers and discounts. Promotional pricing is often the
subject of controversy where SLT Mega line has practice. Sales are extravaganzas of
promotional pricing.
- Tele life insurance policy offered by SLT in partnership with Sri Lanka
Insurance Corporation, provide life insurance at affordable premiums for SLT Megaline
customers. The major benefit of the services is the affordability of the premiums and
convenience involved. The premiums will be changed to the customer's monthly
telephone bill and can be paid along with the SLT Telephone bill each month.
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-New Megaline connection free interest payment plan to consumers. They can
pay in 3 or 6 installments at absolutely no interest using HASB or Sampath bank credit
card
 Free gift - Every Megaline new connection consumers get an attractive umbrella free in
2014 as well as travelling beg with every new Megaline connection in valid into the
December 2013.
 Public relation - SLT was the ICT solution providers for the 2013 communication on
wealth heads of government meeting (CHOGM). During the CHOGM, SLT already
provided its comprehensive communication solution to multiple geographic locations
where key forum of such as the CHOGM opening ceremony, main conference and
government functions, business forum, people's forum and media center.
50
 Sponsor - SLT ha support as a lead to the institute of chartered accountant.
Through the line media
The specific type mass advertising for forming a prospect or customers database which can
be used for direct marketing activities
 Social networks - It allows to work together with a brand through social media such
Facebook, Twitter and YouTube.
 Website - it provide all the information to consumers about services, promotion, variety
of products and etc.
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12.4 Distribution strategy
The SLT provide the services through the centers in island wide
 Teleshops – 36
 Regional offices - 34
 Maintenance centers – 22
 Contact centers - 7
SLT Megaline focuses on different areas. Based on the four main strategic themes of
services, operation, network and group synergy offer world class ICT and information and
information services to all Sri Lankan anywhere, anytime, It has best class deceiver of
produce and services
SLT Megaline is vital behind connectivity in Sri Lanka, delivering faster access ti
information and communication in all the key economic sectors of the country. As Sri Lanka
mechanisms up to services millions of tourists, the tourists related sectors such as airport and
flight, leisure needs and transportation are expected to keep up with the services need of its
customers.
The banking and finance sectors play a key role in the country's systems and sophisticated
technology platforms becomes their communication backbone which facilities all their
business and banking transactions.
Now is absolutely not the time to blindly continue the status quo with SLT’s distribution
strategies. The Internet is creating sea-changes in terms of traditional manufacturer-
distributor relations. It has seen significant waves of disintermediation in multiple product
lines, and can facilitate cost-effective broadening of distribution channels. Meanwhile,
improvements in supply chain management technologies must also be factored into choice of
distribution partners.
52
12.5 Physical evidence strategy
The intangible of the services experience of SLT services provide by the companies by way
of attaching physical products to the offers. The inseparability and the intangibility makes it
difficult for a customers to build a distinct perception by the use of services along, hence
companies take the help of telephone sets, ambience of the services administrating outlets is
also obtained by way pf providing value adding services
However customers tend to rely on physical cues to help them evaluate the product before
they buy it. Therefore marketers develop what we call physical evidence to replace these
physical cues in a service.
There are many examples of physical evidence, including some of the following:
 This includes the design of the building itself, signage around the building, and parking at
the building, how the building is landscaped and the environment that surrounds the
building. This is part of what is known as the services cape.
 The interior of any service environment is important. This includes the interior design of
the facility, how well it is equipped, internal signage, how well the internal environment
is laid out, and aspects such as temperature and air conditioning. This is also part of the
services cape.
 Packaging
 Internet/web pages
 voice mails
 internet facilities
 Paperwork (such as invoices, tickets and dispatch notes)
 Brochures
 Furnishings
 Signage (such as those on aircraft and vehicles)
 Uniforms and employee dress
 Business cards
 Mailboxes
53
Some organizations depend heavily upon physical evidence as a means of marketing
communications, for example SLT Megaline with seasonal offers (Christmas). This is
important to their corporate image.
12.6 Process strategy
The process in telecom industry has been the major shortcoming during that days of the state
monopoly, however the current competition and quality services expectation demanding and
discerning customers have exercised enough pressures on all services providers to provide
essential infrastructure to run an efficient and trouble free continuous telecom services.
The process issues that these telecom companies need to attend to on priority relate to
 Ensuring availability of new connectivity immediately - This issue has largely been
solved. SLT is in a position to issue new connection instantly.
 Ensuring network availability at all times and all places failing under the jurisdiction of
the telecom company - The issue has still not been solved satisfactorily. There are
companies whose network gets blacked during peak hour. The connectivity also drops
frequently as the person travels away from the main towns.
 Ensuring transparency in billing systems and the definition of prices or charge being
recovered from the customers - there is still a need to open up further and it is expected
that the increasing competition will bring in not only transparency but business ethic too.
Process is an element of service that sees the customer experiencing an SLT’s offering. It's
best viewed as something that their customer participates in at different points in time. At
each stage of the process, marketers:
 Deliver value through all elements of the marketing mix. Process, physical evidence and
people enhance services.
 Feedback can be taken and the mix can be altered.
 Customers are retained, and other services or products are extended and marked to them.
54
 The process itself can be tailored to the needs of different individuals, experiencing a
similar service at the same time.
12.7 People strategy
People are a very important role in telecommunication services marketing, in establish an
understanding of the customer expectation and the effects of having delivered as per the
expectation established and understood by the telecom services organization. Most of the
companies in telecom services marketing relies this and they have set up two different kinds
of people set ups in dealing with customers. SLT sting believes of arranging training
schedules and development programs for their people in the front offices and the people in
back offices. The people in the front offices of the permits too are often sponsored foe such
intensive training in consumer handling, customer sensitivity and etc.
In order to make sure that the process SLT internally in managed very well. The competition
in in telecommunication services being very intensive, each company ensure their people are
able to recover any kind of services loss immediately as otherwise it is quit difficult to not
only retain an existing customers but still more difficult to enlist a new customers. Hence,
SLT has a very strong people development policy and strategy.
People are the most important element of any service or experience. Services tend to be
produced and consumed at the same moment, and aspects of the customer experience are
altered to meet the individual needs of the person consuming it. Most of us can think of a
situation where the personal service offered by individuals has made people buy from people
that they like, so the attitude, skills and appearance of all staff need to be first class. People
have an important role in service delivery, they are relied upon to deliver and maintain
transactional marketing and people play an important part in the customer relationship
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13. Budgets and financial Analysis
Projected profit and loss statement for the Magaline
The budget analysis of Megaline connection 4 typify distribute the target areas in Sri Lanka
 Metro - Colombo
 Region 1 - Central province, North central & North western
 region 2 - Western province without Colombo, Uva province, Sabaragamuwa
province & Southern province
 Region 3 - Northern province, Eastern province
Income Note Amounts Amount in
percentage
Sales
Expenditure
Administrative
Distribution
Financial
Any other
Net profit
01
02
03
04
05
10,000,000,000
4,000,000,000
3,000,000,000
1,200,000,000
800,000,000
1,000,000,000
100%
40%
30%
12%
8%
10%
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Note – 02 Sales revenue
Product Area 12 months sales revenue in
Sri Lankan rupees
Megaline connection Metro 4,000,000,000
Megaline connection Region 1 3,000,000,000
Megaline connection Region 1 2,000,000,000
Megaline connection Region 1 1,000,000,000
Note - 2 Administration cost
Product Area 12 months administration
cost in Sri Lankan rupees
Megaline connection Metro 1.500,000,000
Megaline connection Region 1 1.100,000,000
Megaline connection Region 1 800,000,000
Megaline connection Region 1 600,000,000
Note – 3 Distribution cost
Product Area 12 months distribution cost
in Sri Lankan rupees
Megaline connection Metro 1,000,000,000
Megaline connection Region 1 1,000,000,000
Megaline connection Region 1 600,000,000
Megaline connection Region 1 400,000,000
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Note - 4 Financial cost
Product Area 12 months financial cost in
Sri Lankan rupees
Megaline connection Metro 450,000,000
Megaline connection Region 1 350,000,000
Megaline connection Region 1 300,000,000
Megaline connection Region 1 100,000,000
Note – 5 other costs
Product Area 12 months other coat in Sri
Lankan rupees
Megaline connection Metro 300,000,000
Megaline connection Region 1 250,000,000
Megaline connection Region 1 150,000,000
Megaline connection Region 1 100,000,000
58
14) Marketing Strategy implementation
First we must understand the role and impotence of overall effort, assign responsibilities to
making things happen, what need to be done and the feedback. There are three key steps to be
followed to implement successful marketing plan in practical implementation.
 Having adequate resources to carrying out planning activities.
 Understand the lead time, those who participate in execution element
 Understand completely in detail departments and vendors requirements to implement
each element.
Following shows responsibilities allocations and possible cost for the plan.
Responsibilities Authorities Cost
Marketing plan & strategies Senior marketing manger 500,000.00
Internal communication C.E.O 1,00,000.00
Systems & Process Chief corporate &
information officers
500,000.00
Assign peoples Admin manager 1,000,000.00
Promotional activity Senior marketing manger 7,000,000.00
Total 10,000,000.00
59
60
15 Monitoring and evaluation
Monitoring - Monitoring a strategic marketing plan requires that some challenging questions
have been asked, direction for the company's future has been set, and specific, measurable
goals have been targeted, identified as viable, and assigned via a budget. A marketing
strategy should include defining the vision on products, placement, pricing and promotion
and then detailing the vision within a budget that specifies monthly goals.
The following could be done in order to monitor and evaluate the progress of the marketing
plan for SLT megaline
 Conducting monthly sales review meetings
 Branch and outlet managers should communicate with top management in a timely basis
 Building awareness among sales agents
 If any drop in sales, corrective measures should be taken
 Training the staff
 Motivating the SLT customer service officers
 Conducting customer researches
 Conducting a market share analysis
 Stay in touch with competitor activities
 Comparing the actual results with stated goals at the end of the year
Evaluation - When we determine the level of success in achieving the plan, goals and
objectives, research and evaluation are usually given less time, money and effort than goal-
setting and the actual communications tactics. The evaluation techniques include the
following.
 Mail and e-mail surveys
 Online samples
 Communications audits
 Telephone surveys
 PR audits
61
 CRM
 Database searches
Finally the implementation of a successful marketing plan for the year 2013 can be evaluate
with the achievement of the set sales budget for the year. Increase in market share for total
drive.
62
References
 Colin Gilligan and Richard M.S. Wilson “Strategic marketing planning” special Indian
Edition.
 Understating from “Marketing planning” Lecturer.
 http://www.slt.lk/data/aboutslt/profile.htm
 http://www.trc.gov.lk/
 http://www.cbsl.gov.lk/
 www.dialog.lk/
 www.lankabell.com/
 www.suntel.lk/
 SLT’s annual report – 2013
 Interview conducted to P. Roshan Kaluarachchi of Chief Marketing Officer

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Formulating a strategic marketing planning for megaline {slt}, (smp, slim)

  • 1. 1 1. Executive summary A. Summary of situation analysis Sri Lanka Telecom has built over 150 years of goodwill and trust with its valued customers protecting its brand image and company values. Long vision has guided to practical approach to reach its mission of the company. Market leader and largest innovation company of Sri Lanka telecommunication industry has more market capitalization in Telecommunication industry. The company provides a huge range of domestic and international services which include fixed and wireline voice, internet and data services that provide to a wide audience comparing of the both corporate and domestic customers. This is nation’s number one integrated communication service provider, leading broad group and support infrastructure service provider for the country. The two ownership of SLT of Sri Lankan government which holds 49.50% and global telecommunication holdings N.V of Netherland, which owned 44.98% remaining general public. The blue chip of SLT’s group companies’ annual turnover is exceed 66 billion and SLT achieved the more than profit 36 billion in 2013. The SLT group has customer base of over 6 million including Multinomial Corporation, large and small corporate, public sector, retail and domestic customers SLT has downed assets from LKR 84,820 million to LKR 83,090 million and through a process of acquisition and growth. SLT operating 34 regional telecom offices operates 36 teleshops, 22 maintenance center and 7 contact centers all over the country with more than 6000 permanent employees. It has less comparative advantages over to their competitors in Sri Lanka market Country’s largest telecommunication service provider has taken necessary steps to developed telecommunication facility in war affected area like North, and Eastern areas and People's purchasing power has been growing in using Megaline connection after the freedom in the that areas also, the SLT opportunities to cover all the areas in Sri Lanka. .
  • 2. 2 At present the Telecommunication connection services market is mostly controlled by multinational companies. Sri Lanka Telecom works with quality technology to grater to every Megaline connection. The emerging new requirements of consumers, now the SLT organized to provide all the telecommunication facility in three ways with Mega line connection, entertainment and data services with a connection to their customers according to their different facility. Megaline is targeting to home and individual consumers, they need an actualization and acceptance of their palace. Megaline is the market leader in Wireline connection in telecommunication industry. There are no large competitive to Megaline but, there is strong brand (Lanka Ball, Dialog CDMA and Suntel) in Sri Lankan market and it will create competitive to Megaline. It looks to be communication facility provide to all over the areas in Sri Lankan market. The services competitive to increased. SLT’s consumers trusted by providing quality, standard, stable and services. The last year Mealine connection was increased by 1.6 hundred thousand and total connection acieved1.5 million in 2013 SLT received the distinction of being ranked No.1 on Sri Lanka’s telecommunication industry. The national telecommunications service provider won silver. This is the first time SLT has been recognized at the HRM Awards in 2012. SLT was recently awarded ISO 9001:2008 certification for its quality management system.
  • 3. 3 B. Summary of marketing objective  Retaining existing customer - by promoting best facility can retain the existing consumers.  Increase sales from existing customer- SLT have primary focus and that is increase of it is sales. The increase sales objective will make the future profit margin.  Developing new customer - The development of geographical areas to Megaline connection will increase new customers.  Increase usage of produce usage - by developing the innovation technology will increase the usage of Megaline users.
  • 4. 4 C. Summary of marketing strategies SLT simply develop the marketing strategies by having some special resources. That strategy focuses on SLT Megaline’s future market success. Since, the high demand for Megaline connection as individual and corporate consumers. Megaline connection high cost compare than other land phone connection to company as well as to the customers, but demand for this connection has not come down. SLT Megaline corporate marketing goal is to become the no one telecommunication service provider in the local telecommunication market while providing ethical service to their customers. The result of marketing mix implemented the SLT’s marketing strategies.  Product strategy – SLT product is target the different customer to different product packages. The product packages continue developed by containing voice, data and entertainment. The packages also clear and quality to cover all the areas consumers in Sri Lanka  Pricing strategy – SLT Megaline is high valued support to their revenue of SLT. Product line pricing increase the valuable packages as well as increase revenue to SLT also, Megaline has use market product line pricing and penetration pricing strategy to capture the market.  Promotional strategy - The promotional campaign of Megaline mainly focuses on quality of services. The percentage of marketing budget is spent on media advertising while lesser is used for sales promotion. The promotion campaign is in clear position in target segment.  Distribution strategy - SLT operating 34 regional telecom offices operates 36 teleshops, 22 maintenance center and 7 contact centers all over the country with more than 6000 permanent employees. All are support to develop the Megaline connection.
  • 5. 5 D. Summary of Financial Projection The financial strength of SLT has by their sales. The operations of Sri Lanka Telecom include in the main the Megaline Citylink, Peo TV, and Broadband. The Megaline connection support is necessary to SLT. In 2013, although aggressive competition, SLT retained its position as the certain type of market leader in the telecommunications industry. SLT achieved more than profit 36 billion. The SLT group has customer base of over 6 million including Multinational Corporation, large and small corporate, public sector, retail and domestic customers. The analysis finance information assumed the secondary data of 2013 annual report The cost of the promotion activities are proper to organize by the budget allocation. The budget allocation is suitable to organization to Magaline connection. The Gant chart is confirmation of one year allocation plan to Megaline connection.
  • 6. 6 2. Vision and Mission Vision All Sri Lankans seamlessly connected with world class information, communication and entertainment services. Mission You're trusted and proven partner for innovative and exciting communication experience delivered with passion, quality and commitment.
  • 7. 7 3. The company Brief history Sri Lanka Telecom (SLT) has built over 150 years of goodwill and trust with its valued customers protecting its brand image and company values. It has started their operations in 1858 where the first Telegraphic Circuit established between Galle and Colombo and also the first international telegraph communication established between Ceylon and India. In 1991 Sri Lanka Telecom became a Corporation. In 1911 SLT has established as Central telegraph office where the installation of Automatic Telephone Exchange established at Kahawatta in Ratnapura District in 1931. 1935 was a golden era where International Telephone Service inaugurated. The journey in 1991 the first Sri Lanka telecom corporation formed and they have introduced packet switching service (1993), internet and email service (1996) and in the same year SL corporation converted into a public company. From the days when it was a part of Sri Lanka’s Department of Post and Telecommunications through to the present day, the company boasts a long and rich history. Now a fully integrated telecommunications operator. A public Limited Liability Company incorporated in Sri Lanka in September 1996 under the Conversion of Public Corporations or Government Owned Business Undertakings into Public Limited Companies Act No.23 of 1987 and quoted on the Colombo Stock Exchange in January 2003. The year of 1997 Sri Lanka Telecom privatized with the collaboration of Nippon Telegraph & Telephone Corporation of Japan and listed in the Colombo Stock Exchange's Milanka Price Index. SLT is one of Sri Lanka's most valuable blue chip companies with an annual turnover in Rs 60.14 billion. Sri Lanka Telecom provides the services broadband and backbone infrastructures services to the counter.
  • 8. 8 SLT received the distinction of being ranked No.1 on Sri Lanka’s telecommunication industry. The national telecommunications service provider won silver. This is the first time SLT has been recognized at the HRM Awards in 2012. SLT was recently awarded ISO 9001:2008 certification for its quality management system. Current size, the areas where the company is operating, growth and profitability  Current size - SLT has downed assets from LKR 84,820 million to LKR 83,090 million (2012 to 2013)  Branches - SLT operating 34 regional telecom offices operates 36 teleshops, 22 maintenance centers and 7 contact center all over the country and more than 6000 permanent employees.  Products and services - The telecommunication industry's products are telephone services, internet services, Digital Tv and IT services.  Growth and profitability - In 2013, End of the year revenue increase from LKR 34.72 billion to LKR 36.78 billion  Ownership - SLT is a most valuable blue chip company to Sri Lanka’s economy. This is nation’s number one integrated communication service provider, leading broad group and support infrastructure service provider for the country. The two ownership of SLT of Sri Lankan government which holds 49.50% and the other party is global telecommunication holdings N.V of Netherland, which owned 44.98% where the remaining balance own with the general public.
  • 9. 9 3.2 Internal environment a. Staff relations SLT which is in telecommunication and the core competence involved is providing excellent services to customer of the company, needs to have a set of dynamic, pleasant, set of employees from the lowest level to heights level. They in turn need to delight their consumers in order to attract customers as well retain them in the future. SLT has organized award ceremonies to encourage all their staff, individuals to become champions of change. SLT continued to motivate thorough star award, sales excellent award, services excellent award and etc. SLT is a kind of challenging organization where it encourages its staff to learn through their experience as well they already provided infrastructure facilities on libraries, 3 playground facilities mainly in capital city. The SLT conduct annual income and digital life magazines and also paper articles in Sinhala, English and Tamil languages available for internal and external parties of SLT. Sri Lanka Telecom has been a good employer. It has providing its staff many attractive activates. This includes loan facilities al low rate, annual sport meets, trips, cultural programs, Quiz competitions are some of the activities and events organized by SLT in order to build good relationship between company, and employees as well as with their valuable customers. b. Resources and limitations The following shows some resources of SLT and its characteristics.  Human resources - The main resource of SLT is the human resource. Since SLT is the service sector, providing services to its clients, its needs to have vast number of staff. SLT would include assessment of the existing staff’s function, location, existing rate loss experience as well as overall standard of training and specific training standards in key roles.
  • 10. 10  Financial resources -The finance resource has working capital, creditors, cash balance, bank overdraft as well as bank loan for investing new product expand the distribution channel.  Physical resources - These includes location of existing production facilities, capacity and maintenance requirements and current production process of quality, method & organization, IT system as well distribution channels. c. Corporate structure and culture Corporate culture Culture is sum of total learned values, beliefs, customs that are served to direct consumer behavior in a particular country market. Although structure is the arrangement of parts, as was indicated previously, culture will influence how these parts interact. SLT culture is a very friendly one which always has been in the organization for both its internal and external customers. The authorization and better understanding on their culture and how to transform it, is a critical skill for leaders in SLT, trying to achieve strategic outcomes. Strategic leaders have the best perspective, because of their position in SLT, to see the dynamics of the culture, what should remain, and what needs transformation as well as the rules and regulation are minimized and a very flexible approach to handle issues. Corporate structure SLT holds a horizontal coordination structure flexible design in order to achieve their ultimate goals and objectives. SLT’s structure affects individual motivation and performance. So, if people are placed in positions for which they are unsuited or allocated work for which they are not competent there will be a detrimental effect on motivation and performance.
  • 11. 11 Formal structure of Sri Lanka Telecom Chairman & the board of directors Audit committee Remuneration committee Technology sub committee Senior tender board CEO Leadership Team Synergy Group Operational Review Team Revenue Assurance & Fraud M Management Committees and their composition Product Marketing Forum Informatio Security Mgmt. Forum Strategic Governance Board Enterprise Solutions Governanc e Board Transform & C G Board Product Governance Board IT governance Board Network governance Board Facilities & Services Governance B Company Secretary Nomination committee Enterprise Risk Managemen t Steering Committe e of Q M S Quality Mgmt. System Cross Functional Governanc e Secretariat Board Committees and their composition
  • 12. 12 4. The product/ service 4.1 General product story General product story The electric telephone was invented in the 1870s, based on earlier work with harmonic (multi-signal) telegraphs. The first commercial telephone services were set up in 1878 and 1879 on both sides of the Atlantic in the cities of New Haven and London. Alexander Graham Bell held the master patent for the telephone that was needed for such services in both countries. The technology grew quickly from this point, with inter-city lines being built and telephone exchanges in every major city of the United States by the mid-1880s. Despite this, transatlantic voice communication remained impossible for customers until January 7, 1927 when a connection was established using radio. However no cable connection existed until TAT-1 was inaugurated on September 25, 1956 providing 36 telephone circuits. So, the way to Sri Lanka Telecom PLC (SLT) provides a variety of domestic and corporate services which includes fixed and wireless telephony, internet access and IT services to domestic, public sector & business sector customer. This Meagline product introduces 3 type service verities. For example, voice only (Single Play) customers, voice and broadband (Double Play) customers and voice, broadband and PEOTV (Triple Play) customers have three different call rates. Their Triple Play services are ready to provide unmatched future experiences to entertain their customers. a. Development, introduction and history Telephone connection is the core service of SLT Megaline. It is (wireline) expand in 2010. The Megaline telephone connection has more experience in the industry. It is expanding different variety to consumers. The Megaline strategy helped sustain their market share in the fixed line sector (Megaline and Citylink). The Megaline strategy helped sustain their market share in the fixed line sector (Megaline and Citylink) 57% in 2013.
  • 13. 13 SLT Telephone connection comprehensive connection include many salary features and benefits for it users. b. Product category and characteristics SLT Megaline Company is offering its wireline connections through a variety of packages that enables people the freedom to choose which services they want, especially broadband, internet and voice value added services, as well as making wire Magaline connectivity more affordable to the public. Sri Lanka Telecom (SLT) has reduced its prices of wire line connection with the introduction of SLT Megaline, a product with variety. SLT Megaline includes of three packages to home and office. Also the multi services of Megaline enjoying their consumer. The SLT Megaline services offer three packages Services offered Calling plan Free services Connection charges Triple play Mega home or mega office Triple play vas bundle 10,000 Double play Mega home or mega office Double play vas bundle Voice + broadband without CPR* Rs 7,000 or Voice + Peo TV RS 11,000 Single play Mega home or mega office Single paly vas bundle 12,000
  • 14. 14 c. Stage of product life Cycle Development Introduction Growth Maturity Decline SLT Megaline Pre - launch Post - launch After pre- launching Megaline connection to Sri Lanka telecommunication market in late 150 years, however due to the increase a purchasing of a new connection. The introducing the SLT Megaline they have come across to the maturity level if PLC with a specific time period. So, far the product life cycle in concerned, I would say SLT Megaline connection is still in its maturiry levels. The major reason is still Megaline keep the SLT is monopoly business of the availability of resources and competitors. In market competitor are not high market share and still not entering because still they are fail to invest huge investment on a new product like SLT Megaline connection. Also SLT Megaline promises to provide high standard service to existing and potential customer. So this reasons to say SLT Megaline is still in its maturity stage.
  • 15. 15 d. Any other important characteristic of Megaline  Crystal clear voice  Offer of voice, broadband and Peo TV services through a single line  Single number for generation  Safe to use - No radiation  Island wide network coverage  Line that is always connected - No utility powder requirement for telephone use  Business customers are benefited when making longer call due to reducing call charges after 3rd minute.  Extended off-peak time band for home users
  • 16. 16 5. The overall market (Customers) 5.1Description of the characteristics of target customers a. Need and benefit sought SLT Megaline’s target market is domestic customers and business organization. The government is looking the effective and efficient service. The future segment will concern and looking for reasonable effective and efficient service at these 3 way service in one connection. With SLT Megaline lot of beneficial service can made in unbelievable manner. Because, of the increasing buyer of the people growing day by day so they need some establish service and further for many communication requirements. At the same time government and private sector organizations demand for internet service where they deal with day to day business which requires quality, speedy service. In further entertainment will have a good place in public places and domestically people who spend busiest life style. At the same time government and private sector organizations demand for internet service where they deal with day to day business which requires quality, speedy service. In further entertainment will have a good place in public places and domestically people who spend busiest life style. b. Product usage SLT Megaline connection mainly used by  Home (individual consumers)  Office (corporate consumers) Who is using – SLT Megaline connection mainly used by users and upper middle class families and also business and government.
  • 17. 17 Why they use – Because consumers market need and benefit. The clear connection, network speed and connection expand facilities to Peo TV as well as broadband. When do they use – The consumer mostly using at home to communication their friends and family as well as organization use official work. How it is used - SLT Megaline has three types of services but the mainly consumer use telephone connection because, otherwise they have to go for three separate service to get those services. c. Attitudes of the customer i. As to Product category Since the SLT include Megaline connections, enjoyed by consumer all over the Sri Lankan target market has a high regard toward the product category. This is sharp by the mind of Sri Lankans that perceives products high local brand and high quality. Moreover the consumer consist the entire SLT services category offer the high quality and clear services. Typically consumers would associate mainly due to face that the majority of the consumers perceive Megaline connection to be SLT Megaline Brand. Therefore they give more preference to Megaline connection when compare to the hug range and Telecommunication products. The Attitudes of the customer towards to these products category is depend on various topics. Such as mainly on the income, affordability, requirements, life styles, family remembers, quality of service, availability, after sale services, changes of the family etc. ii. As to company’s product SLT Megaline customers have positive attitude toward services, as the company service is good quality and clear services by the consumers as SLT is telecommunication industry
  • 18. 18 Since, SLT Megaline connection is a brand of the Sri Lanka first licensed the telecommunication industry which function the principal brand is. The consumer associates the quality of services, safety and care with excellence customer services of the category. Megaline telephone connection is a very positive. Since the services of dedicate relationship officer and the clear facilities are fast, the customers satisfaction is a high state and the opinion of customers towards SLT Megaline connection is very positive. iii. Why they like our products or not The major reason the customer of SLT Megaline connections like this product. SLT products in that the fixed line which facilities 3 service communications, most of the demand for their latest technology development along with the delight customer service. Mainly, This 3 in 1 facility use by banks, hotels, shops, private and government institutions etc. iv. Any unique character of customers Unique character of our customer can be whatever the segment who are looking for stable, speedy cost effective connection. And also another unique character of the customer is they build bonds with SLT because of the delight customer service. Time, Quality, service, Trust, relationship are the powerful factors to create unique customers at SLT
  • 19. 19 5.2 Description of the purchasing process a. Buying decision making process When it comes to the purchasing process of the B2C segment they will have a buying process as follows for the total drive.  Problem recognition - This is first stage of the purchasing decision where the buyers recognize a problem or need. This need can be generated by internal or external stimuli. Generally consumer of the stage using Megaline services is low quality or slow level. There are not in safe hands and they cannot enjoy their freedom to grow and communicate with others.  Information services - An aroused customer will be motivated to search for more information through internet and external data source, they use various banking industry data source, their web sites and advertising then they getting the details. Also, in this stage customers can visit the each SLT branch and collect the details, they collect from their friend and working partner. Information search Evaluation of alternative Purchase decision Post purchase behavior Problem recognition
  • 20. 20  Evaluation of alternative - Once customers gather all the information they evaluate the various option available. When evaluation the potential alternatives, customers use two type of information. The first is the list of SLT Megaline branch from which they plan to make their selection and second is the standards from which they plan to make their decision. Evaluation often reflects beliefs and attitude and these are acquired by experience and learning.  Purchase decision - In the purchase decision stages consumer forms references the brands. The customers may also from intention to buy most preferred brand. In executing a preferred intention the customers considered sub decision such as brand, customer services, timing and product features.  Post purchase behavior - After the purchase the consumer might experience dissonance than stems from noticing certain disquieting features or hearing favorable things about SLT Megaline brands and will be alert to information that supports consumer decision. However in the B2B market segment for Megaline connection there will be influencer, gatekeepers, approvers, buyers and users b. What source of information is sought? The source of information sought for the Megaline connection of SLT can be identified as  Public - Megaline connection knowledge can be also be obtained through source such as mass media, consumer rating organization.  Commercial - Information provided by the company in the form of advertising, website, Facebook, fun page marketing shelf people and display about the Megaline connection  Personal - Information obtained from working partners, religion group, family, friends and acquaintances about the Megaline connection.  Experimental - The information obtained from consumer through handling, examining and using then Megaline connection.
  • 21. 21 c. Who makes the purchase? Some people purchase the Megaline connection and mainly home (individual) and officers (co-operate) are making purchase, because they also know the services benefit connection. The home connection purchases of personal user the variety of services. The head of organization has to decide and approval the purchase of the Megaline d. Is purchaser the consumer? Yes, in most of times the purchaser can be the ultimate consumer or the end user for example in domestic scenario but when it comes to organizational level consumer and the purchaser can be two different parties but the purchaser can be the consumer in an indirect way. e. Who or what may influence the purchase? The influencers to the decision making units  Family and Friends  Office friends  Advertising and promotion  Relations  Past experience  Quality of services  Multiple connection The main segments in domestic scenario influencer can be other family members where in organization staff, peers, can be influencers to make the purchase.
  • 22. 22 6. Competition and market share 6.1 Identification of competitors a. Primary competitors The 2 type of primary competitors  Lanka Bell  Dialog CDMA  Suntel The three types of primary competitors are providing the same service or would be considered as substitutes belonging to the same industry. SLT as the market leader, it would look at those companies coming in second, third, and fourth and so on. Primary competitors within an industry are competitors that offer a nearly identical product or service. However, SLT does not have any direct primary competitors where they are the innovators and monopoly service provider in fixed wire telephone line. Because other competitors are not arriving at all segments where they are unable to afford huge cost on targeting all population. b. Secondary competitors Secondary competitors are the mobile communication service providers .  Dialog  Etisalat  Mobitel  Airtel  Hutch
  • 23. 23 Secondary competitors are offering same products, services and marketing. Secondary competitors offer a substitute good or service, which might be of a lower quality but still related. c. Possible new competitors  PC house PLC - PCH is forefront of Sri Lanka's ICT industry providing a complete solution for all the market in a computer hardware, software solution and value added services. PCH was recently listed among Sri Lanka's 50 valuable brand of 2012 published by brand finance Lanka and media services with honorable A+ bran rating. The strength will that company will come to the telecommunication industry in Sri Lanka. However, the possible new competitors may be in any time with new technology and satellite facility with lower rates. Competitors may arrive at the moment no any such details or information have find or heard by SLT. 6.2 Market share a. Total current industry sale by market Customers of the local wireline telecommunication market are catered by local telecommunication companies. Local wireline telecommunication requirements in total market are being supplied by the three industries. SLT, Lanka ball and Dialog are the three suppliers. Also, Dialog has another separate Suntel wireline connection in Sri Lanka. There is a total market size of Rs.13 billion annually, related to wireline telecommunication connection in local market. But this amount will vary according to the growth or decline of flexible packaging requirements of the customers.
  • 24. 24 b. Comparative analysis of market share held by the company and competitors The local wireline telecommunication market is consisted with 3 services. The local market is catered by the local telecommunication in Sri Lanka. A comparative analysis of the market share is mentioned in below table: Company Market share in connection Market Share in Wireline connection Market Sri Lanka Telecom 1,571,309 57% Lanka Bell Limited 634,037 23% Suntel Ltd 41,3502 15% Dialog Axiata PLC 137,834 5% Total 2,756,682 100% Market share of Wireline connection 57% 23% 15% 5% Market share of Wireline connection Sri Lanka Telecom Lanka Bell Limited Suntel Ltd Dialog Axiata PLC
  • 25. 25 c. Trends and future growth  Significantly from the relatively SLT Megaline market which is currently as high as 51%, while 57% of connection.  Aggressive increase in demand for Megaline due to the rise in disposable income of people  There is a significant interest for entertainment among the people and hence more customers tend to watch foreign channels more than the local channels.  Usage of Megaline by government and private organizations has significantly increased.  The country’s Internet sector remained underdeveloped, with the take up rate of broadband services being especially low; there were however signs that this was starting to change.  Fixed broadband penetration (as a percentage of population) was still only around 2% in 2013.  The government having established the National Broadband Consultative Committee (NBCC) in 2010, there was little evidence of it having any great impact into 2013. d. Expected total market (demand estimates) what except in future In 2013 financial year SLT Megaline revenue increased by 12% by adding additional 100,627 subscribers in 2013. Expected market demand is 1.75 million Megaline connection subscribers for the year of 2014. Aggressive marketing strategies will be developed on achieving the stated market demand and further increase the market penetration of SLT magaline. After the end to the war, it has become more than superficial that Sri Lanka Telecom has a catalytic role to play in the development of the country as a whole. While physical infrastructure is being established, connectivity remains the key to holistic development. It was in line with this that we launched our new corporate vision, mission and values which take us further towards transformation and customer centricity.
  • 26. 26 Together with their values which encompass customer care, trustworthiness, innovation, responsiveness, teamwork, excellence and the drive to achieve superior results, they have already laid the foundation for their pragmatic vision in placing the trusses to transform their traditional network to a Next Generation Network, investing considerably in infrastructure, technology, training and development and other related functions 6.2 Describe following details of two player in the market and any other competitor that would pose a threat to you or that you would be fighting with in order to enter into the a. Background of competitors I. Company and its size/ type Lanka Bell Limited Lanka Bell is a world class telecommunication operator that provides a full range of telecommunication service to business and residential customers in Sri Lanka. Dialog Axiata PLC Dialog Axiata PLC is Sri Lanka's largest telecommunication services providers. The second fixed line operates in Sri Lanka. II. Reputation Lanka Bell Limited Lanka ball's creation is introduced land connection to telecommunication market. It is ISO 9001:2008 certificate company. Dialog Axiata PLC Dialog Axiata PLC is the largest and fastest growing cellular service in Sri Lanka also operates. Dialog proud sponsor of the Sri Lanka cricket team.
  • 27. 27 III. Sales force and their expertise Lanka Bell Limited  Has expert sales and marketing team Dialog Axiata PLC  Has large sales force and good experience  Include sales special IV. Financial strength Lanka Bell Limited  Have a financial resource to covering their business operation. Dialog Axiata PLC  Have a good financial strength (total assets 91,238,008,000.00 end of 2012 from 83,513,242,000.00 end of 2011)  Investment increased V. Technology used Lanka Bell Limited  WiMAX  4G LET Dialog Axiata PLC  WiMAX  4G LET  Wi-Fi VI. Any other important aspect Lanka Bell Limited  Foch the Wireline connection only Dialog Axiata PLC  Focus the Wireline connection with Mobile connection, broadband and Dialog TV.
  • 28. 28 b. Current product strategy of competitors Comparative analysis of competitor’s product strategy i. Product mix Lanka Bell Limited Two type of CDMA phone  Domestic Bell residence has Postpaid services, pre-paid service, broadband, IDD service, other features of SMS, email, Voice SMS, bell tunes.  Corporate Bell enterprise has Enterprise voice, enterprise data, International connectivity, BPO, Bell fax , Risk management press ads disaster recovery Dialog Axiata PLC Three type of fixed line packages  Huawei FP 2025 has SMS, Notifying the incoming call number in voice, Voice recording of an incoming call, Caller ID display, call forwarding, call waiting, call holding, call barring and three-way calling  ETS 2022 has SMS , CLI, Phone boom, Polyphonic ringtones  ETS 2029 has SMS , CLI, Phone boom, Polyphonic ringtones ii. Branding and packaging Lanka Bell Limited  Lower rate to IDD packages  Lower rate to night packages  Infinity plus package of 1000 minutes & 500 minutes Dialog Axiata PLC  Lower rate to IDD packages  Lower rate to Dialong mobile call
  • 29. 29 iii. Positioning Lanka Bell Limited  Earlier consumer continue the services Dialog Axiata PLC  Faster network than others iv. Image and reputation of brand Lanka Bell Limited  Focus only the wireline connection Dialog Axiata PLC  Reduce the call charge to dialog mobile phone. v. Product strength and weakness Lanka Bell Limited  Strength – more connection is continue the without termination.  Weakness – Not available with Wi-Fi services, Low percentage to getting new connection. Dialog Axiata PLC  Strength – coverage focus all the consumers in Sri Lanka.  Weakness - Low percentage to getting new connection
  • 30. 30 c. Current distribution strategy of competitors Comparative analysis about the competitor’s distribution strategy i. Type of distribution network used Lanka Bell Limited The distribute through the branch & teleshops Dialog Axiata PLC The distribute through the branch & teleshops ii. Evaluation of how distribution targets accomplished Lanka Bell Limited  Get more market share  Achieved profit margin Dialog Axiata PLC  Achieved sales target  Reach target market iii. Relationship with channel members Lanka Bell Limited  Teleshop  Regional branch Dialog Axiata PLC  Teleshop  Regional branch iv. Strength of the channel members Lanka Bell Limited  Lager distribution in Sri Lanka Dialog Axiata PLC  Have a good market network
  • 31. 31 d. Current price strategy Comparative analysis of competitors prices i. Pricing objectives Lanka Bell Limited  Increasing profit margin  Attractive large consumers  Increasing market share Dialog Axiata PLC  Increasing income  Increase sales ii. Pricing strategy Lanka Bell Limited  Use market skimming price  Low call rate Dialog Axiata PLC  Cost based pricing strategy  Giving discount iii. Buyers attitude about the company prices Lanka Bell Limited Consumers think, Lanka ball lowest price with quality services Dialog Axiata PLC Consumers think, Dialog CDMA quality services is lowest price communicate with dialog mobile iv. Channel attitude of about the company’ price Lanka Bell Limited  Have a suitable price Dialog Axiata PLC  Have a suitable price
  • 32. 32 e. Current promotional strategy Comparative analysis of competitor promo tool and campaign i. Promotional objectives Lanka Bell Limited  Increase the sales  Increase the profit  Get brand loyalty  Inform new offers Dialog Axiata PLC  Increase sales  Increase the profit ii. Strategies and themes used Lanka Bell Limited  Two packages get 500 or 1000 minutes outgoing to promote local call consumers.  Viza card promotion to the models and other country to low call rated for getting foreign consumers.  With lowest IDD rates to India and75% less cost IDD call for getting foreign consumers. Dialog Axiata PLC  75% less cost IDD call for getting foreign consumers.  Loa call rate to Dialog mobile for getting local consumers. iii. Promotional tools used Lanka Bell Limited a. Advertising - TV & website b. Sales promotion - law call rate c. Public relation - Media conference Dialog Axiata PLC a. Advertising - Facebook & website b. Sales promotion - law call rate c. Public relation - Sri Lanka cricket team,
  • 33. 33 d. Direct marketing – Print campaign, website & email e. Personal selling - Directly to consumer home donation. d. Direct marketing - Print campaign, website & email e. Personal selling - Directly to consumer iv. Success and failures of promo campaigns Lanka Bell Limited The effective campaign are success Dialog Axiata PLC This is effective campaign but the sales are increase slowly
  • 34. 34 7. External Environment factors PESSTEEL factors The following PESTEEL factors are some of the key changes that are taking place in the environment. 1. Political  Political factors concerning telecommunications industry service is influenced by Telecommunications Regulatory Commission of Sri Lanka.  Legislation and condition imposed by TCRSL needed to be followed by every telecommunication provider in Sri Lanka.  The government takes measure to improve the economy such as SLT  Boosting the image of Sri Lanka in global market.  Continuous change of stand on applicability of labour legislation 2. Economic  Promise to focus the on rural development of telecommunication facilities and other essential services by 2011 year fiscal budget.  The increasing the VAT reduce the customer affordability.  Telecommunication is in growth phase and this can see through increasing contribution to GDP and Employment.  Declining interest rates on borrowings favorable position affordability  Stable exchange rate  Sri Lank GDP growth rising to 8.2 % in 2014 3. Social  The population has been getting old employees. It has increased the pension payment to staff  Increasing the working employment is opportunity the market segment.  The growing hand phone connection will reduce the home connection.
  • 35. 35  Lack of the labour to work to farms.  Donated to school, hospital, and festival function. 4. Technological  World class ICT technology must be effectively benefit the two social and business economy.  Lack of adaptation of mobile technology by reduces the Wireline connection.  Availability of management information systems and other electronic repair services connection.  MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances.  Innovating the connecting quality  Initial connection cost high 5. Ecological  To be compliant with legislation and deal with environmental issues accountably  Design and develop products that have minimum environmental Impact  Optimize usage of energy and inculcate recycling, wherever possible  Cascade environmental best practices to all employees through training, education and development  Promote environmental care and appreciation of the environment through as many forums as possible 6. Environmental  The climate changes in temperature can impact on many industries including farming, tourism and insurance.  The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries and the general move towards more
  • 36. 36 environmentally friendly products and processes is affecting demand patterns and creating business opportunities.  Recognize the impact that their business has on the environment and thus to work in a manner that seeks to protect the environment and minimize or eliminate any adverse impacts caused to the environment by their day to day operations. 7. Legal  Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for their products.  Faced with the risk of changes in the regulatory environment, and steps are taken to ensure their willingness to face sudden and unexpected regulatory changes
  • 37. 37 8. SWOT analysis 3. G.1 Strengths  Strong infrastructure and high-performing cable equipment are best in Sri Lanka.  Aggressive marketing strategy allowing SLT Megaline has good and stable brand loyalty and Excellent brand image  As reflected in the financial analysis the financial stability of the organization with all the current investments.  The competent sales force and support staff enabling fast services to the client.  The strong capital background and government support.  Strong Public Relations that has been built up over the 150 years.  Strong island wide distribution network.  Greater level of customer satisfaction via high quality customer support, well established customer base.  Skilled and dedicated Management Team  Have an excellent management process  Market leadership on Megaline connection services. 3. G.3 Weaknesses  The structures within the industry or company that are performing poorly or worse than expected.  Corroded cable lines, slow service and lackluster sales are three weaknesses that can hurt for SLT.  If corroded cable lines aren't replaced and slow service continues, for example, angry customers will switch to a rival telecommunications company that offers better services.
  • 38. 38 3. G.3 Opportunities  The external structures are outside the company’s control that could potentially benefit the company growth.  Technological advances, an increase in communication networks and channels and new tax incentives.  The competition not trusts in by the SLT that the long run.  Outside events that SLT can use to enhancement its existing strengths. 3. G.4 Threats  The consumers mainly increase to the mobile subscriber identity module (SIM)  The threat of a telecommunications involves the external structures outside the industries.  Increasing competition and increased government regulations against the telecommunications industry are just a few external threats that can limit SLT’s future success.  Decrease economy in Sri Lanka not suitable to grow the SLT.  The new competitors offer fast service and cutting-edge technology to their customers.  Less demand for telecommunications services that few days.
  • 39. 39 9. Sales Objectives SLT’s marketing plan for Megaline telephone connection is evolved in order to achieve the expected sales objective. The following sales objectives “The increase 35% revenue of the Megaline at island wide by December 2015” The Megaline depends on the achievement of the above mention objectives and this is profitability of the company. This achievement expects levels making it challenging for the company to achieve its corporate objectives. The entire marketing plan will be developed based on the above mentioned sales objectives and the strategized will also on this objective.
  • 40. 40 10. Marketing Objectives Clearly defined objectives may also provide direction for SLT employees in terms of what to achieve and in what period. They also serve as motivators for employees by creating an attainable challenge that they can to strive achieve. When setting marketing objective it is important to make sure always that should be SMART. This marketing objective is not only achieving from the new customer but also current customer retention also important to the company. Following are some of the areas to be covered to achieve marketing objectives SLT has set.  To increase overall existing customers of Megaline by 30% within the next 15-18 months.  To increase the sales of Megaline existing customers by 40% within the one years.  To increase up to 50% of use of products within the 15-18 months  To developing new customers by 40 of Megaline within the next three years. Following are some of the areas to be covered to achieve marketing objectives SLT has set  Enhance customer experience by being more responsible to customer needs, delivering high quality services faster with increase value aligned to market requirements.  Increase the sales use for traditional business, reduce erosion, improve quality of services and manage cost.  Develop up to 40% of existing fixed line customers to the three way approach.(voice, data, entertainment)  Become market leader of Entertainment service and data service provider.
  • 41. 41 11. Segmenting, Targeting and Positioning a. Geographic The geographic segment covers entire area of Sri Lanka. In this area, advance systems work very well together with a Sri Lanka telecom. Therefore specific geographical areas are not considered as segments. But, there are some significant geographical areas which are significantly contributed the total Megaline revenue. Sri Lanka Telecom provides located attractive accurate customers and can produce amazing analysis based on location. The following the SLT Megaline geographic areas  Urbana areas and Rural areas  Regional division  Geographical perspective on the market brings in many business office areas  To strongly differentiated by population growth place. SLT is overall fundamental facility industry in Sri Lanka. The future plan of SLT will cover all 329 backbone connectivity across Sri Lankan for all operators. The SLT Megaline revenue increase from wholesales has continues to increase in line with their plan to become wholesales communicating partner in Sri Lanka. The business geographic segments opportunities for profitable growth and supporting the connectivity requirements for SLT Megaline. The initiatives detailed above, sure demonstrate Sri Lank Telecom's changing your world concept is seamlessly connecting all Sri Lanka to world class information, communication. b. Demographic not enough The demographic trend describes the change that may in certain demographic population over a period of time. Demographic are often used in public policy, sociology and marketing. SLT Megaline utilize demographic usually consider several variable and combine them characterize demographic profile. A demographic profile, commonly referred to as a
  • 42. 42 demographic provides sufficient information about a typical create group to create this hypothetical collective. Demographic are the traits a human population, demographic segment consist of the  Family size  Income  Home ownership  Location  Employment statues  Education level  Ethnicity c. Psychographic In considering Megalin, our target market has built long term faith towards to the SLT. Consumers believe the organization and its facility. Customers who earn fixed income, Government servants and people stabilize their family life most of the time psychologically would like to have a fixed wire line connection. This is all about psychological traits of customers including attributes such as  Personality  Beliefs  Values  Lifestyle  Attitudes
  • 43. 43 d. Behavioral The most consumers are familiar with a SLT Megaline connection. Behavioral segmentation divides customers into groups based on the way consumrs respond to, use or know the Megaline services. Megaline’s behavioral segmentations can group consumer relationships of  Customer services excellence  Quality  Innovation technology  Benefits sought  Brand loyalty  Produce user rate  Readiness to buy stage  Buying center  Income status 11.2 targeting Targeting total determination will depend on several factors of SLT Magazine connection. Target market groups are mainly  Home (individual consumer)  Offices ( corporate customers) The much of the customer demand is driven by price rather than quality of Services, services fulfillment or service assurance, however at Sri Lanka Telecom, we believe and have strategy to provide to customer with quality, choice, efficiency and importantly, overall value for money. This continuously drives our strategy to enhance customer experience by being responsible, trustworthy, efficient, and reliable and delivering a quality innovation and
  • 44. 44 market focus to Megaline service. Penetration of fixed lines connections household stands at around 67%. 11.3 Positioning Sri Lanka Telecom's corporate business can be categorized into the three broad segments of government agencies and departments, large private sectors and medium to large privet sector companies. The government sectors include very largely national scale operations such as ministration, hospital, defense establishment and the police. Perceptual map of Megaline Megaline is already positioning moderate price and high quality way in Sri Lanka market. Absolutely, that moderate price gathers large customers to Megaline brand. High price  Dialog CDMA  Lanka Ball  Megaline Low quality High quality Low price
  • 45. 45 12. Tactical marketing mix strategy developments 12.1 Product strategy The intangible service of Megaline’s product decision has to be made. So, according to market Megaline connection is now in majority level and they should reposition in themarket. A product strategy can encompass any number of products, depending on the nature of SLT’s business. They could have one strategy for each major product or, perhaps, the same strategy for all of them. For example, the current Megaline multi connections focus the quality of services to consumers. The Megaline connection is available to different category (Single connection, double connection, and triple connection) income group in market. Value is add services with provide the connection to satisfy services to different market segment. Megaline provides service where their product is the service they offer. Their product strategy helps them to determine exactly what services to offer. The product strategy identifies, in broad terms, how you plan to sell your products to your marketplace. That documents how the people in telecommunication marketplace think about SLT Megaline and business. It documents how SLT business positions its products and services and it contains their strategies for selling. In order to facilitate the responding strategy of the products will change alternative consumer perception and create image of SLT Megaline. The product strategy is a document containing any of the following  Business objectives  Descriptions of target markets, usually based on results of market research  Results of research about SLT potential clients and their needs  How Megaline wants their product to be viewed by their clients  Product features and benefits  Selling strategies  How their product features and pricing compare to their competitors.  Product changes that might enable better market positioning of their product.
  • 46. 46 12.2 Pricing strategy SLT must decide as a giant in telecommunication industry is how much to charge for their product or service. While there is no one single right way to determine their pricing strategy, fortunately there are some guidelines that will help SLT. Currently, Mgaline use a competitive and more economic pricing strategy which is in the currently market products. It available to all income target group as well as different types of segments. SLT Megaline industry price has major role. Price is considered the deciding factor for Megaline connection. However, if a SLT should better services they need to pay higher premium. The product line pricing is more suitable to SLT Megaline connection.  Penetration Pricing - The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. This approach was used by Sri Lanka Telecom. SLT needs to land grab large numbers of consumers to make it worth their while, so they offer free telephones or satellite dishes at discounted rates in order to get people to sign up for their services. Once there large number of subscribers prices gradually creep up.  Product Line Pricing - Where there is a range of products or services the pricing reflects the benefits of parts of the range. For example when it comes to Mega line basic connection would be Rs.12, 000, a connection plan and broadband or Peo TV offer as a package where it will around 11,000 and a connection plan, broadband and Peo TV offer as a package where it will around 10,000. Premium price and Product line pricing seldom reflects the cost of making the product since it delivers a range of prices that a consumer perceives as being fair incrementally over the range. It might benefit SLT to sell them singly in terms of profit margin, although they price over the whole line. Profit is made on the range rather than single items.
  • 47. 47 The other price strategies that can be use  Psychological Pricing  Optional Product Pricing.  Premium Pricing  Competitive price strategy.  Economy pricing strategy 12.3 Promotional strategy The current promotional campaign of Megaline mainly focuses on quality of services. The percentage of marketing budget is spent on media advertising while lesser is used for sales promotion. SLT Megaline connection of triple package is low price than double connection and single connection. Based on company's past experience, a suitable agency of the campaign will be selected. SLT will be brief on the concept and preferred mediums. The communication tools that will be used to conduct the campaign are as flows. Followed by ATL media next would be initiated below the line media. One awareness is created next would be launch the social media/mail campaign, giving the opportunities for the customers to share their customer experience with Megaline video, pictures or posting an article, the best/ heartfelt experience will be rewarded. Campaign will be initiated with above the line media activities. The marketing team of the Megaline category will select and agency to develop a TV/Radio commercial to create awareness on the campaign. Once the ATL and BTL media activities have been carried out, publicity will be continued via "through the line" media of poster and bill boarders.
  • 48. 48 Above the line media Utilized create awareness of the product during the early stage of brand reposition. It will be an effective enable to inform the target group, constantly remind them of the product to encourage repeat purchases.  Radio - The working crowd is in the habit of following radio shows on their way in and out of work.  Television - The advisement can be shoe during the interval of watching drama, sports and music shows.  Bill boards - it is placed in near crowd of Main Street, super market location. Below the lone media BTL communications use the media that are more niche focus to SLT. BTL communication gives the marketer the ability to tailor their messaging in a more personal manner to the audience.  Special offers - Pricing to promote a product is a very common application. There are many examples of promotional pricing including approaches such as BOGOF (Buy One Get One Free), money off vouchers and discounts. Promotional pricing is often the subject of controversy where SLT Mega line has practice. Sales are extravaganzas of promotional pricing. - Tele life insurance policy offered by SLT in partnership with Sri Lanka Insurance Corporation, provide life insurance at affordable premiums for SLT Megaline customers. The major benefit of the services is the affordability of the premiums and convenience involved. The premiums will be changed to the customer's monthly telephone bill and can be paid along with the SLT Telephone bill each month.
  • 49. 49 -New Megaline connection free interest payment plan to consumers. They can pay in 3 or 6 installments at absolutely no interest using HASB or Sampath bank credit card  Free gift - Every Megaline new connection consumers get an attractive umbrella free in 2014 as well as travelling beg with every new Megaline connection in valid into the December 2013.  Public relation - SLT was the ICT solution providers for the 2013 communication on wealth heads of government meeting (CHOGM). During the CHOGM, SLT already provided its comprehensive communication solution to multiple geographic locations where key forum of such as the CHOGM opening ceremony, main conference and government functions, business forum, people's forum and media center.
  • 50. 50  Sponsor - SLT ha support as a lead to the institute of chartered accountant. Through the line media The specific type mass advertising for forming a prospect or customers database which can be used for direct marketing activities  Social networks - It allows to work together with a brand through social media such Facebook, Twitter and YouTube.  Website - it provide all the information to consumers about services, promotion, variety of products and etc.
  • 51. 51 12.4 Distribution strategy The SLT provide the services through the centers in island wide  Teleshops – 36  Regional offices - 34  Maintenance centers – 22  Contact centers - 7 SLT Megaline focuses on different areas. Based on the four main strategic themes of services, operation, network and group synergy offer world class ICT and information and information services to all Sri Lankan anywhere, anytime, It has best class deceiver of produce and services SLT Megaline is vital behind connectivity in Sri Lanka, delivering faster access ti information and communication in all the key economic sectors of the country. As Sri Lanka mechanisms up to services millions of tourists, the tourists related sectors such as airport and flight, leisure needs and transportation are expected to keep up with the services need of its customers. The banking and finance sectors play a key role in the country's systems and sophisticated technology platforms becomes their communication backbone which facilities all their business and banking transactions. Now is absolutely not the time to blindly continue the status quo with SLT’s distribution strategies. The Internet is creating sea-changes in terms of traditional manufacturer- distributor relations. It has seen significant waves of disintermediation in multiple product lines, and can facilitate cost-effective broadening of distribution channels. Meanwhile, improvements in supply chain management technologies must also be factored into choice of distribution partners.
  • 52. 52 12.5 Physical evidence strategy The intangible of the services experience of SLT services provide by the companies by way of attaching physical products to the offers. The inseparability and the intangibility makes it difficult for a customers to build a distinct perception by the use of services along, hence companies take the help of telephone sets, ambience of the services administrating outlets is also obtained by way pf providing value adding services However customers tend to rely on physical cues to help them evaluate the product before they buy it. Therefore marketers develop what we call physical evidence to replace these physical cues in a service. There are many examples of physical evidence, including some of the following:  This includes the design of the building itself, signage around the building, and parking at the building, how the building is landscaped and the environment that surrounds the building. This is part of what is known as the services cape.  The interior of any service environment is important. This includes the interior design of the facility, how well it is equipped, internal signage, how well the internal environment is laid out, and aspects such as temperature and air conditioning. This is also part of the services cape.  Packaging  Internet/web pages  voice mails  internet facilities  Paperwork (such as invoices, tickets and dispatch notes)  Brochures  Furnishings  Signage (such as those on aircraft and vehicles)  Uniforms and employee dress  Business cards  Mailboxes
  • 53. 53 Some organizations depend heavily upon physical evidence as a means of marketing communications, for example SLT Megaline with seasonal offers (Christmas). This is important to their corporate image. 12.6 Process strategy The process in telecom industry has been the major shortcoming during that days of the state monopoly, however the current competition and quality services expectation demanding and discerning customers have exercised enough pressures on all services providers to provide essential infrastructure to run an efficient and trouble free continuous telecom services. The process issues that these telecom companies need to attend to on priority relate to  Ensuring availability of new connectivity immediately - This issue has largely been solved. SLT is in a position to issue new connection instantly.  Ensuring network availability at all times and all places failing under the jurisdiction of the telecom company - The issue has still not been solved satisfactorily. There are companies whose network gets blacked during peak hour. The connectivity also drops frequently as the person travels away from the main towns.  Ensuring transparency in billing systems and the definition of prices or charge being recovered from the customers - there is still a need to open up further and it is expected that the increasing competition will bring in not only transparency but business ethic too. Process is an element of service that sees the customer experiencing an SLT’s offering. It's best viewed as something that their customer participates in at different points in time. At each stage of the process, marketers:  Deliver value through all elements of the marketing mix. Process, physical evidence and people enhance services.  Feedback can be taken and the mix can be altered.  Customers are retained, and other services or products are extended and marked to them.
  • 54. 54  The process itself can be tailored to the needs of different individuals, experiencing a similar service at the same time. 12.7 People strategy People are a very important role in telecommunication services marketing, in establish an understanding of the customer expectation and the effects of having delivered as per the expectation established and understood by the telecom services organization. Most of the companies in telecom services marketing relies this and they have set up two different kinds of people set ups in dealing with customers. SLT sting believes of arranging training schedules and development programs for their people in the front offices and the people in back offices. The people in the front offices of the permits too are often sponsored foe such intensive training in consumer handling, customer sensitivity and etc. In order to make sure that the process SLT internally in managed very well. The competition in in telecommunication services being very intensive, each company ensure their people are able to recover any kind of services loss immediately as otherwise it is quit difficult to not only retain an existing customers but still more difficult to enlist a new customers. Hence, SLT has a very strong people development policy and strategy. People are the most important element of any service or experience. Services tend to be produced and consumed at the same moment, and aspects of the customer experience are altered to meet the individual needs of the person consuming it. Most of us can think of a situation where the personal service offered by individuals has made people buy from people that they like, so the attitude, skills and appearance of all staff need to be first class. People have an important role in service delivery, they are relied upon to deliver and maintain transactional marketing and people play an important part in the customer relationship
  • 55. 55 13. Budgets and financial Analysis Projected profit and loss statement for the Magaline The budget analysis of Megaline connection 4 typify distribute the target areas in Sri Lanka  Metro - Colombo  Region 1 - Central province, North central & North western  region 2 - Western province without Colombo, Uva province, Sabaragamuwa province & Southern province  Region 3 - Northern province, Eastern province Income Note Amounts Amount in percentage Sales Expenditure Administrative Distribution Financial Any other Net profit 01 02 03 04 05 10,000,000,000 4,000,000,000 3,000,000,000 1,200,000,000 800,000,000 1,000,000,000 100% 40% 30% 12% 8% 10%
  • 56. 56 Note – 02 Sales revenue Product Area 12 months sales revenue in Sri Lankan rupees Megaline connection Metro 4,000,000,000 Megaline connection Region 1 3,000,000,000 Megaline connection Region 1 2,000,000,000 Megaline connection Region 1 1,000,000,000 Note - 2 Administration cost Product Area 12 months administration cost in Sri Lankan rupees Megaline connection Metro 1.500,000,000 Megaline connection Region 1 1.100,000,000 Megaline connection Region 1 800,000,000 Megaline connection Region 1 600,000,000 Note – 3 Distribution cost Product Area 12 months distribution cost in Sri Lankan rupees Megaline connection Metro 1,000,000,000 Megaline connection Region 1 1,000,000,000 Megaline connection Region 1 600,000,000 Megaline connection Region 1 400,000,000
  • 57. 57 Note - 4 Financial cost Product Area 12 months financial cost in Sri Lankan rupees Megaline connection Metro 450,000,000 Megaline connection Region 1 350,000,000 Megaline connection Region 1 300,000,000 Megaline connection Region 1 100,000,000 Note – 5 other costs Product Area 12 months other coat in Sri Lankan rupees Megaline connection Metro 300,000,000 Megaline connection Region 1 250,000,000 Megaline connection Region 1 150,000,000 Megaline connection Region 1 100,000,000
  • 58. 58 14) Marketing Strategy implementation First we must understand the role and impotence of overall effort, assign responsibilities to making things happen, what need to be done and the feedback. There are three key steps to be followed to implement successful marketing plan in practical implementation.  Having adequate resources to carrying out planning activities.  Understand the lead time, those who participate in execution element  Understand completely in detail departments and vendors requirements to implement each element. Following shows responsibilities allocations and possible cost for the plan. Responsibilities Authorities Cost Marketing plan & strategies Senior marketing manger 500,000.00 Internal communication C.E.O 1,00,000.00 Systems & Process Chief corporate & information officers 500,000.00 Assign peoples Admin manager 1,000,000.00 Promotional activity Senior marketing manger 7,000,000.00 Total 10,000,000.00
  • 59. 59
  • 60. 60 15 Monitoring and evaluation Monitoring - Monitoring a strategic marketing plan requires that some challenging questions have been asked, direction for the company's future has been set, and specific, measurable goals have been targeted, identified as viable, and assigned via a budget. A marketing strategy should include defining the vision on products, placement, pricing and promotion and then detailing the vision within a budget that specifies monthly goals. The following could be done in order to monitor and evaluate the progress of the marketing plan for SLT megaline  Conducting monthly sales review meetings  Branch and outlet managers should communicate with top management in a timely basis  Building awareness among sales agents  If any drop in sales, corrective measures should be taken  Training the staff  Motivating the SLT customer service officers  Conducting customer researches  Conducting a market share analysis  Stay in touch with competitor activities  Comparing the actual results with stated goals at the end of the year Evaluation - When we determine the level of success in achieving the plan, goals and objectives, research and evaluation are usually given less time, money and effort than goal- setting and the actual communications tactics. The evaluation techniques include the following.  Mail and e-mail surveys  Online samples  Communications audits  Telephone surveys  PR audits
  • 61. 61  CRM  Database searches Finally the implementation of a successful marketing plan for the year 2013 can be evaluate with the achievement of the set sales budget for the year. Increase in market share for total drive.
  • 62. 62 References  Colin Gilligan and Richard M.S. Wilson “Strategic marketing planning” special Indian Edition.  Understating from “Marketing planning” Lecturer.  http://www.slt.lk/data/aboutslt/profile.htm  http://www.trc.gov.lk/  http://www.cbsl.gov.lk/  www.dialog.lk/  www.lankabell.com/  www.suntel.lk/  SLT’s annual report – 2013  Interview conducted to P. Roshan Kaluarachchi of Chief Marketing Officer