MARKRESProposal-1

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ALCATEL LUCENTMarketing Proposal

Franco AligaenMhykl NievesJo Exel Rinon

Mayurie Twatwunnaphong


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Situational Analysis

1. Industry Profile/Analysis

1.1 Description of the IndustryFor as long as humans can trace, innovation has always been at the heart of evolution.It has allowed for new technologies to arise and as a result, things were made moreefficient for the benefit of humans. The companies involved in telecommunicationsindustry are one of the few forerunners of our world today. They have brought the worldcloser and has helped in the speed of industrialization of countries. In the Philippines, acountry where division of land is no stranger to us, telecommunications can bring ourdivided country together given the funds and the support that it needs.Telecommunication innovation is a vision of a unified progressive and productivePhilippine society.

The telecommunications industry specializes in innovating for clients that may needtheir services and the way their company communicates to be upgraded. Specifically,they specialize in innovating mobile technologies and telecommunication solutions forTelecom Network Operators so that no opportunity is lost and every opportunity that istaken on is maximized to its fullest extent. Apart from providing solutions for telecomcompanies, the companies in the industry also provide support for Public and PrivateOrganizations. To keep the consumers or the members of an organization of the clientssatisfied, these companies continually innovate new ways the clients can serve theirmarket. The services offered are Managed, Maintenance, Professional, and Consulting.Each service targets a specific problem that a client may need some addressing. Thesecompanies in this industry are responsible for the rapid and continual increase of themobile technology available to the public.

Today, the telecommunications industry is flourishing and is expected to grow evenlarger as our world becomes smaller through advancing technology. Businesses nowhave new ways of communicating to their consumers, private agencies now haveseamless communication within the organization, announcements and warnings arereadily available to the public, and ways to express oneself have increased. With thecurrent stock market high in the Philippines, new mobile technologies, and with the helpof investors will be available to the Philippine market. With increased investment on itsway, the Philippine telecommunications market will surely experience a rapid increasein internet connection strength, availability, and stability. Content providers will also beable to go outside the conventional forms of media outlets, from TVs to portable devices.


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1.2 Size of the Industry

There are approximately 92,337,852 people in the Philippines based on the 2010

census. The size of the Telecommunications industry can be determined in three ways.

It can be determined by the number of Telephone Lines there are in the country and theamount of Subscribers they have in the country, the number of Cellular mobile users

they have in the country, and the number of broadband subscribers they have in the

country.

The data below shows the number of Telephone Lines that had been or is currentlyinstalled in the country.

If we take the year that had the most Telephone lines installed (Year: 2008, 7,371,318telephone lines installed) the Industry, at this time installed telephone lines forapproximately 7.98% of the Philippiness entire population. Currently, that figure hasdecreased by 0.67% and is now at 7.31%.


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Based on subscribers and the data below:

The most the Philippines had as of now, was in the year 2008 with 4,076,140subscribers to telephone lines via cable (data without the cellular subscriptions). Out ofthe entire Philippines population, 4.41% subscribed to telephone communications.

For Cellular Mobile users, based on the data below:


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The size of the Philippine population was based on the 2010 census. We estimate thatthe population of the Philippines has probably increased to around 95-96 million. Sowith that in mind, approximately 98% of the entire population has subscribed to cellularcommunication.

For the number of subscribers the country has in broadband technology (internetconnection):

In 2003, 11.8% of the entire Philippine population was subscribed to broadbandtechnology. In 2011, that figure increased by 39.1% putting it up to 50.9% of thepopulation subscribed to broadband technology. If we take at look at the ratio ofsubscriptions between the years 2003 and 2011, we can see that a lot more peoplewould subscribe within a year as the years progressed. This meant that not only did thesubscriber rate go up, but the popularity and demand of the technology too.


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1.3 Growth and Decline Patterns of the Industry

In the Non-cellular side(Traditional Cable telephonesetc.) The industrys growthhas been fluctuating. Basedon the Telephone Linesinstalled diagram, from theyear 2001 - 2004, the industry

was experiencing a declinemeaning that there was lessneed for telephone lines to beinstalled at the time. Thissomehow correlates with thefigures in the Subscribers diagram because from 2001 - 2002, the amount ofsubscribers increased and the change in installed Telephone Lines was very minimal.Between 2002 and 2003 however, the increase in subscribers was extremely minimaland seemed to have a negative impact on the industry because less Telephone lineswere needed to be installed therefore causing the drop between 2003 and 2004 in boththe number of Subscribers as well as the number of Telephone lines. However,

between 2004-2006, the number of Telephones lines increased as well as the amountof subscribers. From 2006-2008, the industry experienced both a decrease and anincrease however, only for Telephone lines, for the subscribers, the figures increased.Conversely, from the year 2008, the industry was undergoing a decline, subscriber dataalso showcased that he industry did not receive as much or more subscribers but less.


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In the Cellular side (wirelesstelephones) of the industry, it hasbeen experiencing a somewhatstable growth based on the TotalCellular Subscribers diagram.

Having 84,619,980 inhabitants in2003 and 22,509,560 cellularsubscribers, the country wentfrom having 26.6% cellularsubscribers to a whopping 92.5%(Population: 101,833,900;Cellular Subscribers: 94,189,795).That is a 65.9% increase in lessthan 10 years (9 years).

In the broadband side of the industry, the growth was stable, gradually increasing everyyear. With the ratios between the years and the subscribers increasing, this meant that

more and more people found out,learned, and embraced the technologytherefor causing the rapid growth of ityearly.

1.4 Analysis of factors contributing to growth and decline

Being the one of the contributors in the service sector of the countrys GDP, it isinevitable that with regards to their big share in the GDP contributions, their growth willalso be persistent. With the amounts that they were contributing, it only meant that theindustry itself was growing. However, in the year 2009, the world experienced the GreatRecession. It manifested to be a liquidity crisis in the year 2007 which eventually turned

into a financial crisis. Nonetheless, Philippines still managed to have reported economicgrowth during this time hence the increasing growth figures seen in the previousdiagrams during these years. However, it did not mean that the country failed toexperience some of the economic impact of the recession, because the economy waspartially based on the remittance of overseas Filipino workers, most who worked incountries directly affected by the recession.


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1.5 Industry contribution to Philippine economic growth

There are three major sectors that contribute to the growth of the Philippine economy:Agriculture, Industry, and Services. These three major sectors grew throughout the1950s, 60s, and 70s but slowed during the unfortunate economic crisis that took place

in the 1980s through to the 1990s.

The diagram below shows the contribution of each major sector to the Philippineeconomy during the 1990s.

Agriculture contributed 12.9%,Industry, 35.3%, and Services51.9%. From the years 2001 to2006, the contribution to GDPgrowth were as follows:

Agriculture = 15.9%, Industry =

22.6%, and Services 61.5%. Wecan see from those figures thatthe contribution of Agricultureincreased while Industrys slippeddown by 12.7 but mostimportantly, services contributionincreased by 9.6% pushing it upto 61.5% in contribution. This

meant that compared to the other two major sectors, Services was doing well thuscontributing the most to the countrys GDP growth. Telecommunications is a subsectorof the services industry and was and still is partly responsible for the continuous growthof the countrys GDP. The servicessector constantly raising thePhilippine GDP rate, from 40.7% in1986 to 51.9% in the 1990s, and61.5% in 2006, implies that allsubsectors of the Services sector(including Telecommunications)had a positive effect and significantcontribution to the countryseconomic growth. More specifically,Telecommunications accounts for2.5% of the countrys GDP. Thatsapproximately around Php267,000,000 contributed yearly toeconomic growth.


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2. Corporate Profile and Analysis

2.1 Corporate History (Alcatel-Lucent)Beforehand, Alcatel-Lucent were two separate companies namely Lucent Technologiesand Alcatel. Both were already part of the telecommunications industry since the late

19th century. Today, these two companies have merged together to form what we nowknow as Alcatel-Lucent.

Known for breakthrough such as lightRadio, Alcatel-Lucent has proven that it canprovide solutions that are worthy of a market leader in mobile, fixed, IP opticstechnologies, and in applications and services. Breakthroughs like lightRadio, whichhas enabled companies to cut cost because of decreased power consumption but at thesame time, proving internet speeds that would normally be followed by high costs.Innovation is at the heart of Alcatel-Lucent, a brand of innovation that has led tosustainable, affordable, and accessible communication technology. Being a leadercomes with the experience of attaining that status, Alcatel-Lucent along with Bell Labshas given the world a brand of ideas that have revolutionized the industry.

2.2 Product Line and OfferingTo cater to the concerns regarding IPTV, Alcatel-Lucent offers services to remedycomplex problems that may arise throughout the life cycle of the product.

Professional Consulting:Alcatel-Lucent offers professional and valuable advice under the ProfessionalConsulting Services.

With post-implementation in mind, Altacel-Lucent takes the Local Network Service

Provider (LNSP) and gives them directions in the form of advice in Market Products,Technology Investments, and Network Operations. Consultation is crucial for LocalService Network Providers since IPTV is a relatively new technology, and theseProviders will need all the professional help they can get when problems or concernsarise.

Business Consulting:With new technologies at hand comes a new business model to go with that technology.IPTV carries great potential, but without a proper business model, it carries the risk offailure on the side of the Local Service Network Provider. Decisions regarding contentacquisition strategy, market entry, and service mix are all part of the IPTV business

model and Alcatel-Lucent would want to help as much as possible in the planning andthe execution of the business model.

With IPTV, there is a potential for gaining new customers that have caught interest inthe IPTV product. Apart from new customers, the average revenue per user has thepotential to increase given that the product is backed by innovative business plans.
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Definition/Description Alcatel-Lucent works with service providers on servicedefinitions/service evolution roadmaps to ensure that they deliver on customer, marketand competitive requirements.

Content Acquisition Strategy Alcatel-Lucent provides a review and comparison of

available content acquisition approaches, which includes content aggregators,consultants and recommendations for working direct with content providers.

Network Consulting:For IPTV to know what the Local Network Service Provider needs in terms of networkfeatures, capacity, and recovery, Alcatel-Lucent offers Network Consulting so that thecapacity of the network can be determined whether it can be shouldered or not by thenetwork. After the ability of the network has been evaluated, the corresponding videotechnologies are chosen and implemented.

Recommendations include a reference architecture with a partner ecosystem. Alcatel-Lucent also helps services providers quantify the abilities of the existing network (core,transport and access) to handle launching of IPTV services: network features, capacity,disaster recovery. This service also provides a migration plan for impacted infrastructurewith recommendations to mitigate gaps in critical areas. This service can detect andresolve network conditions that could lead to:

Video quality impairments like freezing, pixelization, and black screen. Exceeding utilization thresholds of links and network element. Packet loss, excessive packet delay and jitter.

Product Line Offering and Analysis

With IPTV being a relatively new technology, it can be seen that Alcatel-Lucent is doingwell in providing troubleshooting solutions for prospective Local Service NetworkProviders. Alcatel-Lucent bears upon itself the problems that these LNSP may face asthe product launches and during the post-release period of the product. It appears to bethat Alcatel-Lucent has a drive to be a reliable partner of LNSP when it comes to preand post implementation of IPTV. With these services, companies can easily trust

Alcatel-Lucent to be a safety net for launching new and innovative mobile solutions tothe public.

Operations Analysis and Optimization:Analyze the impact of the new services on the operational and business processes, the

support

However, this study is going to be focused on a product line that is not disclosed with itsconsumers. It is specifically going to tackle a specific product in the companys

Applications

2.3 Growth And Decline Patterns of the Company


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In order for us to know the growth and decline pattern of Alcatel-Lucent, we should lookat their yearly sales and income to determine if the company is gaining market share inits respective industry. Below shows the total sales of Alcatel-Lucent from 2007-2012.

For the Last 5 years of its operations, Alcatel-Lucents total sales range from 14 Billionup to 18 Billion Euros which indicates a very high amount for the company. For 2007,the company gained an estimate of 17.79 Billion Euros in revenues. However, it

decreased its sales to 16.98 Billion Euros at the end of the year 2008. It continued todecline in 2009 with a 15.16 Billion worth of sales. The following year was a good yearfor Alcatel because of a 16 Billion worth of revenues which ended the declining stage.Unfortunately, it declined again for year 2011 and 2012 with a 15.32 and 14.44 BillionEuros respectively.

With their billions of revenues every year, the company still operates at a loss becauseof their spending. For the year 2007, the company had gained a net loss of 3.52 BillionEuros. In 2008, Alcatel-Lucent reported a net loss of 5.22 Billion Euros. Fortunately, thecompany was able to reduce the net loss to 524 Million Euros for the year 2009. The netloss continued to decrease in the year 2010 with a 334 Million loss. And for the first time

in 5 years, the company reported a positive income for 2011 with a 1.095 Billion Eurosprofit with a 0.42 earning per share. Sadly, the company reported a net loss of 1.3Billion Euros for 2012 which triggered the step down of the CEO, Ben Varwaayen.

During 2012, reports say that according to the CEO of Alcatel-Lucent, they are planningto cut 500 million euros in cost for the said year. The company will cut 1,800 positions inEurope through firings and relocation.


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Overall, the performance of Alcatel-Lucent for the last 5 years had been poor becauseof the volatile progress in terms of profit. The job cuts also reflected that the companywants to lessen cost because of their big losses every year.

3. Product Profile and Analysis (IPTV)

3.1 Profile of the Product/brand which is the subject of the research plan

The IPTV is a service technology aimed at users who live life on-the-go. It is providedby Local Service Network Providers ie. Globe, Sun, Smart, Sky Cable, PLDT, and etc.The aim of this product is to bring the television experience right into the hands of theconsumer. Consumers will be able to enjoy their favourite television shows withoutbeing subject to sitting in front of a television set. In our ever-advancing society, mobileentertainment has opened the opportunity for Alcatel-Lucent to innovate the IPTVtechnology. Users will be able to customize their IPTV experience with their favouriteshows.

3.2 Marketing Mix Analyses for the Product/Brand

Product

Convenience is what the IPTV is all about. The focus is bringing what is supposed to bea sit-down activity into something the consumer can bring anywhere.

Price

Despite the fact that the product of IPTV has not yet been released in the Philippines,the group thinks that the pricing strategy should be the Market Penetration strategy.This would allow for the IPTV to be introduced to the market without scaring awaypotential customers because of the initial price. The actual value of the product shouldbe lower than the perceived value so that the LNSP can eventually increase actual pricein response to the projected perceived value.

Place

Since the product is in digital form, it will always be available to the public. What needsto be taken care of is the scope of the product when it comes to certain regions. ThePhilippines being an archipelago, may pose some difficulty for LNSP to ensure that thereach of IPTV goes far enough that the quality of the product is not compromiseddespite the distance from telecommunication towers.

Promotion

The Lifestyle execution style should be used for the promotion of the IPTV. It is meantthat the consumer must be convinced that possession of this new technology willenhance their lifestyles. Apart from the mainstream media that offers popular


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entertainment, niche markets will also be able to enjoy their favourite channels on thego. Television can now be portrayed as something that is portable and customizable incomparison the the immovable television set in our homes.

4. Competitor Profile and Analyses

4.1 Corporate Profile of each Competitor

Nokia Siemens

One of the leading telecommunications solutions provider in the world. Nokia Siemensaims to enable their clients(Telecommunication companies) to have an efficient mobiletechnology for them to satisfy their end users. Their expertise is to invent newcapabilities in order to improve and maintain the high standards of mobile broad bandsof theirclients. They provide the worlds most efficient mobile networks, the intelligenceto maximize the value of those networks, and the services to make it all work together

seamlessly.

Long before it was called Nokia Siemens, It was two separate companies namely Nokiaof Finland and Siemens of Germany. Nokia, a cellphone brand, and Siemens being aprovider and innovator of Household Appliances. The joint company was established inJune 19, 2006 and began its operations in April 1, 2007. Their headquarters are inEspoo, Greater Helsinki, Finland. It is now operating in 150 countries all around theworld. Similar to Alcatel-Lucent, they offer many products that enhance mobileconnections for their customers and also provide services for sustainability. They have16 categories that distinguish the use of their products namely Business SupportSystem, Convergence/IMS, Customer Experience Management, Dedicated Networks,

Evolved Packet Core, IP Partner Products, Microwave Transport, Mobile Broadband,Operation Supports Systems, Service Enablement, Small Cells, Transport Networks.

EricssonEricsson is the number one provider of telecommunications equipment and services tomobile and fixed network operators. More than 1,000 networks in 180 countries andmore use Ericssons network equipment, and more than 40 percent of the worldsmobile traffic goes through Ericsson networks.

In the Philippines, Ericsson has helped shape the Philippine telecommunication

landscape since 1988 when the company was set in Manila for its operations. EricssonTelecommunication, Inc. is a local subsidiary of Ericsson Telefonaktiebolaget LMEricsson (LME), with headquarter in Stockholm, Sweden. Ericssons earliest projects inthe Philippines were for the supply, design and implementation of Smarts TACSnetwork, Smarts LEC network and Suns Cellulars LEC network. Also, Ericsson was amajor partner for PLDTs Zero Banking Program. Today, Ericsson is still the latesttelecommunication solutions in the Philippines.


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Huawei

Huawei is one of the Global ICT solutions provider.Through their dedication tocustomer-centric innovation and strong partnerships, they have established end-to-endcapabilities and strengths across the carrier networks, enterprise, consumer, and cloudcomputing fields. They are committed to creating maximum value for telecom carriers,enterprises and consumers by providing competitive ICT solutions and services. Theirproducts and solutions have been deployed in over 140 countries, serving more thanone third of the world's population.

Huawei's vision is to enrich life through communication. By leveraging their experienceand expertise in the ICT sector, they help bridge the digital divide by providingopportunities to enjoy broadband services, regardless of geographic location.Contributing to the sustainable development of society, the economy, and theenvironment, Huawei creates green solutions that enable customers to reduce power

consumption, carbon emissions, and resource costs.

Indirect Competitors

Cisco

20 years of commitment to innovating technology, Cisco has developed as a result theInternet Protocol (IP)-based networking technologies. Found in 1984, Cisco has prided

itself in developing industry-leading products despite its small beginning in StanfordUniversity in 1984. Core technologies such as home networking, IP telephony, opticalnetworking, security, storage area networking, and wireless technology are provided byCisco through two means: direct sales force and channel partners

In addition to providing innovative technologies for companies, Cisco also through itssales force for large enterprises, commercial businesses, service providers, andconsumers.

As a result of providing for the technological needs of clients, Cisco also with itsexperience offers service offerings that includes technical support and advancedservices, giving individuals, private and public entities easy access to information.

HP

HP(Hewlett-Packard) is a leading global provider of products, technologies, software,solutions and services to individual consumers, small- and medium-sized businesses(SMBs) and large enterprises, including customers in the government, health andeducation sectors. Their offerings include:


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personal computing and other access devices;

multi-vendor customer services, including infrastructure technology and businessprocessoutsourcing, technology support and maintenance, application development and

support servicesand consulting and integration services;

imaging and printing-related products and services; and

enterprise information technology infrastructure, including enterprise server andstoragetechnology, networking products and solutions, information technology (IT)managementsoftware, information management solutions and security intelligence/risk managementsolutions.

HP was incorporated in 1947 under the laws of the State of California as the successorto a partnership founded in 1939 by William R. Hewlett and David Packard. Effective inMay 1998, they changed their state of incorporation from California to Delaware.

4.2 Marketing Mix Analysis for each competitor

Nokia Siemens (IPTV Business bought by Accenture)

Product

Nokia Siemens IPTV is an innovation of Television Entertainment. It is an applicationsuite that delivers channels through internet protocols and streams it in multipleplatforms. With IPTV, viewers can watch whatever channel they want, whenever theywant, and wherever they are. IPTV offers live television, time-shifted Television, andVideo on Demand so that their consumers will be flexible with the time they want towatch TV.

Price

For the pricing strategy, skimming pricing is used by Nokia Siemens in selling IPTV.Since it is an innovation, this strategy helps the price to more flexible on the responseof customers to the product. If the customers will not buy the initial price, the companycan decide to lower down the price.

PlaceSince IPTV is digital, the place of distribution is not a problem to the company.

Promotion


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Ericsson

Product

Ericsson provides a pre-integrated, end-to-end solution for the IPTV delivery. The IPTVdelivery enables the best-in-class TV and VOD while preparing the way for theIndividual TV Experience, which is the next generation of TV that emphasizespersonalized and connected entertainment experiences.The IPTV Solution of Ericssoncombines core Ericsson includes middleware, video processing, video-on-demandback-office solutions, asset management and media servers of on-demand content anddistribution, CA/DRM, QoS monitoring, TV applications, IPTV Home Environment andopen interfaces for charging, provisioning and operation and maintenance. The corecomponent of the Ericsson IPTV Solution is the IPTV Middleware, which is the worldsfirst commercially available IPTV middleware that is integrated with IMS.

Price

Ericsson knows that pricing will always remain a key selection criteria from a customersviewpoint. However, the price alone does not guarantee the success, if the overallofferings, such as choice of channels, quality of service and premium services, do notmeet the customers expectations.

Place

Promotion

Huwawei

ProductThe challenges of the IPTV service imposes a higher demand on QoS, reliability,security, and convenience. The existing IP bearer networks are majority built and reliedon best-effort and open principles. Because of this, there are a lot of problems found inthe IPTV service is directly born in existing networks. Huawei service solution on thisproblem is the Huawei IPTV Integration Solution which provides customers the IPTVbearer network assessment, IPTV planning integration, D2C (Day2Care), and networkbearing audit in all stages. The services mentioned can help the problems concerningthe IPTV development to store, schedule , forward, and play multimedia contents,reducing consumption of server and bandwidth resources and improve service quality.

Price

Place

Promotion

Indirect Competitors


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Cisco

ProductTo access media anywhere, anytime, on any device requires a medianet, which is anend-to-end IP network optimized for rich-media services. This medianet provides anIPTV platform that is network-aware, media-aware, and device-aware to deliver morepersonal, social, and interactive media experiences.

Cisco offers the IPTV Headend which differentiates video offerings with acomprehensive solution for acquiring, processing, encoding, and managing videoservices. The

Price

Place

Promotion

HP

Product

HP IPTV is a standard-based video-over IP platform that enables service providers todeploy video that is high quality and delivers service that enables subscribers to watchlive broadcasts or on-demand video content at any place, time, and in whatever waywanted. HP IPTV Solutions is enabled by high-performance HP ProLiant servers andHP Integrated Service Management solutions. The range of services help organizations

design, architect, test and implement complex IPTV environments. There are more than400 service providers that use HP OpenView software.

Price

Place

Promotion

5. Target Market Profile/ Analyses

Alcatel-Lucents target market is primarily composed of companies instead of people.Companies like PLDT, Sky Cable, Globe, Sun, Smart, Digitel, and companies of the likeare a part of Alcatel-Lucents target market. They are the companies that benefit themost from the innovative technologies and solutions provided by Alcatel-Lucent.

Corporate Information on the following companies:


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PLDT

The Philippine Long Distance Telephone Company, Parent Company or commonly

known as PLDT, was incorporated under the old Corporation Law of the Philippines (Act

1459, as amended) on November 28, 1928, following the merger of four telephone

companies under common U.S. ownership. Under its amended Articles of Incorporation,PLDTs corporate term is currently limited through 2028. In 1967, effective control of

PLDT was sold by the General Telephone and Electronics Corporation, then a major

shareholder since PLDTs incorporation, to a group of Filipino businessmen. In 1981, in

furtherance of the then existing policy of the Philippine government to integrate the

Philippine telecommunications industry, PLDT purchased substantially all of the assets

and liabilities of the Republic Telephone Company, which at that time was the second

largest telephone company in the Philippines.

Globe Telecom

Globe Telecom, Inc. is a stock corporation organized under the laws the Philippines,

and enfranchised under Republic Act 7229 and its related laws to render any and all

types of domestic and international telecommunication services. Globe Telecom is one

of the leading providers of digital wireless communication services in the Philippines

under the Globe Handyphone (GHP), Touch Mobile, and Tattoo brands using a fully

digital network. It also offers long distance communication or carrier services

domestically and internationally. The company is listed in the Philippine Stock Exchange,

and has been included in the PSE composite index since September 17, 2001. Major

stockholders of Globe Telecom include Ayala Corporation, Singapore Telecom Inc., and

Asiacom Philippines, Inc. None of these companies exercise control over Globe

Telecom.

DIGITEL

Digital Mobile Philippines, Inc. (DIGITEL) was registered with the Security andExchange Commission on September 18, 2001. The company was incorporated in thePhilippines on August 31, 1987. The company is one of the largest providers of workingwirelines in the Philippines. DIGITEL was owned by JG Summit Holdings Incorporated,one of the Philippines most diversified conglomerates. DIGITEL telephone lines are

open for use in 281 towns and cities throughout Luzon through 694 regional and localexchanges. The company offers a wide range of service innovations for mobiletelephony from voice, messaging and international roaming services, to wirelessbroadband and value-added services for consumers and businesses alike.

SMARTSMART Communications is a wholly owned mobile phone and Internet servicesubsidiary of the Philippine Long Distance Telephone Company. Smart was organized


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by a group of Filipino investors on January 24, 1991. The company acquired itscongressional franchise on April 1992 and was granted provisional authority to operatea mobile cellular service on May 1993. Smart then commenced its cellular servicecommercial operations on December 1993. Ever since 1999, SMART has introducedworld-first wireless data services such as Smart Money, Smart Load, and Smart Padala.

Analysis

Because all of the companies mentioned above are telecommunication servicecompanies, which are among the best of the best of the country which is widely used inthe Philippines, the main devices and products of these companies will benefit mostfrom the IPTV as being a portable and on-the-go product.

5.1 Demographics

5.2 Psychographics

Review Of Related Literature

The review of related literature for this study focuses on how the IPTV can be properlydeveloped to ensure that market penetration and secure a place in the mobiletechnology market. This review focuses on some concepts taken from the course ofMARKET1 and aptly applying it to the research and how these concepts relate to eachother and the product.

Boston Consultancy Group Matrix

The IPTV falls under the Cash Cow category in the BGC Matrix. The reason being isthat one, it is a consumer convenience good. Under this category, it is expected of theproduct to produce relatively high volumes of cash and profits. Since IPTV is a digitalproduct, the investments should be kept relatively low. It is expected that the IPTV willbecome a consumer convenience product because of its electronic nature.

Advertising Life Cycle

Being a new development in mobile technology, it would be within reason to place theIPTV under the Introductory Stage of the Advertising Life Cycle. The advertisingneeds to reach the consumer in such a way that he sees himself with the product andimagines the product to be part of his itinerary. On the part of IPTV, the declaration of anew innovation will always guarantee to create some sort of interest, so it is importantthat the language used will be relevant to the target market so that the potentialcustomers wont be driven away, but be rather drawn to the product.

Product Life Cycle


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New products that are introduced in the market will more often than not, incur some loss.For the IPTV to be a successful product, a lot of money must be put into advertising andpromotion, while production and distribution bring down the cash value even more. Inthe Introduction Stage of the Product Life Cycle, it is expected that the product will

incure some negative figures before it starts to grow and get those figures back.

Maslows Hierarchy of Needs

Maslows Hierarchy of Needs summarizes human nature and impulse. For IPTV, theproduct is classified under the Self-Esteem category as IPTV provides that need to be aunique individual with personal tastes, likes, and dislikes. The customization feature ofthe IPTV can be attributed to this concept since some people would like to identifythemselves as individuals by the content they watch. This is especially relevant amongniche markets.

Breakthrough Opportunities

Breakthrough Opportunitiesis defined as opportunities that help innovtors develophard-to-copy marketing strategies that will be very profitable for a very long time. Thisis most especially relevant to the industry handling IPTV. Once a LNSP grabs hold ofthe market for this technology, the competition may prove to be difficult to deal with.Since people are very connected nowadays, the IPTV will provide a good opportunityfor Alcatel-Lucent to increase the average revenue per user (ARPU).


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ReferencesAlcatel-Lucent (2006). SD Services for IPTV. [ONLINE] Available at: Alcatel-

lucent. In Retrieved fromhttp://www.google.com.ph/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved=0CDAQFjAA&url=http://www.alcatel-lucent.com/wps/DocumentStreamerServlet?LMSG_CABINET=Docs_and_Resource_Ctr&LMSG_CONTENT_FILE=Brochures/SD-

Services_for_IPTV.pdf&lu_lang_code=en_WW&ei=nokjUf6iJov8rAfB5oDgCA&usg=AFQjCNErhmMgxTi7IHqpDoiYsun7gsD_dQ&sig2=awoXcrnVYdxYA2pVtdZnFg&bvm=bv.42553238,d.bmk. [Last Accessed 19 February 13].

Alcatel-Lucent (2007).Alcatel-Lucent reports fourth quarter and full year 2007 results

Book

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