1. Sun's primary target market is teens aged 10-21 and the working class aged 22-59 who want to stay connected to family, friends, and partners. 2. Sun has a market share of around 15.2 million subscribers, or 18% of the 86.4 million subscriber market in the Philippines. 3. Sun's marketing strategy focuses on niche targeting and uses affordable pricing across prepaid and postpaid services, with distribution nationwide and communication through all media including internet, TV, and print ads.

1. The 10 Step Marketing Plan for Sun CellularFrancis Benson C. HugoAteneo Graduate School of Businessfrancishugo.blogspot.com

2. This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class.The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.When appropriate, data are “masked” so as not to create unexpected conflicts.The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.Disclaimerfrancishugo.blogspot.com

3. Sun Cellular offers the latest in GSM technology, providing voice services (local, national, international calling), messaging services (short text or multimedia messaging), outbound and inbound international roaming, broadband wireless technology, and value-added services such as Mobile Internet, and up-to-date downloadable contents like ringtones, dial tunes, picture messages, and logos.Company Profilefrancishugo.blogspot.com

4. Steps 1 to 5Summary headline of Sun’s PTM and marketSun’s PTM are teens (10-21) and the working class (22-59)Who want to feel always connected to their family, friends and preferred sex. Can choose Smart & GlobeGap is focus on prepaid and postpaid services. Mobile broadband market (WAP, GPRS, MMS) and users using 3G and HSPA need to be developed and tapped as wellMarket size is 86.4M subscribers, Sun’s niche is 15.2M (18%)francishugo.blogspot.com

5. Sun Postpaid, Prepaid, Broadband and International servicesAffordableUses all forms of media, internet and print ads Is distributed nationwideGeneric Strategy is NicheSteps 6 to 10Summary of Sun’s marketing mix & strategyfrancishugo.blogspot.com

6. 1. Sun lights the way of both young and adult Filipinos Demographics: teens and working classMale or female, single or married, belongs to whatever social classLifestyle: on-the-go: those who love to have 24/7 call and text messaging to family, wide network of friends and preferred sexStudents (high school, college, grad, med and law)Professionals (CEOs, lawyers, doctors, etc.)Employed or self-employed, businessmen, investorsBehavior: Filipinos consume most of their time texting and calling- whoever, wherever and whenever; always ensure their cell phone has a loadfrancishugo.blogspot.com

7. 2. Sun’s PTM needsI am happy if I’m always connected I want to be lovedReference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler7francishugo.blogspot.com

8. 2. Teens and the working class have basically the same needsTeens and the working class people need to belong, to be loved, and self-actualizationTeens and working class people prefer Sun cellular over other telecommunication providers because of cheap call & text rates, excellent customer service and the brand’s promise of 24/7 unlimited connection with loved onesTeens and working class sector demand cheap means of communication, excellent customer service, and the feeling of security to be always connected to other peoplefrancishugo.blogspot.com

9. 3a. Sun has two gigantic direct competitors “The Power to Lead” “Abot mo ang mundo.”francishugo.blogspot.com

10. 3a. Other indirect competitorsIndirect: InternetSnail MailEmailTelephonePersonal/face-to-face communicationfrancishugo.blogspot.com

11. 3a. Principal bases of competitionVariables:PriceCoverageQuality of service supportSpeed of network accessAvailability of calling featuresValue-for-money products & servicesfrancishugo.blogspot.com

12. Competitive Position Map for Telecom providersas of 2010Price vs. Age MatrixSmartGlobeGlobeSmartGlobeSmartSunSunSunfrancishugo.blogspot.com

13. Benefit positioning vs. brand map for telecommunications providerBenefit Positioning vs. Brand Matrixfrancishugo.blogspot.com

14. 4. Gap between Sun customers and competitionWhere is the marketing opportunity?boost and develop mobile broadband networks and other value-added servicesWhat NWDs are not being addressed?mobile broadband, improvement of current 3G and HSPAWhat can be the unique selling proposition for the new product (totally new or repositioned.)Longer talking time for its 24/7 unlimited call and text, lower call and text ratesfrancishugo.blogspot.com

15. 5a. Estimation of market size using competitor data: Smart1. Sales of Smart from PLDT 2010 Annual Report (source: PLDT website)Total Sales (service revenues from its Wireless business) – P 95B% of sales from multi-product: 95B revenues from wireless segment / 144B consolidated revenues = 65.89%2. As of December 2010, it has 45.6M subscribers (Smart website)3. 45.6M / 86.4M subscribers = 53% market sharefrancishugo.blogspot.com

16. 5b. Estimation of market size using Sun’sdataClaimed market share: 18%Guesstimate on market shareFair share of market: 15.2M subscribers (August 2010)Distribution extentThe company makes its Prepaid Services available through its thousands of:Xpressload retailers, Distributors andThe Sun Shop outletsPostpaid Services are provided to individuals, families, small and medium enterprises, and local companiesHistorical sales (Digitel’s wireless service segment based on its 2010 Annual Report) :2008 – P 7B

17. 2009 – P 10B

18. 2010 – P 13Bfrancishugo.blogspot.com

19. 5c. Estimation of market size using customer data: Philippine Demographic PopulationSource: NSO66.291M out of 94.013M or 71% of the total populationfrancishugo.blogspot.com

20. 5c. Estimation of market size using customer data: Philippine Demographic PopulationUsage per day or per yearPer person (ages 10-59)66.291M x P25 ave. load per day = P1.657BP1.657B daily x 365 days = P 604.9BPer householdAverage persons in a household = 4 (source: NSO)P1.657B / 4 = P414M per household per dayP414M x 365 days = P151B per yearfrancishugo.blogspot.com

21. 5. Market size in pesos, based on year 2010 dataCompetitor (Smart) data= 95B sales in 2010 / 53% market share = P179BCompany (Sun)data = 13B sales in 2010 / 18% market share = P 72BCustomer Usage (2010 projected Phil. Population) data = P604.9Bmarket size = P604BNote: a person can subscribe to more than 1 network providerfrancishugo.blogspot.com

22. 6a. Prepaid SIM Cards on the marketGlobe Prepaid SIMSmart Prepaid SIMSun Prepaid SIMfrancishugo.blogspot.com

23. 6a. Sun’s Regular Prepaid Cardsfrancishugo.blogspot.com

24. 6a. Prepaid Cards of Competitorsfrancishugo.blogspot.com

25. 6a. Show how Sun product looks vs. competition Direct competitorIndirect competitorsSun products displayed in The Sun Shop @ Shangri-La Mallfrancishugo.blogspot.com

26. 6b. Sun Product DescriptionDescribe the physical features, specifications, attributes of the product.Info may be in product packaging, label, brochures or website.francishugo.blogspot.com

27. 6b. Sun Product DescriptionPrepaid Productsfrancishugo.blogspot.com

28. 6b. Sun Product DescriptionPrepaid Productsfrancishugo.blogspot.com

29. 6b. Sun Product DescriptionPrepaid Productsfrancishugo.blogspot.com

30. 7. PriceComparison of Call and Text RatesPricing strategy used: Penetration pricingfrancishugo.blogspot.com

31. 7. PriceComparison of Prepaid Call & Text CardsSun offers more free textsfrancishugo.blogspot.com

32. 8a. Modes of communication that Sun uses** ranking, 1-highest use213francishugo.blogspot.com

33. 8a. Sun’s TV commercialsUnderscores its “UNLIMITED” brand equity always, in a very affordable pricefrancishugo.blogspot.com

34. 8a. Sun’s latest Promos from its websiteHot deals offeredfrancishugo.blogspot.com

35. 8a. Sun’s latest Promos from its websiteCall abroad for only P2/min with Sun P20 for 10 service! Todo IDD now has lower rates to more countries!Ideal for families with OFWsfrancishugo.blogspot.com

36. 8a. Sun’s latest Promos from its websitefrancishugo.blogspot.com

37. 8a. Sun’s latest Promos from flyers/print adsThru testimonials of other peoplefrancishugo.blogspot.com

38. 8a. Sun’s latest Promos from flyers/print adsThru offering affordable dealsfrancishugo.blogspot.com

39. 8a. Sun’s latest Promos from flyers/print adsAffordable and reasonable postpaid plansfrancishugo.blogspot.com

40. 8a. Sun’s latest Promos from flyers/print adsThru communicating its UNLIMITED packages in every product/servicefrancishugo.blogspot.com

41. 8a. Sun’s latest Promos from flyers/print adsIt also shows that it has products suited for the upper working class francishugo.blogspot.com

42. Sun’s websiteIt shows the awards received by the Company in spite of being a relatively new player in the industryfrancishugo.blogspot.com

43. 8b. Globe websiteCommunicates the idea of the customer as being the king- he can do whatever he wants, in his wayfrancishugo.blogspot.com

44. 8b. Globe latest TV commercialCommunicates the idea of the customer as being the king- he can do whatever he wants, in his wayfrancishugo.blogspot.com

45. 8b. Globe promosHottest Android devicesMore than 200,000 appsMobile Internet Plansfrancishugo.blogspot.com

46. 8b. Globe promosAdditional servicesPromo is exclusive to Globe Prepaid subscribers.francishugo.blogspot.com

47. 8b. Globe promosAdditional servicesfrancishugo.blogspot.com

48. 8b. Globe promosAdditional servicesfrancishugo.blogspot.com

49. 8b. Globe promosAdditional servicesfrancishugo.blogspot.com

50. 8b. Smart websiteShows that the company has many things to offerfrancishugo.blogspot.com

51. 8b. Smart TV commercialShows that its PTM are mostly high end consumersfrancishugo.blogspot.com

52. 8b. Smart promotions from AdsSponsorshipsfrancishugo.blogspot.com

53. 8b. Smart promotionsSponsorshipsfrancishugo.blogspot.com

54. 8b. Smart promotionsfrancishugo.blogspot.com

55. 8b. Why Sun’s communication stands outConsistent theme in every mode of communication used : UNLIMITEDCompany websiteTV commercialfrancishugo.blogspot.com

56. 8b. Why Sun’s communication stands outAppealing to the masses : affordable packagesTV commercialCompany websitefrancishugo.blogspot.com

57. 9. PlaceWhere are Sun products available?The company makes its Prepaid Services available through its thousands of:Xpressload retailers, The Sun Shop outletsDistributors and retail outlets nationwidePostpaid Services are provided to individuals, families, small and medium enterprises, and local companiesfrancishugo.blogspot.com

58. The Sun Shop at SM Megamallfrancishugo.blogspot.com

59. Globe Store at SM Megamallfrancishugo.blogspot.com

60. 10. Sun’s generic winning strategyWhich of the 4 strategies are being used? (bold and underline to most dominant strategy)Low Cost ProducerSupply and Distribution LeverageDifferentiationNichefrancishugo.blogspot.com

61. 59SUMMARYfrancishugo.blogspot.com

62. Steps 1 to 5Summary headline of Sun’s PTM and marketSun’s PTM are teens (10-21) and the working class (22-59)Who want to feel always connected to their family, friends and preferred sex. Can choose Smart & GlobeGap is focus on prepaid and postpaid services. Mobile broadband market (WAP, GPRS, MMS) and users using 3G and HSPA need to be developed and tapped as wellMarket size is 86.4M subscribers, Sun’s niche is 15.2M (18%)francishugo.blogspot.com