STRATEGIC MARKETING PLAN FORSLT MEGALINE FOR THE YEAR 2015

Presented By - A.Mohamed AzharReg.No - 0000016630

Sri Lanka Institute of Marketing

• Sri Lanka Telecom is over 150 years trusted services,.• SLT provides facilities and services in the areas of Voice, Data & Video.• The blue chip of SLT’s group companies’ annual turnover about Rs.66 billion • SLT PLC has achieved the profit over Rs.36 billion in 2013• The SLT group has customer base of over 6 million including Multinational

Corporation, Large and Small Corporate, Public sector, Retail and Domestic customers

• The two main shareholders of Sri Lanka Telecom PLC– Sri Lankan government - 49.5% – Global Telecommunication Holdings N.V. of Netherlands - 44.98%

Sri Lanka Telecom PLC

Vision and Mission

• Vision - All Sri Lankans seamlessly connected with world class information, communication and entertainment services.

• Mission - You're trusted and proven partner for innovative and exciting

communication experience delivered with passion, quality and commitment.

Multiple Packages of Megaline

Rs.12,000

Rs.7,000Rs.11,000

Rs.10,000Mega home or Mega office

Mega home or Mega office

Mega home or Mega office

Crystal clear voice Offer of voice, broadband and Peo TV services through a single line Island wide network coverage Low initial charge. Discounted IDD calls and free Value Added Service (VAS) bundles Call charges are reduced after 3rd minute.

Product life cycle

• Sales are highest, but the rate of growth is slowing down• Product differentiation & Product improvements• High profits for those with high market share

Competition of Megaline

Primary competitors Secondary competitors Possible new competitors

Lanka Bell CDMADialog CDMASuntel CDMACitylink CDMA

DialogEtisalatMobitel

AirtelHutch

Tritel Services (Pvt) Ltd

Competitors analysisMegaline Lanka Bell Dialog CDMA

Product packages Postpaid

PrepaidBroadbandPeo Tv

Postpaid

PrepaidBroadband

Postpaid

PrepaidBroadband

Rental Rs.310.00 Rs.320.00 Rs.300.00

Customer base by 2013 1,071,246 786,454 212,000

Technology ADSL2+, VDSL2, 4G LTE, FTTH, Wi-Fi

WiMAX, 4G LTE, Wi-Fi

WiMAX, 4G LTE, Wi-Fi

Distribution Network Teleshops, Abans, Singer, Softlogic Abans, Singer Abans, Singer, Softlogic

Promotional tools Free umbrella or travelling beg, price reduced at December at, Facebook

TV , website, Print media, direct marketing

Sponsorship, Facebook, website, Print media.

Market share of wireline connection

Company Product No of subscribers (2013)

Market Share of Fixed connection (2013)

Sri Lanka Telecom Megaline, Citylink CDMA 1,571,309 57%

Lanka Bell Limited Lanka Bell CDMA 786,454 30%

Dialog Axiata PLC Dialog CDMA, Suntel CDMA 349,837 13%

Total 2,707,600 100%

Sri Lanka Telecom PLC

57%

Lanka Bell Lim-ited30%

Dialog Axiata PLC13%

Market share

Citylink 18.14%

SLT Fixedline

57%

Megaline 38.86%

SWOT analysis

Strength• High Brand reputation among the public• Island wide network• High-performing cable equipment (4G, Crystal

clear voice) • Strong financial stability & Fixed investment• Financial capability carryout new campaigns and

invest in R & D.

Opportunities• Government develops technological

infrastructure.• Connection termination is less by using the multi

package of SLT • Telecommunication industry is in a growth

increasing sales potential.

Threats• Increasing mobile connections reduce

the fixed line connection. • Technological enhancement of

competitor – Dialog 4G

Weakness• Not enough sales teams to initiate personal

selling.• Communication tools ineffective• Higher financial resources needs to introduce

or improve the technology

SWOT

PESTEEL• Political

Influenced by TRCSL, Increase in development, Increase in Taxes

• Economic Carrier opportunities, Per capita GDP, Country development increasing the VAT reduce the customer affordability.

• Social Increase Telephone density, Increase in living standards and urbane lifestyle,

• TechnologicalAvailability of management information systems, other electronic repair services connection, Increase the broadband

• Ecological Eco friendly activities

• EthicalAdvertisements do no affect the customers and competitors

• LegalConsumer law, Employment law, Entry of new competitors has controlled

SLT expects to increase its revenue by the multiple packages of Megaline. SLT has achieved Rs 18 Billion revenue for Megaline for the financial year of 2013. Therefore, it expects a higher sales turnover for the year 2015, comparatively then the previous financial year. The sales objective has set as

Sales objective

“To achieve a Megaline revenue of Rs 22 Billion for the financial year of 2015 in all island”

Marketing objectives

Converting new single connection and existing single connection customers to Double connection customer base by 15% and Triple Play connection customer base by 10%.

To increase the market share of Megaline by 15% within next three years.

15% Conversions from the competitor to Megaline connection in 2015

Segmenting

Geographic Rural, UrbanDemographic Residential, BusinessPsychographic Life StyleBehavioral Usage, Loyalty

Home customers• Domestic users

Business customers• Multi-national & enterprise customers• Public sector institutions• Other operators/ wholesale customers• SME and retail customers

Targeting

Positioning

High service quality

Low service quality

Low PriceHigh Price

Megaline

Lanka Bell CDMA

Citylink CDMA

Dialog CDMA

Suntel CDMA

Marketing Mix strategy development (7Ps)

1. Product Strategy Core Product - Voice Actual Product - Broadband, PEO TV Augmented Product - Free repairing services

2. Pricing StrategySLT used promotional pricing strategy to attracts more customers during April and December.

Penetrating pricing strategy is appropriate to Increase the multiple connection & obtaining potential consumers.

3. Distribution strategy Teleshops – 36 Regional offices - 34 Maintenance centers – 22 Contact centers - 7

Bill Payments

Marketing Mix strategy development 7Ps

4. Promotional Strategy Sales promotion PR activities Free Gift

Radio, TV Personal selling Facebook, Twitter & website

Marketing Mix strategy development 7Ps

5. Physical evidence strategy• Staff Uniform• Website design• Labels, pennants, and other printed information• All SLT outlets and vehicles place SLT Logo

6. Process Strategy• Consumers can send the online application and attached the relevant supporting documents.• The regional office staffs do a feasibility checking and inform to the customer.• Customers can make the online payment.

7. People Strategy• Well educated and experienced staff• Interpersonal and communication skills of staff• Training and development programs to enhance the skills• Rewards and Compensations• Good relationship building and team work

Online process

Budget and financial analysis

Description Amount (Rs) Percentage Revenue 22,000,000,000 100%Expenditure Operating cost 12,250,000,000 55.68%

Distribution expense 4,150,500,000 18.87%

Financial cost 2,116,900,000 9.62%Total expenditure 18,517,400,000 84.17%Profit before tax 3,482,600,000

Income tax expense 956,520,0004.35%

Net profit 2,526,080,000 11.48%

Budget AssumptionThe budgeting method will be done using Objective and Task method.

Marketing Strategy Implementation - Action PlanActivities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Situational analysis

Image analysis

Internal communication

Corporate magazine

Public relations

Sponsor – Rugby

Sales promotion

TV Advertisement

Online campaign

Outdoor

Monitoring & Evaluation

Monitoring • Conduct sales meetings – weekly

& monthly

• Monthly sales reports

• Quarterly review

• Annually review

• Motivating the SLT customer service officers

• Customer research & analysis

Evaluation• Time period of each activity.

• Staff confidence levels to achieve the action plan.

• Positive perception and motivation of the staff.

• Mail and e-mail surveys

• Communications audits

• Telephone surveys

• PR audits

• CRM

• Database searches