Launching Docomo in Sri Lanka


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Launching Docomo in Sri Lanka

  2. 2. <ul><li>Japan's premier provider of leading-edge mobile voice, data and multimedia services. </li></ul><ul><li>More than 55 million customers in Japan, the company is one of the world's largest mobile communications operators. </li></ul><ul><li>In 2001, introduced FOMA™, the world's first 3G commercial mobile service based on W-CDMA, bringing the DOCOMO brand global recognition </li></ul><ul><li>DOCOMO launched Osaifu-Keitai™, a mobile wallet platform enabling quick, contactless transactions for cash, credit, ID etc. </li></ul>
  3. 3. <ul><li>Building on a solid foundation of research and development, and guided by its customer-first philosophy, the company leverages the power of mobile communications to enable customers to enrich their lives. </li></ul><ul><li>DOCOMO is expanding its global reach through offices and subsidiaries in Asia, Europe and North America, as well as strategic alliances with mobile and multimedia service providers in markets worldwide. </li></ul><ul><li>DOCOMO had net income of JPY 4,719 billion (USD 4,804 million) on operating revenue of JPY 44,480 billion (USD 45,281 million) in fiscal 2008 (ended March 2009). </li></ul>
  4. 4. <ul><li>Corporate Philosophy </li></ul><ul><li>With the aim of creating a new world of communications culture, NDOCOMO will devote all the skills, know-how and energy towards the establishment of more &quot;personal communication&quot; with our customers that contributes to their heartfelt satisfaction. </li></ul>
  5. 5. Brand Communication
  6. 6. Advancing the Role of the Mobile Phone
  7. 7. <ul><li>NTT DOCOMO services have now evolved from voice calls to data communication, and now to linkages with conventional brick &mortar services. </li></ul><ul><li>As convergence between existing services (paper/cash-based, etc) and the mobile IT technologies continues to expand, a truly ubiquitous world is beginning to unfold. </li></ul>
  8. 8. Home Country Analysis JAPAN
  9. 9. <ul><li>Population – 127 Million </li></ul><ul><li>Literacy Rate – 99% </li></ul><ul><li>Life Expectancy – 82.1 Years </li></ul><ul><li>GDP (PPP) - $ 4 Trillion </li></ul><ul><li>Per Capita (PPP) - $32,600 </li></ul><ul><li>Exports - $ 516 Billion </li></ul><ul><li>Imports - $ 491 Billion </li></ul>JAPAN
  10. 10. <ul><li>Constraints : </li></ul><ul><li>Negative GDP growth (- 5.7 % in 2009). </li></ul><ul><li>Ageing Population. </li></ul><ul><li>Over 95 % Telecom Penetration. </li></ul><ul><li>Increased Competition in Home Market. </li></ul>JAPAN These constraints along with an over 50% market share in Japan has forced NTT Docomo to look at expanding overseas markets in developing countries.
  11. 11. Investments in overseas operations
  12. 12. Investments in other related companies
  13. 13. WHY SRI LANKA ?
  14. 14. Trade Relations <ul><li>Sri Lanka and Japan have enjoyed healthy bilateral relations in the area of trade and investments. </li></ul><ul><li>Currently more than sixty Japanese companies are operating in the country generating exports and transfer of modern technology to Sri Lanka. </li></ul><ul><li>The Japanese Commerce and Industry Association in Sri Lanka are playing a coordinator role among the Japanese enterprises in Sri Lanka. </li></ul><ul><li>One significant event on promoting the Sri Lanka and Japanese businesses is the 15th Joint Meeting of the Sri Lanka-Japan and Japan-Sri Lanka Business Co-operation Committees held in Colombo in November 2009. </li></ul>
  15. 15. Host Country Analysis SRI LANKA
  16. 16. <ul><li>Geography </li></ul><ul><li>Area - 65,610 sq km </li></ul><ul><ul><li>Coastline - 1,340 km </li></ul></ul><ul><ul><li>Climate - Tropical Monsoon </li></ul></ul><ul><ul><li>Natural Resources : Limestone, graphite, mineral </li></ul></ul><ul><ul><li>sands, gems, phosphates, clay, hydropower. </li></ul></ul><ul><ul><li>Terrain : Mostly low, flat to rolling plain; mountains </li></ul></ul><ul><ul><li>in south-central interior. </li></ul></ul><ul><ul><li>Natural Hazards : Occasional cyclones and tornadoes. </li></ul></ul>SRI LANKA
  17. 17. <ul><ul><li>GDP (PPP) – $ 96 Billion </li></ul></ul><ul><ul><li>GDP Growth – 3.5 % </li></ul></ul><ul><ul><li>Inflation – 3.4% </li></ul></ul><ul><ul><li>Poverty Rate – 23% </li></ul></ul><ul><ul><li>Unemployment – 5.9% </li></ul></ul><ul><ul><li>GINI Index – 49 (2007) </li></ul></ul><ul><ul><li>Investment – 23% of GDP </li></ul></ul><ul><ul><li>Exports - $ 7 Billion, Imports – $9.6 Billion </li></ul></ul>SRI LANKA <ul><li>Economy (2009) </li></ul><ul><li>Legal system : Highly complex mixture of English common law, Roman-Dutch, Kandyan, and Jaffna Tamil law; has not accepted compulsory ICJ jurisdiction. </li></ul><ul><li>Government type : Republic </li></ul>
  18. 18. SRI LANKA <ul><ul><li>Labour Force – 8.1 million. </li></ul></ul><ul><ul><li>Labour Force by Occupation </li></ul></ul><ul><ul><li>Agriculture – 33% </li></ul></ul><ul><ul><li>Industry – 26% </li></ul></ul><ul><ul><li>Services – 41% </li></ul></ul><ul><ul><li>Agriculture - Products: rice, sugarcane, grains, pulses, oilseed, spices, vegetables, fruit, tea, rubber, coconuts; milk, eggs, hides, beef; fish. </li></ul></ul><ul><ul><li>Industries : processing of rubber, tea, coconuts, tobacco and other agricultural commodities; telecommunications, insurance, banking, tourism, shipping; clothing, textiles; cement, petroleum refining, information technology services, construction. </li></ul></ul>
  19. 19. <ul><li>Demographics </li></ul><ul><ul><li>Population – 21.3 Million </li></ul></ul><ul><ul><li>Median Age – 30.9 Years </li></ul></ul><ul><ul><li>Population Growth – 0.9% </li></ul></ul><ul><ul><li>Urbanization – 15% </li></ul></ul><ul><ul><li>Life Expectancy – 75.14 years </li></ul></ul><ul><ul><li>Literacy Rate – 90.7% </li></ul></ul>SRI LANKA <ul><ul><li>Ethnic Groups : Sinhalese 73.8%, Sri Lankan Moors 7.2%, </li></ul></ul><ul><ul><li>Indian Tamil 4.6%, Sri Lankan Tamil 3.9% </li></ul></ul><ul><ul><li>Language : Sinhala – 74%, Tamil – 18%, Others – 8% </li></ul></ul><ul><ul><li>Religion : Buddhist 69.1%, Muslim 7.6%, Hindu 7.1%, Christian 6.2% </li></ul></ul>
  20. 20. <ul><li>Influenced largely by religion and by past colonizers – Dutch, Portuguese, and British. </li></ul><ul><li>Although the vast majority is traditional, in certain big cities the influence of western influence is prominent with the entry of McDonalds, Pizza Hut, KFC, Levis, Bench, etc. </li></ul><ul><li>Being one of the largest producers of tea in the world, Sri Lankans drink a lot of tea everyday. </li></ul><ul><li>Sports plays a very big part in Sri Lankan culture and cricket is a religion especially after Sri Lanka’s victory in the World Cup. </li></ul>SRI LANKA CULTURE
  21. 21. <ul><li>The Sinhala and Tamil new year (&quot;Aluth Avurudhu&quot; in Sinhala, &quot;Puththandu&quot; in Tamil) is a very large cultural event on the island. </li></ul><ul><li>The cuisine of Sri Lanka draws influence from that of India, as well as colonists and foreign traders with Rice being a staple diet. </li></ul><ul><li>Sri Lanka's culture also revolves around religion. The Buddhist community of Sri Lanka observe Poya Days, which are also important days of prayers to the Hindus, once per month according to the Lunar calendar. </li></ul>SRI LANKA CULTURE
  22. 22. Telecom <ul><li>Sri Lanka has over 12 million mobile subscribers and nearly four million fixed line subscribers. </li></ul><ul><li>Sri Lanka is one of the first countries in the Asian region to introduce 3G, 3.5G services and High Speed Packet Access (HSPA) technology. </li></ul><ul><li>This has enabled subscribers to have access not only to voice communications, but also to a wide range of features such as video conferencing, video streaming, mobile TV, music streaming and high speed internet. </li></ul>SRI LANKA
  23. 23. <ul><li>With a tele-density of 50%, there is further potential for growth in the mobile users and broadband users. </li></ul><ul><li>Mobile Number portability is bound to result in churn from existing operators . </li></ul><ul><li>There is bound to be a shift towards Value Added Services from basic mobile services. </li></ul>Telecom SRI LANKA All the above factors makes it favorable for NTT Docomo to enter the Sri Lankan market.
  24. 24. Marketing Plan <ul><li>NTT Docomo to bring in the expertise in terms of Technology, Processes & Products. </li></ul><ul><li>Mobitel to offer expertise in understanding the local market, communications, distribution, etc. </li></ul>Entry Mode Have a Joint Venture with
  25. 25. Business Monitor International,August 2009 Battlefield
  26. 26. <ul><li>Sales Objectives (By 2013) </li></ul><ul><li>To be No.1 Mobile service provider. </li></ul><ul><li>7 Million Mobile Users </li></ul><ul><li>3 Million Broadband Users </li></ul><ul><li>1 Million Mobile Wallet Users </li></ul><ul><li>Budget </li></ul><ul><li>Investment - $ 400 Million </li></ul><ul><li>Break Even – 3 Years </li></ul>
  27. 27. <ul><li>Strategy </li></ul><ul><li>“ Per Second Billing” as a value for money to acquire new customers from other operators. </li></ul><ul><li>Penetrate the Rural Market with a handset priced at less than $10 to target the rural base along with competitive pricing. </li></ul><ul><li>Position the service offering as being “Technically Superior” with a Japanese origin. </li></ul><ul><li>Target the affluent segment to increase the penetration of new products like Wireless Internet, Mobile Wallet. </li></ul>
  28. 28. <ul><li>Tactics </li></ul><ul><li>Innovative advertising of the “Per Second” billing using the brand ambassador. </li></ul><ul><li>Free Trial promotion of Mobile Wallet in Modern Retail Outlets, Corporate Houses, etc. </li></ul><ul><li>Free Monthly Subscriptions for VAS with the customer having an option to renew at a charge after 60 days. </li></ul><ul><li>Reaching out to “Opinion Leaders” who are critical in influencing the purchase decision of rural consumers in Sri Lanka. </li></ul>
  30. 30. Product <ul><li>Prepaid </li></ul><ul><li>Postpaid </li></ul><ul><li>VAS </li></ul><ul><li>Wireless Internet (3G) </li></ul><ul><li>Mobile Wallet (eWallet) </li></ul><ul><li> The Products would be positioned as being </li></ul><ul><li>“ Technically Superior” compared to competition </li></ul>
  31. 31. <ul><li>Price would be one of the key elements of the marketing mix. </li></ul><ul><li>“ Per Second Billing” would be a first from NTT Docomo in Sri Lanka and is likely to shake the market. </li></ul><ul><li>Tariff Plans & Recharge Options to be simplified to ensure clarity. </li></ul><ul><li>Pricing on eWallet to be kept low initially to increase penetration of the service. </li></ul>Price
  32. 32. Connect in just less than a SECOND! … with TECHNOLOGY in your hands PAY PER SECOND
  33. 33. <ul><li>Brand to associate itself with Cricket to reach out to the masses. </li></ul><ul><li>Kumar Sangakarra to be enrolled as a brand ambassador to sell the concept of e Wallet. </li></ul><ul><li>Jacqueline Fernandez would promote Value added services. </li></ul><ul><li>Special handset bundles to cover both spectrums of the market. </li></ul><ul><li>Special promotional activities to target Postpaid churn from competition networks through MNP. </li></ul>Promotion
  34. 34. Get BEAUTY TIPS @ Re. 1 per day Want to look good?
  35. 35. <ul><li>Advertising to be done via Television, Radio and Outdoor. </li></ul><ul><li>Pull Strategy to be used by positioning the products as superior in technology. </li></ul><ul><li>Special schemes with hotels, shopping centers, multiplexes for using the Mobile Wallet. </li></ul>Promotion
  36. 36. <ul><li>Prepaid offerings would be targeted at the rural segment. </li></ul><ul><li>Distributors to be appointed with rural market knowledge so recharge cards are available at small shops. </li></ul><ul><li>Postpaid, Wireless Internet & Mobile offerings to be targeted at the urban customer. </li></ul><ul><li>Mobi Docomo to tie-up with a Bank to offer Mobile Wallet services. </li></ul><ul><li>The Bank would function as a channel partner to ensure product awareness & sales across branches. </li></ul><ul><li>MobiDocomo to also ensure direct retail presence at major metros. These outlets to be positioned as “Technology Centers”. </li></ul>Place
  37. 37. <ul><li>Existing Staff from competitor to be recruited in key positions. </li></ul><ul><li>Customer Service Offerings for Postpaid & Mobile Wallet to be superior compared to competition. </li></ul><ul><li>Outsource non-core operations to rationalize staffing requirements. </li></ul>People
  38. 38. <ul><li>Technology Superiority being the key differentiator need </li></ul><ul><li>is to align its core process to ensure it delivers value for the </li></ul><ul><li>Sri Lankan Consumer. </li></ul><ul><li>Regulatory compliance requirements for Mobile Wallet is critical as it involves dealing in currency. </li></ul><ul><li>External Agency to be appointed to audit processes and also to conduct an independent survey on Customer Satisfaction across all product segments. </li></ul>Process
  39. 39. <ul><li>Ambience of the “Mobi Docomo” Stores across the major metros and other customer touch-points. </li></ul><ul><li>Packaging of the recharge coupons, pamphlets, etc. </li></ul><ul><li>Mobile Wallet reading machines and other customer touch-points. </li></ul>Physical Evidence
  40. 40. <ul><li>Implementation </li></ul><ul><li>& </li></ul><ul><li>Control </li></ul>
  41. 41. <ul><li>Key Performance Measures </li></ul><ul><li>% Overall Market Share. </li></ul><ul><li>% Share in New Subscriber Additions. </li></ul><ul><li>% Churn. </li></ul><ul><li>Average Revenue Per User (ARPU). </li></ul><ul><li>Minutes of Usage (MOU) per User. </li></ul><ul><li>Customer Satisfaction Scores. </li></ul><ul><li>Cost per Customer (Operating Expenses). </li></ul><ul><li>ROI </li></ul>
  42. 42. <ul><li>Post Launch in Sri Lanka. </li></ul><ul><li>Look at various checks and balances that are required to ensure that the unit is meeting its business objectives. </li></ul>
  43. 43. <ul><li>Performance on key parameters to be reviewed periodically at various levels. </li></ul><ul><li>Rewards of vendors, distributors, advertising agency to be linked to performance on these critical parameters. </li></ul><ul><li>Conduct a gap analysis across all areas of the operations. </li></ul>
  44. 44. <ul><li>All “Gaps” which are related to technology & processes should be addressed by NTT Docomo. </li></ul><ul><li>Gaps relating to “People”, “Local Market Understanding”, etc to be addressed through the Local Partner – Mobitel. </li></ul><ul><li>The “Implementation & Control” phase is a continuous process that needs to be followed by MOBIDOCOMO. </li></ul>
  45. 45. Thank You ありがとうございました