marketing plan Marketing Plan - MBA 437

3 YEAR MARKETING PLAN FOR DUAL SIM HANDSETS

TEAM: INTOUCH Jone Fifita Litia Naua Filiti Lomaloma Peni Volavola Joana Tira

S86169060 S11071632 S11043852 S11064505 S11001107

TABLE OF CONTENT
1.0 2.0 EXECUTIVE SUMMARY …………………………………………………………………………………………. SITUATIONAL ANALYSIS………………………………………………………………………………………… 2.1 The Mobile Industry in Fiji 2.1.1 The Company 2.1.2 The Product 2.1.3 Market Summary 2.1.4 Target Market 2.1.5 Geographic 2.1.6 Market Needs 2.1.7 Market Trends 2.1.8 Market Growth 2.2 SWOT Analysis 2.3 Competition 2.4 Product Offering 2.5 Key to Success 2.6 Critical Issues MARKET STRATEGY……………………………………………………………………………………………….. 3.1 Vision 3.1.1 Mission 3.1.2 TFL Values 3.2 Market Objectives 3.2.1 Market Segmentation 3.2.2 Business Market Segmentation 3.2.3 Residential Market Segmentation 3.2.4 Exploiting the Market 3.3 Financial Objectives 3.4 Target Markets 3.5 Product Positioning 3.6 Strategies 3.7 Marketing Mix 3.8 Market Research 3.8.1 Potential Marketing Problems 3.8.2 Potential Marketing Opportunities FINANCIAL………………………………………………………………………………………………………. …….. 4.1 Break Even Analysis 4.2 Sales Forecast 4.3 Expense Forecast CONTROLS………………………………………………………………………………………………………. ……. 5.1 Implementation 5.2 Marketing Organization 5.3 Contingency Planning 5.3.1 Difficulties & Risks RECOMMENDATION…………………………………………………………………………………………….. BIBLIOGRAPHY…………………………………………………………………………………………………….. GLOSSARY……………………………………………………………………………………………………………. 2 3

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4.0

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6.0 7.0 8.0

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1.0

EXECUTIVE SUMMARY

It is the mission of Telecom Fiji Limited to provide customers with top quality products to enhance business opportunities for the company and its shareholders with the greatest chance of communicating using Dual Mode Handsets for both the CDMA and GSM networks. The product enhances business opportunities for the company and its shareholders and provides value to its customers around Fiji. These handsets will not only give customers an opportunity to have both modes of communication in one handset but also offer customers great value for their money and affordable call rates for its diverse customer segments. For the past 6 years Telecom Fiji Limited introduced the TFL Easytel Handi phones having a successful operation plan and sale, TFL moved further in establishing a more versatile form of communication for customers, hence the introduction of these Dual Mode Handsets in the market. The Dual Mode Handsets allow the use of a UIM Card (Easytel) and a SIM Card (Mobile) in one (1) phone. It will also allow customers make and receive GSM and CDMA calls from one single handset. The dual standby feature will enable customers to put the first call on hold and answer the second call. These phones operate off the CDMA 2000 platform which was put in place by TFL in 2006 positioning the company for inevitable competition. The Dual Mode Handset pricing will depend on the brand and model of the phone, however, will be at a very competitive rate to customers. The figures shown in the marketing plan and assumptions based on the operational costs of the CDMA 2000 Dual Mode Handsets determine profit for TFL, in addition the move into more products of the same. Calling plans for the Dual Mode Handsets has been prepared keeping TFL’s customer segment in mind and features highly competitive rates that will entice its customers to purchase the handset to thoroughly enjoy the full benefits of carrying this handset. The handsets will be an added advantage for the targeted market as customers will not have to worry about carrying two phones in their pockets. The TFL Marketing and Product Development teams as well as the Executive Management team will be responsible for ensuring that the strategies outlined in this plan are followed through internally as well as with our channel partners for a successful implementation providing reliable service and future brands and models to its customers for the Dual Mode Handsets. The three year goals for Telecom Fiji Limited are:    Achieve break-even by year two Establish sales forecast by year three Establish expense forecast and control by year three

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2.0
2.1

SITUATIONAL ANALYSIS
The Mobile Industry in Fiji

The establishment of mobile phone communications was introduced by Vodafone as the sole service provider with exclusive licence granted by the Fiji government in 1994. The current mobile market in Fiji has three main players which are Vodafone, Digicel and INKK. Vodafone Fiji was the sole provider with the exclusive license in the mobile industry in 1994 that was granted by the Government of Fiji. In late 2007 INKK another mobile service provider which utilizes Vodafone Fiji’s network infrastructure to stimulate form of competition in the market. It was viewed by many as a tactic to counter the entry of another major player in the mobile industry, which Digicel started its operations in late 2008. This concept is widely known as ‘challenger brand’ marketing technique. The entrance of Digicel into the mobile market brought price war on call and SMS rates, affordable cost of handsets that was a great deal of relief to customers. The highest mobile market share is Vodafone Fiji Limited with 60% and Digicel with 40%.

Mobile Market Share
Vodafone Fiji Limited Digicel Fiji Limited

40% 60%

With the rigid network infrastructure of TFL’s CDMA 2000 (established in 2006) with its Easytel service, the launch of a new product such as the Dual Mode Handset, which operates off the same wireless network platform will enhance the business opportunities for Telecom Fiji. This will grow TFL’s business in the mobile market by offering customers value for their money with attractive handsets and call rates for its diverse customer segments. Telecom Fiji continues to introduce new products and services to the advance technology that greatly aided the growth of the business as it journeys to the competitive environment. Customers, especially tertiary level students and young adults are now using their mobile phones to make a style statement. With TFL’s Dual Mode Handsets, this is made easier with its stylish and innovative design. Page | 3

TFL being a local telecommunication company is a full service carrier with a well established infrastructure offering both copper and wireless ICT services to Fiji with a wide range of products in voice and data. Our infrastructure underpins the countries voice and data services and in the backbone of business communications in Fiji. TFL has technical and customer service staff across the country ensuring we deliver the highest quality service possible. Along with Connect, Xceed and TransTel, TFL has the expertise and resources to meet the needs of businesses and residential customer’s communication needs more than any other communications company in Fiji.

2.1.1 The Company
Telecom Fiji Limited (TFL) is a 100% owned company and the sole provider of local and national (trunk) telephony services, and owns the only public switched telephone network in Fiji. The TFL network consists of 55 telephone exchanges throughout Fiji and Rotuma, connecting more than 101,000 customers. TFL provides and operates telecommunication services in Fiji under the provisions of the Post & Telecommunications Decrees 1989. This license gives the company a monopoly on the provision of network services, but the provision of telecommunication equipment is open to competition. Fiji Post and Telecommunications Limited (FPTL) was registered as a private limited liability company on 18 August 1989. On 1 st July 1996, FPTL split into two companies: Telecom Fiji Limited and Post Fiji Limited which the two companies work alliance for the rural areas. Telephony products and services offered by TFL include local and national (trunk) telephony services, data services, private leased lines, switched digital data circuits, information processing, maritime telecommunications and emergency services which is the backbone of business communication in Fiji. TFL has 10 Customer Care Centres, 5 TFL shops and qualified technical and experienced customer service staff across the country ensuring we deliver the highest quality service possible. Today, TFL is one of Fiji’s major corporations. Its prestigious position has been achieved through the contribution of its shareholders and employees and through our commitment to our customers. As a company with one of the largest customer bases in the country, TFL has decided to launch its Dual Mode Handsets to get a bigger reach in the market. With an aim of making it easier for our customers to keep in constant touch with friends & family as well as to conduct business with TFL, we implemented state of the art technology that both improved the customers experience and improved efficiency through our CDMA 2000 platform. The idea behind the diversification is to better use the company’s infrastructure and the geographical location with 85% coverage to contribute to the overall profitability of Telecom Fiji Limited. TFL keeps its promises, listens and responds, keeps things simple, creates exciting communications possibilities, cares and is committed to the continuous investment in communications technology, innovative research and development. Also works together with Government to have a better reach in the rural areas. Organizations turn to TFL because of the Page | 4

values that are attributed to our brand and they believe we can deliver the promise of integrated communications and IT in a connected world. “DIVERSIFICATION GROWTH makes sense when good opportunities exist outside the present businesses – the industry is highly attractive and the company has the right mix of business strengths to be successful”

2.1.2 The Product
TFL, traditionally, has been known for providing wired line services. The telephone system was first introduced in Fiji in 1895 by the Colonial Sugar Refinery Company in the early days of the sugar industry. The first fully digitized (fully electronic) with stored programmes control electronic exchange was installed in 1984. The process of having a telephone installed and activated would take approximately two to three weeks. While this traditional approach has remained, the advanced technology has brought a paradigm shift in the ways people communicate prompted TFL to change into the fast evolving world of mobile phones and high speed internet. This will shorter the delivery time frames and will increase customer satisfaction and productivity.

The Dual Mode Handset allows customers to keep in touch with friends, family & colleagues with the use of one SIM and one UIM slot from two different networks (GSM & CDMA) in one phone. These handsets operate off TFL’s CDMA 2000 wireless network platform and provide its customers with mobility in this modern day and age. Customers will be able to make and receive GSM and CDMA calls from one single handset. The dual standby feature will enable customers to put the first call on hold and answer the second call. The Dual Mode Handset also features with touch screen, very competitive rates and will offer customers of all target age groups a fashionable mobile handset in their pockets. Customers can select their choice of mobile hand set from two well known brands (Alcatel & Samsung). The CDMA coverage range is unprecedented and customers will benefit from the fact the TFL has got them covered wherever they may be in Fiji.

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The expectancy and attitude customers evaluate products and services by combing their brand beliefs, the positive, negatives and according to choice need TFL to be intense with its marketing campaigns in order to be in par with its competitors in the mobile market. The issues TFL can encounter are the deregulation of the market, imitation and cheaper mobile handsets in the market that customers can immensely select.

2.1.3 Market Summary
In the mobile market there are currently three major players of mobile business in Fiji. From the three companies, two are internationally owned with a relatively small corporate and residential market compared to Fiji’s immediate neighbours. These companies placed more emphasis vigorously marketing their products with various promotional items attached to it.    Vodafone is now 15 years old in the market Digicel commenced operations on 1st Oct, 2008 Inkk has been around since 14th November, 2007

So far, a study to determine on average how many people use mobiles and at what intervals has not been carried out. This study may prove to be a difficult exercise considering the fact that the use of mobiles is largely on the need basis as mobiles have became fashionable. The industry growth will therefore correspond with the growth in the number of people using mobiles and most importantly the coverage in certain areas. The deregulation of the telecommunications market was mostly concentrated on the mobile market where Vodafone held an exclusive licence for 14 years. Digicel was given a provisional licence in 2005 to operate a mobile company. In 2007 Digicel was awarded a mobile licence. This led to the opening up of the telecommunications market and resulting in the market share for Vodafone dropped from 100% to 70%. Digicel took 15% of the market share in 2007 while Ink Mobile took the other 15% in the first 6 months of the deregulation of the market. TFL will enter this market with its Dual Mode Handsets but not in direct competition with these mobile companies as TFL’s handsets offer i ts customers the choice of selecting between their preferred mobile (GSM) providers. The Dual Mode Handsets allows the use of a UIM Card & a SIM Card in one phone.  UIM Card - EasyTel Number  SIM Card - Mobile Number Currently the highest mobile market share is Vodafone Fiji Limited with 60% and Digicel with 40%.

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2.1.4 Target Markets
TFL will target the Corporate and the Residential market segments to intensively market the Dual Mode Handsets by leveraging off the TFL brand name as well as the product differentiation concept to create a buzz in the market before the actual launch. Major focus in the Residential segment (with approximately 80,000 customers) will be on the tertiary student market for its prepaid plans and the postpaid plans will be targeted mainly for TFL’s Corporate segment (with approximately 7,450 customers including Government) to ensure a steady stream in monthly rental revenue. Marketing will be done using the traditional print advertisements, use of billboards and TV commercials to get a greater reach. The use of the ebusiness concept will be another added advantage for the business to enable TFL’s net savvy customers to make their Dual Mode handset purchases online.

2.1.5 Geographic
TFL have a set of geographic targets and this falls into two categories; urban and rural customers for both postpaid and prepaid. This also covers residential and business clients. The CDMA 2000 wireless coverage for urban areas is 90% and rural areas are 80% which is indicated in red.

TFL’s CDMA Coverage

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2.1.6 Market Needs
TFL through this Samsung dual phone is providing the ICT needs with the wide range of accessories and value added service to fulfil the following benefits that are important to each customer:  Quality Services through its CDMA 2000 Network  Quality products through each wide range of Dual Mode Samsung  Exemplary to each customer base to build and maintain a sustainable business relationship and loyalty.

2.1.7 Market Trends
TFL through its products and service will differentiate itself by marketing its products and services that are not previously available to each current and potential consumer. The emphasis in the past is to sell single sim mode handsets with very few replacement parts. At this instance TFL will continue to sell the dual sim mode products to current and potential customers in the fast growing mobile segment. With the introduction of dual mode handsets customers have the experience of using two types of network that operates in a different frequency and platform with very low cost.

2.1.8 Market Growth
With the intense price war associated with aggressive marketing approaches through advertising and promotions will set a platform of choice for consumers in migrating from one service provider to another.

2.2

SWOT Analysis

SWOT Analysis of TFL’s Dual Mode Handsets A concise analysis of the Dual Mode Handsets has outlined the following: Strengths     Supplementary business of well established Telecommunications Company with a very strong customer base TFL has a very wide reach with its branches and other business units strategically located in and around almost around 80% of the country Well trained and qualified personnel to handle customer queries The Dual Mode Handset offers choice by combining two networks into one phone

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Provides user convenience – one phone instead of two for multiple mobile network users Renowned company in terms of service, quality and reliability Affordable pricing – giveaway retail price to stimulate handset sales and generate increased calling traffic revenue Offer free talk-time and cheaper call rates for on network calls for customers purchasing the handsets Two different branded phones to cater for both low and high end markets All the features of the other mobile phones and sleek design Covers the major population centres focusing on urban areas and better coverage than the other mobile companies on the two main islands The CDMA platform is sufficient to the current communication needs with wider coverage that covers major populations These handsets are also capable of mobile data (can be used as a modem to browse the internet)

Weaknesses               Monopolistic culture may hinder dynamic innovative growth Need to collaborate with the competition – other mobile network providers High end corporate customers prefer their GSM Blackberry’s to access emails & the internet on the go Option of only one other mobile network provider services on the Dual Mode Handset No guarantees that the increase usage on the one mobile provider ’s GSM network will reciprocate on the TFL CDMA network High handset sales will not mean high calling revenue for TFL Price may be perceived as affordable only to middle & high income earners Handsets are not compatible to the enhanced features of 3G network services mobile phones like video calling New entrant in the mobile handset market Lack of brand awareness since it is a new product The handsets cannot be purchased online from the TFL website Limited coverage for the outer islands when compared to the other three mobile network providers The CDMA network limited to the fixed area services without NGWN (New Generation Wireless Network) Extensive coverage is not available for mobile data plans

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Opportunities                    Develop TFL’s established infrastructure to enhance its services & products for continuous growth for both company & its shareholders TFL’s well established financial stability will allow the company to market its Dual Mode Handsets at a lower margin than its competitors and gain a stronghold in the market The TFL brand itself will enhance the image of these handsets to have credible bearing in the minds of its targeted market segments Allow greater collaboration between the three mobile network operators to benefit customers and the business Two different network services can be used simultaneously in one handset Price competition drives prices down making the handsets affordable to the diverse customer segments Product ownership – Retail item and also no monthly fee for prepaid users Look at the possibility of moving the CDMA network into 3G to be compatible with other 3G phones to allow features such as video calling Web advertising – ability to access product information on-line via the TFL website Web based selling – ability to promote online sales for the handsets which is not offered by any of the other 3 mobile companies Look at possibility to allow greater collaboration between the three mobile networks to benefit customers and the overall business Offer calling discounts for both prepaid and postpaid customer bases Look at introducing CDMA platform based Blackberry devices for high end corporate market users with email and internet access features Expand the CDMA coverage for its mobile data plans and offer this service to customers for an additional revenue stream To become a part of an essential, fashionable & vibrant mobile industry Extend the CDMA coverage to include additional outer islands and the interior of the 2 major islands which is not covered by any of the companies Great opportunity to target the student market which is increasingly using mobiles to make a style statement Explore greater participation in the mobile services market – Licensing Value added product such as corporate extensions, integrated with the traditional landline into CDM wireless.

Threats      Intense (almost cut throat) competition through the established and new telecommunications companies in the mobile industry The mobile communications industry is a very competitive environment with four players (including TFL) in a very small market Government regulatory policies – protects national interests High infrastructure setup costs for new base stations in rural areas & remote islands Land acquisition for base station setup also brings forth issues with landowning units

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Political instability in the country adds further strain to the marketing of this handset The global economic crisis has led to many companies tightening their budgets on calling expenditure Illegal call traffic on the internet – Voice over IP (VOIP) service provides such as Skype The mobile industry has reached the maturity stage in Fiji with a deep saturation of the market by the respective mobile companies Increasing bargaining power of the suppliers & the buyers – downward pressure on pricing which pushes margins down on the handsets due to the high level of competition Threat of new entrants – legal & illegal operators Threat of substitutes as well as inferior products from other mobile operators Unethical behaviour by competitors due to intense rivalry for market share – putting out comparative price & calling plan print advertisements in newspapers Limited real time marketing reach for outer islands and the innermost rural areas of the two major islands – limited awareness on handset Social & environmental issues concerning local protocol Increase in the competitions network traffic revenue which can affect TFL’s CDMA network calling revenue Increased advertising/marketing from the other mobile companies may prompt TFL to reciprocate and in the process stretch its marketing budget for the product Handsets may be used to generate network traffic and revenue benefits for other mobile network providers Shrinking corporate customer base as companies tighten expenditure during this economic downturn Resistance by other mobile companies may involve referral to the Commerce Commission

2.3

Competition

The mobile market became a very competitive market when the deregulation of the market took place and the competition has been intensive ever since. Part of the intensity of the competitive market is the heavy advertising whereby mobile firms have increased their marketing budgets by huge percentages to become visible to potential customers. Another major contributor to the intense competition are the price reductions on handsets and freebies that the mobile companies are offering which includes free recharge values as well as doubleup or triple up. "Competition will benefit the investor, the consumer and the economy, said interim Prime Minister, Commodore Frank Bainimarama."It will have an enormous impact on the cost of doing business. Companies will be able to enjoy the same competitive prices that their overseas counterparts have when making international phone calls.”

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In today’s very competitive marketplace a strategy that insures a consistent approach to offering your product or services in a way that will outsell the competition is critical. However, in concert with defining the marketing strategy you must also have a well defied methodology for the day to day process of implementing it. It is of little value to have a strategy if you lack either the resources or the expertise to implement it. In the process of creating a marketing strategy you must consider many factors, some are more important than the others. Because each strategy must address some unique consideration, it is not reasonable to identify ‘every’ important factor at a generic level. However, many are common to all marketing strategies. Some of the more critical ones are described below. You begin the creation of your strategy by deciding what the overall objective of your enterprise should be. In general this falls into one of four categories:   If the market is very attractive and your enterprise is one of the strongest in the industry you will want to invest your best resources in support of your offering. If the market is very attractive but your enterprise is one of the weaker ones in the industry you must concentrate on strengthening the enterprise, using your offering as a stepping stone towards this objective. If the market is not especially attractive, but your enterprise is one of the strongest in the industry then an effective marketing and sales effort for your offering will be good for generating near term profits. If the market is not especially attractive and your enterprise is one of the weaker ones in the industry you should promote this offering only if it supports a more profitable part of your business (for instance, if the segment completes a product line range) or if it absorbs some of the overhead costs of a more profitable segment. Otherwise, you should determine the most cost effective way to divest your enterprise of this offering.

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2.4

Product Offering

TFL‘s CDMA 2000 offers several mobile products that have been in service since its inception in 2006. The first product that was developed was the Huawei Easytel handi mobile phones. These phones offered in three different colours and were sold below market prices. The second product offered was the Alcatel Easytel Handi that also was available in three different colours. The third product offered was the Alcatel dual handi phones which have dual Sims. These operate in CDMA and GSM networks here in Fiji. The latest inclusion is the Samsung to be introduced this year which is a well known brand name which has revolutionized the communication industry with latest technological developments and accessories.

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2.5

Keys to Success

The keys to success are the outcome of TFL’s good product development after careful evaluation and analysis of;  TFL defining the Value segment process such as market research and company self analysis in terms customer wants and needs which are reflected in its slim looks, colour, and hi tech features  TFL’s Value development process including new product development, sourcing strategy through its supply chain and vendor selection through tender evaluation  Value delivering process such as advertisements in the TV, local newspaper road show promotions that TFL will deliver the promised communication services promised

2.6

Critical Issues

TFL being a new player and force in the wireless communication industry is in the early stages however trying to establish its mark through it products and services. Samsung will face a lot of issues;  Trying to establish its presence in the Fiji mobile market  Pursue controlled growth in a saturated market that dictates the payroll expense will never exceed the revenue base  Constant monitor customer satisfaction ensuring the growth strategy will never compromise service and satisfaction levels

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3.0 3.1

MARKETING STRATEGY Vision

“The World at your fingertips” is TFL’s vision slogan, which is technology neutral, and portrays TFL giving its customers global reach through their fingertips, be it telephony, internet or any future ICT communications technology.”

3.1.1 Mission
“We exist to provide cost effective, efficient and reliable means of communication at any time from and to anywhere across the globe in a way that is seamless and maximizes customer satisfaction whilst optimizing returns to our shareholders.”

3.1.2 TFL Values
To go forward, henceforth, and inculcate our vision and mission into our new culture we must embrace the following values: 1. 2. 3. 4. 5. 6. 7. 8. Total Customer Focus Taking Ownership of Problems Flexible Empowerment Uncompromising Ethics Morally Courageous Innovative Commitment to a Shared Vision Supportive Teamwork

3.2

Marketing Objectives

TFL has set the following marketing objectives for the Dual Mode Handsets and the preceding content will outline how it will be achieved:   To sell at least 5,000 handsets (a combination of both Alcatel & Samsung) from all of its 22 Customer Care Centers, 5 TFL Shops. To increase the demand of these handsets by at least 10% in the first three months of its launch and by at least 20 % in the following 3 months with vigorous marketing campaigns to increase customer awareness and desire To become the preferred distributor/seller of the dual mode handsets/mobile phones in Fiji with reliable and efficient back up service To achieve an annual sales target of approximately $8.79 million with a projected growth of 10% by the end of the first year, a growth of 20% in year 2 and 30% in year 3

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TFL intends to penetrate the existing mobile market to grow its overall business, reputation and brand image.

3.2.1 Market Segmentation
The process of Market segmentation is dividing a market into distinct groups of buyers with different needs, characteristics or behaviour who might require separate products or marketing mixes. The task of marketing team is to identify these segments and decide which ones to target because a company cannot connect with all customers in large, broad or diverse markets. Market targeting involves evaluating each segment’s attractiveness and deciding which segments to enter. Therefore TFL position its products to occupy a clear distinctive and desirable place relatively to compete its products in the minds of target consumers. TFL segment its customers of the following categories:  Residential o Postpaid o Prepaid Business o Top 200 o Corporate Sector o Government o Small & Medium

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3.2.2 Business Market Segment
Segmentation of TFL’s customers is done based on the revenue per customer and not on the number of working line. There are four market sub segments in the corporate market that will be targeted by TFL for their dual mode handsets. First, is the Top 200 customer base segment which is already an established client base through TFL’s various landline, data and its other information communication technology services. Secondly, the Government which has about 86 departments is another market which will be targeted for this handset. The third market segment in the corporate sector is the Medium Businesses which constitute of 365 companies. These three segmented markets are managed by nominated TFL Account Managers who already have established contacts with various people within these organisations. The fourth segment in this corporate market is the Small Businesses which constitutes of 6800 small scale companies. These companies’ needs are managed by a set group of Te lemarketers within the TFL. Small and Medium businesses are also a very important area to look out for as a large number of businesses fall in this category. TFL has targeted this area as most of these businesses have CDMA Easytel facilities and they can be easily convinced to switch to dual mode handsets for Page | 15

greater mobility. The success in the market as discussed above is associated with mobility, branding as well as efficient and reliable service. TFL is a household name synonymous with reliable and effective customer service and now offers an added benefit of mobility to its vast customer base. The features of this dual mode handset will enable the business executive or a government official to carry his/her GSM number as well as his ‘landline’ number wh erever they may be within Fiji. The Marketing team also keeps a tab on new products that are introduced in the market by existing operators as well as the promotional elements that attract the wide range of customers around Fiji. TFL idea of reduced calling rates, cheaper handsets is to win customers to take advantage of the benefits; the disadvantage of course is the market saturation. In a small economy like Fiji not many new companies are formed rapidly. The market share for Telecom Fiji at the moment is expected to be with its landline and CDMA Easytel service that will remain at the same level with little or no rapid change.

3.2.3 Residential Market Segment
The toughest competition in this market for TFL is the residential customers as it constitute of individuals who are high income earners, middle income earners, low income earners and tertiary students. There are approximately (80,000) customers comprise of residential markets that is further divided into postpaid and prepaid segments. TFL has 33,400 postpaid customers and about 46,600 prepaid customers. This market has intensive competition as mobile companies are all competing to take hold of customers in this market share because it has the ability to target diverse individual choices in each company. Telecom Fiji has to provide various incentive packages to this target market. Here there are four market sub-segments as mentioned above. The most ideal target market out of the four is the tertiary student base as they are keen users of technologically advanced and fashionable communication instruments. Quality & reliability of service are important factors for these segments however, the most important during this economic downturn is price, and therefore, the affordability is also very important in this market. TFL will have to provide competitive prices for its handsets as well as highly competitive call rates to succeed in this target market. Quality & reliability of service are important factors for these segments however, the most important during this economic downturn is price, and therefore, the affordability is also very important in this market. TFL will have to provide competitive prices for its handsets as well as highly competitive call rates to succeed in this target market.

3.2.4

Exploiting the Market

With limitations in the two markets to continually grow and meet the expected levels of returns for its shareholders, the answer to the management of TFL is the Dual Mode Handset. In order to secure a place in this market, TFL will have to compete aggressively and to try and out-sell these well positioned competitors in terms of handset sales in the long run. The different price and calling plans will be designed to offer better value to customers. The main advantages for Page | 16

TFL will be the unique product itself which is a first for the Fiji market and with TFL being the only company in Fiji to offer wireless services off its CDMA 2000 network infrastructure providing the Dual Mode Handset leverage for differentiation.

3.3

Financial Objectives

The financial objectives for the Dual Mode Handsets are set as follows:  To increase the revenue at a growth rate of 10% for each future year  To control the overhead expenses through disciplined growth  To control the variable cost associated with marketing and advertising  To control fixed costs such as the implementation of CDMA Base Stations through channel partners overseas and look at options of forward buying of such equipment

3.4

Target Markets

TFL will target the Corporate and the Residential market segments to intensively market the Dual Mode Handsets by leveraging off the TFL brand name as well as the product differentiation concept to create a buzz in the market before the actual launch. Major focus in the Residential segment (with approximately 80,000 customers) will be on the tertiary student market for its prepaid plans and the postpaid plans will be targeted mainly for TFL’s Corporate segment (with approximately 7,450 customers including Government) to ensure a steady stream in monthly rental revenue. Marketing will be done using the traditional print advertisements, use of billboards and TV commercials to get a greater reach. The use of the ebusiness concept will be another added advantage for the business to enable TFL’s net savvy customers to make their Dual Mode handset purchases online.

3.5

Product Positioning

Positioning is the designing of the company’s offering and image to occupy a distinctive pla ce in the mind of the target market. The goal is to locate the brand in the mind of the customers to maximize the potential benefit to the firm.1 Each and every staff member at TFL understands the concept of launching a new product under the TFL banner, in this instance the “Dual Mode Handset” and creating it’s positioning such that customers are able to relate it back to the TFL brand. This includes reliability and quality of the handset as well as the distinct feature of the phone that makes it unique in the market. There are two different, well known and branded handsets (Alcatel & Samsung) for the two market segments identified above and these handsets will be priced to suit the two segments; however, sales of the two handsets will not be restricted to within the segments. Customers will have the final say in the choice of their handsets and will be rest assured that they are getting value for their money.
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Marketing Management – Prescribed Text

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The table below highlights the possible value propositions from TFL that suggests a reason why a customer should consider the TFL Dual Mode Handset ahead of other mobile phones. Service Provider
TFL

Target Customer

Price Range

Benefits

Value Proposition

Corporate & Residential $99.00 customers $499.00

Other Mobile Providers

Reliable & world Offers unique renowned dual network brands capability, class, & stylish models Everyday individuals & $19 to Common mobile Usual brands & some corporate customers $2499 phones usual offerings

3.6

Strategies

General
 Creating superior brand image- Establishing that the Dual Mode Handsets is another product under the TFL brand name and that too with full mobility, provides the handsets with. Increase customer awareness – Being new in this market of mobility, intensive advertising will be necessary via specially the TFL website, use of print and place advertising such as in newspapers, billboards, and TV commercials, promoting the product through events and experiences such as the TFL sponsored Tadra Kahani shows and the annual family event, the Showcase. Increased public relations exercises will also create a positive vibe for the product. Product Placement advertising in locally produced TV shows such as Bollywood Hungama and Noda Gauna will gain a lot of needed mileage for the handsets. And lastly, creating a buzz (another form of word of mouth marketing) before the actual product launch will increase excitement within the market. This can be done by placing outrageous blank billboard adverts in public places to keep customers and media guessing to increase the excitement rate). Build customer confidence – Confidence can be built through customer assurance that the handsets are reliable. To do this, TFL has partnered with well renowned brand names such as Alcatel and Samsung to allay any fears about product quality.

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3.7

Marketing Mix

Being part of Integrated Marketing, TFL’s objective is to formulate marketing activities and assemble fully integrated marketing programs to create, communicate and deliver value for its customers. Since marketing activities come in all forms, it can be classified as the marketing mix tools of four broad kinds, which are called the four P’s of marketing namely: product, price, place and promotion. To ensure that the action plan which results from these four marketing tools is tracked, the responsibility lies between the executive management, the marketing and product development teams as well as the entire TFL team. The plan is to be reviewed every quarter (3 month intervals) and any major hindrance to achievement is to be discussed with all the stakeholders. The following marketing tools need to be strictly followed to ensure that this detailed marketing plan is executed: Product: TFL has a continuous process of research and product development which allows the company to study its market and launch its products that are in line with technology advancements around the world. By doing this, it provides the company with a platform for greater freedom to tailor its services to meet the needs of its specific market segments. The Dual Mode Handsets is one such product which has two slots and can work on both the CDMA and GSM networks. It allows the use of a UIM Card & SIM Card in one phone to allow customers to make and receive calls on their Easytel and Mobile numbers:  UIM Card - Easytel number  SIM Card - Mobile number Some of the features & benefits of the Dual Mode Handset are as follows:  Phone Book Contacts (500)  Touch screen (Samsung Model)  Distinctive ring tones to differentiate between CDMA and GSM calls  FM Radio  Bluetooth  Video Recorder & Player  Scheduler, Calculator, Alarm, World Time  External Memory Card Slot  Camera & MP3 Player  Games  Hands-free  SMS The UIM Card will be provided with the handsets with new Easytel numbers together with bonus talk times allowing for on-network calls within a month. The other SIM slot has a provision for a GSM number and customers will be free to choose their GSM provider be it, Vodafone, Inkk or Digicel. Page | 19

The Dual Mode Handsets will be a retail product and customers will have outright ownership of the handsets. The handsets will have a standard one year warranty and all after sales queries will be directed to a TFL authorised service centre – Foneology. By partnering with two renowned brands; Alcatel and Samsung, TFL will be able to position these handsets as high quality, reliable and fashionable items.

Price: Due to the competitive nature of the mobile industry in Fiji, the prices for the Dual Mode Handsets will be set by competition based pricing method – that is setting prices with reference to those of TFL’s competitors. The introductory prices for the handsets will be as follows:  Alcatel: $199.00 VIP  Samsung: $499.00 VIP Although these handsets are priced for two different market segments, sales will not be limited to within the segments and the final choice of handset will be with the customer. For prepaid customers, the UIM card will be pre-programmed with a new prepaid Easytel number and a bonus talk time of $40 will be credited to the account for on-network calls to be used within the first month. The calling plans for prepaid customers are as per the following table: TFL Prepay Calls to any TFL number Calls to any mobile number (Vodafone, Inkk & Digicel) Calls to any International number (using 052) Text Messaging (to any network) Rates (VIP) $0.20 per call $0.50 per minute $0.30 per minute $0.15 per txt

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The recharge voucher and card denominations will be as per the table below : Recharge Vouchers & Cards $ 5.00 Voucher Only $ 15.00 Voucher Only $ 20.00 Card & Voucher $ 40.00 Card & Voucher $ 60.00 Card & Voucher * Recharge validity - 3 Months **20 text messages free upon recharge of any denomination For postpaid customers, the UIM card will be pre-programmed with a new postpaid Easytel number and a bonus talk time of $40 will be credited to the respective customer accounts for on-network calls to be used within the first month. The numbering plan for postpaid customers will also be unique so that it can be differentiated from the prepaid numbering range. Customers opting for a postpaid plan will be requested to forward a refundable deposit of $100 together with valid identification documentation for record purposes. Postpaid customers will receive their monthly call and rental bills at the end of each month. Corporate customers who purchase in bulk will also receive a 25% discount on the selling price of the handsets. The calling plans for postpaid customers are as outlined in the following table: TFL Postpaid Plan Rental per month Calls to any local TFL number Calls to any national TFL number Calls to any mobile number (Vodafone, Inkk & Digicel) Calls to any International number (using 052) Text Messaging (to any network) Rates (VIP) $25.00 per month $0.12 per call $0.20 per call $0.16 per minute $0.23 per minute Free

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Adding Value:  Customers with existing Easytel numbers who had earlier purchased Easytel Handi’s and have a UIM card, can use their same number should they choose to purchase this Dual Mode Handset.  Those customers who do not have a UIM card in their Easytel Handi or in their Fixed Wireless Terminals (earlier version of the Easytel phones), can have their existing number programmed on a new UIM card from any TFL Customer Care Centre at a cost of $5.00 should they decide to purchase a new Dual Mode Handset.

Place: Companies today must build and manage a continuously evolving and increasingly complex channel system and value network. Marketing channels are a set of interdependent organisations involved in the process of making a product or service available for use or consumption. TFL will adopt a selective channel choice to target its residential market segment for its prepaid customers by selling the handsets at TFL Retail outlets country wide providing a greater reach for the product. This will utilize the process of selective distribution which allows selling through a wide distribution network whilst reinforcing TFL’s image as a brand associated with integrity and quality. The selected distribution channels will use pre-numbered Customer Registration Forms to capture customer and product details and numbers sold. For its corporate market segment, TFL will use a ‘go-to-market’ or hybrid channel selection by using its Sales team to sell its postpaid plans and handsets to the Top 200 businesses, the Government and the Medium businesses. Outbound telemarketers from the TFL Contact Centre will be used to sell to the Small Businesses segment. The handsets will also be sold by a selected team at the five TFL Shops as well as the twenty two Customer Care Centres around the country to target those customers that will walk in to pay their telephone bills. The recharge vouchers and cards will be available via E-Pay and Pay E-Com as well as from Post Fiji outlets, major supermarkets, service stations, and convenience and corner stores around the country. It will also be available from all ANZ ATMS to provide customers with ease of access for recharging purposes. Page | 22

The handsets will be launched during show case on May 2011. Also the handsets will be launched for the public at large from all 10 TFL Customer Care Centres, the 5 TFL shops around the country. Communication Strategies To sell an offering you must effectively promote and advertise it. There are two basic promotion strategies; PUSH and PULL.  The PUSH STRATEGY maximizes the use of all available channels of distribution to “push” the offering into the market place. This usually requires generous discounts to achieve the objective of giving the channels incentive to promote the offering, thus maximizing your need for advertising. The PULL STRATEGY requires direct interface with the end users of the offering. Use of channels of distribution is minimized during the first stages of promotion and a major commitment to advertising is required. The objective is to “pull” the prospects into the various channel outlets creating a demand the channel cannot ignore. 2

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Promotion: The marketing communications mix which consists of eight major modes of communication; advertising, sales promotion, events & experiences, public relations & publicity, direct marketing, interactive marketing, word of mouth marketing and personal selling will be used to intensively market the Dual Mode Handsets before and after its launch. TFL will need to ensure that every brand contact delivers an impression that can strengthen a customer’s view of the company and its product. Advertising:  Use of print media such as newspaper and magazine advertising  Product brochures which will include information and features of handsets  Use of billboards in strategic locations around the country as well as at the TFL National Stadium during major sporting events  Use of TV commercials during peak hours, for example during the 6pm news  Product placement advertising in locally produced television programs such as Noda Gauna and Bollywood Hungama  Distribution of flyers at USP, FIT, FSM and the University of Fiji

2

http://www.businessplans.org/market.html

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Sales Promotion:  Bonus talk time upon purchase of either handset  Free SMS text messaging upon purchase of a recharge card or voucher of any denomination  First 100 customers to sign up for the postpaid plans will get the handsets (of their choice) free with a minimum contract period of 1 year  First 100 customers to purchase the handsets with prepaid plans will get double the value on their first recharge  Corporate companies buying the handsets in bulk will get a 25% discount off the selling price Events & Experiences:  Promotion of the handsets during events sponsored by TFL such as: o the annual family event, Showcase o the annual Tadra Kahani shows for primary and secondary school children o TFL Young Mussos Acclaim  Promotion of the handsets during USP and FIT ‘open days’ as well as during enrollment and orientation week to target tertiary students  Setting up product booths during the inter-tertiary sporting events Public Relations & Publicity:  Promoting the handsets using TFL’s brand ambassador, Akesa Drotini (Pacific Games Gold Medalist) to build public relations  Invite a well known personality like Sitiveni Sivivatu (Fiji born All Blacks rugby player) to advertise and talk about the handset  Inviting the various media journalists for a business lunch and creating positive awareness of the handsets  Include a product brief with FAQ’s in the TFL newsletter  Also promoting the handsets during annual events such as: o Fiji Institute of Accountants conference o Fiji Law Society conference Direct Marketing:  Use of TFL telemarketers to reach the Small Businesses segment to promote and sell the handsets.  Inserting a product brochure in the monthly telephone bills to TFL’s customers Interactive Marketing:  Use of the TFL website (www.tfl.com.) to actively promote the handsets and make online purchasing available to its net savvy customers  Use of online competitions to entice customers to try out the handsets

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Word of Mouth Marketing:  Use this method of marketing to create a buzz about the product before the actual launch through blank billboard advertisements in the two cities and as a preview for movies at the two major cinemas to create excitement amongst the potential customers  Getting the sales team to talk to their contacts about the forthcoming product and its likely features and benefits Personal Selling:  Using the Sales team to make presentations to the corporate customer segment about the handsets and communicate its value to these customers  Setting up road-shows in rural areas for the product to reach the grassroots people  Setting up of trade shows to sell directly to customers Action Program Action Item Commence design of brochures, billboards & other marketing collaterals Secure locations for billboards and necessary documentation/permits Obtain approval from General Manager-Sales & Marketing for marketing collaterals Complete all brochure printing and get it ready for distribution to the TFL centre’s Staff awareness at all TFL offices and nominated staff at both retail companies Set up of all logistics required to kick start operations Launching event Commence operations Page | 25 Responsibility Marketing team Implementation Comments due date 07/03/2011

Marketing/Legal teams & Town councils Marketing team/General Manager-S&M

18/03/2011

21/03/2011

Marketing/Retail teams

04/04/2011

Marketing/Human Resources teams

05/04/2011 to 13/04/2011

Supply Chain/Product Development team Show case Marketing/Retail teams

25/04/2011

27/05/2011 27/05/2011

at TFL shops and Customer Care centre’s Feedback from customers Use of feedback information

Sales team Data Analysis/Product Development/Marketing teams

06/06/2011 to 20/06/2011 30/06/2011

Pricing Strategy In order for TFL to penetrate the market rapidly a lower pricing will have to counteract the pricing set by the existing mobile industry. However the price cannot be set too low as to appear inferior in class or quality. TFL will use the competition based pricing method – setting prices in reference to those of its competitors. The calling plans will be divided into two categories – Prepaid and Postpaid. This will cater for the different customer segments of TFL. This pricing strategy will be compliant to the pricing regulations set by the Commerce Commission. Differentiation of Products Unique products – Dual Mode Handsets which caters for a CDMA (Easytel) number as well as a GSM number – Point of difference (attributes or benefits that customers strongly associate with a brand, positively evaluate and believe they could not find to the same extent with a competitive brand or product). These handsets also differ in terms of  Price  Advertising Campaign  Size of phones  Types and features  Brands – Alcatel and Samsung  Packaging (phone in box) Other factors that can affect TFL in entering the mobile market are as follow: 5 Forces:  Bargaining power of suppliers – Brands like Alcatel and Samsung will continuously monitor the inventory purchased by TFL at regular intervals

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 Bargaining power of buyers – the target markets (Corporate & Residential) are 2 diverse groups of consumers and will have different demands  Threat of new entrants – this is a distinct possibility since the market has been deregulated  Threat of substitutes – similar products from the other mobile providers  Rivalry among competitors such as Vodafone, Inkk and Digicel

The product is very unique for the mobile industry being that TFL will be the first company in Fiji to provide a dual mode handset that has the same features of a mobile phone as well the added advantage of a CDMA phone. One of the most common differences between the different mobile service providers will now be the calling plans, which is the price per unit, per second or per minute for calls. This will also prompt the service providers to divulge into more promotional gimmicks such as top ups and freebies in order to entice customers to their brand. The prices of the different handsets will also need to stay competitive in order to generate increasing sales. Therefore, TFL has partnered with well known and trusted brands such as Alcatel and Samsung to deliver value to its customers. Another difference will be the advertising campaigns that TFL will undertake. TFL Marketing team has budgeted for its promotional campaigns and will capitalise on any event or sport that will bring their target market together and will of course lead to the return on their investment. The size, shape and colour of the Dual Mode Handset on offer will also differ. The mobile market is one that is not very loyal to a certain offering. Once there is an opportunity for a Page | 27

better product, the market shifts towards that especially when 80% of the customer base is prepaid for the other 3 mobile companies. The type and features of the handset will also affect the purchasing power of the market. Some consumers are loyal to Nokia products, some to Sony, Alcatel, Samsung and so forth and will only purchase according to their likings. These features can contribute to the “bottom line” of any company. Some of the Dual Mode Handsets features include: o o o o o o FM Radio & Bluetooth Video Recorder & Player Scheduler, Calculator, Alarm, World Time External Memory Card Slot Camera & MP3 Player Touch Screen

Environmental Factors Environmental factors will positively or negatively impact the industry and the market growth potential of the service. Factors to consider include:  Government actions- Government actions (current or under consideration) can support or detract from our strategy. Allowing of new entrants into the market and controlling of pricing and call charges in future. This is done by the Commerce Commission who oversee the mobile market industry in Fiji Demographics Environment- this includes factors such as education, age, income and geographical location. Technological arena- due to the accelerating pace of technology change, opportunities for innovation, varying R&D budgets and the increased government regulation brought about by technological change. Natural Environment- need to be aware of the public’s increased concern about the health of the environment (radiation emission from base stations). Embrace sustainability and green marketing program that provides better environmental solutions

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3.8

Market Research

Using customer research, the TFL Data Analysis team will be able to identify the specific features and benefits of our target market segments value. Feedback from these market surveys will assist TFL’s marketing and product development teams with our asses sment of the target market and will enable TFL to improve on its product (Dual Mode Handsets) and the after sales service that will be rendered in to the market. TFL will then also be able to measure and analyze the customers’ attitude towards the competin g product and services from the other three players in the market. Brand awareness research will help TFL determine the Page | 28

effectiveness and efficiency of our advertisement reach, messages and media. The customer satisfaction studies can be used to gauge the market reaction towards this new product.

3.8.1 Potential Marketing Problems
              The mobile communications industry is a very competitive environment with four players (including TFL) in a very small market Government regulatory policies – protects national interests High infrastructure setup costs for new base stations in rural areas & remote islands Land acquisition for base station setup also brings forth issues with landowning units Political instability in the country adds further strain to the marketing of this handset The global economic crisis has led to many companies tightening their budgets on calling expenditure Illegal call traffic on the internet – Voice over IP (VOIP) service provides such as Skype The mobile industry has reached the maturity stage in Fiji with a deep saturation of the market by the respective mobile companies Increasing bargaining power of the suppliers & the buyers – downward pressure on pricing which pushes margins down on the handsets Threat of new entrants – legal & illegal operators Threat of substitutes and inferior products from small Chinese operators such as Dickson International Unethical behaviour due to intense rivalry between competitors – putting out comparative price & calling plan print advertisements in newspapers Limited real time marketing reach for outer islands and the innermost rural areas of the two major islands Social & environmental issues concerning local protocol

3.8.2 Potential Marketing Opportunities
     Development of TFL’s established CDMA infrastructure to enhance its services & products and promote growth for the company and its shareholders TFL’s well established financial stability will allow the company to market its D ual Mode Handsets at a lower margin than its competitors and gain a stronghold in the market The TFL brand itself will enhance the image of these handsets to have credible bearing in the minds of its targeted market segments Allow greater collaboration between the three mobile network operators to benefit customers and the business Two different network services can be used simultaneously in one handset

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      

Dual mode standby allows putting one caller on hold to answer the 2nd call – call waiting feature Availability of many features & benefits such as video camera, and MP3 players Price competition drives prices down making the handsets affordable to the diverse customer segments Product ownership – retail item and also no monthly fee for prepaid users Look at the possibility of moving the CDMA network into 3G to be compatible with other 3G phones to allow features such as video calling Web advertising – ability to access product information on-line via the TFL website Web based selling – ability to promote online sales for the handsets which is not offered by any of the other 3 mobile companies

4.0

FINANCIALS

This section offers a financial overview of TFL’s Dual Mode Handsets related to the marketing activities. It addresses break-even analysis, sales forecast, expense forecast and indicates how these activities link to the marketing strategy.

4.1 Break Even Analysis
The break-even analysis indicates that $172,615.00 will be required in monthly sales revenue of the Dual Mode Handsets to reach the breakeven point as per table

Break even Analysis Monthly units break even Monthly sales break even Assumptions : Average per unit revenue Average per unit variable cost Estimated monthly fixed cost 188 172,615 919 387 100,000

$ $ $ $

4.2

Sales Forecast

It is estimated that sales for the Dual Mode Handsets will steadily increase from the sales of 10,000 in the first year, 15,000 in year 2 and 20,000 in year 3. This is also accounted for in the advertising budget. Although the target market forecast lists all the potential customers divided into separate groups, the sales forecast groups’ customers into two major categories; Page | 30

Corporate and Residential segments. The Corporate segment comprises of 60% of the overall business of the company while the other 40% is generated by the Residential market segment. This ratio is used in our sales forecast.

The current sales level at TFL is around $112m per annum as per table below:

SEGMENT Top Corporate Government Medium Businesses Small Businesses Residential Postpaid Prepay

NO. CUSTOMERS REVENUE/MNTH 200 4,929,333 86 883,961 365 554,568 6,800 1,003,236 33,442 46,630 87,523 750,000 900,300 9,021,398

ANNUAL 59,152,001 10,607,526 6,654,819 12,038,826 9,000,000 10,803,600 108,256,773

TOTAL

After successful implementation of the strategies, the revenue generated from sales is forecasted to increase by 10% in the first year of operation, 15% in the second year and 20% in year 3. Sales forecast for the next 3 years is as shown in the table below:
SALES FORECAST Sales of phones Years 2012 2013 2014 Total Revenue from calls Corporate (post paid) Residential (prepaid) Qty 10,000 15,000 20,000 Unit price 199 199 199 Unit Price 499 499 499 Corporate $ 2,994,000.00 $ 4,491,000.00 $ 5,988,000.00 $13,473,000.00 2013 $ 5,940,000.00 $ 2,160,000.00 Residential 796,000.00 1,194,000.00 1,592,000.00 3,582,000.00 2014 7,920,000.00 2,880,000.00

$ $ $ $

$ $

2012 3,960,000.00 1,440,000.00

$ $

Total Total sales Corporate clients Residential Total sales Direct cost of sales Corporate Page |clients 31 Residential Total cost of sales

$

5,400,000.00 2012 6,954,000 2,236,000 9,190,000 2012 2,781,600 894,400 3,676,000

$ 8,100,000.00 2013 10,431,000 3,354,000 13,785,000 2013 4,172,400 1,341,600 5,514,000

$

10,800,000.00 2014 13,908,000 4,472,000 18,380,000 2014 5,563,200 1,788,800 7,352,000

60% 40%

$ $ $

$ $ $

$ $ $

$ $ $

$ $ $

$ $ $

4.3

Expense Forecast

The expense forecast will be used as a tool to keep the company on target and provide indicators when corrections/modifications are needed for the proper implementation of the marketing plan as per table shown below:
Marketing Expense Budget Websites Advertisements(Billboards,TV,Events (Tadra Kahani,Showcase) Printed materials (Newspapers/flyers) Total marketing expenses Percentage of sales Contribution margin Contribution margin /sales $ $ $ $ $ 2012 80,000 $ 70,000 $ 40,000 $ 190,000 $ 2% 5,324,000 $ 58% 2013 100,000 $ 100,000 $ 100,000 $ 300,000 $ 2% 7,971,000 $ 58% 2014 80,000 70,000 30,000 180,000 1% 10,848,000 59%

5.0 5.1

CONTROLS Implementation

The market plan serves as a guideline for the business; therefore, TFL will implement the following controls to ensure that deviations from the plan are minimized: closely monitor handset quality, calling service & network coverage issues. This will enable TFL to proactively act quickly in correcting any problems that may occur. Other controls that will be implemented and monitored for signs of deviation from the plan include:      Monthly/Annual plan –analysis of sales, market share and financial ratios, revenue and expenses, monthly handset sales, the monthly recharge card/voucher sales Profitability control – This is to examine where the company is making and losing money in terms of product, territory, customer and segment Efficiency control – Analysis of sales force, advertising, sales promotion and distribution of the product Strategic control – Marketing audit and marketing excellence review Customer service satisfaction

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5.2

Marketing Organization

The structure of TFL’s marketing team who will be responsible for the rollout of these handsets is outlined below:

Group Manager Marketing & Corporate Communications

Public Relations & Events Coordinator

Marketing Officer

Marketing Officer

Marketing Officer

5.3

Contingency Planning

5.3.1 Difficulties & Risks  An entry into the mobile market by an already establish competitor such as Vodafone, InKK and Digicel  Problems generating visibility a function of being an ICT based business  Worst case risk determining that the product cannot support itself on an ongoing basis such ROI

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6.0 RECOMENDATIONS
For expansion, growth and to better contribute towards the overall profitability of TFL as well as maximize the returns for its shareholders, the Dual Mode Handsets will be launched into the Fiji market targeting TFL’s Corporate and Residential segments. The launch of this product is aimed at strengthening the TFL brand image and to provide its customers with mobility. All the strategies highlighted are to be carefully studied and reviewed subject to market changes. The full support of the senior executives of TFL is vital for the marketing and product development teams so that the implementation of the plan is successful. While external forces (including the three mobile companies) continue to give negative signals about this market as such the saturated nature of the market for mobiles in a small country like Fiji, working smartly and with lot of strategic focus will be the way to go to capture a portion of this market who believes in true mobility. Aggressive marketing of these handsets as outlined in the marketing strategy will create much needed awareness and buzz about the product as well as lead customers to make a better choice. The strategic placement of TFL shops and its Customer Care Centres will also enable the company to retail the handsets to its customers effectively. Also aggressive Road shows reaching out the consumers. TFL’s established financial stability will allow the company to market the handsets at a lower margin than its competitors and gain much needed market share which will lead to increased revenue growth for the company and its shareholders. Success with these strategic steps will determine the future of these handsets in the Fiji market.

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7.0 BIBLIOGRAPHY
1. 2. 3. 4. 5. 6. 7. 8. Philip Kotler, Kevin Lane Keller, Suzan Burton, 2009 1st Adaptation Edition, Marketing Management, published by Pearson Education Australia Pty Ltd. 2010 ATH Annual Report, TFL Annual Report & Vodafone Annual Report http://www.businessplans.org/Market.html http://www.morebusiness.com/templates_worksheets/bpln http://www.knowthis.com/tutorials/principles-of-marketing http://en.wikipedia.org/wiki/Strategic http://www.sort-it.org.uk/results.asp http://www.kellogg.northwestern.edu/exceed/program/MKTG09

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8.0
          

GLOSSARY
CDMA Easytel GSM ICT Postpaid Customers pays for their telephone monthly bill Prepaid Customers who do not have a monthly bill invoice Sim TFL Telecom Fiji Limited Trunk UIM VOIP Voice over Internet Protocol

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