The Marketing Plan

Executive Overview

With many operators facing stagnating or declining voice revenues, data services adoption and

revenues have moved centre stage in communication service provider strategies. Success here

has seen incredible growth in data traffic, something that is set to accelerate according to most

analysts. Growth is being driven by multiple factors, not least of which is the convergence of

services, devices, and technologies. Equally operators have facilitated this growth by upgrading

their networks, subsidizing more powerful devices and attractively pricing data plans.

The simplicity and attractive price point of flat-rated data plans has encouraged mass adoption of

high speed internet connections. Low network access prices for end-users are essential to the

business models of content providers as well as the device manufacturers on whose devices the

content is provided. But what is becoming apparent is that flat rate or ‘unlimited’ data packages

are unsustainable. The cost of serving these data hungry customers and the money earned have

started to diverge – for many operators the cost of meeting the data needs has become too high.

Operators are now faced with several strategic questions. Not the least of which include how to

profit from data growth, how best to manage finite network resources, and how to be central to

the customer experience.

The good news is that we as a Mobile operator can systematize the instinctive capabilities of our

network and Billing system, to create value by introducing new services and data plans using

Policy Management. Policy Management allows us to flexibly configure and re-imagine their

services, by enabling them to fine-tune and segment their offerings around: Data Volumes;

Time-of-day conditions; Application type; URL/Domain, Protocol; Location; Content categories

etc.

So our marketing plan is to introduce Ncell user with Variety of Data Package which they can

subscribe on their requirement basis. This will help us to provide our customer with multiple

choices in value added Mobile data service and good customer experience. As our initial

marketing map we have planned to introduce two different products for two different target

markets.

1. Smart Internet: this is targeted to students, youths, and house wife’s and business women

for age of 13 to 50.

2. Corporate Internet Ncell: targeted for Business oriented market and corporate houses.

These two products are internet service scheme which Ncell subscribe can activate from there

handset or Ncell Data card. This scheme will allow them to use internet and browsing as per

there requirement but pay smartly for the service. And as an operator it will allow us to

efficiently manage our internet pipe to generate revenue without investing more on internet

backhaul bandwidth.

Market Review

Trends overview:

Changing Mobile Internet Landscape

Applications, Services, Handsets and the Business Models around Mobile Internet are

evolving at extremely fast pace .As per the research done by Cisco for trend analysis of

mobile data traffic, we can see below that by 2015 , demand for Mobile data traffic will reach

0.6 million Terabyte per month, Which is Hugh enough to kill any Mobile data operator’s

network.

Contributor to the growth of such a huge amount of mobile internet traffic are Classified as

below, out of which mobile video would be 66.5 % of total data traffic by 2015.

These Enhanced Services such as Video, P2P file sharing, Gaming are growing exponentially in

the internet world. On the other hand Penetration of Smart phones is increasing, contributing to

the data growth. Smart phones are less than 10 % of all handsets, but generate over 50% of

global mobile data traffic as shown below. Introduction of more and more smart phones in the

market, changing trends of using internet data, introduction of USB dongles are the main

contributor to amplify the demand of more and more internet bandwidth.

Study of our data trend also shows that, Data volume requirement is very high whereas increase

in revenue as compared to the increase in data usage is very low.So we have focused this

marketing scheme to increase our revenue as compared to data usage.

Market segments

In order to increase revenue base with current capacity, after investing lot of time and resources

in market research, we have segmented Mobile data user market into two segments. One is

corporate users; whose internet using behavior is more of constant type and this segment is not

too much sensitive towards price where as highly sensitive towards quality, brand and service.

On the other hand our big chunk of the market is next segment which covers more than 70% of

our subscriber base, it is prepaid subscriber base. This market segment poses impulsive internet

using behavior. This segment is highly price sensitive. Since prepaid segment is the biggest

source for us to generate revenue in terms of Quantity we have designed our product based on

specific requirement of both the segment.

Target market

Our marketing scheme Target these two market segment to generate revenue and enhance good

customer experience. Our Primary Market Segment is prepaid users as mentioned earlier it

covers more than 70% of our subscriber base in terms of internet usage and revenue. We have

designed scheme for this target customer named as Smart Internet: this is targeted to students,

youths, and house wife’s and business women for age of 13 to 50. This target market is price

sensitive where they use social networking sites, mailing sites, video streaming, online gaming

and various chatting sites. So in this product of ours “Smart Internet” we are going to bundle

these sites in one. so subscribe can buy this bundle named “smart internet”, which consists of

their five favorite sites with Wikipedia free for students except streaming traffic and they can pay

certain amount at the beginning of the month and use unlimited service for one month’s but only

for their favorite web site. But if they use other website besides selected one they should pay as

per our normal data plan. This will increases internet using behaviors and provide flexible and

manageable options for mobile internet users.

Our secondary target market would be corporate subscribers, whose choice for internet consists

of multiple corporate emails, push mails, news sites; stock updates, downloads of attachments,

application download and sports sites including social networking sites. These subscribers are

highly sensitive towards quality, brand and service and they are our reference group for brand

promotion. So we have created Corporate Internet bundle for this segment targeting corporate

subscribers. So our product consists of bundle of one corporate email, two business sites, 2 sports

site, social networking site and on top of that complementary stock update daily. This bundle is

also same as pay per site as described for primary target market. So when corporate subscriber

purchases this bundle they will pay certain amount at the beginning of the months and use

unlimited service included in bundle for one year. But for other web sites which are not included

in the bundle they will pay as per the normal tariff plan.

Competitive Review

With this marketing scheme we have analyzed that we can change the trend of charging

flat rate data plan. Competitive edge of this scheme is, it will definitely help us to

generate revenue with the existing data pipe which reduces the cost of data backhaul by

increasing the revenue.

Product and Business Review

Customer buying trends are driving the increased importance of bundled and packaged

service offerings. End users are attracted to bundles because of the price, convenience

and peace of mind they offer. From an operator’s perspective, they make for both a high

value offer and a driver of revenue. Of particular interest to pre-paid subscribers, are

occasions when they want to enjoy equivalent advantages to a post-paid subscriber, but

without changing their payment plan. Allowing customers to bolt-on packages, can

provide an additional source of income, and enable a subscriber to gain access to services

at a more favorable rate. Combining the attractiveness of lower prices, with prepaid cost

control, bolt-on packages offer subscribers new value and operators’ incremental

revenue.

1. Strength: We as an operator already have strong technical infrastructure, Strong marketing

team to implement the plan and an expert marketing communication and customer care team

to handle presales and after sales issue. Objective of this product and marketing strategy is to

be innovative and pioneer in the mobile internet service so that we can gain competitive edge

over our competitors in this field. This scheme is easy to implement in our system without

hassle and complex legal formality saving both CAPEX and OPEX for implementation of

new system. We can accommodate this plan within marketing budget since we will be

targeting this scheme to our existing customer to encourage them to use most of our data

service. So marketing communication within Ncell users will be cost effective and we have

planned to attract new subscriber to Ncell through this scheme.

2. Weaknesses: If we have to highlight our weakness, we are new with this scheme and no one

has experience about this product and its marketing response. So we have gaps yet to be

identified. We do not have expert technical team who can handle technical complexity if

arises after launch of the product.

3. Opportunities:

Cost reduction

a. 40% savings on Internet Backhaul

b. 20% savings on RAN/Spectrum

c. 30% optimization of image/text contents

Revenue

a. 40% Increase in the Volume

b. 50% increase in the Hits

c. 20% increase in (ARPU) Average revenue per unit.

Control/ Management

a. Effective Bandwidth Management

b. Manage Quality Of Experience and customer experience

c. Customer satisfaction due to flexibility of choices for the data service

4. Threats: Nepali internet market is price sensitive market; if same produce or scheme is

launched by competitor then we will have hard time competing with them in price. We can

only compete with them in technology and quality not in price. There is always tradeoff

between price and quality and our objective is to provide valued quality. If government body

imposes restriction in such scheme as there are no rules regarding data sells restriction for

Data segration service yet, there will be threat of failing of this plan. Since technology is

changing every day, if we delay in launching this concept, there is threat of difficulty in

coping with new technology. And the as always Market is unpredictable and there is risk of

our product getting unpopular.

5. Goals and Objectives

The main goal of this scheme is to encourage Nepali market to use mobile data at affordable

and valued price. As besides young generation, having so much potential of mobile data

market, it is not prominent as such because Nepali people are unaware of its uses and

benefits. So our goal is to sell data scheme to as much as subscribers as possible and main

objective of doing this is increase revenue by optimizing existing resources and cut down the

burden of paying hug amount to internet backhaul provider as per the increase in demand of

internet bandwidth.

Sales objectives

Sales objective in this case would be to increase sales volume of existing internet resource, by

implementation of this smart and corporate scheme. It will definitely help to increase revenue as

it encourage subscriber to use mobile internet. This will also provide our sales additional tool to

sell Ncell services to new subscribers. Value added services are always of choice by subscribers

besides voice and SMS.

Marketing objectives

Marketing objective is to complement sales objective finally but besides that this scheme will

provide marketing to segment the mobile internet market so that we can launch scheme based on

market segmentation. Even thought corporate market is small in Nepal but it is a niche market

which can never be neglected so marketing objective in this case would be to find out what is the

volume of this niche market and its subscribers. Marketing will use opportunity for Brand

visibility, and convince customer that we have high tech solution to adopt their changing

requirement.

Strategies

Our Strategy is to manipulate Marketing Mix in such a way that we can get best marketing tool

for our product. We have defined each parameter as below.

Positioning: By using this tool we will try to create an image or identity in the minds of our

target market as defined for our product, brand, or organization as a whole.

1. Functional positions

o Our Product will solve the problems of our customer who are paying flat rate for

internet usage. Our product will provide them opportunity to choose their favorite

web site bundle and pay less. From marketing point of view we are creating

Width of our product line which will provide options to our customers.

o This will provide benefits to customers by giving matched value for their cost.

2. Symbolic positions

o We will be successful in Self-image enhancement by providing innovative and

high quality services at affordable price. We will use our corporate customers as a

reference group and use them as pilot customers for our corporate product to get

brand visibility.

o Ego identification

o As we are providing free Wikipedia browsing for students and free stock update

to our corporate clients we will be creating Belongingness and social

meaningfulness to our customer about our product and services and company as a

whole. This will provide our target market with Affective fulfillment for their

requirement.

3. Experiential positions

o Since our product is new in market, we will present this product to our subscribers

by publishing it in our official web site with the video of how to activate and use

the service. We will publish this information in our official face book and Blogs

and twitter as well as website by Provide sensory stimulation and cognitive

stimulation to our subscriber. this will create a urgency among our subscriber to

know and use our products.

Product

Our marketing plan is to introduce Ncell user with Variety of Data Package which they can

subscribe on their requirement basis. This will help us to provide our customer with multiple

choices in value added Mobile data service and good customer experience. As our initial

marketing map we have planned to introduce two different products for two different target

markets.

1. Smart Internet: this is targeted to students, youths, and house wife’s and business women

for age of 13 to 50.

2. Corporate Internet Ncell: targeted for Business oriented market and corporate houses.

These two products are internet service scheme which Ncell subscribe can activate from there

handset or Ncell Data card. This scheme will allow them to use internet and browsing as per

there requirement but pay smartly for the service. And as an operator it will allow us to

efficiently manage our internet pipe to generate revenue without investing more on internet

backhaul bandwidth.

Pricing

1. Smart Internet: this is targeted to students, youths, and house wife’s and business women

for age of 13 to 50. This is price sensitive market but hug consumption capacity so we

have priced it as 499 per month which will give us better revenue even profit marginal

value is very less.

2. Corporate Internet Ncell: targeted for Business oriented market and corporate houses.

This is not a price sensitive market but with less consumption capacity and very high

quality sensitive so we have priced it as 699 per month which will give us better revenue

because profit margin value is high comparatively.

Distribution

Existing distribution channel for our SIM card and customer support will be

1. 8000 dealers all around Nepal

2. 500 Ncell sops

3. 100 Ncell centers

And subscribers will be able to activate service through SMS, USSD short code, IVR

“interactive voice message”, Call center and through our Ecare and subscriber’s portal at our

website.

Communications/Promotion

With pre-paid users perceived as being more value conscious, promotions play a vital role in

stimulating revenue. However, blanket promotions risk destroying value by needlessly

cutting prices or offering free services without sufficient operator reward. This is because

what constitutes values depends on the segment; to be successful promotions need to be

differentiated with relevant benefits. But with personal data either missing or incomplete, and

lower customer values making traditional marketing approaches expensive, these promotions

need to be carefully crafted to be profitable. This requires the use of multiple promotional

triggers, and the ability to run and manage multiple promotional offers in parallel.

Examples of effective recharge promotions include:

1. Recharge bonus - i.e. every time you recharge you’ll receive a credit

2. Encouraging multiple refills of an account during a defined period - e.g., recharge 4 times

this month and have weekend sms free

3. Varying recharge rates - to incentivize refills that use low cost channels (ATM, IVR, SSD

etc.), to reduce the cost of fulfillment

4. Persuading a subscriber to maintain a minimum balance level to enjoy lower rates - e.g.,

maintain a balance of more than $30 and enjoy reduced voice calls

5. Committing a customer to an automatic monthly recharge in exchange for a bundle of

services

6. Action Plan and Implementation

Media plan: As a marketing communication media we have decided to use Advertisement in

Newspaper as primary means of communication, Television as a media tool similarly we will be

using our internal media such as Sending SMS to all of our subscribers informing them about our

schemes. We will use Play cards which we will be distributing to college students and customers

in Ncell center and Ncell shop. We will place 10 big hoading Boards at main city of Nepal,

Kathmandu, Pokhara ,Nayarini , Bheri , Biratnagar and Janakpur.

Budget: The secret to creating a high-impact marketing plan is to optimize your limited budget.

A one-time radio ad blitz, glossy brochure, or flash-enabled website will quickly erode our

budget and upset our marketing plans. We will Use low-budget marketing to get our message out

to our customers on a regular basis, and watch sales revenue grow. We believe Expensive ad

exposure does not necessarily translate to increased sales. Every marketing dollar spent should

produce a good return in sales

Find The Right Target: A critical part of your marketing plan is targeting the right customer.

For a low-budget high-impact marketing plan to work, find customers who are easy to identify

and affordable to reach.

Forgetting the mass market and we are planning to go for small niche markets that will help us to

plan our budged properly.

Make Ourself News Worthy: A mention of our company in the right media can help deliver our

marketing message in a low cost manner resulting in plenty of media talk.

Maximize Referrals: The most cost-effective method of reaching new customers is by referrals

from satisfied customers. A satisfied customer telling others about our business is more effective

than any fancy ad campaign. We will Spend time to get customer referrals on a weekly basis.

These are just a few tactics and strategies we will be using to create a high-impact marketing

plan on a low-budget. Marketing success comes from creativity; not from having the biggest

budget.

We have allocated 20% of our total marketing budget for this camping which comes around 3

million for 3 years target. This is particularly for marketing communication because budgeting

for technical implementation and system up gradation will be included in budget of technical

team. So in our marketing plan we have included budget for marketing only.

Schedule:

We will be launching it on the occasion of Christmas and New Year 2012. We will start our

preparation earlier then that. We will be implementing our phase by phase Marketing plan as

shown in the Gantt chat.

Assignments:

7. Evaluation

Lead tracking systems

Sales reviews