Table of Contents

CONTENTS PAGE Chapter 1 - Project Overview 1.1 Introduction 1.2 Problem Statement and Issues 1.3Objectives and Aim

1 1 1

Chapter 2 - Project Profile 2.1 Product Name 2.2 Product Classification 2.3 Product Characteristics 2.4 Product Range 2.5 Distribution 2.6 Product Life Cycle 2.7 The Brand 2.8 Brand Image and Implication 2.9 Strength and Weakness 2.10 Advantages and Disadvantages 2.11 Unique Selling Proposition 2.12 Promotional and Advertising History 2.13 Positioning Statement

2 2 2 5 8 8 8 9 9

10 10 10 11

Chapter 3 - The Company 3.1 Company Overview 3.2 Business Description 3.3 Company History 3.4 Key People 3.5 Location 3.6 Brand, Major Products and Services 3.7 Corporate Vision 3.8 Company Mission 3.9 Company's Current Promotional Strategy 3.10 Product Sales' History 3.11 Current Marketing Objective 3.12 Media Expenditure

12 12 12 13 13 16 16 16 16 17 17 18

Chapter 4 - Consumers and Stakeholders 4.1 Current Consumers' Characteristics 4.2 Stakeholders' Characteristics

19 20

Chapter 5 - Industry and Marketplace 5.1 The Industry 5.2 The Marketplace

21 22

Chapter 6 - Competitive Situation 6.1 Direct Competitors 6.2 Indirect Competitors

24 31

Chapter 7 - SWOT Analysis 7.1 Strength 7.2 Weakness 7.3 Opportunity 7.4 Threats

36 36 36 36

Chapter 8 - Strategic Target Audience 8.1 Proposed Primary Target Audience 8.2 Proposed Secondary Target Audience

37 38

Chapter 9 - Research Development 9.1 Market Research 9.2 Market Observation 9.3 Online Survey 9.4 Interview

39 39 40 49

Chapter 10 - Precedent Studies 10.1 Advertising Strategy 10.2 Precedent Studies

50 55

Chapter 11 - References 61 Chapter 12 - Appendices 62

1.1 Introduction

U Mobile is a Malaysia's telecommunication service provider and was founded in 1998 as MiTV Networks Sdn. Bhd. In October 2006, the operations headquarters was established at Berjaya Times Square. In September 2007, U Mobile Sdn Bhd and U Mobile (the brand and logo) was unveiled to the Malaysian public. In year 2008, U Mobile launched its postpaid mobile service, the U38 Plan and prepaid mobile service, the 018 Prepaid. The prepaid service had acquired total of 100,000 subscribers.

It is the 4th telecommunication service provider which provides 3G services in Malaysia. It offers the fastest mobile broadband service in Malaysia. The mobile broadband is one of the main selling point of U Mobile.

1.2 Problem Statement and Issues

The three main telco players is controlling the market. They have much more customers compared to U Mobile due to their numbers of advertising and promoting strategies. U Mobile is lacking these important elements although it offers deals and offers which is as good as them.

1.3 Objectives and Aims

1.3.1 Objectives

To create a strong brand image and brand identity of U Mobile.

To give a specific direction to U Mobile in promotional strategies.

To create advertisements and promotional events that will give a great impact to audience.

1.3.2 Aims

To let public aware of the brand.

To attract more users of U Mobile.

2.1 Product Name

U Mobile

2.2 Product Classification

A mobile telecommunication service (prepaid, postpaid) and mobile broadband service.

2.3 Product Characteristics

U Mobile provide 2 kinds of services:

a) Mobile Telecommunication Service

Prepaid Plan i) Prepaid Starter Pack

- Retail Price : RM8

- Preloaded Airtime : RM5

- Packaging :

Postpaid Plans i) U28 - Monthly Fee : RM28

ii) U58 - Monthly Fee : RM58

iii) U88 - Monthly Fee : RM88

b) Mobile Broadband Service

Prepaid Plans i) 7.2 Mbps Mobile Broadband (MB68)

- Access Fees : RM135 / 30days

- Packaging : USB Modem

ii) 21 Mbps Prepaid MiFi Bundle (MB68)

- Access Fees : RM379 / 30 days

- Packaging : MiFi Modem

Postpaid Plans i) 7.2 Mbps Mobile Broadband

Monthly Fees : RM40, RM 68, RM 128

Packaging :

ii) 42 Mbps Mobile Broadband

Monthly Fees : RM68, RM128

Packaging :

2.4 Product Range

a) Mobile Telecommunication Service

Prepaid Plan Starter Pack Preloaded Airtime

RM8 RM5

Top-up (RM) 10 30 50 100 Free Calls & SMS (# of days)

10 30 50 100

3x Longer Credit Validity (# of days)

30 90 150 300

U Mobile to U Mobile U Mobile to Other Operators SMS 3 sen 8 sen Voice Call 9 sen / 30 sec block Video Call (per minute)

30 sen 60 sen

MMS ( each) 25 sen Voice Mail (per call)

18 sen

Video Mail (per minute)

30 sen

Mobile Internet (per MB block)

5 sen

Postpaid Plans U28 U58 U88 Monthly Fee RM28 RM58 RM88 What's in my Bundle?

U Mobile to U Mobile

U Mobile to Other Operators

U Mobile to U Mobile

U Mobile to Other Operators

U Mobile to U Mobile

U Mobile to Other Operators

Free Data 1GB 2GB 3GB Free Voice (minutes)

- - 100 200 100 200

Free SMS 100 200 - - 100 200 Subsequent Pay-As-You-Use Charges after Bundle is Consumed

Voice Call (/min)

18sen 20sen 18sen 20sen 18sen 20sen

Voice Mail (/call)

18sen

Video Call (/min)

18sen 30sen 18sen 30sen 18sen 30sen

SMS 5sen 12sen 5sen 12sen 5sen 12sen MMS 20sen 30sen 20sen 30sen 20sen 30sen Data No extra charges after exceeding data limit

b) Mobile Broadband Service

Prepaid Plans i) 7.2 Mbps Mobile Broadband

MB68 Total Amount Due (@ Point of Registration)

RM135

Data Allowance 5 GB Access 30 Days Modem Included

ii) 21 Mbps Prepaid MiFi Bundle

MB68 Price (One-time charge) RM379 Quota 5 GB Validity 30 days

Postpaid Plans

i) 7.2 Mbps Mobile Broadband

MB40 MB68 MB128 Data Allowance

2 GB 5 GB 20 GB

Monthly Fees RM40 RM68 RM128 Activition Fee (One Time)

RM100

Modem Included Promotion Rebate

N/A RM20 x 5 Months

Total Amount Due (@ Point of Registration)

RM100

ii) 42 Mbps Mobile Broadband

Flexible Plans Non Rental Rental M-Broadband Plans

MB68 MB128 MB68 MB128

Data Allowance

5 GB 20 GB 5 GB 20 GB

Contract - 12 Months Monthly Fees RM

68 RM128 RM68 RM128

Activation Fee (One Time)

RM100

Advance Payment

- RM68 RM128

Rental Fee/Month

- RM20

Modem RM250 - Promotion Rebate

RM20 x 5 Months

Total Amount Due (A Point of Registration)

RM350 RM188 RM248

2.5 Distribution

The prepaid starter pack, postpaid plans and mobile broadband plans are distributed directly at U Mobile service center. Besides that, 7-Eleven stores also selling prepaid starter pack and provide top-up service for U Mobile.

Customer can also order their purchase of prepaid starter pack directly from U Mobile website. Delivery is provided.

2.6 Product Life Cycle

2.7 The Brand

U Mobile Sdn Bhd was founded in 1998 as MiTV Networks Sdn Bhd. It is a subsidiary of U Television Sdn Bhd. U Mobile is known for providing cheaper rates on voice calls and video calls and it provides the fastest mobile broadband service in Malaysia. U Mobile started its mobile broadband service in 2008 by launching the Surf with U plan. Surf with U is the only data plan for mobile users provided using its own HSDPA (High Speed Downlink Packet Access). Besides that, U Mobile provides its 018 prepaid service followed by three postpaid plan (U38, U68 and U98).

2.8 Brand Image and Implication

U Mobile still not a completely known telco service provider by citizens in Malaysia. It is not as well known as its competitors such as DiGi, Maxis and Celcom. The current market share in U Mobile is around 1-2% in Malaysia among the competitors. U Mobile is aiming for higher market share in telecommunication service among the competitors. Therefore, it is still an growing brand in the market.

2.9 Strength and Weakness

2.9.1 Strength

- U Mobile provides domestic roaming and their domestic roaming partner is Celcom.

- U Mobile broadband has the fastest mobile broadband connection up to 42 Mbps.

- U Mobile prepaid plan provides free credits for talktime and SMS within the same network.

- U Mobile prepaid has longer credit validity compared to other mobile prepaid service provider.

- U Mobile provides the cheapest rate on mobile broadband services.

- Prepaid plans can be purchased online and delivery service will be provided.

2.9.2 Weakness

- U Mobile has poor customer service

- 3G network is coverage not as wide as the others telecommunication service provider.

- U Mobile only provides 1 type of prepaid plan.

- Low coverage for HSDPA mobile broadband service.

- Modem provided only supports Windows and Mac operating system.

2.10 Advantages and Disadvantages

2.10.1 Advantages

- Calls can be made at almost anywhere. Customer do not have to worry about low coverage.

- Fastest internet ensure good internet browsing experience and fast download speed.

- Customers can call their friends and family members without worry about credits.

- Customers do not worry about their expiration before finish up their credits.

- Customers do not have to spend a lot of money to subscribe a high speed broadband.

- Customers can easily get a prepaid starter pack from U Mobile.

2.10.2 Disadvantage

- Customer wait for a long time to be able to contact U Mobile customer service center.

- Internet speed is limited if customer use the broadband service out of 3G coverage area.

- No choices of plans given to customers for mobile prepaid service.

- HSDPA service only can be received in certain areas.

2.11 Unique Selling Proposition (USP)

The only Malaysian telecommunication service provider that provides domestic roaming.

2.12 Promotional History and Advertising Schedule

a) 2008 - 2011 TV Commercials

b) 2010 - 2011 Radio Commercials

c) 2011 Broadcast News

d) 2008 - 2011 Newspaper and print media advertising

2.13 Positioning Statement

U Mobile provides mobile telecommunication services with domestic roaming and targeted for teenagers and working adults.

3.1 Company Overview

U Mobile Sdn Bhd is founded in 1998 as MiTV Sdn Bhd. It is a subsidiary of U Television Sdn Bhd.It can be consider as Malaysian's 4th mainstream mobile telecommunication service provider after DiGi, Maxis and Celcom. The headquarter of the company is located at Berjaya Times Square, Kuala Lumpur and Berjaya Holdings has a share on U Mobile. U Mobile Sdn Bhd is a growing company.

3.2 Business Description

U Mobile Sdn Bhd is a Malaysian telecommunication company which provides broadband services and mobile services to the consumers. U Mobile also provides postpaid plans for enterprise.

U Mobile has one of the most advance technology when it comes to mobile broadband service. It provides MiFi services that can reach up to 42 Mbps data speed. Its broadband services comes in 6 different packages for customer's choice. U Mobile also provides a prepaid mobile service plan and 3 postpaid mobile service plans.

U Mobile believe that their service will enrich their customers by keeping in touch with their love ones, giving full entertainment and also information about their technologies. U Mobile aiming to have 5% market share among the competitors.

3.3 Company History

On 1998, MiTV Sdn Bhd is founded by Tan Sri Vincent Tan. On April 2006, the company began its operations at Bangunan Singer and it moves to KL Plaza on June 2006.

On October 2006, U Mobile headquarter is established in Berjaya Times Square Kuala Lumpur. U Television Sdn Bhd has signed Malaysian first nationwide domestic roaming memorandum with country widest mobile network operator, Celcom (M) Bhd in April 2007. On September 2007, the brand "U Mobile" is unveiled to Malaysian public.On December 2007, U Mobile announces strategic partnership with KT Freetel and NTT DoCoMo and 33% stake of U Mobile Sdn Bhd is taken by them.

3.4 Key People

Board of Directors

Tan Sri Dato' Seri Vincent Tan Chee Yioun (Chairman)

Tan Sri Dato' Tan Chee Sing

Dato' Surin Upatkoon

Kenneth Chang

Lim Ming Seong

Lee Theng Kiat

Sio Tat Hiang

Lim Ah Doo

Management team

Chief Executive Officer : Jaffa Sany Ariffin

Chief Technology Officer : Too Tian Jen

Chief Information Officer : Shekila Ramalingam

Chief Financial Officer : Lau Hock Chye

Chief Corporate Planning Officer : William Chang

Head, Procurement & Logistics : Madam Ong Swee Kheng

Head, Legal & Corporate Governance : Tan Kiat Hwee

Head, Regulatory : Eric Liew Sze Yarn

3.5 Location and Subsidiaries

U Mobile Sdn Bhd (Headquarters)

G17, Ground Floor East Wing Berjaya Times Square No 1 , Jalan Imbi 55100, Kuala Lumpur

Tel : 03-21179888 Fax : 03-21416511

AEON AU2 Store G11, AEON AU2 Shopping Centre, No6, Jalan Taman Setia Wangsa AU2, Bandar Baru Ampang Mukim Ulu Kelang 54200 Kuala Lumpur.

PIKOM ICT Mall Lot F3B, 1st Floor, PIKOM ICT Mall @ Capsquare, 7 Persiaran Capsquare, 50100, Kuala Lumpur.

One Utama Store LG313C, 1Utama Shopping Centre (New wing), 1, Persiaran Bandar Utama, Bandar Utama, 471000 Petaling Jaya, Selangor.

Sunway Pyramid Store Lot F1.26, 1st Floor Sunway Pyramid No 3, Jalan PJS 11/15 Bandar Sunway 46150 Petaling Jaya Selangor.

Bukit Tinggi, Klang Store B-G-10, Ground Floor, BBT One, Lebuh Batu Nilam 2, Bandar Bukit Tinggi, 41200 Klang, Selangor.

Tropicana Store Lot L2-45, Tropicana City Mall, No.3 jalan SS20/, 47400, Selangor.

Seremban Store

Ground Floor, No. 135-1,Jln Tun Dr. Ismail, 72000, Seremban, Negeri Sembilan.

Ipoh Parade Store F22,1st Floor, Ipoh Parade, 105 Jln Sultan Abdul Jalil, Green Town,30450, Ipoh, Perak.

Queensbay Mall LG 12B Lower Ground Floor North Court(LG19), Queensbay Mall,, 100,Persiaran Bayan Indah, Bayan lepas, 11900 , Pulau Pinang.

Seberang Jaya No.50, Ground Floor, Jln. Todak 2. 13700 Seberang Jaya, Pulau Pinang.

Taman Molek, Johor Bahru Store Ground Floor, No 73 Jalan Molek 1/29 Taman Molek, 81100 Johor Bahru, Johor.

New Outlet No 3, Ground Floor, Jalan Merdeka, Taman Melaka Raya, Melaka.

3.6 Brands, Major Products and Services

U Mobile is a service provider company that operate network to make people stay connected to each other. It offers mobile service and mobile broadband service. The products offered are:

a) Mobile service - Prepaid Plan - Postpaid Plan

b) Mobile broadband service - 2G and 3G broadband

3.7 Corporate Vision

To achieve by giving out relevant mobile communication services, non-stop entertainment and accessible information with their advance technology.

3.8 Company Mission

Stand out and make a difference in Malaysia's telecommunication industry by offering fast, flexible, affordable and focused products and services offering to consumers and enterprise customers.

3.9 Company's Current Promotional Strategy

2008 - Introduce Mobile Number Portability (MNP) and let customers enjoy free calls and 1 sen per SMS to any U Mobile operator.

2009 - 25% airtime bonus is given for any top up to celebrate U Mobile 1st anniversary of 018 prepaid.

2010 - Prepaid subscribers can enjoy voice call as low as 2 sen per minute.

- U Mobile broadband can be subscribed as low as RM20 per month.

- U Mobile revamped its prepaid plan.

- HSDPA network service has been announced and will be in commercial service by next year

2011 - Refreshed U Mobile Center at Berjaya Times Square

- Free sim cards give away.

3.10 Product Sales' History

3.11 Current Marketing Objective

3.11.1 Long Term Objective

- To have 1 million subscriber increase every year

- To become a mainstream telecommunication service provider

3.11.2 Short Term Objective

- To create awareness among customers of existing of the company products

- Increase and improve advertising promotion by engaging new media

- Improve their promotion to increase market share among competitors

0

20

40

60

80

100

120

2001 2002 2003 2004 2005 2006 2007 2008 2009

Revenue of Telco Service (RM'mil)

3.12 Media Expenditure

2011 - 5 TV commercials, 2 radio commercials and 6 broadcast news was created and broadcasted

2010 - 4 TV commercials and 2 radio commercials was created and broadcasted

2009 - 9 TV commercials was created and broadcasted

2008 - 4 TV commercials was created and broadcasted

Besides that, U Mobile has its own official website, Facebook page and Twitter. U Mobile also promote using all kinds of print ads and billboard.

4.1 Current Consumers' Characteristics

4.1.1 Demographics

a) Age : 15-40

b) Gender : Unisex

c) Education : High school and above

d) Occupation : Students and working adults

e) Income range : High school students - RM50 - RM200

University/Collage Students - RM500-RM1000

Working adults - RM1500 - RM6000

f) Race & ethnicity : All races

g) Geographical location : Urban and Sub-urban area

4.1.2 Psychographics

a) Perception : Fast and stable mobile broadband

b) Learning : Newspapers, TV Commercials, magazines, billboards, promoters and outlets

c) Motivation & Needs : Customers can keep on track on telecommunication and keep in touch with their friends and family members. Besides that, they can always be updated with latest news using the internet.

d) Attitude & Personality : Internet savvy, always on call, concern about latest issue and updates

e) Lifestyle : Socially active, modern

4.2 Stakeholders

4.2.1 Primary

a) Chairman : The head of directors lead the board of directors and organize the meetings of directors. Align the company.

b) Board of directors : Direct employees and supports chairman

c) Shareholders : Invest money to show interest in sharing profit

d) Chief Executive Officer : The head of management team, helps to manage the internal and external of the company.

e) Employees : Helps and corporate with their employer to run the company

f) Consumers : Purchase or subscribe the products of the company, providing company's income.

4.2.2 Secondary

a) Distributors and service centers : Helps on selling products and promoting the products. Provide services involving the products.

b) Media : Helps to promote and advertise the product and create awareness.

5.1 The Industry

5.1.1 Definition of the industry

Mobile telecommunication services were first introduces in Malaysia in 1985. It was started with telegraph. The technology at that time allows telecommunication services transmitting messages through cables.

Malaysian telecommunication industry continued to evolve over the past 10 years. The growth of mobile telecommunication has decrease the usage of fixed line and increase the usage of VoIP. The broadband market is growing rapidly. In mobile telecommunication market, mobile prepaid service grow faster than postpaid service and it is driving the mobile telecommunication service.

5.1.2 Shape of the Industry

According to Borneo Post Online, Malaysian mobile penetration rate had grown rapidly over past 10 years, from a low 21.8 per cent in 2000 to more than 117 percent in 2010. This shows that the industry grow 19 per cent annually. Besides that, smartphone penetration was over 20 per cent in Malaysian and it is growing by a few percent every quarter year. Data services such as mobile broadband contributed averaged of 31.1 percent in year 2010 based on the results of top three mobile telecommunication service provider in Malaysia (DiGi, Celcom and Maxis).

According to Malaysia Telecommunication Market Report Q1 2012 which done by Sandler Research, by the end of 2011, the mobile market reach around 36.4 million subscribers. There are 10.31 million 3G subscribers in year 2011. the fixed-line market had reach 4.286 million connections by June 2011.

According to Market Watch 2011 by Malaysian-German Chamber of Commerce & Industry, the fixed line voice subscription has declined from 4.6 million in 2000 to 4.3 million in 2008. The penetration rate for fixed lines has decline from 65.1 percent in 2001 to 48.3 percent in 2006 to 44.5 percent in 2009. The subscription of broadband had increase dramatically from 1.71 million in 2008 (penetration rate of 21.1 percent) to 2.62 million in 2009 (penetration rate of 31.7 percent and 4.72 million in 2010.

5.1.3 Development of Industry

In mid 1980, other countries in ASEAN region competing for foreign investment to invest on new technology. Malaysia had to liberalize the domestic telecommunications industry to remain competitive. At this time, Telekom Malaysia started mobile telecommunication in Malaysia.

The government engineered a dramatic consolidation of telecommunication services market and introduced an institutional framework for progressive policy reform. The Malaysian Communications and Multimedia Commission (MCMC) has been created.

The telecommunication industry in Malaysia has aggressively developed since 1980s. Telecommunication services such as radio, microwave, fiber optics and other source of communication have grow rapidly. Most of the new established telecommunication in private sectors placed its bets only on mobile telecommunication services, such as 3G.

More and more telecommunication services are offer by the telecommunication service provider. Internet services is growing from EDGE to GPRS, from GPRS to mobile broadband which is wireless, portable and uses 3G connection. Now, more advance technology has been introduces such as 4G and HSDPA which give faster internet connection and download speed.

5.2 The marketplace

5.2.1 Current condition of the marketplace

The Market Share of Telecommunications Companies in Malaysia, 2009

In Malaysia, DiGi, Maxis and Celcom are dominating the telecommunication mobile service market. New telecommunication companies such as U Mobile and Tune Talk is hard to survive when the 2 main telecommunication companies dominating the market. In May 2012, U Mobile hits two million subscribers and it is still growing.

Different mobile service plans provides different offer, but the aim of all the telecommunication service provider is to prove their services are and also promise to their consumers of their promotion and features.

5.2.2 Changes in Marketplace

Positive : Telecommunication industry develops very fast, follow up the development of the industry will ensure the growing of the company.

Negative : More and more new competitors is coming into the industry.

6.1 Direct Competitors

a) Maxis Communication Berhad

Maxis Communications Berhad is a Malaysian mobile network operator headquartered at Kuala Lumpur, Malaysia. It was started in the year 1993. It uses the dialing prefix identifier of "012", "017" and “0142”.

Service Offered:

Hotlink Prepaid Plan

Maxis Postpaid Plan

Maxis Internet Broadband

b) DiGi Telecommunications Sdn Bhd

DiGi Telecommunications Sdn. Bhd. is a mobile service provider in Malaysia. It is owned in majority by Telenor ASA of Norway with 49%. On 24 May 1995 DiGi became the first telco in Malaysia to launch and operate a fully digital cellular network.

Service Offered:

DiGi Prepaid

DiGi Postpaid

DiGi Broadband

c) Celcom Axiata Berhad

Celcom Axiata Berhad is the oldest mobile telecommunications company in Malaysia. Celcom is one of a member of the Axiata group of companies. It was founded in 1988 and its headquarter is situated at Menara Celcom, Kuala Lumpur.

Service Offered:

Celcom Xpax (Prepaid)

Celcom First Voice (Postpaid)

Celcom First Data (Broadband)

6.2 Indirect Competitors

a) Telekom Malaysia

Telekom Malaysia Berhad is the largest integrated solutions provider in Malaysia, and one of Asia's leading communications companies, with a market capitalization of RM13.9 billion and a workforce of 26,629 employees. Established as the Telecommunications Department of Malaya in 1946, it was privatized in 1987, and listed on Bursa Malaysia in 1990. Subsequent growth led to a demerger in 2008 of TM's mobile and fixed services, allowing the company to focus more intently on its core businesses of Internet and multimedia, data and fixed-line services.

Service offered:

Streamyx Broadband

Voice Deals (Voice Services)

UNIFI Broadband

b) Jaring Communication Sdn Bhd

JARING (Jaring Communications Sdn Bhd) is a Malaysian internet service provider based in Technology Park Malaysia (TPM). It was the first internet service provider in the country and was formerly owned by MIMOS Berhad. It was founded in 1992

The word JARING was derived from Joint Advanced Research Integrated Networking.

Its current CEO is Nik Abdul Aziz Nik Yaacob.

Service offered:

Flite Wired (Wired broadband)

Flite Fibre (Fibre Optic broadband)

7.1 Strength

- The only mobile telecommunication service that provides domestic roaming. - U Mobile broadband provides most advanced technology and fastest speed of its kind. - U Mobile prepaid plan provides free credits for talktime and SMS within the same network. - U Mobile prepaid has longer credit validity compared to other mobile prepaid service provider. - U Mobile provides the most affordable rate on mobile broadband services. - Prepaid plans can be purchased online and delivery service will be provided.

7.2 Weakness

- U Mobile has poor customer service - 3G network is coverage not as wide as the others telecommunication service provider. - U Mobile only provides 1 type of prepaid plan. - Low coverage for HSDPA mobile broadband service. - Modem provided only supports Windows and Mac operating system.

7.3 Opportunity

- Most of the Malaysian using mobile phone and they always carry them. - Consumers always looks for cheaper rate service provider before they purchase/subscribe. - Technology in telecommunication sector is evolving fast. There is always a space for new market. - Making calls, SMS and surfing internet is essential for Malaysian nowadays. - The advance in media will help to promote very fast.

7.4 Threats

- Stereotypical consumers will thinks that new telco service provider is not as good as old ones. - The market dominant of 3 Main telecommunication players (DiGi, Celcom, Maxis). - Other telco service provider offer similar rates and they have better publicity. - Most of the customer are loyal to their current service provider and not willing to change.

8.1 Proposed Primary Target Audience

8.1.1 Demographic

Age : 18-25 years old

Gender : Unisex

Education : University/collage

Occupation : Students

Allowance : RM500 - RM1000

Race and Ethnicity : All races

Geographical Location : Urban and Sub-Urban

8.1.2 Psychographic

Perception : U Mobile provides fastest and cheapest broadband service, they offer cheap call rates and SMS rates

Learning : Billboards, print medias, TV commercials, Promotional booth, Internet, friends

Motivation and Needs: First hand update on the latest entertainment news, fast movie streaming speed and have wide coverage for calls and SMS service

Attitude and Personality: Internet savvy, always on call, looking forward to get a telco service provider

Lifestyle : Modern, socially active, loves entertainment

8.2 Proposed Secondary Target Audience

8.2.1 Demographic

Age : 25 -30 years old

Gender : Unisex

Education : Tertiary

Occupation : Working adult White collar

Allowance : RM2000 - RM4000

Race and Ethnicity : All races

Geographical Location : Urban

8.2.2 Psychographic

Perception : U Mobile provides fastest and cheapest broadband service, they offer cheap call rates and SMS rates

Learning : Billboards, print medias, TV commercials, Promotional booth, Internet, friends

Motivation and Needs: Helps customer to keep on track to latest news, making sure they have good internet browsing experience, wide coverage of calls and SMS service

Attitude and Personality: Internet savvy, always on call, looking forward to change telco service provider

Lifestyle : Modern, socially active

9.1 Market Research

For the market research I went to U Mobile Store at Berjaya Times Square, Kuala Lumpur. I took public transport from Multimedia University, Cyberjaya to reach there.

I also went to Pikom PC Fair at Kuala Lumpur Convention Centre to do my market research. I took public transport and reach KLCC in around 2 hours. However, I do not have chance to take any photos because that place is too crowded with promoters and PC Fair visitors.

9.2 Market Observation

For the market observation, I went to Berjaya Times Square to observe the U Mobile Store. I went there in the weekend around 3pm in the afternoon. There is around 10-20 customers in the store. Some of them went there with their families. Most of them are teenagers and working adults.

Besides that, I went to Pikom PC Fair at Kuala Lumpur Convention Centre on the 13 July 2012 around 4.30pm. There are not much customers at the U Mobile booth. There are just a few young adults customers.

9.3 Online Survey

The online survey was conducted and runs for 9 days. The survey starts from 16 July till 25 July 2012. A total of 69 effective online surveys have been collected. This survey is conducted to gather information on awareness of consumers on U Mobile and telco industry in Malaysia.

1) What is your gender?

Male 30 43%

Female 39 57%

2) What is your age range?

Below 17 2 3%

18-21 41 59%

22-25 22 32%

26-29 1 1%

30 and above 3 4%

3) What is your income range?

Below RM500 43 62%

RM500 - RM1000 19 28%

RM1000 - RM1500 4 6%

RM1500- RM2000 1 1%

RM2000 and above 2 3%

4) Where do you live?

Selangor / Kuala Lumpur 50 72%

Other 19 28%

5) Do you own a smartphone?

Yes 43 62%

No 26 38%

From this question, I can tell that most of the people are using smartphones which provide more functions such as wifi.

6) Do you subscribe data plan for your mobile phone?

Yes 24 35%

No 45 65%

From this question I know that there are quite a large amount of people who subscribes data plan to get access to the internet using their mobile phones.

7) What is the reason you own a mobile phone?

Stay connected with friends and family 66 96%

For entertainment (music, games, etc) 40 58%

To access the internet 44 64%

Other 7 10%

8) What is your current telecommunication service provider?

DiGi 36 52%

Maxis 23 33%

Celcom 8 12%

U Mobile 2 3%

Tune Talk 0 0%

Other 0 0%

9) The advertisement you see the most is from which telco service provider?

DiGi 42 61%

Maxis 16 23%

Celcom 7 10%

U Mobile 4 6%

Tune Talk 0 0%

Other 0 0%

10) Which telco service provider's advertisement give you the biggest impression?

DiGi 49 71%

Maxis 8 12%

Celcom 6 9%

U Mobile 6 9%

Tune Talk 0 0%

Other 0 0%

Based on this question, most of the people have biggest impression on DiGi's advertisement. This is because DiGi have a very strong identity in the market.

11) Why do you choose your current telco service provider?

Call rate 29 42%

Coverage 25 36%

Service 22 32%

Influenced by friends and family 40 58%

Other 3 4%

12) Do you know about U Mobile?

Yes 64 93%

No 5 7%

This question proves that there are still people who do not know about U Mobile because U Mobile do not have a very strong advertising and promotion plans.

13) How do you know about U Mobile?

Television 43 66%

Radio 18 28%

Print media 30 46%

Promotional booth / Exhibition 33 51%

Online media 26 40%

Friends and Family 24 37%

Other 1 2%

14) Are you satisfied with your current telco service provider?

Yes 46 67%

No 23 33%

15) Why are you not satisfied with your telco service provider?

Expensive rates 12 41%

Low signal / Small coverage 18 62%

Bad service 8 28%

Other 3 10%

16) Do you want to switch your telco service provider?

Yes 17 25%

No 52 75%

17) If you are given a chance, which telco service provider you will switch to?

DiGi 7 10%

Maxis 13 19%

Celcom 6 9%

U Mobile 8 12%

Tune Talk 2 3%

Other 33 48%

There are quite a lot of people who wanted to switch to U Mobile. Therefore, I conclude that there is people who willing to switch from other telco service to U Mobile.

9.4 Interview

For the interview, I called to U Mobile Customer Service Hotline (018 388 1318) to ask about who is the person who can help me interview to. I could not get an answer because it is out of the operator's ability to help me. Therefore, I went to U Mobile Store at Berjaya Times Square to ask for assistance for my interview. However, the person in charge refuse to answer my questions and inform me that U Mobile is a private company and the information are not supposed to disclose to the public.

10.1 Advertising Stratergy

Packaging

Flyers

Print Ads

Exhibition Booth

TV Commercial

42 Mbps Mobile Broadband

Unlimited Mobile Internet

10.2 Precedent Studies

Celcom Broadband Posters

Celcom Roaming Ads (situated at airport)

Celcom Limited Edition USB Modem skin for Chinese New Year

DiGi Print Ads

Maxis Broadband Print Ads

Maxis Promotional Booth

11 References

The Sun Daily (18 May 2012) "U Mobile hits 2m registered users". Retrieved on July 29, 2012 from http://www.thesundaily.my/news/382315

Malaysian-German Chamber of Commerce and Industry (2012) "Market Watch 2012" IT and Telecommunications in MalaysiaI. Retrieved on July 30, 2012 from http://www.malaysia.ahk.de/fileadmin/ahk_malaysia/Market_reports/IT_and_Telecommunications_in_Malaysia.pdf

Justin Yap (2011) 'Next step' for the telco industry in Malaysia. Retrieved on July 29, 2012 from http://www.theborneopost.com/2011/09/04/next-step-for-the-telco-industry-in-malaysia/

Md. Nor Hayati Tahir (2011) "The Influence of Consumers Decision Making On Telecommunication Technology Adoption in Malaysia" 2011 International Conference on Economics and Business Information. Retrieved on July 29, 2012 from http://www.ipedr.com/vol9/14-I10018.pdf

G. Sivalingam (2009) "Network Governance in Malaysia's Telecommunications Industry". Retrieved on July 29, 2012 from http://www.hks.harvard.edu/netgov/files/NIPS/Paper_G_Sivalingam.pdf

Telco Survey Dear participance, I am a student from Multimedia University (MMU), Bachelor of Creative Multimedia, and Advertising Design. Currently, I am conducting a survey for my final year project. I am researching about the telco service and the telco service user in Malaysia. Kindly complete the following questionnaire form; all the input and feedback on this study are highly appreciated and much needed for my research. The information gathered will be kept private and confidential. Thank you for your co-operation and contribution by spending your precious time in filling up this questionnaire. Required

1. What is your gender? *

Male

Female

2. What is your age range? *

Below 17

18-21

22-25

26-29

30 and above

3. What is your monthly income range? *

Below RM500

RM500 - RM1000

RM1000 - RM1500

RM1500- RM2000

RM2000 and above

4. Where do your live? *

Selangor / Kuala Lumpur

Other:

5. Do you own a smartphone? *

Yes

No

6. Do you subscribe data plan for your mobile phone? *

Yes

No

7. What is the reason you own a mobile phone? *(Can select more than one answer)

Stay connected with friends and family

For entertainment (music, games, etc)

To access the internet

Other:

8. What is your current telecommunication service provider? *

DiGi

Maxis

Celcom

U Mobile

Tune Talk

Other:

9. The advertisement you see the most is from which telco service provider? *

DiGi

Maxis

Celcom

U Mobile

Tune Talk

Other:

10. Which telco service provider's advertisement give you the biggest impression? *

DiGi

Maxis

Celcom

U Mobile

Tune Talk

Other:

11. Why do you choose your current telco service provider? *(Can select more than one answer)

Call rate

Coverage

Service

Influenced by friends and family

Other:

12. Do you know about U Mobile? *if No, skip Question 13

Yes

No

13. How do you know about U Mobile

Television

Radio

Print media

Promotional booth / Exhibition

Online media

Friends and Family

Other:

14. Are you satisfied with your current telco service provider? *if Yes, skip question 15

Yes

No

15. Why are you not satisfied with your telco service provider?

Expensive rates

Low signal / Small coverage

Bad service

Other:

16. Do you want to switch your telco service provider? *if No, skip Question 17

Yes

No

17. If your are given a chance, which telco service provider you will switch to?

DiGi

Maxis

Celcom

U Mobile

Tune Talk

Other: