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PICS
Table of Contents
I. Marketing Background
Intro
A. Overview of the Industry
Organizational Chart of the Telecommunications Industry in the Philippines
Source : Datamonitor
Global M obile Phone I ndustry
The following tables will show the global market value from 2001 u p to 2005
TelecommunicationsIndustry
Landlines Mobile Phones
Analog
1G
Digital
2G
3G
Internet Trunk Radio
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Based on the data from Datamonitor, the global mobile phones market grew by 20.1% in
2005 Furthermore, the compound annual growth rate of the market volume during the period
of 2001-2005 was ...
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Here, it can be seen that the global mobile phones market grew by 13.7% in 2005
reaching a value of
The following pie chart shows a market segmentation of the different regions included in
the g lobal market for mobile phones
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Based on the study conducted by Datamonitor, the Asia-Pacific region has the highest
percentage of market share by value for mobile phones accounting for 42.0%. Second is Europe
which accounts
Mobile phone market shares
Vendor Q2 2005 Q3 2005 Q4 2005 2005 Q1 2006 Q2 2006
32.5% 31.7% 34.1% 32.4% 33.3% 33.3%
18.1% 18.4% 18.2% 17.9% 20.4% 22.1%
13.0% 12.8% 11.1% 12.6% 12.8% 11.2%
6.3% 6.6% 6.6% 6.3% 5.9% 6.7%
6.5% 7.4% 6.6% 6.7% 6.9% 6.5%
Fractionof the
remaining23.6%
Fractionof the
remaining23.2%
Fractionof the
remaining23.5%
Fractionof the
remaining24.1%
Fractionof the
remaining20.6%
Fractionof the
remaining20.3%
Fractionof the
remaining23.6%
Fractionof the
remaining23.2%
Fractionof the
remaining23.5%
Fractionof the
remaining24.1%
Fractionof the
remaining20.6%
Fractionof the
remaining20.3%
Fractionof the
remaining
23.6%
Fractionof the
remaining
23.2%
Fractionof the
remaining
23.5%
Fractionof the
remaining
24.1%
Fractionof the
remaining
20.6%
Fractionof the
remaining
20.3% Fraction
of theremaining
23.6%
Fractionof the
remaining23.2%
Fractionof the
remaining23.5%
Fractionof the
remaining24.1%
Fractionof the
remaining20.6%
Fractionof the
remaining20.3%
Fractionof the
remaining23.6%
Fractionof the
remaining23.2%
Fractionof the
remaining23.5%
Fractionof the
remaining24.1%
Fractionof the
remaining20.6%
Fractionof the
remaining20.3%
Total Market Share 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Source: Strategy Analytics
Nokia still continues to be the global market leader in mobile phones despite the increase
in the market shares of other major competitors such as Motorola and Sony Ericsson. Motorola
today remains to be the second largest mobile phone company in the worl d with a
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Asia-Pacif ic M obil e Phone I ndustry
The emerging economy of majority of the Asian countries accounts for the rapid increase
in the regions global market share for mobile phones since many of the consumers here are first-
time mobile phone buyer s
In 2005, the Asia-Pacific mobile phones market grew by 33.2% reaching a value of $24.8 billion
and the compound annual growth rate from 2001 up to 2005 was 10.6%...
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Regarding mobile phone models, the mobile phones market in Asia-Pacific grew
by 43.3% in 2005
T
Phil ippine Mobile Phone In dustry
1. Market Size
The Philippine mobile phone industry is estimated to have 35 million mobile phone
subscribers by the end of 2005
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Majority of the Philippine mobile phone subscribers fall under the category of prepaid
subscribers
NO. OF CELLULAR MOBILE TELEPHONE SUBSCRIBERS 2005
OPERATORS YEARS2002 2003 2004 2005
SMART 6,825,686 10,080,112 14,595,782 15,424,196GLOBE 6,572,185 ** 8,800,000 ** 12,513,973 ** 12,500,000PILTEL 1,773,620 2,867,085 4,612,450 4,984,425DIGITEL not operational 732,467 1,200,000 1,860,000EXTELCOM 29,896 * 29,896 13,670 10,374ISLACOM 181,614 - - not operational
BAYANTEL not operational not operational not operational not operationalTOTAL 15,383,001 22,509,560 32,935,875 34,778,995
POPULATION 79,476,271 81,054,329 82,652,033 84,214,778CMTS DENSITY 19.36 27.77 39.85 41.30
Population Source: NSCB** Globe & Islacom subscribers combined under Globe;
No report submitted; based on old report.
Source: NTC
The following table on the other hand shows the market structure of the mobile phone
industry in terms of its distribution in various markets namely...
MARKET STRUCTURE
2003 2004 2005 2006
Total Market Size: 6.7 11.5 4.6 9.2
Legitimate Market (New) 50% 52% 55% 56%
Grey Market 25% 20% 15% 12%
2n Hand Mobile 25% 28% 30% 32%
Source: Philips Company Report
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2. Market Value
a. Mobile Telephone Retail Volume
Source: Euromonitor
b. Mobile Telephones Retail Value
3. Market Growth Rate
0
5000
10000
15000
2000 2001 2002 2003 2004 2005
5030
5966.136590.38
9690.76 10003.42
10775.39
I n M i l l i o n s
Year
Mobile Telephones Retail Volume - in '000 Units
Mobile Telephones Retail Value in Millions
161630.88
150051.3
145361.4
98855.7
89491.95
75400
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
2000 2001 2002 2003 2004 2005
Year
P h p
Source: Euromonitor
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Source: Philips
4. Market Trend (in the last 3 years)
As mobile phone usage increased over time, the use of fixed telephone lines to make
outgoing calls conti nued to fall
Figure 1: National and International Phone Calls, Telephone Lines in Use and Mobile PhoneUsers: 1990/1995/2000-2003
Million 1990 1995 2000 2001 2002 2003International outgoing telephonecall (million minutes)
107 180 136 163 171 186
National telephone calls (millionminutes)
257 1,205 3,255 2,756 2,181 2,116
TOTAL 364 1,385 3,391 2,919 2,352 2,302Telephone lines in use (000) 610 1,410 3,061 3,315 3,311 3,381Mobile telephone users (000) 26 494 6,454 12,159 15,201 20,474Source: National statistical offices, International Telecommunications Union, World Bank, Trade sources, EuromonitorInternational
0
10
20
30
40
50
2003 2004 2005 2006
23.2
32.6 3541.5
i n m
i l l i o n s
Year
Mobile Phone Subcribers 2006 Forecast
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Figure 2: National and International Phone Calls, Telephone Lines in Use and Mobile PhoneUsers (Growth): 1990-2003/2000-2003
% Change 1990-2003 2000-2003International outgoingtelephone calls
73.82 36.55
National telephone calls 721.93 -35.01TOTAL 531.62 -32.13Telephone lines in use 454.15 10.46Mobile telephone users 79,565.51 217.23Source: National statistical offices, International Telecommunications Union, World Bank, Trade sources, EuromonitorInternational
The following table provides a forecast of how this trend will continue until the year 2015
Figure 3: Forecast National and International Phone Calls, Telephone Lines in Use and MobilePhone Users: 2004-2005/2010/2015
Million 2004 2005 2010 2015International outgoing telephone calls(million minutes)
201
National telephone calls (millionminutes)
1,956
TOTAL 2,157 Telephone lines in use ('000) 3,414 Mobile telephone users ('000) 25,062 28,587 36,606 40,820Source: National statistical offices, International Telecommunications Union, World Bank, Trade sources, EuromonitorInternational
The following table on the other hand provides information on how much Filipinos spend for
communications as compared t o other consumer expenditures
Consumer Expenditure by Purpose: 1990-2015Ps million 1990 1995 2000 2005 2010 2015Food and non-alcoholic
beverages293,607 541,604 896,164 1,215,415 1,343,614 1,590,772
Alcoholic beverages andtabacco
13,656 25,191 41,682 52,491 58,706 64,772
Clothing and footwear 25,061 42,347 63,045 88,882 104,429 122,704Housing 162,356 299,492 495,553 730,021 784,109 904,239Household goods andservices
37,934 69,975 115,783 159,749 173,416 193,523
Health goods and medicalservices
14,415 26,590 43,998 50,880 57,312 66,475
Transport 51,590 95,166 157,466 255,158 279,999 318,090
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Communications 3,811 7,849 19,343 27,397 31,612 35,176Leisure and recreation 3,793 6,997 11,578 15,208 16,630 18,108Education 31,864 58,779 97,258 125,012 143,490 173,937Hotels and catering 37,934 69,975 115,783 168,641 193,116 230,987Misc goods and services 91,041 167,939 277,880 358,692 380,586 426,652
Misc goods and services 91,041 167,939 277,880 358,692 380,586 426,652TOTAL 767,061 1,411,904 2,335,535 3,247,546 3,567,017 4,145,434Source:National statistical offices, OECD, Eurostat, Euromonitor International
B. Envir onmental Analysis
1. STEP Analysis
Socio-Cultural Demographics Technological Information Fast-paced society creates the need forreal-time demands and results
People aged 25-29 are in the career- building stage of their lives while peopleaged 30-34 feel the need to connect withmore of the world around them
Shift from analog to digital system Integration with other communications andmultimedia devices and formats
Constant research and development to suitchanging lifestyle
Economic Political-Legal Mobile phones shift from being a luxury
good to a necessity Mobile phones become a substitute good
for landlines People aged 30-34 have the adequate
disposable income but concerns aregeared towards family life
National Telecommunications Commission(NTC)
Department of Trade and Industry (DTI) Bureau of Trade Regulation and Consumer
Protection (BTRCP)
Socio-Cultural Demographics
F ast-paced society creates the need f or real-time demands and resul ts
People today live in a fast-paced society wherein everything is
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People aged 25-29 are in the career-buil din g stage of their l ives
The number of young adults and their percentage in the total population is seen below
Young Adults: 1990-2015
'000 1990 1995 2000 2005 2010 2015
Male 8,792 9,712 10,664 11,662 12,685 13,422Female 8,818 9,707 10,602 11,551 12,559 13,390TOTAL 17,611 19,419 21,265 23,213 25,244 26,811As % of total population 28.92 28.30 27.80 27.55 27.57 27.35
Source: Euromonitor
People Aged 30-34 Feel the Need to Connect with more of th e World ar oun d Them
DISCUSS
Technological Information
Shif t from Analog to Digi tal System
DISCUSS
I ntegration wi th other Communi cations and M ul timedia Devices and For mats
DISCUSS
Constant Research an d Development Suit ChangingLifestyle
DISCUSS
Economics
M obile Phones Shif t f rom B ein g a Lu xur y Good to a Necessity
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Source: Euromonitor
M obile Phones Become Substi tute Good for L andlines
Source: Euromonitor
People Aged 30-34 have the Adequate Disposable I ncome but Concerns are geared towards
Famil y L if e
DISCUSS
Political-Legal
(NTC )National Telecommun ications Commission
0
20000
40000
1990 1995 2000 2005 2010 2015
3811 784919343
2738731612
35176
Ps Million
Year
Consumer Expenditure by Purpose (1990-2015) onCommunications
6101,410
3,061 3,315 3,311 3,381 3,414
0
26 4946,454
12,15915,201
20,474
25,06228,587
05000
1000015000200002500030000
1990 1995 2000 2001 2002 2003 2004 f 2005 f
i n M i l l i o n s
Year
Telephone Lines in Use and Mobile Phone Users
Telephone Lines in Use
Mobile Phones in Use
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Department of Trade and Industry (DTI )
DISCUSS
Bu reau of T rade Regulation and Consumer Protection (BT RCP)
The followin g table shows the bureaus three function divisions and their
responsibilities.
The Three Function Divisions Responsibilities1. Consumer Welfare Division
(CWD) Provides ample protection to the consuming public
through a massive tri-media consumer education andinformation dissemination program
Releases information materials such as ConsumerAlerts, consumer Tips flyers, calendars, films and
press release. Promotes consumer awareness on basic issues and
concerns Provides mechanism for the speedy resolution of
consumer complaints Prepares guidelines in the development and
strengthening of consumer organizations
2. Fair Trade Division (FTD) Oversees the effective implementation of Fair Tradelaws
Provides field offices with operating guidelines onthe implementation of laws on trade malpractices
Trains fields staff on enforcement of fair trade laws Formulates programs and policies on Fair Trade
Laws and other related provisions Monitors Congress bills and resolutions which
directly affect the consumers
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Conducts regional consultancy on enforcement Prepares position papers on domestic and fair trade
related bills and resolutions
3. Business Regulation Division
(BRD)
Oversees effective implementation of Trade
Regulation Laws Provides standards and systems in issuance oflicenses and permits for realty service practice, fireextinguishers, bonded warehouse, and retail tradenationalization
Oversees compliance of business name registration Develops modules on skills training of technicians Professionalizes the realty service practice by
administering examinations
II. Competitors Analysis
The mobile phone industry has four key competitors, namely:
Motorola, Nokia, Samsung and Sony Ericsson
The following tables show the competitive positioning and market
shares of each brand in the mobile phone industry.
A. Competitive Positioning
B. Market Shares
COMPETITIVE POSITIONINGBrand Competitive Position
Motorola Market Challenger Nokia Market Leader
Samsung Market FollowerSony Ericsson Market Nicher
Others Market Followers
MARKET SHARESBrand Market Share
Connecting People 59%
Hello Moto16%
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Source: Philips Company Data
11%
Never A Dull Moment5%
Broaden Your Life Fraction of the remaining 9%
Invented For LifeFraction of the remaining 9%
Life s Good Fraction of the remaining 9%
Ideas For LifeFraction of the remaining 9%
Sense and Simplicity Fraction of the remaining 9%
Designed For Life Fraction of the remaining 9%Total Market Share 100%
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MOBILE PHONE PLAYERS
BrandMarketShare Sales Level Competitive Position Target Market Relevant Products
Connecting People59% 6,357.25 Market Leader
13-55 years old Mass Market Average Market High-end Market All kinds of users - the young, the young-
at-heart, the gadget-savvy, the music
lover, the photo bug,
Mobile phones Smartphones
Hello Moto16% 1,724.0624 Market Challenger
13-55years old Mass Market Average Market High-end Market
Mobile phones
11% 1,185.2929 Market Nicher
15-55 years old Mass Market Average Market High-end Market
Mobile phones
Never A Dull Moment5% 538.7695 Market Follower
15-55 years old Average Market & High-end Market Working Class
Mobile phones
Broaden Your Life
Fraction oftheremaining
9%
Fraction of969.7851 Market Follower
15-25 years old Mass Market Average Market People looking for a cheap phone that
will suffice their call and text needs
Mobile phones
Invent
N/A N/A Market Nicher
20-55 years old Caters to classes A and B High-end Market People in the working class who usually
need an all-in-one phone with featureslike: email, messaging, and web access
White collar workers
Smartphones
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C . Marketing Strategies
MARKETING STRATEGIES (4Ps)Brand Product Price Place Promo Marketing Strategy
Connecting People
3G Technology Bluetooth WirelessTechnology
FM Radio Infrared
Mp3 Player Multimedia MessagingService
Polyphonic Ringtones VGA Camera Video Recording
Php2,500-45,000 Mass Market Average Market High-end Market
Mobile Phone Store (i.e.Semicon)
Retail Store (i.e.Greenhills)
Store of Operators (i.e.Globe, Smart, Sun)
Aggressive withtie-ups Billboards Concentrates on billboard, TV,
magazine andnewspaperadvertising Event Sponsorships Flyers Internet
Caters to all types ofusers on allcategories
Protects market share by offering the mostnumber ofdifferentiated phonesthat cater to eachindividual needs
Made tie-ups withoperators, Globe andSmart, early on
Hello Moto
3G Technology Bluetooth WirelessTechnology
iTunes Mp3 Player Multimedia MessagingService
Polyphonic Ringtones
VGA camera Video Capture MPEG4
Php3,999-26,990 Mass Market Average Market High-end Market
Mobile Phone Store (i.e.Semicon)
Retail Store (i.e.Greenhills)
Store of Operators (i.e.Globe, Smart, Sun)
Aggressive withtie-ups
Billboards Concentrates on billboard, TV,magazine andnewspaperadvertising
Event Sponsorships Flyers Internet
Focus on trendydesign with value-added features
Targeted to relevant people in society/aspiring socialites
3G Technology Bluetooth Wireless
Technology FM Radio Infrared Mp3 Player Multimedia Messaging
Service Polyphonic Ringtones
Php3,500-35,000 Mass Market Average Market High-end Market
Mobile Phone Store (i.e.Semicon)
Retail Store (i.e.Greenhills)
Store of Operators (i.e.Globe, Smart, Sun)
Aggressive withtie-ups
Billboards Concentrates on billboard, TV,magazine andnewspaperadvertising
Event
Aggressive on twofronts: walkmanand PDA phone
Sony WalkmanBrand recognitionas one of the bettermusic providers
P900 series rivals Nokia and other
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VGA Camera Video Recording
Sponsorships Flyers Internet
PDA brands as the best in its category
Never A Dull Moment
Bluetooth WirelessTechnology
FM Radio Infrared Mp3 Player Multimedia Messaging
Service Polyphonic Ringtones VGA Camera Video Recording
Php 7,500-35,000 Average Market
High-end Market
Mobile Phone Store (i.e.Semicon)
Retail Store (i.e.Greenhills)
Store of Operators (i.e.Globe, Smart, Sun)
Aggressive withtie-ups Billboards Concentrates on billboard, TV,magazine and
newspaperadvertising Event Sponsorships Flyers Internet
Brand uniquenesssince they are mostknown for their flip
phones Phones are classy andtargeted to thesophisticated workingclass. Power-packedfeatures relevant tothe corporate market
Broaden Your Life
4K color screen 65K color screen 262K color screen Color film display FM Radio Image download Megapixel Mp3 melodies VGA camera
Php2,750 15,000 Mass Market Average Market
Mobile Phone Store (i.e.Semicon)
Retail Store (i.e.Greenhills)
Store of Operators (i.e.Globe, Smart, Sun)
Flyers Internet Focus on low priceand design
Invent
Compact Mobile Phonewith email, an organiser,messaging, and webaccess Crystal-clear VGA andTFT screens Digital entertainment Lightweight, sleekdesigns Wireless productivity
Php 25,000 -40,000
High-end Market
Mobile Phone Store (i.e.Semicon)
Retail Store (i.e.Greenhills)
Flyers Internet Magazine Ads
Association withtechnology
Capitalize on brandname
Focus on productfeatures
Bluetooth Technology Compact Mobile Phone
Php36,000-48,000 High-end Market
Mobile Phone Store (i.e.Semicon)
Flyers Internet
Technology-driven Mobile-PC features
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Source: Semicon
Its your O2. See whatyou can do.
with email, anorganiser, messaging,and web access
Digital Camera Mp3 Player Video
Retail Store (i.e.Greenhills)
Magazine Ads
Bluetooth Technology Compact Mobile Phone
with email, an
organiser, messaging,and web access
Digital Camera Mp3 Player Video
Php20,000-35,000 Average Market High-end Market
Mobile Phone Store (i.e.Semicon)
Retail Store (i.e.Greenhills)
Store of Operators (i.e.Globe, Smart, Sun)
Flyers Internet Magazine Ads
Leverage on Brandassociation
Palm = reliable PDA Incorporated PDAfeatures into a mobile
phone Mobile phone =mobile computer aswell
Designed For Life
Infrared Mp3Player Multimedia Messaging
Service VGA Camera Video Recording
Php3,000-13,000 Mass Market Average Market
Mobile Phone Store (i.e.Semicon)
Retail Store (i.e.Greenhills)
Store of Operators (i.e.Globe, Smart, Sun)
Flyers Internet Magazine Ads
Low priced, goodquality phone
Relevant features
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DISCUSS
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DISCUSS
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Unit
Motorola RAZR V3i
Motorola RAZR V3x
Sony Ericsson K800i
Samsung D500
Call/SMScapability
SMS, MMS, EMS SMS, EMS, MMS SMS, MMS, e-mail SMS, MMS
3G Functionality No Yes Yes No
Battery Life
Standby Time: up toapproximately 200-310hours; Talktime: up toapproximately 200-400minutes
Talktime: up to 131minutes; Standby Time: upto 227 hours; Video talktime: up to 99 min
Standby time: 350 hours;talk time: 7 hours
Standby time: 300 hours;talk-time: 390 mins
Memory12MB (internal); 512MB(removable)
64MB embedded, 512MBadditional
64MB internal memory 96MB internal memory
LCD Resolution
262k TFT internal / 65kCSTN external
Large 240 x 320 TFT colourmain display; 2.2 inchexternal screen, 65K colorscreen
262,144-colour TFT,240x320 pixel
262,144-Colour TFT-LCDdisplay
Multimedia1.23 megapixel camera with8X zoom; video capture inMPEG format
Integrated digital camera(VGA) for 2-way videocalling; video capture
3.2MP camera, 16x digitalzoom
1.3-megapixel camera
ConnectivityBluetooth, GPRS Bluetooth, GPRS, Mini
USBBluetooth, GPRS, infrared,USB
Bluetooth, USB
Organizer Datebook with independent Datebook with independent Yes None
http://void%28launchwindow%28%27itemenlarge.asp/?ModelID=542%27,%27height=385,width=200%27))http://void%28launchwindow%28%27itemenlarge.asp/?ModelID=496%27,%27height=385,width=200%27))8/12/2019 Day9.Philips.sample Pass 1
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alarm alarm
Music None Support of AAC+, MPEG4,
WMV, WMA, MP3 andReal Video/Audio files
MP3, AAC MP3, MP4 and AAC player
GamesPre-loaded; downloads alsoavailable
None 3D games Java-enabled games
Price Php15,990 Php16,990 Php23,000 Php22,900*All specifications taken from company websites, Semicon.net, ZDNet, CNET.com, and Mobile-Review.com.
The Motorola RAZR V3i, when compared to the Philips Xenium 9@9d...
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The Motorola RAZR V3x is the com panys first 2 megapixel camera phone
The Sony Ericsson K800i is the first of the Sony Ericsson mobile phones to carry the
name of Sonys remarkable Cyber -shot digital camera series .
The Samsung D500 is uniquely designe its form factor is what gives it an edge
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Unit
Samsung E800Alcatel OT-S853 HP Ipac Hw6515A
Pocket Pc O2 XDA II mini
Call/SMScapability
SMS, MMS, EMS Yes Yes SMS, MMS
3G Functionality No No No No
Battery LifeStandby time: 5 days; talktime: 2.5 hours
Standby time: 330 hours;talk time: 8 hours
Removable/rechargeable1200 mAh battery
Standby time: 180 hours;talk-time: 4-5 hours
Memory24MB 10 MB shared memory 64MB SDRAM, 64MB
Flash ROM64MB ROM, 64MB RAM
LCD Resolution
1.72 128X160 pixels 65536colours TFT LCD displayscreen
256K colors; 176 x 220 pixels
3.0" Transflective TFTcolor with LED backlight
2.8" Transflective TFTLCD display, 64K colourtouch screen with 240 x
320 dots resolutionMultimedia
VGA camera with flash (and15-multishot ability alongwith 4x zoom)
Video: MP4; Images:WBMP, PNG, JPG, GIF,GMP, aGIF; 1.3 MP camera
1.3 MP camera that saves pictures in JPEG format;voice-recording capability
1.3 mega-pixel camera
Connectivity
GPRS, infrared Proprietary USB port, PCSoftware Suite, IrDA Port,Bluetooth, WAP, GPRS
Integrated GPS antenna,GSM International quad-
band phone, Bluetooth,IrDA and USB
GPRS, Bluetooth, infraredUSB
OrganizerTo-do list To Do list, Scheduler,
Multi-field directory,Graphical agenda, Email
Powered by MicrosoftWindows Mobile 2003Second Edition - Phone
Microsoft WindowsMobile 2003 standardapplications
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client (optional), Directaccess keys to directorynumbers
Edition
Music
None Sound: SP-MIDI, SMAF,PCM, MP3, MIDI, i-Melody, AMRnb, AMR,ADPCM, AAC, FM radio
Windows Media Player 10(MP3, audio and videostreaming)
Windows Media Player
Games Downloadable Java MIDP 2.0 games Solitaire, Jawbreaker Jawbreaker, Solitaire
Price Php19,000 Php14,200 Php30,000 Php36,000*All specifications taken from company websites, Semicon.net, ZDNet, CNET.com, and Mobile-Review.com.
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DISCUSS
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Unit
Palm Treo 650Smartphone
Siemens C75 Siemens SL65
Call/SMS
capability
"See an entire conversation
in a chat-style thread."
SMS, EMS, MMS,Email, Instant
Messaging
SMS, MMS, Email,
Instant Messaging3G Functionality No No No
Battery LifeGSM/GPRS model: Up to6 hours talk time and up to300 hours standby time
Standby time: 300 hours;talk time: 5:30 hours
Standby time: 230 hours;talk time: 4 hours
Memory22MB user-availablestored non-volatilememory
10 MB shared memory 11MB shared memory
LCD ResolutionColour TFT touch-screen,320 x 320 resolution, 16-
bit colour
TFT, 65K colors 65.536 color TFTdisplay
MultimediaVGA with 640x480 (0.3megapixels) resolution andautomatic light balancing
VGA, 640x480 pixels,video camera
VGA camera with 5xzoom
Connectivity Bluetooth GPRS, Infrared, USB Infrared, USB
OrganizerCalendar, Contacts, Tasks,Memos
Yes To-do list
MusicRealPlayer included requires SD memory card,sold separately
None None
Games Downloadable None NonePrice Php36,400 Php7,990 Php9,990
*All specifications taken from company websites, Semicon.net, ZDNet, CNET.com, and Mobile-Review.com.
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B. Strengths and Weaknesses Analysis of Competitors (4Ps)
STRENGTHS & WEAKNESSES AnalysisCOMPETITOR STRENGTHS WEAKNESSES
Alcatel has been a key player in
the mobile phone market since1998, thanks to its well-implemented strategy in the fast-developing consumer segment.(Source: Semicon website)
Provides mobile phones at arelatively low price but still takinginto consideration good enoughdesign
Though it has been around for
quite some time, Alcatel neverreally surpassed the othercompetitors
Promotions are not given muchfocus
HP has built a name for itself overthe years, in such a way, that
when one hears the two letters HP,computers, laptops and technologycomes to mind
Expensive price Not yet built a name for itself in
terms of their smartphones Only found in some stores
Motorola is the #2 manufacturerof wireless handsets after globalleader Nokia (Source:Euromonitor)
It is also a leading supplier of suchwireless infrastructure equipmentas cellular transmission basestations, amplifiers, and servers(Source: Euromonitor)
Known for its slim phones, mostespecially the Moto Razr (Motosmost successful phone to date, theRAZR has reportedly sold over 50million units since it debuted inthe market 18 months ago. Philippine Daily Inquirer,Lifestyle, Ringin in the style byAlex Vergara, Aug.11, 2006)
Incomplete features
Nokia is the world's #1 maker ofcell phones (Source: Euromonitor)
It commands nearly 40% of theglobal cell phone market (Source:Euromonitor)
Caters to all types of users on allcategories
Well-distributed since it is
Since most people buy Nokia phones in the Philippines, it cannot be avoided that its parts havenow been prone to piracy
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available anywhere andeverywhere
Has a lot of variety Known for its user -friendly
quality
With its windows compatibility,O2 makes for a better smartphonethan most
Expensive price Only found in some stores Does not focus much on promo
Established a good and trustedname for itself in the PDA market(ie Palm Treo)
Expensive price
Samsung is the world's top makerof dynamic random-accessmemory (DRAM) and othermemory chips, as well as a globalheavyweight in all sorts ofelectronic gear including LCD
panels, DVD players, and cellular phones (Source: Euromonitor)
Known to have the best LCD
Has yet to really challenge themarket leader
No 3G Technology yet
Siemens is one of the worldslargest public corporations, withover 900,000 shareholders.(Source: Siemens site)
Provides inexpensive phones
Though it has been around forquite some time, like Alcatel, itnever really surpassed the othercompetitors
Promotions are not given muchfocus
Sony Ericsson is considered a topseller of cell phones (Source:Euromonitor)
Known for its walkman music phones since they integrated sonytechnology with their cybershotcameras
Known to have the best camera phones
Has yet to really challenge themarket leader
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C . Attack and Avoid Matrix
ATTACK OR AVOID
COMPETITOR Year 1 Year 2 Year 3 REASONS
0.10376% 0.0889% AVOID
- Alcatel, like Philips, has asmall market share that wewould like to exploit
- They seem to be contentedwith their current positionand do not do a lot to gainmore market shares
AVOID AVOID AVOID
HP is an indirectcompetitor
Their product is not quitesimilar to ours since itcombines the functionalityof a mobile phone and aPDA
AVOID 0.2668% 0.5833%
- Since Motorola is a marketchallenger, we are notgoing to attack them inyear 1 first. We are
planning to attack them in
year 2 and 3 instead.
AVOID AVOID AVOID
- Nokia is the market leader- Their market share is too
large for us to penetrate
AVOID AVOID AVOID
- O2 is an indirectcompetitor
- Their product is not quitesimilar to ours since itcombines the functionality
of a mobile phone and aPDA
AVOID AVOID AVOID
- Palm is an indirectcompetitor
- Their product is not quitesimilar to ours since itcombines the
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functionality of a mobile phone and a PDA
0.2594% AVOID AVOID
- We, more or less, have thesame target market
- Since Samsung only has amarket share of 5% (2005) based on the PhilipsCompany Data, we are justgoing to attack 2% of their5%
0.02594% 0.0889% AVOID
- Siemens, like Philips, has asmall market share that wewould like to exploit
- They seem to be contented
with their current positionand do not do a lot to gainmore market shares
0.1297% 0.1779% 0.4167%
- Since Sony Ericsson has amarket share of 11%(2005), based on thePhilips Company Data, wewill be attacking themlittle by little
POSITIONMARKETFOLLOWER MARKETFOLLOWER MARKETFOLLOWER
TOTAL MARKETSHARES ACQUIRED 0.5188% 0.6225% 1%
- The total market sharesacquired is increasing peryear and this is because,throughout the span of threeyears, we are planning tomake a name for Philips inthe mobile phone industrythrough above-the-lineadvertising which would
help people learn moreabout our phones and whatwe have to offer
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III. Opportunity Analysis
A. Idea Generation
There has been an increase in cellphone subscription over these past years
B. Identification of Opportunity
Opportunities and Threats
OPPORTUNITIES THREATS Less operator-controlled Nokia parts made readily available Shift from subscriber to replacement
market
Initial tie-up of Nokia with service providers
Shift from subscriber to replacementmarket
Mobile phone industry has reached
maturity stage
L esser Operator-Control led (Opportu ni ty)
According to Angelo Valenton, general manager of Philips
Consumer Electronics, the mobile phone industry today has less operator-
control
Noki a Parts made readil y avail able (Opportun ity)
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D. Key Success Factors
I nn ovative Techn ology Philips ultra -long battery life.Nationwide Di stri bution Should capture market outside Luzon.
Variety of M obile Phonemodels Catering to the peoples lifestyles.
Brand Buil ding throughAdverti sin g Str ategies
Philips establishing a name for itself in the mobile industry.
I nn ovative Techn ology
DISCUSS
Nationwide Di stri bution
DISCUSS
Variety of M obile Phone Models
DISCUSS
Br and Bu il ding thr ough Adverti sin g Strategies
DISCUSS
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IV. Target Market Selection
A. Identification of Target Market
1. Consumer Profile
The target market, chosen by the group consists of
Psychographics
We chose the age range of 20-34 since most
Based on our survey
Behavioral
1. Age 20-24, 25-29, 30-342. Gender Male and Female3. Civil Status Single, Married, Divorced, Separated, Widowed4. Income B, C5. Education College, Masteral, Doctoral, PhD,
6. Profession Young Professionals7. Locationa) Density Urban Areas
b) Geographic NCR, Major Cities8. Family Size N/A9. Religion N/A10. Nationality N/A
1. Social Class Class B and C2. Lifestyle Busy Lifestyle3. Personality Concerned with Social Status
1. Purchase Frequency Occasional2. User Status Regular Cellphone Users3. User Rate Medium to Heavy Users
4. Loyalty Status Medium5. Readiness to Buy Unaware
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Demographics
Source: Group Survey
QUALITIES THEY LOOK FOR IN A PHONE, Ranked from most significant to leastsignificance
Ranking Qualities they look for in a phone RATING1 Trusted brand 2.53312 Good price 2.66993 Ease of use 3.07824 Style/Design/Look 3.12395 Internal/Technical Features 3.33136 After sale support 5.3117
Source: Group Survey
0
10
20
30
40
50
60
Twice A Year Yearly Every TwoYears
As Needed Others
R e s p o n
d e n
t s
How Often Respondents Change Phones
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Source: Group Survey
Geographic
Source: National statistical offices/UN/Euromonitor International
B. Analysis and Rationale for choice
1. Identified Market Segments
42%
34%
14%10%
IMPACT OF BRAND NAME ON CHOICE
Moderate impact (39)
High impact (31)
No effect (13)
Just a bit (9)
42000
44000
46000
48000
50000
52000
54000
56000
2001 2002 2003 2004 2005 2006
P o p u
l a t i o n
i n T h o u
s a n
d s
Year
Urban Population in the Philippines
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Mobile phone buyers in the Philippines are divided into consumer segments. Each segment is
characteri zed by the consumers preference in terms of phone features and how they choose the products
based on their personalities
IDENTIFIED CONSUMER SEGMENTSSEGMENT PHONES TARGETING THE SEGMENT
Innovators Latest technology
Plugged-ins Making a fashion statement
SelectivesConcern for multifunctionality
EmpathizersAspire new features
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Basics Main concern is call and textUninvolved buyers No concern in a particular feature
2. Market Needs Being Addressed
WHAT QUALITIES DO YOU LOOK FOR THE MOST IN BUYING A MOBILE PHONE?
Ranking Qualities they look for in a phone RATING1 Trusted brand 2.53312 Good price 2.66993 Ease of use 3.07824 Style/Design/Look 3.12395 Internal/Technical Features 3.33136 After sale support 5.3117
Source: Group Survey
WHICH FEATURES DO YOU CONSIDER MOST IMPORTANT?
RANK FEATURE RATING1 Call and text function 1.50592 3G Function 2.83 Battery Life 2.82794 Memory 3.07475 LCD Resolution 3.17126 Camera and Video Recording 3.27807 Bluetooth/Infrared/GPRS 3.67938 Organizer 3.76459 MP3 3.7778
10 Games 4.5
Source: Group Survey
WHAT WOULD ENCOURAGE YOU TO SWITCH FROM ONE MOBILE PHONE BRAND TOANOTHER?
Ranking Quality of the other prospective phone replacement Overall Average
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Source: Group Survey
3. Buying Patterns
Based on the survey findings
Income does not affect the buyers budget for a mobile phone
Source: Group Survey
551
248
63
21
0 20 40 60
5000 below5001-15000
15001-2500025001-3500035001-4500045001-5500055001-6500065001-7500075001-8500085001-95000
95001-100000100001 above
Number of Respondents
I n c o m e
i n P e s o s
INCOME DISTRIBUTION
5000 below
5001-15000
15001-25000
25001-3500035001-45000
45001-55000
55001-65000
65001-75000
75001-85000
85001-95000
95001-100000
100001 above
1 More updated features 1.69352 Longer talk time and battery life 1.98333 A phone with the same features, but cheaper one 2.0896
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Source: Group Survey
Source: Group Survey
Aside from brand name, Filipinos also prefer brand new units when buying a phone
1030
2916
92
4
0 10 20 30 40
5,000 below5,001-10,000
10,001-15,00015,001-20,00020,001-25,00025,001-30,000
30,001 and above
Number of respondents
B u d g e
t r a n g e
BUDGET FOR A NEW PHONE
42%
34%
14%10%
IMPACT OF BRAND NAME ON CHOICE
Moderate impact 39%
High impact 31%
No effect 13%
Just a bit 9%
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Source: Group Survey
Source: Group Survey
4. Usage Habits
More people use Nokia as a primary phone than any other brand in the market
80%
18%
2%
CHOICE WHEN BUYING A PHONE
Brand new 80%
Second Hand 18%
Reconditioned 2%
41%
26%
18%
15%
PLACE WHERE THEY BUY A MOBILE PHONE
Flea market or tiangge 41%
Authorized seller 26%
From an operator 18%
From a friend 15%
59
1610
6 51 1 1
0
10
20
30
40
50
60
N u m
b e r o f u n i
t s p e r
b r a n
d
NUMBER OF PRIMARY PHONES PER BRAND
Nokia 59%
Sony Ericsson 16%
Samsung 10%
O2 6%
Motorola 5%
Alcatel 1%
Philips 1%
Siemens 1%
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Source: Group Survey
Source: Group Survey
REFERENCES
64%
22%
12%
2%
FREQUENCY OF CHANGING MOBILE PHONES
As needed 65%
Every two years22%
Yearly 11%
Twice a year 2%
3
4
8
15
23
32
0 10 20 30 40
Number of respondents
REASON FOR CHANGING MOBILE PHONES
Phone got damaged or broken 32%
I wanted to upgrade thefeatures of my phone 23%
My old phone got lost15%
I just wanted a new phone8%
Desire for a new design4%
Others 3%
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