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1. Executive summary

A. Summary of situation analysis

Sri Lanka Telecom has built over 150 years of goodwill and trust with its valued customers

protecting its brand image and company values. Long vision has guided to practical approach

to reach its mission of the company. Market leader and largest innovation company of Sri

Lanka telecommunication industry has more market capitalization in Telecommunication

industry. The company provides a huge range of domestic and international services which

include fixed and wireline voice, internet and data services that provide to a wide audience

comparing of the both corporate and domestic customers.

This is nation’s number one integrated communication service provider, leading broad group

and support infrastructure service provider for the country. The two ownership of SLT of Sri

Lankan government which holds 49.50% and global telecommunication holdings N.V of

Netherland, which owned 44.98% remaining general public.

The blue chip of SLT’s group companies’ annual turnover is exceed 66 billion and SLT

achieved the more than profit 36 billion in 2013. The SLT group has customer base of over 6

million including Multinomial Corporation, large and small corporate, public sector, retail

and domestic customers

SLT has downed assets from LKR 84,820 million to LKR 83,090 million and through a

process of acquisition and growth. SLT operating 34 regional telecom offices operates 36

teleshops, 22 maintenance center and 7 contact centers all over the country with more than

6000 permanent employees. It has less comparative advantages over to their competitors in

Sri Lanka market

Country’s largest telecommunication service provider has taken necessary steps to developed

telecommunication facility in war affected area like North, and Eastern areas and People's

purchasing power has been growing in using Megaline connection after the freedom in the

that areas also, the SLT opportunities to cover all the areas in Sri Lanka.

.

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At present the Telecommunication connection services market is mostly controlled by

multinational companies. Sri Lanka Telecom works with quality technology to grater to every

Megaline connection. The emerging new requirements of consumers, now the SLT organized

to provide all the telecommunication facility in three ways with Mega line connection,

entertainment and data services with a connection to their customers according to their

different facility.

Megaline is targeting to home and individual consumers, they need an actualization and

acceptance of their palace. Megaline is the market leader in Wireline connection in

telecommunication industry. There are no large competitive to Megaline but, there is strong

brand (Lanka Ball, Dialog CDMA and Suntel) in Sri Lankan market and it will create

competitive to Megaline.

It looks to be communication facility provide to all over the areas in Sri Lankan market. The

services competitive to increased. SLT’s consumers trusted by providing quality, standard,

stable and services. The last year Mealine connection was increased by 1.6 hundred thousand

and total connection acieved1.5 million in 2013

SLT received the distinction of being ranked No.1 on Sri Lanka’s telecommunication

industry. The national telecommunications service provider won silver. This is the first time

SLT has been recognized at the HRM Awards in 2012. SLT was recently awarded ISO

9001:2008 certification for its quality management system.

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B. Summary of marketing objective

Retaining existing customer - by promoting best facility can retain the existing

consumers.

Increase sales from existing customer- SLT have primary focus and that is increase of it is

sales. The increase sales objective will make the future profit margin.

Developing new customer - The development of geographical areas to Megaline

connection will increase new customers.

Increase usage of produce usage - by developing the innovation technology will increase

the usage of Megaline users.

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C. Summary of marketing strategies

SLT simply develop the marketing strategies by having some special resources. That strategy

focuses on SLT Megaline’s future market success. Since, the high demand for Megaline

connection as individual and corporate consumers. Megaline connection high cost compare

than other land phone connection to company as well as to the customers, but demand for this

connection has not come down. SLT Megaline corporate marketing goal is to become the no

one telecommunication service provider in the local telecommunication market while

providing ethical service to their customers.

The result of marketing mix implemented the SLT’s marketing strategies.

Product strategy – SLT product is target the different customer to different product

packages. The product packages continue developed by containing voice, data and

entertainment. The packages also clear and quality to cover all the areas consumers in Sri

Lanka

Pricing strategy – SLT Megaline is high valued support to their revenue of SLT. Product

line pricing increase the valuable packages as well as increase revenue to SLT also,

Megaline has use market product line pricing and penetration pricing strategy to capture

the market.

Promotional strategy - The promotional campaign of Megaline mainly focuses on quality

of services. The percentage of marketing budget is spent on media advertising while

lesser is used for sales promotion. The promotion campaign is in clear position in target

segment.

Distribution strategy - SLT operating 34 regional telecom offices operates 36 teleshops,

22 maintenance center and 7 contact centers all over the country with more than 6000

permanent employees. All are support to develop the Megaline connection.

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D. Summary of Financial Projection

The financial strength of SLT has by their sales. The operations of Sri Lanka Telecom

include in the main the Megaline Citylink, Peo TV, and Broadband. The Megaline

connection support is necessary to SLT.

In 2013, although aggressive competition, SLT retained its position as the certain type of

market leader in the telecommunications industry.

SLT achieved more than profit 36 billion. The SLT group has customer base of over 6

million including Multinational Corporation, large and small corporate, public sector, retail

and domestic customers. The analysis finance information assumed the secondary data of

2013 annual report

The cost of the promotion activities are proper to organize by the budget allocation. The

budget allocation is suitable to organization to Magaline connection. The Gant chart is

confirmation of one year allocation plan to Megaline connection.

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2. 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.

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3. The company

Brief history

Sri Lanka Telecom (SLT) has built over 150 years of goodwill and trust with its valued

customers protecting its brand image and company values. It has started their operations in

1858 where the first Telegraphic Circuit established between Galle and Colombo and also the

first international telegraph communication established between Ceylon and India. In 1991

Sri Lanka Telecom became a Corporation.

In 1911 SLT has established as Central telegraph office where the installation of Automatic

Telephone Exchange established at Kahawatta in Ratnapura District in 1931. 1935 was a

golden era where International Telephone Service inaugurated.

The journey in 1991 the first Sri Lanka telecom corporation formed and they have introduced

packet switching service (1993), internet and email service (1996) and in the same year SL

corporation converted into a public company.

From the days when it was a part of Sri Lanka’s Department of Post and Telecommunications

through to the present day, the company boasts a long and rich history. Now a fully integrated

telecommunications operator.

A public Limited Liability Company incorporated in Sri Lanka in September 1996 under the

Conversion of Public Corporations or Government Owned Business Undertakings into Public

Limited Companies Act No.23 of 1987 and quoted on the Colombo Stock Exchange in

January 2003.

The year of 1997 Sri Lanka Telecom privatized with the collaboration of Nippon Telegraph

& Telephone Corporation of Japan and listed in the Colombo Stock Exchange's Milanka

Price Index.

SLT is one of Sri Lanka's most valuable blue chip companies with an annual turnover in Rs

60.14 billion. Sri Lanka Telecom provides the services broadband and backbone

infrastructures services to the counter.

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SLT received the distinction of being ranked No.1 on Sri Lanka’s telecommunication

industry. The national telecommunications service provider won silver. This is the first time

SLT has been recognized at the HRM Awards in 2012. SLT was recently awarded ISO

9001:2008 certification for its quality management system.

Current size, the areas where the company is operating, growth and profitability

Current size - SLT has downed assets from LKR 84,820 million to LKR 83,090 million

(2012 to 2013)

Branches - SLT operating 34 regional telecom offices operates 36 teleshops, 22

maintenance centers and 7 contact center all over the country and more than 6000

permanent employees.

Products and services - The telecommunication industry's products are telephone services,

internet services, Digital Tv and IT services.

Growth and profitability - In 2013, End of the year revenue increase from LKR 34.72

billion to LKR 36.78 billion

Ownership - SLT is a most valuable blue chip company to Sri Lanka’s economy. This is

nation’s number one integrated communication service provider, leading broad group and

support infrastructure service provider for the country. The two ownership of SLT of Sri

Lankan government which holds 49.50% and the other party is global telecommunication

holdings N.V of Netherland, which owned 44.98% where the remaining balance own

with the general public.

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3.2 Internal environment

a. Staff relations

SLT which is in telecommunication and the core competence involved is providing excellent

services to customer of the company, needs to have a set of dynamic, pleasant, set of

employees from the lowest level to heights level. They in turn need to delight their consumers

in order to attract customers as well retain them in the future.

SLT has organized award ceremonies to encourage all their staff, individuals to become

champions of change. SLT continued to motivate thorough star award, sales excellent award,

services excellent award and etc.

SLT is a kind of challenging organization where it encourages its staff to learn through their

experience as well they already provided infrastructure facilities on libraries, 3 playground

facilities mainly in capital city. The SLT conduct annual income and digital life magazines

and also paper articles in Sinhala, English and Tamil languages available for internal and

external parties of SLT.

Sri Lanka Telecom has been a good employer. It has providing its staff many attractive

activates. This includes loan facilities al low rate, annual sport meets, trips, cultural programs,

Quiz competitions are some of the activities and events organized by SLT in order to build

good relationship between company, and employees as well as with their valuable customers.

b. Resources and limitations

The following shows some resources of SLT and its characteristics.

Human resources - The main resource of SLT is the human resource. Since SLT is the

service sector, providing services to its clients, its needs to have vast number of staff.

SLT would include assessment of the existing staff’s function, location, existing rate loss

experience as well as overall standard of training and specific training standards in key

roles.

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Financial resources -The finance resource has working capital, creditors, cash balance,

bank overdraft as well as bank loan for investing new product expand the distribution

channel.

Physical resources - These includes location of existing production facilities, capacity and

maintenance requirements and current production process of quality, method &

organization, IT system as well distribution channels.

c. Corporate structure and culture

Corporate culture

Culture is sum of total learned values, beliefs, customs that are served to direct consumer

behavior in a particular country market. Although structure is the arrangement of parts, as

was indicated previously, culture will influence how these parts interact.

SLT culture is a very friendly one which always has been in the organization for both its

internal and external customers. The authorization and better understanding on their culture

and how to transform it, is a critical skill for leaders in SLT, trying to achieve strategic

outcomes. Strategic leaders have the best perspective, because of their position in SLT, to see

the dynamics of the culture, what should remain, and what needs transformation as well as

the rules and regulation are minimized and a very flexible approach to handle issues.

Corporate structure

SLT holds a horizontal coordination structure flexible design in order to achieve their

ultimate goals and objectives. SLT’s structure affects individual motivation and

performance. So, if people are placed in positions for which they are unsuited or allocated

work for which they are not competent there will be a detrimental effect on motivation and

performance.

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Formal structure of Sri Lanka Telecom

Chairman & the board of directors

Audit

committee

Remuneration

committee

Technology

sub committee

Senior tender

board

CEO

Leadership

Team

Synergy

Group

Operational

Review

Team

Revenue

Assurance

& Fraud M

Management Committees and their composition

Product

Marketing

Forum

Informatio

Security

Mgmt.

Forum

Strategic

Governance

Board

Enterprise

Solutions

Governanc

e Board

Transform

& C G

Board

Product

Governance

Board

IT

governance

Board

Network

governance

Board

Facilities &

Services

Governance B

Company

Secretary

Nomination

committee

Enterprise

Risk

Managemen

t

Steering

Committe

e of Q M

S

Quality

Mgmt.

System

Cross

Functional

Governanc

e

Secretariat

Informatio

Security

Mgmt.

Forum

Board Committees and their composition

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4. The product/ service

4.1 General product story

General product story

The electric telephone was invented in the 1870s, based on earlier work with harmonic

(multi-signal) telegraphs. The first commercial telephone services were set up in 1878 and

1879 on both sides of the Atlantic in the cities of New Haven and London. Alexander

Graham Bell held the master patent for the telephone that was needed for such services in

both countries. The technology grew quickly from this point, with inter-city lines being built

and telephone exchanges in every major city of the United States by the mid-1880s. Despite

this, transatlantic voice communication remained impossible for customers until January 7,

1927 when a connection was established using radio. However no cable connection existed

until TAT-1 was inaugurated on September 25, 1956 providing 36 telephone circuits.

So, the way to Sri Lanka Telecom PLC (SLT) provides a variety of domestic and corporate

services which includes fixed and wireless telephony, internet access and IT services to

domestic, public sector & business sector customer.

This Meagline product introduces 3 type service verities. For example, voice only (Single

Play) customers, voice and broadband (Double Play) customers and voice, broadband and

PEOTV (Triple Play) customers have three different call rates. Their Triple Play services are

ready to provide unmatched future experiences to entertain their customers.

a. Development, introduction and history

Telephone connection is the core service of SLT Megaline. It is (wireline) expand in 2010.

The Megaline telephone connection has more experience in the industry. It is expanding

different variety to consumers. The Megaline strategy helped sustain their market share in the

fixed line sector (Megaline and Citylink). The Megaline strategy helped sustain their market

share in the fixed line sector (Megaline and Citylink) 57% in 2013.

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SLT Telephone connection comprehensive connection include many salary features and

benefits for it users.

b. Product category and characteristics

SLT Megaline Company is offering its wireline connections through a variety of packages

that enables people the freedom to choose which services they want, especially broadband,

internet and voice value added services, as well as making wire Magaline connectivity more

affordable to the public.

Sri Lanka Telecom (SLT) has reduced its prices of wire line connection with the introduction

of SLT Megaline, a product with variety. SLT Megaline includes of three packages to home

and office. Also the multi services of Megaline enjoying their consumer.

The SLT Megaline services offer three packages

Services

offered

Calling plan Free services Connection charges

Triple play Mega home or mega

office

Triple play vas bundle

10,000

Double play Mega home or mega

office

Double play vas

bundle

Voice + broadband

without CPR* Rs 7,000 or

Voice + Peo TV RS

11,000

Single play Mega home or mega

office

Single paly vas bundle 12,000

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c. Stage of product life Cycle

Development Introduction Growth Maturity Decline

SLT Megaline

Pre - launch Post - launch

After pre- launching Megaline connection to Sri Lanka telecommunication market in late 150

years, however due to the increase a purchasing of a new connection.

The introducing the SLT Megaline they have come across to the maturity level if PLC with a

specific time period. So, far the product life cycle in concerned, I would say SLT Megaline

connection is still in its maturiry levels.

The major reason is still Megaline keep the SLT is monopoly business of the availability of

resources and competitors. In market competitor are not high market share and still not

entering because still they are fail to invest huge investment on a new product like SLT

Megaline connection. Also SLT Megaline promises to provide high standard service to

existing and potential customer. So this reasons to say SLT Megaline is still in its maturity

stage.

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d. Any other important characteristic of Megaline

Crystal clear voice

Offer of voice, broadband and Peo TV services through a single line

Single number for generation

Safe to use - No radiation

Island wide network coverage

Line that is always connected - No utility powder requirement for telephone use

Business customers are benefited when making longer call due to reducing call charges

after 3rd minute.

Extended off-peak time band for home users

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5. The overall market (Customers)

5.1Description of the characteristics of target customers

a. Need and benefit sought

SLT Megaline’s target market is domestic customers and business organization. The

government is looking the effective and efficient service. The future segment will concern

and looking for reasonable effective and efficient service at these 3 way service in one

connection.

With SLT Megaline lot of beneficial service can made in unbelievable manner. Because, of

the increasing buyer of the people growing day by day so they need some establish service

and further for many communication requirements. At the same time government and private

sector organizations demand for internet service where they deal with day to day business

which requires quality, speedy service. In further entertainment will have a good place in

public places and domestically people who spend busiest life style.

At the same time government and private sector organizations demand for internet service

where they deal with day to day business which requires quality, speedy service. In further

entertainment will have a good place in public places and domestically people who spend

busiest life style.

b. Product usage

SLT Megaline connection mainly used by

Home (individual consumers)

Office (corporate consumers)

Who is using – SLT Megaline connection mainly used by users and upper middle class

families and also business and government.

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Why they use – Because consumers market need and benefit. The clear connection, network

speed and connection expand facilities to Peo TV as well as broadband.

When do they use – The consumer mostly using at home to communication their friends and

family as well as organization use official work.

How it is used - SLT Megaline has three types of services but the mainly consumer use

telephone connection because, otherwise they have to go for three separate service to get

those services.

c. Attitudes of the customer

i. As to Product category

Since the SLT include Megaline connections, enjoyed by consumer all over the Sri Lankan

target market has a high regard toward the product category. This is sharp by the mind of Sri

Lankans that perceives products high local brand and high quality.

Moreover the consumer consist the entire SLT services category offer the high quality and

clear services. Typically consumers would associate mainly due to face that the majority of

the consumers perceive Megaline connection to be SLT Megaline Brand. Therefore they give

more preference to Megaline connection when compare to the hug range and

Telecommunication products.

The Attitudes of the customer towards to these products category is depend on various topics.

Such as mainly on the income, affordability, requirements, life styles, family remembers,

quality of service, availability, after sale services, changes of the family etc.

ii. As to company’s product

SLT Megaline customers have positive attitude toward services, as the company service is

good quality and clear services by the consumers as SLT is telecommunication industry

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Since, SLT Megaline connection is a brand of the Sri Lanka first licensed the

telecommunication industry which function the principal brand is. The consumer associates

the quality of services, safety and care with excellence customer services of the category.

Megaline telephone connection is a very positive. Since the services of dedicate relationship

officer and the clear facilities are fast, the customers satisfaction is a high state and the

opinion of customers towards SLT Megaline connection is very positive.

iii. Why they like our products or not

The major reason the customer of SLT Megaline connections like this product. SLT products

in that the fixed line which facilities 3 service communications, most of the demand for their

latest technology development along with the delight customer service. Mainly, This 3 in 1

facility use by banks, hotels, shops, private and government institutions etc.

iv. Any unique character of customers

Unique character of our customer can be whatever the segment who are looking for stable,

speedy cost effective connection. And also another unique character of the customer is they

build bonds with SLT because of the delight customer service. Time, Quality, service, Trust,

relationship are the powerful factors to create unique customers at SLT

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5.2 Description of the purchasing process

a. Buying decision making process

When it comes to the purchasing process of the B2C segment they will have a buying process

as follows for the total drive.

Problem recognition - This is first stage of the purchasing decision where the buyers

recognize a problem or need. This need can be generated by internal or external stimuli.

Generally consumer of the stage using Megaline services is low quality or slow level.

There are not in safe hands and they cannot enjoy their freedom to grow and

communicate with others.

Information services - An aroused customer will be motivated to search for more

information through internet and external data source, they use various banking industry

data source, their web sites and advertising then they getting the details. Also, in this

stage customers can visit the each SLT branch and collect the details, they collect from

their friend and working partner.

Information search

Evaluation of alternative

Purchase decision

Post purchase behavior

Problem recognition

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Evaluation of alternative - Once customers gather all the information they evaluate the

various option available. When evaluation the potential alternatives, customers use two

type of information. The first is the list of SLT Megaline branch from which they plan to

make their selection and second is the standards from which they plan to make their

decision. Evaluation often reflects beliefs and attitude and these are acquired by

experience and learning.

Purchase decision - In the purchase decision stages consumer forms references the

brands. The customers may also from intention to buy most preferred brand. In executing

a preferred intention the customers considered sub decision such as brand, customer

services, timing and product features.

Post purchase behavior - After the purchase the consumer might experience dissonance

than stems from noticing certain disquieting features or hearing favorable things about

SLT Megaline brands and will be alert to information that supports consumer decision.

However in the B2B market segment for Megaline connection there will be influencer,

gatekeepers, approvers, buyers and users

b. What source of information is sought?

The source of information sought for the Megaline connection of SLT can be identified as

Public - Megaline connection knowledge can be also be obtained through source such as

mass media, consumer rating organization.

Commercial - Information provided by the company in the form of advertising, website,

Facebook, fun page marketing shelf people and display about the Megaline connection

Personal - Information obtained from working partners, religion group, family, friends

and acquaintances about the Megaline connection.

Experimental - The information obtained from consumer through handling, examining

and using then Megaline connection.

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c. Who makes the purchase?

Some people purchase the Megaline connection and mainly home (individual) and officers

(co-operate) are making purchase, because they also know the services benefit connection.

The home connection purchases of personal user the variety of services. The head of

organization has to decide and approval the purchase of the Megaline

d. Is purchaser the consumer?

Yes, in most of times the purchaser can be the ultimate consumer or the end user for example

in domestic scenario but when it comes to organizational level consumer and the purchaser

can be two different parties but the purchaser can be the consumer in an indirect way.

e. Who or what may influence the purchase?

The influencers to the decision making units

Family and Friends

Office friends

Advertising and promotion

Relations

Past experience

Quality of services

Multiple connection

The main segments in domestic scenario influencer can be other family members where

in organization staff, peers, can be influencers to make the purchase.

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6. Competition and market share

6.1 Identification of competitors

a. Primary competitors

The 2 type of primary competitors

Lanka Bell

Dialog CDMA

Suntel

The three types of primary competitors are providing the same service or would be

considered as substitutes belonging to the same industry. SLT as the market leader, it would

look at those companies coming in second, third, and fourth and so on. Primary competitors

within an industry are competitors that offer a nearly identical product or service.

However, SLT does not have any direct primary competitors where they are the innovators

and monopoly service provider in fixed wire telephone line. Because other competitors are

not arriving at all segments where they are unable to afford huge cost on targeting all

population.

b. Secondary competitors

Secondary competitors are the mobile communication service providers .

Dialog

Etisalat

Mobitel

Airtel

Hutch

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Secondary competitors are offering same products, services and marketing. Secondary

competitors offer a substitute good or service, which might be of a lower quality but still

related.

c. Possible new competitors

PC house PLC - PCH is forefront of Sri Lanka's ICT industry providing a complete

solution for all the market in a computer hardware, software solution and value added

services. PCH was recently listed among Sri Lanka's 50 valuable brand of 2012 published

by brand finance Lanka and media services with honorable A+ bran rating. The strength

will that company will come to the telecommunication industry in Sri Lanka.

However, the possible new competitors may be in any time with new technology and satellite

facility with lower rates. Competitors may arrive at the moment no any such details or

information have find or heard by SLT.

6.2 Market share

a. Total current industry sale by market

Customers of the local wireline telecommunication market are catered by local

telecommunication companies. Local wireline telecommunication requirements in total

market are being supplied by the three industries. SLT, Lanka ball and Dialog are the three

suppliers. Also, Dialog has another separate Suntel wireline connection in Sri Lanka.

There is a total market size of Rs.13 billion annually, related to wireline telecommunication

connection in local market. But this amount will vary according to the growth or decline of

flexible packaging requirements of the customers.

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b. Comparative analysis of market share held by the company and competitors

The local wireline telecommunication market is consisted with 3 services. The local market is

catered by the local telecommunication in Sri Lanka. A comparative analysis of the market

share is mentioned in below table:

Company Market share in

connection

Market Share in Wireline

connection Market

Sri Lanka Telecom 1,571,309 57%

Lanka Bell Limited 634,037 23%

Suntel Ltd 41,3502 15%

Dialog Axiata PLC 137,834 5%

Total 2,756,682 100%

Market share of Wireline connection

57% 23%

15%

5%

Market share of Wireline connection

Sri Lanka Telecom

Lanka Bell Limited

Suntel Ltd

Dialog Axiata PLC

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c. Trends and future growth

Significantly from the relatively SLT Megaline market which is currently as high as

51%, while 57% of connection.

Aggressive increase in demand for Megaline due to the rise in disposable income of

people

There is a significant interest for entertainment among the people and hence more

customers tend to watch foreign channels more than the local channels.

Usage of Megaline by government and private organizations has significantly increased.

The country’s Internet sector remained underdeveloped, with the take up rate of

broadband services being especially low; there were however signs that this was starting

to change.

Fixed broadband penetration (as a percentage of population) was still only around 2% in

2013.

The government having established the National Broadband Consultative Committee

(NBCC) in 2010, there was little evidence of it having any great impact into 2013.

d. Expected total market (demand estimates) what except in future

In 2013 financial year SLT Megaline revenue increased by 12% by adding additional 100,627

subscribers in 2013. Expected market demand is 1.75 million Megaline connection

subscribers for the year of 2014. Aggressive marketing strategies will be developed on

achieving the stated market demand and further increase the market penetration of SLT

magaline.

After the end to the war, it has become more than superficial that Sri Lanka Telecom has a

catalytic role to play in the development of the country as a whole. While physical

infrastructure is being established, connectivity remains the key to holistic development. It

was in line with this that we launched our new corporate vision, mission and values which

take us further towards transformation and customer centricity.

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Together with their values which encompass customer care, trustworthiness, innovation,

responsiveness, teamwork, excellence and the drive to achieve superior results, they have

already laid the foundation for their pragmatic vision in placing the trusses to transform their

traditional network to a Next Generation Network, investing considerably in infrastructure,

technology, training and development and other related functions

6.2 Describe following details of two player in the market and any other competitor that

would pose a threat to you or that you would be fighting with in order to enter into the

a. Background of competitors

I. Company and its size/ type

Lanka Bell Limited

Lanka Bell is a world class telecommunication

operator that provides a full range of

telecommunication service to business and

residential customers in Sri Lanka.

Dialog Axiata PLC

Dialog Axiata PLC is Sri Lanka's largest

telecommunication services providers. The

second fixed line operates in Sri Lanka.

II. Reputation

Lanka Bell Limited

Lanka ball's creation is introduced land

connection to telecommunication market. It is

ISO 9001:2008 certificate company.

Dialog Axiata PLC

Dialog Axiata PLC is the largest and fastest

growing cellular service in Sri Lanka also

operates. Dialog proud sponsor of the Sri

Lanka cricket team.

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III. Sales force and their expertise

Lanka Bell Limited

Has expert sales and marketing team

Dialog Axiata PLC

Has large sales force and good

experience

Include sales special

IV. Financial strength

Lanka Bell Limited

Have a financial resource to covering their

business operation.

Dialog Axiata PLC

Have a good financial strength (total

assets 91,238,008,000.00 end of 2012

from 83,513,242,000.00 end of 2011)

Investment increased

V. Technology used

Lanka Bell Limited

WiMAX

4G LET

Dialog Axiata PLC

WiMAX

4G LET

Wi-Fi

VI. Any other important aspect

Lanka Bell Limited

Foch the Wireline connection only

Dialog Axiata PLC

Focus the Wireline connection with

Mobile connection, broadband and

Dialog TV.

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b. Current product strategy of competitors

Comparative analysis of competitor’s product strategy

i. Product mix

Lanka Bell Limited

Two type of CDMA phone

Domestic Bell residence has Postpaid

services, pre-paid service, broadband,

IDD service, other features of SMS, email,

Voice SMS, bell tunes.

Corporate Bell enterprise has Enterprise

voice, enterprise data, International

connectivity, BPO, Bell fax , Risk

management press ads disaster recovery

Dialog Axiata PLC

Three type of fixed line packages

Huawei FP 2025 has SMS, Notifying the

incoming call number in voice, Voice

recording of an incoming call, Caller ID

display, call forwarding, call waiting, call

holding, call barring and three-way

calling

ETS 2022 has SMS , CLI, Phone boom,

Polyphonic ringtones

ETS 2029 has SMS , CLI, Phone boom,

Polyphonic ringtones

ii. Branding and packaging

Lanka Bell Limited

Lower rate to IDD packages

Lower rate to night packages

Infinity plus package of 1000 minutes &

500 minutes

Dialog Axiata PLC

Lower rate to IDD packages

Lower rate to Dialong mobile call

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iii. Positioning

Lanka Bell Limited

Earlier consumer continue the services

Dialog Axiata PLC

Faster network than others

iv. Image and reputation of brand

Lanka Bell Limited

Focus only the wireline connection

Dialog Axiata PLC

Reduce the call charge to dialog mobile

phone.

v. Product strength and weakness

Lanka Bell Limited

Strength – more connection is continue the

without termination.

Weakness – Not available with Wi-Fi

services, Low percentage to getting new

connection.

Dialog Axiata PLC

Strength – coverage focus all the

consumers in Sri Lanka.

Weakness - Low percentage to getting

new connection

30

c. Current distribution strategy of competitors

Comparative analysis about the competitor’s distribution strategy

i. Type of distribution network used

Lanka Bell Limited

The distribute through the branch & teleshops

Dialog Axiata PLC

The distribute through the branch &

teleshops

ii. Evaluation of how distribution targets accomplished

Lanka Bell Limited

Get more market share

Achieved profit margin

Dialog Axiata PLC

Achieved sales target

Reach target market

iii. Relationship with channel members

Lanka Bell Limited

Teleshop

Regional branch

Dialog Axiata PLC

Teleshop

Regional branch

iv. Strength of the channel members

Lanka Bell Limited

Lager distribution in Sri Lanka

Dialog Axiata PLC

Have a good market network

31

d. Current price strategy

Comparative analysis of competitors prices

i. Pricing objectives

Lanka Bell Limited

Increasing profit margin

Attractive large consumers

Increasing market share

Dialog Axiata PLC

Increasing income

Increase sales

ii. Pricing strategy

Lanka Bell Limited

Use market skimming price

Low call rate

Dialog Axiata PLC

Cost based pricing strategy

Giving discount

iii. Buyers attitude about the company prices

Lanka Bell Limited

Consumers think, Lanka ball lowest price with

quality services

Dialog Axiata PLC

Consumers think, Dialog CDMA quality

services is lowest price communicate with

dialog mobile

iv. Channel attitude of about the company’ price

Lanka Bell Limited

Have a suitable price

Dialog Axiata PLC

Have a suitable price

32

e. Current promotional strategy

Comparative analysis of competitor promo tool and campaign

i. Promotional objectives

Lanka Bell Limited

Increase the sales

Increase the profit

Get brand loyalty

Inform new offers

Dialog Axiata PLC

Increase sales

Increase the profit

ii. Strategies and themes used

Lanka Bell Limited

Two packages get 500 or 1000 minutes

outgoing to promote local call consumers.

Viza card promotion to the models and

other country to low call rated for getting

foreign consumers.

With lowest IDD rates to India and75%

less cost IDD call for getting foreign

consumers.

Dialog Axiata PLC

75% less cost IDD call for getting

foreign consumers.

Loa call rate to Dialog mobile for getting

local consumers.

iii. Promotional tools used

Lanka Bell Limited

a. Advertising - TV & website

b. Sales promotion - law call rate

c. Public relation - Media conference

Dialog Axiata PLC

a. Advertising - Facebook & website

b. Sales promotion - law call rate

c. Public relation - Sri Lanka cricket team,

33

d. Direct marketing – Print campaign,

website & email

e. Personal selling - Directly to consumer

home

donation.

d. Direct marketing - Print campaign,

website & email

e. Personal selling - Directly to consumer

iv. Success and failures of promo campaigns

Lanka Bell Limited

The effective campaign are success

Dialog Axiata PLC

This is effective campaign but the sales are

increase slowly

34

7. External Environment factors

PESSTEEL factors

The following PESTEEL factors are some of the key changes that are taking place in the

environment.

1. Political

Political factors concerning telecommunications industry service is influenced by

Telecommunications Regulatory Commission of Sri Lanka.

Legislation and condition imposed by TCRSL needed to be followed by every

telecommunication provider in Sri Lanka.

The government takes measure to improve the economy such as SLT

Boosting the image of Sri Lanka in global market.

Continuous change of stand on applicability of labour legislation

2. Economic

Promise to focus the on rural development of telecommunication facilities and other

essential services by 2011 year fiscal budget.

The increasing the VAT reduce the customer affordability.

Telecommunication is in growth phase and this can see through increasing contribution to

GDP and Employment.

Declining interest rates on borrowings favorable position affordability

Stable exchange rate

Sri Lank GDP growth rising to 8.2 % in 2014

3. Social

The population has been getting old employees. It has increased the pension payment to

staff

Increasing the working employment is opportunity the market segment.

The growing hand phone connection will reduce the home connection.

35

Lack of the labour to work to farms.

Donated to school, hospital, and festival function.

4. Technological

World class ICT technology must be effectively benefit the two social and business

economy.

Lack of adaptation of mobile technology by reduces the Wireline connection.

Availability of management information systems and other electronic repair services

connection.

MP3 players, computer games, online gambling and high definition TVs are all new

markets created by technological advances.

Innovating the connecting quality

Initial connection cost high

5. Ecological

To be compliant with legislation and deal with environmental issues accountably

Design and develop products that have minimum environmental Impact

Optimize usage of energy and inculcate recycling, wherever possible

Cascade environmental best practices to all employees through training, education and

development

Promote environmental care and appreciation of the environment through as many forums

as possible

6. Environmental

The climate changes in temperature can impact on many industries including farming,

tourism and insurance.

The growing desire to protect the environment is having an impact on many industries

such as the travel and transportation industries and the general move towards more

36

environmentally friendly products and processes is affecting demand patterns and

creating business opportunities.

Recognize the impact that their business has on the environment and thus to work in a

manner that seeks to protect the environment and minimize or eliminate any adverse

impacts caused to the environment by their day to day operations.

7. Legal

Legal factors include discrimination law, consumer law, antitrust law, employment law,

and health and safety law. These factors can affect how a company operates, its costs, and

the demand for their products.

Faced with the risk of changes in the regulatory environment, and steps are taken to

ensure their willingness to face sudden and unexpected regulatory changes

37

8. SWOT analysis

3. G.1 Strengths

Strong infrastructure and high-performing cable equipment are best in Sri Lanka.

Aggressive marketing strategy allowing SLT Megaline has good and stable brand loyalty

and Excellent brand image

As reflected in the financial analysis the financial stability of the organization with all the

current investments.

The competent sales force and support staff enabling fast services to the client.

The strong capital background and government support.

Strong Public Relations that has been built up over the 150 years.

Strong island wide distribution network.

Greater level of customer satisfaction via high quality customer support, well established

customer base.

Skilled and dedicated Management Team

Have an excellent management process

Market leadership on Megaline connection services.

3. G.3 Weaknesses

The structures within the industry or company that are performing poorly or worse than

expected.

Corroded cable lines, slow service and lackluster sales are three weaknesses that can hurt

for SLT.

If corroded cable lines aren't replaced and slow service continues, for example, angry

customers will switch to a rival telecommunications company that offers better services.

38

3. G.3 Opportunities

The external structures are outside the company’s control that could potentially benefit

the company growth.

Technological advances, an increase in communication networks and channels and new

tax incentives.

The competition not trusts in by the SLT that the long run.

Outside events that SLT can use to enhancement its existing strengths.

3. G.4 Threats

The consumers mainly increase to the mobile subscriber identity module (SIM)

The threat of a telecommunications involves the external structures outside the industries.

Increasing competition and increased government regulations against the

telecommunications industry are just a few external threats that can limit SLT’s future

success.

Decrease economy in Sri Lanka not suitable to grow the SLT.

The new competitors offer fast service and cutting-edge technology to their customers.

Less demand for telecommunications services that few days.

39

9. Sales Objectives

SLT’s marketing plan for Megaline telephone connection is evolved in order to achieve the

expected sales objective. The following sales objectives

“The increase 35% revenue of the Megaline at island wide by December 2015”

The Megaline depends on the achievement of the above mention objectives and this is

profitability of the company. This achievement expects levels making it challenging for the

company to achieve its corporate objectives.

The entire marketing plan will be developed based on the above mentioned sales objectives

and the strategized will also on this objective.

40

10. Marketing Objectives

Clearly defined objectives may also provide direction for SLT employees in terms of what to

achieve and in what period. They also serve as motivators for employees by creating an

attainable challenge that they can to strive achieve.

When setting marketing objective it is important to make sure always that should be SMART.

This marketing objective is not only achieving from the new customer but also current

customer retention also important to the company.

Following are some of the areas to be covered to achieve marketing objectives SLT has set.

To increase overall existing customers of Megaline by 30% within the next 15-18 months.

To increase the sales of Megaline existing customers by 40% within the one years.

To increase up to 50% of use of products within the 15-18 months

To developing new customers by 40 of Megaline within the next three years.

Following are some of the areas to be covered to achieve marketing objectives SLT has set

Enhance customer experience by being more responsible to customer needs, delivering

high quality services faster with increase value aligned to market requirements.

Increase the sales use for traditional business, reduce erosion, improve quality of services

and manage cost.

Develop up to 40% of existing fixed line customers to the three way approach.(voice,

data, entertainment)

Become market leader of Entertainment service and data service provider.

41

11. Segmenting, Targeting and Positioning

a. Geographic

The geographic segment covers entire area of Sri Lanka. In this area, advance systems work

very well together with a Sri Lanka telecom. Therefore specific geographical areas are not

considered as segments. But, there are some significant geographical areas which are

significantly contributed the total Megaline revenue. Sri Lanka Telecom provides located

attractive accurate customers and can produce amazing analysis based on location. The

following the SLT Megaline geographic areas

Urbana areas and Rural areas

Regional division

Geographical perspective on the market brings in many business office areas

To strongly differentiated by population growth place.

SLT is overall fundamental facility industry in Sri Lanka. The future plan of SLT will cover

all 329 backbone connectivity across Sri Lankan for all operators. The SLT Megaline revenue

increase from wholesales has continues to increase in line with their plan to become

wholesales communicating partner in Sri Lanka. The business geographic segments

opportunities for profitable growth and supporting the connectivity requirements for SLT

Megaline.

The initiatives detailed above, sure demonstrate Sri Lank Telecom's changing your world

concept is seamlessly connecting all Sri Lanka to world class information, communication.

b. Demographic not enough

The demographic trend describes the change that may in certain demographic population over

a period of time. Demographic are often used in public policy, sociology and marketing. SLT

Megaline utilize demographic usually consider several variable and combine them

characterize demographic profile. A demographic profile, commonly referred to as a

42

demographic provides sufficient information about a typical create group to create this

hypothetical collective.

Demographic are the traits a human population, demographic segment consist of the

Family size

Income

Home ownership

Location

Employment statues

Education level

Ethnicity

c. Psychographic

In considering Megalin, our target market has built long term faith towards to the SLT.

Consumers believe the organization and its facility. Customers who earn fixed income,

Government servants and people stabilize their family life most of the time psychologically

would like to have a fixed wire line connection.

This is all about psychological traits of customers including attributes such as

Personality

Beliefs

Values

Lifestyle

Attitudes

43

d. Behavioral

The most consumers are familiar with a SLT Megaline connection. Behavioral segmentation

divides customers into groups based on the way consumrs respond to, use or know the

Megaline services.

Megaline’s behavioral segmentations can group consumer relationships of

Customer services excellence

Quality

Innovation technology

Benefits sought

Brand loyalty

Produce user rate

Readiness to buy stage

Buying center

Income status

11.2 targeting

Targeting total determination will depend on several factors of SLT Magazine connection.

Target market groups are mainly

Home (individual consumer)

Offices ( corporate customers)

The much of the customer demand is driven by price rather than quality of Services, services

fulfillment or service assurance, however at Sri Lanka Telecom, we believe and have strategy

to provide to customer with quality, choice, efficiency and importantly, overall value for

money. This continuously drives our strategy to enhance customer experience by being

responsible, trustworthy, efficient, and reliable and delivering a quality innovation and

44

market focus to Megaline service. Penetration of fixed lines connections household stands at

around 67%.

11.3 Positioning

Sri Lanka Telecom's corporate business can be categorized into the three broad segments of

government agencies and departments, large private sectors and medium to large privet sector

companies. The government sectors include very largely national scale operations such as

ministration, hospital, defense establishment and the police.

Perceptual map of Megaline

Megaline is already positioning moderate price and high quality way in Sri Lanka market.

Absolutely, that moderate price gathers large customers to Megaline brand.

High price

Dialog CDMA

Lanka Ball

Megaline

Low quality High quality

Low price

45

12. Tactical marketing mix strategy developments

12.1 Product strategy

The intangible service of Megaline’s product decision has to be made. So, according to

market Megaline connection is now in majority level and they should reposition in themarket.

A product strategy can encompass any number of products, depending on the nature of SLT’s

business. They could have one strategy for each major product or, perhaps, the same strategy

for all of them. For example, the current Megaline multi connections focus the quality of

services to consumers. The Megaline connection is available to different category (Single

connection, double connection, and triple connection) income group in market. Value is add

services with provide the connection to satisfy services to different market segment.

Megaline provides service where their product is the service they offer. Their product

strategy helps them to determine exactly what services to offer. The product strategy

identifies, in broad terms, how you plan to sell your products to your marketplace. That

documents how the people in telecommunication marketplace think about SLT Megaline and

business. It documents how SLT business positions its products and services and it contains

their strategies for selling.

In order to facilitate the responding strategy of the products will change alternative consumer

perception and create image of SLT Megaline. The product strategy is a document containing

any of the following

Business objectives

Descriptions of target markets, usually based on results of market research

Results of research about SLT potential clients and their needs

How Megaline wants their product to be viewed by their clients

Product features and benefits

Selling strategies

How their product features and pricing compare to their competitors.

Product changes that might enable better market positioning of their product.

46

12.2 Pricing strategy

SLT must decide as a giant in telecommunication industry is how much to charge for their

product or service. While there is no one single right way to determine their pricing strategy,

fortunately there are some guidelines that will help SLT.

Currently, Mgaline use a competitive and more economic pricing strategy which is in the

currently market products. It available to all income target group as well as different types of

segments.

SLT Megaline industry price has major role. Price is considered the deciding factor for

Megaline connection. However, if a SLT should better services they need to pay higher

premium. The product line pricing is more suitable to SLT Megaline connection.

Penetration Pricing - The price charged for products and services is set artificially low in

order to gain market share. Once this is achieved, the price is increased. This approach

was used by Sri Lanka Telecom. SLT needs to land grab large numbers of consumers to

make it worth their while, so they offer free telephones or satellite dishes at discounted

rates in order to get people to sign up for their services. Once there large number of

subscribers prices gradually creep up.

Product Line Pricing - Where there is a range of products or services the pricing reflects

the benefits of parts of the range. For example when it comes to Mega line basic

connection would be Rs.12, 000, a connection plan and broadband or Peo TV offer as a

package where it will around 11,000 and a connection plan, broadband and Peo TV offer

as a package where it will around 10,000.

Premium price and Product line pricing seldom reflects the cost of making the product since

it delivers a range of prices that a consumer perceives as being fair incrementally over the

range.

It might benefit SLT to sell them singly in terms of profit margin, although they price over

the whole line. Profit is made on the range rather than single items.

47

The other price strategies that can be use

Psychological Pricing

Optional Product Pricing.

Premium Pricing

Competitive price strategy.

Economy pricing strategy

12.3 Promotional strategy

The current promotional campaign of Megaline mainly focuses on quality of services. The

percentage of marketing budget is spent on media advertising while lesser is used for sales

promotion.

SLT Megaline connection of triple package is low price than double connection and single

connection. Based on company's past experience, a suitable agency of the campaign will be

selected. SLT will be brief on the concept and preferred mediums. The communication tools

that will be used to conduct the campaign are as flows.

Followed by ATL media next would be initiated below the line media. One awareness is

created next would be launch the social media/mail campaign, giving the opportunities for the

customers to share their customer experience with Megaline video, pictures or posting an

article, the best/ heartfelt experience will be rewarded.

Campaign will be initiated with above the line media activities. The marketing team of the

Megaline category will select and agency to develop a TV/Radio commercial to create

awareness on the campaign.

Once the ATL and BTL media activities have been carried out, publicity will be continued

via "through the line" media of poster and bill boarders.

48

Above the line media

Utilized create awareness of the product during the early stage of brand reposition. It will be

an effective enable to inform the target group, constantly remind them of the product to

encourage repeat purchases.

Radio - The working crowd is in the habit of following radio shows on their way in and

out of work.

Television - The advisement can be shoe during the interval of watching drama, sports

and music shows.

Bill boards - it is placed in near crowd of Main Street, super market location.

Below the lone media

BTL communications use the media that are more niche focus to SLT. BTL communication

gives the marketer the ability to tailor their messaging in a more personal manner to the

audience.

Special offers - Pricing to promote a product is a very common application. There are

many examples of promotional pricing including approaches such as BOGOF (Buy One

Get One Free), money off vouchers and discounts. Promotional pricing is often the

subject of controversy where SLT Mega line has practice. Sales are extravaganzas of

promotional pricing.

- Tele life insurance policy offered by SLT in partnership with Sri Lanka

Insurance Corporation, provide life insurance at affordable premiums for SLT Megaline

customers. The major benefit of the services is the affordability of the premiums and

convenience involved. The premiums will be changed to the customer's monthly

telephone bill and can be paid along with the SLT Telephone bill each month.

49

- New Megaline connection free interest payment plan to consumers. They can

pay in 3 or 6 installments at absolutely no interest using HASB or Sampath bank credit

card

Free gift - Every Megaline new connection consumers get an attractive umbrella free in

2014 as well as travelling beg with every new Megaline connection in valid into the

December 2013.

Public relation - SLT was the ICT solution providers for the 2013 communication on

wealth heads of government meeting (CHOGM). During the CHOGM, SLT already

provided its comprehensive communication solution to multiple geographic locations

where key forum of such as the CHOGM opening ceremony, main conference and

government functions, business forum, people's forum and media center.

50

Sponsor - SLT ha support as a lead to the institute of chartered accountant.

Through the line media

The specific type mass advertising for forming a prospect or customers database which can

be used for direct marketing activities

Social networks - It allows to work together with a brand through social media such

Facebook, Twitter and YouTube.

Website - it provide all the information to consumers about services, promotion, variety

of products and etc.

51

12.4 Distribution strategy

The SLT provide the services through the centers in island wide

Teleshops – 36

Regional offices - 34

Maintenance centers – 22

Contact centers - 7

SLT Megaline focuses on different areas. Based on the four main strategic themes of

services, operation, network and group synergy offer world class ICT and information and

information services to all Sri Lankan anywhere, anytime, It has best class deceiver of

produce and services

SLT Megaline is vital behind connectivity in Sri Lanka, delivering faster access ti

information and communication in all the key economic sectors of the country. As Sri Lanka

mechanisms up to services millions of tourists, the tourists related sectors such as airport and

flight, leisure needs and transportation are expected to keep up with the services need of its

customers.

The banking and finance sectors play a key role in the country's systems and sophisticated

technology platforms becomes their communication backbone which facilities all their

business and banking transactions.

Now is absolutely not the time to blindly continue the status quo with SLT’s distribution

strategies. The Internet is creating sea-changes in terms of traditional manufacturer-

distributor relations. It has seen significant waves of disintermediation in multiple product

lines, and can facilitate cost-effective broadening of distribution channels. Meanwhile,

improvements in supply chain management technologies must also be factored into choice of

distribution partners.

52

12.5 Physical evidence strategy

The intangible of the services experience of SLT services provide by the companies by way

of attaching physical products to the offers. The inseparability and the intangibility makes it

difficult for a customers to build a distinct perception by the use of services along, hence

companies take the help of telephone sets, ambience of the services administrating outlets is

also obtained by way pf providing value adding services

However customers tend to rely on physical cues to help them evaluate the product before

they buy it. Therefore marketers develop what we call physical evidence to replace these

physical cues in a service.

There are many examples of physical evidence, including some of the following:

This includes the design of the building itself, signage around the building, and parking at

the building, how the building is landscaped and the environment that surrounds the

building. This is part of what is known as the services cape.

The interior of any service environment is important. This includes the interior design of

the facility, how well it is equipped, internal signage, how well the internal environment

is laid out, and aspects such as temperature and air conditioning. This is also part of the

services cape.

Packaging

Internet/web pages

voice mails

internet facilities

Paperwork (such as invoices, tickets and dispatch notes)

Brochures

Furnishings

Signage (such as those on aircraft and vehicles)

Uniforms and employee dress

Business cards

Mailboxes

53

Some organizations depend heavily upon physical evidence as a means of marketing

communications, for example SLT Megaline with seasonal offers (Christmas). This is

important to their corporate image.

12.6 Process strategy

The process in telecom industry has been the major shortcoming during that days of the state

monopoly, however the current competition and quality services expectation demanding and

discerning customers have exercised enough pressures on all services providers to provide

essential infrastructure to run an efficient and trouble free continuous telecom services.

The process issues that these telecom companies need to attend to on priority relate to

Ensuring availability of new connectivity immediately - This issue has largely been

solved. SLT is in a position to issue new connection instantly.

Ensuring network availability at all times and all places failing under the jurisdiction of

the telecom company - The issue has still not been solved satisfactorily. There are

companies whose network gets blacked during peak hour. The connectivity also drops

frequently as the person travels away from the main towns.

Ensuring transparency in billing systems and the definition of prices or charge being

recovered from the customers - there is still a need to open up further and it is expected

that the increasing competition will bring in not only transparency but business ethic too.

Process is an element of service that sees the customer experiencing an SLT’s offering. It's

best viewed as something that their customer participates in at different points in time. At

each stage of the process, marketers:

Deliver value through all elements of the marketing mix. Process, physical evidence and

people enhance services.

Feedback can be taken and the mix can be altered.

Customers are retained, and other services or products are extended and marked to them.

54

The process itself can be tailored to the needs of different individuals, experiencing a

similar service at the same time.

12.7 People strategy

People are a very important role in telecommunication services marketing, in establish an

understanding of the customer expectation and the effects of having delivered as per the

expectation established and understood by the telecom services organization. Most of the

companies in telecom services marketing relies this and they have set up two different kinds

of people set ups in dealing with customers. SLT sting believes of arranging training

schedules and development programs for their people in the front offices and the people in

back offices. The people in the front offices of the permits too are often sponsored foe such

intensive training in consumer handling, customer sensitivity and etc.

In order to make sure that the process SLT internally in managed very well. The competition

in in telecommunication services being very intensive, each company ensure their people are

able to recover any kind of services loss immediately as otherwise it is quit difficult to not

only retain an existing customers but still more difficult to enlist a new customers. Hence,

SLT has a very strong people development policy and strategy.

People are the most important element of any service or experience. Services tend to be

produced and consumed at the same moment, and aspects of the customer experience are

altered to meet the individual needs of the person consuming it. Most of us can think of a

situation where the personal service offered by individuals has made people buy from people

that they like, so the attitude, skills and appearance of all staff need to be first class. People

have an important role in service delivery, they are relied upon to deliver and maintain

transactional marketing and people play an important part in the customer relationship

55

13. Budgets and financial Analysis

Projected profit and loss statement for the Magaline

The budget analysis of Megaline connection 4 typify distribute the target areas in Sri Lanka

Metro - Colombo

Region 1 - Central province, North central & North western

region 2 - Western province without Colombo, Uva province, Sabaragamuwa

province & Southern province

Region 3 - Northern province, Eastern province

Income Note Amounts Amount in

percentage

Sales

Expenditure

Administrative

Distribution

Financial

Any other

Net profit

01

02

03

04

05

10,000,000,000

4,000,000,000

3,000,000,000

1,200,000,000

800,000,000

1,000,000,000

100%

40%

30%

12%

8%

10%

56

Note – 02 Sales revenue

Product Area

12 months sales revenue in

Sri Lankan rupees

Megaline connection Metro 4,000,000,000

Megaline connection Region 1 3,000,000,000

Megaline connection Region 1 2,000,000,000

Megaline connection Region 1 1,000,000,000

Note - 2 Administration cost

Product Area

12 months administration

cost in Sri Lankan rupees

Megaline connection Metro 1.500,000,000

Megaline connection Region 1 1.100,000,000

Megaline connection Region 1 800,000,000

Megaline connection Region 1 600,000,000

Note – 3 Distribution cost

Product Area

12 months distribution cost

in Sri Lankan rupees

Megaline connection Metro 1,000,000,000

Megaline connection Region 1 1,000,000,000

Megaline connection Region 1 600,000,000

Megaline connection Region 1 400,000,000

57

Note - 4 Financial cost

Product Area

12 months financial cost in

Sri Lankan rupees

Megaline connection Metro 450,000,000

Megaline connection Region 1 350,000,000

Megaline connection Region 1 300,000,000

Megaline connection Region 1 100,000,000

Note – 5 other costs

Product Area

12 months other coat in Sri

Lankan rupees

Megaline connection Metro 300,000,000

Megaline connection Region 1 250,000,000

Megaline connection Region 1 150,000,000

Megaline connection Region 1 100,000,000

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14) Marketing Strategy implementation

First we must understand the role and impotence of overall effort, assign responsibilities to

making things happen, what need to be done and the feedback. There are three key steps to be

followed to implement successful marketing plan in practical implementation.

Having adequate resources to carrying out planning activities.

Understand the lead time, those who participate in execution element

Understand completely in detail departments and vendors requirements to implement

each element.

Following shows responsibilities allocations and possible cost for the plan.

Responsibilities Authorities Cost

Marketing plan & strategies Senior marketing manger 500,000.00

Internal communication C.E.O 1,00,000.00

Systems & Process Chief corporate &

information officers

500,000.00

Assign peoples Admin manager 1,000,000.00

Promotional activity Senior marketing manger 7,000,000.00

Total 10,000,000.00

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15 Monitoring and evaluation

Monitoring - Monitoring a strategic marketing plan requires that some challenging questions

have been asked, direction for the company's future has been set, and specific, measurable

goals have been targeted, identified as viable, and assigned via a budget. A marketing

strategy should include defining the vision on products, placement, pricing and promotion

and then detailing the vision within a budget that specifies monthly goals.

The following could be done in order to monitor and evaluate the progress of the marketing

plan for SLT megaline

Conducting monthly sales review meetings

Branch and outlet managers should communicate with top management in a timely basis

Building awareness among sales agents

If any drop in sales, corrective measures should be taken

Training the staff

Motivating the SLT customer service officers

Conducting customer researches

Conducting a market share analysis

Stay in touch with competitor activities

Comparing the actual results with stated goals at the end of the year

Evaluation - When we determine the level of success in achieving the plan, goals and

objectives, research and evaluation are usually given less time, money and effort than goal-

setting and the actual communications tactics. The evaluation techniques include the

following.

Mail and e-mail surveys

Online samples

Communications audits

Telephone surveys

PR audits

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CRM

Database searches

Finally the implementation of a successful marketing plan for the year 2013 can be evaluate

with the achievement of the set sales budget for the year. Increase in market share for total

drive.

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References

Colin Gilligan and Richard M.S. Wilson “Strategic marketing planning” special Indian

Edition.

Understating from “Marketing planning” Lecturer.

http://www.slt.lk/data/aboutslt/profile.htm

http://www.trc.gov.lk/

http://www.cbsl.gov.lk/

www.dialog.lk/

www.lankabell.com/

www.suntel.lk/

SLT’s annual report – 2013

Interview conducted to P. Roshan Kaluarachchi of Chief Marketing Officer