The Marketing Plan Outline NCELL
Transcript of The Marketing Plan Outline NCELL
The Marketing Plan
Executive Overview
With many operators facing stagnating or declining voice revenues, data services adoption and
revenues have moved centre stage in communication service provider strategies. Success here
has seen incredible growth in data traffic, something that is set to accelerate according to most
analysts. Growth is being driven by multiple factors, not least of which is the convergence of
services, devices, and technologies. Equally operators have facilitated this growth by upgrading
their networks, subsidizing more powerful devices and attractively pricing data plans.
The simplicity and attractive price point of flat-rated data plans has encouraged mass adoption of
high speed internet connections. Low network access prices for end-users are essential to the
business models of content providers as well as the device manufacturers on whose devices the
content is provided. But what is becoming apparent is that flat rate or ‘unlimited’ data packages
are unsustainable. The cost of serving these data hungry customers and the money earned have
started to diverge – for many operators the cost of meeting the data needs has become too high.
Operators are now faced with several strategic questions. Not the least of which include how to
profit from data growth, how best to manage finite network resources, and how to be central to
the customer experience.
The good news is that we as a Mobile operator can systematize the instinctive capabilities of our
network and Billing system, to create value by introducing new services and data plans using
Policy Management. Policy Management allows us to flexibly configure and re-imagine their
services, by enabling them to fine-tune and segment their offerings around: Data Volumes;
Time-of-day conditions; Application type; URL/Domain, Protocol; Location; Content categories
etc.
So our marketing plan is to introduce Ncell user with Variety of Data Package which they can
subscribe on their requirement basis. This will help us to provide our customer with multiple
choices in value added Mobile data service and good customer experience. As our initial
marketing map we have planned to introduce two different products for two different target
markets.
1. Smart Internet: this is targeted to students, youths, and house wife’s and business women
for age of 13 to 50.
2. Corporate Internet Ncell: targeted for Business oriented market and corporate houses.
These two products are internet service scheme which Ncell subscribe can activate from there
handset or Ncell Data card. This scheme will allow them to use internet and browsing as per
there requirement but pay smartly for the service. And as an operator it will allow us to
efficiently manage our internet pipe to generate revenue without investing more on internet
backhaul bandwidth.
Market Review
Trends overview:
Changing Mobile Internet Landscape
Applications, Services, Handsets and the Business Models around Mobile Internet are
evolving at extremely fast pace .As per the research done by Cisco for trend analysis of
mobile data traffic, we can see below that by 2015 , demand for Mobile data traffic will reach
0.6 million Terabyte per month, Which is Hugh enough to kill any Mobile data operator’s
network.
Contributor to the growth of such a huge amount of mobile internet traffic are Classified as
below, out of which mobile video would be 66.5 % of total data traffic by 2015.
These Enhanced Services such as Video, P2P file sharing, Gaming are growing exponentially in
the internet world. On the other hand Penetration of Smart phones is increasing, contributing to
the data growth. Smart phones are less than 10 % of all handsets, but generate over 50% of
global mobile data traffic as shown below. Introduction of more and more smart phones in the
market, changing trends of using internet data, introduction of USB dongles are the main
contributor to amplify the demand of more and more internet bandwidth.
Study of our data trend also shows that, Data volume requirement is very high whereas increase
in revenue as compared to the increase in data usage is very low.So we have focused this
marketing scheme to increase our revenue as compared to data usage.
Market segments
In order to increase revenue base with current capacity, after investing lot of time and resources
in market research, we have segmented Mobile data user market into two segments. One is
corporate users; whose internet using behavior is more of constant type and this segment is not
too much sensitive towards price where as highly sensitive towards quality, brand and service.
On the other hand our big chunk of the market is next segment which covers more than 70% of
our subscriber base, it is prepaid subscriber base. This market segment poses impulsive internet
using behavior. This segment is highly price sensitive. Since prepaid segment is the biggest
source for us to generate revenue in terms of Quantity we have designed our product based on
specific requirement of both the segment.
Target market
Our marketing scheme Target these two market segment to generate revenue and enhance good
customer experience. Our Primary Market Segment is prepaid users as mentioned earlier it
covers more than 70% of our subscriber base in terms of internet usage and revenue. We have
designed scheme for this target customer named as Smart Internet: this is targeted to students,
youths, and house wife’s and business women for age of 13 to 50. This target market is price
sensitive where they use social networking sites, mailing sites, video streaming, online gaming
and various chatting sites. So in this product of ours “Smart Internet” we are going to bundle
these sites in one. so subscribe can buy this bundle named “smart internet”, which consists of
their five favorite sites with Wikipedia free for students except streaming traffic and they can pay
certain amount at the beginning of the month and use unlimited service for one month’s but only
for their favorite web site. But if they use other website besides selected one they should pay as
per our normal data plan. This will increases internet using behaviors and provide flexible and
manageable options for mobile internet users.
Our secondary target market would be corporate subscribers, whose choice for internet consists
of multiple corporate emails, push mails, news sites; stock updates, downloads of attachments,
application download and sports sites including social networking sites. These subscribers are
highly sensitive towards quality, brand and service and they are our reference group for brand
promotion. So we have created Corporate Internet bundle for this segment targeting corporate
subscribers. So our product consists of bundle of one corporate email, two business sites, 2 sports
site, social networking site and on top of that complementary stock update daily. This bundle is
also same as pay per site as described for primary target market. So when corporate subscriber
purchases this bundle they will pay certain amount at the beginning of the months and use
unlimited service included in bundle for one year. But for other web sites which are not included
in the bundle they will pay as per the normal tariff plan.
Competitive Review
With this marketing scheme we have analyzed that we can change the trend of charging
flat rate data plan. Competitive edge of this scheme is, it will definitely help us to
generate revenue with the existing data pipe which reduces the cost of data backhaul by
increasing the revenue.
Product and Business Review
Customer buying trends are driving the increased importance of bundled and packaged
service offerings. End users are attracted to bundles because of the price, convenience
and peace of mind they offer. From an operator’s perspective, they make for both a high
value offer and a driver of revenue. Of particular interest to pre-paid subscribers, are
occasions when they want to enjoy equivalent advantages to a post-paid subscriber, but
without changing their payment plan. Allowing customers to bolt-on packages, can
provide an additional source of income, and enable a subscriber to gain access to services
at a more favorable rate. Combining the attractiveness of lower prices, with prepaid cost
control, bolt-on packages offer subscribers new value and operators’ incremental
revenue.
1. Strength: We as an operator already have strong technical infrastructure, Strong marketing
team to implement the plan and an expert marketing communication and customer care team
to handle presales and after sales issue. Objective of this product and marketing strategy is to
be innovative and pioneer in the mobile internet service so that we can gain competitive edge
over our competitors in this field. This scheme is easy to implement in our system without
hassle and complex legal formality saving both CAPEX and OPEX for implementation of
new system. We can accommodate this plan within marketing budget since we will be
targeting this scheme to our existing customer to encourage them to use most of our data
service. So marketing communication within Ncell users will be cost effective and we have
planned to attract new subscriber to Ncell through this scheme.
2. Weaknesses: If we have to highlight our weakness, we are new with this scheme and no one
has experience about this product and its marketing response. So we have gaps yet to be
identified. We do not have expert technical team who can handle technical complexity if
arises after launch of the product.
3. Opportunities:
Cost reduction
a. 40% savings on Internet Backhaul
b. 20% savings on RAN/Spectrum
c. 30% optimization of image/text contents
Revenue
a. 40% Increase in the Volume
b. 50% increase in the Hits
c. 20% increase in (ARPU) Average revenue per unit.
Control/ Management
a. Effective Bandwidth Management
b. Manage Quality Of Experience and customer experience
c. Customer satisfaction due to flexibility of choices for the data service
4. Threats: Nepali internet market is price sensitive market; if same produce or scheme is
launched by competitor then we will have hard time competing with them in price. We can
only compete with them in technology and quality not in price. There is always tradeoff
between price and quality and our objective is to provide valued quality. If government body
imposes restriction in such scheme as there are no rules regarding data sells restriction for
Data segration service yet, there will be threat of failing of this plan. Since technology is
changing every day, if we delay in launching this concept, there is threat of difficulty in
coping with new technology. And the as always Market is unpredictable and there is risk of
our product getting unpopular.
5. Goals and Objectives
The main goal of this scheme is to encourage Nepali market to use mobile data at affordable
and valued price. As besides young generation, having so much potential of mobile data
market, it is not prominent as such because Nepali people are unaware of its uses and
benefits. So our goal is to sell data scheme to as much as subscribers as possible and main
objective of doing this is increase revenue by optimizing existing resources and cut down the
burden of paying hug amount to internet backhaul provider as per the increase in demand of
internet bandwidth.
Sales objectives
Sales objective in this case would be to increase sales volume of existing internet resource, by
implementation of this smart and corporate scheme. It will definitely help to increase revenue as
it encourage subscriber to use mobile internet. This will also provide our sales additional tool to
sell Ncell services to new subscribers. Value added services are always of choice by subscribers
besides voice and SMS.
Marketing objectives
Marketing objective is to complement sales objective finally but besides that this scheme will
provide marketing to segment the mobile internet market so that we can launch scheme based on
market segmentation. Even thought corporate market is small in Nepal but it is a niche market
which can never be neglected so marketing objective in this case would be to find out what is the
volume of this niche market and its subscribers. Marketing will use opportunity for Brand
visibility, and convince customer that we have high tech solution to adopt their changing
requirement.
Strategies
Our Strategy is to manipulate Marketing Mix in such a way that we can get best marketing tool
for our product. We have defined each parameter as below.
Positioning: By using this tool we will try to create an image or identity in the minds of our
target market as defined for our product, brand, or organization as a whole.
1. Functional positions
o Our Product will solve the problems of our customer who are paying flat rate for
internet usage. Our product will provide them opportunity to choose their favorite
web site bundle and pay less. From marketing point of view we are creating
Width of our product line which will provide options to our customers.
o This will provide benefits to customers by giving matched value for their cost.
2. Symbolic positions
o We will be successful in Self-image enhancement by providing innovative and
high quality services at affordable price. We will use our corporate customers as a
reference group and use them as pilot customers for our corporate product to get
brand visibility.
o Ego identification
o As we are providing free Wikipedia browsing for students and free stock update
to our corporate clients we will be creating Belongingness and social
meaningfulness to our customer about our product and services and company as a
whole. This will provide our target market with Affective fulfillment for their
requirement.
3. Experiential positions
o Since our product is new in market, we will present this product to our subscribers
by publishing it in our official web site with the video of how to activate and use
the service. We will publish this information in our official face book and Blogs
and twitter as well as website by Provide sensory stimulation and cognitive
stimulation to our subscriber. this will create a urgency among our subscriber to
know and use our products.
Product
Our marketing plan is to introduce Ncell user with Variety of Data Package which they can
subscribe on their requirement basis. This will help us to provide our customer with multiple
choices in value added Mobile data service and good customer experience. As our initial
marketing map we have planned to introduce two different products for two different target
markets.
1. Smart Internet: this is targeted to students, youths, and house wife’s and business women
for age of 13 to 50.
2. Corporate Internet Ncell: targeted for Business oriented market and corporate houses.
These two products are internet service scheme which Ncell subscribe can activate from there
handset or Ncell Data card. This scheme will allow them to use internet and browsing as per
there requirement but pay smartly for the service. And as an operator it will allow us to
efficiently manage our internet pipe to generate revenue without investing more on internet
backhaul bandwidth.
Pricing
1. Smart Internet: this is targeted to students, youths, and house wife’s and business women
for age of 13 to 50. This is price sensitive market but hug consumption capacity so we
have priced it as 499 per month which will give us better revenue even profit marginal
value is very less.
2. Corporate Internet Ncell: targeted for Business oriented market and corporate houses.
This is not a price sensitive market but with less consumption capacity and very high
quality sensitive so we have priced it as 699 per month which will give us better revenue
because profit margin value is high comparatively.
Distribution
Existing distribution channel for our SIM card and customer support will be
1. 8000 dealers all around Nepal
2. 500 Ncell sops
3. 100 Ncell centers
And subscribers will be able to activate service through SMS, USSD short code, IVR
“interactive voice message”, Call center and through our Ecare and subscriber’s portal at our
website.
Communications/Promotion
With pre-paid users perceived as being more value conscious, promotions play a vital role in
stimulating revenue. However, blanket promotions risk destroying value by needlessly
cutting prices or offering free services without sufficient operator reward. This is because
what constitutes values depends on the segment; to be successful promotions need to be
differentiated with relevant benefits. But with personal data either missing or incomplete, and
lower customer values making traditional marketing approaches expensive, these promotions
need to be carefully crafted to be profitable. This requires the use of multiple promotional
triggers, and the ability to run and manage multiple promotional offers in parallel.
Examples of effective recharge promotions include:
1. Recharge bonus - i.e. every time you recharge you’ll receive a credit
2. Encouraging multiple refills of an account during a defined period - e.g., recharge 4 times
this month and have weekend sms free
3. Varying recharge rates - to incentivize refills that use low cost channels (ATM, IVR, SSD
etc.), to reduce the cost of fulfillment
4. Persuading a subscriber to maintain a minimum balance level to enjoy lower rates - e.g.,
maintain a balance of more than $30 and enjoy reduced voice calls
5. Committing a customer to an automatic monthly recharge in exchange for a bundle of
services
6. Action Plan and Implementation
Media plan: As a marketing communication media we have decided to use Advertisement in
Newspaper as primary means of communication, Television as a media tool similarly we will be
using our internal media such as Sending SMS to all of our subscribers informing them about our
schemes. We will use Play cards which we will be distributing to college students and customers
in Ncell center and Ncell shop. We will place 10 big hoading Boards at main city of Nepal,
Kathmandu, Pokhara ,Nayarini , Bheri , Biratnagar and Janakpur.
Budget: The secret to creating a high-impact marketing plan is to optimize your limited budget.
A one-time radio ad blitz, glossy brochure, or flash-enabled website will quickly erode our
budget and upset our marketing plans. We will Use low-budget marketing to get our message out
to our customers on a regular basis, and watch sales revenue grow. We believe Expensive ad
exposure does not necessarily translate to increased sales. Every marketing dollar spent should
produce a good return in sales
Find The Right Target: A critical part of your marketing plan is targeting the right customer.
For a low-budget high-impact marketing plan to work, find customers who are easy to identify
and affordable to reach.
Forgetting the mass market and we are planning to go for small niche markets that will help us to
plan our budged properly.
Make Ourself News Worthy: A mention of our company in the right media can help deliver our
marketing message in a low cost manner resulting in plenty of media talk.
Maximize Referrals: The most cost-effective method of reaching new customers is by referrals
from satisfied customers. A satisfied customer telling others about our business is more effective
than any fancy ad campaign. We will Spend time to get customer referrals on a weekly basis.
These are just a few tactics and strategies we will be using to create a high-impact marketing
plan on a low-budget. Marketing success comes from creativity; not from having the biggest
budget.
We have allocated 20% of our total marketing budget for this camping which comes around 3
million for 3 years target. This is particularly for marketing communication because budgeting
for technical implementation and system up gradation will be included in budget of technical
team. So in our marketing plan we have included budget for marketing only.
Schedule:
We will be launching it on the occasion of Christmas and New Year 2012. We will start our
preparation earlier then that. We will be implementing our phase by phase Marketing plan as
shown in the Gantt chat.
Assignments:
7. Evaluation
Lead tracking systems
Sales reviews