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Transcript of M1
1
Table of Content
1.0 Executive Summary ........................................................................................ 3
2.0 Introduction ..................................................................................................... 4
2.1 Marketing Strategy........................................................................................................... 4
2.2 Target Market................................................................................................................... 6
2.3 Positioning ....................................................................................................................... 7
3.0 Marketing Mix ................................................................................................ 7
3.1 Product ............................................................................................................................. 7
3.1.1 Mobile network ......................................................................................................... 7
3.1.2 M1 Broadband .......................................................................................................... 7
3.1.3 3Gs Network ............................................................................................................. 8
3.1.4 GPRS......................................................................................................................... 8
3.1.5 MiWorld Mobile ....................................................................................................... 8
3.1.6 Messaging ................................................................................................................. 9
3.1.7 Roaming .................................................................................................................... 9
3.1.8 International Service ................................................................................................. 9
3.2 Place ................................................................................................................................. 9
3.3 Price ............................................................................................................................... 10
3.4 Promotion ....................................................................................................................... 11
3.4.1 Advertising .............................................................................................................. 11
3.4.1.1 Advertising Creativity ...................................................................................... 11
3.4.1.1.1 Message Appeal - Humour ....................................................................... 12
3.4.1.1.2 Message Structure ..................................................................................... 13
3.4.1.2 Comparative Advertising ................................................................................. 13
3.4.1.3 Advertising Channel ........................................................................................ 14
3.4.1.3.1 Radio Ad ................................................................................................... 14
3.4.1.3.2 Print Ad ..................................................................................................... 14
3.4.1.3.3 Online platform ......................................................................................... 15
3.4.1.3.4 Outdoor Media .......................................................................................... 15
3.4.2 Public Relation (PR) ............................................................................................... 16
3.4.2.1 Building Marketplace Excitement before Media Advertising Breaks ............. 16
3.4.2.2 Building Brand to Customer Bonds ................................................................. 18
3.4.2.3 Providing Value Added Customer Service ...................................................... 18
3.4.2.4 Creating Advertising News Where There Is No Product News ...................... 19
3.4.2.5 Defending Product at Risk and Giving Consumers a Reason to Buy .............. 19
3.4.2.6 Publicity ........................................................................................................... 20
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3.4.3 Sales Promotion ...................................................................................................... 21
3.4.3.1 Premiums ......................................................................................................... 21
3.4.3.2 Contest & Sweepstake ..................................................................................... 22
3.4.3.3 Loyalty Programme ......................................................................................... 22
3.4.4 Direct Marketing ..................................................................................................... 23
3.4.4.1 Direct Mailer .................................................................................................... 23
3.4.4.2 Internet ............................................................................................................. 23
3.4.5 Sponsorship ............................................................................................................. 24
3.4.5.1 Community Projects......................................................................................... 24
3.4.5.2 Arts Scene ........................................................................................................ 24
3.4.5.3 Sports ............................................................................................................... 25
3.4.6 Interactive Media .................................................................................................... 26
4.0 Changes in Marketing Communication ........................................................ 27
4.1 M1 Proposition of New Title & Corporate Logo........................................................... 27
4.2 M1 Unconventional Methods of Advertising ................................................................ 28
4.3 New Communication Platform ...................................................................................... 29
5.0 Conclusion .................................................................................................... 30
6.0 Reference ...................................................................................................... 31
Appendix (Experience Paper) ............................................................................. 32
3
1.0 Executive Summary
M1 – one of the Singapore's leading communication service providers is the most exciting
and innovative mobile, broadband and IDD service provider. M1‟s marketing strategy
includes launching most of the innovative products & service as well as always being the
first-mover in introducing cutting edge technology.
With the increasing competitive business environment in the local telecommunication
industry, M1 position itself differently and enhance its marketing mix in order to stay ahead
of competitors. The 4Ps were reviewed in consideration of M1‟s target market audience as
well as positioning – young, dynamic, fun, vibrant and energetic.
As one of the prominent mobile & data service providers, M1 leverage on Integrated
Marketing Communication (IMC) program to better use of its available resources. The IMC
tools used by M1 are advertising, public relation (PR), sales promotion, direct marketing,
sponsorship and interactive media.
The success of M1 depends on successful IMC campaign. Various promotional tools used by
M1 are closely analysed. Advertising creativity, message appealing, message structure &
advertising channels are important components for M1‟s success. The creation of public
relation activities determine consumers‟ perception on M1. The implementation of sales
promotion to increase market share and the engagement with consumers through direct
marketing, sponsorship and interactive media are congruence with its marketing objectives as
well as positioning.
All the promotion activities that carried out by M1 with the mindset of creating better
integrated system are important to maximise shareholders‟ value and at the same time,
enhance consumers‟ experience.
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2.0 Introduction
M1 – one of the Singapore's leading communication service providers was launched in April
1997 in Singapore with over 1.9 million subscribers. It is the most exciting and innovative
mobile, broadband and IDD service provider. Within the first 3 weeks of the establishment,
M1 achieved one of the world‟s highest take up rate in cellular market in view of the new
entrant category – 35,000 cellular customers, and end the long-held monopoly market by the
incumbent SingTel Corporation.
To better compete with SingTel, M1 took a different approach in the industry – continuously
introduce innovative products and services such as 24-hour customer service, longer off-peak
hours and bundled Short Message Service (SMS).
Together with the strong branding and value proposition, the innovative approach adopted by
M1 achieved significant profit within 2 years since the commencing of its operation. Since
then, it has made significant inroads into the local mobile communications market, gaining
considerable brand presence and market share through strategic marketing strategy –
innovative and quality mobile service provider with a customer-focused approach.
2.1 Marketing Strategy
M1‟s marketing strategy fit well in its vision “To be the leader in personal communications,
distinguished by innovativeness and dedication to our customers, people and shareholders” –
differentiation strategy: the innovative approach.
Ever since its inception in the local telecommunication industry, M1 introduced most of the
innovative products & service as well as always being the first-mover in introducing cutting
edge technology. In 20 June 2011, M1 launched the Long Term Evolution (LTE) based Next
Generation Mobile – the first in Southeast Asia, after the initial successful launched next
generation fixed broadband services. M1 customers will now be the first to experience the
ultra-high speed mobile services and applications. Apart from the recent development, the
following shows M1‟s milestone in reaffirming its technological leadership and offering to
enhance customers‟ experience.
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Date Description
11 Aug 2010 M1 launches Singapore's first remote technical support service for
computers and smartphones.
01 Oct 2009 M1 HSPA+ network first in Asia Pacific to deploy MIMO to achieve
Singapore's fastest download speed of 28Mbps.
07 Apr 2009 M1 launches Singapore's first prepaid broadband service, offering
unlimited usage.
06 Nov 2008 M1 delivers mobile broadband speeds of up to 14.4 Mbps (downlink) and
5.76 Mbps (uplink) with newly upgraded HSPA network.
22 Sept 2008 M1 launches Singapore's first post-and prepaid dual SIM solution in a
single handset.
05 June 2008 M1 responds to consumer feedback with better and brighter mobile plans.
28 Mar 2008 M1 shrinks customers' bills with Multi Line Saver.
20 Apr 2007 M1 prepaid customers first in Singapore to enjoy 3G service.
08 Feb 2007 M1 offers lowest rates for prepaid cards.
24 Jan 2007 M1 launches MeTV, Singapore's first video sharing service on mobile
phones.
03 Oct 2006 M1 customers first to enjoy podcasts on mobile phones.
15 Aug 2006 M1 launches Singapore's first 'group sharing' tariff plan for businesses.
17 July 2006 M1's launches Singapore's first 3G-enabled BlackBerry handset.
11 July 2006 M1 selects Nokia to supply Singapore's first High Speed Packet Access
network.
17 Apr 2006 M1 takes the lead with attractive unlimited 3G data access offering for
cost-effective wireless broadband experience.
17 Jan 2006 M1 first to announce trial of Mesh Wi-Fi and pre-WiMAX in Singapore.
10 Aug 2005 M1 launches BubbleTALKTM, Singapore‟s first short voice messaging
service
05 May 2005 M1 launches Singapore's first prepaid card with 9000 free SMS per month
17 Feb 2005 M1 launches Singapore's only prepaid card with free incoming calls.
01 Feb 2005 M1 takes the lead in messaging with new cyber Message Centre.
19 May 2004 M1 and Google offer Asia's first wireless image search for mobile phones.
06 May 2004 M1 launches Singapore's first music recognition service.
03 Mar 2003 It's a first and it's free - Video clips from M1.
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07 Oct 2002 M1 is world's first mobile operator to receive COPC-2000 certification for
its call centre.
01 Aug 2002 M1 launches Singapore's first Multimedia Messaging Service, for free
initially.
17 June 2002 M1 makes Singapore's first packet data call over commercial 3G network
infrastructure.
21 Feb 2002 M1 launches Singapore's first FLEXIBLE mobile plan!
22 June 2001 M1 first to sign with Yahoo! Singapore for Yahoo! SMS Messenger
Service.
16 May 2001 M1 and EdgeMatrix create Asia Pacific‟s first independent wireless
research centre.
14 May 2001 Singapore's first scented top-up cards for M1 prepaid customers.
03 Apr 2000 M1 and NETS launch first ever Cash card top-up service on mobile phones.
31 Aug 1999 M1 ups wireless data speed to 14.4kbps, the first in Singapore for all
customers.
13 July 1999 M1 launches Singapore's first GSM 900 prepaid SIM card
06 July 1999 Putting the Internet in your pocket - Nokia to supply South East Asia's first
GPRS network to M1.
09 Apr 1999 M1 first in Singapore to launch connect card for Skyphone service.
23 Jan 1998 M1 first in Singapore to introduce technology to enhance voice quality in
GSM network.
2.2 Target Market
M1‟s innovative approach is closely linked to its target audience. Most of its offering and
enhanced technology are always targeting at consumers between the age of 16 – 49 whom are
IT savvy and prefer to experience advance, complicated and innovative products especially
young working adult & youth group while corporate group stay at relatively low.
M1 recently launched a successful youth marketing campaign – “Live Unlimited", in order to
increase its market share. The great marketing engagement with the youth group has made
M1 to achieve more than 20% customer growth in the youth segment since launch. Many of
the campaigns and innovations are developed with the target market in mind.
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2.3 Positioning
With its target market identified, M1 position itself as a young, dynamic, fun, vibrant and
energetic company with the corporate colour of bright orange and yellow. Also, M1 sees
itself as an innovative company that always satisfied the needs of its target market. In order to
enhance its positioning, M1 continuously enhances its network in order to bring the best
experience for its customers. Not forgetting on the viral marketing, M1 partners with
LASALLE in creative fund-raising project for disadvantage youths – imparting better
perception into youth at the young age in order to create long term loyalty customers in the
near future.
3.0 Marketing Mix
In order to realise the marketing goals as well as to be the leader in the telecommunication
industry, M1 marketing mix is carefully examined and planned in congruence with its‟
positioning and target audience.
3.1 Product
M1 offers several products that aim to achieve its marketing goals. Products offer always take
into consideration of its target market characteristics.
3.1.1 Mobile network
M1‟s customers enjoy excellent mobile coverage all over Singapore on M1's state of the art
networks that offer 2G/2.5G/3G and HSPA (High Speed Packet Access) services. The HSPA
network offers data speeds of up to 21Mbps (downlink) and 5.76 Mbps (uplink) nationwide
which is the fastest rate in Singapore.
3.1.2 M1 Broadband
Launched with M1's HSDPA network in December 2006, M1 Mobile Broadband offers
wireless broadband access to Singaporeans anytime and anywhere. Plug and play devices are
provided without charges for customers when they sign up. M1 became a full-fledged
broadband player in August 2008 when it introduced Fixed Broadband services with
download speeds of up to 100 Mbps. The company also introduced Prepaid Broadband in
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April 2009 – Singapore‟s first prepaid broadband card, so that occasional broadband users
can have short-term broadband access without taking up a contract. In September 2010, M1
launched its high-speed fibre broadband service via the Next Generation Nationwide
Broadband network (NGNBN).
Reputed for its ingenuity, M1 made available Singapore‟s first 1Gbps plan for homes and
businesses. Four fibre broadband plans comprising of download speeds of 1Gbps, 100Mbps,
50Mbps and 25Mbps are offered to residential customers whilst corporate customers are
presented alongside with the options of a complete business solution and customise offerings
with downlink speeds of 10Mbps to 1Gbps on GPON and Active Ethernet technology.
3.1.3 3Gs Network
M1 launched its 3G services in February 2005 and revolutionised the way customers use their
mobile phones. It allows them to do more on their mobile phones – from browsing the
internet, downloading of music tracks and mobile content to watching the latest music videos
and catching the latest news 'live'. 3Gs network also allows customers to make local and
international video calls to family and friends.
3.1.4 GPRS
M1 was the first in Southeast Asia to conduct trials on GPRS in 1999 before introducing it in
2000. Today, many services are carried over the GPRS platform, including MiWorld on
GPRS and data access via GPRS (SunSurf Mobile).
3.1.5 MiWorld Mobile
MiWorld Mobile – M1‟s mobile portal, has a wide range of mobile entertainment and
information services. M1 customers can access the portal via GPRS or 3G-enabled handsets
and get more fun out of their mobile phones. News and sports updates, games, movie trailers,
videos, music and many more exciting mobile services are all available on MiWorld Mobile.
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3.1.6 Messaging
M1 makes communicating with family and friends a fun and interactive experience with its
messaging services which include SMS, MMS, video calls and mobile instant messaging.
M1's email solutions such as its BlackBerry service also provide customers with an easy and
convenient way to access their emails on-the-go.
3.1.7 Roaming
With M1 roaming service available in over 230 countries and territories, M1 customers can
stay connected with their family and friends wherever they go. As Vodafone's exclusive
partner, M1 customers get to enjoy greater savings when they log on to Vodafone‟s networks
in overseas.
3.1.8 International Service
M1 connects its customers to the rest of the world on its Premier IDD 002 service and value
call service IDD 021. M1 IDD services offer customers the highest connection quality at the
most competitive rates. Customers can register for M1 IDD services on their mobile phone as
well as their fixed lines at home or at work.
3.2 Place
In order to reach out the target audience, M1 locates itself in 19 locations across nationwide
especially in the estate where youth and working adults can be found. Some of the prominent
locations include:
Region Outlets
Central The Change Alley CSC, The Paragon & Bugis
outlets
North Sun Plaza & Sembawang
East Changi Aiport & Tampines Mall
West IMM, Westmall & Clementi Mall
Northeast NEX & Compass Point
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Apart from its own retail shop, M1 partners with 2 companies in distributorship deal –
HandPhone Shop & Arrow Communication. These 2 companies act as a sole distributor for
M1‟s brand and customer would be able to approach these 2 companies for any purchases.
The distributors expand M1‟s point of contact with HandPhone shop increase M1‟s reach by
23 outlets and Arrow Communication by 13 outlets. This makes M1 reachable total outlets to
55 island-wide. This huge point of contact enhances M1‟s strategy in reaching to its target
audience as many as possible.
3.3 Price
To reach out to its various target audiences, M1 provides range of pricing for each target
group from Youth plan, Broadband plan, various “Sun” plan, iPhone plan / mobile data plan,
Corporate plan and the innovative “Do It Yourselves” (D.I.Y) plan. The pricing strategy
adopted seems to be as competitive however, M1 is always the first-mover in attractive deals.
With its always targeted youth group, M1 offers attractive package which includes:
1. Unlimited Free SMS & MMS
2. Free Local Data Bundle
3. Free Campus & Army Camp Calls
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3.4 Promotion
With the 3Ps carefully sought after, M1 further leverage its resources to better reach its vision
by adopting Integrated Marketing Communication which includes advertising, public relation
(PR), sales promotion, direct marketing, sponsorship and interactive media.
3.4.1 Advertising
One of the most important components of IMC program is advertising. While advertising
communicate information to consumers, it does much more than that. TV and radio
commercial as well as print ads serve as an entertainment, motivation, fascination, fantasy,
irritation and information. M1 ads and commercials have the tendency to create and shape
consumers‟ desires, goals and solve consumers‟ problems. Also, advertising creates images
or associations and position M1 in the consumers‟ mind as well as transform the experience
of buying and / or using a product or service (Belch & Belch, 2009).
3.4.1.1 Advertising Creativity
Advertising creativity is an important aspect in determining the brand positioning of M1 and
its future prospect. Advertisement must be creative and entertaining in order to break through
the clutter and impress the target audience. The likability and viewer‟s reaction are 2
important aspects in judging the brand preferences as well as ads creativity (Bandler, 2005).
The greater the emotional attachment, the great positive feelings arose from the consumer
towards obtaining the product or service. M1‟s “Free IDD Calls, Indian Restaurant” TV
commercial generated much talking points and positive feelings with the TV commercial
claimed gold award at the annual Viewers‟ Choice 2007 under the local category. While
focusing on the creativity, the message projected was clear with a stint of humour that hit
right on the consumers‟ mind and relevant to the target audience in solving expensive
roaming calls to various cities around the world and what‟s more is the memorable ad that
linger in consumers‟ mind.
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3.4.1.1.1 Message Appeal - Humour
One of the advertiser‟s most important creative strategy decisions involves the choice of an
appropriate appeal – some ads are targeting at rational and logical aspect while others
involved consumers emotional status. M1 launched TV ads every year and it has been M1‟s
strategy to always use humour appeal to attract consumers for its young and bright
positioning. According to Craig & Sternthal (1973), humourous ads tend to attract and
capture consumers‟ attention. This strategy increases the likeliness of the ads and enhances
the effectiveness in bringing the message across to impart sense of liking to consumers‟ mind
and feeling towards M1 without much rejection. For instance, M1‟s “Free IDD Calls, Indian
Restaurant” ad captured the consumers‟ attention with an Indian restaurant‟s owner located at
Mumbai (India) taking a phone order from Singapore which focus on the free IDD calls.
Apart from the “Free IDD Calls, Indian Restaurant” ad, most of M1‟s other advertisements
adopt the same concept. For instance, M1‟s Brighter Campaign launched during end of 2007
by TBWA / Tequila. The TV commercial send a message to consumers that squirrel and
penguin can be smarter than Albert Einstein and Scholar with a little help from M1. The ads
were unconventional and yet with an innovative sense of humour as well as communicate to
the consumers on the benefits that M1 could offer. Another example will be “You Deserve
Better” campaign which adopted the same concept.
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3.4.1.1.2 Message Structure
In any advertisement launched by M1, there are always some messages points that it wants to
get across to the consumers‟ mind. To clearly impart messages into consumers‟ mind, M1
need to explore the best way to communicate to the consumers and understand the
consumers‟ viewpoints to prevent any rejection. One important aspect is the order of
presentation (Belch & Belch, 2009).
M1 has launched many advertisements across the year and the main point that M1 focusing
on will always be presented last. For instance, “Free IDD Calls, Indian Restaurant” ad
presented its main point at the end of the ad – Free IDD calls to 15 countries. The sudden
flash of the benefit right after the hilarious ad captured the consumers‟ attention in knowing
what the ad was all about. The ad became memorable and the offer was planted into
consumers‟ mind resulting in enhancing better recall and retention of the ad. According to
Krugman (1962), any communication messages that are presented first (primacy effect) or
last (recency effect) will result in firm, prolong memory and more persuasive status than
those presented in the middle.
3.4.1.2 Comparative Advertising
Apart from launching humour appeal advertisement, M1 undertook several comparative
advertisements as well. According to Wilkie & Farris (1975), companies engaging
comparative advertising usually involved the competitors directly or indirectly against one
particular benefit or more attributes. For instance, M1 comparative value for money plan with
other telecom companies – Red represents SingTel and Green represent StarHub.
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While consumers may have doubts over what M1 is offering, comparative ad will still urge
the consumers to find out more on the offering that creates relatively high awareness. As M1
is the smallest amongst the 3 telco companies in Singapore, competitive advertising gives M1
an advantage to tap into the leader‟s market which is SingTel.
3.4.1.3 Advertising Channel
M1 has launched several successful campaigns and always use a mixture of communication
channel. While TV commercial makes up the bulk of the communication platform, M1
embarked on radio, prints, online platform as well as outdoor media.
3.4.1.3.1 Radio Ad
In order to support the TVC that M1 launched, radio commercials were planned as well.
When “Free IDD Calls, Indian Restaurant” ad was shown in the TV for several times, the plot
was used for radio ad as well. In this case, when consumers heard the conversation of the
Indian Restaurant owner, M1‟s free IDD calls offering will triggers the consumers‟
unconscious mind which had already been implanted with a humourous perception of the ad.
The idea of this combination is to stimulate greater recall process and generate higher
awareness in its offering.
3.4.1.3.2 Print Ad
Apart from radio commercial, M1 advertise its offering in print ads as well – newspaper,
magazine, brochure and etc. Newspaper is one platform that M1 is fully committed especially
in The Straits Times and TODAY newspaper which saw its readership across millions. Not
only that, M1 advertise in Chinese newspaper as well such as Lian He Wan Bao (联合晚报).
15
3.4.1.3.3 Online platform
M1 corporate website itself is an advertisement in nature – the best online platform for
advertisement. M1 corporate website presents its‟ theme with orange and yellow colour
(corporate colour) which symbolise young, energetic and innovative that well target its
market group. M1 corporate website does not only provide company‟s details but rather, it
serves as a bridge to bond with the consumers – including M1 online shop, online promotion
and etc. Apart from that, M1 do advertise on Yahoo website, MSN messenger, blogs and etc.
3.4.1.3.4 Outdoor Media
Last but not least, M1 advertise using outdoor media as well. Singapore has been classified as
a country with small population density with people can be seen anywhere. Therefore,
outdoor media tend to generate greater reach. One example is to undertake transit advertising.
Singapore transport ridership has reached all time high with millions trips of journey made
everyday to workplace, institution and etc. Therefore, M1 realised the prevail advantages and
partnered with Ooh Media in launching several theme ads to be advertised at Singapore Mass
Rapid Transport – SMRT‟s trains and station. The idea is to get high level of awareness due
to the high ridership of commuters. Not only that, M1 created huge banner ads for “Brighter”
campaign.
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3.4.2 Public Relation (PR)
While M1 embarks on series of marketing communication tools, PR is one tool that cannot be
overlooked. PR function deals with the public perception on the company and it has a
significant impact on the relationship between M1 and the consumers. In order to implement
PR program effectively, M1 integrates it in conjunction with Integrated Marketing
Communication (IMC) elements (Weiner, 2005). M1 has always implemented its PR
program through Press Release, Press Conference, Community Involvement & the Internet.
3.4.2.1 Building Marketplace Excitement before Media Advertising Breaks
The recent PR activity that M1 undertook was in conjunction with its product offering of
Apple‟s iPad2. M1 announced that it will offer iPad2 with Wi-Fi & 3G through press release
on 09 May 2011. The purpose of this is to create hype and excitement on its offering as well
as to create bonding with its customers on the exciting launching of iPad2 in its stores. On 18
May 2001, M1 issued another press release to finalise its iPad2 offering to be launched on 20
May 2001. By this time, consumers would have already known the exciting news and were
well prepared to storm into M1 stores for the inaugural offering.
17
Similarly, M1 created high marketing buzz on its iPhone offering in 2009. M1 issued press
statement on 13 Oct 2009 to affirm consumers that an agreement has been made with Apple
to bring iPhone into Singapore. On 7 Dec 2009, M1 confirmed on its tailored iPhone plan to
be launched on 9 Dec 2009. This event hyped up the consumer markets and great deal of
anticipation prior to the product availability. On the launching date, consumers were found
queuing days and nights at M1‟s Paragon Shopping Centre & West Mall outlets in order to
grab the limited stocks.
This platform gave M1 an opportunity to gain publicity of its offering as well as increasing
the effectiveness of advertisement later on. In addition, media coverage was high with news
broadcasted at various Mediacorp TV channels such as Channel News Asia, Channel 8,
Channel 5 as well as radio. The free publicity gain from all these free channels were
considered huge success for M1 during the launching of iPhone and iPad events with its logo
flashed and mentioned to rejuvenate its already innovative approach.
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3.4.2.2 Building Brand to Customer Bonds
In order to retain its already huge customer base, M1 rewards its loyalty customers through
various treats – Sunperks rewards, M1 Box Office, Youth Treats, Birthday Treats and etc.
Also, to better capture the attention of its existing customers as well as non-contract users,
M1 launched weekly special buy and online offer. The rewards program aim to keep in touch
with its consumers as well as to show an appreciation throughout all this while. The biggest
reward that M1 has ever launched was “12 weeks 12 cars” SMS Contest in August 2009.
This event was incorporated with teaser ad to increase M1 branding awareness on the whole.
3.4.2.3 Providing Value Added Customer Service
M1 provides value added services to better serve its customers especially through online
platform as well as toll-free hotline. Registering IDD services, roaming subscription, activate
/ deactivate services are now at customers finger tips and can be done anytime and anywhere.
Online platform is in-line with M1 target market characteristics in which they are IT savvy
and prefer to engage the services on-the-go.
19
3.4.2.4 Creating Advertising News Where There Is No Product News
Advertisement sometime can be the focus of publicity. M1 launched a reminder ad in 2007
on its IDD service – “Free IDD Calls, Indian Restaurant” ad. This ad highlight M1 free IDD
call to 15 countries and the ad was incorporated with sense of humour which captured large
number of audience. People talked about this ad and word-of-mouth was heard everywhere.
While there was no new product involved in this ad, it achieved a high level of positive
publicity not only in terms of its existing offering but innovative ad as well.
3.4.2.5 Defending Product at Risk and Giving Consumers a Reason to Buy
M1 teamed up with LASALLE College of the Arts in creative fundraising for
underprivileged youth from Beyond Social Service (BSS). T-shirt was designed by student
according to M1‟s Student & Youth plan and must portray the benefit of it. All proceeds
collected from the T-shirt designed sales were donated to BSS for funding programmes in
fighting delinquency among children and youths. While all the competitors were offering
student plan for all their members, M1 was trying to defend its market share by creating
fundraising event to engage with youth as well as to enhance its brand awareness for its target
market. With this, M1 would be able to gain high exposure from its target market as well as
providing them a reason to purchase M1‟s student plan in practice of societal marketing.
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3.4.2.6 Publicity
Publicity can always bring a company to the next level or destroy the company. While
publicity can be in the form of good and bad however, with the increasing demand of
customers, there tend to be more bad publicity than good ones. On 18 May 2011, M1
experienced the second major service disruption (faulty card in one of the servers) in
Singapore, the first service outage being SingTel in 1997.
There was a lot of customer complained on the service disruption and to remedy the situation,
M1 restore the service within 8 hours and issued press statement to apologise as well as
offered its customers with free local mobile calls, SMS and MMS on 25 May 2011. Some
customers were still not satisfied with the offering and demands for more while some were
satisfied with the service recovery. Other than press statement, M1 advertise its message in
Newspaper as well as embarking on online media such as Facebook to deliver its finding and
commitments.
Moving on, M1 reaffirms its technological leadership in the wireless network by introducing
the first of its kind technology in Southeast Asia – Long Term Evolution (LTE) based Next
Generation Mobile Network, on 20 June 2011. Enhancing customer experience through
advance network as well as delivering its promising brand value after the earlier service
disruption was one way to generate free and positive publicity from the consumers with
greater credibility and improves the consumers‟ perception on M1 services. The news was
being spread throughout Singapore with significant and credible word of mouth being
generated to further expand higher rate of investment (ROI).
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3.4.3 Sales Promotion
While M1 does not fully utilise sales promotion in view of its branding, M1 still engage in
some sales promotion techniques. Sales promotion will be able to increase market share and
revenue by a certain percentage in the short term and at the same time, gain more momentum
from the market leader – SingTel. This will increase the take up rate of its offering as well as
providing an incentive for consumers to switch from SingTel & StarHub while retaining
existing customers. Most importantly, sales promotion enhance and support the overall IMC
campaign and building brand equity by engaging consumers to build stronger bonds that
result in customer loyalty (Belch & Belch, 2009).
3.4.3.1 Premiums
To better create awareness on its fixed broadband services, M1 adopt premium technique to
capture certain market share in this field especially targeting at its already huge consumers
base. For instance, free premiums such as PlayStation or laptop to go along with any 20-
month broadband contract signed. As per survey done by Smith (1989), research shown that
consumers would prefer to purchase products that come with premium over and over again.
Premium is able to create extra incentive that entices consumers to purchase.
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3.4.3.2 Contest & Sweepstake
In 2009, M1 organised the best ever event in the company‟s history – 12 cars & numbers of
laptop to be won in 12 weeks SMS contest for M1 subscribers only. Participants will go
through series of questionnaires ranging from history, geography, sports and etc. Weekly
winner was chosen base on the highest score that they obtained from the SMS quiz. The
prizes attracted lots of attention and interest amongst M1 consumers. They were draw into the
perception that they may get some luck to win the attractive prizes (Sale, 1999).
3.4.3.3 Loyalty Programme
To better rewards loyalty customers, M1 introduced series of loyalty programme. One of the
most interesting rewards is SunPerks programme. Consumers‟ expenditure on M1 services
will be entitled to certain rewards points that can be used to exchange for rewards such as
rebate on total bill, redemption of free movie tickets, retail vouchers and etc. The more
customers spend on M1 products and services, the more rewards points they will get. Also,
this will encourage the consumers to use M1 products on a continual basis especially with the
launch of its multi-line saver promotion which entitled M1 consumers to get a monthly rebate
of up to 35% off subscription fees. According to a survey done in 2007, loyalty programme is
important in retaining loyalty customers as well as maintaining market share and at the same
time, consumers particulars such as interest, spending behaviour, characteristic and etc, are
all captured in the loyalty programme in order to better understand the consumers‟ behaviour.
A recent study by a loyalty marketing firm found that 66% of consumers say that discounts
are the main reason they participate in loyalty programs (Joyce, 2005).
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3.4.4 Direct Marketing
M1 direct marketing plans are mainly targeting at their own customers. While there are many
forms of direct marketing, M1 uses direct mailers and internet platform to carry out its direct
marketing activity.
3.4.4.1 Direct Mailer
M1 often tap on the existing customer database for its direct mailers activity. According to
Belch & Belch (2009), the success of a good direct mailer is the mailing list and their most
commonly used lists of the existing customers. Mobile and broadband plans are usually
signed with a 2-year contract. Therefore, when customers is eligible for a re-contract, M1 will
embarked on the direct marketing platform to foster a closer relationship as well as create
loyalty customers.
3.4.4.2 Internet
With technology advancement and the accessibility of internet, online shopping has been a
new craze. Consumers can now purchase their mobile phones, upgrade their phone contract
or even check prices all with just a click. In this instance, M1 has its own online shop – M1
Shop, via its corporate website. The approach is to create hassle-free transaction for
customers who hardly have time to do some shopping. Also, M1 shop creates combination
between direct marketing with advertising, public relation, sales promotion as well as
interactive media. Another E-shop that M1 set up is the “Live Unlimited” that target the
youth market in which M1 is the strongest as compared to the other 2 telcos.
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3.4.5 Sponsorship
Sponsorship is one way of generating high brand awareness with the option of creating
societal marketing concept as well. M1 have been actively involved in community projects,
the arts scene as well as sports.
3.4.5.1 Community Projects
M1 have been participating and creating charitable events such as M1‟s Charity Golf and M1
Charity Carnival events staged annually, President‟s Challenge 2002 – 2004. M1 teamed up
with IT partners through the series of exciting fundraising activities called Sharkathon in
2002, Gladiathon in 2003 and Junglathon in 2004 and the M1-funded Camp Sunshine from
1999 – 2001.
In 2011, M1 teamed up with rival telco companies together with IPX to allow post-paid
mobile customers to donate for the Japan‟s twin disasters. They agreed to waive the premium
administration fees and have pledged all donations to the fund. Also, they worked with
LASALLE College of the arts in raising funds creatively for the under privilege youths in
2010. T-shirts were designed by LASAELLE students for sale with all the proceeds to be
donated to BSS to fun programme on delinquency among children and youths.
3.4.5.2 Arts Scene
Since 2005, M1 is the sponsors for the annual M1 Singapore Fringe Festival to help make
arts more accessible to Singapore‟s youth. The Fringe Festival gives artiste a strong platform
to launch and showcase their talents to those who share the same passion. M1‟s mission for
the Fringe festival is to be a creative centre, with a twin purpose of innovation and discussion
for the theatre, dance, music, visual arts and mixed media.
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3.4.5.3 Sports
In 2006, M1 started the School Challenge League (SCL), with the intention of providing
more competition for schools who failed to qualify for the National Inter-Schools Netball
Championships. The M1 SCL gives these schools an opportunity to play games against more
schools of a similar standard. While M1 does not only sponsor for the SCL, it engage with
some other sports such as Rugby as well. The approach is to get closer to children and
implant better perception into their mindset while hoping to get them be an M1 consumer in
the near future.
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3.4.6 Interactive Media
With the Internet fast becoming an important tool, consumers have decided to step into the
World Wide Web as a source for information, entertainment and even shopping. M1 have not
deterred away from that aspect – creating 2 websites and using other forms of online
advertising to create awareness, image, branding and buzz, generate interest and gain
consideration.
The corporate website as well as other interactive media such as M1 Facebook page is to
support the overall IMC campaigns. M1 Facebook page does not only serves as an
information page but it also promotes contests, promoting new products, events and even
updates of product availability. It also allows interaction from the consumers and get replies
from M1 itself via Facebook.
Advertising, public relation, sales promotion, direct marketing as well as sponsorship are all
using the internet to better leverage its resources to reach out to the mass as well as the right
target audiences. The use of interactive media brings M1 closer to its target market and with
the idea to sustain long term relationship.
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4.0 Changes in Marketing Communication
Ever since M1 launched in 1997, there are series of changes to its marketing communication
strategy in order to compete with the long standing telco giant – SingTel. Due to its lack of
fixed cable services, the only strategy to stay abreast with the competitors is to evolve itself
for greater consumers‟ captivity. M1 started brightly in the marketing front with catchy
phrases and theme song which is euphonious. However, they have undertaken changes in
their strategies and methods in reaching out to their customers over the years.
4.1 M1 Proposition of New Title & Corporate Logo
M1 Limited (M1) announced that the name of the company has been changed from
MobileOne Ltd to M1 Limited with effect from 8 April 2010. M1 has grown tremendously
over the years and is no longer a pure mobile operator. M1 has made itself into an established
and well recognised brand and are better known to customers and the market as M1 over the
14 years. The new name of the company is intended to reflect these developments. It also
position itself as a full-service telecommunications company offering both fixed and mobile
voice and broadband services. With this major re-positioning, M1 is now projecting greater
threat to both SingTel & StarHub.
Also, there have been some changes to M1‟s logo as well. With its positioning as a young,
fun, dynamic and energetic characteristic, M1 logo is signified by “Sun” with the Orange
colour represents its livelihood. The famous M1 logo has been modernised and injected with
a new life while retaining the original design over the past few years. The campaign involves
a logo redesign and a new slogan rolled out in TV commercial and print ads. The „1 Life.
Live it‟ tagline is replaced by „Brighter‟ during 2008 with sparklers adorning the new logo.
This signifies M1‟s desire and commitment in maintaining high level of innovation that M1 is
famous for while the inclusion of the sparkers in the logo was to communicate its “Brighter”
message in conjunction with Christmas offering. This further enhance M1 message in the
sense that consumers can enjoy better benefits and M1 will “Brighter” up consumers life
especially during festive season.
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After the “Brighter” campaign, the most recent important changes is the incorporation of a
full orange circle instead of a semi-circle, the underlying meaning is to signify the evolution
of M1 to a full-pledge service oriented company. M1 aims to be closer to their customers and
paying special attention to their demand thus catering to their needs and live up to their
customer expectation.
4.2 M1 Unconventional Methods of Advertising
Over the years, as M1 evolve into the leading innovative company in the local
telecommunication industry, it gradually changes its creative strategy in advertising. From
the classic long-standing “I am Walking on Sun Shine” campaign advertisement to the
unconventional way of TV commercial such as “Free IDD Calls, Indian Restaurant” in 2008
and “You Deserve Better” campaign in 2009. Recently, M1 revitalise its walking on sun
shine campaign by introducing new TV commercial focus on a combination of its optic fibre
capabilities as well as several other solutions with a stint of fun-ness in it – “M1 Walking on
Sun Shine 2011”. Orange colour is specially highlighted to show its vibrant, fun, and
innovative approach while the last flash of sun and corporate logo at the end of the TVC
further enhance its positioning – “Here to light up your life. At home, business and
everywhere”.
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4.3 New Communication Platform
With the technology advancement leaping across the globe and psychographic changes such
as interest and lifestyle in consumers, M1 strived to connect to its customer through modern
social platforms – Facebook, the largest social network in the world with 750 million users.
With its customers‟ characteristic of vibrant, fun, energetic as well as with the increase usage
of internet by Singaporean, Facebook creates an opportunity for advertiser to engage close
with customers. M1 updates their status or release promotions way before print ads in order
to stir up public awareness and making their promotion plans more effective.
Also, M1 partner with Cathay Cineplexes which attracts 1.5 million of shoppers (mostly
youth) in a bid to broaden its share in the youth segment. Under the agreement, M1 will
acquire a strategic presence in Cathay Cineleisure Orchard, giving M1 naming rights to a
movie hall and brand exposure in several levels of the mall. In addition, M1 launched its
promotion with Cathay by offering 1-for-1 Sunday Movie treat at the Cineplex.
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5.0 Conclusion
While M1 has achieved significant milestone over the year, one of the M1‟s weaknesses is
the lacking of fixed-line services while both SingTel & StarHub own extensive cable
network. SingTel & StarHub managed to capture a larger market share by capitalising on
their pay TV segment – Mio & StarHub Cable Television. Both SingTel & StarHub bundle
its product together to create better offering while M1 can only leverage on its innovative
features.
Despite the lack of pay TV segment and inability to offer bundle services, M1 leverage on its
available resources and transform itself into one of the leading and preferred choice of brand
with the incorporation of IMC program – advertising, public relation, sales promotion, direct
marketing, sponsorship and interactive media.
The art and science of marketing communications has become increasingly significant
especially with the multiple channels for content to reach potential customers in the current
era. Many communication tools are made available by the marketing communication
function. Some competitors in an industry might rely on advertising media such as TV
commercial, newspapers and online media whereas others in the same industry might rely on
a very different media mix such as public relations and events. The innovator as well as the
first mover approach has made what M1 is today and it will continue to enhance its network
in order to provide greater customers experience through the inter-related promotional tools –
IMC.
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6.0 Reference
Bandler, J. (2005) “How Companies Pay TV Experts For On-Air Product Mentions”, The
Wall Street Journal, pp. A1, 12
Belch, G.E. & Belch, M.A (2009) Advertising and Promotion, 8th
Edition, McGraw-Hill
International Edition, pp. 458 -474
Craig, C.S. & Sternthal, B. (1973) “Humour in Advertising”, Journal of Marketing, pp. 12 –
18
Joyce, K.M. (2005) “Keeping the Faith”, Promo‟s 12th
Annual Source Book, p.24
Krugman, H.E. (1962) “On Application of Learning Theory to TV Copy Testing,” Public
Opinion Quarterly, pp. 626-39.
Sale, R. (1999) “Serving Up Sweeps”, Promo, pp. 70 – 78
Smith, O. (1989) “Many Conumers View Rebates as a Bother”, The Wall Street Journal, p.
B1
Weiner, M. (2005) “Marketing PR Revolution”, Communication World, pp. 1 – 5
Wilkie, M.J. & Farris, P.W. (1975) “Comparative Advertising: Problem and Potential”,
Journal of Marketing, pp.7 – 15
M1 Corporate Website, Retrieve on 1 July 2011
<http://www.m1.com.sg>
M1 Sponsorship for Netball Interschool Competition, Retrieve on 2nd
July 2011
<http://www.netball.org.sg/competitions/m1-school-challenge-league-2011>
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Appendix (Experience Paper)