Sun cellular 10 step marketing plan

The 10 Step Marketing Plan for Sun Cellular

Francis Benson C. HugoAteneo Graduate School of Business

francishugo.blogspot.com

This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class.

The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.

When appropriate, data are “masked” so as not to create unexpected conflicts.

The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.

Disclaimer


Sun Cellular offers the latest in GSM technology, providing voice services (local, national, international calling), messaging services (short text or multimedia messaging), outbound and inbound international roaming, broadband wireless technology, and value-added services such as Mobile Internet, and up-to-date downloadable contents like ringtones, dial tunes, picture messages, and logos.

Company Profile


1. Sun’s PTM are teens (10-21) and the working class (22-59)

2. Who want to feel always connected to their family, friends and preferred sex.

3. Can choose Smart & Globe4. Gap is focus on prepaid and postpaid

services. Mobile broadband market (WAP, GPRS, MMS) and users using 3G and HSPA need to be developed and tapped as well

5. Market size is 86.4M subscribers, Sun’s niche is 15.2M (18%)

Steps 1 to 5

Summary headline of Sun’s PTM and market


6. Sun Postpaid, Prepaid, Broadband and International services

7. Affordable8. Uses all forms of media, internet

and print ads 9. Is distributed nationwide10. Generic Strategy is Niche

Steps 6 to 10

Summary of Sun’s marketing mix & strategy


1. Sun lights the way of both young and adult Filipinos

Demographics: teens and working class Male or female, single or married, belongs to

whatever social class Lifestyle: on-the-go: those who love to have 24/7 call

and text messaging to family, wide network of friends and preferred sex

Students (high school, college, grad, med and law) Professionals (CEOs, lawyers, doctors, etc.) Employed or self-employed, businessmen,

investors Behavior: Filipinos consume most of their time texting

and calling- whoever, wherever and whenever; always ensure their cell phone has a load


2. Sun’s PTM needs

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Esteem Needs (Recognition, Status)

Social Needs (sense of belonging, love)

Safety Needs (security, protection)

Physiological needs (food, water, shelter)

Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

I want to be loved


I am happy if I’m always connected

2. Teens and the working class have basically the same needs

Teens and the working class people need to belong, to be loved, and self-actualization

Teens and working class people prefer Sun cellular over other telecommunication providers because of cheap call & text rates, excellent customer service and the brand’s promise of 24/7 unlimited connection with loved ones

Teens and working class sector demandcheap means of communication, excellent customer service, and the feeling of security to be always connected to other people


3a. Sun has two gigantic direct competitors

“The Power to Lead”

“Abot mo ang mundo.”


3a. Other indirect competitors Indirect:


InternetEmail

Snail Mail

TelephonePersonal/face-to-face communication

3a. Principal bases of competition Variables:

Price

Coverage

Quality of service support

Speed of network access

Availability of calling features

Value-for-money products & services


Competitive Position Map for Telecom providers

Price/ Age Matrix

10-21 yrs 22-59 yrs 50yrs up

High price

Low Price

Globe

Smart

Smart

Sun Sun

Price vs. Age Matrix as of 2010

Sun

Globe

Smart


Globe

Benefit positioning vs. brand map for telecommunications provider

Benefit Positioning vs. Brand Matrix

Functional BenefitGlobe

PostpaidGlobe

Prepaid

Globe Broadband

Sun Postpaid

Sun Prepaid

Sun Broadband

Smart Postpaid

Smart Prepaid

Smart Broadband

Flexibility to choose FREE phoneChoice of way to spendReliable Unlimited service (call & text)Unlimited mobile surfingInternet browsingAffordableSaves money/ offers cheapest rateValidity of load extensionSending load to friends/loved ones


4. Gap between Sun customers and competition

Where is the marketing opportunity?boost and develop mobile broadband networks and other value-added services

What NWDs are not being addressed?mobile broadband, improvement of current 3G and HSPA

What can be the unique selling proposition for the new product (totally new or repositioned.)Longer talking time for its 24/7 unlimited call and text, lower call and text rates


5a. Estimation of market size using competitor data: Smart

1. Sales of Smart from PLDT 2010 Annual Report (source: PLDT website) Total Sales (service revenues from its

Wireless business) – P 95B % of sales from multi-product:

95B revenues from wireless segment / 144B consolidated revenues = 65.89%

2. As of December 2010, it has 45.6M subscribers (Smart website)

3. 45.6M / 86.4M subscribers = 53% market share


5b. Estimation of market size using Sun’s data

1. Claimed market share: 18%2. Guesstimate on market share

Fair share of market: 15.2M subscribers (August 2010) Distribution extent

The company makes its Prepaid Services available through its thousands of:

Xpressload retailers, Distributors and The Sun Shop outlets

Postpaid Services are provided to individuals, families, small and medium enterprises, and local companies

3. Historical sales (Digitel’s wireless service segment based on its 2010 Annual Report) :

2008 – P 7B 2009 – P 10B 2010 – P 13B


5c. Estimation of market size using customer data: Philippine Demographic Population


Source: NSO66.291M out of 94.013M or 71% of the total population

1. Usage per day or per year Per person (ages 10-59)

66.291M x P25 ave. load per day = P1.657B P1.657B daily x 365 days = P 604.9B

Per household Average persons in a household = 4 (source:

NSO) P1.657B / 4 = P414M per household per day P414M x 365 days = P151B per year


5c. Estimation of market size using customer data: Philippine Demographic Population

5. Market size in pesos, based on year 2010 data

1. Competitor (Smart) data= 95B sales in 2010 / 53% market share = P179B

2. Company (Sun) data = 13B sales in 2010 / 18% market share = P 72B

3. Customer Usage (2010 projected Phil. Population) data = P604.9B

market size = P604BNote: a person can subscribe to more than 1 network provider


6a. Prepaid SIM Cards on the market


Globe Prepaid SIM

Smart Prepaid SIM

Sun Prepaid SIM

6a. Sun’s Regular Prepaid Cards


6a. Prepaid Cards of Competitors


6a. Show how Sun product looks vs. competition


Sun products displayed in The Sun Shop @ Shangri-La Mall

Indirect competitors

Direct competitor

6b. Sun Product Description

Describe the physical features, specifications, attributes of the product.

Info may be in product packaging, label, brochures or website.


6b. Sun Product Description

Prepaid Products


Call and Text RatesGlobe

Prepaid RateSun Prepaid

Rate

Smart Prepaid

RateVoice Rates (per minute) Network to same network P 6.50 P 5.50 P 6.50 Network to other networks P 7.50 P 6.50 P 7.50 Network to landline P 7.50 P 6.50 P 7.50Text Messages Network to same network P 1.00 P 0.50 P 1.00 Network to other networks P 1.00 P 1.00 P 1.00


Comparison of Call and Text Rates

7. Price

Pricing strategy used: Penetration pricing


Comparison of Prepaid Call & Text Cards

7. Price

Sun offers more free texts

8a. Modes of communication that Sun uses** ranking, 1-highest use


1

2

3

8a. Sun’s TV commercials


Underscores its “UNLIMITED” brand equity always, in a very affordable price

8a. Sun’s latest Promos from its website


Hot deals offered



Ideal for families with OFWs

Call abroad for only P2/min with Sun P20 for 10 service!

Todo IDD now has lower rates to more countries!

8a. Sun’s latest Promos from flyers/print ads


Thru testimonials of other people



Thru offering affordable deals



Affordable and reasonable postpaid plans



Thru communicating its UNLIMITED packages in every product/service



It also shows that it has products suited for the upper working class

Sun’s website

It shows the awards received by the Company in spite of being a relatively new player in the industry


8b. Globe website


Communicates the idea of the customer as being the king- he can do whatever he wants, in his way

8b. Globe latest TV commercial


Communicates the idea of the customer as being the king- he can do whatever he wants, in his way

8b. Globe promos


More than 200,000 apps

Hottest Android devices

Mobile Internet Plans

8b. Globe promos

Promo is exclusive to Globe Prepaid subscribers.

Additional services


8b. Globe promos


Additional services

8b. Globe promos

Additional services


8b. Smart website


Shows that the company has many things to offer

8b. Smart TV commercial


Shows that its PTM are mostly high end consumers

8b. Smart promotions from Ads

Sponsorships


8b. Smart promotions


Sponsorships

8b. Smart promotions


8b. Why Sun’s communication stands out


Consistent theme in every mode of communication used : UNLIMITED

TV commercial

Company website

8b. Why Sun’s communication stands out


Appealing to the masses : affordable packages

TV commercial

Company website

9. Place

Where are Sun products available? The company makes its Prepaid

Services available through its thousands of:

Xpressload retailers, The Sun Shop outlets Distributors and retail outlets

nationwide Postpaid Services are provided to

individuals, families, small and medium enterprises, and local companiesfrancishugo.blogspot.com

The Sun Shop at SM Megamall


Globe Store at SM Megamall


10. Sun’s generic winning strategy

Which of the 4 strategies are being used? (bold and underline to most dominant strategy) Low Cost Producer Supply and Distribution Leverage Differentiation Niche


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SUMMARY


1. Sun’s PTM are teens (10-21) and the working class (22-59)

2. Who want to feel always connected to their family, friends and preferred sex.

3. Can choose Smart & Globe4. Gap is focus on prepaid and postpaid

services. Mobile broadband market (WAP, GPRS, MMS) and users using 3G and HSPA need to be developed and tapped as well

5. Market size is 86.4M subscribers, Sun’s niche is 15.2M (18%)

Steps 1 to 5

Summary headline of Sun’s PTM and market


6. Sun Postpaid, Prepaid, Broadband and International services

7. Affordable8. Uses all forms of media, internet

and print ads 9. Is distributed nationwide10. Generic Strategy is Niche

Steps 6 to 10

Summary of Sun’s marketing mix & strategy


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10 STEP Marketing Plan for Sun Cellular

Francis Benson C. HugoMay 2011


Sun cellular 10 step marketing plan

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